Empowering climate action with gender-responsive ESG communication

Blog
Asia
12.09.2024
Vaishali Mishra, Director, Communications and Advocacy - Asia, GEAPP
Key facts
ESG communication bridges the gap between climate action and corporate strategy
68% of people want companies to communicate their ESG efforts more clearly to consumers and investors
ESG communication has shifted the focus toward gender equality as a critical lever in achieving broader sustainability goals

As the Conference of Parties (COP 29) approaches, countries worldwide are taking stock of their climate mitigation efforts and progress made toward their climate commitments thus far. Meeting the critical 1.5°C goal requires proactive initiatives, policy reforms, and concerted efforts across all sectors and industries. The urgent action demanded by the impending climate threat is probing institutions, governments and organizations across the globe to adopt ESG practices, foster global cooperation, and strengthen resilience against climate risks.  ESG (Environmental, Social, and Governance) unlocks new avenues for accelerating climate action, guiding countries toward their net-zero targets while safeguarding economic growth.

 By institutionalizing clear standards, ESG frameworks compel and enable organizations to monitor their environmental and societal impact and operate with greater accountability. Focusing on diverse aspects such as greenhouse gas (GHG) emissions, resource efficiency, labor practices, equal representation, and governance structures, ESG provides a holistic framework for sustainability. ESG communications are vital for showcasing commitment, influencing stakeholders, promoting inclusivity, and ensuring sustainability. 

The Rising Importance of ESG Communication

Driven by regulations such as the European Union (EU) Taxonomy and the Paris Agreement, ESG compliance is transforming from a choice to a mandatory standard that organizations must adhere to in order to align with global climate goals. In India, the introduction of the Business Responsibility and Sustainability Reporting (BRSR) framework by the Securities and Exchange Boards of India (SEBI) in 2021 has proved to be a milestone development in mainstreaming ESG. Under this framework, SEBI mandated ESG disclosures for the top 1000 listed companies by market capitalization from FY 22-23. As regulations evolve, ESG communications are playing an increasingly pivotal role in bridging the gap between corporate strategies and climate action. A recent study on the public perception of ESG found that 68% of the individuals surveyed expected companies to communicate the results of their ESG efforts more clearly to consumers and investors.

By promoting transparency and fostering accountability, ESG communications are emerging as a powerful tool for organizations to strengthen climate strategies and enhance stakeholder engagement. Through open and consistent reporting of progress, initiatives, and challenges in implementing ESG parameters, companies support a culture of transparency that establishes trust and credibility among investors, consumers, regulators, and other stakeholders involved. 

Enhanced stakeholder relations and engagement invite diverse perspectives on critical issues, streamline efforts by creating a shared understanding of goals and strategies, and facilitate resource and support mobilization. These concerted efforts prove influential in driving behavioral change and influencing decision-making across various levels—from shaping corporate strategies to influencing consumer choices. Ultimately, ESG communications elevate climate action from a corporate obligation to a collaborative, collective effort, ensuring that climate commitments translate into measurable actions. 

Catalysing Climate Action with Gender-Responsive ESG Policies

ESG policy making needs to acknowledge the importance of gender equality as a critical lever for achieving broader sustainability goals and strengthening the social and environmental pillars of ESG. Communicating ESG frameworks and policies has become even more vital. ESG communications are helping achieve this by shifting the focus to critical yet often overlooked dimensions of sustainability and emphasizing the potential of women as agents of change. Data from a recent study by the International Finance Corporation (IFC) shows that while only 48% of male respondents acknowledged a company’s obligation to minimize its negative environmental and social impacts, the percentage of female respondents for the same was 61%. The study demonstrates how women are more likely to consider ESG a corporate responsibility and how their perspectives can enhance climate performance and corporate social responsibility (CSR).

By expanding women’s access to resources, education, and decision-making power, gender-responsive policymaking spurs innovation and improves risk management. Supporting women-led initiatives and developing gender-sensitive climate adaptation strategies further amplifies these efforts. Embedding gender equality into the ESG agenda advances women leadership, enhances business resilience to climate risks, and deepens social relevance, positioning companies as leaders in the global sustainability movement. In an effort towards facilitating the integration of gender-inclusive policies into the ESG framework, a workshop titled ‘EnGendering Your ESG Strategy’ was recently organized by the Climate Leaders Network (CLN). CLN was established as a collaborative effort between the Global Energy Alliance for People and Planet (GEAPP), the International Finance Corporation (IFC), the United States Agency for International Development (USAID), and the Australian Department of Foreign Affairs and Trade (DFAT) to amplify women’s leadership and participation in climate initiatives. The issue has also been taken up by the United Nations Women in a deep-dive webinar series on how WEP or Women’s Empowerment Principles can advance the cause for ESG and gender equality. 

Way Forward

The growing momentum around ESG practices and communication marks a fundamental shift in our approach to sustainable solutions—one that is collaborative, inclusive, and rooted in shared responsibility. In addition to bridging the gap between corporate strategies and climate action, ESG communications also foster transparency, accountability, and collaboration across all levels of society. Urgent climate mitigation efforts require participation from across all levels of society—ESG communications can contribute significantly towards catalyzing the reforms needed to promote inclusivity, strengthen the gender nexus, and reinforce climate action. 

Through consistent and impactful ESG communications, companies have the opportunity to lead by example, demonstrating that climate action is not just a corporate goal, but a collective mission that can drive global progress toward a more resilient and sustainable future for all.