ESG Investors

ESG Investors: The Importance of Environmental Literacy

ESG Investors: The Importance of Environmental Literacy

How to support sustainable investing with Environmental Content Marketing

Running a successful company that solves environmental issues requires a network of investors, staff, community leaders, policymakers, and marketers who have a working knowledge of the environmental problem the company is trying to help solve. Sustainable brands have an opportunity and a responsibility to add education to their internal and external communications efforts helping ESG Investors find their way. In this article why it’s essential to educate ESG investors and how to get started.

Why is it essential to educate ESG investors?

It’s a necessary time to educate investors about sustainable ventures. With the rising tide of ESG Reporting (Environmental, Corporate, and Governance), investors and bankers are asking for guidance to help them navigate the claims companies make about their ESG metrics. Investors of sustainable brands and companies taking on sustainable initiatives want to ensure they are being accurately assessed to mitigate the risk of backlash from potential greenwashing – or metrics fabrication.

Sustainable investing is growing interest as investors know that accurate, healthy ESGs indicate future growth and can also align their financial contributions and returns to their personal values and goals.

When your company takes on the leadership role of educating investors on environmental problems, you’re arming them with the knowledge they need to make the best decisions. A Deloitte study found that companies with more transparency received more funds from investors versus companies with less transparency. When your company solves an environmental problem, it’s even more important to connect investors with the intensity of that problem so they can understand your mission’s importance. Now that the problem and solution have become clear, it’s easier for investors to know what is needed to drive that mission.

A great resource to model your investor education on is The Center for Sustainable Investment Education. An organization in the U.S. works to educate investors in the field of sustainability to help advisors, consultants, and analysts make the best decisions based on facts.

How to educate ESG investors

Poll results show investors want to be educated. They want to make educated decisions based on economics, policies, the environment, future projections, financial outlooks, and valuable reports. Investors want to see data and proof of a given trajectory to finance a project, a company, or a CEO. Some of the most effective ways to educate investors about sustainable brands are:

  • Creating a fact sheet for inventors based on environmental, economic, and policy facts
  • Share environmental facts on the issues you’re solving to raise awareness about the problem
  • Produce a metrics-based ESG Report geared toward educating investors – make sure metrics can be proven
  • Send a quarterly investor newsletter educating on a new topic that your company addresses geared toward teaching investors something new each time
  • Develop a digital content marketing strategy where investors can learn more on your resources page, blog article page, or social media platform where education is shared

If you have an investor email list, that’s where you want to focus. Sharing content on LinkedIn with your potential investors and inviting them to follow your company’s page has proven highly effective for the companies we work with. Building environmental educational content that is simple enough for anyone to access but deep enough to increase awareness and understanding is key.

Sustainable Investor preferred content formats:

  • Newsletters
  • LinkedIn Content
  • Reports
  • Infographics
  • Articles & Write-ups
  • News and documentary-style videos
  • Case Studies
  • Social proof

 

A.R. Marketing House is the first diverse women-owned business specializing in environmental content that supports ESG Investors. We create accurate, compelling reports that connect with stakeholders and can also be used in a more comprehensive communications strategy.

 

Resources:

https://www.ussif.org/education

https://www2.deloitte.com/gu/en/pages/about-deloitte/articles/deloitte-launches-climate-learning-program-to-empower-all-330000-people-to-take-action.html

Posted by ARMarketingHouse in Blog, Environmental