Australian consumers are increasingly concerned about sustainability and believe companies and brands are responsible for making a difference. But with just 60 per cent of companies having a sustainability strategy in place, how can companies and brands up their game?
We are an industry that loves to understand people, and frankly, it’s what we do best.
However, with ad spending being cut and the very real threat of recession looming, brands are in danger of neglecting or deprioritising critical emerging agendas such as sustainability.
With growing awareness around the impact of our choices on both the planet and ourselves, saving the earth and making smart brand decisions are increasingly becoming one.
Research by human-centered consultancy Human8 found that 76 per cent of people think that brands and companies have a responsibility to take care of the planet.
The vast majority, at 70 per cent, also believe that climate change is an important issue that needs to be dealt with.
Instead of being shelved in favour of more traditionally commercial interests, focusing on sustainability may actually be the very thing that ensures a brand’s survival during hard times.
Consumers Still Care About Sustainability In Times Of Strife
In previous economic downturns, consumers prioritised day-to-day survival and paid less attention to climate change, however, Erica van Lieven, managing partner at Human8, says this is no longer the case.
During the pandemic, Human8 ran several studies (with 1000 Australians at a time) to see whether Covid was impacting their view of climate change.
“What we actually found was that, yes, they were worried about jobs and health and well-being, but they were also extremely concerned about sustainability and the future of the planet”.
“In previous recessions, sustainability had gone off the agenda. In this time of challenge and hardship – it had gone up. People started to put two and two together in that time when they were largely locked up in their homes. They found that their well-being was in many ways also linked to the well-being of the planet.”
This sentiment has been furthered by a number of high-profile natural disasters such as the 2019-2020 Australian bushfire season, she says.
This means that times of difficulty are now an opportunity for marketers to up their sustainability game.
But What Does This Mean For Cost?
Whilst most customers agree with the importance of sustainability, they also agree that they don’t want to pay more for it.
The same survey conducted by Human8 found that 63 per cent of people agree with the statement “consumers should not have to pay more for sustainable products”.
This obviously puts brands in a hard place, but as van Lieven says, many are committed to the journey of becoming more sustainable.
“Brands tell us they are committed to the journey. They recognise that sometimes following this journey means we make a cost saving but it can also require more investment.
“And often the true cost comes from places that surprise you. Because they’re all really complex decisions, where something’s grown and how it gets to the country, how it’s growing, what energy is used to grow or transport those products. It’s not always apparent”.
The Key To Messaging Is Authenticity
With so much up in the air regarding how to be sustainable, how are brands meant to communicate this clearly to their customers? After all, so much brand marketing is about consistent and clear communication. What if brands are still figuring out their sustainability path?
For, van Lieven, the answer lies in authenticity.
“I would say that 360-degree transparency also should allow companies to authentically say ‘okay, we weren’t perfect five years ago, but we’re on the journey. Companies have to be allowed to move and change as people do. So we have to let them move on”.
Whilst large multinationals may naturally come under more scrutiny when it comes to sustainability, van Lieven says businesses of all sizes are impacted.
“I would say that most of them [multinationals] are honestly trying to get on this bandwagon; they know they absolutely have to. But where it’s really difficult is where you have small, digital-only companies who do sometimes present as very clean but may not necessarily be so clean”.
Don’t Get Left Behind
Whatever you choose to do, the biggest risk may be short-term thinking or doing nothing. Sometimes, long-term or broader sustainability goals can also serve short-term business woes.
Van Lieven says “[a dairy brand] was doing a piece of work with us around the future of the brand. I don’t think they expected rejuvenation to be on the table. And, in fact, they weren’t really embracing it when we brought it to the table. But the more they listened, the more they realised they needed to be thinking in that direction, or else they would be left behind.”
“So, you need to start thinking about how you’re going to future-proof your brand in this respect”.
As Dutch designer Bob Hendrikx has shown, there’s plenty of innovative ways we can become more sustainable.
Featured in Human8’s ‘What Matters 2023’ report, the Living Cocoon (designed by Hendrikx) is a coffin made from mushroom fibre that helps bodies decompose faster while improving the surrounding soil.
Grown in just one week, the Living Cocoon takes on average two to three years to decompose, making it much better for the environment than traditional coffins which take 10 years to decompose.
To find out more about how Human 8 can help your brand improve its short and long-term sustainability go here: https://www.wearehuman8.com/contact/
You can also attend a special event they are hosting which looks at how sustainability goals can be balanced with the cost of living crisis. Information below:
The Cost of Living vs The Price of Sustainability
The current cost-of-living crisis has put pressure on many Australian households. Stagnant wages, rising housing and rental costs, and increasing energy and grocery prices are all contributing to the problem, putting a strain on households across the country.
At the same time, society is investing in the future of the planet through new sustainability initiatives. Businesses and brands have a critical role to play in addressing the cost-of-living crisis while balancing investment in a sustainable future. But navigating both is proving challenging. So, it has never been more important for brands to understand shifting consumer priorities in order to effectively balance every day human needs, while still prioritizing the wellbeing of the planet.
We believe the collaboration between brands and people is key to identifying issues, driving innovation, and co-creating sustainable solutions that benefit people, businesses and the planet. Don’t miss out on this opportunity to make a difference!
Join us on 27 June from 12 noon – 1:30pm.
We will be sharing exclusive June 2023 Human8 Australia research on this challenging topic.
Dexus Auditorium
Level 5, 1 Margaret St (The BDO Building)
Sydney NSW 2000
Lunch provided.
