Do good and talk about it: The strategic potential of sustainability communication

Many companies have been operating sustainably for years, fulfilling their sustainability reporting obligations, demonstrating fair supply chains, and striving to transition to net-zero operations – yet they communicate little or nothing about it.

Sometimes it is simply a lack of time. However, ‘green hushing’ – that is, keeping sustainable business practices under wraps for fear of being accused of greenwashing – has also become a widespread phenomenon. According to a study, around a third of the companies surveyed deliberately do not communicate their sustainability efforts (South Pole Study 2022). This trend may well intensify as a result of the recently adopted Empowering Consumers Directive (EmpCo), which will impose severe penalties for non-compliance from September 2026 onwards.

However, sustainability communication is not merely an optional extra; it is essential for the comprehensive sustainable transformation of the economy and society. Furthermore, sustainability communication can be of great strategic value to companies and organisations. We have compiled a few reasons here for using sustainability strategically in communication – and in doing so, becoming even more sustainable. The far-reaching regulations of the EmpCo, introduced for the first time, support this by helping to build trust.

Sustainability as a factor in communication

Sustainable action builds trust and thus one of the most important resources a company can have, as trust establishes and strengthens all relationships with employees, colleagues, business partners and customers (see IW Report 45/2022). Trust can be built through transparent, truthful and credible sustainability communication – without communication, companies miss out on this benefit of sustainable action.

Communication should be integrated into sustainable action from the very beginning. Facts and figures on sustainability should be made tangible as part of the company’s narrative. Sustainability can be developed as a story that appeals to all of a company’s stakeholders as people with interests and needs. People who want to be convinced and engaged, and who aspire to a world with an ecological, social and economic future. But also people who, in their respective roles, have very different communication needs that must be taken into account.

The following reasons for internal and external sustainability communication can be identified:

Internal sustainability communication

• Organisations need the knowledge and motivation of their staff to achieve their goals. Informing managers and employees about the ‘why’ and ‘how’ of corporate sustainability and getting them on board has an empowering and motivating effect.

• Working towards sustainable goals gives a sense of purpose. Internal sustainability communication can help strengthen staff retention.

• Good internal communication supports and takes the pressure off sustainability managers, as it places sustainable projects and processes within a broader strategic context. In this way, it can also turn a company’s staff into active participants in the overall sustainability strategy.

• Informed and committed employees are the best defence against accusations of greenwashing.

• An added bonus: well-structured internal communication makes companies more resilient in crises, more open to change processes and, not least, more sustainable in terms of their ESG rating in the social and governance areas.

External sustainability communication

• Communication on sustainability is a key factor in relationships with customers (B2C and B2B) and business partners. For this reason, there are a wide variety of sustainability labels, and companies voluntarily present facts and figures on their sustainability performance in reports.

• Sustainability, in its many facets, can give companies and organisations a distinctive profile in the market and in the eyes of business partners – it is therefore a competitive advantage that should be leveraged through communication to be truly effective.

• By communicating on sustainability, companies fulfil their social responsibility; they demonstrate that sustainable business practices are feasible, and that they often lead to better outcomes in the long term. The role of setting an example is vital for a future-proof world and should – without pointing fingers! – be utilised in communications.

• Banks and insurance companies are increasingly requiring companies to demonstrate a certain level of progress in sustainable development. To achieve this, companies must present facts and figures, as well as a compelling competitive profile – here too, presenting this information in a communicatively persuasive manner is a key factor for success.

• Greenwashing leads to significant damage through a loss of trust (and, from autumn 2026, potentially severe penalties in the worst-case scenario) – in contrast, good external sustainability communication is based on figures and facts; it is transparent, credible and authentic.

So there are plenty of good reasons for sustainability communication! The EmpCo, which has recently come into force, should be seen as an opportunity to secure trust in sustainable companies and thus preserve it as a resource. However, in many cases, taking advantage of this opportunity requires a review of previous green claims. Communication and reporting must work closely together in this regard.

The full potential of sustainable action can be realised beyond this regulatory approach through a communication strategy. Based on a careful analysis of the current situation and relevant stakeholders, positioning, key messages and measures can be strategically developed and utilised for business purposes. We support companies and organisations in harnessing the strategic power of their sustainability communication, both internally and externally.

Featured image:Nicole Geri via unsplash.com