We’ve probably all noticed that in recent years, environmental, social, and governance (ESG) factors have become more important in the business world

Many marketing campaigns have heavily leaned on the business’ green efforts and sustainability credentials, and there has been a surge in environmental products and services on the market in the last few years. But how sustainable are these products, and how accurate are these claims?

As a result of greenwashing and somewhat sketchy marketing, governments and regulatory bodies around the world are bringing in new regulations that require companies to disclose their ESG practices and demonstrate their commitment to sustainability.

These regulations will have a big impact on marketing teams as they need to ensure that their communications and messaging align with their company’s ESG practices. In this blog, we’re going to explore what marketing teams need to be aware of based on the ESG regulation in 2023.

Transparency and Disclosure

One of the key aspects of the regulation is transparency and disclosure. Companies are required to provide clear and comprehensive information about their impact on the environment and society. Marketing teams need to ensure that their messaging is transparent and not misleading, and that they do not make any claims that cannot be substantiated.

Greenwashing

ESG regulation has brought to light the issue of greenwashing, where companies make false or exaggerated claims about their sustainability practices. Greenwashing can damage a company’s reputation and credibility, and it is important for marketing teams to ensure that their communications are accurate and honest, and truly reflect the goals and mission of the business. If you’re doing amazing things that offer value and positive output, by all means say it proud, but make sure it’s authentic and relevant.

Impact on the Environment

The regulation unsurprisingly places a significant emphasis on the impact of companies on the environment. It’s important to be aware of the impact of their products and services, as well as outsourced or external services, and ensure that communications reflects their commitment to reducing their environmental footprint. This could include efforts to reduce their environmental impact, through use of renewable energy or reducing waste.

Social Impact

Marketing teams should also be aware of the company’s impact on society and factor in social responsibility. Do they support their local communities, such as their support for local charities or their efforts to provide job opportunities to disadvantaged groups? Do they generate jobs in their local area?

In summary, ESG is going to have an impact on all areas of most businesses – and this isn’t necessarily a bad thing. Making sure all marketing and comms are transparent, accurate, and honest, is a sure-fire way to ensure you’re adhering to the ESG regulations.