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How integrated communications supports sustainability

Aligning your communications will help your sustainability ambitions make real progress

Originally published by The Purpose Business, 30 May 2019.


‘If you want to go fast, go alone. If you want to go far, go together.’


In politics, business and even novels, this phrase is frequently quoted. Whilst its origin may be debated, the phrase fulfils a recognition among us that collaboration is a good and necessary thing if we want to achieve long term success. If you agree that long term success can be defined by a sustainable future, it’s unsurprising that the phrase has been quoted in sustainability contexts too.


Sustainability is often referred to as a journey. Because, it really is. Whether we like it or not, the world is not stopping still – we are forced to move forward through time, and we know now, that our actions today have direct and immense consequences for the future survival of humankind and other species on this planet.


Working together is recognised as a positive, indeed necessary, approach – with different companies and organisations, and even within and between industry sectors. The growth of multi-party coalitions such as We Mean Business, the Alliance to End Plastic Waste and Hong Kong’s Drink without Waste are evidence of this as well as of course, the 17th Sustainable Development Goal being Partnerships for the Goals.


Collaboration is not just external facing. Working across business units and teams within organisations is essential. It is no longer sufficient to a have a single team, sat aside from core business, who ‘do good things and coordinate philanthropic endeavours’ on behalf of the organisation while the rest of the company carries on regardless. It’s clear that this just doesn’t add up if you want your business to be strategic. Sustainability can only truly help future-proof your business when you embed it deep into your core business strategy and give it the platform to permeate throughout all your operations.


And the same is true for your communications.


Resourcing independent efforts for a myriad of communication platforms just doesn’t make sense. Whether it’s a C-suite speech, an investor presentation, staff briefing, marketing campaign or your corporate LinkedIn page – all should be aligned to make sure your communications investment is reaching its objectives in the most effective and efficient manner. And crucially, when it comes to sustainability, failure to organise, prioritise and align your communications can undermine the authenticity of the message you are trying to convey.



So, point 1. Tell one story.

Your audiences (or ‘stakeholder groups’ in common sustainability parlance) are fluid, with people moving in and out of them during the course of their day. If your investor hears one message at a briefing but she sees another, perhaps even contradictory, message in an advertisement, at best you have confused your audience. At worst your message is seen as inauthentic and the trust in your organisation is diminished.


How do you tell one story? This is where a robust, communications structure comes in with an over-arching message and a framework for your strategic priorities. A hierarchy helps organise your communications in a way that provides the necessary context for people to quickly, clearly and fully understand your messages. All the relevant communications functions in your organisation need to be represented in this key document, including media relations, internal communications, marketing, public affairs, website, social media etc.


The people that you are wanting to communicate with need to be at the heart of your thinking. Be clear on your objective – what you want people to know, do or feel; consider the channels, messages and assets that are needed to make this happen and how you will measure success over time.


‘What’s different about the world today is that, in the past, you could have a different message for investors, people who cared about the environment or your employees,’ reflected Jeff Harmening, chairman of the Board and CEO of General Mills, at a recent conference, ‘Today, the message has to be clear and be the same.’


The exercise of preparing an integrated communications plan can often serve to build clarity and understanding of your sustainability strategy. As people reflect and deliberate on the meaning of your sustainability ambitions and activities, and consider what these mean for different audiences – the impact of your strategy will likely gain strength and momentum.



2. Tell the whole story

The world clearly doesn’t have all the answers and actions in place right now for a sustainable future, yet the appetite to understanding what businesses are doing is demonstrated by a rise in investor interest and a growth in the sophistication and extent of ESG reporting.


Your communications should demonstrate intent, extent and progress. Considering again, the principles that sustainability is a journey, and that trust is key to successful sustainability communications, it is essential that the work – not just completed results – are shared. The temptation to remain silent on a subject until the result is delivered, gift-wrapped with sparkles, will not help build trust. ‘Candor, honesty and transparency are all powerful trust-building elements’ reported the 2019 Edelman Trust Barometer. And importantly for sustainability, transparency supports the much need collaboration that the world needs to succeed.


