Jan 12, 2024
You’ve probably seen annual reports, even if it’s your own company’s: a breakdown of the year’s achievements, not just internally but externally—that is, the company’s impact on the community. It’s a great way to explore what companies have been up to and how they’re using their finances.

These reports are typically jam-packed with enough data to make even a seasoned analyst call it quits. But lately, there’s been a shift in reporting trends, moving away from endless data and toward storytelling, or insights, specifically when it comes to ESG reports (Environmental, Social, and Governance).

You may know we’ve worked on ESG reports and similar projects for P&G, Cintas, and recently, Marriott International (more on that soon!). The shift to mining insights from the data and turning it into storytelling is clear. We helped Cintas elevate their Community Impact initiative with an online interactive report that brought their commitment to life. For P&G, we helped them split their ESG report into five broad categories online, each with subcategories of impact and initiatives. Gone are 12-page tables with countless rows; in are easy-to-digest charts and graphics that clearly show the impact rather than forcing users to extrapolate from the data themselves.

So what gives? Why the shift? Let’s dive into it.

Younger investors are interested.
According to Forbes, “Today’s business professional is exiting higher education and proctoring professional paths steeped in purpose over profits.” Gen Z and Millennials in particular are ethically focused in their personal preferences and their careers, and the brands who get their loyalty feel the same. ESG reports are the perfect chance to show not just how brands profited, but how they’re being good corporate citizens. Young investors are measuring their loyalty in environmental impact, DEI initiatives and other charitable efforts. And when those efforts are made into compelling stories instead of static reams of charts and text, young people pay attention—and invest.

DEI has become increasingly important.
As the American workforce continues to diversify, historically marginalized people and groups (plus those who support them) want to see that their organization is doing everything possible to make those people and groups feel heard, seen and appreciated. When ESG reports focus on storytelling, it brings those efforts to life, showcasing initiatives both internally and externally while sharing exactly what the brand truly values. It signals to other brands and consumers that the brand is in it for more than just profit—which appeals to the young investors mentioned above. It also gives internal and external stakeholders the chance to dialogue with a brand about those initiatives: what impacted them personally, opportunities for what the brand could do differently or improve for the next year, or what they may have left out. It’s accountability and responsibility all rolled into one.

They’re more available online.
Often, annual reports of the past were doorstoppers, thick tomes only stockholders were expected to delve into, illegible for the average consumer even if they wanted to peruse just the ESG section. But as brands began bringing those reports online to save paper, space and money, more and more people had access to them, which not only encouraged a change in legibility, but in the topics the reports focused on. The average consumer isn’t going to notice a rise or dip in the third-quarter profits of the northwest division, but they’ll care how that brand affects the environment to create their products—and they’ll want an easy way to find out.

Storytelling makes reports more accessible.
These days, because of that online availability, more people than ever are scouring companies’ annual and ESG reports. Interested stakeholders include not only the board, investors, and employees, but also family and friends of those employees, plus loyal customers and even consumers just curious to know how the brands they use stack up. Turning volumes of ESG data into insightful storytelling isn’t just a good idea to save space. It’s increasing accessibility, the same way websites offer multiple language options or make sure their fonts are legible. When more people can understand what the data is saying, the further a brand’s message can go—a kind of marketing itself.

ESG reports are a good idea for any brand to produce, keeping consumers updated on how the company spends its money and how things look going forward. Don’t have any humanitarian stories to include for an ESG section? It may be time to consider how to use your brand to start giving back—more on that next time.