The impact of behavioural science and nudges on ESG communications

In recent years, there has been a growing emphasis on environmental, social, and governance (ESG) issues as companies recognise the importance of sustainability and responsible business practices.

You can use behavioural science to drive ESG change and build a more sustainable future

Effective communication plays a crucial role in conveying a company’s ESG initiatives to stakeholders. Harnessing the power of behavioural science and employing nudges can significantly enhance ESG communications, making them more persuasive, engaging, and impactful.

What is behavioural science and what are nudges?

Behavioural science is the study of human behaviour and how it is influenced by psychological factors. It can be used to understand how people make decisions, how they are persuaded, and how they are influenced by others.

Nudges are small changes in the environment that can influence people’s behaviour without restricting their freedom of choice. They can be used to encourage people to make healthier choices, save money, or be more environmentally friendly.

How can behavioural science and nudges be used to improve ESG communications?

There are a number of ways that behavioural science and nudges can be used to improve ESG communications. Here are a few examples:

• Use default options: By making sustainable choices the default option, companies can make it easier for people to choose them. For example, a company could make paperless billing the default option for its customers.
• Highlight social norms: People are more likely to adopt sustainable behaviours if they see that their peers are doing the same. Companies can highlight the positive actions taken by their employees or showcase testimonials from satisfied customers to create a sense of social norm.
• Use visual cues: Visual cues can make ESG goals more tangible and motivate people to contribute toward reaching those targets. For example, a company could use progress bars or infographics to track its progress on reducing its carbon emissions.
• Provide feedback and incentives: Regular feedback on sustainable behaviours can foster a sense of accomplishment and motivate people to continue their efforts. Additionally, offering incentives, such as discounts for eco-friendly purchases, can further encourage sustainable choices.

By using behavioural science principles, companies can create ESG communications that are more persuasive, engaging, and impactful. This can help them to achieve their sustainability goals and build a more sustainable future.

Here are some additional tips for using behavioural science to drive ESG change:

• Understand your stakeholders: Different stakeholders may have different motivations and barriers when it comes to taking action on ESG issues. By understanding your stakeholders, you can tailor your communications to address their specific needs.
• Be clear and concise: People are more likely to remember and act on messages that are clear and concise. Avoid using jargon or technical language that your stakeholders may not understand.
• Be personal: People are more likely to be persuaded by messages that are personal and relevant to them. Use stories and examples to illustrate the benefits of taking action on ESG issues.
• Be persistent: It takes time to change people’s behaviour. Don’t give up if you don’t see results immediately. Keep communicating the importance of ESG issues and the benefits of taking action.

By following these tips, you can use behavioural science to drive ESG change and build a more sustainable future.

So how have others used behavioural science to drive ESG change?

Santander Bank is using default options to encourage customers to sign up for paperless statements. When Santander made paperless statements the default option, 90% of customers chose that option. This helped Santander to save millions of dollars in printing and mailing costs, and it also reduced the bank’s environmental impact.

Patagonia is using social norms to encourage employees to recycle. Patagonia placed signs around its head office that showed how many employees were recycling and how much waste was being recycled. This helped to increase recycling rates at Patagonia by 20%.

Portland, Oregon is using visual cues to encourage people to walk or bike instead of driving. Portland installed signs that showed how much time and money people could save by walking or biking. This helped to increase the number of people walking or biking in Portland by 15%.

These are just a few examples of how behavioural science can be used to drive ESG change. By understanding how people make decisions and how they can be influenced, you can create more persuasive, engaging, and impactful ESG communications. This can help you to achieve your sustainability goals and build a more sustainable future.

About the author

Gihan Hyde is the award-winning communication specialist and founder of CommUnique, an ESG communication start-up.

She has been implementing ESG campaigns in eight sectors, across six countries over the past 20 years.

Her campaigns have positively impacted over 150,000 employees and 200,000 customers and have closed over £300m in investment deals. Some of the clients she has advised include The World Health Organisation (WHO), HSBC, Barclays, M&S, SUEZ, Grundfos, Philip Morris, USAID, and the Saudi Government. 

Get in touch with Gihan through LinkedIn or Twitter @gehanam.