Sustainability - We’ve all heard the harrowing statistics, we know it’s an important consumer hot button, and we don't want to continue to contribute to the problem. So why are businesses so slow to get on board with tackling sustainability? Why is something so important to long term brand relevance and business success so difficult to get off the ground and implement?
The case for companies championing sustainability is strong! And the numbers stack up. Let’s look at some data from the IBM Institute for Business Value (IBV) who undertake a number of research projects across consumers, CEO’s and employees each year.
IBV Consumer research conducted in 2022 revealed that consumers are changing their habits to reduce their environmental impact. Almost 2 in 3 (64 percent) say products branded as environmentally sustainable or socially responsible made up at least half of their last purchase. And roughly half (49 percent) of consumers say they paid an average premium of 59 percent for products branded as sustainable or socially responsible vs 12 months ago.
Business leaders are also under pressure, IBV’s 2022 CEO study revealed that almost four in ten (39 percent) executives said that environmental sustainability is a top priority for them today, and more than half (53 percent) said it would be a top priority in three years.
An IBV Employee satisfaction study found that over 70 percent of surveyed employees and job seekers believe “environmentally sustainable companies are more attractive employers.” And almost half of those surveyed reported a willingness to take a pay cut to gain employment at these organizations.
So why is implementing this very necessary shift so difficult for businesses?
Fear of greenwashing: Businesses may be fearful of criticism or backlash if they don't get sustainability and the reporting perfect or if they perhaps fail to deliver on a specific goal.
Fundamental change requires collective action: Sustainability does not fit neatly into the modern business model because it requires multiple departments, multiple inputs and multiple levels. Therefore, it is often difficult to drive sustained engagement and action.
Profits (generally) rewarded over business change: Traditionally, the C-suite hasn't been tasked with delivering sustainability as a measure of success. Bonus structures and rewards systems are usually linked to commercial achievements and profit, possibly with some softer people metrics such as engagement scores built-in for ‘balance’.
What should be measured, by when and by whom: Things that affect people and society at a macro level may be more difficult to gain clear-cut data, and their impacts are not always immediately obvious. Sometimes the plethora of choice creates inaction and confusion. Not to mention who should be measuring and juggling the required multiple data sources.
Here are five ways to accelerate sustainable adoption within your business:
- Start seeing sustainability as an opportunity: It's a myth that businesses have to sacrifice results to reach their sustainability goals. Executives that view sustainability as an opportunity and incorporate these goals into border strategic objectives will be sure to see the returned business value.
- Harness the power of technology: Digital technology can give leaders a foot up in their quest for sustainability. Technologies such as the cloud, AI and blockchain can provide usable data and insights that would help businesses set, track and manage improved, sustainable operations.
- Set measurable (and achievable) targets: Sustainable targets should be embedded into the business strategy and understood by stakeholders. If the leaders of a business don't know their targets or they’ve created targets that aren't achievable, they may struggle to make changes that inspire others and move the needle.
- Share the load: Sustainability needs to be embraced and activated across the whole business. No one department or individual can make the significant changes required. It starts at the top and should form part of every level of the business. Incentivising this change in behaviour may help employees adopt ‘green habits’ faster.
- All in this together: No single organization can curb climate change on its own. We need to work together with our partners and suppliers to create meaningful and sustainable change. Transparency and collaboration is key. Organizations should work together with other businesses to achieve set targets, reduce risk and boost efficiencies.
The sobering reality is that we won’t solve this issue in my lifetime, but if we continue to do nothing, there won't be much of a planet left. A report by The World Bank estimates that by 2050 the world will generate 3.4 billion tonnes of waste annually, and unchecked CO2 emissions will contribute to a temperature increase of two degrees Celsius - making life on this planet almost intolerable. Now is the time for businesses to step up and become part of the solution, cut down on emissions and waste, invest in their people as finite resources, change behaviours and contribute to stopping the damage (as much as we can).
This column was written by Fiona Kerr, Head of Brand and Customer Experience at VAPO
