The Pressures of Sustainability on Companies

Who Cares About Sustainability?:

Sustainability is becoming a huge part of the buying process for consumers. A poll in 2020 by Pew Research center states that 64% of US adults believe sustainability should be the top priority in governmental policy. Ton To Ton conducted research stating that 3/4's of consumers want companies to create more anti-climate change business models. Whether it is common house goods or big purchases consumers are more conscientious about sustainability with the desire to be a part of the solution. In the article by Deloitte, sustainability is explained as a new business strategy that assists companies in gaining the hearts and minds of their consumers. Consumers are willing to pay more for products made by sustainable companies. This can lead to more profits while creating less environmentally harmful products.?

Sustainability in Companies:

While transitioning to a sustainable business model comes at a cost, the result can lead to higher profits and consumer praise. Sustainable companies show their responsibility to care for the world we live in by creating better products. These products can have huge effects on the world in terms of resource gathering, production, and disposal of items after use. Companies like Coca-Cola, Nespresso, and Patagonia are creating sustainable products to prevent further environmental destruction.

Some companies implement sustainable programs requesting the assistance of their consumers in making better choices. A great example of this is Nespresso with its recycling program. When the coffee company produces capsules for its machines, they use aluminum to protect the flavor and aromas of the coffee. While it's good for the coffee another great benefit is the aluminum’s infinite recyclability. While it is extremely wasteful for people to throw these capsules away, partaking in the recycling initiative gives the capsules a second chance at life. the aluminum can become parts for cars and planes, used to make bikes and even household items such as utensils or cups. The recycling program is Nespresso's response to the disposal of high-quality metals, but what about Patagonia?

Patagonia has a recycling program to give its products a second life. furthermore, the company creates sustainable clothing by creating clothes from durable recycled materials. When consumers are ready to throw away their clothing, the company will take the clothing in and recycle the material for reuse. This resulted in a reduction of 13,000 tons of CO2e with their goal to use only renewable materials by 2025.?When companies add actionable activities for consumers to partake in, it can lead to better outcomes in sustainable practices. This in turn leads to more praise for the company, and more action to be taken to combat climate change.

Sustainable Innovation at The Top:

Companies are getting pressure from their consumers to create sustainable business models. However, it’s not only the consumers that are requesting more environmentally friendly products. Deloitte explains how shareholders, board members, and C-suite executives are increasing pressure for sustainable business models. In the pie chart in their article, they state that 18% of the pressure on environmental sustainability is coming from the board of directors and C-suite leaders. The biggest group in the chart is the 35% which consists of consumers.?With employees and consumers pushing for better sustainable practices, companies need to research, production, and marketing of these new products and initiatives.

It is predicted that the cost of research in ESG and Sustainability will grow greatly within the next five years. In an article by Elisa Molero, she states Verdantix predicts a growth rate of 17% in ESG and sustainability research between 2022-2027. From their research, this equivalates to over $16 billion dollars in research by 2027. While a company can produce better products and change its practices it can be challenging and costly to market these changes effectively.

The DIY Research Solution:

While creating sustainable products and initiatives is the first step, the advertisement of the products is another major step. Companies need to understand the needs of consumers and how to efficiently market their new products to them. This can be a complicated task, but with Emozo marketing research departments can gain more accurate insights into its consumers. The company's SaaS platform helps marketers understand the emotional result of photos and videos as well as eye gaze.

The DIY system helps market researchers hand tailor their surveys and tests to understand the specific needs of consumers. With information, companies can understand what consumers find appealing in their marketing materials to produce the best possible results. The company can further improve its brand, and messaging, and experience challenges that come with many forms of advertisement. The result is digital content with purpose and eye-catching ability. Without the proper research and lack of attractive branding companies will fall short of reaching their desired consumers.

It is a Win-Win:

With environmental sustainability becoming ever more attractive to everyone. Companies need to evolve in all areas of their business to produce a more sustainable business model. This will be rewarded by consumers willing to pay the increased prices for environmentally friendly products. Ton To Ton pushes further on this by stating 88% of consumers would stop buying a product if they learned of irresponsible business actions and nearly 2/3 of the surveyed would pay more for sustainable products. should companies feel the pressure to become more sustainable? YES, it can put more profits into companies while promoting care for the world we live in.

What are Your Thoughts?:

1.????Do you think platforms like Emozo can help companies help improve their environmental messages to consumers?

2.?????How important do you believe the marketing aspect is for companies who create an environmentally sustainable product/ business model?

3. Do you think companies should request the assistance of their consumers to return used items to be recycled?

Main?Article:?

Other sources:

1. https://www.patagonia.com/stories/what-were-doing-about-our-plastic-problem/story-72799.html

2. https://www.emozo.ai

3. https://www.pewresearch.org/politics/2020/02/13/as-economic-concerns-recede-environmental-protection-rises-on-the-publics-policy-agenda/

4. https://tontoton.com/consumers-are-willing-to-pay-more-for-sustainable-products-heres-why/

5. https://www.verdantix.com/insights/blogs/verdantix-forecasts-17-annual-growth-rate-in-esg-and-sustainability-consulting-spend-between-2022-and-2027