Leverage Your ESG Story

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2/15/22
Finding the story in your ESG
numbers
How to leverage your ESG story to build market preference, drive sales, attract investors and
retain employees
Gain a sustainable advantage.
© 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.

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What are we up to today?
• The ABC’s of ESG — what you need to know about the terminology and
standards, the reporting frameworks and the ratings agency game
• The watch-outs — the gaps that must be filled and the commitments that must
be made to appease ratings agencies and investors, as well as employees and
consumers.
• Baking sustainability into your brand platform and framing your ESG story at
different levels so you can speak to several different audiences in a way they
can each understand, while staying consistent — including via your ESG
reporting.
• Working together to nail down several key takeaways -- like which ESG ratings
agencies matter most for your company, the most important “watch-outs” and
story elements for your situation, and what your lead message should be.

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About us

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Gain a sustainable advantage
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Why Shelton Group?
ESG Subject Matter Experts
• 30 years in business
• 16 years exclusively focused on creating a market
advantage for organizations working to create a
sustainable future
Recognized Thought Leaders
• 15 years of conducting our own, proprietary Pulse®
trending studies regarding U.S. market beliefs and
expectations surrounding sustainability issues
• Featured speaker at 15-20 industry events annually
• 8,000+ subscribers to weekly insights newsletter
• Regularly featured in business press
Solution Providers
• Insight-driven marcomm strategies and campaigns that:
- Evoke emotion
- Change mindsets
- Build brands
- Sell products
…with no greenwashing! Gain a sustainable advantage.

5 Gain a sustainable advantage.

The company we keep

– S&Z North America –
Sustainability & ESG Experts
• Established 2005
• Exclusive focus on sustainability / ESG management
• 25 experts
Global Reach
• Offices in New York, NY and Hamburg, Germany
• Network of partners to deliver projects globally
• 660+ projects for more than 190 clients
Meeting pressing challenges head-on
• Sustainability Strategy, Goals, KPIs
• Responsible Sourcing
• Reporting, ESG Ratings, Stakeholder Management
• Impact Assessment, Metrics and Software Support

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Strategy & Organization
§ Vision, strategy, targets
§ Materiality analysis
§ Code of conduct
§ Organization and processes
§ Supply chain management
§ Performance management and
indicators
§ Reporting lines
§ Training
Communication
Data & IT Management
§ Stakeholder management (surveys,
dialogues, conferences)
§ Print and online reporting
§ Assistance in investor ESG
communication
§ Responding to ESG questionnaires
§ Software selection
§ Implementation
§ Training, user support
S&Z – Consultants for Corporate Responsibility

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S&Z Clients

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Why ESG matters more
than ever

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Let’s start with the people you’re
“selling to”
End users
Employees
Prospective Employees

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As part of its ongoing polling of Americans to deeply understand their beliefs and expectations
around sustainability, Shelton Group fielded a survey to explore how Americans define good and
bad companies and how those perceptions drive purchase decisions.
This online survey was fielded December 2020-January 2021 and included a total of 2,000 U.S.
respondents.
Respondent Demographics
The survey sample was stratified to mirror the U.S. population, using quotas for geography, age,
gender, education and race; data were weighted slightly to match U.S. population distributions. The
margin of error is +/- 3.1%.
Methodology
sshelton@sheltongrp.com • (865) 524-8385

What’s a “Good Company or Brand?”

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Source: Good Company
Name three companies or brands that
you consider to be “good.” It’s up to
you to decide on what your meaning of
“good” is. n=2,000
Here’s what Americans think
*Brands shown had 5 or more mentions
sshelton@sheltongrp.com • (865) 524-8385 Gain a sustainable advantage.

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And here’s why:
Why do you think this is a good
company? n=1,686
23% of those surveyed
chose ESG-related answers
2%
2%
3%
3%
3%
3%
3%
4%
4%
4%
5%
5%
6%
6%
6%
7%
7%
8%
14%
18%
20%
21%
26%
51%
Diversity/inclusion
Healthy/organic/vegan products
Successful/profitable/popular
Value
Trustworthy/fair
Convenient
Fun/cool/friendly
Handled covid well
Discounts/deals/sales
Stands up for something/good values
Longstanding/reputable
Charitable activities/give back
Care about environment/the world
No good companies/None/NA
Innovative/unique
Community-focused/give to community/help people
Reliable/honest
Takes care of employees/creates jobs
Variety/availability/has what I need
Quality
Price
Good/all/everything/amazing
Customer service
Good/best version of the product they sell
sshelton@sheltongrp.com • 865-524-8385 Gain a sustainable advantage.