This may feel uncomfortable for some, but it is crucial. Your message should outline the intended direction of travel, and regular communications should demonstrate the actions that you are taking to support this journey. Remember, it’s absolutely ok to take small steps.


Your communications also need to acknowledge the difficulties and challenges that your business is facing. The sustainability challenges in the world are complex and no one has THE answer. By sharing the intent, extent and progress of your strategy, you give context to the challenges and can communicate your approach, on your terms, and sharing will help secure the trust and momentum you need to pursue your sustainability goals. As the Global Reporting Initiative (GRI) notes, ‘increased transparency leads to better decision making, which helps build and maintain trust in businesses and governments.’



3. Show don’t tell

Your communications should demonstrate the world that you want to live and work in.  Too often, communications lose impact because their context or content is misaligned to their message.


Examples such as promoting a ‘save energy’ message on a massive digital screen outdoors, having an all-male panel talk about gender diversity and building ‘green walls’ out of plastic plants, are sadly all real and all serve to undermine the sustainability message that the organisations were trying to convey.


‘Show don’t tell’ is particularly true with images. If you have a strategy to reduce single-use plastic, populate your image library with pictures that show people with re-useable water bottles, glasses and crockery, rather than the single-use plastic water bottles or coffee cups you are trying to avoid. If a picture paints a thousand words, then make sure you use images (and resources and time) wisely and focus on what you do what people to do. Equally as powerful, your imagery has a huge opportunity to reinforce the positive future you are working for – whether that be wind turbines on a horizon, or gender parity in the workforce, every editorial decision you make demonstrates intent. Organisations like the Conscious Advertising Network provide guidance for advertisers and agencies on how to consciously change the way they operate and the content they produce, for better communications.



The environmental and social challenges that the world is facing need collaboration on an unprecedented scale if we are to secure a sustainable future. Committing to an integrated approach to your sustainability communications will strengthen your strategy and its delivery – and this work is too important to not give it every tool in the box.

Sustainability Communications: Telling your ESG story

Can sustainability be part of your corporate story?

Originally published by The Purpose Business, 4 October 2018.


Highlights of a Breakfast with Purpose  session that served up a healthy portion of communications insight and a double shot on the importance of storytelling.


Being able to communicate your corporate ambitions and activities in ways that really resonate with stakeholders has never been more crucial, yet it’s an opportunity that many Hong Kong businesses are not fully embracing.  This is particularly true in sustainability communications, and what TPB’s recent Breakfast with Purpose, hosted by Brunswick Group, set out to investigate.


The environmental, social and governance (ESG) work that companies do provides rich sources of inspiration for compelling corporate narratives. At the recent Breakfast with Purpose, Zoë Arden of the Cambridge Institute for Sustainability Leadership (CISL), shared inspiring insights on why and how successful companies were using sustainability as content for strong communications.


Storytelling is a leadership skill

As the CISL research Rewiring Leadership revealed earlier this year, storytelling is an under-utilised, but essential, skill for leaders. The study notes that leaders need to “cultivate the ability to use personal and institutional voices, and harness the power of storytelling” if they are to influence change at a system level. To have real impact, this is where corporate ESG/sustainability strategies need to operate.


By looking at global and regional examples, and examples very close-to-home for all our guests, Zoë guided TPB’s guests to discover the elements of a purposeful story including authenticity, weekend language, the ‘why’ and meaningful data.


“A purposeful story will engage stakeholders and drive change,” said Zoë, “but let’s not pretend it’s easy. You have to really understand your audiences and focus on real ingredients that make your story relevant to your audience.”


How is Hong Kong telling ESG stories?

In the panel discussions that followed, industry leaders examined sustainability communications in Hong Kong today. It is clear that whilst there a few pockets of good examples, Hong Kong is not representing itself well on the global stage when it comes to sustainability communications.


