Companies are increasingly required to disclose non-financial information. ESG (Environmental, Social, Governance) reporting requirements, such as the CSRD Directive, now apply to many organisations, with more expected to follow. In addition, smaller companies that supply larger companies are expected to demonstrate how they integrate ESG principles into their operations. But how can they do this effectively?
Reporting on ESG initiatives has become critical across the market. Whether the report is produced as a result of regulation or as an expression of transparency and leadership in ESG, producing an engaging report is key to building trust and lasting relationships with key stakeholders. Why is it important?
Research from PwC indicates that 90% of business leaders feel responsible for taking concrete action in environmental, social, and governance investments. Additionally, 86% of employees prefer working for companies that uphold strong ESG criteria, showing that effectively communicating these actions can significantly impact a company’s perception and relationships with stakeholders.
Designing a strong ESG report
Presenting a company’s ESG performance in a visually appealing, audience-focused report builds stakeholder trust and credibility. An aesthetically pleasing and clear report demonstrates that the company takes its communication seriously, prioritising detail, accessibility and consistency of message with brand image. Today’s consumers are increasingly aware of the ESG definition and the ethical and responsible behaviour of companies. The ESG report is one of the tools that provides this information and creates positive associations. In addition, robust ESG investment practices enhance a company’s reputation as a desirable place to work, attracting employees who share its values – a critical factor in attracting talent in a competitive labour market.
At the same time, a company’s value is no longer defined solely by its financial performance. ESG reports highlight whether a company has a forward-looking business strategy that considers different scenarios, risks and environmental impacts, giving investors a fuller picture of its long-term growth potential. For example, ESG stocks are increasingly attractive to investors seeking sustainability-focused companies because a comprehensive ESG report gives them a deeper insight into a company’s commitment to sustainable practices.
PwC’s analysis shows that prioritising ESG reporting can attract greater investor attention and increase a company’s market value. What is the ESG movement if not a shift towards greater transparency, accountability and sustainable development?
How do you design an effective ESG report?
Legislation dictates the data and information required in non-financial reports, but the style of presentation is left to the company’s creativity. An eye-catching design that attracts attention ensures readability, and effectively communicates the company’s values is crucial.
Here are some elements to consider in an ESG report:
Cover and format
In communication psychology, first impressions are crucial, and in an ESG report, the cover plays that role. For example, Prometey Bank’s 2012 report, produced with WWF, featured illustrations of different animal species in an unfinished style, symbolising the threat of extinction.
Source: Behance
While printed copies may appear elegant, their environmental footprint should be considered, and printing should be reserved for specific stakeholders. Instead, digital formats, which are more environmentally friendly and can offer interactive experiences, are preferable. Digital reports allow for interactive elements such as animations, animated charts and easy navigation, increasing engagement. This approach is ideal for companies that want to demonstrate their commitment to sustainable development at all levels, including data presentation.
An example of an effective digital report is the interactive PDF created by Admind Branding & Communication for the Energy Efficiency Movement, a global initiative promoting energy-efficient industrial solutions.
Source: Admind
If a printed format is chosen, consider using recycled materials, which aligns with the company’s sustainability rating and reinforces its commitment to ESG initiatives. Pirelli’s report, designed as a sculptural piece that could sit on a desk, exemplifies how design can support brand identity.
Source: Behance
Visual consistency and brand alignment
The report’s visual consistency with the brand identity is critical to establishing an authentic message. The colours, typography, logos, and style of photos and graphics should be in line with the company’s image and create positive associations that are instantly recognisable. This approach reinforces credibility while highlighting the company’s values, laying the foundation for long-term, trust-based relationships.
For example, a company that values minimalism and transparency might use clean, simple layouts and a subtle colour scheme in the report to reflect its straightforwardness and transparency in action. Meanwhile, a company that promotes creativity in problem-solving might use unique illustrations or interactive elements to engage the reader creatively. A brand focused on multicultural collaboration might express its values through different graphic styles inspired by cultures worldwide, or use images of international teams in everyday settings to highlight global collaboration. Such approaches effectively demonstrate the company’s commitment to diversity and inclusivity.
