ESG practices key to improving brand image

Environmental, social, and governance (ESG) criteria are important factors when shaping a company’s strategy and brand image, according to the results of survey by Action Global Communications.

The study, conducted in Cyprus, the United Arab Emirates, Greece, and Bulgaria, revealed that 95 per cent of respondents in Cyprus believe it is essential for companies to prioritise environmental sustainability in their operations.

The research, targeting individuals aged 18 and above, aimed to assess how ESG considerations influence modern branding strategies and consumer behaviours.

The study showed how public expectations for ESG practices are reshaping purchasing decisions and brand loyalty.

According to the findings, businesses today cannot rely solely on profitability. Integrating ESG principles is increasingly seen as a necessity, coupled with transparent communication about their implementation and future commitments in this area.

The survey found that 91 per cent of respondents feel companies have a responsibility to contribute positively to society beyond generating profits.

Moreover, 66 per cent believe brands that disregard ESG practices risk jeopardising their long-term sustainability and reputation.

The findings further showed that 60 per cent of participants think a company’s commitment to ESG practices can enhance its reputation, while 50 per cent said it can strengthen brand loyalty.

When asked if their purchasing decisions would be influenced by a company’s ESG practices, 85 per cent of respondents answered affirmatively.

Additionally, 84 per cent viewed companies that adopt ESG principles more favourably, underscoring ESG’s significant role in shaping public perception.

“The research confirms that companies which genuinely adopt and clearly communicate their ESG commitments are in a much better position to build trust and loyalty — critical elements for fostering long-term relationships with their customers,” said Commenting on the results, Chris Christodoulou, CEO of Action Global Communications.

Conversely, he added that “companies that ignore these growing customer expectations risk losing their position in a market increasingly driven by values”.

Natasa Perdiou, Director of Action Cyprus, observed a notable market shift through the research findings.

“Consumers are no longer passive participants but active influencers who demand that brands align their business goals with the well-being of the environment and society,” she said.