Upon reading a recent report by Smurfit Kappa Group titled ‘The Transparency Edge’, on ‘How measurement, disclosure and assurance deliver added value and strengthen corporate sustainability’, we felt that one element was missing.
To clarify, it was extremely refreshing to read a concrete report that underlines the importance of transparency to strengthen corporate sustainability, as this is a concept that we discuss and work with each day.
However, we found that the report was missing a certain element. Despite underlining what companies should communicate and why they should do it, it failed to address how they should do it.
It showed us that there is value in communicating your sustainability, but we see a lot more value in doing so in a creative and effective way that sticks in consumers minds.
Therefore, this article outlines exactly how that can be done, supplementing the incredible research with the creativity needed to action effective change around it. In other words, our thesis is this: Your company may take positive action towards sustainability, but if nobody knows about it, your impact is not as amplified as it could be.
The Transparency Edge
The report covers four sections, which we will first discuss in detail for context, and then break down how companies could communicate this effectively, so that they can reap the rewards for doing the right thing.
Setting the Direction:
Firstly, given the gravity and complexity of the challenges ahead of us, companies need to create a long-term vision, as well as take short-term actions to effectively tackle what is ahead of them.
However, only few businesses, 11% according to the report, have a robust strategy in place with many ongoing sustainability initiatives across their business. The report therefore distinguishes these businesses as ‘Sustainability Leaders’.
We then see the biggest barriers that businesses determine to improving their sustainability initiatives, with two key issues coming to the surface. These are highlighted as ‘Inconsistent access to data’ and ‘Lack of supply chain transparency’. Despite then linking this to financial incentives, we would like to focus on how businesses can still effectively communicate their sustainability despite these issues.
Communicating your ‘Direction’ effectively
The core issue with these two factors is communication.
Firstly, there are very few companies, if any, that hold absolutely every single data point necessary to communicate their sustainability strategy fully. For example, Unilever, admit that they have incomplete data on the sustainability of their wastage, sustainable sourcing and greenhouse emissions. However, they still openly share that this is a challenge that they are working on, and set ambitious targets for the future.
Therefore, it comes down to the main word of the report, transparency. It’s better to communicate the areas that you do know, and that you are unsure on data of certain areas, than to report nothing at all.

This directly links to ‘Lack of supply chain transparency’. We see later in the report that only 12% of businesses measure their Scope 3, compared to 61% for Scope 1. Obviously, to effectively report the former, this would involve an extremely detailed supply chain audit.
Again, businesses like Danone, who are seen as strong in sustainability by many, make it no secret that they struggle to measure their scope 3, showing that this is also an issue for them. Talking about the challenge of their indirect impact, and their need to collaborate with partners and stakeholders, this shows how this communication is done by the experts.
More importantly, a great example to consider is The Body Shop. For example, they communicate the fact that rather than knowing every detail about their supply chain, they are constantly doing their best to audit it, and what they plan to do in the future. They stated in their 2020 Sustainability Report that ‘We know that our supply chains are complex, and there is still much work to do to ensure that they are fully sustainable and ethical. This is why we’re continuing to audit our suppliers and take action to address any issues identified. We’re also working on initiatives to help our suppliers improve their sustainability and reduce their environmental impacts’.

Although they may not have full transparency now, their aim to achieve it, and sharing this effectively, has been more beneficial for their credibility, than the alternative of saying nothing.
Clarity on Net Zero
Clarity on Net Zero is seen as the next pressing topic, given that the challenge, and the communication of said challenge, is a top priority for building credibility in sustainability. Particularly, for businesses, understanding how overall business and ‘Sustainability Leaders’ compare in how they are undertaking this journey is extremely valuable.
For example, leaders in sustainability invest in four main areas to help meet their targets. These are ‘Data and analytics technologies’, ‘Packaging innovation’, ‘Green investments’ and ‘Cross-sector partnerships’. An interesting point to note is that Sustainability Leaders give a lower priority to ‘Externally conducted sustainability audits’ than all of businesses surveyed.
Communicating a focus on Net Zero
From a marketing communication standpoint, there is a lot we can learn from this.
Firstly, it’s evident that the sustainability leaders focus heavily on understanding their processes further, with a higher investment in ‘Data and analytics technologies’ than the average.
By focusing on gathering the data that they can, they are able to understand their impact a lot quicker, and where they could be having a very positive, or even negative impact. This information can then be actioned to improve sustainability. Therefore, it’s no coincidence that 61% of Leaders measure their scope 3, compared to a 12% average, as they understand the importance in seeing their overall impact as an organisation.
We see this displayed with Marks and Spencer, as rather than talking about how they have changed their packaging, their strategy shows how they have invested in data to understand the impact of their business. For example, their Plan A report for measuring sustainability, shows the integral importance of data and analytics for their marketing, and thus they have been able to reduce emissions in UK and Ireland by 38%. Thus, we see how not just collecting data, but communicating about it, helps to build a credible sustainable reputation.

