In today’s business world, Environmental, Social, and Governance (ESG) considerations are more than just a buzzword – they have become an essential part of corporate strategy. However, the real challenge for many organisations is effectively integrating ESG principles into their core business operations. In a recent podcast, sustainability expert Julia Hoy, Associate Partner and Sustainability Communications Lead at Sefiani, and Michael Gonzalez, Head of Corporate Strategy at Clarity Global, provided compelling insights into the pivotal role that communication plays in aligning ESG with corporate strategy.

Julia and Michael’s conversation underscored the importance of using communication not merely as a tool for broadcasting ESG initiatives, but as the lubricant that “oils the machine” of integration, ensuring that these initiatives become an intrinsic part of the company’s broader business objectives. By focusing on material issues, fostering transparency, and building trust with stakeholders, they argue that companies can successfully navigate the complexities of ESG integration and avoid common pitfalls like greenwashing.

The Power of Purpose-Driven Communication

Reflecting on her career, Julia highlighted how early experiences shaped her passion for sustainability and communication. She recalled working with Unilever during the launch of their Sustainable Living Plan, a time when sustainability was becoming embedded in the corporate landscape. For Julia, this was a pivotal moment that solidified her belief in purpose-driven communication. “I was always drawn to companies or projects where there was purpose, where there was some kind of impact or an idea of business using their power to do something good and worthwhile,” she said .

This perspective laid the foundation for Julia’s approach to sustainability communications. She stressed that to truly integrate ESG into corporate strategy, businesses must move beyond the traditional marketing mindset of “pushing things to people they don’t really need” . Instead, they must adopt a more holistic, strategic approach, ensuring that sustainability is not just a separate initiative but a core part of the company’s DNA.

“Sustainability needs to be ingrained within the strategy. You can’t have it as an add-on because then it becomes the first thing to get cut when times get tough,”

she noted .

From CSR to ESG: The Evolution of Corporate Strategy

Both Julia and Michael agreed that the role of communication in sustainability has evolved significantly over the years. As Julia pointed out, what was once considered corporate social responsibility (CSR) has transformed into a more robust and integrated ESG framework. “CSR has been dead since 2010,” Julia quipped, explaining how the language and focus of sustainability have shifted. In today’s context, companies are not merely doing good for the sake of it—they are embedding sustainability into their core operations to drive long-term value .

For Michael, this shift is critical. Having worked across various sectors and regions, from Europe to the Caribbean, he emphasised that communication is now more complex and multifaceted than ever before.

“You can’t do corporate communications without considering sustainability, public affairs, policy, and regulation,”

Michael explained . He believes that the businesses that succeed are those that take a holistic approach, viewing ESG as a key driver of corporate strategy, rather than a separate function. “Everything is interconnected,” he added, noting that ESG considerations touch on every aspect of a company’s operations, from stakeholder engagement to risk management .

The Communication Challenge: Avoiding Greenwashing

One of the central themes of the conversation was the challenge of greenwashing—when companies make exaggerated or misleading claims about their environmental or social efforts. Both Julia and Michael stressed the importance of transparency and authenticity in ESG communications. “It’s not just about what you’re doing, but how you’re communicating it,” Michael said . He pointed out that in today’s hyper-connected world, where stakeholders demand more accountability than ever, businesses can no longer afford to be vague or misleading about their sustainability efforts.

Julia echoed this sentiment, noting that effective communication is about striking the right balance between ambition and realism. “We really want to be a partner with these organisations and make sure that we are clear that we’re not going to support any level of greenwashing,” she explained . To avoid greenwashing, she advocates for honest, data-driven communication that reflects both the successes and challenges of sustainability initiatives.

“Progress, not perfection, should be the goal,”

she said, highlighting that companies need to focus on incremental, measurable improvements rather than making sweeping, unattainable claims .

Building Trust Through Transparency

Transparency emerged as a key theme in the conversation, with both Julia and Michael agreeing that it is essential for building trust with stakeholders. Julia recounted a project she worked on with a global trucking company, where regulatory challenges initially prevented the deployment of electric vehicles in Australia. Through strategic advocacy and clear communication, the company was able to influence policy changes across multiple states, allowing the trucks to finally hit the road. “It was about aligning the company’s sustainability goals with its broader business objectives,” Julia explained . This case study highlights how transparency and consistent communication can lead to tangible results, both in terms of regulatory change and stakeholder engagement.

Michael added that transparency is especially important in today’s media landscape, where misinformation can quickly spread. “The whole concept of honesty and transparency has been tested because you can’t get away with anything anymore,” he said . For businesses, this means that ESG communications need to be backed up by solid data and evidence, ensuring that claims are verifiable and trustworthy.

“If you have to explain your message, it’s not right,”

Michael emphasised .

Prioritising Material ESG Issues

One of the key takeaways from the discussion was the importance of prioritising material ESG issues—those that are most relevant to a company’s industry, stakeholders, and long-term success. Julia and Michael cautioned against trying to address every ESG issue under the sun, as this can dilute a company’s impact and make it harder to communicate clear, focused messages. “Pick the areas where you can make a real difference, both for your business and for society,” Julia advised .

For example, when working with a large FMCG company, Julia helped the brand identify specific sustainability goals that aligned with its broader business strategy. By focusing on areas where the company could have the most significant impact, such as circularity and sustainable packaging, they were able to create campaigns that resonated with both consumers and regulators. “You need to understand what good looks like without drinking the Kool-Aid,” she said, underscoring the need for realistic, achievable targets .

Communication as the Catalyst for Change

Ultimately, both Julia and Michael see communication as the key to driving meaningful change in the ESG space. Whether it’s engaging with regulators, building partnerships, or communicating with consumers, they believe that clear, consistent messaging is the foundation for success.

“Effective communication is what oils the machine and keeps it moving forward,”

Julia said .

Michael agreed, adding that in a world where companies are increasingly scrutinised for their ESG efforts, those that communicate their values authentically and transparently will be the ones that stand out. “The principles of good communication are the same wherever you go,” he noted, emphasising the importance of simplicity and clarity in messaging .

As businesses continue to navigate the complexities of ESG integration, the insights shared by Julia and Michael serve as a valuable reminder: communication is not just a tool for sharing information—it is the driving force that aligns corporate strategy with sustainability goals, builds trust with stakeholders, and ultimately, powers meaningful, long-term change.