Today, social media and digital platforms amplify every opinion, whether right or wrong. A single
post can make or break a company’s reputation. In the energy sector, where the transition to
cleaner solutions is under scrutiny from governments, investors, and consumers, trust is paramount. Public perception can shift in an instant, making stakeholder engagement and transparency critical for long-term success.
This means that a company’s reputation is no longer solely in its control. Instead, it is shaped by
stakeholders—customers, employees, investors, regulators, and the wider community. To effectively do business with these groups, trust MUST be in place. It is no longer a nice-to-have; rather, it’s the currency that fuels business success.
Trust drives customer adoption, regulatory approvals, and investor confidence. A 2023 Edelman
Trust Barometer report found that 81% of consumers say trust is a deciding factor in their
purchasing decisions. Yet, the risks of losing trust are immense.
Think about an energy company that faces backlash due to concerns over land acquisition for a
wind/solar farm, environmental impact claims, or power reliability or impact issues. Within hours, a social media post can trigger widespread debate, with communities questioning the company’s
motives and commitments to sustainability.
How the company chooses to address these stakeholder concerns will ultimately translate to value
in its books—positive or negative.
To build trust, energy businesses must first identify their key stakeholders—customers, employees,
investors, suppliers, communities, and regulators—and understand their priorities. To Gen Z and
millennial consumers, sustainability and social responsibility are important non-negotiables. To
investors, financial viability and return on investment are crucial. To local communities, job creation and fair compensation for land use are key concerns.
So, how can businesses in the energy sector engage their stakeholders to build and maintain trust in
this evolving landscape?
1. Open and Transparent Communication
Honesty and transparency are key to earning stakeholder trust. Companies must communicate
clearly about their goals, achievements, and challenges. For energy companies, this could include
providing regular updates on project timelines, environmental impact assessments, and energy
output data.
For example, could a wind or solar farm company proactively share independent environmental
audits or community impact assessments in real-time? Such measures reinforce credibility and
prevent misinformation from spreading.
2. Active Stakeholder Involvement
People trust organizations that value their opinions. Encouraging dialogue through community
meetings, digital platforms, and public consultations fosters inclusion and accountability.
Consider a solar energy firm developing projects in rural communities—rather than merely installing infrastructure, the company could engage local leaders, ensure job creation for residents, and address community concerns about land use or long-term benefits. When stakeholders feel heard, trust grows.
3. Authenticity and Consistency
Trust isn’t built overnight—it requires consistent and authentic interactions. Companies must align
their words with actions. If a company promises clean energy solutions, it must prove its
commitment by ensuring ethical sourcing of materials, reducing its carbon footprint, and upholding fair labour practices.
If an energy provider promotes itself as committed to net-zero emissions, it must be able to back it
up with clear, measurable, and time-bound goals rather than vague sustainability claims.
Stakeholders are quick to spot inconsistencies, and any perceived dishonesty can damage trust.
4. Empowering Employees as Brand Ambassadors
Employees are a company’s most powerful advocates. Their experiences shape public perception.
Organizations that treat their employees well, invest in skill development, and maintain a strong
workplace culture naturally earn trust.
For the energy sector, where misinformation about efficiency and power reliability can spread
quickly, well-informed employees are critical. Companies should train staff to effectively
communicate their sustainability efforts, technology benefits, and safety measures.
Encouraging employees to share their perspectives on platforms like LinkedIn humanizes the brand and builds credibility.
5. Responsiveness and Crisis Management
Issues and crises are inevitable, but how a company responds determines whether trust is
strengthened or eroded.
Silence fuels distrust. A fast, responsible, and empathetic response to concerns—whether about the
environmental impact of a project, accusations of greenwashing, or grid instability—demonstrates
accountability.
For instance, if a company faces scrutiny over the use of rare-earth minerals in solar panels or
battery storage, providing detailed information about sourcing practices and ethical supply chains
can prevent misinformation from damaging trust. Delayed or defensive responses only heighten
scepticism.
6. Social Responsibility and Purpose-Driven Initiatives
Today’s stakeholders expect companies to do more than just business —they want them to
contribute positively to society. Companies must work to build trust through long-term actions.
Brands that invest in local education, workforce training, and infrastructure development create
deeper connections with stakeholders. For example, an energy company could launch programs that equip young professionals with skills in solar or wind technology, strengthening both trust and
workforce readiness.
Trust as the Foundation of a Sustainable Energy Future
In a digital world where a single review, tweet, or viral post can shape perceptions, engaging
stakeholders strategically is essential. The key is to build trust before a crisis occurs because public
perception can shift instantly.
Trust is no longer just a competitive advantage—it’s the foundation of long-term success. It also
plays a crucial role in social sustainability. Social sustainability means ensuring long-term positive
impact—not just for customers but for all stakeholders, including employees, suppliers, and the
wider community.
For the energy sector, trust is essential in securing regulatory approvals, driving adoption, and
ensuring sustained investment. Companies that embrace this broader vision of trust build lasting
relationships, enhance brand loyalty, and strengthen their societal impact.
Today, businesses should not see trust as just a marketing strategy; rather, it must be a core
principle that drives both business growth and social progress. The question is no longer whether
energy companies should prioritize trust—the question is how they will ensure trust becomes the
foundation of their long-term sustainability.
How is your organization fostering stakeholder trust in the energy sector?
