Sustainability
How Brands & Consumers are Addressing Today's Challenges for a Healthier Planet Tomorrow
The Quest for
Environmental
Sustainability
While most consumers and businesses alike say they want to be better
shepherds to the environment, what does that actually mean?
And how do they make it happen?
While there are innumerable paths for this conversation to take,
we focus this deck on how brands are lessening their environmental
impact and becoming more environmentally sustainable.
SUSTAINABILITY:
Meeting today's needs without compromising future generations.
The environment, society & economy are intertwined to achieve this.
Sustainability was only relevant to
20%
of the U.S. population
2002
93%
of the U.S. population
engages in at least one sustainable practice
(recycling, shopping locally, avoiding single-use disposable items, buying from brands with fair labor practices, etc.)
TODAY
There is Near Universal Agreement Across Multiple Audiences That
Something Must be Done
89%
state sustainability is an important consideration
of institutional investors
75%
support U.S. participation in int'l efforts to reduce climate change
of Americans
But Sustainability is Puzzling.
Let's Consider Broccoli...
Click the arrows below for more
ORGANIC
CONVENTIONAL
While many assume that organic is
more sustainable, the reality is that
both impact the environment more or less the same.
of Americans don’t know how
to identify sustainable products. And it kind of makes sense,
it’s confusing.
74%
Positive
for the
Environment
Less aggressive
pesticides
Likely grown
across the US
Negative
for the
Environment
More land required
to get same yield, leading
to increased run-off
Low supply in U.S.,
likely imported
(additional gas, etc.)
Exhausts the
land faster
More aggressive pesticides and fertilizers, leading
to run-off
Sustainability
Four Trends That Will Hold True in 2022/23
Hover over each topic to learn more
01.
Inflation fuels plant power
02.
Push to integrate
into company culture
03.
Increased regulatory pressure
04.
Consumers want the
most, will
act the least
01.
Vegan proteins have seen a spike in sales as cheaper, more environmentally
friendly alternatives
Marketing Implications
Convey sustainable benefits
of a brandbeyond simple
price considerations
Inflation fuels plant power
02.
Consumers and employees are quick to spot green-washing. Expect sustainability to be tied to company values & retention efforts
Marketing Implications
Interconnected campaigns across brands & CSR
Push to integrate into company culutre
03.
Governments likely to follow the EU, enforcing companies to disclose emissions
Marketing Implications
Expect businesses to hold
their partners and suppliers more accountable
Increased regulatory pressure
Even with a desire to act sustainably, consumers are hesitant to make changes
that significantly alter
their lifestyles
04.
Consumers want the most, will
act the least
MARKETING IMPLICATIONS:
What does Sustainability Mean
for Different Brands and People?
Restaurant
“Diners are increasingly conscious of where their food comes from, the impact it has on our global ecosystem, and more mindful of “greenwashing.” But supply chain issues, price sensitivity and demand for delivery make it harder than
ever for restaurants to act in a sustainable fashion. Brands that truly have sustainable behaviors embedded throughout their organization will begin telling this story more broadly
in market to connect with these diners and drive a return
on these investments.”
VP CLIENT STRATEGY - RESTAURANT
Adam Daniele
BRANDS LEANING IN
Global aim to reduce emissions 36% by 2030
10% of officers' incentive bonus is tied to
progress toward achieving ESG goals
Pledged to make all packaging compostable and recyclable by 2025; menu innovations promote meatless eating
Nearly
7 in 10
HOW THE CATEGORY IS EVOLVING
B2B
“Quote Here."
SVP CLIENT PARTNERSHIPS - B2B, FINANCE
Carolyn Starmann
BRANDS LEANING IN
HOW THE CATEGORY IS EVOLVING
BCG has invested $240M in climate initiatives and plans to reach Net-Zero by 2030
Salesforce already achieved net-zero emissions across their value chain and operates with 100% renewable energy for their operations
Klarna recently launched a CO2 Emissions Tracker App and has pledged to use 100% sustainable power by 2025
Automotive
"The Automotive industry's work to achieve environmental sustainability is a catalyst for change impacting not only the industry, but also society. Many companies have partnered with the Science Based Targets Initiative (SBTi), establishing targets and milestones to become net-zero emissions producers. Through such collaborations, the industry is committing to goals impacting their full ecosystem. When you think about it, the electric vehicle is really the consumer-facing demonstration of the industry’s sustainability efforts. Those vehicles - consumer and commercial – are the mechanism in which the auto industry is shifting our
society towards a more sustainable future."
