{"id":2085,"date":"2021-07-08T06:46:32","date_gmt":"2021-07-08T06:46:32","guid":{"rendered":"https:\/\/citizenrelprod.wpenginepowered.com\/?p=2085"},"modified":"2023-12-20T12:51:58","modified_gmt":"2023-12-20T12:51:58","slug":"sustainability-or-esg-identify-companies-understand-difference","status":"publish","type":"post","link":"https:\/\/www.citizenrelations.com\/en\/sustainability-or-esg-identify-companies-understand-difference\/","title":{"rendered":"Sustainability Or ESG? Identify Companies That Understand The Difference"},"content":{"rendered":"

When it comes to sustainability and ESG, it\u2019s not potato\/potahto. There is a difference, and the difference matters.<\/span><\/p>\n

The term ESG has been used to distinguish investment funds that, in theory, screen companies for some level of sustainability performance or advantage. But applying an ESG categorization doesn\u2019t guide behaviour or connect to outcomes. It is an acronym, with topics that a company can choose to address.<\/span><\/p>\n

An ESG approach can lead to compartmentalizing issues, resulting in environmental, social or governance silos. This is problematic because most issues don\u2019t fit into neat boxes. For example, climate change impacts not only the physical environment but also human rights, including the rights to life, food, water, housing, health and work.<\/span><\/p>\n

In contrast to ESG, sustainability makes room for a systems approach to understanding and addressing topics that overlap and intersect.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Moving beyond ESG and embracing complexity<\/b><\/h3>\n

The view that ESG is not only good for the planet and people but also good for business has gained momentum in the past five years, and really took off after Larry Fink\u2019s 2018 letter to CEOs declaring,<\/p>\n

To prosper over time, every company must not only deliver financial performance but also show how it makes a positive contribution to society.<\/p><\/blockquote>\n

While investors and heads of corporations are showing interest in ESG, activity is limited to what\u2019s required, focusing on compliance and efficiency, and relegating innovation to a moonshot.<\/p>\n

Companies that move beyond checking boxes aspire to fundamentally transform their businesses \u2014 to seize an opportunity. Rather than continuing to think about sustainability commitments as obligations or contributions to society \u2014 something necessary but on the periphery of the business \u2014 leading companies treat those commitments as a competitive advantage.<\/span><\/p>\n

Unilever and IKEA have both moved their sustainability efforts far beyond what\u2019s required, to boldly integrate sustainability (not ESG) into the heart of how they do business, and all the while disrupting the status quo.<\/span><\/p>\n

For example, Unilever\u2019s sustainable living plan outlines the company\u2019s requirements for sourcing, supply chain and production. The plan includes guidelines on water and energy use, worker rights and pushing for a \u201ccircular economy\u201d for plastic packaging.<\/span><\/p>\n

Rigorous metrics are required to measure progress and performance on sustainability goals. However, to inspire and galvanize action, <\/span>these metrics need to be pulled into a compelling narrative and emotional engagement across the organization with stakeholders. <\/b>The overall approach needs to come from a place of conviction, distinctive for the brand, meaningful to stakeholders, motivating to employees, resonant in the marketplace, aligned with the business\u2019s purpose and consistent with its values.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

A company must start with purpose.<\/b><\/h4>\n

Crafting a clear and compelling purpose is essential to creating a strategy that moves the dial from compliance and efficiency, and in time lands on innovation. Purpose answers the questions:<\/span><\/p>\n

    \n
  • Why do employees come to work each morning?<\/span><\/li>\n
  • If the company disappeared tomorrow, what would the world lose?<\/span><\/li>\n<\/ul>\n

    Defining the company\u2019s purpose isn\u2019t a writing exercise built around peer comparison. It\u2019s an exercise in exploration \u2014 unearthing the company\u2019s unique strengths and taking an in-depth and wide-angle view of what the world needs from the company.<\/span><\/p>\n

    After purpose is articulated, it should be brought to life across the organization, motivating stakeholders, driving strategy and elevating the brand.<\/b><\/h4>\n

    Purpose becomes a critical filter for developing a sustainability strategy that is authentic: focused, credible, distinctive and inspiring.<\/span><\/p>\n