So then, what’s a “Bad Company or Brand?”

Name three companies or brands that
you consider to be “bad.” It’s up to you
to decide on what your meaning of
“bad” is. n=2,000
Here’s what Americans think
*Brands shown had 5 or more mentions

4%
4%
4%
5%
5%
5%
6%
6%
6%
7%
7%
7%
9%
10%
12%
13%
14%
14%
16%
18%
24%
Have too much power/monopoly
Censorship/they censor people
Unreliable products/service
Poor policies/business tactics
Security/privacy concerns/data issues
Greedy/only focused on money
Poor leadership
Don't know
Harmful to the environment
Promotes misinformation/doesn't correct lies
Don't like/just my opinion/bad
Food/drink is bad
I disagree with their social issues/stance/values
Corrupt/criminal/crooked/fraud/scandals
Poor quality/cheap
Products are harmful/unhealthy
Treats employees poorly
Dislike the products/brand
Cannot trust/deceptive/dishonest/manipulative
Too expensive
Bad service
And here’s why:
Why do you think this is a bad
company? n=1,326

So what does
Good vs. Bad
have to do with
driving purchase?

20
42%
want to be seen as
someone who buys
eco-friendly products
Q - How much do you agree or disagree with the following statement: Buying/using eco-
friendly products is an important part of my personal image
Source: Eco Pulse, Shelton Group, December 2020
n=2,006

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26%
Can name a product or brand
they’ve purchased – or not
purchased – because of the
environmental or social record of
the manufacturer
Q - “Have you ever chosen one brand or product over another or stopped purchasing a brand or
product based on the social or environmental record of its manufacturer? Name the brand.”
Source: Good Company, 2020.
n=2,000

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And out of that 26%, we have
Three Groups of People
Choosers
have chosen a product or
service because of the
social or environmental
record of the brand
Stoppers
have stopped purchasing a
product or service because of
the social or environmental
record of the brand
Changelings
have done both
n=248 n=214
n=66
info@sheltongrp.com • 865-524-8385

23 sshelton@sheltongrp.com • 865-524-8385 Gain a sustainable advantage.

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Now let’s look at investors

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Investor interest is accelerating
Principles for Responsible Investment
Source: PRI Annual Report 2021

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What is Sustainable Finance? The investor
perspective
Source: Credit Suisse

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Breaking down ESG investment strategies
1
5
7
6
4
2
3
ESG Integration
ESG is incorporated into financial analysis
Negative/exclusionary screening
Certain sectors/companies are excluded based on
inherent characteristics or ESG profile
Corporate-engagement and shareholder action
Direct interaction with issuers to improve practices
Norms-based screening
Filtering out issuers whose business
model/practices does not align with commonly
accepted norms or standards (e.g. ILO)
Sustainability themed investing
Focus on ESG inspired ‘themes’ such as clean
energy, ocean health
Positive/best-in-class screening
Prioritizing investments that exhibit stronger ESG
performance than (industry) peers
Impact investing
Create positive social/environmental outcomes for
certain beneficiaries
Strategy
US$25.2tn
US$15tn
US$10.5tn
US$4.14tn
US$1.95tn
US$1.38tn
US$0.35tn
Assets under Management (2020)
Source: Global Sustainable Investment Review 2020 Growth rates are compound annual growth rates over the period 2016-20
+25% p.a.
+0% p.a.
+6% p.a.
-10% p.a.
+63% p.a.
+14% p.a.
+9% p.a.

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It is our conviction that companies that perform well on ESG are generally less risky,
better positioned for the long term and possibly better prepared for uncertainty.
“
”
Vincent Triesschijn
Director, Sustainable Investing, ABN AMRO
as cited by EY

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Why ESG scores matter
Financial Benefits Management Signal
• Improve shareholder relations
Ability to respond to investor expectations and
preempt shareholder proposals,
• Access to Sustainable Finance
Top-ESG-ranked companies historically have
enjoyed lower costs of capital, many issuers state
higher demand for green bonds vs vanilla
• Diversify investor base
Attract new investors, resulting in a more diverse
and stickier investor base.
• Inform ESG management
Signals certain issues are important to address
• Encourages ESG disclosure and dialogue
Most ESG raters prefer publicly available
information, thus helps shape ESG disclosure
content
Reputational Benefits
• Scores are public
Recognized leadership opportunity
BUT continue to own your story
!

