Sustainability poses many challenges for businesses and their brands, but arguably the positive opportunities for brands outweigh the threats. Addressing issues related to sustainability offers brands the chance to drive deeper engagement with consumers, build trust, show leadership and drive through radical innovation.

Lots of noise, but what does it all mean?

We are all aware of the sudden surge in everything sustainable, from government initiatives to new brand launches and endless articles in the press. There is no escaping the importance of the sustainability agenda, but how well do we really understand what consumers think about these issues and what they expect from brands? Are they as concerned as the press would have us think; will their concerns actually translate into actions; who do they expect to show a lead?

Consumer perspective

At Dragon, our role is to help brands transform businesses in the face of many varying challenges and, of course sustainability offers one of the biggest ‘transformation’ challenges around.

We wanted to understand consumer attitudes, expectations and behaviours in relation to sustainability, to give us an up to date picture and a set of insights that could help inform brand strategies in key sectors – fmcg, household and travel.

Dragon carried out a series of eight focus groups in the UK in spring 2007, with consumers drawn from two key attitudinal groups, Conscious Concerned (description) and Waste Aware (description), representing different age groups. We were particularly interested to explore attitudes and behaviours of the 18- 25 group.

The results suggest that we are in the middle of a significant long term shift in consumer attitudes and expectations – something that no brands should ignore.

A new depth of feeling and personal responsibility

Overall, the most striking finding is not just that consumers’ attitudes have changed, but the degree to which they have changed and how this affects what they expect from brands.

All of the consumers we spoke to thought that their concerns about the environment had increased significantly over the last year or two. They believed that their own, and other people’s concerns would continue to grow, and that this would not be reversed. They also felt that they had a much better understanding of how their daily actions and decisions impacted on the environment and on other people, and this made them feel responsible and often guilty. Most were consciously trying to adopt certain behaviours, such as turning lights off, recycling or buying local products that they felt were ‘good’ behaviours. “We’re all in this together” characterised the attitude, rather than “there’s nothing we can do - leave it to the government.” The younger age group, not usually associated with exhibiting environmentally responsible behaviours, appeared to be very strong in their determination to change their own behaviours, and very demanding of both government and companies.

More change to come

Unlike our previous research in this area, which suggested that people felt that nothing would really change and eventually the fuss would die down a bit, the expectation was that life could be very different in the future. In many areas, major changes were felt to be necessary and desirable, and if necessary should be enforced by legislation. They absolutely expect companies to play a significant part in working with them to make it easier for them to ‘do the right thing’. Currently, there are still many barriers that stand in the way of concerns translating into actions, but there is great appreciation of brands that make things easier. An increasing number of people are deriving a real ‘feel good’ benefit from the belief that they are ‘doing their bit’ – even in the smallest way, and brands can help facilitate this. Although Ben & Jerry’s Ice Cream does taste fantastic, the brand gets its edge from their responsible approach to business and little extra warm this confers to consumers. It is against this need state that ideas like Fairtrade deliver. The concept of growers getting a fair price is simple compared to some other aspects of sustainability, and this makes it accessible and appealing, but it has set a precedent for other initiatives that promote sustainability.

Information or easier choices?

For some people, access to reliable and compelling information is the key to action. For many more, however, choice editing is a more attractive solution. No one wants their lives made more complicated, and too much information could paralyse decision making rather than encourage it. Brands that take it upon themselves to ‘sort out’ what the better options are, and make only these available, are doing a significant service. Part of the strong appeal of the M&S ‘Behind the Label’ and ‘Plan A’ approaches is that they are taking all the hard decisions, and not leaving them to the shopper. Because people instinctively trust M&S do to the right thing, they are happy with this solution and will go along with M&S decisions. People are crying out for similarly clear and helpful approaches in other sectors, such as travel.

An appetite for innovation

In the research, we explored whether people’s apparent concern and willingness to change would lead to openness about accepting significantly different products, services or behaviours. One area where there appeared to be considerable willingness to try new options was packaging. Minimal packaging, milk bags instead of tetrapaks, even refills were embraced enthusiastically. The Daylesford Organic milk pouch is a strong example of radically different packaging that is readily accepted by consumers because of its sustainable benefits. Energy efficient light bulbs were considered to be the way of the future, rather than a tiresome and expensive nuisance. However, one area of life was fiercely protected – the ‘right to cheap air travel for holidays.’ Holidays are seen as ‘deserved’ after a lot of hard work and are as much a form of self-actualisation as concern for the environment is. But initiatives to reduce the impact of such travel will of course be warmly welcomed – and as people become more uncomfortable with their continuing commitment to flying, they may well look to the travel companies to mitigate their guilt. Virgin Trains’ Go Greener campaign connects this insight and builds on their innovative technology, which scavenges electricity under braking. Indeed it even has a positive halo onto Virgin Atlantic. Consumers appear to be looking for leadership, innovation and inspiration from brands now, and they are finding this more from retailers than from producers. Brand leaders in all categories will be expected to lead on this agenda too, not wait for everyone else to do something first. Consumers believe the scale of problems is so great that there is no point in lots of tiny companies doing good things if the biggest brands don’t make a move.