This matters in terms of the city’s reputation. It matters because companies are missing out on the advantages that come with communicating sustainability well. And it is crucially important because the scale of the ESG challenges that the region faces is massive, and while there is very little progress (even on high-profile global agendas such as the Sustainable Development Goals (SDGs) where Asia-Pacific is on a trajectory to achieve just one of the 17 Global Goals by 2030), businesses are not using the tools we have collectively as a force for good.


Whilst Hong Kong has some unique cultural issues to contend with, not least the common perception in the city that failure is the ultimate taboo, our panel were keen to identify ways to cut through to help Hong Kong companies amplify their sustainability communications.


1. Build confidence and capacity

“There is a crisis of confidence in sustainability and communications teams in Hong Kong,” observed Ashley Hegland, Sustainable Development Advisor at Swire Properties, “to succeed we need to build up confidence and capability.  When companies talk about sustainability, it’s traditionally been from the technical perspective, an engineer talking about a green building. We know now that we need to do it differently.”


Sustainability and communications professionals should spend time together to understand how each can help the other succeed.  A recent State of Sustainable Business survey reported that less than 20% of sustainability professionals see product development or marketing communications colleagues as key for collaboration, despite identifying consumer demand as a driver for sustainability.


2. Know your audience

Hong Kong may not be overtly practised at speaking about sustainability, but audiences’ expectations are steadily growing, particularly among consumers and investors.


“ESG issues have more resonance in Hong Kong today than before,” noted Catherine Feliciano-Chon of marketing and communications consultancy CatchOn, “This is largely due to consumers. They are asking, in fact they are making demands of, businesses to be more responsible and transparent.”


Hong Kong’s businesses cannot be immune to the global trends of investors, and their interests across ESG. Major investors, such as BlackRock, are requiring that every company must “show how it makes a positive contribution to society.”

“If we really want to see impact in sustainability communications, we have to focus on the audience,” noted Patrick Eastwood of creative communications agency MerchantCantos, “we need to connect on a human level,  through their hearts.”


3. Love your data

Data can be empowering. It provides credibility, shows progress and demonstrates transparency – all things that stakeholders believe are important and ask to see more of. Understanding the data which is going to resonate with your audiences and being able to share it in a way that is meaningful to them, can lift your narrative.


Hong Kong businesses may traditionally feel more comfortable waiting until stories are complete and polished before sharing, but corporate sustainability work is never complete. It is therefore vital that we find ways to be more comfortable, or at least more comfortable being uncomfortable, communicating activities that are still in progress.


4. Find ways to cross silos and hierarchies

Whilst some companies set up corporate-wide working groups specifically to look at how communications can support and strengthen their ESG strategy, not all organisations have internal structures that makes cross-team working simple. You may need to hunt for like-minded people who want to achieve the same goals.


Hong Kong businesses traditionally rely on a top-down approach when it comes to internal communications, but this doesn’t reflect how people actually engage with information at work. Board level engagement is of course vital to ESG activities, but listening to and engaging employees as advocates is essential if you are to be a truly sustainable business. Where internal infrastructure is not there to support you may need to ‘go Guerrilla’ to find your influencers’ influencers who can deploy your message to best effect.


5. Share stories 

We all share stories every day. The smartphone that we carry in our pocket captures the moments we need to inform our friends and families of something important, to remind them of something, to introduce them to someone or something. This is the mindset to bring to sustainability communications – this is what  your audiences understand and respond to.


We have been sharing stories our whole life, and now it’s time to bring it into our work. It’s clear that storytelling is a skill that will define the leaders of tomorrow, and as the Breakfast with Purpose concluded, “Grown up businesses share stories.”


Download the one-page summary Storytelling with Purpose.


Sustainability communications: learning from ESG reporting

Hong Kong Exchange’s analysis of ESG reports reveals advice for good sustainability communications

Originally published by The Purpose Business, 1 August 2018.


