While the evolution of corporate communications has been ongoing, the onset of ESG (Environmental, Social, and Governance), the associated compliance requirements, and stakeholder interest have accelerated various aspects of change and redefined what Corporate Communications is today and what it will be tomorrow.
So, at the crux of it, what has driven this change?
ESG has compelled communication to become more authentic, aligning corporate narratives with the evolving expectations of stakeholders, particularly regarding sustainability, social responsibility, and transparency in governance.
This is usually done by anchoring your messaging around a singular purpose. In the world of ESG, a purpose is essential to any robust strategy. Without it, companies risk falling into the traps of greenwashing or “greenwishing”—the act of making empty promises or wishful claims. No modern corporate communication strategy can build a successful brand or enhance customer retention without weaving purpose into its narrative. As a result, businesses are increasingly integrating their ESG initiatives into core messaging. This marks a shift from profit-driven communication to purpose-led narratives, where companies emphasise their societal contributions, environmental responsibilities, and commitment to ethical governance.
Organisations now speak more openly about their efforts in areas like ethical practices, diversity, and climate action, reflecting a shift in priorities and messaging. In addition, centering your communications around transparency and authenticity is crucial. Driven by greater scrutiny from investors, regulators, and consumers, it demands that companies disclose their ESG efforts clearly and truthfully. However, authenticity goes beyond merely highlighting successes; it also involves discussing failures and challenges. Companies that offer detailed and transparent data on their environmental impact, diversity metrics, supply chain sustainability, and governance practices tend to secure stronger stakeholder support. Such openness results in higher credibility, greater trust and a stronger reputation.
The rapid adoption of ESG frameworks, standards, and indices is another driver that highlights how ESG has redefined corporate communications. Investor and customer demands have significantly driven this change, with both groups eager to see companies deliver strong financial performance while creating a positive social and environmental impact. A recent study by the Morgan Stanley Institute for Sustainable Investing found that 77% of individual investors globally are interested in companies or funds that aim to achieve market-rate returns while considering positive social and environmental outcomes.
Therefore, it is crucial to recognise that the stakeholders pushing for ESG adoption are the ones companies win over. This dynamic has naturally positioned corporate communicators at the forefront of ESG mandates and corporate communications. This aligns well with the industry, as ESG is inherently strategic. To truly unlock its potential while mitigating associated risks, ESG must be integrated seamlessly into the business’s core operations.
This coincides with the evolution of corporate communications from a traditionally supportive function to one of strategic influence, where communicators now shape key business strategies, influence decision-making, and craft narratives that resonate deeply with both internal and external stakeholders. ESG has also become a central theme in boardroom discussions and annual general meetings (AGMs); hence, it is unsurprising to see communication teams playing a critical role. The increased time spent in direct counsel with CEOs signals a deeper integration of communications expertise into the highest levels of corporate decision-making.
I believe these ESG-related factors have driven the redefinition of corporate communications, but this shift feels more like a natural transition. Many of the drivers behind it are not entirely new; instead, they signal a return to the roots of what corporate communications is—focused on trust, authenticity, purpose, and transparency. What is different now is the growing influence of communicators within organisations and boardrooms, where they are seizing the opportunity to shape not just the narrative but also key business strategies in an ESG-driven world.
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