The art of sustainable sustainability

Business Times 3 Nov 09;

Brands have an opportunity to contribute to the sustainability movement by creating demand for products and services that better our world. Devising a smart sustainability strategy is a necessity.

SUSTAINABILITY has become a catchphrase, applied to anything from cars to economics to agriculture and in so many contexts, that its meaning has become muddled and diffused.

And nowhere is confusion more visible than among marketers. While many understand the moral obligation of going green, most lack a clear definition of what sustainability means to their brand. This represents a missed opportunity to create a meaningful proposition and long-term value.

The 1987 United Nations World Commission on Environment and Development report, Our Common Future, defined sustainability as 'development that meets the needs of the present without compromising the ability of future generations to meet their own needs'. In other words, behave responsibly, don't take more than your share, and put back what you use.

While this may seem like a simple enough request, in reality it demands a profound change in perspective. After all, as consumers, we are used to making day-to-day choices based on what we want and need at that moment, and sustainability demands we do just the opposite: It asks that we consider our individual actions as part of a sustainable whole. This is in part why, according to Deloitte, 95 per cent of shoppers say they would consider buying a green product, but 47 per cent of shoppers see green products and don't purchase them.

While changing behaviour is no easy task, brands have an opportunity to help forge a better future. They can influence behaviour by informing the choices we make both rationally and emotionally. Brands have an opportunity to contribute to the sustainability movement by creating demand for products and services that better our world.

And yet, more than an opportunity, devising a smart sustainability strategy is a necessity. A number of factors are contributing to a changing landscape in which sustainability figures prominently.

The first is the increased pressure on individuals to 'do good'. This was perhaps best distilled by US President Barack Obama when he hailed this era the 'new age of responsibility'. His words hit a nerve not just in the US but globally.

Awareness is also on the rise. While purchase decisions may not yet reflect this, consumers are thinking about the excesses that led to today's economic situation and are beginning to seek out a 'less is more' lifestyle.

Even more than raised awareness, regulatory pressure is forcing more organisations to conduct business in a sustainable way. As a result, sustainability is even becoming a cost of entry to doing business.

Incentivisation is also changing today's landscape. In Switzerland, the government has strictly enforced recycling and anti-littering regulations. Further, citizens are given a financial incentive to recycle as much as possible, since recycling is free. As a result, Switzerland has become one the world's top recyclers.

Change is also being motivated by profit. Energy Star, the joint programme of the US Environmental Protection Agency and the US Department of Energy, helps save money and protect the environment through energy-efficient products and practices. Businesses have jumped on board because of both the cost-saving benefits and prestige.

A recent study by the National Environmental Education Foundation's Business and Environment Programme shows that for most companies, there is no single department that is entrusted with sustainability implementation. In fact, only one in 10 employees who participate in these programmes feels completely prepared to tackle sustainability head on.

Other businesses have implemented initiatives in a haphazard manner. Feeling the pressure to follow, they have looked to others - the few leaders that have taken charge in recent years - and mimicked their practices. While these companies may be getting away with riding coat-tails for the time being, as awareness increases, more businesses will be held accountable by public expectations and government regulations.

Businesses that have simply 'greenwashed' - said but not done - will be identified and cast out, not just by environmental groups, but by the general public as well. Sustainability will become ingrained in the fabric of how all companies do business.

That's why it is so important to craft a distinctive, relevant, and lasting proposition that will differentiate your brand. Do the right thing and do it right. It is not about saying that you are going to build a proposition that separates you from the rest; it's about building a proposition that is right for your brand and relevant to your industry.

If you look at any of the Best Global Brands, you'll see that they create value by generating demand, reducing risk, and securing future earnings for their business. They do this by translating to customers what is relevant in today's world and influencing buying behaviour. Due to distinct offerings, they develop a strong relationship with customers, and this leads to repeat purchasing. We need to view sustainability with the same lens.

If we can combine the rigor of branding with the aspirations of sustainability, we can begin creating long-lasting impact. Real change will come about when we see corporations start integrating sustainability as part of their business strategy and delivering it through the brand strategy.

This does not mean just reporting carbon emissions and showing transparency. While these are great steps, they do not contribute to changing behaviour. On the other hand, if businesses begin intercepting consumers' lives, approaching sustainability as they do brand, making their products and services the vehicles to deliver the message, they will create change.

Where to start

While no formula will be the same for every business, three essential points should be taken into consideration.

Set the highest standard for your industry.

Your goal should be to consistently uphold the highest standards in your industry and continue to push your success to higher standards. This is the definition for sustainability that's sustainable.

Measure the impact of your actions.

This is no small task, particularly in this economic climate when market values are fluctuating. However, you can measure the effectiveness of your sustainability efforts through the impact your brand has on influencing behaviour. This is where you will derive the most value.

Communicate your platform appropriately.

Communicate your platform so that you are always 'saying what you do and doing what you say'. Today's socially conscious consumer is increasingly holding brands accountable. A balanced message that communicates your aspirations but acknowledges reality is the right approach.

This article was contributed by Interbrand, one of the largest brand consultancies in the world. For more on Interbrand and the Best Global Brands, visit www.interbrand.com