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By Louise Veitch, Head of SE Asia
At the end of April, Money20/20 finally made its debut in Asia at the Queen Sirikit National Convention Centre in Bangkok.
The city’s strategic location, coupled with its rapidly growing economy and supportive regulatory environment, made it a perfect place for the fintech community to congregate on this side of the world. Bangkok’s 40-degree April heat and gridlocked traffic also did an excellent job of keeping attendees and sponsors inside the convention centre at all times.
If you’re wondering whether to go in 2025, I have shared insights after attending in April that will either get you registering for next year’s event or deleting it from your calendar entirely.
For those who have been to Money2020’s alternative regional events, or the latest Singapore Fintech Festival & Token 2049, like us, you might have been searching for another exhibition hall when you first arrived at the centre.
The event was much smaller, but arguably no less mighty. From speaking with clients and other sponsors, many felt that what it lacked in footfall, it made up for in the quality of attendees. It’s also important to understand that what works for one region, may not work for another, so comparing the money2020 events like for like will never be a useful exercise.
A contributing factor to the size, was the cost of the event. It cost thousands to attend the event and much, much more to be an exhibitor. While this ensured that attendees were serious sellers or buyers, companies looking for an immediate return on investment will have struggled to get back in the green.
Over the last 12 months for better or worse the fintech industry has been in the spotlight and while it can sometimes be a lucrative field, it is always innovating at a rapid pace. Money2020 Bangkok showcased the ideas and current thinking of the most influential people in this sector.
Ultimately, our team will be recommending that some of our clients in Asia (and globally) attend and/or sponsor next year’s event while others should probably sit it out. Considering your business objectives and how this fits into your wider marcoms strategy is a huge factor.
For example, if you are looking to build brand awareness in front of a really relevant community, you can register for next year here. But, if lead generation is the watchword for 2025 and you have specific conversion targets to hit, we might recommend investing in alternative strategies to better support these objectives.
Louise Veitch heads up operations for Aspectus’ Singapore office, leading the expert team on the ground there as well as Aspectus’ network of consultants across Southeast Asia. She has spent the last decade helping clients in the fintech and traditional finance space to successfully grow their brand awareness globally. Louise was named PR Week’s 30 Under 30 in 2020 in recognition for her work in this space.
Q1: How does Money20/20 Asia compare to other fintech events in the region?
A1: Though smaller in size than events like the Singapore Fintech Festival, Money20/20 Asia’s high-quality attendee base offered substantial networking and business opportunities.
Q2: What are the costs and ROI considerations for attending Money20/20 Asia?
A2: High participation costs mean companies should weigh the potential for immediate returns against the quality of interactions and long-term strategic benefits.
Q3: Should businesses attend Money20/20 Asia in 2025?
A3: Decision to attend should align with specific marketing and commercial objectives, considering factors like brand visibility and lead generation needs.
By Astrid French, Senior Director based in UAE
With world-class infrastructure, business-friendly taxation policies, and significant industry expertise, the United Arab Emirates (UAE) is continuing to show itself as a ripe destination for business – able to withstand economic downturns while many other regions around the world face an uphill battle.
We turn our attention to fintech to see a clear example of this in action. Despite dwindling global investment in fintech, the UAE bucks this trend with total investment soaring 92 per cent in 2023. Pro-fintech regulations and a high adoption rate of digital banking tools are creating an ideal habitat for the sector to thrive. As a result, firms are increasingly looking to the UAE as an essential market for growth.
But with great opportunity, comes great competition, and firms are vying to stand out against the growing crowd. Those who cut through this noise with smart, strategic marketing and communications will ‘own the night’ and fast put distance between themselves and others.
So, what is the size of the opportunity, and how can UAE fintech firms make the most of it?
The UAE is deeply rooted in its commitment to digital transformation, championing technologies such as generative artificial intelligence (AI) to foster entrepreneurship and innovation. Predictions indicate that by 2030, AI will contribute US$97 billion to the UAE’s economy, constituting nearly 14 per cent of GDP.
With the next wave of digitisation already in full swing, the UAE offers an optimal location for businesses to explore these possibilities and boost their brand visibility in a growing digital ecosystem.