VP CLIENT STRATEGY - AUTOMOTIVE
Megan Ryan
BRANDS LEANING IN
HOW THE CATEGORY IS EVOLVING
By 2035, aims to have eliminated all tailpipe emissions from new light duty vehicles and
by 2040, carbon neutral in global products
and operations
Albeit a result of the VW emissions settlement, it has been one of the few - if the only charging brand - to advertise on behalf of EVs. Their network does not require a subscription
and offers maximum charging kW
By 2025, aims to have 25% of plastics be bio-based or from recycled materials and by 2040, net-zero through direct and indirect emissions
Consumer
“There exists a real lack of knowledge among US consumers around sustainability, as well as perceived challenges around the concept of actually living sustainably. A newly released study on the topic from Mintel also shows that this confusion around sustainability is consistent across all consumers regardless of HH income and education. Brands have an opportunity to provide greater education on the topic – consumers’ expectation for brands to deliver on sustainability practices is high and they will go out of their way to support the brands that live up to this. With the current climate around inflation being of utmost importance in consumers’ minds, brands should consider ways to appeal to those personal concerns impacting their wallets and quality of life.”
VP INSIGHTS & RESEARCH -
CULTURAL INTELLIGENCE
Dana Sparber
BRANDS HAVE AN OPPORTUNITY TO EDUCATE:
HOW CONSUMERS ARE EVOLVING
consumers find sustainable living to be challenging, and half feel that the pandemic has made it even more difficult
Only
4 in 10
consumers consider living sustainably
to be a top personal priority
Only
1 in 4
consumers say they are very knowledgeable about the sustainability efforts of companies they shop from
Over
Half
of consumers would pay more for a sustainable brand – and this is even higher among key multicultural, LGBTQ+ and Parent cohorts
SO WHAT CAN BE DONE?
How Brands & Consumers Alike Can
Live More in Synch With The Environment
The Footprint
Focus attention on environmental footprint,
not just carbon. It considers both greenhouse gasses
plus other ways choices
impact the environment.
Everyone's Doing It
The easiest way to build momentum? Leverage a behavioral economics trick and showcase the ways in which consumers and brands are already being sustainable.
The Packaging
Half of all consumers are
most aware of sustainable solutions around packaging,
so it’s a good place to start.
Be Transparent
Consumers prefer brands that are trying but committed over brands that market without meaningful contributions.
Thank You
FOR MORE INFORMATION,
PLEASE REACH OUT:
Gina Reduto
SVP, Client Strategy
Gina.Reduto@nbcuni.com
BACK TO TOP
Multicultural
“Concern about the climate crisis is reaching a
boiling point with consumers, especially Multiculturals, becoming more sensitive to the societal and environmental impact of their purchase decisions. In a political climate that’s failing to meet consumer needs, many are ‘voting
with their dollars’ to support brands that engage in sustainable business practices and align with their
beliefs. Companies must respond and position
themselves as leaders on the issue of sustainability."
VP CLIENT ADVOCACY
Ellen Falb-Newmark
HOW MULTICULTURAL CONSUMERS ARE LEANING IN
HOW MULTICULTURAL CONSUMERS ARE THINKING ABOUT SUSTAINABILITY
Multiculturals are leaders in environmental consciousness as 53% identify themselves as more environmentally conscious than others
Almost 6 in 10 (57%) Multicultural consumers are more likely to purchase from brands that support causes they care about
59% of Multiculturals will pay more for
a product that has been deemed safe
for the environment
53%
57%
59%
Click for Source
Sources: NMI Mainstream consumers adopt sustainable practices; Mintel: The Sustainable Consumer, U.S., April 2020
Click for Source
Sources: HSBC 2021 Sustainable Financing and Investing Survey; Pew Research
Click for Source
Source: Businesswire
Click for Source
Source: 2021 MRI-Simmons Spring Any Agree. Multicultural Consumer defined as Race: Black/African American or Race: Asian or Spanish, Hispanic or Latino Origin or Descent
Click for Source
Source: Mintel, The Sustainable Consumer, US 2022. Mintel, Corporate Social Responsibility in Retail, US 2022. Multicultural based on Hispanic, Black/AA consumers.
Click for Source
Packaging Source: GWI Zeitgeist Survey 2021
Marketing Implications
As inflation saps consumer spending, sustainable brands must do better at demonstrating their value proposition
Click for Source
Source:
GM,
Electrify America,
Volvo
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