Connecting Purpose and Performance: IE–Elecnor Knowledge Hub Analyzes the Impact of ESG Communication
The new report from the IE–Elecnor Knowledge Hub on Ethical Business examines how clarity, consistency, and alignment in ESG communication influence trust and value creation in companies.
On March 24, the IE–Elecnor Knowledge Hub on Ethical Business presented the report “The Voice of Purpose: ESG Communication, Authenticity and Trust”, authored by Martina Pasquini, Associate Professor of Strategy at IE Business School.
In a context of increasing regulatory pressure and growing scrutiny from investors, customers, and regulators, the way companies communicate their ESG strategy has become a key driver of value creation. This report, developed by the IE–Elecnor Knowledge Hub—an initiative of Fundación Elecnor and Fundación IE, with technical support from EY—provides rigorous evidence on this issue.
Key Findings
The study analyzes how ESG communication influences perceived authenticity and key performance indicators such as profitability, operational efficiency, and value creation. It examines 110 European companies between 2010 and 2023, combining financial data—including profitability (ROI, ROS), operational efficiency, capital turnover, sales, and intangible value—with behavioral experiments on stakeholder perception.
The findings are clear: authenticity in ESG communication is not merely a reputational attribute, but a strategic capability that directly impacts financial performance.
The conclusion is straightforward: in the sustainability conversation, promises are no longer rewarded—credibility is.
The report identifies a direct relationship between clarity, alignment with material issues, and performance. Companies that communicate in a specific, verifiable, and consistent way with their real impacts generate greater trust among stakeholders, and that trust translates into measurable economic results.
The research also shows that not all ESG communication strategies have the same effect. The key is not expanding the scope of the narrative, but ensuring its consistency with operational reality and the business’s material issues.
Four ESG Communication Profiles
The study classifies companies into four strategic profiles based on the scope of their communication and their degree of alignment with materiality:
- Authentic Specialist: Focused communication highly aligned with real impact. These companies achieve the best results in profitability and efficiency.
- Sustainability Champion: Broad but coherent narrative, associated with higher sales growth and intangible value.
- Symbolic Specialist: Limited communication with low alignment, resulting in neutral or weak financial impact.
- Greenwashing Risk Zone: Ambitious discourse disconnected from operational reality, associated with negative financial outcomes.
The data show that narrative overreach without operational backing erodes both trust and performance, while material alignment strengthens both.
Through experiments involving more than 1,200 participants, the report identifies a clear sequence: message clarity, perception of verifiability, generation of trust, and ultimately, perceived authenticity. This process acts as the mechanism linking communication and financial performance.
ESG communication thus moves beyond a declarative exercise to become an indicator of organizational discipline and strategic coherence.
Report Presentation
The report was presented at EY Spain’s offices in Madrid, during an event that brought together academics, executives, and sustainability experts to discuss the strategic role of ESG communication in value creation.
The session opened with welcoming remarks by Alberto Castilla, Head of Sustainability at EY, who highlighted the market’s growing demand for transparency and ESG metrics.
Enrique Aznar, Director of the IE–Elecnor Knowledge Hub on Ethical Business, then held a conversation with Professor Martina Pasquini, focusing on how clarity and consistency in ESG communication build trust and enhance financial performance.
This was followed by a roundtable discussion with Alberto García de los Ángeles, CEO of Elecnor, and Isabel García Tejerina, Senior Advisor at EY Spain, who shared their perspectives on integrating ESG into corporate strategy.
Commitment to Ethics and Responsible Leadership
With this new research, the IE–Elecnor Knowledge Hub on Ethical Business reaffirms its commitment to generating applied knowledge that helps organizations integrate ethics, sustainability, and performance into a single strategic equation.
Access the full report here.