Separating the E, S, and G

Recent years have seen an increased emphasis on the need for companies and organizations to focus on the environmental, social, and governance impacts of their work. Various stakeholders—from regulators to shareholders to customers—are demanding that companies think, act, and report on their “ESG” initiatives. 

Despite widespread approval of ESG and a collective understanding of the need to prioritize these types of concerns, the term has begun to face certain pressure—particularly in heavily polarized political regions. 

In some jurisdictions, ESG and all it denotes has become an unfavorable term, associated with a perceived progressive agenda – it has even been labelled “woke” in some contexts. The leading letter—the “E” in ESG—heightens this politicization, particularly as those behind different ideologies debate the importance of addressing climate action and environmental issues.

This movement has even spawned the term “greenhushing,” where service providers actively play down their sustainability credentials for fear of marginalizing potential buying targets.

In October 2023, KPMG’s Global Head of ESG, John McCalla-Leacy, wrote about “the pressures leaders are facing to tackle a growing politicization of the [ESG] topic.” As McCalla-Leacy notes, however, that pressure has not reduced the need to continue enacting ESG initiatives. “CEOs are recognizing that shifting political landscapes leave a gap that companies should be filling,” he says. “65 percent of leaders told [KPMG] they understand CEOs have a role to play filling the void of societal changes that can be created during times of political unease.”

One way companies can tackle growing political headwinds may be to differentiate among the different elements that compose the ESG acronym. As organizations continue to explore and achieve goals across each category, they will need to meet a growing number of global reporting standards in multiple languages.

RWS is the partner clients need to ensure effective communication of their priorities, progress, and ambitions across the full range of ESG pursuits.

“E” related priorities are well-known, and well-documented, with well-established frameworks that continue to evolve as time passes. As we’ve previously noted, the UN has developed 17 global sustainability goals designed to create a more equitable, more sustainable planet by 2030. Companies that conduct business in the EU are mandated to follow and report on some of these goals—which include initiatives such as clean water and sanitation, affordable and clean energy, climate action, and others—and other regions around the world are following suit.

Increased regulatory oversight of “E” initiatives comes with an increased need for multilingual content that precisely communicates companies’ goals, achievements, and compliance with regulations—and that content can be complex and technical, with short deadlines and immense pressure. The RWS regulatory team has the skill, experience, and process needed to produce accurate, compliant translations for all sustainability reporting and communications.

“S” related priorities aim to improve equity, access, and treatment of all people touched by an organization, from suppliers through to end customers. These priorities include addressing supply chain issues (e.g., ensuring humane working conditions and living wages in factories), pay equity, gender and racial diversity at the corporate and board level, and responsible use of AI (the subject this year of specific EU regulation through the passing of the AI Act, the first such legal framework globally).

Companies committed to advancing social priorities need to be particularly cognizant about the vendors with whom they partner. RWS not only helps businesses articulate their commitments to social initiatives—it’s also an outstanding partner to these organizations. RWS employs a diverse collection of translators, technologists and project managers worldwide and empowers employees in the most remote corners of the globe with rewarding positions. What’s more, the responsible use of AI, such as our industry-leading machine translation technology Language Weaver, is constantly at the forefront of our work with clients. Indeed, we live and breathe ESG ourselves through stringent application of practices to achieve our own goals in this area.

“G” priorities relate to the ways in which businesses operate. They include accounting and tax practices, affiliations with political groups, and the preparedness of corporations to pivot in the face of unexpected social, economic or geopolitical incidents such as pandemics, macroeconomic crises and military conflicts.

These types of initiatives require strategic, proactive, fast-paced communications to various stakeholders across various languages. RWS can serve as an exceptional partner in ensuring on-tone, on-target governance messaging for global companies.

ESG is a broad term—much broader than some of its critics might imagine. In a modern organization, ESG touches various parts of the business and requires careful, quick communication—often in multiple languages – delivered with the utmost precision.

Regardless of the content of those communications—whether they’re addressing carbon emissions or board appointments—RWS can help. We work with clients conducting work and making progress across the full ESG spectrum, and we help them effectively communicate their plans, challenges, and successes to all constituencies. 

Ready to learn how we can help your company stay on top of your ESG communications? Reach out to our team today.