When it comes to brand impact, credible actions often carry more weight than having good data alone. Though both are essential in building trust and reputation. In the case of Net Zero, for instance, the market remains largely unregulated, unlike sectors such as finance. In this regulatory gap, the most effective approach is a credible strategy supported by clear actions and measurable outcomes that reinforce the brand’s commitment.
A majority of company finance leaders globally say that they are concerned about perceived greenwashing risks from sustainability reporting in their industries, and most do not believe that their organizations will hit their major sustainability ambitions, as nearly all report problems with the integrity of their nonfinancial data, according to a new survey released by global professional services firm EY.
1. Credible Actions: Turning Intent into Reality
Direct Impact on Trust: When a company follows through on its promises with tangible actions, it shows authenticity, which directly builds trust and loyalty. Credible actions such as assessing the sustainable progress of your suppliers and actively supporting them reflects a commitment to values which has great influence with customers, partners, workforces and investors.
Demonstrates Accountability: Credible actions, such as helping the next generation to become more employable with the practical skills needed for jobs of the future (see the work of poweringfutures as an example) reinforce that the brand stands behind its mission, ethics, and promises, enhancing its reputation.
Creates Emotional Connection: Actions that visibly contribute to social, environmental, and customer-focused goals (such as community wealth building iniatives) create emotional connections and belief, which often drives long-term loyalty and advocacy.
Companies who lead on sustainable and socially driven practices will build resilience and outperform their competitors.
The EY survey found that finance leaders appear to lack confidence in their organizations’ sustainability reporting capabilities, with 96% reporting some problems with the nonfinancial data that they receive for reporting, and 55% believing that their industries’ sustainability reporting lacks credibility and risks being perceived as including elements of greenwashing.
2. Good Data: Informing Strategy, Communication & Providing Transparency
Improves Relevance and Transparency: Good data allows companies to demonstrate they are making some tangible progress against their commitments. If you can't measure it, you can't manage it. Measuring carbon emissions against historical baselines for example allows companies to prove they are taking their Net Zero strategy seriously. This relevance is an important part in complying with carbon reporting - increasingly needed to bid on contracts and build trust with clients and partners.
Supports Credibility in Messaging: Using accurate, insightful data to support claims or to make data-backed promises enhances a brand's image as knowledgeable and informed.
Guides Action: Data is crucial to inform strategy and to prioritise which actions will be most impactful in achieving growth ambitions that are environmentally and socially responsible.
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