Unleashing ESG marketing as a profit powerhouse

ESG is reshaping the corporate landscape: profit, consumer expectations and reputation. We blueprint key insights and actionable strategies to harness the ESG marketing opportunity.

In today’s corporate arena, the concept of Environmental, Social, and Governance (ESG) is the boardroom giant that keeps growing.

And this juggernaut shows no signs of slowing, given the looming European Union’s Corporate Sustainability Reporting Directive, which demands unparalleled transparency regarding the environmental and societal actions of companies operating within or engaging with the EU.

Marketers and corporate affairs professionals recognise the immense potential of ESG to fortify brand reputation and drive sales.

But it remains a double-edged sword, and many are understandably gun-shy, given that ESG marketing carries the likelihood of increased regulatory scrutiny – evidenced by the Australian Competition and Consumer Commission’s recent greenwashing crackdown.

Yet despite – or perhaps because of – this, consumer expectations around ESG remain unfulfilled.

According to the IPSOS Climate Change Report 2022, only 40% of Australians believe that businesses are genuinely committed to taking action.

This stark disconnect underscores an extraordinary opportunity for proactive businesses to leverage ESG as the linchpin of their value proposition.

ESG advantage in B2C: a competitive edge

We work with a financial services company that authentically leads the ESG charge.

It not only talks the talk but walks the walk across the spectrum of ESG: from tangibly progressing towards its 2050 net-zero goal, to the circular economy, modern slavery, governance, diversity, and strategic investments.

Despite its impressive efforts, it was grappling with a fundamental question: How could it articulate its ESG actions to a B2C audience, and would doing so amplify brand salience and sales?

To unlock the answers, we undertook a Brand Experience Map – a data-driven process that deciphers the precise information consumers seek at each stage of the digital customer journey.

We’ve undertaken several similar projects to help organisations understand the ESG opportunity, customer pain points and motivators to purchase.

And while we won’t share bespoke insights, overarching patterns emerge when understanding consumers’ ESG decision-making.

ESG / climate action + [product] insights:

Note: we categorised search terms with ‘intent’-led keywords tailored to brand products, discarding generic keywords like “climate change.”

‘Ethical’ + [financial product] is searched more than 1.1 million times annually.
Searches for 'ethical' have surged by 16% year-on-year.
More than a third of these searches are undertaken by people aged from 25-34.
‘Green’, ‘compare ethical’ and ‘environmentally friendly’ searches are experiencing exponential growth.
More than one million searches laser-focus on the discrete keyword 'climate change' + [financial product]
'Climate action' searches have seen a 12% year-on-year increase.
Nearly half a million searches for 'carbon' occur each year.
Approximately 250,000 searches relate to an individual's carbon footprint.
Content aggregators typically dominate organic traffic.
Most brands do not have a sophisticated paid, owned and earned strategy to capture this market at scale.

Elevate your brand through ESG: strategies to differentiate

It goes without saying that authenticity reigns supreme when it comes to ESG marketing — making every claim bulletproof is non-negotiable.

However, businesses stand at the precipice of a transformative era given the ever-increasing number of consumers searching for sustainable alternatives.The power to influence purchase decisions through environmental action is undeniable.

Organisations should seize the opportunity by capitalising on:

Analysing and leveraging the treasure trove of data to determine a powerful ESG narrative that resonates deeply with consumers.
Demonstrating that sustainability and product excellence aren't an either-or proposition – they should be harmonious allies.
Infusing your marketing and content with emotion and humanity, crafting a compelling narrative level.
Blueprinting the path for customers, demonstrating how their small actions and choices can impact climate change.

ESG: the heart of your value proposition

The insights we’ve shared in this article only scratch the surface of the marketing potential within the ESG realm.

There have been disruptive opportunities to disrupt the ESG + product journey in every sector we have looked at – from finance to healthcare, retail, pharmaceuticals and logistics.

Yet despite this, there remains a stark contrast between consumer expectations and business realities.

Modern consumers expect transparency about where products come from, how they’re made, and their environmental impact. And they are voting with their wallets.

This presents a golden opportunity for forward-thinking businesses. Integrating ESG into your value proposition isn’t just a strategic imperative — it’s the blueprint for aligning your brand with purpose and cutting through consumer consciousness.

Seize the ESG opportunity today

We’re here to help if you’re looking to navigate the ESG journey.

We offer data-driven solutions, tailored strategies, and an intimate understanding of consumer intent to help you take the first steps toward a future of sustainable success.