Businesses can leverage their green initiatives as a strategic marketing tool to drive brand equity, consumer engagement and even investor confidence, says Ronelle Bester, Founder and Account Director at Red Ribbon Communications.
Continued investment in sustainability for businesses remains an essential part of all long-term commercial strategies. Even though these commitments might have lost some public attention during the 310 consecutive days South Africa didn't have to endure load shedding, the rude awakening the country experienced on Friday, 31 January, when the lights went off again not only validates the soundness of ESG-strategies but presents a golden opportunity to showcase it to consumers and communicate its far-reaching benefits.
The last week of January was a rollercoaster ride for South Africans when it comes to Eskom: First, the utility was denied its request to implement a staggering 36.15% electricity tariff increase for 2025 (now 12.7%), and then, within 24 hours, stage three load shedding was announced.
That Friday became a stark reminder that even 310 days of being load shedding-free did not change the precarious nature of South Africa's energy supply, and despite the triumph of public pressure over enormous tariff increases, the smaller 12.7% rise still represents nearly a threefold steeper increase than the reigning inflation rate.
But what does this sudden chain of events mean, and make possible, for businesses' public relations?
Content — In Context — Is King
Businesses have spent at least the last five years insulating themselves from crippling power outages that upheaved operations and cost companies millions — and very much so in the public eye.
With self-generation through massive uptake of commercial rooftop solar and even wheeling agreements, investment in going green and off-grid pioneered a nationwide mind-shift towards sustainable, renewable energy independence to the benefit of both businesses themselves and consumers alike.
Whereas the initial public attention that pioneering businesses garnered was mostly centred around the consumer benefits of their uninterrupted operations, now the opportunity for spearheading the narrative amidst renewed attention can be anchored around both the environmental and cost-saving nature of their sustainability investments.
Five ways to lead and communicate sustainability commitments for positive change and a marketing edge:
Cost Savings as a Marketing Tool
As the energy crisis hit disastrous levels from 2019 onwards, listed companies' annual results were littered with skyrocketing operational expenses, largely driven by emergency adoption of large-scale diesel generators to ensure uninterrupted operations during power outages.
Diesel expenditure for various listed companies ranged upwards of R10-billion in many instances.
And that unexpected pillaging of balance sheets ended up having to be passed on to consumers in the form of price increases.
With increased energy independence through strategic investment in sustainable and renewable energy for their own use, there is less pressure on companies' cost drivers and therefore more capital available for other strategic uses.
Lower energy costs, for example, can now not only be marketed as both sustainable and beneficial to consumers but additionally be reinvested into marketing and innovation.
Businesses can also then showcase their topical, long-term sustainability goals as intimately tied to profitability.
Better Media and PR Opportunities
Renewable energy adoption increases the chance of media coverage, especially now, while the iron is hot.
A country reeling about the sudden return of load shedding after repeated assurances that the worst was behind us, means businesses adopting renewable energy for their use is not just breaking news again, but widely attractive to even specialised news publications.
The pro-business narrative that failures of state-owned enterprises fuel, adds financial news angles, industry specific articles and adds opportunities to spearhead the benefits of ESG strategies within the public eye as a solution to state failures — all while aligning with global trends and garnering even international attention.
Improved Investor and Stakeholder Relations
Investors have been influenced by the ethical motivations for investing in sustainability for some time now.
ESG reporting remains the standard by which companies can be assessed as good targets for such investment flows.
Amid the dramatic shift away from sustainability under the new administration in the US, these investors — facing political blockages to investing in ESG commitments with the US — have to increasingly look beyond their own borders.
Widely publicised and proud commitments to ESG principles have rarely been so well-positioned to garner investor attention from a global perspective.
Stronger Consumer Engagement
Such topical commitments to sustainability in the midst of renewed domestic crisis warnings hold major appeal to fervent public champions of renewable energy and sustainable business practices.
The burgeoning mass of eco-conscious customers and consumers are eager to identify and support companies that share these views of the future of ethical business.
Additionally, this narrative then provides a multitude of authentic storytelling opportunities for campaigns and content marketing with massive reach.
Increased Employee Satisfaction and Attraction
Bringing a business's commitment to ESG principles into the public eye also helps attract top talent who are increasingly looking for purpose-driven careers — especially among highly qualified young professionals.
Aligning company values with sustainability lays a foundation for a workplace culture well-positioned for driving morale to levels that synchronise employee well-being with a business's efficiency goals.
For more information, visit www.redribboncommunications.co.za. You can also follow Red Ribbon Communications on LinkedIn.
*Image courtesy of contributor