From compliance to brand equity: Shift Sri Lankan businesses need to make

Tuesday, 25 August 2026 06:31 - - {{hitsCtrl.values.hits}}

As Sri Lankan organisations prepare for enhanced sustainability reporting under SLFRS S1 and S2, businesses are being encouraged to look beyond compliance and recognise Environmental, Social and Governance (ESG) as a strategic driver of brand equity, stakeholder trust and long-term competitive advantage.

While regulatory reporting remains an important requirement, FireCircle by G Founder and Strategic Communications Consultant Gayani Punchihewa, believes many organisations risk limiting the value of their sustainability efforts by viewing ESG primarily as a disclosure exercise rather than a business strategy.

“Many organisations invest considerable resources into sustainability initiatives, yet the conversation often ends with the publication of a report,” she said. “Compliance fulfils regulatory obligations, but communication is what transforms ESG into trust, reputation and long-term brand value. Organisations that communicate their ESG journey authentically are far better positioned to differentiate themselves in an increasingly competitive marketplace.”

She noted that today’s investors, customers, employees and business partners are looking beyond financial performance to understand how organisations create sustainable value and respond to environmental and social challenges.

“ESG is no longer simply about what organisations do. It is equally about how they communicate those actions with credibility, transparency and consistency. Companies that successfully integrate ESG into their broader brand strategy are likely to build stronger stakeholder confidence, enhance employer branding and create lasting competitive advantage,” Punchihewa added.

These themes formed the basis of the second edition of FireCircle by G’s “From Compliance to Brand Equity” workshop, which brought together professionals from finance, sustainability, marketing, communications and corporate leadership to explore practical approaches to communicating ESG beyond compliance.

Feedback from participants reflected the relevance of this perspective, with many noting that the workshop challenged the traditional view of ESG as a reporting obligation and instead demonstrated how sustainability initiatives can be leveraged to strengthen reputation, build stakeholder trust and create long-term business value.

As sustainability reporting continues to evolve in Sri Lanka, Punchihewa believes organisations that combine robust ESG performance with strategic communication will be better positioned to build stronger brands in an increasingly purpose-driven business environment.