For instance, the open banking market in the region is booming, projected to reach $1.17bn in 2024. By enabling financial and non-financial institutions to partner and share financial data with regulated fintechs, open banking is dismantling the walls that traditionally limited financial services, creating a connected financial community in the UAE. Opening up secure access to financial data offers firms a treasure trove of information, enabling firms to develop a rich array of personalised products and services and cater to evolving customer needs. Many firms in the region are leveraging strategic communications to showcase the UAE’s open banking prowess, helping to attract attention from investors and stakeholders worldwide.
Collaboration extends beyond the four walls of the UAE’s fintech community, too. The Dubai International Financial Centre (DIFC) has created an Innovation Hub, home to more than 700 tech firms, regulators, venture capital firms, and educational bodies, working to share knowledge and collaborate. Its FinTech Accelerator Programme offers networking and mentorship opportunities for fintech startups, concentrating on areas like open banking, AI, and automation in effort to enhance financial literacy. By communicating how these advancements are driving the UAE forward as a budding fintech hub, fintech firms can position themselves as key players shaping the future of finance.
The region is also building a growing voice on sustainable finance, and communications are playing a key role in spotlighting this progress. Policymakers and regulators in the UAE are using their platforms to stress the importance of technology to achieve sustainable finance goals, encouraging active engagement from fintech firms to materialise sustainability promises. Fintech organisations in the region are already harnessing AI and blockchain to enhance ESG reporting and transparency, as well as integrating sustainability into investment decisions. Events such as Fintech Abu Dhabi, hosted in the Abu Dhabi Global Market (ADGM), showcase the advancements being made in sustainable fintech, attracting attention from media and key stakeholders. The ADGM has garnered worldwide recognition for its progressive regulatory frameworks and support for cross-border business activity – bolstering the region’s reputation as a trailblazer in using technology for positive societal impact.
So, fintech downturn? It doesn’t look like it in the UAE. It is a fertile ground for fintech innovation, attracting major players in the scene, best-in-class talent, and hefty funding rounds.
But competition will only grow fiercer. A strategic communications and marketing strategy is critical for firms to stand out in all the right ways. If you want to elevate your brand in the UAE, then talk to us at Aspectus where our Middle East specialists can guide you through your next stage of growth.
Q: What sets the UAE apart in terms of fintech investment despite global trends?
A: The UAE benefits from pro-fintech regulations, as well as a healthy domestic economy and growing consumer appetite for digital financial services. Consumers are increasingly seeking seamless, sophisticated banking tools, leaving many entry points for fintech firms in the region.
Q: How does the Dubai International Financial Centre (DIFC) support fintech innovation?
A: The DIFC’s Innovation Hub serves as a collaborative space for over 700 tech firms, venture capital firms, and regulators. Through initiatives like the FinTech Accelerator Programme, it provides networking, mentorship, and support in key areas to enhance financial literacy and drive fintech growth.
Q: What is open banking?
A: Open banking is a process through which banks and financial institutions can allow third parties to access customer data, with their permission, through the use of application programming interfaces (APIs). This helps to create more personalised offerings, such as tailored budgeting tips.
Q: What fintech events are hosted in the UAE?
A: Some of the biggest events in the industry are hosted in the UAE. Fintech Abu Dhabi is held in the Abu Dhabi Global Market (ADGM), attracting global attention. The Dubai FinTech Summit is another event pioneering the next wave of digitalisation in financial services.
By Will Brook, Capital Markets
With investment houses under growing pressure to innovate, this blog provides fintech attendees of this year’s TSAM (The Summit for Asset Management) event with a host of tips and tricks to ensure they can capture the attention of the various asset management firms in attendance. These include suggestions around fintech marketing, merchandising, branding, social media, tech savviness and staff selection.
It is no secret that asset managers – particularly those operating in the UK – have had a difficult couple of years. A barrage of headwinds, including a slowdown in global economic growth, elevated interest rates, bouts of pronounced market volatility and increasing competition from ETFs, saw the UK fund industry suffer ‘record’ net outflows[1] in 2023. And so far, this year hasn’t offered much in the way of hope. Funds domiciled in the UK witnessed £3.34bn in net outflows[2] in February – and for the second time in 12 months, not a single asset class managed to attract net inflows.
