How can Rivian Build Trust Through Sustainability?
Electric vehicle maker Rivian made quite a splash with its initial public offering on November 10. In one day, Rivian became worth more than Ford and General Motors. This is an impressive feat for a company that has not delivered a single vehicle yet. Now comes the hard part: satisfying its many stakeholders, including investors, employees, and both Amazon and Ford, which have financially backed the company.
Rivian Roars out of the Gate
Founded in 2009, Rivian is an American electric vehicle (EV) company and rival to Tesla, the darling of the EV industry. Rivian catapulted to prominence in 2019 when one of its major stakeholders, Amazon, said it had ordered 100,000 Rivian vehicles as part of Amazon’s commitment to convert its delivery fleet to 100 percent renewable energy by 2030. After that, the success of rival Tesla created a halo effect for Rivian by attracting more investor interest in the EV industry. In addition, legislation proposed by President Joe Biden in 2021 stoked investor interest. Those factors contributed to an IPO that resulted in Rivian becoming the World’s Number Three carmaker in just days.
That initial success has also invited scrutiny. Analysts have warned that the unprofitable company will face a very difficult road ahead actually delivering on expectations by producing enough vehicles to challenge Tesla’s dominance. Tesla CEO Elon Musk was happy to cast shade on Rivian. He tweeted, “There have been hundreds of automotive startups, both electric and combustion, but Tesla is [the] only American carmaker to reach high volume production & positive cash flow in past 100 years.”
Right now, investors are betting as much on the EV industry as they are investing in Rivian. Eventually, the company will need to create a narrative all its own. And Rivian’s website will be crucial to doing that.
Tips for Rivian to Create Its Narrative
The most powerful way Rivian can build a narrative is to focus on sustainability. Rivian’s success is tied to a renewed commitment to sustainability that has been building for years around the world. For example, on January 26, investment company BlackRock warned that the companies it invests in need to show how they will be able to survive in a world aiming for net-zero carbon emissions by mid-century. Investis Digital and the National Investor Relations Institute (NIRI) recently conducted a survey of communications executives to understand their priorities for 2021, and sustainability was easily one of the Top Three.
And yet, our own research shows that only 29 percent of companies explain their sustainability strategy overall. Rivian can stand apart by doing this. Its website claims that “Whether it’s taking families on new adventures or helping fleets electrify at scale, our vehicles all share a common goal — preserving the natural world for generations to come.” Even better, its website discusses the actions that Rivian is taking to make the world more sustainable. For instance, the company says that it has established a foundation known as Forever. Its philanthropic mission is dedicated to addressing Earth’s climate crisis and preserving the critical biodiversity needed for the planet’s long-term survival. Rivian says it is putting 1 percent of Rivian’s equity into Forever.
Demonstrating actions is crucial. Time and again, consumers have said they expect brands to do more (not just say more) to protect the planet.
Rivian can do more, though, by:
- Articulating and quantifying its sustainability strategy as Amazon has done.
- Telling more stories and sharing more examples of its sustainability investments on its blog.
- Amplifying its commitment to sustainability on its investor section, as investors increasingly make sustainability an important requirement.
- Speaking more through the voice of its people, starting with CEO R.J. Scaringe. He has spoken about Rivian’s commitment to sustainability in news media interviews – but his voice needs to speak louder on the company’s website. A company’s people are its most credible brand ambassadors. Rivian can do much more to empower them to speak out on its site.
On its site, the company says, “We are focused on accurately accounting for the comprehensive impact of our business through transparent Environmental, Social and Governance reporting, which we will release in early 2022. In 2023, after our first full calendar year of production, we will publish our first impact report.” Early 2022 will be an important time for Rivian to hold itself accountable.
Rivian has created excitement and enormous wealth. The company’s next opportunity: building trust. Corporate social responsibility is one of the four principal foundations of building corporate trust, along with reputation management, recruitment, and amplifying content through reach. As discussed in our report Building Trust through the 4Rs, only 38 percent of people believe businesses are doing well or very well at putting people before profits. Companies that master corporate social responsibility are creating a competitive advantage that will cement emotional trust with all their stakeholders from investors to job seekers. But to build that trust, brands need to show what they are doing to make the world better. This is where Rivian can shine.
Contact Investis Digital
Investis Digital helps businesses build trust with all their audiences through an approach known as Connected Content, in which we align all aspects of a brand’s narrative with its values and culture. To learn more, contact us.