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The ABC’s of ESG

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What is ESG?
Environmental
• Energy
• GHG emissions
• Waste
• Water
• Biodiversity
• Packaging
• …
Social
• Diversity, Equity &
Inclusion
• Labor rights
• Human rights
• Product safety
• Occupational health
and safety
• Employee
development
• …
Governance
• Compliance
• Executive
compensation
• Business ethics
• Anti-corruption and
anti-bribery
• Anti-competitive
practices
• Taxes
• Political Advocacy
• …
Icons from Freepik via Flaticon.com

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Rating Agencies have pushed into ESG
through acquisitions

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Influential ESG raters today
Questionnaire,
Disclosure
Questionnaire,
Disclosure
Switzerland/
U.S.
U.S.
Disclosure Disclosure
Disclosure,
voluntary
engagement
Questionnaire,
Disclosure Disclosure
DJSI family and
S&P ESG
indices
HQ
Universe1
Issuer Role2
Significance3
Netherlands
U.S. /
France
U.S. /
Germany
U.S. / U.K. U.K.
11,500+ 14,000+ 20,000+ 5,000+ 9,700+ 10,000+ 14,000+
Over 1,500
MSCI ESG
indices
Strategic
partnerships:
• Morningstar
• Stoxx
• Glass Lewis
Euronext and
Ethibel Indices
Stoxx Low
Carbon Indices,
Solactive ESG
screened
BlackRock
iShare and
S-Network ESG
Best Practices
Indices
Feeds into many
ESG ratings
1) Definitions of company or issuer may vary, Universes continually expand
2) Raters typically offer an opportunity to “verify” data collected from the public domain
3) Examples only
Data as reported by raters in Jan 2022
Other ESG raters:
Reprisk, Arabesque, FTSE, …

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How we think about ESG raters
Disclosure only
Narrow ESG
Specialist ESG
ratings
Broad ESG
Bloomberg
Disclosure Score
ISS E+S Quality
Disclosure Score
(EcoVadis,
SupplyShift, etc.)
S&P SAM
ISS ESG
Corporate Rating
…
MSCI ESG
Sustainalytics
…
CDP
Just Capital
Issuer ability to influence through disclosure
MSCI
Low Carbon
Transition Score
Rankings
Corporate Human
Rights Benchmark
Corporate Knights
Holistic ESG ratings
…
(indicative only)

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Many ratings agencies reference existing
Sustainability Reporting Standards
Source: Organizations, S&Z North America Inc.
National Regulations not covered, Emerging Standards: WEF Stakeholder Capitalism Metrics, B Corp, …
Issuers
Audience
Topic identification
Industry-specific
Sustainability Accounting
Standards Board
SASB Standards
International Integrated
Reporting Council
The International
<IR> Framework
Members of all sizes
All stakeholders
Pre-determined
principles
No
UN Global Compact
10 Global Compact
Principles
TCFD Recommendations
Global Reporting Initiative
GRI Standards
Organizations of all sizes
All stakeholders
(Selection from) Pre-
determined Goals
No
United Nations
Sustainable
Development Goals*
Taskforce for Climate-
related Financial Disclosure
Publicly listed companies
Investors
Materiality approach
Yes
Typically capital market-
oriented companies
Investors
No
Capital market-oriented
companies
Investors
Climate risk only
No
Organizations of all sizes
All stakeholders
Some Sector Standards

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The watch-outs

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The people you’re “selling to”
End users
Employees
Prospective Employees

What makes a company “Good?”

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3%
3%
4%
4%
5%
5%
6%
6%
7%
9%
20%
28%
Publicly take a stand on a social issue
Sell eco-friendly products/services
Donate surplus goods or services to charities
Walk away from profits generated by products and services with known human or
environmental costs
Donate money to charities, disaster relief, etc.
Make a concerted effort to eliminate its environmental impact
Work with other companies in their industry to make conditions better for all workers
Have an overarching company purpose that focuses the company’s processes and
products on actively solving the biggest problems our world faces
Make a significant impact for a community cause
Is transparent about and actively works to improve the environmental and human
impacts of its supply chain
Pay its employees a living wage
Treat its employees well
Out of those options you chose, which
one is the number one thing a company
must do? n=2,000
When forced to choose the number-one thing companies must do,
the primary responsibility of a “good” company is treating its
employees well.