But as the old adage goes, from adversity comes opportunity. As asset managers grapple with growing competition and squeezed margins, the deployment of sophisticated financial technology has perhaps never been so essential. After all, the integration of effective fintech can unearth a host of advantages for investment houses, not least reduced costs, stronger investment returns, and ultimately a healthier bottom line. Take the potential posed by robo-advisors, for instance. A recent study by PwC[3] suggests assets managed by these algorithm-driven and increasingly AI-enabled digital platforms will surge to almost $6tn by 2027 – nearly double the figure for 2022.
And this is just one aspect of their strategy asset managers will be looking to bolster with cutting-edge fintech over the coming months. Against this backdrop, The Summit for Asset Management (TSAM) in London on 1 May – which brings together leaders from the back and middle office departments of some of the world’s most prominent asset management firms – offers a tremendous opportunity for financial technology providers to capture the attention of fund houses.
Given the number of vendors set to attend and the hectic nature of these events, capitalizing on this opportunity requires careful thought and preparation from a fintech marketing and public relations perspective. Trust me, I’ve been to enough events to know that the unprepared will struggle to make a splash, even if they have an excellent piece of tech to demo. With this in mind, we’ve put together a list of four key considerations fintech firms must take into account to give themselves the best chance of capturing asset managers’ eyes at TSAM.
Your booth and any merchandise you intend to give away are two of the most essential elements of large trade events like TSAM. Ultimately, the goal is to ensure your booth and merch stands out from the crowd. To do so, incorporate unique branding elements[1] and visually appealing displays that reflect your company’s identity and message.
Use bold colors, innovative design elements, and eye-catching visuals to captivate the attention of asset managers. Ensure that your booth reflects the essence of your fintech solution, if possible, conveying its value proposition at a glance. As for merchandise, this too should reflect the company’s brand identity, culture and values, while also being useful to attendees.
Utilize technology to enhance the visitor experience at your stand. Incorporate QR codes that lead to relevant resources, such as whitepapers, case studies, or demo videos. Implement interactive displays or augmented reality experiences to demonstrate the functionality of your solution in an engaging manner. Leveraging digital tools for lead capture and follow-ups is another aspect that shouldn’t be overlooked, helping to streamline the process for both parties and turn prospects into new business relationships swiftly.
While technology is important, it is imperative not to overlook the power of personal connections. Select subject matter experts that are approachable, knowledgeable, and enthusiastic about your fintech offering. These individuals can foster meaningful interactions with asset managers by initiating conversations, asking probing questions, and actively listening to their needs.
Incorporating interactive elements like games or quizzes to break the ice and encourage engagement is also worthwhile, but the success of these will depend on the spriteliness of those in charge of leading them.
Harness the power of social media[1] to amplify your presence before, during, and after the event. Create buzz[2] leading up to TSAM by sharing teasers, announcements, and behind-the-scenes glimpses of your preparations.
Then, during the event, post live updates, share photos/videos of your booth, and engage with attendees using event hashtags. It is then much easier to continue the conversation after the event, by sharing key takeaways, insights, and follow-up content to stay front-of-mind with the asset managers in attendance.
Only by thinking carefully about your fintech brand from a marketing and PR perspective can you be confident in transforming the bustling environment of TSAM into a fertile ground teeming with potential business prospects. See here[3] for three further top tips for developing an effective technology event communications plan.
Will is a content specialist in the Capital Markets team and joined Aspectus having spent nearly three years writing content for a wide array of global asset management firms. Since starting in his role in May 2023, Will has become ever more curious about the ways in which effective marketing and public relations can help innovative financial technology firms capture the attention of their target audience and transform capital markets for the better.
By Oliver Wells, SEO Director
Estimated read time: 12 minutes
Blog summary: In this blog I breakdown the importance of Google’s EEAT framework to modern SEO and business growth. I’ll focus on how to implement experience, expertise, authority, and trustworthiness on your website. Read on to learn how utilizing EEAT strategies not only enhances your organic search performance but also builds long lasting customer loyalty and trust; positioning your business for success in a digital-first world.
In this dynamic and now AI-influenced landscape of digital content production, Google’s E-E-A-T framework stands as a beacon of unwavering credibility. Born into the 2014 edition of the Quality Rater Guidelines as 3 simple letters: “E-A-T” (Expertise, Authority, Trustworthiness) they have since been incorporated into updates both core and micro for as long as I can remember, and now also include a further “E” for “Experience”. We can now see and track the direct and wholly positive impacts of EEAT strategies in organic campaigns, but why is this the case?
