A recent report from Brand Finance consultancy highlights the gaps that can exist between companies’ sustainability efforts and the public perception of their reputation and commitments in these areas. These gaps can have significant implications with respect to company valuation. In many cases, companies are leaving value on the table by not effectively communicating their activities or intentionally keeping their efforts under the radar to manage expectations and avoid scrutiny. Other companies are perceived as being more sustainable than their actual efforts support—creating a potential risk of lost value due to an “over-promise, under-deliver” situation.
So, what does this mean for companies from a practical standpoint? Simply put, companies must both act and communicate when it comes to sustainability. More specifically, efforts to become more sustainable should be supported by active and accurate messaging and any claims should be backed up by real action. Lack of alignment in either direction can adversely impact value—under-communicating sustainability initiatives can result in unrealized value from lack of recognition for those efforts, while making claims that are not supported by actual activities exposes organizations to the risks from increased scrutiny.
If you’re exploring how to make your business more sustainable, let’s talk. Guttman Renewables offers a range of options—from renewable fuels to carbon offsets—that can help you reduce or compensate for your emissions footprint. Get in touch today to learn more.
