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Writer's pictureDr. Frank Lampe

Sustainability Communication: A Key to the Future Viability of Companies

Updated: Nov 28

Why is sustainability communication important today?

Sustainability is no longer a trend - it is a necessity. In 2024, the climate crisis, resource scarcity and social inequality will be more in focus than ever before. Consumers, investors and politicians are demanding that companies not only act sustainably, but also communicate this transparently. A current example shows why: the EU taxonomy is increasingly requiring companies to provide detailed information on their sustainability performance. The goal is clear: companies should take responsibility and communicate this credibly to the outside world. But how can this be achieved?



What is meant by sustainability communication?

Sustainability communication refers to the strategic communication of information about a company's ecological, social and economic measures . The aim is to create transparency, strengthen the trust of stakeholders and position the company's own brand positively. This is not just about pure reporting, but also about dialogue, interaction and long-term credibility.


Which companies are affected?

Companies with a significant environmental impact, such as industrial, construction or logistics companies, are particularly affected. But smaller companies that operate in global supply chains are also increasingly coming into focus. Sustainability communication is particularly relevant for companies that are subject to the reporting requirements of the Corporate Sustainability Reporting Directive (CSRD). But voluntary actors who want to position themselves as sustainable in public also benefit from well-thought-out communication.


Voluntary vs. legally required sustainability communication

Voluntary sustainability communication aims to build a positive image and create competitive advantages. It is often more promotional and more flexible in its design, so it does not have to adhere 100% to existing guidelines.

Legally required communication, on the other hand, is bound to standards such as the CSRD. Companies must submit structured reports that include environmental indicators, social aspects and governance criteria (ESG). The focus here is on compliance with regulations and traceability.


What do companies need to implement organizationally?

The following organizational measures are necessary for successful sustainability communication:

  • The establishment of sustainability management: A dedicated department or staff unit to coordinate sustainability issues.

  • Data management: Establishment of a system for collecting, measuring and evaluating sustainability data.

  • The offer of training courses: raising employees’ awareness of sustainable topics and processes.

  • Integration into the corporate strategy: Sustainability should be anchored as part of the vision and mission.


What does sustainability communication actually look like in terms of content?

Sustainability communication can include various aspects and should consist of these elements:

  • Sustainability reports: Structured, data-based documents according to recognized standards such as GRI or DNK or at least based on these structures.

  • Case studies and success stories: Examples of concrete projects or successes that promote sustainability.

  • Objectives and measures: Defining and clearly presenting the sustainability objectives and the path to achieving them.

  • Dialogue with stakeholders: surveys, workshops or social media campaigns to gather opinions and promote transparency.


Best Practices Some companies have shown what is possible and are taking a proactive approach to sustainability communication. Here are two examples:

  • Patagonia: The company not only publishes reports, but also documents mistakes and learning successes.

  • Siemens: Combining reports with interactive tools to present data in a comprehensible way.


target groups and communication channels

The target audience of sustainability communication essentially comprises four groups that can be reached via different communication channels:

  • Investors: e.g. via ESG reports and investor relations platforms or the corresponding areas of the website.

  • Customers: Via social media, newsletters and websites.

  • Employees: Internal communication, e.g. via employee newsletter, in Intranet and training.

  • Public: press releases, website and events.


Who will help with the implementation?

  • Freelancers and agencies for sustainability consulting: support with strategy and content.

  • Technology provider: Providing software for data management and reporting.

  • Industry associations: advice and training.


Costs of Sustainability Communication

The costs vary depending on the scope and method. Smaller measures start at a few thousand euros, while comprehensive communication strategies can reach six-figure amounts. It is important that the investment is well planned and adapted to the company's goals.


What concrete benefits do companies get from this?

In addition to meeting any legal requirements, there are four areas in which companies can benefit from their sustainability communication today:

  • Reputation: Improving brand image.

  • Customer acquisition: Increasing attractiveness for environmentally conscious customers or customers who need or want to carry out sustainability reporting.

  • Investor confidence: Better chances of sustainable financing through transparent presentation of sustainability goals and measures.

  • Employee retention and recruiting: Strengthening the loyalty and identification of existing employees through credible values and increasing attractiveness for potential future employees.


Outlook: The increasing importance of sustainability communication

The demands on sustainability communication will continue to increase. Future laws, such as the expansion of the CSRD or stricter regulation of greenwashing in the EU, are foreseeable. Companies that act now not only secure a head start, but also create a solid foundation for the future. Sustainability communication is therefore no longer a "nice-to-have" for many companies - but an element of modern corporate management.

 

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