“E-A-T is a template for how we rate an individual site. We do it to every single query and every single result. It’s pervasive throughout every single thing we do.”
Hyung-Jin Kim, Vice President of Search at Google, speaking at SMX Next
EAT was introduced as a quality concept in response to the growing need for authoritative and trustworthy online information. Fast forward to 2022, and the concept expanded to include ‘Experience’. This represents the value of firsthand, lived experience(s). This evolution wasn’t just an update; it was a statement. Google was championing content not just rich in expertise but also steeped in honest, genuine input. For users, it meant a more relatable, trustworthy and reliable online world, where information comes from those who don’t just know but truly understand the industry because they have lived it – and they aren’t simply writing content in order to sell you a dream. They want to help or guide you towards something, they’re willing to prove themselves to you, and they are happy to be patient.
As goes modern SEO, Google’s E-E-A-T has emerged as a powerhouse. Its utilization in the March 2024 update is telling. It’s not just a framework; it’s how you connect with potential customers and website users. It’s how you show them why you’re the best option in a noisy and incoherent grey space of endless choice. By blending experience, expertise, authoritativeness, and trustworthiness Google is able to nudge content creators, business owners and marketing directors (sometimes forcefully and with some degree of resistance) towards excellence. Engaging with EEAT frameworks as they become even more essential, is now a case of when, not if; and there is some degree of urgency.
The focus revolves around rewarding those who know their stuff with resonance that is achieved through genuine experience and transparency – honesty with a dash of true and forthright passion for a craft and a business that wants to thrive. For SEO strategists, myself included, mastering E-E-A-T is not just about playing by the rules; it’s about crafting content that connects with audiences and converts because it is a natural full stop rather than a wrestling match.
So why should you care about SEO and EEAT and what does success look like for your business following continued engagement with these frameworks? The short answer is: online trust = increased business but garnered the right way, consistently and honestly, over time. In our challenging digital world it can seem like every blog and every site is designed to splice attention into consumable chunks, robbing businesses of feeling and websites of humanity.
Therefore, SEOs and Google know and understand that those who genuinely want to engage and talk about a topic are the ones who cultivate the greatest loyalties. Customer loyalty and brand trust being possibly the two greatest pillars upon which strong businesses are built. EEAT is a big thing. I won’t pretend like I am able to discuss it all in one blog post. It encompasses a lot of SEO with crossover into design, digital marketing generally, as well as brand positioning and content creation. But we are passionate about this. We believe strongly that EEAT is the best way to improve organic presence, but we also have an extremely strong feeling that these frameworks are formative to AI and LLM performance. Google may rely heavily on how trustworthy you are, how much authority you have; therefore success in EEAT may very well mean success in AI when AI becomes a major, dominant player in SEO and search.
So, lofty goals we may set, but attainable they are. We have compiled for you below, our top 21 EEAT elements that you must engage with as soon as you can if you want to become a trustworthy organic performance powerhouse.
As I said, EEAT is BIG. But it is worth getting your head around. It represents for me, and for Aspectus, the evolution of SEO and the future of AI and LLM performance. Businesses that fail at EEAT, will fail as we transition. But that ought not be a negative. EEAT means building connections with your audience. It represents a freedom and creativity to engage and to be exciting. It’s a celebration of authenticity and expertise; a showcase of your experience. It’s about showing the world who you are, what you do, why you do it and what drives you forward. EEAT isn’t just the next big thing; it’s the foundation for enduring success on search engines. It’s an invitation to create content that’s as real as it is relevant, as personal as it is powerful. Get in touch with me today to discuss how we can help you achieve SEO success through EEAT implementation.
Google’s E-E-A-T stands for Experience, Expertise, Authority, and Trustworthiness, a framework crucial for SEO success, emphasizing credible and quality content.
E-E-A-T directly influences organic search rankings by rewarding content that demonstrates genuine expertise, authoritative sources, and trustworthiness, along with the author’s personal experience in the subject matter.
Focusing on E-E-A-T ensures that businesses create content that truly resonates with their audience, establishing a strong, trustworthy online presence that drives organic growth and customer loyalty.
Incorporating E-E-A-T into a content strategy significantly boosts a business’s online credibility and authority, leading to better search rankings, increased trust among users, and ultimately, higher conversion rates.
