Which would you rather buy, biodegradable soap that saves oil-covered ducklings or another brand that just smells like an overripe grapefruit?
Now, we suspect you might lean towards the one that saves ducklings. And here’s why that is.
As consumers, many of us are becoming more aware of our purchasing decisions’ environmental and social impact. We’re increasingly looking for brands that align with our values. In fact, 61% of Australians say that companies’ sustainability actions influence whether they buy the product or not.
This trend presents both a challenge and an opportunity for companies. On the one hand, there is a risk of losing customers if your brand is perceived as unsustainable. But on the other hand, there is a huge opportunity to create new and loyal customers by making sustainability a core part of your business purpose.
So, how do you get started?
In this article, we will explore how companies can turn sustainability into a business purpose. We’ll discuss how you can integrate sustainability into your company culture, operations, and marketing strategy, and in doing so, ultimately create more value.
What is Sustainability?
Sustainability is often used interchangeably with terms like “environmentalism” and “social responsibility,” but in reality, sustainability is about meeting the needs of the present without compromising the ability of future generations to meet their own needs. Sustainability is about creating a balance between environmental, social, and economic systems so we can thrive now and in the future.
That being said, incorporating sustainability into your business means more than just being “green” or doing good deeds. It requires a fundamental shift in the way you think about business. Rather than seeing sustainability as a compliance cost or an opportunity to do good PR, businesses need to see it as a potential competitive advantage and a way to create more value for your business.
4 Ways to Make Sustainability a Business Purpose
Making sustainability a business purpose is not a quick or easy task. It requires a long-term commitment from all levels of your organisation. And as Jochen Zeitz, the President and CEO of Harley-Davidson, puts it so well, “Sustainability is no longer about doing less harm. It’s about doing more good.”
Here are four ways to make your business more sustainable:
1. Incorporate Sustainability Into Your Corporate Culture
Sustainability should be a part of your company culture, not just an add-on or afterthought. Every employee should understand the importance of sustainability and how it relates to their jobーfrom the highest-ranking managers to the interns you hired the last week.
You can accomplish this through sustainability-themed incentives, training programs, and other efforts that will weave the culture of sustainability into the seams. You have to start from the inside out for customers to really buy into it, or they’ll think that it’s another marketing strategy.
Consider the luxury fashion brands LVMH and Kerin, which had been scrutinized for encouraging eating disorders among models. To integrate sustainability into their company culture, the two brands established new model standards that prioritise health and weightーa minimum size 34 for women and 44 for men. That way, they are not only setting an industry precedent, but also ensuring the well-being of their models.
It doesn’t always have to be about making environmentally-friendly products. Sometimes, you have to look at the bigger picture and take note of the societal impact you’re making.
2. Make Sustainability a Part of Your Operations
Of course, having a sustainable company culture should inevitably lead to having sustainable products. In other words, integrating sustainability into your operations is essential to making it a business purpose. You can do this in a variety of ways, such as:
- Using sustainable materials
- Implementing energy-saving products
- Supporting local communities
Your goal is to analyse the lifecycle of your end-products and ensure that each stage is as sustainable as possible. Determine the key performance indicators that’ll lead you towards sustainability, and you’ll be surprised with how many product innovations and improvements you can also unearth in the process.
For example, some companies like Nike have switched to using recycled materials in their products, and have even created shoes entirely from recycled materials. Others have installed solar panels or wind turbines to power their facilities, such as Apple. Still, others have established programs to help employees reduce their carbon footprint.
As a result, they all created new ways to do business that are not only more sustainable but also more efficient and cost-effective.
3. Communicate Your Commitment to Sustainability
Your customers want to know that you are committed to sustainability. And not that you’re “greenwashing” everything. They want to see it in the way you communicate authentically about your company and products. If you’ve ever seen a campaign done by Patagonia, you know how effective this can be.
Find a creative and strategic way to ensure that your website, social media, and marketing materials reflect your commitment to sustainability. You can also use eco-friendly packaging, print ads, and social media to tell your story and drive the point. And, don’t forget to bring your employees on board with your messaging by training them to communicate effectively about sustainabilityーeveryone needs to share the same message for customers to see the commitment.
The more transparent and open your company is about its culture and sustainable business practices, the more customers will trust you. And that’s invaluable in today’s world.
4. Collaborate with Other Companies
Working with other companies is another excellent way to make progress on sustainability goals. By working together, you can make a more significant impact than you could alone. After all, having a shared value approach reconnects your company’s success with social progressーwhere everybody is affected by the decisions your company makes.
For example, some companies have formed consortiums to develop sustainable supply chains. Others have teamed up to create sustainable energy initiatives. There are many possibilities for collaborationーthe key is to find the right partners and get started.
Alternatively, you can also support existing sustainable initiatives that align with your company values, such as:
- Renewable energy
- Clean transportation
- Green buildings
Get involved in the movement, and customers will realise just how serious your company is about being more sustainableーbecause you’re not only building a name for yourself, but you’re also getting behind on-the-ground projects that are already making a difference.
Sustainable Practices = Sustainable Business
Sustainability should be a business purpose because it’s the right thing to do for our planet and future generations. But it’s also good for business. A commitment to sustainability can help you save money, attract and retain employees, and boost your brand reputation.
It’s a win-win for everyone, even with the level of commitment and effort it requires from you.
Once you embed sustainability into your culture and operations, you’ll create a more sustainable future for each industry, company, and individual customer to live, earn, and become successful.
Do you need help improving your business operations?
Get in touch with our team to scale your startup towards success. With over two decades of experience and connections with international suppliers and retailers, ELR Executive can give your startup the leadership and find solutions to become more sustainable and thrive in the FMCG and Consumer Goods sector.
