The evolution of ESG communication – why Factsheets need to do more than inform

The world of ESG (Environmental, Social, and Governance) investing has transformed dramatically in recent years. What was once a niche interest has become a central pillar of the investment landscape, with institutional and retail investors alike demanding greater transparency, deeper insights, and compelling ESG narratives. 

For asset managers, this shift presents both an opportunity and a challenge. Traditional ESG factsheets, which often focus solely on data disclosure, are no longer enough. Investors are looking for more than just numbers—they want context, storytelling, and a clear understanding of how ESG factors are integrated into investment strategies. So, how can asset managers adapt? 

From compliance to engagement 

Before regulatory ESG frameworks came into effect, ESG factsheets were primarily voluntary marketing tools. They focused on showcasing key metrics like carbon footprints, diversity data, and governance scores. But as regulations such as SFDR, TCFD, and SDR have been introduced across Europe, the role of voluntary ESG reporting is shifting. No longer just a data dump, often duplicated in regulatory templates, factsheets are evolving into storytelling tools that inform and engage – using less, but more meaningful data to underpin their messaging.  a

Investors want to know the ‘why’ behind the data: 

• What actions is a fund taking to reduce its carbon footprint? 
• How is it addressing social impact beyond numbers? 
• What governance measures are in place to ensure accountability? 

This requires asset managers to move beyond raw data and create ESG factsheets that provide meaningful insights, clear narratives, and a strong link between ESG performance and investment strategy. 

The rise of ESG storytelling 

A growing number of investors are no longer satisfied with generic ESG metrics. They want to see the story behind the data. This shift is particularly evident in the way asset managers communicate their ESG commitments—through case studies, real-world impact examples, and transparent methodologies. 

Consider two ESG factsheets: 

1. A document filled with technical jargon, charts, and tables that simply list ESG scores. 
2. A report that integrates key metrics with a clear, engaging explanation of how a company or fund is making a tangible difference. 

Which one is more likely to resonate with investors? 

ESG storytelling doesn’t mean sacrificing accuracy, it means presenting information in a way that is accessible, relatable, and engaging. By incorporating real-world examples and linking ESG initiatives to broader industry trends, asset managers can make their factsheets more impactful. 

How Asset Managers can elevate their ESG Factsheets 

To stay ahead of the curve, asset managers need to rethink their approach to ESG factsheets. Here are three ways to enhance them: 

1. Use data to tell a story 

• Instead of simply listing ESG scores, explain their significance. 
• Provide context on how ESG metrics influence investment decisions. 
• Show progress over time—how has a fund improved its ESG performance? 

2. Incorporate visuals for clarity 

• Use infographics, charts, and visuals to make complex data digestible. 
• Highlight key ESG achievements with quick snapshots or summary sections. 

3. Ensure transparency and authenticity 

• Avoid ‘greenwashing’—be clear about ESG challenges as well as successes. 
• Provide links to methodologies and data sources to build credibility. 

The future of ESG Factsheets 

As ESG reporting continues to evolve, factsheets must do more than just tick regulatory boxes. They should serve as a bridge between asset managers and investors, fostering trust, clarity, and deeper engagement. By making ESG factsheets more compelling and insightful, asset managers can turn a compliance necessity into a strategic advantage. 

At FE fundinfo, we understand the challenges and opportunities in ESG reporting. Our solutions help asset managers streamline ESG data collection, automate factsheet production, and ensure consistency and compliance—while also enhancing engagement with investors. 

Want to learn more about how to elevate your ESG factsheets? Download the whitepaper below for more details or speak to an expert today.