The addition of ‘Experience’ to the E-E-A-T framework highlights the importance of personal anecdotes and firsthand knowledge in creating relatable, authentic content that resonates with audiences and demonstrates genuine understanding.
E-E-A-T is foundational because it aligns SEO practices with the evolving capabilities of AI and machine learning, ensuring that content not only meets current standards of relevance and quality but is also prepared for future technological advancements in search algorithms.
I have been working in SEO and strategic marketing services for over 8 years now. My experience is an even split between in-house roles at start-ups and agency roles at some of the UK’s biggest PR and digital agencies. I am based in East London having moved down from Essex 5 years ago. Professionally, I am a proud advocate for EEAT and SEO and the genuine business benefits of integrated service adoption. Personally, my heart is in the Lake District and nature. Podcasts are my jam and coffee is my addiction.
By Tamsin Jackson, People and Experience Director
Every Friday at Aspectus we have a group called ‘Hi-Jack’ whereby anyone and everyone is encouraged to nominate a colleague that has inspired them during the week.
Nominations often follow themes, asking for comparisons to famous figures to show how brilliant our own heroes are.
As we recognise International Women’s Day to celebrate all those that make such a huge contribution to our business (70% of Aspectees are women and – critically – so is our senior management team), we wanted to use our famous Friday ‘format’ to shout about some of the women that work here.
All have been nominated and compared to other famous women by their teammates.
Our fearless Head of Technology – Sofie reminds me of the former Prime Minister of Finland, Sanna Marin. She’s here to get the job done and have fun while doing it!
Sophie Rivas inspires me every day and her progress over the past year and a half at The Aspectus Academy has been huge. When Sophie spoke at Company Day, I was blown away – what an impressive and scary thing to do at just 19 years old. Sophie reminds me of Clare Smyth. The only woman to run a three-star Michelin restaurant, Clare was an apprentice before working for Gordon Ramsey and becoming a head chef at the age of just 29. I see Sophie’s career soaring in a similar way and she is proof of the power of apprenticeships.
Megain is endlessly curious and reminds me of Jeanne Baret with her willingness to go the extra mile in search of an opportunity to learn and grow her knowledge and skillset. She’s a real example to us all.
I’ve had the pleasure of working with Astrid since she joined at Aspectus and seeing her journey since she stepped foot into the business has been so inspiring.
She’s the glue to our Energy and Industrials team, consistently driving us forward with her positive energy and dedication.
Whether handling client requests or leading company initiatives, she does it all with grace and care. Her ability to jump in and out of testing calls alongside a busy schedule and have a constant smile on her face, while providing direction and support, even in the busiest times, is truly inspiring.
But what sets her apart is her infectious positivity and sense of humour. Astrid brings joy to every interaction and has an admirable ability to lift team spirits. She’s resilient, charismatic, and compassionate.
Rowann reminds us of Amelia Earhart with her strength, grit, and determination. She always shows real resilience under pressure and the sort of perseverance that makes success seem inevitable, no matter the odds.
At Aspectus, we celebrate and value difference – whether that’s difference in gender, background, religion, race or ethnicity. Different people bring diverse opinions and skills, all which should be recognised equally.
As a business that is overwhelmingly female in an industry where female leadership doesn’t always reflect the wider make-up of the sector, we are proud to celebrate the inspiring, and trail blazing women that makes us who we are. Find out more about our culture and people here.
By Ellie Jackson, Chief Client Strategy Officer
‘I Want It All’ – that’s what Freddie Mercury proclaimed, and his words echo a universal truth. It’s human nature to push for more. It’s certainly true for marketing managers, trying as they are to get the most return from budgets that are rarely as big as they’d like.
But this entirely laudable aim of wanting more can sometimes lead to overextension in marketing strategy: allocating resources too thinly across too many areas, rather than concentrating on a few key areas where they can make a significant difference.
As Harvard Business School professor Michael Porter astutely observed, the essence of strategy is choosing what not to do. For marketing managers, this means making tough choices. Yes, there might be a multitude of aims and objectives across multiple products and multiple segments, but attempting to tackle all of them within a single year is rarely smart. Far better to prioritize certain goals, give them the attention they deserve for a year, and then gradually broaden the focus. This is not about limiting ambition but about channelling it effectively.
In theory it’s simple: focus your investment where your efforts will add the most value. After all, the reality is that even if you did absolutely no proactive marketing, you would still make some sales. Some level of business will continue as usual. But in other areas, a marketing boost will make a major difference.