Summer brings a mass of Environmental, Social and Governance (ESG) reports from Hong Kong listed companies and you’d think for many corporates, the huge amount of effort that creating the report involved would be exploited through their corporate communications. Yet time and again emails, social media accounts and press releases announce their arrival in minimalist – if not reductionist – style: ‘a report was published’. Hang on a minute … hit pause … this is ESG – the big stuff set to have the most tangible impact humankind will ever realise, survival – such work is surely worthy of a more considered communications approach?


The Hong Kong Exchange reviewed the ESG reports of 400 listed companies published to reflect activities during the first year of mandatory reporting, financial year starting 1 January 2016. 

The Exchange’s report serves as a useful benchmark on corporate ESG activity in Hong Kong, and the areas highlighted by the Exchange for improvement can be seen to indicate both the direction of travel and ambitions of the Exchange. One of the themes, I see running through the report is the articulation of ESG activities – and the findings reveal some interesting and consistent messages on the importance of good communications within reports themselves, and each observations also provides a good grounding for planning corporate communications that really engage a diversity of today’s stakeholders and audiences.


Tell it like it is - and make sure you tell

Among the Exchange’s analysis the report identifies areas for improvement, and the first of these is communication.


The Exchange asserts that ‘the primary function of ESG reporting is to communicate a company’s commitment and approach to ESG reporting and the process by which it identifies relevant ESG areas.’ Whilst no company should be reliant on a report as a sole or independent communication channel, it is clear that there is an expectation and need for companies to ensure their audience – ie their stakeholders – understand what and why their business is doing with regard to ESG issues.


As the Exchange reports notes, ‘effective communication with stakeholders is crucial to a company’s success’, and this rings true beyond your ESG report. Clearly every company has a multitude of different stakeholders with differing influences and dependencies on that business. Identifying your different stakeholder groups is not only crucial for your materiality assessment, but also a critical foundation for understanding and building effective corporate messages and communications channels. Stakeholder identification and engagement strategies are common areas where organisations value working with external, specialists such as TPB.


Keen to be compliant, clients sometimes ask us, ‘Are we doing ok?’ A common response includes, if you are articulating your business strategy, clearly demonstrating your processes for identifying your present and future risks and opportunities, and explaining your plans for addressing these through your business, then yes. The key is in the communication as well as the thinking and the doing. Without the communication, no-one knows about the thinking and the doing, and without communication, progress and growth on the thinking and doing is obstructed.


Hong Kong companies are not alone in being called out for this – the Global Reporting Initiative (GRI) itself, when evaluating its previous sustainability report received feedback that they ‘should be more explicit about how we engage with our …and ensure that we made engagement a part of our day-to-day business practice.’ The emphasis on communications is consistent, and the message that consistent communications builds a better business is clear!


Resourcing ESG responsibility

Responsibility for a company’s ESG activities ultimately lies with the Board, and it is for this reason that the Exchange emphasizes the value and importance of having Board members involved in ESG reporting. ‘Through scrutinising the issuer’s environmental and social policies and data, the Board will also be in a better position to evaluate and respond to the issuer’s environmental and social risks and opportunities.’


The Exchange also stresses the need for clear lines of delegation from the Board to an ESG working group that has authority, knowledge and resources to deliver on its terms of reference. Sustainability is a rapidly developing professional specialism, and it is here that many organisations will righty seek the support of specialist sustainability agencies such as TPB. A useful measure in successfully engaging a sustainability consultancy would be openness for knowledge sharing, so whether through for example a Boardroom briefing, a strategy stress-testing session, or an employee relations workshop, the in-house appetite, understanding and capacity around ESG is developed.


Building organisational capacity also helps ensure that your company gains confidence in speaking about sustainability from eg the Boardroom to the customer-service centre. The more your organisation speaks about the ESG issues that provide your particular risk and opportunities, the stronger and more assured your corporate sustainability voice will become.


