Episode 38 | 25.09.2024

From Compliance to Storytelling: Simplifying ESG for Real Impact

In this episode, we sit down with Steve John, a seasoned ESG and Corporate Social Responsibility leader, currently serving as ESG Manager at newcleo. Steve shares his insights on the evolving role of ESG in industries like oil, gas, and nuclear, emphasising the balance between idealism and pragmatism. He discusses the importance of simplifying ESG communication and how businesses can move from just meeting regulations to driving real impact.

Listen to the full podcast episode on YouTube, Spotify, and Apple Podcasts.

In today’s corporate world, the focus on Environmental, Social, and Governance (ESG) principles has become increasingly significant, shaping strategies in industries from finance to heavy industry. But as the ESG movement grows, so does the complexity of its communication and implementation. Steve John, a seasoned ESG and Corporate Social Responsibility (CSR) leader with over 20 years of experience in industries such as oil, gas, nuclear, and mining, offers a unique perspective on how to strike the perfect balance between idealism and pragmatism in the ESG space.

Currently serving as ESG Manager at newcleo, an innovative nuclear energy company, Steve has worked in various sectors where ESG isn’t always an easy fit. His experience spans the globe, with projects in diverse locations including the Kurdistan region of Iraq and the Indian Himalayas. In a recent podcast episode, Steve shared his insights into the evolving role of ESG, highlighting the importance of clear communication, practical strategies, and maintaining a moral compass in corporate sustainability.

 

From Ecology to ESG

Steve’s journey into the world of ESG began in a somewhat unexpected way. After studying ecology at university, he admits, “I wasn’t really sure what to do with my life” . His thesis focused on oil pollution in the Shetland Isles, a project he describes as a “desk-based study” that laid the groundwork for his interest in corporate responsibility.

“What companies say versus what they do has always intrigued me,”

he explains, noting how this early fascination with accountability became a central theme throughout his career .

After university, Steve joined a small environmental consultancy, producing environmental reports for clients in the financial services and water industries. It was here that his path began to take shape, as his firm transitioned from an environmental consultancy to a CSR consultancy. Reflecting on this pivotal moment, he recalls how the decision to rebrand the company as a CSR consultancy took just “30 seconds” but marked a major shift in his career .

This move into the world of CSR led Steve to work closely with sustainability analysts and socially responsible investment teams, who examined sustainability through a financial lens. This experience was formative, as he realised the power of combining environmental and social principles with corporate and financial strategies. As Steve puts it, “There was something about it that sparked my fire” .

 

Pragmatism in ESG: Simplifying Communication

One of the key themes Steve emphasises throughout the podcast is the need for pragmatism in ESG, especially when it comes to communication. ESG, as a concept, can be complex, and many companies struggle to balance the technical jargon of environmental data with the need to inspire action.

“There’s a tendency to use complicated language,”

Steve notes. He argues that while idealism is important for driving innovation and passion, clarity and simplicity are equally essential to ensure everyone in an organisation understands and embraces ESG principles .

Steve stresses that pragmatic communication is crucial for making ESG accessible, particularly in industries like oil, gas, and nuclear, where the technical aspects can easily overwhelm non-experts. “We need passionate idealists to drive the vision, but we also need practical communicators to make ESG accessible and relatable to everyone—from board members to field workers,” he explains .

This focus on clear communication is something Steve takes seriously in his current role at newcleo. As a growing company in a complex sector, newcleo faces significant challenges in aligning its nuclear energy goals with sustainability principles. However, Steve is determined to ensure that the company’s ESG message remains clear and concise. “We’re still building our culture as we grow, and ESG is going to play a big part in that culture development,” he says .

 

From Compliance to Storytelling

Another aspect of ESG that Steve highlights is the tension between compliance and impact. Many companies see ESG primarily as a compliance exercise, focused on ticking boxes and meeting regulatory requirements. However, Steve believes that this approach misses the bigger picture. “There’s always a need for compliance,” he acknowledges, but adds that

“the real challenge is in moving beyond compliance and using storytelling to engage people” .

According to Steve, storytelling plays a critical role in ESG, particularly when it comes to inspiring change within organisations. He argues that data and reporting are essential, but they must be complemented by narratives that bring the numbers to life. By framing ESG goals in a way that resonates with people on a personal level, companies can drive deeper engagement and foster a sense of purpose among employees and stakeholders.