    While a robust sustainability strategy should cover a variety of topics, it\u2019s important that the company identify one or two areas where it can have a significant impact. Purpose lends itself to zeroing in on a set of relevant issues that the company is uniquely positioned to address. What one thing does the company want to be known for or in what area does it want to influence industry or society?<\/span><\/p>\n

    Finally, a company needs a compelling and distinctive sustainability story \u2014 a strategic narrative from which all sustainability communications flow.<\/b><\/h4>\n

    The story connects stakeholders emotionally, and should be told with strong vision and commitment rooted in tangible actions.<\/span><\/p>\n

    However, beware of a self-congratulatory story about the company\u2019s incremental progress on metrics. Substance is the most important element: a company\u2019s sustainability story should be supported by tangible actions and transparent progress.<\/span><\/p>\n

     <\/p>\n","protected":false},"excerpt":{"rendered":"

    When it comes to sustainability and ESG, it\u2019s not potato\/potahto. There is a difference, and the difference matters. The term ESG has been used to distinguish investment funds that, in theory, screen companies for some level of sustainability performance or advantage. But applying an ESG categorization doesn\u2019t guide behaviour or connect to outcomes. It is […]<\/p>\n","protected":false},"author":1,"featured_media":2090,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[4],"tags":[],"class_list":["post-2085","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"yoast_head":"\nSustainability Or ESG? Identify Companies That Understand The Difference | Citizen Relations<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.citizenrelations.com\/en\/sustainability-or-esg-identify-companies-understand-difference\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sustainability Or ESG? Identify Companies That Understand The Difference | Citizen Relations\" \/>\n<meta property=\"og:description\" content=\"When it comes to sustainability and ESG, it\u2019s not potato\/potahto. There is a difference, and the difference matters. The term ESG has been used to distinguish investment funds that, in theory, screen companies for some level of sustainability performance or advantage. But applying an ESG categorization doesn\u2019t guide behaviour or connect to outcomes. It is […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.citizenrelations.com\/en\/sustainability-or-esg-identify-companies-understand-difference\/\" \/>\n<meta property=\"og:site_name\" content=\"Citizen Relations\" \/>\n<meta property=\"article:published_time\" content=\"2021-07-08T06:46:32+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-12-20T12:51:58+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.citizenrelations.com\/wp-content\/uploads\/2023\/12\/GettyImages-1197913361-2.webp\" \/>\n\t<meta property=\"og:image:width\" content=\"670\" \/>\n\t<meta property=\"og:image:height\" content=\"405\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/webp\" \/>\n<meta name=\"author\" content=\"citizen\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"citizen\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.citizenrelations.com\\\/en\\\/sustainability-or-esg-identify-companies-understand-difference\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.citizenrelations.com\\\/en\\\/sustainability-or-esg-identify-companies-understand-difference\\\/\"},\"author\":{\"name\":\"citizen\",\"@id\":\"https:\\\/\\\/www.citizenrelations.com\\\/en\\\/#\\\/schema\\\/person\\\/9a2f1330ad5d3f1e2495966076a91a1f\"},\"headline\":\"Sustainability Or ESG? Identify Companies That Understand The Difference\",\"datePublished\":\"2021-07-08T06:46:32+00:00\",\"dateModified\":\"2023-12-20T12:51:58+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.citizenrelations.com\\\/en\\\/sustainability-or-esg-identify-companies-understand-difference\\\/\"},\"wordCount\":718,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/www.citizenrelations.com\\\/en\\\/sustainability-or-esg-identify-companies-understand-difference\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.citizenrelations.com\\\/wp-content\\\/uploads\\\/2023\\\/12\\\/GettyImages-1197913361-2.webp\",\"articleSection\":[\"News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.citizenrelations.com\\\/en\\\/sustainability-or-esg-identify-companies-understand-difference\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.citizenrelations.com\\\/en\\\/sustainability-or-esg-identify-companies-understand-difference\\\/\",\"url\":\"https:\\\/\\\/www.citizenrelations.com\\\/en\\\/sustainability-or-esg-identify-companies-understand-difference\\\/\",\"name\":\"Sustainability