A marketing communication expert, Austin Ayaosi, has stressed the need for marketing communications managers to be conscious of conversations around Environment, Social and Governance (ESG), since they play crucial role in shaping today’s business world.
Austin, who is the Lead Analyst at BrandImpact Consulting, in a paper tagged, ‘Why Corporate Communications Managers Need To Measure ESG’, noted that in the past few years, issues around ESG have defined the business space, more than any other topic, in terms of conduct of businesses in the community in which they operate and the world at large.
He noted that ESG performance of an organisation plays a crucial role in enhancing the reputational standing of the organisation, investors’ confidence in the organisation, financial performance of the business, corporate culture, diversity and inclusiveness, employees engagement, regulatory compliance, as well as the ability to attract new investors.
Citing a 2019 McKinsey Report, Austin argued that an organisation must communicate its ESG initiatives to all stakeholders since a well-positioned ESG strategy, he argued, would go a long way in driving higher value-creation for such organisation.
He believed, therefore, that the task of telling the ESG story rests on the Corporate Communications or PR unit; since the department plays a significant role in shaping how stakeholders perceive the efforts and impact of an organisation in making the world a better place for people and society, without compromising the ability of future generations to meet their needs.
“The role encompasses communicating the ESG purpose of an organisation and aligning it with the corporate vision and values of the business, creating an authentic and compelling narrative of ESG milestones, getting chief executive officers and other key management officials to talk about the organisation’s ESG purpose, among others,” he stated.
Using BrandImpact Consulting, a PR measurement, evaluation and research firm, as an example, he stated that the research firm, in 2022, introduced a custom- metric that helps PR and corporate communications managers track, measure, evaluate, and benchmark the ESG performance of their organisations against industry peers.
He explained further that the introduction of the ESG custom-metric was premised on the need for PR and corporate communications managers to pay more attention to ESG and deliberately infuse its content into their communications strategies.
The communications expert described the Euromoney Best Bank in ESG award, won by First Bank, in July, this year, as highlighting the importance of a well-articulated ESG communication strategy.
Austin argued that though First Bank is not the only bank in Nigeria investing in green energy solutions, climate change mitigation initiatives, waste management, emission reduction and other sustainable projects within the ESG framework, but the corporate communications or PR unit of the bank was able to give a narrative of impact, which, at the end of the day, made a huge difference.
He added that between 2015 and 2022, BrandImpact Consulting was able to pioneer several custom metrics to help PR and CC Managers track, measure, and evaluate the cost-saving effectiveness of public relations and corporate communications, changes in corporate reputation and ESG performance.
The BrandImpact Lead Analyst believed measuring the ESG performance of an organisation from a PR standpoint provides actionable data and insights into ESG maturity of the organisation, and the overall impact of an organisation’s ESG performance on the business, employees, shareholders, investors, customers, business partners, industry regulators, and other stakeholders, which, on the long run, deliver enhanced value to both the organisation and its stakeholders.
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