This, Not That: More Consumers Are Switching Brands Based on Sustainability

18 03 2023

Image credit: Gustavo Fring/Pexels

By MARY RIDDLE FROM TRIPLEPUNDIT.COM • Reposted: March 18, 2023

We know shoppers are increasingly interested in more sustainable products, and new research indicates many are ready to leave their standby brands behind. Half of all U.S. consumers, including 70 percent of millennials, have changed food and grocery brands based on environmental, social and governance (ESG) considerations, according to new polling. 

For its latest sustainability benchmark report, the research technology company Glow surveyed 33,000 U.S. adults to get their take on the ESG performance of more than 150 food and grocery brands. Across the board, consumers report changing their spending habits to better align with their personal values — and forward-looking brands are reaping the benefits. Almost 90 percent of respondents believe it’s important for businesses to be environmentally and socially responsible, and two-thirds said they’re willing to pay more for products that support vulnerable groups and communities.

“It is vitally important for companies to contribute to supporting society and the planet. And there is a growing body of evidence that doing so is more than the right thing to do, it is good for business,” said Julia Collins, CEO of Planet FWD, a carbon management platform for consumer brands, in a statement. “This report provides further evidence … that those who are leading in consumers’ minds are already reaping the commercial benefits and are best placed for future success.” Indeed, 8 in 10 respondents said they feel more loyalty to purpose-driven brands.

ESG performance is correlated with revenue growth

Glow also found a positive correlation between ESG performance and revenue growth. Even in a troubled economy with a cost-of-living crisis, environmentally- and socially-responsible companies are seeing the economic benefits of standing for their values: 20 percent of consumers rank sustainability in their top three considerations when shopping at the grocery store, and 10 percent of millennials said sustainability is the single most important factor when making a purchase.

Additionally, while 70 percent of consumers are actively switching food and grocery brands to save money, many consider sustainability a key reason not to do so, particularly among younger shoppers. 

“Now more than ever, if brands want to retain and win consumers, they must stand for something,” Mike Johnston, managing director of data products at Glow, said in a statement. “All consumers are looking for ways to save money. They will need a compelling reason why they shouldn’t walk away from your brand for a cheaper alternative. Along with quality, sustainability is a key barrier to change, especially for millennials.” 

It’s worth noting that what consumers view as “sustainable” will vary based on the product. Consumers report that plastic and waste issues are of greater importance in the household goods department, for example, while health and wellbeing is a top concern for consumers when choosing beverages and beauty products. 

Still, across all categories, products with ESG-related claims on their packaging grew an average 1.7 percent faster than those without. Labels and messaging associated with regenerative agriculture, plastic-free products, cruelty-free operations, water footprint, and renewable energy caught consumers’ attention the most.

Consumer expectations are high

U.S. consumers widely perceived the food and grocery industry as a leader in corporate sustainability, Glow’s data revealed, but the industry still faces significant barriers to meeting consumer expectations in a few key areas. For example, almost a third of responding consumers are dissatisfied with the industry’s efforts to reduce emissions, mitigate climate change, protect wildlife and ensure the welfare of suppliers.

While being misaligned with consumer expectations is never ideal for a company or sector, this gap presents an opportunity for brands to re-engage with this growing segment of consumers and stakeholders. By aligning ESG priorities with consumer expectations, companies can take advantage of a growth opportunity, while reducing risk and improving impacts on the environment.

“There’s a role of education here that’s critical for businesses,” Tim Clover, founder and CEO of Glow, told TriplePundit. “Consumers really want to understand the issues in more detail, to understand some of the science and the lengths to which companies are going to solve these problems. Companies that are brave enough to go and take the time to explain the depth of these issues and educate the market, they’re leading. They’re winning.”

To see the original post, follow this link: https://www.triplepundit.com/story/2023/consumers-switching-brands-esg/768956

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Brands, Don’t Make These Mistakes During Black History Month (and What To Do Instead)

3 02 2023

A colorized image of the 1963 civil rights March on Washington, where an estimated 250,000 people gathered to demand equal access to jobs, housing and education — and hear Martin Luther King Jr.’s now famous “I Have a Dream” speech. 

By Mary Mazzoni from triple pundit.com • Reposted: February 3, 2023

Corporate efforts to observe Black History Month are often cringe-worthy at best and offensive at worst. If you’re planning to add a kente avatar on social media or pen a generic letter to employees, please do us all a favor and stop now. Business leaders can — and should — do better. Here’s some advice to get you started, from the Black thought leaders who have been telling us for years. 