Get out of the box 

Another strong message from the Exchange is that there is no place for box-ticking: ‘A box-ticking approach to reporting should be avoided as it would not add value to the process and would deprive the company and its stakeholders of the benefits of ESG reporting.’


If you are ticking boxes for ESG reporting, not only are you failing to look at risk management properly, you are defining yourself on someone else’s terms. What makes your business unique, different to your peers and competitors cannot be defined if you think inside the box, and definitely not inside someone else’s box. Understanding your unique offering in the marketplace is paramount to business success.


In recent years companies have increasingly sought to understand and articulate their purpose, to understand the ‘why’ behind their market offer. For many, this is not a quick nor easy process but there is no doubt that along with the other benefits of purpose-focused thinking, it provides a particularly strong basis from which to identify and plan an ESG strategy that is truly relevant.


One size fits nobody - context, materiality and communications 

‘It is important to set out in the beginning of the ESG report the company or the Board’s commitment to ESG and management approach and explain how they relate to its business. It should also include the Board’s evaluation and determination of ESG risks and how it ensures that appropriate and effective ESG risk management and internal control systems are in place.’


‘How they relate’ is a powerful phrase, and setting the time to work out how your ‘how’ is articulated in a tone and language that is authentic to your company voice, is time invested in a valuable communications tool that will stand you in good stead.


Given the emphasis on context it is somewhat surprising that , there was no explicit mention of the Sustainable Development Goals (SDGs, or Global Goals) in the Exchange’s analysis. Yet it is hard to imagine a listed company, that is not impacted by or able to contribute to, the globally agreed targets to end poverty, fight inequality and stop climate change.


The UN has reported that Asia-Pacific needs to ‘significantly step up’ its efforts with regards to the SDGs, and that as region it is currently ‘on track to meet only one of the SDGs’.

Whilst the 17 SDGs and the 169 targets and 230+ metrics that support them can seem overwhelming at first, no one private or public body is expected to solve the world’s biggest problems alone. The SDGs are a framework for focusing on your organisational ‘how’ – for measuring and communication impact, and crucially to collaborate across industries, sectors and geography.


 ---

Maybe in time we’ll begin to see companies in Hong Kong engaging stakeholders with messages about the impact they’ve made, rather than notifying an echo chamber that, ‘a report was published’. Let’s hope it’s sooner rather than later, as the issues at the heart of sustainability strategies are urgent, and the world will not make the collective progress it needs to if we can’t collaborate, learn and thrive.


In Hong Kong, I’ve observed that organisations are often keen to wait until something is complete, boxed and gift-wrapped for perfect delivery before they talk about. This misses a key point in sustainability communications – as with all things sustainability – that transparency builds trust. Sharing your ambitions, direction, and challenges demonstrates authenticity, as well as providing more opportunities to engage and learn from your stakeholders. It will help to build stronger communications for your company and strengthen your reputation beyond your ESG report.

Impact Investing

What does it mean for Hong Kong?

By Fiona Donnelly of Red Links & Siân Wynn-Jones of Think Wynn

(Originally published  by The Purpose Business, 25 October 2017.)


What is impact investing?


Impact investing concerns investments that seek social as well as financial returns. Also called ‘social finance’, Dr Alex Nicholls, Professor of Social Entrepreneurship at the University of Oxford, explained at a recent BritCham event, that impact investing includes both socially motivated investment and investment into social organisations.


Impact investing has been around for a long time but has seen rapid growth globally since the year 2000, due to a new wave of institutions and instruments.  Drivers for growth have been seen across all sectors and have included:

  • In the private sector, for example, there is a growth in socially responsible investing due, in part, to investor pressures.
  • In the public sector, drivers can include the need to be more efficient with the allocation of capital due to austerity measures, and the need to be more effective and operate in partnerships across boundaries.
  • In the third sector, they are suffering from a shortage in grants/donations while benefitting from an increase in social enterprises.

