Megan Schreckenbach
Vice President of Account Services
Are you currently telling the complete story of your company? Sure, you show what you do, some work you’ve done, with whom you’ve worked, your expertise, your locations and maybe who your people are … but is that the sum total of your organization? No, it’s not according to the investment community. Investors are paying much more attention to aspects beyond capabilities and profits. That’s where your Environmental, Social and Governance (ESG) statement becomes the next chapter in your story … and therefore, the latest addition to your marketing plan.
Sometimes referred to as sustainable investing, responsible investing, impact investing or socially responsible investing, ESG investing criteria is a set of standards for a company’s operations that investors are now using to screen potential investments.
Defining the ESG in Environmental, Social and Governance Investing
- Environmental criteria consider how a company performs as a steward of the environment.
- Social criteria examine how a company manages relationships with employees, suppliers, customers and the communities where it operates.
- Governance deals with a company’s leadership, executive pay, audits, internal controls and shareholder rights.
ESG; a Trend That is On the Rise
As reported by the US SIF Foundation, investors held $11.6 trillion in assets chosen based on ESG criteria at the beginning of 2018, up from $8.1 trillion just two years earlier.
Put into overdrive by the current political climate and the economic upheaval of the COVID-19 pandemic, the energy industry must join this increasingly popular way for investors to evaluate companies.
For an industry already battling negative fossil fuel and climate change perceptions, this growing trend is a call to more clearly communicate, both intentionally and strategically, what is important to your organization. Tell your side of the story.
Companies in oil and gas and related industries are committed to innovation, efficiency, safety and community. Significant investment and technological advancement directly related to sustainability and reduced environmental impact are at the forefront of our industry, and the dedication to community is second-to-none. At its core, players are practicing ESG principles and, in most cases, those initiatives simply need to be touted and marketed more intentionally. Maybe energy companies are just being too humble but now, more than ever, it is important to tell your whole story as the flow of capital is at risk.
What is Triple Bottom Line all about?
Triple Bottom Line refers to the concept that companies should commit to focusing on social and environmental concerns just as they do profits. According to this economics theory, there are three bottom lines businesses should care about: profit, people and the planet.
Craft Your ESG Messaging
The first step in developing your ESG messaging is crafting your statement and strategy. Start by taking a strategic look at what the company is already doing to check these boxes. Particularly for smaller companies, this will provide the foundation for the overall strategy. Are there technologies in your offerings which are applicable in the arena of renewable natural gas? Perhaps you are already giving to causes close to home and beyond? Does your QHSE policy reflect high regard for your employees’ health and safety? Are proper processes and procedures in place to produce accurate and transparent accounting methods? In other words, get started and take a hard look at what you are doing already. This will give you a starting point and likely will uncover gaps you may want to consider re-evaluating in the future.
ESG messaging should be forward-facing, serving as the latest addition to your brand persona. This is where purposeful marketing efforts come into play.
- Tell YOUR Story
- What is the company mission related to ESG criteria; and how is the story told consistently and creatively to varying audiences? Take it up a notch and show how the company is providing increased performance while upholding or utilizing its ESG initiatives. Direct correlations between sustainability and business performance are the best stories to tell. An example would be showcasing increased profitability with a product offering that reduces emissions of greenhouse gases.
- Honed-Content Marketing
- Content is king. We’ve heard it too many times to count but focus on authentic efforts toward the causes chosen. Efforts should not come across as promotional, but always authentic so credibility is not lost.
- Inventive Public Relations and Thought Leadership
- Utilize appropriate media channels to promote ESG culture and your wins. Have you seen an increase in employee contributions to your defined social causes? Perhaps your latest diversified product offering serves the renewable natural gas market? Shaping public perception through the media is vital to obtain thought-leadership on the topics you have chosen to stake your claim.
- Engaging Employees
- Engaged employees are arguably the most important partner in promoting an effective, integrated ESG program. Empowering employees to take ownership of ESG initiatives and highlighting their commitment is gold. Whether a company-wide fundraising event benefiting a noble cause or self-improvement courses being offered company-wide, these ESG-style initiatives will have an effect on your team and that effect will be noticed outside the company’s walls.
People invest in companies they like. Customers choose to do business with people they like. Top professionals want to work for companies we have a good feeling about. Effectively promoting your ESG-minded commitments will cause leadership to shine, customers to call, employees to stay and, yes, investors to buy in. That is a true business win.
Let’s get started! Call us today at 281-448-3435, contact us online or connect with us on LinkedIn.
BONUS TIP
Are You Engaging in Social Groups
If so, congrats! You’re taking a positive step toward increasing engagement:
- Participating in groups, such as on LinkedIn, is a great way to form connections with other businesses and potential clients.
- Listening in groups can be just as valuable as posting. You can learn a lot from a target audience!
- Social groups are a great way to communicate and engage with very specific groups of people.
- Plus, keep tabs on your competitors by monitoring which groups they are active.
If you aren’t already engaging in social groups, it’s time to take a look at where conversations about your industry are happening and what your customers care about. Select a few groups on LinkedIn to get started. LinkedIn groups are usually a great starting point for most B2B companies. Jump in and start sharing!
NOW AVAILABLE: 2021 TRADE SHOW DIRECTORY
Check out Foster Marketing’s 2021 Trade Show Directory containing 85 trade shows in the oil and gas and industrial markets. Plan what you will attend and mark your calendar today!