There is an increased demand for transparent ESG reporting and communication from regulatory bodies and other stakeholders. Also, it is a complex matter that requires analysis, strategy, and actions as well as effective management and communication systems. Corporate Relations is assisting companies with the 7 steps of ESG Communication Management.
Step 1 – Insight and analysis
Two analyses will be relevant. One that gets insight on the trends in ESG reporting and communication and gives examples of best practice. And one that analyses the gap in reporting according to current regulation and standards. Especially, it will be relevant to analyse the level of compliance readiness to the new European standards for sustainability reporting (ESRS).
Step 2 – Stakeholder mapping
The stakeholder mapping can be done in many ways. Typically, you go from a gross list of stakeholders that affect your business and stakeholders that you affect in a positive or negative way, to define the most critical stakeholders which position, role, power, and urgency they possess. The mapping helps you prioritise the corporate reporting as well as the broader communication on ESG issues and opportunities.
Step 3 – Materiality assessment
As part of ESG reporting you need to conduct a double materiality assessment including environmental and societal topics that you affect as a company as well as the ESG issues that affect your company financially. In regard to reporting, this assessment complements the mandatory topics in the ESRS standards, and it illustrates which risks and opportunities that are relevant to prioritise.
Step 4 – Policies
Policy formulation is an essential part of ESG. It is an anchor for management and employees to visit when in doubt of rights and ethics, and it determines standards for quality, environmental action, working environment, human rights, anti-corruption, remuneration, taxes, data protection and privacy and much more – and it must be described in corporate reporting.
Step 5 – ESG Communications Strategy
The ESG communications strategy defines objectives, stakeholders and target audience, core story and messages, channels and media, governance and effect measurements. Also, the strategy could include a specific plan for how to develop the ESG reporting as part of an integrated corporate reporting. The strategy is a dynamic document that must always reflect trends and issues in society, in the industry, and among employees, customers and consumers.
Step 6 – Governance and education
ESG must be a part of all the decisions and actions taken by managers and employees. Hence, the strategy must be anchored internally. It must be included in policies, processes, and systems, but internal communication and education are also pivotal for ESG to become part of culture and business operations.
Step 7 – Reporting and communication
ESG reporting is a complex matter. The amount of compliance is increasing, and at the same time stakeholders are demanding more data and transparency on ESG topics. Also, new regulations call for restructuring of reporting and new areas of content. However, ESG should also be communicated through other corporate channels to reach different target groups.
Corporate Relations is facilitating meetings and workshops, counselling on strategy, structuring and writing content and conducting analysis.
Doing the materiality assessment right by engaging stakeholders
Everybody is doing a Double Materiality Assessment (DMA) – they are about to, or they have just finished or revised one. Some because they want to comply with the Corporate Sustainability Reporting Directive (CSRD) and some because they find it valuable to conduct an assessment that makes it possible to define strategic priorities in their corporate reporting as well as in deciding on ESG initiatives.
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