Or ESG? Identify Companies That Understand The Difference | Citizen Relations\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.citizenrelations.com\\\/en\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.citizenrelations.com\\\/en\\\/sustainability-or-esg-identify-companies-understand-difference\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.citizenrelations.com\\\/en\\\/sustainability-or-esg-identify-companies-understand-difference\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.citizenrelations.com\\\/wp-content\\\/uploads\\\/2023\\\/12\\\/GettyImages-1197913361-2.webp\",\"datePublished\":\"2021-07-08T06:46:32+00:00\",\"dateModified\":\"2023-12-20T12:51:58+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/www.citizenrelations.com\\\/en\\\/#\\\/schema\\\/person\\\/9a2f1330ad5d3f1e2495966076a91a1f\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.citizenrelations.com\\\/en\\\/sustainability-or-esg-identify-companies-understand-difference\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.citizenrelations.com\\\/en\\\/sustainability-or-esg-identify-companies-understand-difference\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.citizenrelations.com\\\/en\\\/sustainability-or-esg-identify-companies-understand-difference\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.citizenrelations.com\\\/wp-content\\\/uploads\\\/2023\\\/12\\\/GettyImages-1197913361-2.webp\",\"contentUrl\":\"https:\\\/\\\/www.citizenrelations.com\\\/wp-content\\\/uploads\\\/2023\\\/12\\\/GettyImages-1197913361-2.webp\",\"width\":670,\"height\":405},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.citizenrelations.com\\\/en\\\/sustainability-or-esg-identify-companies-understand-difference\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.citizenrelations.com\\\/en\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Sustainability Or ESG? Identify Companies That Understand The Difference\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.citizenrelations.com\\\/en\\\/#website\",\"url\":\"https:\\\/\\\/www.citizenrelations.com\\\/en\\\/\",\"name\":\"Citizen Relations\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.citizenrelations.com\\\/en\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.citizenrelations.com\\\/en\\\/#\\\/schema\\\/person\\\/9a2f1330ad5d3f1e2495966076a91a1f\",\"name\":\"citizen\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/87d46018aa6515061b6a80553aec91983842170fe48fdddc0a7db89382f2d4fd?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/87d46018aa6515061b6a80553aec91983842170fe48fdddc0a7db89382f2d4fd?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/87d46018aa6515061b6a80553aec91983842170fe48fdddc0a7db89382f2d4fd?s=96&d=mm&r=g\",\"caption\":\"citizen\"},\"sameAs\":[\"https:\\\/\\\/www.citizenrelations.com\"],\"url\":\"https:\\\/\\\/www.citizenrelations.com\\\/en\\\/author\\\/citizen\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Sustainability Or ESG? Identify Companies That Understand The Difference | Citizen Relations","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.citizenrelations.com\/en\/sustainability-or-esg-identify-companies-understand-difference\/","og_locale":"en_US","og_type":"article","og_title":"Sustainability Or ESG? Identify Companies That Understand The Difference | Citizen Relations","og_description":"When it comes to sustainability and ESG, it\u2019s not potato\/potahto. There is a difference, and the difference matters. The term ESG has been used to distinguish investment funds that, in theory, screen companies for some level of sustainability performance or advantage. But applying an ESG categorization doesn\u2019t guide behaviour or connect to outcomes. It is […]","og_url":"https:\/\/www.citizenrelations.com\/en\/sustainability-or-esg-identify-companies-understand-difference\/","og_site_name":"Citizen Relations","article_published_time":"2021-07-08T06:46:32+00:00","article_modified_time":"2023-12-20T12:51:58+00:00","og_image":[{"width":670,"height":405,"url":"https:\/\/www.citizenrelations.com\/wp-content\/uploads\/2023\/12\/GettyImages-1197913361-2.webp","type":"image\/webp"}],"author":"citizen","twitter_card":"summary_large_image","twitter_misc":{"Written by":"citizen","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.citizenrelations.com\/en\/sustainability-or-esg-identify-companies-understand-difference\/#article","isPartOf":{"@id":"https:\/\/www.citizenrelations.com\/en\/sustainability-or-esg-identify-companies-understand-difference\/"},"author":{"name":"citizen","@id":"https:\/\/www.citizenrelations.com\/en\/#\/schema\/person\/9a2f1330ad5d3f1e2495966076a91a1f"},"headline":"Sustainability