How sustainability concerns are affecting the consumer sector

There has been a recent explosion of sustainable brands and prevalence of sustainability pledges from large corporations in part to meet the demands of more sustainability-conscious consumers.

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The second Global Sustainability Study 2022 conducted by Simon-Kucher & Partners, reveals that:

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• 56% of UK consumers rank sustainability as a top-five value driver, despite the cost-of-living crisis over the past year.

• In the UK, 75% of respondents have changed their purchasing habits over the past year to be more sustainable.

• 74% of those surveyed in the UK indicated that over the last five years, their purchasing behaviour and choices shifted towards buying more environmentally sustainable products

James Brown, UK Managing Partner at Simon-Kucher said:

“With attitudes and behaviours towards sustainable consumerism trending upwards year-over-year, it’s clear that sustainability is not a fad and is here to stay.”

So what can consumer-focused SMEs do to ensure they ‘get it right’ in the eyes of potential customers?

The data was taken from a national survey, but we’ve seen it in our world too.

Rowan client Guy Fennell, owner/founder of sustainable baby product manufacturer Pura, founded the business as a response to a lack of sustainable options in the market.?Rowan worked with Pura to appoint CFO Andy Johnson in early 2022.

Key to ‘getting it right’ for Pura is the authenticity with which the business relentlessly pursues its sustainability agenda. Guy and his wife and co-founder Abi genuinely care about making the world a better place, and this comes across in everything Pura does; resulting in the sought-after B Corp certification in 2022.

Guy said:

“When my wife Abi and I discovered that 90% of UK wipes contained hidden plastic, we knew that we had to do something to drive positive change for the planet.

?Because we believe that living more sustainably shouldn’t mean parents have to compromise on quality, convenience or value, we set out to create a brand that would “democratise eco” with affordable products that are good for babies and better for the planet.

Beyond providing great products, it was important for us to ensure we used the business as a force for good. We started the journey to becoming a B Corp in 2020 and are really proud to have achieved B Corp certification in July 2022.”

Pura is also the only nappy brand to partner with nappy recycling service NappiCycle, and together, they’re working to keep nappies out of landfill and turn them into everything from housing materials, to notice boards for schools and nurseries.

The business also employs a Sustainability Director.

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Pura’s customers appreciate the genuine, authentic efforts that the business is making to both be sustainable themselves and promote sustainability more widely. The company has grown rapidly with its sustainability ethos at the core of everything it does, and it has attracted a loyal, engaged and like-minded customer base.

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Another Rowan client that is ‘getting it right’ is Duo, a sustainable packaging manufacturer. Duo also works with other businesses on a consultancy basis, helping them to promote and effect better sustainability in their own operations. Rowan appointed CFO Martin Henderson to Duo in June 2022.

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Zoe Brimelow, a Brand Director at Duo UK, agrees that authenticity and concrete action are key to ‘getting it right’:?

“I work with a lot of supply chain executives and, rather than just having sustainability as a core value or aspiration, businesses need to be confident and transparent about their progress and the areas they are focusing on in the future.?

Businesses demonstrating action, rather than just promising change, will win consumers over.”

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This was echoed by Louise Stephenson, a Rowan Director and Consumer specialist:?

“With global supply chain challenges on the rise, some SMEs are facing difficult decisions between efficiencies and sustainability. ?

Whilst it isn’t always possible to retrospectively develop a completely sustainable supply chain today, consumers want to see transparency around where their goods are coming from.?

They appreciate businesses that have a genuine interest in promoting greater sustainability and are taking active steps to improve it within their own operations.”?

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Of course, there are different rates of change for achieving sustainability based on the industry sector and product or service a business sells - but it’s the authenticity of the effort and actions to become more sustainable that will ultimately win consumers over.?

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The effects on appointing business leaders ?

Louise has also felt the effect of sustainability concerns when running leadership optimisation and executive search projects for her clients, commenting:

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“Business leaders are more interested than ever in working for businesses that prioritise sustainability, particularly in retailers of manufacturing-intensive products; fashion, fabrics, cosmetics etc. ?

Plenty of business leaders need to be convinced that supply chains are both ethical and sustainable before they will consider joining a business – this could be the difference between a high-performing leader choosing one SME over another as his or her next destination.”?

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This holds true for the aforementioned Andy Johnson, Pura’s CFO

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Andy said: ?

“Pura’s sustainability efforts positively influenced my decision to join.

The business was working towards becoming a Certified B Corporation, which we have now achieved, and it was great to hear about the plans to deliver initiatives like the Bristol nappy recycling trial. These two examples clearly demonstrated to me the authenticity of the brand, by actually delivering initiatives above simply making eco-claims.?

There are other factors that come into play too when making the decision on which business to join, but this was one of my key criteria and I would find it difficult to join a business that didn’t care about sustainability or take active steps to improve its eco credentials.?

It’s also good for business too. Consumers are increasingly concerned about the impact products have across the lifecycle from raw materials sourcing, to manufacturing, use and end of life. Pura was created to make eco products accessible and affordable. I read this on the website before joining and that is definitely our mission.?

At Pura it’s about using our business as a force for good. We see our ongoing sustainability journey, including our many partnerships and initiatives as a key lever for business growth.”??

Rowan worked closely with the owner/founders to appoint Andy as a first-time CFO to Pura, where he continues to drive strategic growth.

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Another senior appointee whose decision to join was positively affected by sustainability is Duo’s Martin Henderson. Martin came from a traditional manufacturing background, and was excited by the prospect of joining a business that has sustainability in its DNA, and a fresh, forward-thinking approach to manufacturing:

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“Our customer base has a youthful feel and the stakeholders we interact with care about sustainability. Since joining Duo from the slow-moving, traditional worlds of lead and steel, I can’t see myself working for a business that doesn’t actively promote sustainable practices.?

As well as making the world a better place, Duo is in an industry that is relatively new, evolving, expanding and ultimately has a future for many years to come."

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Sustainability concerns will continue to affect the consumer sector, as consumers become ever more conscious about where products have come from and their impact on the environment. These concerns will also continue to affect hiring trends and practices, as more and more business leaders make sustainability efforts one of their key concerns when choosing to join an SME.

Key to keeping both consumers and business leaders onside is the authenticity of an SME's sustainability efforts, and the willingness to take concrete steps. We all want a more sustainable world for ourselves and future generations, but the businesses 'getting it right' are the ones that are wholeheartedly committing to making their manufacturing practices more sustainable, as demonstrated by the success of both Pura and Duo.

Contact us to discuss your SME's needs here: https://rowangroup.uk.com/contact-us/