ESG Reporting: New tools to earn the most important currency
More than ever before, both B2B and B2C purchases are being influenced by considerations of environmental and social impacts as well as your brand’s values and reputation. Regulatory developments globally are also beginning to shift manufacturing and consumption lifecycles, particularly those involving inputs such as plastics, agricultural products, chemicals, and significant transportation or energy resources.
Most of all, trust is becoming the fundamental currency of our time—and trust in corporations is in decline.
Consumers are increasingly interested in the health qualities, environmental footprint, and even social policies associated with the products they buy. Evidence is mounting that they are backing up these preferences with their dollars, as shown in research by Nielsen and Unilever. And with trust in institutions near all-time lows, especially in the U.S., effective ESG is an essential tool to strengthen trust in your brand, which the public now defines as the highest priority for CEOs. In fact, the silver lining is that there’s financial upside for businesses that show savvy leadership in these times.
Enterprise customers, meanwhile, are increasingly managing their own impacts and reputations through a similar lens and favoring vendors and partners whose products advance their own efforts. By some estimates, more than half of Fortune 500 companies have goals or initiatives in place to reduce greenhouse gas emissions, and attention to supply chain standards and other ESG issues is on the rise. As a result, ESG-related questionnaires and expectations for vendors—such as requirements incorporated into RFPs—are proliferating rapidly.
How does FrameworkESG make a difference?
These are trends certain to accelerate and transform the marketplace in the coming years and decades. We are experts in identifying the issues that pose the most risk—and opportunity—for your company and developing practices that protect and grow the trust of your customers and other important stakeholders.
When these efforts are paired with brand-integrated messages, engaging content, and strategic data disclosures, the total effect can improve your products or their creation and provide an authentic narrative that makes clear why you are a brand customers can be glad to do business with. For example, our work has:
- Helped a $7 billion food brand that is the leader in its segment to build an effective sustainability brand, message, and disclosure program focused on the key risk and opportunity issues we helped them identify. The program has extended to equipping its sales team with special materials that answer the most common ESG questions raised by major retail customers. In concert with improved practices they’ve implemented in those areas, the company’s reputation has been discernibly enhanced and its relationships with key customers protected.
- Supported a technology componentry manufacturer in creating a strategy to earn preferred vendor status with its most important customer, one of the largest technology brands in the world.
- Built a custom risk assessment methodology for one of the largest diversified entertainment brands in the world to create distinct ESG management plans for each of its divisions, which face very different risk factors from one another, while ensuring corporate retains simplified visibility across the most important aspects to manage.
To learn more about our work, see our services page or contact Victor Melendez, Managing Director & Chief Growth Officer, to request complimentary insights about current trust trends and practices to improve your profile.