40
Response to: “In thinking about the companies that make the products you buy, which of the following descriptions of a company matches who
you would you most likely buy from, if everything else about the product/service was equal? (Rank top 3 most appealing.)” n=2,000
So if you do right by the environment but not by employees,
you still lose out.
8%
10%
11%
20%
20%
31%
Does business in a way that is good for the environment, but doesn’t pay its
employees a living wage
Contributes in a meaningful way to an important social cause/issue, but doesn’t
pay its employees a living wage
Contributes in a meaningful way to an important social cause/issue, but isn’t
working to reduce its environmental impact
Does business in a way that is good for the environment, but doesn’t
meaningfully support any social cause/issue
Pays its employees a living wage, but isn’t working on reducing its
environmental impact
Pays its employees a living wage, but doesn’t contribute in a meaningful way to
a social cause/issue
Percent ranked number one

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Source: Eco Pulse® Wave 13 2020
Please choose the three most
important things that companies
should be doing to positively impact
your purchase decisions. n=2,006
When it comes to the environment…
Manufacture in the United States (17%)
Recycle (20%)
#2
#1
#3 Make recyclable products (15%)
Remove chemicals of concern from products (14%)
#4 e.g. BPA, mercury or formaldehyde

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62%
59%
57%
65%
59%
56%
55%
63%
39%
40%
42%
44%
44%
45%
45%
48%
Eco Pulse® Wave 13
(December 2020)
Eco Pulse® Wave 12
(May 2020)
Recycling Pulse
(Early March 2020)
Waking the Sleeping
(Giant 2019)
Air pollution
Plastic waste
Climate change
Plastic in the ocean
While concern has backslid during the pandemic, Americans are still more
concerned about plastic in the ocean than any other environmental issue
*Circularity wording: Deforestation and Water scarcity
Source: Waking the Sleeping Giant 2019; Recycling Pulse 2020; Eco Pulse ®
Wave 12 2020; Eco Pulse ®
Wave 13 2020
When you think about the future of our planet, how concerned are you about each of these issues?
Waking the Sleeping Giant (March 2019) n=1,013; Recycling Pulse (Early March 2020) n=1,002; Eco Pulse® Wave 12 (May 2020) n=1,007; Eco Pulse®
Wave 13 (Dec 2020) n=2,006 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.

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1/2
even though plastics are believed to be easiest to turn into new products
have made changes to reduce the amount of SUP we buy
Source: Recycling Pulse 2020 n=1,002

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45%
Of brands that use a limited amount or no plastics in their packaging
have a more positive opinion
Source: Recycling Pulse 2020 n=1,002 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.

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76% of Americans say,
“recycling makes me feel better about the
amount of things I purchase or consume”
sshelton@sheltongrp.com • 865-524-8385

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But 23% aren’t confident that what they toss in
the recycling bin is actually recycled.
In 2019 that number was 15%.

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3%
8%
23%
28%
39%
None at all Very little Undecided Some Very much
67% of consumers believed companies should take responsibility for
the end-of-life disposal of the products they manufacture
Q29 - How much responsibility do you think a company has for the end-of-life disposal of the products it manufactures?
n=2,000
sheltongrp.com • 865-524-8385

