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Changing weather conditions, devastating floods and unprecedented wildfires have dominated the headlines in recent years. Combined with ongoing warnings about the harmful effects of climate change overall, these events have raised consumer awareness of the impact of everyday shopping on the environment and society at large.
Sustainability has becomean extremely disruptive phenomenon affecting business“The changes are not limited to environmental measures in the traditional sense. Rather, a more modern view of sustainability encompasses environmental, societal, and even economic factors.
Brands that want to stay ahead of their competition need to put sustainability at the heart of their identity to build a secure future.
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The importance of sustainability and green branding
It is almost impossible to escape the daily headlines about the negative effects of climate change on entire populations. However, in this article, we focus on the impact of the sustainability transition on businesses and the opportunities presented by green branding.
First and foremost, offering sustainable products and positioning a brand as one that puts sustainability at the heart of its choices helps companies attract new customers. Almost four out of five respondents to a recent Nielsen IQ survey said so They value a sustainable lifestyle.
Adding to this sentiment, consumers are increasingly willing to back up their intentions with actual purchases. This was the result of a study by Deloitte from 2022 two-thirds of all respondents were willing to pay a premium for sustainable offerings. The research went one step further and found that these consumers would consider spending up to 41% more on green offerings.
Deloitte’s results reflect those of a 2020 McKinsey consumer sentiment survey which specifically focused on sustainable packaging. In this survey, more than 60% of respondents said they prefer brands that offer sustainably packaged products.
Green branding can help your business attract new customers and become more profitable. But how about the alternative: Can companies afford to ignore sustainability and the impacts of climate change? The answer is no. Asked about Deloitte’s 2022 C-Suite Sustainability Report97% of participants indicated that their companies were already affected by disrupted supply chains and business models.
In order to secure the future of the company, it is necessary to put sustainability at the heart of your business, including your branding.
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Strategies for sustainability and green branding
How can companies implement sustainable practices? The options depend on the type of business.
- Procurement of environmentally friendly materials is one of the most obvious options for brands to increase the sustainability of their products. Ensuring that raw materials come from reputable and proven sources boosts consumer confidence.
- Reducing waste throughout production and other business processes is another way for companies to become more sustainable. Not every company will have the same potential in this regard. But even if your business provides a service, there are generally areas where waste can be reduced to help protect the environment and reduce costs.
- Look beyond the environmental aspects of sustainability and consider elements such as diversity and inclusivity. They all increase the sustainability of the brand and contribute to its positioning as a responsible company.
Implementing sustainable business practices is not something reserved for large multinational corporations. Businesses of all sizes have the opportunity to identify and work on improvement opportunities.
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case studies
Here are just two examples of companies that put sustainability first.
1. Patagonia
Outdoor apparel brand Patagonia has built its reputation on both durable, high-performance gear and a focus on sustainability. In 2022, the company founder and his family went one step further. Rather than sell the company to secure a comfortable retirement, the Chouinard family donated Patagonia to a charitable and purpose-built foundation.
The stipulations are simple: all profits are used to fight climate change and protect undeveloped areas worldwide. Patagonia’s move was widely publicized and removed any doubt about the company’s position as a leading sustainable brand.
2. Beyond flesh
Vegan meat maker Beyond meat is a company whose goal is to offer a more environmentally friendly alternative to traditional meat. The company also prides itself on making a burger from simple ingredients that uses less water and has significantly lower greenhouse gas emissions than traditional beef burgers.
challenges and risks
Like all major business transitions, adopting a green brand and shifting to more sustainable business practices are not without risks and challenges for businesses. However, with a sound strategy, these can initially be overcome or mitigated.
- Green washing: To be successful over the long term and to resonate with consumers, sustainability efforts must be sincere. The practice of greenwashing, where companies make environmental claims that turn out to be untrue, can be extremely damaging to a brand’s reputation. Instead of making big claims, companies are more successful when they prioritize smaller but consistent efforts.
- Increased costs: Sustainable raw materials are often more expensive than other materials. However, keep in mind that customers are happy to pay more for sustainable products and services. Weigh your costs against the benefits of accessing new audiences and ensure your business charges a fair price to mitigate this risk.
These are just two examples of the potential challenges and risks brands face in their sustainability transition. While they can pose a serious challenge, none is as dangerous to your brand as risking being left behind by competitors committed to sustainability.
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Diploma
In recent years, consumer attitudes towards sustainability have changed dramatically. Sustainability, including environmental, social and other aspects, has an increasing impact on purchasing decisions. Research shows that consumers have good intentions and are willing to back them up with actual purchases. To secure their future, brands need to embrace sustainability now or risk falling behind.