Without a time machine, it’s impossible to predict this with absolute accuracy, but it is possible to make an educated assessment when you’re trying to prioritise different products or segments.
Key questions to explore will include:
This last one is obviously especially important. For many of our clients (mostly technical B2B), we’re talking about complex sales processes, infrequent purchase cycles, lengthy decision-making periods, and buying committees. Our clients’ clients have a significant potential lifetime value, and a high cost of acquisition is a reflection of that.
In the high-value B2B space, the journey to conversion involves multiple touchpoints, essential for building trust and cementing reputation – especially when significant financial decisions are at stake. Better to hit a more targeted audience several times over with tailored content that’s appropriate for where they are at in the buying cycle. This is likely to be far more effective than reaching a broader audience just once.
So the next time you’re in a planning meeting and a question about target audience prompts the response, ‘oh, everyone’, I challenge you not to simply smile and let it go. Make the case for focus and the value it can bring. The (fat)-bottom(ed) line will thank you.
If you’d like help to sharpen your marketing focus, you can get in touch with our strategists here.
By Melissa Jones, Deputy Head of Digital
By 6th March 2024, everyone advertising on Google platforms must configure to Google consent mode v2 if they are tracking users in the European Economic Area.
In this article we outline what exactly consent mode v2 is, the new features it provides, how to implement it and how it will improve your measurement.
It is an updated mechanism that Google has brought in to comply with the Digital Markets Act that comes into effect in March 2024. It allows businesses to adjust the functionality of Google tags based on user consent for ads and analytics cookies. This ensures that tracking for advertising campaigns occurs only with user consent, as signaled through Consent Mode v2. Google describes it as a mechanism that allows websites to gather data on website conversions while respecting user privacy settings.
As part of their ongoing commitment to a privacy-centric digital advertising ecosystem, Google has introduced two new parameters in addition to ad_storage and analytics_storage, these are:
ad_user_data
This parameter can either be ‘granted’ or ‘denied’ and sets consent for sending user data related to advertising to Google, which in this context relates to services including Google Ads, Google Shopping, and Google Play.
ad_personalisation
Like ad_user_data, this parameter can either be ‘granted’ or ‘denied’ and sets consent for whether personal data can be used for advertising purposes such as remarketing.
If a user consents to advertising cookies on the cookie banner, these parameters will be set to ‘granted’ and their information will be shared with Google, providing the cookie banner or consent management platform is aligned with Google’s standards for compliance.
Other consent mode features include:
In short, no, it’s not the same as cookie consent as it doesn’t replace the functions handled by your consent management platform or cookie banner.
Instead, Google consent mode observes whether marketing or analytics cookies have been accepted through the vehicle of the cookie banner and if not, will switch all compatible tracking to a cookieless operation.
Google consent mode v2 allows you to send basic information to Google’s servers on a cookieless basis. Previously, if a user had opted out of cookies, no information would be sent which created black spots within analytics and led to gaps in understanding true performance of campaigns.
This cookieless information can inform the proportion of users not being tracked via traditional, cookie-consent methods, and can be used to model their activity in reports. This effectively helps to fill the gap that was previously created by users opting out.
The new Google consent mode is more of a requirement than an option, especially if you’re tracking users in the European Economic Area. Failing to do so may result in having activity suspended. On a slightly less serious, but equally important note, without it, marketers won’t be able to accurately track conversions and optimize their ad spend effectively moving forward. If not implemented, advertisers will feel the negative effects from March 2024.
There are three main ways that you can implement Google consent mode v2:
We’re increasingly in a transitional phase, where tools such as Google consent mode are being released and updated to adhere to the ever-changing data landscape, whilst also allowing us as marketers to enhance our ability to make informed decisions using the data that we have available.
If you’re feeling daunted about your analytics set up get in touch with one of our experts who can implement consent mode for you.
And, if analytics and measurement is your thing, see our other guides on:
By Paul Noonan, Content and Insights Director
The recent rise in climate-related greenwashing raises the question of why businesses continue to publish false climate change information in their ESG comms despite growing regulatory and reputational repercussions. Greenwashing is often portrayed solely as a deliberate effort by corporations to conceal and continue their environmental excesses. Yet this ignores the fact that greenwashing often arises from good intentions built on flawed data and poorly devised targets.
