Sustainability on the rise

A fragile topic 

After the excesses of post-war regeneration, subjects like CFC free aerosols, recycling and rainforest deforestation became a new worrying conversational topic. Luckily, things have moved on somewhat, but many of these issues remain a problem and are fragile in both eco and political terms despite the Kyoto and Paris agreements in 

1992 and 2015.

Initially, companies were able to just throw money at high-interest causes which were considered enough of a ‘good deed’. As many companies started to tout themselves as environmental champions, they were outed as merely greenwashing as it was found out that they were actually simply adding their name to an issue without really believing or supporting it.

Corporate challenges

Nestlé and Coca Cola have always both been subject to environmental and ethical challenges. Nestlé had the famed baby milk issues in the 70s, which it slowly overcame although it tainted the public’s perception and avoidance of purchasing the brand for multiple decades. Due to its size and use of plastic, CCE is also constantly in the spotlight.

Only recently, Nestlé encountered more wrath over its Chairman Emeritus, Peter Brabeck-Letmathe’s comments on water ownership which were taken out of context and seen that the company was charging people for water which is now, like oil, fast becoming a highly prized commodity. 

CSR

Nowadays, the larger, and more sophisticated companies have a Corporate Responsibility Team and detailed statements or policies to avoid being charged with greenwashing and having to deal with the ensuing PR disaster and being marked as completely inauthentic.

Unfortunately, with the rise of social media, comments can be taken and spread significantly faster than before which causes a real challenge for PR departments if this goes horribly wrong.

Transparency is therefore key and actually doing the right thing is highly valued by customers, and millennials in particular. Millennials prefer to do business with corporations and brands with pro-social messages, sustainable manufacturing methods and ethical business standards. 

Sustainable brands

In 2015, Nielson published its annual Global Corporate Sustainability Report. It indicated that, globally, 66% of consumers are willing to spend more on a product if it comes from a sustainable brand. Millennials gave an even more impressive showing, with 73% of surveyed millennials indicating a similar preference. Additionally, 81% of millennials even expect their favourite companies to make public declarations of their corporate citizenship. 

To add strength to their ethical and green credentials, some companies have also joined the FTSE4Good or DJSI (Dow Jones Sustainability Index) and produce annual Sustainability Reports. Unilever is a company leading the way in trying to take a lead by talking openly and proactively about social, ethical and environmental issues and attempting to be a lighthouse for big enterprises globally after seeing and realising the positive impact that this positive stance would take for their businesses around the world.

Purpose purchasing

The trend for purpose-led purchasing is greater among consumers in emerging economies than in developed markets. While 53% of shoppers in the UK and 78% in the US say they feel better when they buy products that are sustainably produced, that number rises to 88% in India and 85% in both Brazil and Turkey.

Keith Weed, Unilever’s Chief Marketing and Communications Officer says: “This research confirms that sustainability is not a nice-to-have for businesses. In fact, it has become an imperative. To succeed globally, and especially in emerging economies across Asia, Africa and Latin America, brands should go beyond traditional focus areas like product performance and affordability. Instead, they must act quickly to prove their social and environmental credentials and show consumers they can be trusted with the future of the planet and communities, as well as their own bottom lines.”