Communication and sustainability: keys to enhancing a company's reputation

One of the issues of greatest concern to Latin American consumers is climate change. This was revealed by the study Consumer Life from Grow from Knowledge (GfK). 82% consider the planet's temperature increase as an extremely serious or very serious problem; and expect sustainable products to meet the most basic expectations, such as fair price and functionality. In Peru, 59% of consumers say that if companies do not act now to combat climate change, they are failing their employees and customers, according to Ipsos. 

So how can companies respond to an increasingly informed and demanding public and thereby enhance their reputation? 

First, it is important that sustainability is at the heart of the business strategy, and communication must support this strategy by involving all members of the organization in a collaborative and cross-cutting manner. In the business model of the future, sustainability and the management of ESG criteria (environmental, social and governance) are indispensable intangible assets, related to the 86% of a good reputation, according to the RepTrak platform. A high score on these criteria promotes a willingness to buy from 60% to 67% while a low score reduces the likelihood of purchase from 10% to 20%, highlights the Global RepTrak 100 report. 

Second, it is essential to communicate with total transparency. Talking about our excellent actions is not enough if they are not accompanied by concrete, measurable and quantifiable facts. Communicating the sustainability strategy implies expressing in a precise and realistic manner the materiality for the business, and the specific objectives of the actions, establishing a defined time horizon that facilitates evaluation and progress in the medium and long term. If we do not communicate in a transparent manner we can fall into the trap of greenwashing, that is, “communicating in a misleading way to show an illusory image of a sustainable company that does not correspond to reality”, according to the guide “Communicating Sustainability and its Impact on Reputation” (Women Action Sustainability and Corporate Excellence, 2023). The guide also provides some recommendations to avoid falling into this bad practice, including being consistent, responsible and having a 360-degree communication strategy.

Finally, it is important to communicate with purpose to raise optimism and also ambition, to demonstrate that companies develop products and services in line with the requirements of the world and, above all, in line with the protection and conservation required by the planet. Doing so generates profitability and above all the loyalty of consumers concerned about sustainability.