Many companies inadvertently set overly optimistic climate targets because they lack a clear picture of their ‘baseline’ emissions. A recent survey found widespread executive concerns that poor internal measurement is causing ‘accidental greenwashing’ with 87% of executives wanting better measurement of current performance to guide more realistic future targets.
The survey also found 72% of companies want to improve their sustainability “but no one knows how to do it”, partly due to difficulties measuring and monitoring progress. For example, many estimates of Scope 3 emissions reductions rely on data of dubious quality from third parties such as suppliers. This means that far from deliberately misleading others, many companies are themselves at the mercy of misleading internal and external data.
Greenwashing is also frequently seen as a case of companies under-delivering, yet this is often because they are over-promising. A tendency to make big-ticket climate commitments without factoring in the potential costs can leave firms exposed to new economic headwinds which force a sudden change of course and communications.
For example, BP intended to make massive cuts in oil and gas production by 2030 and then dramatically U-turned when the Ukraine war changed the equation from a narrow focus on sustainability towards energy security and affordability. The problem was their failure to anticipate and communicate the potential pitfalls of such rapid and radical decarbonisation at the outset, and the resulting inconsistency in their messaging. Global demand for gas is now expected to grow until 2030-2040 even under ambitious decarbonisation scenarios, which may cause other energy majors to similarly row back on climate commitments. And when lofty climate rhetoric clashes with real-world demands, some may hide behind spin which only compounds the original error.
A perfect storm of poor baseline measurement and forecasts and unrealistic goals means that less than 60% of companies are now on track to meet their net zero targets. To break this cycle of false promises and failed delivery, companies should consider a three-pronged approach combining better internal data, more realistic targets, and honesty about the likelihood of hitting them. This is the key to enabling more transparent and consistent corporate climate messaging.
More realistic targets and consistent communications start with better data. Central governance and clearer climate accountability would drive improved measurement of each company’s baseline environmental footprint. Companies should also overhaul data management capabilities by digitally integrating emissions data, and benchmarking climate performance against their peers. Consistent carbon measuring sticks should be adopted, and the relevant skills spread throughout the company. Emissions targets could be included in employee KPIs and quarterly reports to shareholders. Improving climate accountability, data and skills will help reduce accidental greenwashing.
As it becomes clear that many companies may have overreached in promising impractical immediate CO2 reductions, some are scaling back their 2030 commitments. While this has triggered a wave of criticism, more pragmatic short-term targets are a good sign if matched with practical implementation and consistent communication.
Targets should be built on comprehensive measurements of baselines and honest assessments of all the costs and benefits of decarbonisation. Armed with better data, firms can set more achievable goals while standing up to the critics and communicating the costs of a rushed, disorderly transition. For example, footwear giant Crocs recently publicly lowered its 2030 carbon target following a fuller evaluation of its baseline emissions.
Some companies are further bucking the greenwashing trend and refusing to set targets they consider unrealistic in the first place. TotalEnergies recently broke with convention and decided not to set any immediate Scope 3 target for gas, making the plausible argument that more gas will be needed in the short term to fill in for fluctuations in renewable power and that replacing coal with gas reduces global emissions even if it increases their Scope 3 emissions. While the company has drawn criticism, this kind of honesty and willingness to engage the critics makes a refreshing change from firms making false green promises festooned with dodgy data. Pragmatic promises grounded in good arguments and data allow companies to combine transparency with consistent messaging, boosting public trust.
Companies also need to be transparent with the public when they fail to achieve their ambitions as exemplified when Rio Tinto publicly admitted it may miss its own 2025 climate target. This kind of honesty is commendable if accompanied with a clear explanation of the reasons for missing the target, and a credible alternative timeline.
As John Maynard Keynes said “When the facts change, I change my mind”. Adjusting timelines to new economic realities is not necessarily a weakness, as long as these adjustments are rare, limited and justified by reliable evidence. This could involve publishing new evidence of unacceptable transition risks, such as recent modelling showing how a rushed, poorly-planned energy transition could cause dramatic job losses in Aberdeen.
Amidst growing cynicism’ around corporate climate pledges, customers and investors prefer moderate, measurable strategies to moonshot goals and hard truths over headline-grabbing aspirations. Pragmatic targets matched with good data, practical action and transparent, consistent communication is the key to rebuilding public trust in climate pledges.