Time for a change
In the last decade, ESG (Environmental, Social, and Governance) has evolved from a niche investment consideration into a central pillar of corporate strategy. Stakeholders, from investors to employees to regulators, are demanding more than surface-level commitments. They want to see real, measurable progress on issues like carbon reduction, diversity and inclusion, ethical leadership and transparent governance.
However, for many companies, the ESG journey stalls at policy development. Strategies are drawn up, KPIs are tracked and glossy reports are published. But real change, the kind that reshapes decision-making and everyday behaviours, remains elusive.
This is where behavioural science becomes not just useful, but essential.
The ESG gap: Policy vs practice
While many organisations now have ESG policies in place, implementation often falls short because it doesn’t address the human element. Employees may not understand how ESG goals connect to their roles and leaders may struggle to model the desired behaviours. Incentives may also be misaligned with ESG priorities. Even well-meaning people can default to old habits if change feels unclear or difficult.
To truly integrate ESG into a company’s DNA, organisations must chang behaviourat scale, and that requires more than just awareness or training. It requires a deep understanding of how people make decisions, what drives their actions and how to design environments that support sustainable change.
The missing link: Behavioural science
Behavioural science is the study of how people actually behave, rather than how we assume they do. It draws on psychology, neuroscience, economics and social science to understand the cognitive biases, habits, social norms, and emotional drivers that shape human action.
When applied to ESG, behavioural science can help companies:
These aren’t just theoretical ideas - they're practical intervetions that can be embedded into workflows, communications, incentive structures and even the company culture itself.
Some BAD examples
- Reducing psychological distance
With a leading financial services company, we scripted, filmed and produced high-quality video storytelling to reduce the psychological distance between employees’ day-to-day work experiences and the real-world impact of financial integrity. By connecting their roles to the protection of funding for everyday resources such as healthcare and education, we helped make the consequences of financial crime more tangible, personal, and urgent. This emotional connection encouraged more ethical decision-making and reinforced a shared sense of purpose across the organisation.
- Making choices more intuitive
For a professional services organisation, sustainability initially felt intimidating. Many employees didn’t see it as part of their role, lacked confidence to speak about it, and didn’t know where to start. To shift these perceptions, we created a dramatised storytelling experience featuring two relatable characters. Through their journey, we highlighted the relevance of sustainability in everyday professional decisions and equipped employees with practical tools to take meaningful action. This approach helped demystify the topic, making it more accessible, engaging and personally resonant.
- Heuristics to guide inclusiveness
After running workshops and focus groups with an investment bank, we developed a programme that provided simple, actionable rules of thumb to help employees strengthen their inclusive leadership skills. By breaking down inclusive behaviours into small, repeatable actions, we made personal growth more manageable and more likely to become a habit. This approach helped shift inclusive leadership from a vague aspiration into something employees could practise, track and embed in their everyday work.
Building a culture
Ultimately, ESG is not just about compliance or reputation - it’s about culture change. And company culture represents the living, breathing persona of your company - capturing the norms, values and behaviours that define the very character of your business.
A behavioural science-based approach allows companies to embed ESG into the fabric of vryday work. It shifts the conversation from “what should we do” to “how do we actually do it.” It provides tools to overcome resistance, align incentives and create environments where doing the right thing is the easiest thing.
Let’s partner
Agencies like BAD, focused on applying behavioural science, can be invaluable partners on the ESG journey. We can bring:
- Expertise in diagnosing behavioural barriers
- Tools for designing effective interventions
- Designers who can make beautiful experiences
- Methods for measuring and sustaining change
Whether it's through consulting, training or hands-on project design, we help organisations move from intention to action, and from ESG theory to ESG impact.
If your organisation is serious about ESG, it’s time to start thinking behaviourally. Get in touch if you would like us to help you make it happen.