Steve’s own career is a testament to the power of storytelling. Whether he’s working on the ground in remote locations or presenting at the boardroom level, he has always prioritised communication that connects with people. “It’s about making better choices,” he says, “whether it’s about how you travel to work or what suppliers you choose to partner with” . For Steve, this focus on everyday decisions is key to making ESG an integral part of a company’s culture, rather than just another regulatory burden.

 

Plugging Into Simplicity

During the conversation, Charlie, the host and co-founder of The Anti-Greenwash Charter, brings up the issue of greenwashing and the difficulty many companies face in making genuine, transparent claims about their sustainability efforts. As ESG becomes more embedded in corporate strategy, the risk of vague or exaggerated environmental claims increases, which can lead to confusion among stakeholders and, ultimately, mistrust.

Steve agrees with this challenge, noting that, “There’s a tendency to use complicated language,” which makes it harder for companies to convey their environmental impact clearly . He emphasises the importance of simplicity in ESG communication, and how essential it is for organisations to define their terms and avoid greenwashing.

This is where The Anti-Greenwash Charter comes in. Developed as a response to the growing concerns around misleading environmental claims, the charter offers a framework to ensure that companies provide clear, transparent, and verifiable information about their sustainability practices. As Charlie explains,

The Charter encourages companies to define key environmental terms and avoid misleading language, ensuring that their green claims are backed up with real evidence.”

Steve fully supports this approach, seeing it as an essential tool for ensuring ESG communication is both clear and credible. “It’s about making ESG language simple and relatable,” he says. “When companies define their terms and provide third-party verification for their claims, it becomes easier for stakeholders—whether employees, customers, or regulators—to understand exactly what they’re saying and trust that the claims are genuine” .

 

ESG in Heavy Industry: A Unique Perspective

One of the most unique aspects of Steve’s career is his extensive experience in industries that are often viewed as ESG laggards, such as oil, gas, and nuclear. However, Steve sees these sectors as crucial players in the sustainability movement.

“There’s a misconception that industries like oil and gas can’t contribute to ESG goals,”

he says, “but what I’ve learned is that some of the best innovations in decarbonisation come from these sectors. It’s all about working with what exists rather than fighting against it” .

Steve’s pragmatic approach has led him to work closely with engineers and technical teams, ensuring that ESG principles are not just theoretical but are embedded in the day-to-day operations of these industries. “I’ve had more success in heavy industry than in any other sector,” he reflects, noting that the practical nature of these industries lends itself well to the kind of hands-on, results-driven approach that ESG requires .

His current work at newcleo, which focuses on developing small modular reactors and recycling nuclear fuel, is a perfect example of how heavy industry can lead the way in sustainable innovation. “We’re a young company, but our mission is clear: to innovate the nuclear industry and play a key role in climate change mitigation,” Steve explains. For him, nuclear energy represents a critical piece of the puzzle when it comes to decarbonisation, and he is excited to be at the forefront of this transformation .

 

The Moral Imperative of ESG

Beyond the technical and strategic aspects of ESG, Steve also touches on the moral dimensions of his work. “At the end of the day, it’s about doing the right thing,” he says. While ESG is often framed in terms of risk management and compliance, Steve believes that there is a deeper ethical responsibility that underpins the entire movement .

This sense of moral purpose has been a guiding force throughout Steve’s career, from his early days in environmental consultancy to his current role at newcleo. Whether he’s working on community engagement projects in Kurdistan or helping to shape the ESG strategy of a nuclear start-up, Steve is driven by a desire to make a positive impact on the world. “I want to be able to look back at my career and point to tangible examples of where I’ve made a difference,” he says .

 

Conclusion

Steve John’s insights into the evolving world of ESG offer a refreshing perspective on how to balance idealism with pragmatism. His emphasis on clear communication, practical strategies, and the power of storytelling provides valuable lessons for anyone looking to navigate the complexities of ESG in today’s business world. As he continues to lead the ESG charge at newcleo, Steve’s unique blend of experience, passion, and pragmatism is helping to shape the future of responsible investment and sustainable business practices.

For Steve, the key to ESG success lies in making better choices—whether it’s simplifying the language of sustainability, leveraging innovations in heavy industry, or maintaining a moral compass in corporate decision-making. As he puts it,

“ESG is ultimately about doing the right thing, even when it’s difficult”.

And in a world where businesses are increasingly held accountable for their environmental and social impact, that simple philosophy may be more important than ever.

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© 2024. The Responsible Edge Podcast