ASB
Poorly aligned sustainability claims can create reputational, legal and financial risk for organisations.
Suzy Giles
Leading the ESG Communications team at Environmental Resources Management (ERM – the world’s largest sustainability consultancy), I was surprised to find that among our clients, the communications leader was not always at the top table when it came to discussing sustainability. The level of involvement varied widely across organisations, from global energy companies to private equity.
I once had to ask to meet with the Director of Communications at a major European bank, ahead of presenting to their leadership our roadmap for developing and communicating their first climate transition plan. The fact that the communications leader was not in the room – nor had been a part of the process to employ us as consultants – was concerning.
The risk of excluding sustainability communications advice from board-level discussions can be wide-ranging. Sustainability decisions may conflict with communications and marketing already in the public domain, creating a greenwashing risk. Employees may also struggle to understand or support changes required for climate adaptation. Poor alignment can create financial risk as well.
The UK-based Chartered Institute of PR (CIPR), in collaboration with the UK Institute of Directors, recently published a handbook, ‘Crisis Communication for Boards’. In it, communications leader Stephen Waddington refers to reputation as a financial asset: “In 1975, tangible assets accounted for 83% of the market value of the S&P 500. By the end of 2025, that figure had fallen to 8%. Intangible assets – brand, trust, reputation and stakeholder confidence – now represent 92% of market capitalisation.”
Boards need to ensure sustainability claims are backed by evidence and align with the organisation’s values and actual performance. With greenwashing laws tightening – including the EU’s Empowering Consumers for the Green Transition Directive, which applies from 27 September – and scrutiny of environmental claims rising, any disconnect across those functions can create risk for organisations whose claims are being tested by investors and other stakeholders.
As communications professionals, we are adept at both external horizon scanning and internal engagement. As environmental, social and governance (ESG) priorities develop, directors need the right financial, legal and communications advice at the decision-making level.
Sustainability communications draws on a broad set of disciplines. It requires risk analysis and mitigation, report writing, crisis management, media relations, information integrity and often culture change – all while navigating climate transition methodologies and mandated reporting disclosures.
Whether voluntary or mandatory, sustainability claims need to be communicated authentically and transparently to reduce legal risk and support trust. As AI changes how stakeholders encounter sustainability information, with 83% of searches that trigger an AI Overview ending without a click, generative engine optimisation (GEO) is becoming more relevant. Organisations need to ensure their claims remain clear, consistent and supported by evidence across both owned and AI-mediated channels.
The complexity of the role led me to publish Sustainability Communications – a Practitioner’s Guide. The book examines why communications leaders need visibility across the business – from finance to legal – when sustainability decisions and claims are being made.
The topics are varied – from managing an ESG crisis and building a sustainable brand to dealing with mis- and disinformation, and reframing social value as a strategic asset. Sustainability communications professionals need to work alongside legal and financial advisors as organisations navigate competing priorities, geopolitical uncertainty and economic pressure.
Sustainability may appear to be slipping down some agendas, but investor and consumer expectations remain. Investors continue to require sustainability evidence, and consumers expect companies to communicate about their sustainability performance.
A recently published report by Bain & Company – The Visionary CEO’s guide to Sustainability – found 85% of consumers are concerned about sustainability, the first increase in three years.
One of the harder communications tasks is explaining uncertainty. Recent extreme weather events have forced physical and transition risks up the board agenda, requiring leaders to communicate a range of possible scenarios. When the answers are incomplete, leaders need to be explicit about what is known, what is uncertain and what comes next.
Meeting net zero targets as we approach milestone years is challenging on a number of levels. Leaders will earn trust if they communicate transparently, even if they do not yet have all the answers.
A useful principle is to communicate progress rather than perfection. Communicating uncertainty is a leadership skill, and communications expertise can help leaders explain decisions, trade-offs and gaps without overstating certainty.
Suzy Giles is a sustainability communications consultant based in Nelson. She chairs the UNDP/ICCO Climate Communications Task Force and the CIPR ESG Network, and is editor of Sustainability Communications – a Practitioner’s Guide.