Don’t: Pander to your employees and customers this Black History Month

In the Year of Our Lord 2023, we should really all be past the platitudinous “Happy Black History Month” email to employees — or worse, the dreaded product drop. Think back to when TriplePundit asked workplace inclusion expert Kim Crowder about corporate cash-grabs around Juneteenth: “This is a repeat of why Juneteenth was needed,” she reminded business leaders. “It is basically commodifying the Black American experience by those who do not share those experiences and who have benefitted from the enslavement of people.”

The same holds true for brands that seek to capitalize on Black History Month while doing little to honor Black history or benefit Black communities. Just ask Ernest Owens, editor at large for Philadelphia magazine, who has never been shy with his opinions about how brands observe the holiday. 

“Just like Pride Month, Black History Month has become a routine time of year when corporations say the absolute most while doing the least for marginalized communities,” he wrote in a 2021 op/ed for the Washington Post. 

Do: Look inwardly — and act accordingly 

Rather than looking to commodify the holiday or pat your company on the back for its great work on racial equity, turn your mind to the work ahead of you — and communicate frankly and thoughtfully with your employees and stakeholders about what comes up.

“Organizations should be looking beyond one day and focusing on areas such as pay equity, promotion rates, the ability for Black team members’ work to be seen and acknowledged, and partnering with Black businesses regularly — including paying them well for their work,” Crowder told us. “The goal is to work toward Black liberation every day.”  

Don’t: Expect praise for pennies 

In December polling commissioned by TriplePundit, less than 20 percent of over 3,000 U.S. consumers said they’d be impressed by a billion-dollar company donating $5 million to a social cause like racial equity, with the majority agreeing that “business should do more.” 

Findings like these indicate that people are growing more wary of brands appearing to “check the box” by donating to a nonprofit. They want to see what changes you’re making, and they want to hear about the outcomes of that change. 

“The key here is authentic leadership —  in other words, walking the walk, not just talking the talk,” Gary Cunningham, president and CEO of Prosperity Now, told TriplePundit back in 2021. “It’s easy to say that you’re anti-racist without changing anything about how your organization operates.” 

Do: Champion your partners

Of course, there’s absolutely nothing wrong with donating to nonprofits or establishing new programs that look to address racial equity, nor is it intrinsically wrong to communicate these programs during Black History Month. But if you do, do so thoughtfully.

Find clear alignment between your company, your teams and the nonprofits you support. Communicate with your stakeholders about the great work your partners do and why you trust them. For example, did someone from your team recommend this organization? Does it work in your community? Is it particularly positioned to address the issues your teams and stakeholders care about most? Remember, this is an opportunity to educate your stakeholders about the issues — and highlight the perspective of your community partners that know these issues best. 

“So often I’ve witnessed corporations and business leaders act as if because they are very smart and can solve problems that they can understand and know how to solve the complex problems of racial and ethnic inequality,” Cunningham told us. “Trust the guidance of people who can help you learn, help you bring your work into the community, and help you understand the depth of the issues that you’re trying to contain.” 

Don’t: Task your Black employees with more unpaid work

As companies pushed to demonstrate their commitment to racial equity in 2020, it wasn’t long before they looked toward their Black employees to do the hard work for them.

Asking Black employees to speak on panels, lead new employee resource groups, or consult on strategies for diversity, equity and inclusion (DEI) — all for no added compensation — is not only unfair, but it also plainly illustrates the very inequities these companies claim to oppose. Over half of Black women in particular told the consultancy Every Level Leadership they feel singled out as the sole resource to educate their colleagues about DEI. 

Think of your team’s well-being, and don’t repeat the ugly cycle this Black History Month. As Najoh Tita-Reid, chief marketing officer for Logitech, observed in Fortune back in June 2020: “Black people did not create these problems, so please do not expect us to resolve them alone.”

Do: Take responsibility for educating yourself

It’s past time for non-Black people to take personal responsibility for educating themselves about racial justice issues, rather than leaning on their friends and colleagues. If you’re an executive, read more, watch more and generally consume more media about the topic. Encourage everyone in your organization to do the same, and give them opportunities to discuss it, if and when they choose.  

“Take responsibility for your own education on racial issues,” Tita-Reid suggested in Fortune. “Create companywide forums and Q&A sessions to educate large groups. Bring in experts, if needed, to provide actionable plans that systematically implement racial equity. Identify those of us who are open to speak, and respect those of us who do not want to talk about the situation.” 

When it comes to your formal DEI strategy work: Resource it, and pay your teams accordingly. “Do not shortchange race equity work,” Andrea J. Rogers and Tiloma Jayasinghe of Community Resource Exchange recommend in Nonprofit Quarterly. “And if you feel like doing that, ask yourself why, and take this opportunity to unpack biases around what is valued, who is valued, and what impact means for your organization.”

To see the original post, follow this link: https://www.triplepundit.com/story/2023/brand-mistakes-black-history-month/765126


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Categories : sustainable brands