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ESG and Sustainability

ESG VS. CSR: How Should Your Brand Approach Showcasing Accountable Values

July 22, 2021 | by Arend Kooij
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There are several key differences between Environmental, Social, and Governance (ESG) and Corporate Social Responsibility (CSR). Click here to learn more.

It is more crucial than ever for companies to be thinking about how they can improve the world around them. These days, consumers, investors, and other important groups expect to see a certain level of accountability and action from the brands they engage with, and often check to see if a brand’s values align with their own. This is especially true when it comes to a company’s ESG and CSR efforts but often these terms are used interchangeably or even misunderstood. Here are some of the differences between them and what brands should be thinking about when it comes to these areas of business.

What is ESG  

ESG stands for Environmental, Social, and Governance. These criteria are used to evaluate the operations of businesses in order to determine whether they are socially aware.  

Under the environmental dimension, key issues include, but aren’t limited to: 

  • Contribution to the fight against climate change 
  • A company’s utilization of "natural capital" (such as biodiversity and raw materials sourcing)  
  • Pollution and waste management 
  • Highlights of where the company uses green technologies and renewable energy 

Under the social dimensions, key issues include, but aren’t limited to: 

  • Health, safety, and human capital development 
  • Product and consumer safety 
  • Community relations work 
  • Socially cognizant opportunities the company creates  

Under the governance dimension, key issues include, but aren’t limited to: 

  • Corporate governance fairness and accountability 
  • Transparency and ethics considerations 

It is important to note that an audiences' willingness to engage with the company can be heavily influenced by the company's ESG efforts (or lack thereof). 

What is CSR  

CSR stands for corporate social responsibility. This model is one that companies can follow so they can be socially accountable to themselves, their stakeholders and their audiences. It allows companies to be conscious of their impact on the world and society, including thinking about how they affect the economy, the environment, and social interactions and equalities.  

Companies that engage in CSR are fighting against possible negative contributions and focusing on enhancing the world. However, overall, ESG criterion are more specific and actionable than CSR initiatives. 

What Is The Difference Between ESG and CSR?  

In effect, CSR was the precursor to ESG. But while CSR thinks about accountability, ESG methodology makes its efforts measurable. This ability to quantify ESG efforts and present them in ways that are meaningful and understandable across industries makes ESG the most relevant options for brands today.  

Search volume research that we conducted corroborates this idea and highlights what the public is looking for.  

ESG vs CSR: 

ESG - 74,000 MSV 

CSR - 40,500 MSV 

Users are searching for ESG almost twice as much as they are for CSR, revealing where interests lie. The smart business will highlight both ideas but focus on enacting and showcasing their ESG agenda.  

3 Ways To Integrate ESG Into Your Site: 

The Forum for Sustainable and Responsible Investment shares that “in 2020, more than $17 trillion of professionally managed assets were held in sustainable assets – around one-third of all assets under management.” More than ever, socially conscious investors are looking at a company’s ESG work to determine if it is worthy of support. 

Here are some ways to ensure your site is capturing the important ESG work you are doing! 

1) Create an “ESG” tab (or use a common alternative like “Responsibility”, “Sustainability”, or “CSR”) in a prominent place on your navigation. Title this to maximize its impact with your audiences and note that certain industries may lean towards a certain naming convention. If you have any reports, articles, or information on other places of the site, they should all be linked into this one source of truth.  

2) Make sure the information your site reflects what rating agencies leverage when providing an ESG score. This includes a discussion of what a brand is doing for the environment, how they are protecting the environment, and their perspectives on corporate governance.  
 
3) Make it engaging and digestible!  

This means using varied types of media to keep readers interested. Interactive infographics, videos, charts, and tables can be useful to convey content ranging from Materiality Matrixes to KPIs. 

In addition, content should be broken into bitesize blocks. Studies have shown that web readers will take away much more from shorter, succinct content blocks than novel-length ones. Group and organize related content into easily identified and intuitive sections. 

IDX’s Perspective 

The ESG investing movement is part of a greater movement surrounding building trust with consumers, investors, and employees. We discuss this shift and methods brands can use to build trust and relevancy in our Building Trust through the 4Rs report. This report offers companies a blueprint to build trust by connecting with job seekers, investors, and consumers on their core values. 

Contact Us 

To hear more about how we can help you promote your values and highlight your work when it comes to ESG and other important aspects of being a trusted business today, get in touch!