The Power of Storytelling in ESG and Sustainability Communication

In the evolving landscape of sustainability and Environmental, Social, and Governance (ESG), effective communication has never been more vital. Organised by the Company of Communicators, the April 2025 webinar, “May the Facts Be With You: ESG & Communications” brought together  Alexander Walster (Navigator Gas) and Frank Krikhaar (Camarco) to provide insights into the challenges and opportunities within this space.

The Evolution of ESG and Sustainability

The concepts of ESG and sustainability are not new. The contemporary understanding of sustainability gained traction with the publication of the 1987 Brundtland Report. It defined sustainable development as companies meeting present needs without compromising the ability of future generations to meet their own. ESG emerged from the capital markets, starting with the 2004 UN Global Compact report Who Cares Wins. ESG focuses on the importance of sustainability-related considerations in investment decisions, leading to a framework for evaluating corporate behaviour across environmental, social, and governance factors. There was a period when ESG and sustainability were used interchangeably, but recently, there has been a divergence in expectations of audiences and practices. 

The Shift in Terminology and Market Trends

A significant insight from the webinar was the changing language in the market. Frank noted that terms like "ESG" and "climate change" have become less prominent in corporate communications, particularly in North America. In 2020, “ESG Reports” represented 60% of standalone sustainability-related reports, but by 2024, that figure had dropped to 20%, with an opposite shift to “Sustainability Reports”. This shift reflects growing divergence between different audiences, such as capital markets versus governments and clients. Companies are moving away from segmented ESG-related terminology and towards broader sustainability-related language.

The Role of Storytelling in ESG Communication

A key theme from the webinar was the significance of storytelling in communicating ESG and sustainability. Alex emphasised that storytelling allows organisations to present a compelling narrative about their purpose and the impact they strive to achieve. Rather than a narrow focus on ESG for a specific audience, companies are now articulating their journeys toward sustainability. At Navigator Gas, the owner and operator of seagoing gas carriers, storytelling plays a role. Alex explained that their Sustainability Reports highlight initiatives such as fleet efficiency and diversity, moving beyond mere compliance to connect with stakeholders on a deeper level. Frank reinforced this notion, adding that it is essential to tailor the message to the audience. By customising narratives, organisations can engage effectively with diverse stakeholders.

Challenges and Opportunities in ESG Communication

While the shift toward storytelling and a holistic approach presents opportunities, it also poses challenges. One major concern is greenwashing—misrepresenting a company’s environmental efforts. Both Alex and Frank stressed the importance of transparency and authenticity in ESG communication to build trust and avoid accusations of misleading stakeholders. Additionally, stakeholder expectations are diverging. The previous consensus, where governments, investors, and companies aligned on ESG priorities, has fragmented. Today, different stakeholders prioritise distinct issues, making it crucial for companies to tailor their communications accordingly. 

The Path Forward: Transparent and Targeted Communication

As ESG and sustainability continue to evolve, the importance of transparent, targeted, and impactful communication cannot be overstated. From the insights shared in the webinar, companies looking to enhance their ESG communication should consider the following strategies:

1. Adopt a Holistic Approach: Move beyond segmented ESG frameworks and embrace sustainability as an integrated, strategic concept. This broader perspective allows for addressing multiple issues and connecting with a wider audience.

2. Tell a Compelling Story: Use storytelling to articulate a narrative that reflects your organisation’s purpose and the positive impact it makes. Focus on initiatives that resonate with stakeholders beyond compliance.

3. Ensure Transparency and Authenticity: Ground your communications in facts and data. Avoid greenwashing by presenting an honest depiction of your efforts and their outcomes.

4. Tailor Your Message: Recognise that different stakeholder groups have unique priorities. Tailor your communications to address the specific needs and expectations of each audience.

5. Stay Ahead of Market Trends: Monitor shifts in terminology and market sentiment. Adjust your language and approach to align with evolving stakeholder expectations.

   
   

Conclusion

Communicating ESG and sustainability effectively is changing. Organisations that leverage storytelling, embrace transparency, and tailor their communications can navigate the complexities of this evolving landscape. By moving beyond mere compliance and focusing on a broader narrative, companies can showcase their commitment to a sustainable future while engaging stakeholders in a meaningful way.