How to cut through mistrust of ESG communications

Storytelling around Environment, Social and Governance performance is a complex challenge. Greenwashing has bred mistrust among readers and consumers to such an extent that communication strategies face an uphill race from the starting line. 

Organanisations that inflate their green credentials add to an established systemic culture of mass deception and therefore those who are truly driving change struggle to get their stories to land.

“Unfortunately, consumers have been on the receiving end of eco-spin, where some brands have made inflated or downright false declarations about their eco credentials, the net effect of which has been to make consumers largely sceptical of all claims,” Steve Leigh, managing director of consultancy Sensu Insight, said.

Sensu’s recent greenwashing report also found that less than a quarter of consumers (23%) actually took ESG (environmental, social and governance) claims at face value.

The research showed that people were even less likely to believe claims made by brands in certain sectors such as airlines, car manufacturers and fashion brands.

A recent survey by market research firm Mintel also found that almost half of consumers – 47% – said they do not trust brands to be honest about their environmental impact.

So how can organisations and businesses cut through this mistrust through storytelling?

Dr Cynthia Chisom Umezulike, a lawyer with decades of expertise in the field of human rights, environment, sustainability and climate change, said the “only way for brands to restore trust” is through “total and honest transparency and accountability.”

“Brands need to own up and acknowledge that the way the industry operates is not sustainable and make credible, intentional and sustainable changes while having checks and balances to ensure those changes are systemic and revolutionary,” she said.

Mr Leigh added that brands could restore consumer faith by working hard to “make sure they are actually carrying out environmental work that produces tangible results to back up their claims” before pushing forward on communications.

“Communication with consumers must be consistent, and brands cannot expect immediate acceptance and praise for their work either,” he said.

“Sharing big wins with consumers is easy, but brands cannot run from difficult questions. Being open and honest about failures and listening to consumers can help ensure real progress is made on ESG initiatives.”

Vague buzzwords like “planet friendly” and “green” can also create sceptism, according to Matt Paver, chief operations officer at Carbon Responsible, a carbon accountancy firm.

“That old phrase ‘actions speak louder than words’ would be a huge understatement here,” he said.

Mr Paver said some companies also set unreachable targets as a way to comfort consumers in the short term and this had become “so rampant it verges on meaningless”. He cited Fifa’s pledge for the Qatar World Cup to be carbon neutral as an example.

“It’s easy to make headline-grabbing claims; it’s much harder to substantiate them,” he said. “Consumers are watching and learning.”

Meanwhile, Sam Smith, director of SmithPackagine, which provides sustainable packing to businesses and consumers, said organisations should invest in credible certifications and standards to validate their environmental claims and engage in third-party audits to ensure accountability. 

“Brands should as well provide clear and accessible information about their sustainability practices, goals, and progress,” he said. 

“Actively involving consumers in sustainability initiatives, such as through transparency reports, consumer feedback mechanisms, and collaboration on environmental projects, can help rebuild trust and foster a sense of shared responsibility.”

James Butcher, chief executive of sustainability consultancy Supply Pilot, said there is a lack of honest and open dialogue across whole supply chains, which further compounds the issue. 

“There is a need to admit where the challenges are but also to share the successes,” he said.

He referenced Sainsbury’s move to package minced beef into shrink-wrapped packs that faced a consumer backlash, with comments such as “vile” and “disgusting”, after the supermarket failed to communicate that they had made the change to reduce plastic use.

“Retailers, brands and their suppliers need to be more open about what they’re doing, but to put it into context,” he said, adding that they should “go beyond Twitter sound bites” and be “honest where it is imperfect”.