Changing the way we communicate is helping us advance our ESG agenda. The key to progress in the evolving landscape of environmental, social, and governance (ESG) programmes is the ability to communicate in the language of the business, says Allan Evans, Global Head of Sustainability for BDO.
Framing as strategic and financial priorities
Sustainability is complex and often shrouded in technical terms that can be hard to grasp. For any ESG programme to succeed, it’s crucial to make technical concepts understandable and relatable in terms of strategic and financial priorities that resonate with business leaders. This means framing ESG goals in terms of risk management, cost savings, and long-term value creation.
Our organisation’s ESG journey: the struggles
The importance of language for advancing ESG goals becomes clearer when first considering the challenges.
When we embarked on our ESG journey, one of the first major hurdles was giving sustainability the prominence it deserved within BDO. Like many other businesses, convincing BDO that sustainability was core to business strategy rather than an optional extra was difficult. This disconnect initially made it hard to secure the necessary resources and commitment. What has given our sustainability programme a major fillip is the recent announcement by our global CEO of a new vision for the organisation, which is centred on three foundational pillars. The ‘Focus on tomorrow’ pillar says it all – there will be no tomorrow without a focus on a sustainable future. Additionally, sustainability is named as one of four key enablers of our global strategic priorities. We are now deep into the implementation of our net-zero programme which includes a data platform for reporting and analysis of ESG data.
It has also been necessary and a challenge to get all BDO member firms to prioritise sustainability. BDO firms are independent businesses working within the BDO network, so the challenge has been to get all those firms tackling sustainability in a consistent and aligned manner. But here, too, we’ve made progress, focusing on firms in regional and other groupings (such as top 25, regional clusters) rather than trying to tackle all of them all at once.
What worked? Embracing business language
Despite these challenges, we found several strategies that worked well for building engagement and momentum.
For instance, we’ve assembled a diverse, multifunctional team that includes both technical experts and communicators to lead our initiatives.
But, as mentioned, changing the language we used was perhaps the most transformative action we took. Perhaps doing so earlier would have helped us move forward faster.
Now, for example, instead of talking about reducing carbon emissions, I prefer to discuss optimising operational efficiency and minimising regulatory risks. This approach makes our goals more relatable and compelling for business leaders.
Or, when addressing the importance of sustainability data, I focus on the potential for improved decision-making and enhanced investor confidence.
Another thing I do is use real-world examples to illustrate my points. For example, I might describe how 390,000 tons of CO2 emissions is equivalent to 5000 return trips to the moon in a car.
Finally, when I prepare for presentations, I tailor my content to the audience. Last year, for a presentation on sustainability to our firms in the ASEAN region, I researched local clients, obtained sustainability revenue and other relevant information from our firms and could then easily bridge the gap between client issues and needs to how BDO could add business value to clients.
By working to frame sustainability and ESG issues in business terms, it’s easier to link sustainability goals and business objectives.
In my view, this is the first step to making the case for ESG initiatives compelling and relatable for business leaders.
Don’t lose the good for the great
In the pursuit of greatness, it's easy to overlook the value of what we’ve already achieved. Striving for the extraordinary can be inspiring, but it should not come at the expense of the good things we currently have. Often, incremental improvements and maintaining high standards in our existing processes can yield significant benefits. By appreciating and nurturing the good, we build a strong foundation that can support our ambitions for greatness. It's about balance and recognising that consistent, positive steps can lead to sustainable success without sacrificing the quality and achievements already in place.
Don’t focus on the things you can’t do immediately - focus on the positive things
In the journey towards sustainability, it's crucial to focus on the positive actions we can take today rather than being paralysed by what seems unattainable. Focusing on immediate, actionable steps helps build momentum and fosters a culture of continuous improvement. Moreover, it's essential to avoid ‘green shaming’, or criticizing others for not being perfectly sustainable. Instead, we should encourage and celebrate every effort, no matter how small. Positive reinforcement and a supportive approach can inspire more people to contribute to sustainability goals, creating a collective impact that drives significant, long-term change.
The urgency of now
In closing, I have the chance to practice what I’m preaching. I could talk about the disaster that looms in our world.
Or, since I’m speaking to executives, I can choose to focus on the business story behind that.
Here it goes: As the global economy shifts towards sustainability, the urgency to act is greater than ever. Companies that fail to integrate ESG into their core strategies risk falling behind.
The regulatory landscape is tightening, and investors are increasingly prioritising sustainability.
The time to act is now, and the key to driving momentum lies in effectively communicating the business case for ESG initiatives.
Reach out to let me know if my suggestions were helpful and what’s working for you in your company.