Additionally, Net Zero focus can also be communicated through Green Investments. In this case, companies understand that they cannot make all of the difference themselves, and it is therefore worth investing the money into a place with higher environmental impact.
Although some companies would hide their investments, creating collaborative campaigns with companies that fall under ‘green investment’, to highlight the work that you are both doing, would help consumers understand the innovative actions a company is taking towards Net Zero.
For us, it’s all about transparency once again, as more credibility can be created through sharing data and investments in a unique way, as this shows action and long-term strategy in making a true difference. Or, as the report mentions, ‘Transparency starts with data’.
Building Trust in Products and Services
Trust and transparency go hand in hand, as even 61% of the businesses in the report recognise that they should be more informative about their processes. Building trust, in this context, must be done internally (with stakeholders) and externally (with customers).
As we have already analysed, increased communication was needed for increased transparency, and thus increased credibility. This should involve a complete alignment on their sustainability goals and actions with stakeholders, as well as consumers. According to the report, 29% say that this communication does not match.
Perhaps, as highlighted by the report, the most important area for transparency is the supply chain, and stakeholders are a key part of this, as well as how this could be communicated to a wider audience.
Communicating to build Trust:
According to the report, 50% of ‘Sustainability Leaders’ name a top focus as supply chain traceability, and this is for multiple reasons. Firstly, it links back to a focus on data and analytics, as plenty of companies use this to collect information about their supply chain. Therefore, supply chain changes and traceability should not just improve communication with those stakeholders on the supply chain, but creating campaigns around this in a wider context can build trust among customers too.
An example of this is Hotel Chocolat, who despite not doing so extremely publicly, communicate that their next step is complete traceability and transparency, to track where each bag of cacao comes from. Creating campaigns around this traceability would increase trust and credibility in your sustainability from the audience.
Additionally, as the report shares, not just the creation of campaigns that talk about the supply chain and transparency, but also backing this up through impact reports and sustainability reports, are a great way to build credibility in your sustainability, and be known for it. We see companies that talk about it, like Neals Yard Remedies, but the lack of a sustainability report or impact report could suggest to the audience that you have something to hide, even if you don’t.

Measuring Performance and Decisions
A key area, and one that we believe in, is not just creating campaigns around sustainability. Also, it is making sure that we effectively measure their progress, and the report by Smurfit Kappa seems to share this sentiment. With 70% of consumers worried about Climate Change after the pandemic, it is now more important than ever to show the impact that a business is having on the environment. Even if, as per the report, 63% of businesses confirm they are completely transparent about their sustainability, this leaves us with two main issues. There is still a 37% space for improvement, and being transparent, and effectively communicating transparency, are two very different things.
One of the key challenges mentioned is the need for a common understandable framework on how businesses are reporting their sustainability. For us, whether this is in place or not (and we would very much like it to be), companies need to be measuring, and talking about their sustainability performance, how they are measuring it and how it is progressing.
Communicating Transparency and Measurement:
63% of businesses confirming that they are completely transparent on their sustainability, to us, doesn’t seem right. Perhaps it’s the sampling, perhaps their answers are not entirely true, or perhaps they are, and we just don’t know about it. Thus, we tend to assume that it’s not the case.
Therefore, after what we have looked at, we see that a key element would be to not just report on your sustainability, but create a system in which that reporting and those statistics, become a key part of your marketing strategy. We are not just talking about sharing them in a nice graphic on social media, but backing them up with something creative, ground-breaking and out-of-the-box.
For example, rather than just a sustainability report, creating a campaign that highlights the exact steps that you have taken to improve your sustainability, and sharing that with the community to help others. A great example of this would be Tony’s Chocolonely, with their ‘Sweet Solution to a Bitter Truth’ campaign. This campaign first highlighted how other chocolate brands were not keeping high ethical standards. Their 5 pillars then proceeded to set those ethical standards. This highlighted their ethical approach and established them as an ethical leader in the space. Thus, this has enabled them to promote their Supply Chain program to help other companies become more ethical.

So, we see that rather than just being transparent in reports, or sharing statistics, the best way is to combine solid progress with innovative campaigns that help create a positive difference and reputation for the company and even their industry.
Summary:
The fundamental value in communicating sustainability effectively is clear, and what and how companies must report to build transparency, and the four stages and areas that they must focus on.
However, with our addition, it has shown how this could be improved by not setting a clear direction, implementing and measuring transparent sustainability practices, but making sure that this can be communicated to your audience in a way that they will remember. And importantly, help your company be known for your transparent and credible sustainability progress towards helping people and our planet.
If you’re interested in building an innovative campaign that follows this mould, then you are in the right place. As experts in Digital Marketing for Sustainability and Social Impact, we have created and will continue to create innovative campaigns for companies to be known for the good that they do.
Feel free to check out some of our work below and get in touch with us.
We specialise in helping companies talk about their social impact effectively. If you’re interested in making some noise, then get in touch.