These are cynical times. You only need to watch the news, look at social media or scan the front pages of the newspapers to see it.
The data backs this up. Edelman’s annual Trust Index 2024 looks at sentiment towards government, business, media and NGOs across 28 countries. The UK was at the bottom of the table, along with Japan and Argentina, and its score of 39 was down four points on just a year earlier.
Only one in two people in the UK (48%) say they trust businesses to do what is right. We’re not surprised by this. We hear it from our clients all the time, particularly when it comes to the issue of sustainability.
Many people are rightly suspicious of the ESG (environmental, social, governance) claims made by businesses. Greenwashing is everywhere. Too many organisations make lofty promises and then fail to follow through. There’s a sense that businesses don’t really care about the people they sell to, the people who work for them or the planet they occupy. They seem to only care about making money.
That’s a challenging place to be. Many of the organisations we talk to are making big efforts to shift their operations to a more sustainable path. Naturally, they want to be able to talk about the progress they’re making. They know it’s important to customers. They also know that employees and future hires, particularly younger people, care a lot about these issues. Government, regulators and investors are all watching closely.
Going public with green policies, products and commitments leaves many of our clients in a cold sweat. Yet not saying anything at all brings its own problems. If your competitors are speaking up, they will be more appealing to customers and employees. They will benefit from more favourable working relationships with governments and regulators. It will also make them more attractive to the very scientists and engineers you need to hire to deliver the transformation you’re working towards.
So, what’s our advice to clients in this situation?
First, honesty is the best policy. That’s always been the case, but even more so now. Dishonesty gets called out immediately and with devastating consequences.
Second, look at how you’re communicating. The clichés and jargon in the ESG world are a red rag to activists and a turn-off for everyone else. The sustainability area has thrown up a lot of terms – net zero, near zero, low carbon, low emissions – the list goes on. These are often used loosely and without clear definitions. The tone of your communication needs to be about explanation, education and engagement.
Third, be clear about where you’re heading but don’t pretend you’ve already arrived. When you set out your vision, it needs to be ambitious enough to be inspiring without being so far away that it lacks credibility. Acknowledge the gap between where you are heading and where you are now as well as the hard reality that this process is difficult and not an easy, short-term fix. The descriptor ‘hard to abate’ applied to industries such as steel and concrete sums up this sentiment well.
When we worked with stainless steel producer Aperam, they were facing many of these concerns. They are one of the biggest global players in their field and have ambitious plans to reduce their environmental footprint.
The extraction and production required for stainless steel generates significant CO2 emissions. Aperam has spent 11 years transforming their way of operating, including changing their business model. The aim has been to reduce their environmental footprint and contribute to the development of the circular economy. Recently, the company created Aperam Infinite, which uses advanced recycling methods, renewable energy and sustainably sourced ores.
We helped Aperam tell the story in a way that made sense to customers, partners, regulators, activists and governments. An important part of the story was acknowledging that this is not the end of the journey but a step towards the company’s ambition to become carbon neutral in its European operations by 2050.
By promoting these products and services while acknowledging the reality, Aperam was able to demonstrate its determination and commitment to meeting its sustainability goals while avoiding criticisms of greenwashing.
If you want to hear more about the Aperam story and other clients we’ve helped overcome cynicism, then get in touch.