ESG: Why Simple Terms Matter

ESG can be baffling. Using clear terms like ‘climate impact’ to describe your ESG strategy helps your customers understand your goals, making them more likely to support your company.

Environmental, Social, and Governance, or ESG, can feel daunting, but it doesn't have to be. The concept is quite simple–it refers to a set of blended values that include non-financial factors in corporate decision making that enhances a company’s long-term success.

Yet, in today’s polarized climate, ESG is often portrayed as something it's not: putting values ahead of profit.

A growing number of consumers are demanding that companies that they purchase products and services from have ESG strategies. They’re asking hard questions about a company's environmental impact, societal value, and ethical business practices.

With so many considerations, it can be challenging for consumers to identify which ESG-focused companies are truly worth supporting, so it's important to understand which ESG practices have the greatest appeal.

When it comes to ESG, a key success factor is to keep messaging simple and specific. It’s important to clearly communicate what your ESG strategy aims to accomplish. Simply labeling your company as ESG-focused doesn’t inform consumers about your strategy or long-term plan. Consumers expect transparency, claims backed by science, and third-party verification.

Cue your ESG report. This is the place for an in-depth review of your annual ESG progress. And while the information should be comprehensive, the message should be simple and exact to describe what your company is doing to advance its ESG initiatives. Follow well-established, reputable ESG frameworks to provide consumers with consistent and easily accessible information.

ESG Example: Trane Technologies

Consider Trane Technologies’ ESG report as an example. The report avoids unnecessary adjectives or embellishments, focusing instead on concrete details supported by globally recognized metrics. When appropriate, they utilize infographics to concisely present their annual ESG progress, providing consumers with clear data and straightforward language.

Trane’s approach highlights a commitment to transparency, offering clear and actionable insights without relying on vague or inflated language. Consumers often respond well to this level of transparency and specificity.

By being transparent and using clear language, you help consumers better understand your ESG strategy, making them more likely to spend their hard-earned dollars with your company.

Thrive Home Builders, Colorado’s leading new home builder, also sets a strong standard for ESG communication by embracing transparency and authentic messaging. In 2022, Thrive launched its inaugural report, putting the company on the cutting-edge of what can be considered a lagging industry.

As COO Bill Rectanus explains, “At Thrive Home Builders we have always been passionate about our product, our people, and our community. From our open book management principles to our leadership in energy efficiency, health and carbon neutrality, these things have been etched into our corporate DNA. Developing our first ESG report gave us the means to showcase that DNA in a comprehensive, transparent, and accepted format.”

This commitment to effective communication highlights an essential truth: how you communicate your ESG strategy is just as important, if not more important, than the strategy itself. To enhance your messaging, prioritize transparency and avoid vague terms like ‘sustainability’, along with other communication tips captured in our ESG for Building Defining Principles.

Sustainability, Your Way: A Flexible Approach to ESG Success

The ESG for Building Defining Principles is a free guide that companies in the building industry can use to craft or augment ESG strategies.  The Principles are broken into eight easy-to-digest chapters, covering everything from the 'why' of ESG, to key E, S, and G metrics (your new favorite KPIs), to how to speak ESG in a way that actually connects with your audience.

The document is flexible, so you can choose which elements matter most to you, your company, and your stakeholders. It’s designed not as a one-size-fits-all, but as a "pick your own adventure" resource. The ESG for Building Working Group created this guidance document to be adaptable to the needs of building professionals while highlighting the most material ESG metrics for the industry.

If you get stuck along the way or need additional guidance, the experts at Green Builder Media are here to help. We offer consulting services to support your ESG journey, enhance your existing sustainability initiatives, or help you achieve carbon neutrality through carbon offsets.

Curious about the ESG for Building Defining Principles? Check it out here.

Looking for expert guidance? Explore our consulting services here.