Readability as a priority
While design is essential, readability should remain the primary focus. Even the best-designed report loses its impact if readers cannot easily understand it. A clear content structure, readable fonts and a moderate colour palette ensure accessibility.
- It is a good idea to separate the different sections of the report clearly. It is better to avoid an excess of graphic elements that could make it difficult for readers to navigate through the document. Dividing the report into clear blocks and sections makes it easier to understand and digest.
- Appropriate typography is essential. Simple, legible typefaces facilitate the reception of more and less extensive texts. A well-chosen font not only improves the document’s aesthetics but also increases its clarity, which is of great importance, especially for longer documents.
- A conscious choice of colours is important. Instead of introducing too many, it is better to opt for a maximum of three colours in addition to white and black from the brand identity palette. This will ensure visual consistency and increase the report’s clarity. Excessive colours can distract the audience and make it difficult to focus on key content.
The definition of ESG factors is essential as it provides a clear understanding of the non-financial criteria considered in the report, such as emissions reduction, diversity initiatives or governance practices.
Accessibility and inclusivity
Modern communications, including ESG reports, prioritise accessibility and inclusivity. Printed versions should have larger fonts, high text-to-background contrast and generous line spacing to be accessible to people with visual impairments. In digital formats, this means designing reports that are friendly to visually impaired readers and compatible with assistive technologies such as screen readers. Making reports accessible reinforces the ESG message by demonstrating the company’s genuine commitment to building inclusive, equal relationships.
Allegro’s 2023 report is an example of interactive navigation, demonstrating how easy-to-navigate digital formats enhance the user experience.
Source: Allegro
Storytelling
Storytelling can make an ESG report more engaging and accessible. Presenting the organisation’s actions through real stories illustrates their impact on local communities, employees and the environment. Rather than presenting raw data, focus on how this information translates into real change that matters to people and their communities. Specific stories reinforce the company’s authenticity, bring it closer to stakeholders and build an emotional connection.
Examples of storytelling:
Introduction from senior management
Begin the report with a personal message from the CEO or senior executive. This message should emphasise why ESG actions are critical to the future of the company and its stakeholders and offer reflections on the importance of sustainable development and leadership’s personal commitment. This introduction humanises the report, builds trust, and helps stakeholders understand that ESG is both a business strategy and a reflection of leadership values.
Impact on employees
This section can highlight specific examples of how ESG policies benefit employees, such as improvements in working conditions or health and wellness programmes that support employees in social initiatives.
Impact on customers and stakeholders
Illustrating how sustainable development impacts customers and other stakeholders, such as business partners or suppliers, demonstrates the company’s responsiveness to the needs of those seeking sustainable solutions.
Impact on local communities and NGOs
Storytelling in the ESG report can also show how the company’s activities impact local communities. Describe specific projects that the company supports, which may include environmental, educational or social initiatives. Collaboration with NGOs, for example, can be highlighted to show how these partnerships contribute to achieving ambitious ESG goals and underscore the company’s commitment to making a positive difference.
Long-term vision and future goals
It is also essential to communicate the company’s long-term ESG vision, showing how current actions contribute to a better future. This section can outline the company’s ESG goals for the coming years and link these plans to global challenges such as climate change, inequality and natural resource conservation.
Infographics and data visualisation
A report full of text and dense tables can be daunting to read. While meeting regulatory requirements is sufficient, it is worth asking whether this is the best way to communicate with different stakeholder groups. Infographics and interactive charts simplify critical data, make it easier to remember and invite stakeholders to read on.
Source: Orange
Source: Admind
Summary
ESG reporting is increasingly important for regulatory purposes and to build trust with key stakeholders, including investors. Prioritising the visual layer of the report from the outset ensures that an aesthetically pleasing and well-designed document not only improves readability but also engages the audience. Investors are increasingly looking for companies that present their sustainable strategies transparently and professionally. An ESG report incorporating modern visuals and a cohesive design becomes an invaluable communication tool that enhances a company’s credibility and market value. It’s more than a formality – a powerful way to attract investors and build a lasting reputation in the marketplace.