Individuals have a role…
Companies have a
bigger role

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Company Commitment/Cause supported
Adidas
Makes shoes out of ocean plastic in partnership with the non-profit Parlay for the Ocean and has committed to using 100%
recycled polyester by 2024
Amazon Donates 0.5% of the price of eligible purchases to the charitable organization of choice
Apple
Powers all its offices and retail stores in China through solar panels mounted high off the ground, so the grass can grow and
local yaks can eat it
BP
The BP Foundation donated $2 million to the World Health Organization’s COVID-19 Solidarity Response Fund, which supports
medical professionals and patients worldwide by providing critical aid and supplies.
Chick-fil-A Closed every Sunday to honor the founders’ Christian faith
Chobani Recently increased its starting hourly wage to a minimum of $15 an hour, more than double the federal minimum wage
Clorox
The Clorox brand donated $1,000,000 to the ClearTheList Foundation to provide resources for teachers and students during an
unprecedented back-to-school season.
Dawn
Has donated thousands of bottles to wildlife rescue workers at The Marine Mammal Center and International Bird Rescue to
help rescue and release wild animals affected by oil pollution
Pfizer Committed to reduce its own greenhouse gas (GHG) emissions by 20% compared to a 2012 baseline
Seventh Generation Committed that 100% of its products and packaging will use biobased or post-consumer recycled content by 2020
Starbucks Committed to hire more than 10,000 refugees globally over five years
Walmart Committed $100 million over five years to create a new center to address systematic racism in society and accelerate change
sshelton@sheltongrp.com • 865-524-8385 Gain a sustainable advantage.

Some commitments move favorability more than others.
Blue bars show the “very favorable” favorability rating (a 10 on a scale of 1-10) before respondents knew what specific cause the companies
support. Pink bars show the rating after commitments were revealed (full descriptions on the next page).
Amazon
Chick-fil-A
Dawn
Apple
Walmart
Clorox
Pfizer
Starbucks
Adidas
Chobani
Seventh Generation
BP
Response to: “Please drag the bar to indicate whether you have an overall unfavorable or favorable opinion of the following companies. (0–10, Very unfavorable—Very favorable)” and
"Now you'll see statements about brands and causes or stands that they support. Please drag the bar to indicate whether you have an overall unfavorable or favorable opinion of the
following companies.” n=2,000
Percent “very favorable”
Recycled content
Recycled content (oceans)
Living wage
Human health/current
Communities
0.5% charity donation
Solar panels/natural environment
20% GHG reduction
Hire more refugees
16%
15%
14%
14%
13%
12%
11%
10%
10%
7%
7%
6%
15%
18%
22%
14%
15%
17%
14%
12%
17%
16%
18%
14%
Modest 5-yr funding anti-racism
Closed Sundays
Favorability rating post-social issue information
Initial favorability rating
Wildlife
sshelton@sheltongrp.com • 865-524-8385 © 2022 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.

To what extent do you agree or disagree
with the following: n=2,000
26%
30%
43%
44%
48%
I place more trust in large companies than small companies
Companies that do not communicate about their environmental or
social initiatives are just as trustworthy as those who do
I trust the stores I buy from to be environmentally and/or socially
responsible businesses
I trust the product brands I buy from to be environmentally and
socially responsible businesses
I trust brands that I perceive to be environmentally or socially
responsible
Only 30% of Americans believe that companies who don’t communicate
about their Good initiatives are just as trustworthy as those who do
% Agree/Strongly Agree

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11%
7%
14%
11%
16%
15%
24%
20%
28%
27%
34%
33%
39%
23%
13%
13%
15%
18%
19%
24%
25%
26%
31%
31%
34%
35%
Don't know/there's no way to know
It says so in a news or magazine article
It's sponsored or monitored by the U.S. government
My friends/relatives tell me
It says so in advertising
It has been endorsed by a reliable third party
I researched it on the Internet
It was made/grown in the U.S.A.
It's made by a company with a strong environmental reputation
It has been certified by an independent third party
The brand has a reputation for green products
It says so on the label
I read the ingredients/content/energy-savings details on the package 2020
2014
Third-party certifications are rising in importance as a top way
consumers discover if a brand is green.
Source: Eco Pulse ® Wave 12 2020 and
Eco Pulse ® 2014
How do you know that a product is
green? % Ranked in Top Three
2020 n=1,007; 2014 n=2,015
2020
2014
% Ranked in Top 3

53
Where do you learn about what
companies are doing – or not doing –
to create a better society and
environment? (Select all that apply.)
n=2,000
Here’s where you need to tell your story…
24%
2%
12%
17%
26%
27%
28%
30%
34%
None of the above
Somewhere else
Outdoor signage/billboards
In-store signage/displays
Brand/Manufacturer’s website or social media sites
Print articles or advertisements (magazines, newspapers, etc.)
Product label or packaging
Word of mouth
Television content
This means social
media, referral
programs, influencer
marketing

