Where Do Priorities Lie?

Let inconsistent investor communications guide your path

Collage highlighting disconnect in Danone’s messages (collage pieces sourced from Danone website)

Every post in the Matereal World includes at least one actionable recommendation. Today’s might be jarring so I will set it up a little first.

When it comes to priorities around ESG and sustainability, there is often a disconnect between what is said by company executives to the investor community compared to other audiences. That’s not the jarring part—that’s old hat, though I will use Danone as an example to make the point. What is potentially jarring is what I recommend you do about it if you recognize this in the organization where you work.

What I don’t recommend

What others often recommend is to harmonize messages, something like this:

• Weave ESG and sustainability messages into earnings call commentary and investor presentations;

• Brief executives on key messages to support responses to questions that emerge during the investor Q & A.

I officially unrecommend the above approach because it is about how to communicate consistently, regardless of reality. If reality is crappy, we need to change reality, not the things we communicate about it.

What I DO recommend

When there are inconsistencies across investors communications versus other audiences regarding ESG and sustainability priorities, I recommend the following steps.*