This comment was made in a recent UK market survey referring to the increasing focus on Environmental, Social, and Governance (ESG). Not something you would normally expect to hear when discussing these three key non-financial factors of sustainability!

Many stakeholders now look at a wide range of components that encompass ESG when measuring the sustainability and ethical impact of an investment in a business or company, as there is a correlation between a well-managed, high-performing organisation and strong ESG rating.

Ethical investing has been available for a number of years, but more financial institutions are now focusing on ESG as part of a holistic assessment of an organisation’s risk profile. Those organisations with favourable ESG ratings increasingly are able to access green capital and sustainability-linked finance at attractive borrowing rates. With in-house finance teams wanting access to the cheapest forms of capital for their organisation, you can see why ESG is attracting their interest and driving a greater internal effort to achieve a strong rating.

Despite these advances, ESG is still a relatively new concept and will require more understanding and buy-in from employees. This will require ESG being embedded within the organisation—adopted by top management and supported by a strong company narrative.

Spoken Word Communications works with many organisations to craft narratives, key messages, and train executives on how to deliver powerful presentations in an engaging, confident and credible way.

If you are planning to implement or refresh your ESG plan and require support or training to develop and tell your story, contact us.