Sustainable marketing – is there even such a thing or are we once again just trying to use the word “sustainable” in yet another context?

Eco-friendly and sustainable – these are frequently used words we marketers use in different advertising and marketing contexts today. But what does it really mean, and is it all the same when it comes to the world of marketing? The simple answer is no.

Lets start by looking at some of the definitions that exist today. The original definition of sustainability is the ”development that meets the needs of present generations without compromising the needs of further generations”(1). Eco-friendly on the other hand is defined as “not environmentally harmful”(2) , which essentially means that everything from production to packaging should be safe for the planet. To be truly sustainable an organization must generate environmental, economic, and social benefits without causing pollution throughout the whole life cycle, in the present as well as in the future.

Based on the former definition, we can say that a marketer’s primary role is enabling this development through communication and activities. However, this may leave marketers feeling as if they have little influence or power to be “sustainable” in their practices given the various components, departments and people that are involved in the production of products and services; we´re talking about the whole supply chain here and not just the bottom line and what messaging we include in an advertising campaign.

So is there anything we as marketers CAN do and WHY should we bother?

Let’s start by looking at the WHY.

One simple reason (and an important one most organizations should consider) is that the global green technology and sustainability market size is expected to reach 89.97 billion USD by 2032 (compared to 16.48 billion USD in 2023 (3)). Other benefits include increased brand recognition and customer loyalty, improved effectiveness, increased ROI whilst reducing costs and waste.

Another reason is the customer – the people who actually purchase our products and services. To understand the importance of sustainable marketing let’s take a closer look at what the customers value and want in 2024 (4,4.1):

• For those consumers who say sustainability is important, 73% of consumers are willing to pay more for products branded as environmentally sustainable, up from 50% in 2022.
• Almost 2/3 say trust is crucial when choosing a brand, with purpose-driven consumers still being the largest market segment (45%). These consumers care deeply about environmental sustainability and look for brands that align with their values and provide health and wellness benefits. They care so much that they are willing to change their shopping habits to change their shopping habits (61%) to help reduce negative environmental impacts.
• 67% say at least half of the products they bought in their last purchase were sustainable.
• However, there is still an underlying perception that there is insufficient information to shop sustainably (41%) and consumers think there is a lack of reporting and metrics available on the areas they care most about such as safe and natural ingredients and materials along with the use of recycled material.

Consumers want their purchases to reflect their values and make a difference. Simply launching a campaign promoting a “sustainable” product is not enough to ensure customer loyalty and repeat purchases. A comprehensive strategy is required, aligning your brand and goals with activities that meet customer expectations. Recognizing this, 77% of business leaders agree that genuine sustainability investments will accelerate business growth and enhance brand value.

And what CAN we as marketers do?

Being a sustainable marketer requires involvement across the entire organization, from C-level to strategy, to product development and integrating sustainability KPIs into the business agenda. It means taking a really close look at what you are offering, how you package, promote and deliver the products to your consumers. The first step when it comes to marketing is to make sure your product or service is sustainable (no greenwashing) and then you really need to focus on the consumer. Align your strategy with your products and campaigns and make sure your marketing strategy and what you communicate is:

• Customer centric
  ○ Respond to consumer needs, interests, expectations and values in a clear, honest and credible manner
  ○ Be open, authentic and transparent and connect with your customers and what they care about
  ○ Make sure your engagement is visible and trustworthy, using certificates, footprint and supply chain information that is legally compliant (and with the “Green Claims Directive”(5)) organisations can easily back up their “green” claims  with verifiable evidence)

• Value based
  ○ Ensure there is true value in what you are promoting, through higher quality, competitive prices and availability
  ○ Provide a seamless customer experience and help your customers along the way. Make it easy for them to find your product, help them make the sustainable choice and inform them of why they should choose it and what makes it sustainable. Educate them, on how they as customers can contribute to being more sustainable by for example taking care of the products they are about to buy.

Sustainable marketing cannot be done without incorporating other areas of the business. However, we can ensure that we as marketers do our part and create value for our customers and help both consumers and businesses understand what a brand stands for, what aspects of a product or service make it sustainable and how consumers can make a difference and contribute to a greater good by making the right choice. Communication needs to be considered across the entire spectrum, not only from a promotional aspect but also from product, packaging, purchasing and distribution channels and delivery. And tying it back to our definition earlier, whatever we do here and now needs to be considered from a long-term perspective.

1. World Commission on Environment and Development Brundtland report 1987
2. Merriam Webster Dictionary – eco-friendly
3. Fortune business insights – Green technology and sustainability market Aug 2024
4. IBM report: Consumer study 2024: Revolutionize retail with AI everywhere, ^4.1 IBM report: Consumer study 2022: Consumers want it all
5. European Commission – Green Claims Directive

 

Author: Magdalena Lindquist