There was once a myth that sustainable investing diminished financial returns. However, as that myth has been debunked, sustainable investing thought leadership has surged to prominence.
But what exactly is sustainable investing thought leadership, and more importantly, what value does it offer to executives and the companies they lead?
In this article, we explore these questions in detail, explaining why sustainable investing thought leadership is something most companies should seriously consider.
Sustainable investing is all about committing to an investment strategy that acts in the best interests of the environment, society, and ethical right-doing.
This might involve a company purchasing more eco-friendly materials or an investment firm buying businesses that have a positive social or environmental impact.
Sustainable investing thought leadership, meanwhile, builds on this promise when an executive uses social media, events, blogs, multimedia, and media coverage, to promote their company's sustainability-related practices and expertise.
Over time, the company can improve its credibility, while audiences benefit from its industry guidance.
In the past, firms could get away with operating behind closed doors with little consequence.
Today, sustainable finance regulations require fund managers, advisers, and intermediaries to regularly disclose how they integrate ESG into their investment decisions, risk management, and product design.
In fact, because of this, 90% of the S&P 500 regularly release ESG reports.
Sustainable investing thought leadership not only helps companies meet these requirements but allows them to consistently show transparency, avoid scrutiny, and even influence regulatory debates.
The companies that commit to sustainable investing thought leadership essentially build a better brand.
You can avoid being pigeonholed as a business that exists solely to make a profit and have much better relationships with all of your stakeholders.
The most environmentally conscious employees prefer to join companies that make a real difference in the world, while research shows that 70% of individual investors believe companies with sustainable practices lead to higher returns.
Hence, the better you can promote your investment decisions, the greater you can outperform your competition while influencing others to better the planet
The best executive to represent a company depends on the type of business, its size, and the objectives of their thought leadership campaign.
A Chief Investment Officer typically oversees a company’s investment strategy, giving them credibility to speak about how sustainability drives long-term value creation.
A Head of ESG within a large corporate is specifically hired as an expert to transform investment decisions through new frameworks and by eliminating ESG risks.
CEOs have the most authority over a company’s strategic direction and vision, which gives them unique ESG insights from the top level.
Chief Marketing Officers can discuss how they have built their company’s brand to be more socially and environmentally responsible to boost sales.
Portfolio Managers can provide real-world examples of companies they have helped to grow successfully through their ESG policies.
While knowledge and authority are key, without the right personality and willingness to be seen and heard, the reception a thought leader has can vary wildly.
To resonate well with audiences, it's crucial to undergo media training with a specialist who can help you strategise your campaign and perfect your messaging.
Different channels are good for different things.
High-quality media coverage improves credibility.
In-person events allow others to put a face to a name and build lasting relationships.
Social media is a good way to reach a large audience and regularly respond to feedback.
Blogs are the best way to share regular company updates and new thought leadership.
Videos offer much more engaging content that can differentiate you from others.
Since ESG is constantly evolving, thought leaders must prioritise all platforms to stay relevant.
Choosing a sustainable investing topic to discuss should be a natural process.
Look at how your role gives you leverage to discuss certain issues. Then, pick a trend from the news agenda to make your thoughts extra timely.
A Chief Investment Officer might discuss the importance of transparent reporting when evaluating the sustainability of investments.
An ESG Officer can explain the transition to a low-carbon economy and what investments to undertake in sustainable infrastructure.
An HR Manager might discuss how their firm has invested in new DE&I initiatives to create equal opportunities.
Ultimately, the more research you commit to your thought leadership, the higher quality and hyper-relevant your campaign will be.
Sustainable investing thought leadership is a universal issue, where your insights will always be in high demand.
With this in mind, there are numerous outlets you can pitch to.
ESG publications are likely the best avenue to obtain regular coverage when pitching an opinion article or distributing a company press release since they are always looking for content.
Investment trades will often accept commentary but can vary in difficulty depending on the size of the publication and the seniority of the executive who is pitched.
National publications are by far the hardest to pitch and will often only take senior executives offering tangible data or a fresh perspective that hasn’t yet been shared.
Sustainability and investment podcasts, broadcasters, and local radio stations are also ideal avenues for coverage as long as they are correctly targeted.
All companies undertaking a sustainable investing thought leadership campaign must understand the varied interests and priorities of each of their stakeholders.
This is essential so your thought leadership doesn't alienate certain groups or focus on issues that aren’t important to your stakeholders at all.
Secondly, never include another company within a case study to make a point to avoid the risk of legal action being taken.
Thirdly, avoid overly promoting your business to the point that you don’t acknowledge any of its setbacks and challenges. Honesty is essential to build trust.
Lastly, when undertaking thought leadership, your company must be cautious of relaxing its own ESG activities to avoid facing a public backlash.