In the business world, “sustainability” has become a buzzword used to appeal to environmentally-conscious consumers, leading to greenwashing or exaggerated claims. Consumers are becoming more aware of their impact and expect genuine sustainability efforts from businesses, not just lip service. This blog post delves into the uncomfortable truths about sustainability branding, emphasising the need for transparency and real action towards a sustainable future.
#1: Greenwashing Is Everywhere
Greenwashing refers to the practice of companies making exaggerated or false claims about their environmental friendliness to create an impression of being socially responsible. According to a 2018 Nielsen survey of global consumers, 41% of consumers are willing to pay a premium for products from sustainable sources such as all-natural or organic ingredients. This has led to an increase in the prevalence of greenwashing. To avoid falling into this trap, companies need to take real steps towards sustainability and be transparent about their efforts. This will help build trust with consumers and prevent potential backlash from being caught in greenwashing practices.
#2: Content Fatigue
Consumers are becoming more sceptical about sustainability claims from companies, leading to a phenomenon called “content fatigue.”
To combat this, companies must demonstrate their authenticity and commitment to sustainability through measurable actions and results. An excellent example of this is Patagonia, whose owner Yvon Chouinard donated the company to a climate non-profit, making the Earth “their only shareholder.” This move received much praise not only for the message it sent but also because it aligns with Patagonia’s track record of practising what they preach. By following Patagonia’s example and taking real action towards sustainability, companies can build trust with consumers and make a genuine impact towards a more sustainable future.
#3: Brands Jumping on Bandwagon and Taking Advantage
With sustainability becoming a popular trend, some companies are using green marketing tactics to mislead consumers. This not only deceives customers but also undermines the efforts of truly sustainable brands.
To build lasting customer relationships, brands must take real steps towards sustainability and be transparent about their progress. Even brands that are making progress towards sustainability, such as Ganni, a Danish fashion luxury brand, need to be honest about their current sustainability practices and be transparent with their customers. For instance, Ganni has acknowledged that they are not a sustainable brand, despite their environmental initiatives, and are committed to doing better.
#4: Brands Unable to Fulfil Their Lofty Goals
While setting sustainability goals is important, actually achieving them requires a concrete plan and long-term commitment. They must invest in sustainable practices and technologies, monitor their progress, and report on it. This builds consumer trust and demonstrates a genuine commitment to sustainability. Ørsted, for example, made the bold decision to divest from fossil fuels and transition to a fully sustainable business model, with the goal of achieving net-zero carbon emissions by 2025. They have since established a sustainability team, framework, and reporting that helps them to address the challenge of lofty goals.
#5: Unable to Measure the Impact
Measuring the impact of sustainability initiatives is a challenge for many brands. To overcome this, companies must be willing to invest in measuring and reporting on their environmental impact and be transparent about their successes and failures.
One example of a company that has consistently invested in corporate social responsibility and environmental stewardship is IBM. The company’s first sustainability report in 1990 and their energy-efficient data centres earned them awards from the European Commission. IBM’s commitment to sustainability has been recognised globally, and they continue to push forward with their sustainability initiatives.
In today’s world, consumers demand more than just sustainability talk from businesses. They want to see real, measurable action and transparency towards sustainability. One way companies can address this is through sustainability reporting, which enables them to track and communicate their sustainability efforts. By taking these steps towards transparency and accountability, businesses can build trust with consumers and make a positive impact towards a more sustainable world.
We have helped our client, SingPost use their sustainability report to effectively communicate their sustainability initiatives to stakeholders. Our expertise in sustainability communication has helped SingPost promote transparency and accountability in their sustainability efforts. To see how they are making a difference towards a more sustainable future, check out their Sustainability Report.