Or ESG? Identify Companies That Understand The Difference","datePublished":"2021-07-08T06:46:32+00:00","dateModified":"2023-12-20T12:51:58+00:00","mainEntityOfPage":{"@id":"https:\/\/www.citizenrelations.com\/en\/sustainability-or-esg-identify-companies-understand-difference\/"},"wordCount":718,"commentCount":0,"image":{"@id":"https:\/\/www.citizenrelations.com\/en\/sustainability-or-esg-identify-companies-understand-difference\/#primaryimage"},"thumbnailUrl":"https:\/\/www.citizenrelations.com\/wp-content\/uploads\/2023\/12\/GettyImages-1197913361-2.webp","articleSection":["News"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.citizenrelations.com\/en\/sustainability-or-esg-identify-companies-understand-difference\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.citizenrelations.com\/en\/sustainability-or-esg-identify-companies-understand-difference\/","url":"https:\/\/www.citizenrelations.com\/en\/sustainability-or-esg-identify-companies-understand-difference\/","name":"Sustainability Or ESG? Identify Companies That Understand The Difference | Citizen Relations","isPartOf":{"@id":"https:\/\/www.citizenrelations.com\/en\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.citizenrelations.com\/en\/sustainability-or-esg-identify-companies-understand-difference\/#primaryimage"},"image":{"@id":"https:\/\/www.citizenrelations.com\/en\/sustainability-or-esg-identify-companies-understand-difference\/#primaryimage"},"thumbnailUrl":"https:\/\/www.citizenrelations.com\/wp-content\/uploads\/2023\/12\/GettyImages-1197913361-2.webp","datePublished":"2021-07-08T06:46:32+00:00","dateModified":"2023-12-20T12:51:58+00:00","author":{"@id":"https:\/\/www.citizenrelations.com\/en\/#\/schema\/person\/9a2f1330ad5d3f1e2495966076a91a1f"},"breadcrumb":{"@id":"https:\/\/www.citizenrelations.com\/en\/sustainability-or-esg-identify-companies-understand-difference\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.citizenrelations.com\/en\/sustainability-or-esg-identify-companies-understand-difference\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.citizenrelations.com\/en\/sustainability-or-esg-identify-companies-understand-difference\/#primaryimage","url":"https:\/\/www.citizenrelations.com\/wp-content\/uploads\/2023\/12\/GettyImages-1197913361-2.webp","contentUrl":"https:\/\/www.citizenrelations.com\/wp-content\/uploads\/2023\/12\/GettyImages-1197913361-2.webp","width":670,"height":405},{"@type":"BreadcrumbList","@id":"https:\/\/www.citizenrelations.com\/en\/sustainability-or-esg-identify-companies-understand-difference\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.citizenrelations.com\/en\/"},{"@type":"ListItem","position":2,"name":"Sustainability Or ESG? Identify Companies That Understand The Difference"}]},{"@type":"WebSite","@id":"https:\/\/www.citizenrelations.com\/en\/#website","url":"https:\/\/www.citizenrelations.com\/en\/","name":"Citizen Relations","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.citizenrelations.com\/en\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.citizenrelations.com\/en\/#\/schema\/person\/9a2f1330ad5d3f1e2495966076a91a1f","name":"citizen","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/87d46018aa6515061b6a80553aec91983842170fe48fdddc0a7db89382f2d4fd?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/87d46018aa6515061b6a80553aec91983842170fe48fdddc0a7db89382f2d4fd?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/87d46018aa6515061b6a80553aec91983842170fe48fdddc0a7db89382f2d4fd?s=96&d=mm&r=g","caption":"citizen"},"sameAs":["https:\/\/www.citizenrelations.com"],"url":"https:\/\/www.citizenrelations.com\/en\/author\/citizen\/"}]}},"_links":{"self":[{"href":"https:\/\/www.citizenrelations.com\/en\/wp-json\/wp\/v2\/posts\/2085","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.citizenrelations.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.citizenrelations.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.citizenrelations.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.citizenrelations.com\/en\/wp-json\/wp\/v2\/comments?post=2085"}],"version-history":[{"count":0,"href":"https:\/\/www.citizenrelations.com\/en\/wp-json\/wp\/v2\/posts\/2085\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.citizenrelations.com\/en\/wp-json\/wp\/v2\/media\/2090"}],"wp:attachment":[{"href":"https:\/\/www.citizenrelations.com\/en\/wp-json\/wp\/v2\/media?parent=2085"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.citizenrelations.com\/en\/wp-json\/wp\/v2\/categories?post=2085"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.citizenrelations.com\/en\/wp-json\/wp\/v2\/tags?post=2085"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}