Last week, I led a roundtable discussion: Does Sustainability Actually Matter in Business?
It turned out to be a great conversation with a few key points:
👉 Regardless of whether sustainability makes a business more successful - sustainability MATTERS. But people who care deeply about addressing environmental challenges struggle with the tension between (1) knowing that making eco-conscious decisions is critical for the planet while (2) recognizing the need to assess and justify the business value of these decisions.
👉 There is a lot of conflicting survey data out there about whether people care about sustainability when making purchasing decisions! For every survey that says "Nearly six in ten consumers surveyed are willing to change their shopping habits to reduce environmental impact." there is another one that says "25% of consumers who claim sustainability is a priority will actually choose price over sustainability if the two are in conflict."
👉 In reality, there is no singular answer. How and to what degree sustainability helps your business be successful is driven by your brand's unique selling proposition and the desires and identities of the individuals you sell to.
👉 Many of the most rapidly growing brands have rooted their entire DNA in sustainability, ethics, transparency, durability, and circularity. If that is your brand then YES - sustainability must be a key factor in every decision you make. (unsurprisingly, these are some of my favorite brands!)
👉 Other brands have built their USP on accessibility, convenience, cost competitiveness, and business model disruption. These brands can improve loyalty and employee satisfaction by making *more* sustainable decisions (but may not be well positioned to make the *most* sustainable decision at every turn - as cost, aesthetics and operations may need to come first)
👉 Other, often well established, brands have built their business on luxury, prestige, and design / performance innovation. For these brands, sustainability is often a requirement that in order to stay relevant, avoid internal or external backlash, and/or ensure they stay compliant with legislation.
Bottom line - it matters...and positive improvements can almost always benefit your brand / business -- but how and to what degree is unique to your value proposition.
https://lnkd.in/gdtxT-26
How do you answer this question in your business? Have sustainability improvements helped drive sales, acquisition, loyalty, cost savings, or mitigated risk / challenges?
#sustainablebrands #sustainablebusiness #sustainability #businessstrategy