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41%
28%
34%
36%
22%
18%
13%
11%
15%
11%
14%
11%
19%
14%
11%
11%
8%
8%
36%
45%
33%
36%
41%
35%
40%
35%
37%
38%
34%
35%
30%
27%
26%
27%
22%
18%
16%
20%
25%
19%
27%
36%
35%
42%
36%
39%
38%
40%
34%
38%
41%
41%
48%
34%
7%
8%
8%
9%
9%
11%
12%
12%
12%
12%
13%
13%
18%
21%
21%
21%
23%
40%
Strangers
Advertising
Press
Congress and the Senate
Large companies
Courts
Certifications on labels
Small companies
Neighbors
Books
Schools and the educational system
Documentaries
Churches
Police
Scientists
Members of the military
Friends
Your own family
Consumers place the highest levels of trust in family, friends,
military members, scientists, police, and churches.
Source: Eco Pulse® Wave 13 2020
How much trust, in general, do you have in the following? n=2,006

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Raters and investors

56
What ESG raters are (typically) looking for
GHG Water …
Policies/Goals
Actions
Results
Environment
D&I H&S …
Social
Risk
Mgmt
CEO
Pay …
Governance
Exposure
Material topics and risk exposure
Maturity of Management
Policies/Goals, Actions, Results
Disclosure
Private responses and public reporting
Controversies and other external data
News reports, employee reviews, patent filings
1
2
3
4
4 Levers Relevant topics for each industry

57
Focus topics will vary by industry
• Climate Risk Assessment
• GHG Goals
• Energy/GHG data, often
through CDP reporting
• Water
• Waste
• Resource Efficiency
• Diversity, Equity, Inclusion
Policy and Metrics
• Human Rights
• Labor Standards
• Ethics / Compliance
• Supplier Code of Conduct
• Risk Assessment
• Audit results
• Product Portfolio development
• Product Impacts, e.g. Lifecycle
Assessments
• Industry specific expectations
• Oversight, Board
Independence
• Management Incentives
• Shareholder protection
• Risk Management
• …
Climate Environment People
Supply Chain Product Governance

58
Types of information ESG raters use
Data disclosed by
company (publicly or
privately)
Data on individual KPIs
estimated by a 3rd party
Issue specific external
risk factors
NGO reports, news,
controversies, external
data
Example:
Energy intensity
disclosed by company
Example:
Scope 3 emissions
estimated by TruCost (part
of S&P)
Example:
Financial risk of a “plastic
fee” regulation
Example:
Employee reviews on
Glassdoor.com
Inside View Outside-In View
easier to influence harder to influence
Disclosed ESG Data Inferred ESG Data External Factors Alternative Data

59
MSCI ESG Ratings – data sources
Illustrative only Gain a sustainable advantage.

60
Success factors to improve ESG scores
Ø Continuous ESG progress, and specific and comprehensive disclosure
of …
Ø Management approaches for all focus topics (policies, systems)
Ø Goals
Ø Actions and Progress
Ø Metrics
Disclosure-based
Ø Comprehensive, tailored responses to specific questions
Ø Often evidence is required, such as:
Ø Reference to public disclosure
Ø Internal documents to be uploaded as attachments (policies/procedures,
presentations, action plans, photos, …)
Questionnaire-based

61
Prioritizing action items to improve scores following a
gap analysis
high
Relevance
Resources
required
low high
Low-hanging fruits
Assess feasibility
Categorize action items
û
ü ü
?
ü
Disclosure only
Easy Wins
Heavy Lifts
Out of Scope
Cannot be influenced without
changes to the business model, e.g.
exposure scores
Information is available, but not
public yet
Information can be put together, often
tweaking an existing processes/KPIs
(e.g. update Human Rights policy)
Project required to address issue
(e.g. build responsible sourcing
program)

62
Metrics Map – a tool we use to understand overlap
between raters

63
State Street ESG Data Platform added

64
Blackrock’s ESG Engagement Priorities for 2021
Source: BlackRock; S&Z

65
+
Baking sustainability into
your brand platform &
framing your ESG story at
different levels

66
+
Start with a communications
construct to unify your story and
bring it to life

Create
Prescribe
Why complimented by what
Narrative
Story with some supporting detail
Sentiment
Themes/Pillars
Why
Umbrella
Captures tone not specifics
Value Proposition
What
Details, features and aspects
Category and Bucketing of all
supporting detail

68
You want to craft and
communicate a sustainability
story that supports the brand
story, is differentiated from
competitor stories, and is
compelling to stakeholder
audiences – and delivered on
a consistent basis in engaging
ways.

