20 June 2022

ESG is no longer a point of differentiation. It’s a must-have.

Last month’s election results were a call for meaningful change. And for brands, this means an increased focus on environmental, social and governance (ESG) practices.

I’m not talking about simply setting up quotas or ticking boxes – or buying carbon credits. It’s about fundamentally understanding each element of ESG and what they mean to consumers. It’s about listening to your customer at every marketing touchpoint and making sure they feel heard in your communications.

Over the last couple of years ESG has shifted from being a point of differentiation to a hygiene factor that every brand needs to embrace. Both consumers and employees are calling for organisations to invest more time and resources on each of the three components equally – and drive change from within. And those that do, reap the rewards.

According to a 2021 PwC report, ESG commitments are helping drive consumer purchases and employee engagement – 76% of consumers are more likely to buy from a company that stands up for social improvements, while 80% feel the same about environmental and governance improvements. And it’s a similar story for employees, with 84% more likely to work for a company that takes its ESG responsibilities seriously.

Investors are also putting the pressure on – and voting with their dollars. Many today refuse to invest in companies that do not have a strong stance on diversity, inclusion and sustainability.

For marketers this might mean a shift in how they engage with their audiences, finding ways to connect that are easier or more appealing. Fortunately, the Australian community is one of great diversity, It is one of the most culturally and linguistically diverse nations and also both strongly metropolitan and regional. One in five of us experiences some form of disability and at least 4% of the population belong to our LGBTQ+ Community, additionally we have a healthy segment of ageing Australians to embrace and support.

Such diversity is something that as a young nation Australia is very proud of and audiences look to brands that recognize and celebrate that. As marketers you need to ensure your messaging authentically reflects this increasing diversity of backgrounds and experiences of your customers, or else you won’t connect with them effectively and your brand will be left behind.

Some brands are clearly leading the way. ADMA Member brands like Coles, IPG, Westpac, Facebook, Google, Suncorp and Optus have joined forces with UN Women to end stereotypes and promote equality and diversity through the Unstereotype Alliance. The group’s 21-strong Australian arm has pledged to tackle “harmful stereotypes in Australian advertising and media content.” By addressing issues such as gender, race, ethnicity and ability in media content, the alliance aims to turn advertising into a force for good.

As part of its ESG strategy, Telstra has made sustainability a priority. It recently warned its publishers, agencies and tech providers that if they don’t align with its decarbonisation and social mandates, they will be cut from its supplier list. B-Corp brand and ADMA member Kathmandu is connecting better with consumers by setting itself up as a global leader in ESG. From developing a people-centred culture and science-based climate action to designing circular business models, the outdoor adventure brand is already leading the way. And with

As marketers, we have a unique opportunity to contribute to meaningful ESG strategies. By truly understanding what customers are after and how that’s relevant to your brand, you can embed ESG in your purpose and create practices and policies that will contribute to a better world.

As the voice of the customer, we have an opportunity – and responsibility – to push for change at a board level. And I implore you all to do so, sooner rather than later.