ESG Exchange: Winning over non-believers
Inflexion’s third annual ESG Exchange brought together a diverse panel of experienced ESG professionals to discuss the merits and challenges of progressing sustainable frameworks. Winning over non-believers was an important starting point.
Convincing the powers that be is often the first critical step in getting things moving for any journey – and it can be particularly challenging for ESG. “All the technical info in the world is worthless if you can’t bring stakeholders with you,” Jennie Galbraith, ESG Director at Inflexion, stressed.
Convincing some can be a real challenge, with no single right or wrong method. One company had focussed on Responsible business for many years but found their Sustainability and ESG strategy became much more focussed and critical when the business floated, in part due to the required mandatory reporting which highlighted the importance of a focus on all areas of ESG. “This helped us secure greater buy-in and understanding from key stakeholders,” recalls Kirsty Rogers, Partner and Global Head of ESG at DWF, a global law firm and alternative legal services provider backed by Inflexion since last year.
The power of data
Conducting a materiality assessment to evaluate risks and opportunities was instrumental for DWF in going on to gain executive committee support. It would help determine the way forward and create clear areas for data collection. “Highlighting the importance of minimising value loss underscored the integrity risk of not aligning with ESG principles." And the risk is very real for DWF: its integrated legal and related professional services serve c. 5,000 firms, including large global blue-chip corporations.
Maintaining accurate and reliable data is essential for driving sustainable practices and enabling business buy-in and integrity. This is strongly endorsed by Dr. Melissa Barrett, Managing Director, Corporate Impact & Practices at dss+, a Switzerland-based consultancy that helps clients to reduce risk, transform culture, maximise impact and improve sustainability by operating more responsibly. “A significant portion of our value creation comes from consulting with our clients. Our team is passionate about saving lives and fostering a sustainable future. We walk the talk around value creation – it’s not just impact for clients but how we can do more together." The business has been growing with Inflexion’s backing since 2023.
“Educating stakeholders and presenting clear data can convert sceptics," stresses Dean Pearson, EHS Manager at Rosemont Pharmaceuticals. The liquid pharmaceuticals specialist was carved out of its listed US parent by Inflexion in 2020 and ESG has been a big part of its growth journey since independence.
Beyond numbers
Quantitative data can be effective, but it doesn't work for everyone. “Aligning with ethical motivations can also be compelling,” Jennie points out, providing an example of parents of Gen Z and millennials who may feel inspired by their children’s views. “The challenge lies in convincing the non-believers. What strategies can we employ?"
Balancing sceptics’ values with the broader impact can be persuasive, according to Melissa. "Identify whether their resistance stems from language, political views, or past experiences which can give someone preconceived ideas. Tailoring the approach to address these concerns can improve influence."
ESG is now integral to many businesses’ strategies. Kirsty shares her experience: “Without a robust ESG framework and a diverse team, companies risk losing clients as more businesses prioritise sustainability in their own supply chains.”
As this grows as a priority for more and more businesses, we are reminded of other areas which graduated from peripheral to primary importance. "Similar to how health and safety shifted from being seen as a roadblock to gaining importance over time, ESG is now recognised for its positive impact on profitability,” Dean points out.
Culture clash
All the panellists’ different experiences were united in the importance of tailored communication and strategic alignment in promoting ESG initiatives effectively. This is because there are cultural sensitivities around the term ESG.
Local values, regulations, and even social norms can impact how it is perceived. For instance, environmental concerns may dominate in Europe, while social issues such as labour practices might be more critical in Asia. In the US for example, ESG is highly politically charged – particularly in the run up to a national election – and so the term is often avoided, while in China, the focus is on product innovation around the matter.
Adapting language to cater to such nuances is vital in creating more meaningful engagement with local stakeholders. Culturally aware ESG practices which address diverse expectations can drive sustainable, inclusive growth and enhance corporate reputation.
Each Inflexion investment, regardless of size or stake, has full access to Inflexion’s value acceleration support which includes ESG strategy, international expansion, M&A, digital enhancement, talent management, and commercial effectiveness.
Inflexion’s ESG toolkit provides the portfolio with a suite of support to help them progress their ESG journeys and drive value. It's designed to upskill the portfolio on relevant ESG topics, share best practice, and enhance collaborative opportunities.
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