When ESG comms goes wrong – Three PR lessons

Recent high-profile cases continue to show that ESG activity is no longer confined to regulator and investor scrutiny, it’s become a major a reputational and communications challenge.

The cumulative nature of ESG means that even firms with strong parts of their ESG programmes can be undermined by relatively small, avoidable failures which can lead to disproportionate reputational and financial costs.

For leaders, the test is not only what your organisation does on ESG, but how you talk about it. As recent cases show, ESG communications can become a liability if it outpaces operational reality. Here’s three recent examples that demonstrate this.

Lloyds and the perils of only telling part of the story

In December 2024, the ASA ruled that Lloyds Banking Group had misled the public with an advert promoting its green finance credentials. While it is true the bank has backed renewable projects, the advert omitted context, such as its continuing financing of carbon-intensive sectors.

From a communications perspective, the lesson is simple – don’t underestimate the savvy of your audience. Omission can be as damaging as inaccuracy. If stakeholders feel they are only getting part of the story, trust is undermined.

Fashion and the fragility of “sustainable” branding

In 2024, the Competition and Markets Authority (CMA) took action against retailers including ASOS, Boohoo and George at Asda for misleading sustainability claims. Consumers had been told products were “eco” or “responsible,” but evidence was vague. The retailers responded by promising clearer labelling and marketing of their clothing.

For communicators, these examples underline the importance of detail. Claims must be specific, current and verifiable because watchdogs, media and campaigners are watching closely.

Water industry’s operational failures become communication crises

The water watchdog Ofwat’s proposed fines for water companies including Thames Water, Yorkshire Water and Northumbrian Water for sewage failures, and Drax Group’s scrutiny over biomass disclosures, illustrate how operational realities drive ESG narratives. For both sectors, lapses in compliance quickly moved from regulatory filings to the front pages.

These cases show how environmental and governance failings are now central to brand reputation. That means leaders and comms teams must be at the table early, shaping disclosure, scenario-planning, and ensuring messages are realistic and resilient when scrutiny hits.

Five communications imperatives for ESG

1. Be transparent in full, not in part

What you leave out of your ESG comms can be more telling than what you include, so be willing to acknowledge trade-offs and ongoing challenges, not just successes.

2. Treat ESG claims like regulated statements

Assume every claim will be tested by regulators, media or pressure groups. Build processes to fact-check and stress-test before publishing.

3. Keep disclosures current

Outdated policies, certifications or reports are reputational risks. Build routines to review and update regularly.

4. Bridge comms and operations

ESG comms must reflect your operational reality. Ensure sustainability, risk, legal and PR functions work together to avoid gaps.

5. Speak with humility

Remember that ESG is a journey. Positioning communications as open, evolving and accountable resonates more strongly than suggestions of “mission accomplished”.

Freshfield has been advising businesses and their leaders for more than 25 years. If you’d like to find out more about ESG communications, get in touch.