And the Global Impacting Investment Network 2017 report notes whilst investments with primarily social impact objectives are four times as common as environmental, investments that target both social and environmental impact objectives are popular with half of respondents.


Whilst various measures remain to curtail truly free flows of capital (from country level controls down to individual fund mandates), it is evident that is a global play: billions move internationally if the optimal time, risk or return profile is found in an investment in a different jurisdiction.


Why is impact investing important to Hong Kong?

Hong Kong continues to be a leading international financial centre according to many measures – the that “overseas investors remained a major source of funding for the fund management business, accounting for 66.3%”; the Hong Kong Exchange is ranked fourth in world for HK$ raised in new IPOs in the first half of 2017; and Hong Kong Exchange’s maturing and growing role as an “offshore RMB product trading and risk management centre for global investors”.


So given this, and recognising investor/investee needs are changing globally, if Hong Kong wants to remain a leading international financial centre, the territory will have to evolve to stay relevant and have a role in the financial markets of the future.


And this isn’t a whimsical tweak in market supply and demand… the market opportunity presented by the need for all enterprises to contribute to and play a role in combatting climate change and making development sustainable is enormous – as well as urgent.


A recent report by the Business & Sustainable Development Commission estimates that achieving the SDGs could open up $12 trillion of market opportunities in food and agriculture, cities, energy and materials, and health and well-being alone and create 380 million new jobs by 2030.

In September, Hong Kong joined other global financial centres at the first-ever international meeting of financial centres and backed the Casablanca statement, agreeing to harness their expertise to drive action on climate change and sustainable development.


Hong Kong SAR has committed to issuing a green bond next year which is commendable to lead by example, even if, as the Chief Executive has said openly, that the Government and thereby encourage others with RMB, or on the Belt, Road or beyond to do same. Perhaps what is more interesting from the new Chief Executive’s policy address is her plans to promote the establishment of green bond certification schemes and to allocate more resources to the Financial Services Development Council, which has a broader reach beyond impact investing.


What does this mean for Hong Kong business? 

Interest is already picking up, and there does seem to be a sense that if Hong Kong doesn’t change and carve out a ‘green finance’ role in the region and with Mainland China soon, then someone else will.  In addition to Government groups, there is activity in private cross-sector advocacy groups like the Green Finance Task Force, which is leading on educating and galvanising interested stakeholders.


But issues remain.
Issues such as lack of impact investing deals and opportunities; the design of business models and packaging of impact investing opportunities to align to their needs; missing soft infrastructure like advisors and client managers who can speak to this agenda; and lack of data at a meaningful level, especially that which is comparable and can quantify social impacts.


Businesses in Hong Kong clearly need to be ready to take advantage of impacting investing.  Global studies show that more than 75% of investors already consider ESG criteria, so how do you get your or understand how your investments are delivering on sustainability?


A sound strategy for a better business will always consider the risks and opportunities of the future, yet many boards are discovering that new skills and advisors are needed to realise these opportunities. Whether it’s setting strategy, reviewing materiality, engaging with stakeholders, reporting or anything else on the ESG spectrum, working with sustainability specialists can really help give your board the tools they need to lead your business and thrive in this new business normal.

Infographic: Sustainable business matters

Infographic - Sustainable business matters: the Hong Kong case (June 2017)

I've been in Hong Kong for nearly six months now, and have met some amazing people doing extraordinary work with forward-thinking companies that are realising their potential by doing right by society, environment and their bottom line.


The case for sustainable business in Hong Kong couldn't be bigger than it is right now. ESG strategies are recognised as good for business, stakeholders of all types value sustainability, and yet the city that ranks 16th in the Sustainable Cities Index achieves just 29th and 81st places for planet and people respectively. 


I'm delighted to have worked with George Primentas on this infographic that shows sustainable business matters: the Hong Kong case.


Download the infographic below and check out more of George's work at themissinggraph.wordpress.com
















Download the Sustainability in Hong Kong infographic below

SustainableBusinessHK-201706 (pdf)

Download

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