69
For example:

70
The Papa John’s brand story…

71
…is clearly connected to the sustainability story…

72
Execute Expand
Launch
…and it comes to life in ongoing content

74
The Rheem brand story…

75
…is clearly connected to the sustainability story…

76
…and it comes to life in ongoing content

78
+
Leverage your communications
construct for Reporting and Digital
Content that speaks to multiple
audiences

79
+
Nachhaltigkeits-
Reporting
ESG
Performance ESG
Disclosure
Investors, raters and experts – Annual
Report and comprehensive Sustainability
Report; web content
Consumers/Customers – Website, social
media content, digital campaigns, point-of-
sale engagement, sales collateral
Employees – Intranet, communication guides,
trainings
Leverage your Comms. Construct to communicate
your performance to multiple audiences

80
+
Divide and conquer! Experts look for details, while the consumers often appreciate
engaging content.
1.
2.
3.
4. Project management is a key success factor! Starting early, and communicating clear
plans & expectations will help you manage a broad coalition of contributors.
Focus on progress! Define sustainability through material topics, set goals and measure
progress to drive relevant content.
Good reporting philosophy
Focus on key messages! Don’t view the report as an end in itself. Be guided by what
the audience wants to know, not what the company likes to report.

…and at a deeper level for ESG raters and investors
Your ESG-related website copy can work at a
high level for a consumer…

85
+
Case Study: Bosch 2020 Sustainability Report
Chapter Summaries
Granular insight
1
2

86
+
Online-
Stories
Timely Communication
Transparency
for experts
Highlights and
Big Picture Strategy
Bosch
Sustainability
Performance
spotlights factbook
How everything works together

87
+
Case Study: Hapag Lloyd 2020 Sustainability Report
Magazine-style highlights Detailed GRI reporting
1 2

88
+
Let’s take a quick bio break
Be back in 15 minutes

89
+
Your takeaways
This is the workshop part!

90
+
Here’s what you’re working on together
• Pick one of the companies represented at your table.
• Discuss and decide who the most important ratings agencies are for that
company.
• Discuss and decide what the key watch-outs are for the company and
what actions, commitments and proof points the company needs to have
in place to appeal to consumers, employees and investors/ratings
agencies.
• Work together to begin fleshing out a communications framework for the
sustainability story – direction for the lead message and pillars.

91
+
DEGREES OF INNOVATION DEGREES OF EFFICIENCY DEGREES OF LEADERSHIP
Sustainability Framework
A Greater Degree of Good
Designing for Zero Waste
We are focused on innovating with intent,
engineering solutions with lifetime
sustainability in mind—from material
selection to smart features to responsible
recycling
We strive for operational excellence,
working smarter and more sustainably to
consume fewer resources, generate less
waste and ensure simpler, safer processes
We hire and inspire our teams to be next-
generation thinkers and responsible
stewards of our industry, the greater
community and the environment
RALLYING CRY
KEY COMMITMENT
PILLARS/REASONS
TO BELIEVE
SDG ALIGNMENT
VISION
TIME-DATED
GOALS
Launch a line of heating, cooling and water
heating products that boast a 50%
reduction in greenhouse gas footprint.
Reduce greenhouse gas emissions by
50% and achieve zero waste to landfill in
our global manufacturing operations
Train 250,000 plumbers and contractors
on sustainable products or sustainable
installation and recycling best practices
EXAMPLE

92
+
Discussion
Suzanne Shelton
865-524-8385
sshelton@sheltongrp.com
Christopher Haasen
347-778-2748
haasen@sandz-co.com

93
+
Thank you!
Suzanne Shelton
865-524-8385
sshelton@sheltongrp.com
Christopher Haasen
347-778-2748
haasen@sandz-co.com

94
+
MSCI ESG Ratings
added

95
+
Sustainalytics ESG Risk Rating
added

96
+
Refinitiv ESG company scores
added

97
+
ISS ESG Corporate Rating
added

98
+
S&P Global ESG Scores
added

99
+
VigeoEiris (Moody’s) ESGAssessment
added

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