Purchasers are progressively leaning toward brands with a promise to environmental sustainability
Global leaders have been stressing how necessary it is for brands to practice environmental awareness. Truth be told, looking at the impact of climate change, plenty of consumers have now started supporting brands and labels that are woke and centred around accomplishing something useful for the environment.
An independent study commissioned by SmartestEnergy also reveals that purchasers are progressively leaning toward brands with a sustainability promise. The study discloses that four out of five individuals depict themselves as liable to pick a brand with a positive way to deal with green variables.
Besides, with regards to business and brands, consumer expectations are definitely changing, and quality and affordability aren’t all that matter anymore. On a wide scale, companies’ social and natural practices are likewise being firmly watched. A recent survey from Accenture shows that shoppers are giving genuine consideration to how companies position themselves with respect to social and climate issues.
If there’s a match between both sides (company and customer), then the consumer will engage with the company and feel part of the corporate tribe. If there’s no match, 42% of consumers will step away from the brand, and 21% will most likely never come back and won’t allow these organisations a subsequent opportunity.
Same goes with the investors. They have gotten truly selective with a company’s values and how transparent they are when it comes to a brand’s commitment to environmental issues. In fact, plenty of investors are more focused on climate change when deciding their portfolios than ever before.
A new study from Schroders has found that sustainability is moving up the agenda post-pandemic, with 55 per cent of investors now placing greater importance on environmental issues.
Taking an example of Swedish furniture brand IKEA, which has invested in sustainability throughout its entire business operations, the company credits their massive turnover to the ideals they have incorporated in their structure. Starting with their supply chain, IKEA sources close to 50 per cent of its wood from sustainable foresters and 100 per cent of its cotton from farms that meet the Better Cotton standards, which also mandate reduced use of water, energy and chemical fertilisers and pesticides.
IKEA is also very transparent about its moves when it comes to caring for the environment, and that’s why consumers trust the brand.
There’s also a drastic increase in sustainable brands. According to Unilever, a third of consumers choose to buy goods and services from brands they understand are doing social or environmental good. Of the surveyed people, 21 per cent also said they’d choose brands actively working on the sustainability of their packaging – showing that the awareness about global waste is also growing.
Unilever itself has made sustainability its corporate identity. The company’s Sustainable Living Plan sets targets for sourcing, supply chain and production on everything from energy and water use to treatment of suppliers and communities where they operate.
Consumers and investors trust the brand for its transparency in disclosing their future plans. The company is finding new lower carbon ingredients and reformulating its products to offer plant-based alternatives like vegan foods and fossil fuel cleaning products. Unilever is also aiming to achieve net-zero emissions from their products up to the point of sale by 2039, which is quite promising.
Many corporate leaders, and investors now understand that businesses have a key role to play in tackling climate change. Robert G Eccles, and Svetlana Klimenko from Harvard Business Review recently interviewed 70 senior executives at 43 global institutional investing firms about their perception towards companies with a green plan. They found out that “investors have been voicing concerns about sustainability for several decades. But not until recently have they translated their words into action.”
“Most of the investment leaders in our study described meaningful steps their firms are taking to integrate sustainability issues into their investing criteria,” they wrote. “It was clear to us that corporate leaders will soon be held accountable by shareholders for ESG performance – if they aren’t already.”
Furthermore, millennials from this generation care a lot for the environment. They are the most likely demographic to tell friends and family about CSR efforts and to give brands criticism about their techniques. It is wise for any brand in this day and age, especially the ones targeting the millennials, to add a green plan as a part of their plan of action.
Adam Butler from Forbes wrote that “understanding how to promote your corporation as eco-friendly in marketing positions [your brand] in high performance.” He also highlighted how important it is for a brand to not just announce, but also follow up on their plans.
Some options brands can incorporate are use of recyclable packaging, use of wind or solar power, reusable versus disposable options, eco-friendly educational materials, waste reduction policies and energy conservation policies.
As consumers are becoming better informed and more aware of the impact a bad environmental plan can have on earth, they are additionally worried for their kids with regards to practising environmental awareness.
Thus, they are demanding that industry improves the environmental performance of its products. Therefore, having a green marketing plan can improve a brand’s reputation, gather a good amount of customer loyalty, drive sales, and positively impact this world.