Sustainability: A New Dimension of Brand Management

Regardless of category, marketers are convinced that sustainability has become one of the most important consumer-driven issues today.

Typically, brands build strong, enduring relationships with consumers based on their honesty, integrity and dependability. Yet regardless of how trustworthy they are or how well their products perform, few businesses ever achieve the status of “sustainability brand.”

So, let’s fix that.

What is sustainability — and why does it matter?

What determines sustainability branding? Is it related to adopting the United Nations’ 17 Sustainable Development Goals or increasing corporate social responsibility (CSR) efforts? Is it releasing a top-notch sustainability report? Or does it have to do with being listed on the S&P 500 ESG Index fund?

Sustainability helps companies build essential brand equity in consumer, service and industrial markets. More and more, companies are being driven by a combination of regulatory pressures and changing consumer attitudes to supply their products and services in a manner that benefits the health of our planet. Examples of these sustainability efforts range from committing to carbon neutrality and avoiding plastics to recycling waste materials and improving labor practices.

According to Business Wire, 60 percent of global consumers rate sustainability as an important purchasing condition. Some brands’ sustainability efforts have been so successful, they’ve turned their consumers into sustainability evangelists.

The basics of branding

Before we continue, let’s quickly review the basics of branding. There’s a common misconception that a “brand” is just the name of the company and the logo they use. While these elements contribute to the overall brand of a business, the term “brand” is so much more than that. It involves:

Brand identity: This is how you want your brand to be perceived or positioned in customers’ minds. For that, you need a well-defined mission, a unique, customer-focused value proposition and a strong visual identity.

Brand image: This is the actual customer perception of your brand. Your company’s communication activities go a long way toward helping you build your reputation in the marketplace.

Brand culture: This refers to your company’s core values and how it lives these values through all its operations — think of “respect” or “honesty,” for example.

Brand personality: This involves repositioning your brand in human terms, including how it behaves in certain situations and how it builds relationships. Developing a brand personality is vital to connecting with your audience emotionally and making your brand relatable.

Sustainable development takes center stage

Sustainability has become the new dimension of branding. Since the United Nations Conference on Sustainable Development in Rio de Janeiro in 2012 and earlier conventions in Kyoto, Japan, during the 1990s, sustainable development has not only become a central topic for politics but a dominant mission statement for the whole economy.

Unfortunately, global crises like the Great Recession in 2008, child labor practices, financial improprieties similar to the Enron scandal and ecological catastrophes like the 2010 BP Deepwater Horizon oil spill have severely damaged the credibility of many corporations.

Globalization, meanwhile, has ignited fears of climate change and dwindling resources, leading our society to rethink how we’re impacting our planet and inspiring people to do their part in creating a more sustainable world.

It’s time for corporations to take charge

While these developments affect everyone, few people have the power to make major differences themselves. That’s why more and more consumers are wielding their purchasing power to demand that corporations take action and address these problems — leading the way with sustainable development.

Integrating sustainability objectives into their businesses can not only help corporations conserve precious resources and reduce climate change but prevent unwanted social and ecological issues. And with people increasingly concerned about finding new ways to minimize the impacts on our living environment, it’s a surefire way to satisfy customers.

Sustainability benefits the bottom line

Systematically implementing sustainable practices into your management processes and marketing strategies has numerous advantages. For instance, studies have shown a positive link between sustainability and profitability. According to a Global Corporate Sustainability Report published by Nielsen, 66% of global consumers are willing to spend more on a product if it comes from a sustainable brand. Millennials are especially committed to the cause, with 73% willing to pay extra for sustainable goods.

Of course, profit is hardly the only advantage of sustainability. It also enhances corporations’ reputation and credibility, increasing customer loyalty and differentiating companies from their competitors. Today, Patagonia, Beyond Meat and Safaricom are just a few of the businesses that have thrived in their sustainability efforts while growing their bottom lines.

Making corporate sustainability a reality

So, how can your brand begin benefiting from corporate sustainability? A well-thought-out and intelligent management and communication plan is essential.

Corporate branding will play a crucial part in this since it’s the interface between your brand identity and its consumers. By highlighting the positive role your company plays in society, you can significantly affect your brand’s strength and equity. But don’t overdo it.

Avoid the “green sheen”

Excessive sustainability claims or the attempt to manipulate the public can lead to immense and often irreversible damages for the organization. Unfortunately, there are plenty of examples of brands that appear more sustainable than they truly are and have been accused of “greenwashing.”

Greenwashing, or the “green sheen,” is a way for companies to appear like they care while also increasing their profit margins, as they’re fully aware that eco-conscious consumers are willing to part with more money for sustainable products. This practice may involve cynical marketing ploys, misguided PR stunts or simply changing the packaging of an existing product while continuing to use unsustainable ingredients or practices.

How to do it right

Sustainability branding is largely about authenticity. Businesses must live and breathe it, integrating environmental, economic and social issues into their everyday operations. From solving today’s most pressing environmental challenges to building better relationships with consumers willing to pay extra for sustainable products, there are myriad reasons why brands should fully embrace sustainability.

But it’s simply not enough to be a sustainable brand. Sustainable brands must properly communicate their commitment to fighting climate change and combatting today’s social and environmental issues head-on. And we’ve all got to be genuine about it.

At the end of the day, sustainability is a journey, not a destination. Transforming your product, service or company into a sustainable brand takes time. It takes commitment. And it’s not just the smart thing to do for your business. It’s the right thing to do for the greater good.