When your customers are focusing on issues of immediate survival, the long-term issue of sustainability may feel out of touch. But the two don’t have to be mutually exclusive.
It can be useful to look at any subject matter from the point of view of a singularity. It’s an approach that hypothesises a singular state, fact or quality that will result in acute change in human society, our commercial enterprises, to whit our brands.
In terms of sustainability, what’s the singularity? “When we trigger uncontrollable ecological collapse”. Scary.
With the world reeling from the deleterious effects of sustained environmental degradation, coupled with the economic fallouts of Putin’s war on Ukraine, a significant bread basket, a desperate humanitarian crisis in Gaza, sanctions on inter alia Russian oil and gas, and the possibility of WWIII, it’s not hard to see how the focus might shift from practices supporting long-term sustainability to short-term survival.
We see this repeatedly. When confronted with discounted oil and gas supplies from Russia, India is ready to engage. This, despite the more strategic sentiment that to sever any reliance on Russian supply in favour of long-term self-reliance and sustainable, renewable energy is a no-brainer and that savings now are unlikely to offset costs later. It’s a conundrum that countries, companies and consumers all find themselves in – seemingly between a rock and a hard place.
No time but the present
As seen in a recent study, South African consumers attach the most importance to pressing issues impacting their immediate wellbeing. Looking to the future is a luxury most cannot afford. Serious sustainability issues are treated as lesser concerns when compared to making ends meet.
This is not only true of South Africa – globally we see a continuum of countries where social issues are more immediate than environmental issues. Likewise, for brands on the journey to long-term sustainability, the cost of the transition remains an important barrier. If balancing short-term and mid- to long-term priorities has proven to be challenging, it is even more so as present-day economics manifest.
So, what’s the move? Sacrifice tomorrow for today? History will not be kind to those who make this choice. Oftentimes, the right thing to do is the hard thing to do. In this case, though, the right thing may not be as hard as we think.
Consumers are aware of and willing to engage with sustainability. In VML’s global Sustainability, Ethics, and the Modern Shopper Study 60% of consumers surveyed said they actively choose companies that are environmentally responsible, 71% of consumers said they wished brands and retailers would offer better environmental practices, and 67% of respondents said they would like more transparency on climate impact and are in favour of carbon labels.
In South Africa, we are seeing moves toward sustainable living beginning to emerge. South African consumers are taking action with regard to reducing food waste, using less water, buying locally produced goods, and bringing their own bags when shopping. Even so, South African consumers admit to struggling to act on their ideals and intentions.
Cashflow vs conscience
Looking at Brand Asset Valuator® (BAV – the world’s largest study of brands) data, the 100 brands that receive the strongest rating on the attribute "Committed to the Environment" lag the most on the perception of “Good Value”. Even among higher income households (HHI>100K), the top 100 “Committed to the Environment” brands are seen as less “Good Value”. Simply put, this suggests that consumers tend to prioritise value over environment when choosing a brand.
Given current economic circumstances, high prices will prevent sustainable shopping achieving mass market traction and therefore fail to unlock its full potential. In truth, lower prices are key to unlocking sustainable purchases, sustainably.
Shifting the narrative
Not only does price matter, but the language used for sustainability matters. Today, there is a shift in the narrative. Brand messages are moving away from doing less bad or compensating negative impacts towards having a positive impact and being a “force for good”. However, getting the words right is only the first step.
There is a significant gap between what brands say and what they do. Although consumers care about sustainability and the environment when they shop, few brands know how to meet their needs with tangible action.
Brands must move away from pledges to actions. Similarly, commitments by companies to decarbonise supply chains and operations look good on paper, but they need to be followed by action. Governments need to start playing a greater role to facilitate the transition not only with targets and policies but also with incentives.
Brands can play an important role in helping consumers shift their behaviour to sustainable living by making sustainable alternatives desirable and affordable, sustainable actions easy to do, and keeping sustainable brands top of mind.
Brands that are doing well in driving more sustainable choices realise that sustainability should not be a compromise. These brands not only provide a sustainability benefit but also solve a tension for consumers in a better, more meaningful way.
When we trigger sustainable ecological regeneration, together we can rewrite the sustainability singularity.
Download VML’s Sustainability, Ethics and the Modern Shopper study here.