What does this mean for brand strategy?

The most important thing is that this is not an optional, marginal agenda for brands to address or not as they like. Consumers see sustainability issues affecting almost all parts of their life, and they anticipate that the issues, and their own impacts, will become more and more important. Many brands have been addressing sustainability as if it were a product variant, offering an organic line here, a carbon-neutral option there or an ethical line there. This no longer makes sense, as consumers do not see things like this. Consideration of the environmental and ethical impacts of the brand need to be automatically considered as a basic part of brand management and development. This isn’t a fashion, a campaign or a bolt on initiative. The mindset has to be about shaping a more sustainable way of operating as businesses and consumers. Alara Organic Muesli strive to live and breathe their sustainable values at every level of their organisation. Appropriately transparent they detail their efforts on a blog, from reducing their packaging by 75% and using recycled paper to establishing a permaculture forest garden at the office and using renewable energy supplies. Displaying a commitment to being sustainable strengthens the quality organic and healthy positioning of the brand. The annual ‘brand health check’ needs to take into consideration the brand’s performance against its significant sustainability impacts, and recognise that there will be competitive pressures to raise the game.

A brand-driven approach?

The brand’s heritage, values and essence offer a good starting point for framing how to address the vast sustainability agenda, in parallel with a review of what the major impacts and issues are. A brand that has always stood for the highest quality will understand that the definition of quality nowadays is broadening to encompass a much wider range of criteria, in particular ethical and environmental criteria. A brand that is renowned for being innovative will have to demonstrate that it is ahead of the pack on this agenda, or risk losing its competitive edge. Innocent are building on their reputation as an inspirational brand by introducing one of the first 75% recycled plastic bottles. A brand that has a heritage of trust and ethical behaviour will need to demonstrate this by exhibiting the most responsible behaviour in today’s terms, or risk undermining its reputation. ‘Reframing’ the brand within the context of the sustainability agenda can provide a new edge and appeal to the brand, as well as reminding people of why they have always liked it. M&S appears to be very contemporary and innovative, as well as more committed than ever to the core strengths that have always driven its business success.

How should companies approach this?

1. Commit to the challenge

Sustainability has to be approached as a fundamental long term change to the whole business, not a short term initiative. The objective must be to make significant improvements to the company’s (and brand’s) sustainability performance, not to capitalise on ‘green marketing’ opportunities – although there will of course be marketing opportunities that will flow from genuinely better performance

2. Engage partners

Almost everything that needs to be done will involve partners – suppliers, consumers and employees most prominently - but also other businesses. A collaborative approach will be essential – and in many industry sectors now there is a desire to work together to make things easier for the consumer, for example through certification systems or common labelling approaches.

3. Devise a strategy that truly fits and supports the brand

Brands should be driving behaviours, and it will be important that sustainability-derived changes fit with the brand, and that the sustainability approaches adopted contribute to building the brand and supporting the business commercially. For some brands this will be a challenge, and may prompt a re-appraisal of the whole brand positioning, if this now appears inadequate to guide the brand through today’s challenges

4. Integrate within the business

Sustainability issues have to be considered as a responsibility of all key functions throughout the company, not the sole preserve of the CSR department. Those with responsibility for the brand, and for marketing, have a particularly key role to play and need to develop a sound understanding of the issues quickly

5. Communicate relevant messages

Communication about the company’s sustainability performance used to be confined to the annual report. Now it needs to be integrated into mainstream brand communication, using whatever media and messages are relevant and important. This might be advertising, but could also be packaging or online media. Positive messages about what has been or can be achieved help to encourage people - consumers or employees - in their own efforts.

6. Take advantage of your licence to innovate

Innovation that is clearly linked somewhere to sustainability benefits appears to be more meaningful to consumers that innovation prompted simply by the desire to differentiate. But consumers must see obvious benefits to themselves first and foremost – and few are willing to make compromises on what they see as the key performance and convenience benefits of the brand. But sustainability provides rich inspiration for innovation, introducing new parameters and new stimulus which may uncover completely new products and services

7. Don’t be afraid to lead

Brands have been very cautious about taking the lead in this area, expecting brickbats for any initiatives less than perfect. But consumer cynicism and scepticism appear to be making way for a real desire for positive action on a big scale – and brand leaders will disappoint if they keep their heads down and fail to act or communicate. Obviously it’s important to avoid overstatement, but silence or inaction is just as risky.

Far from being a threat, the challenges raised by sustainability could turn out to be a source of great opportunities for brands, given the right level of vision and commitment from the company.

Luke Vincent and Liana Dinghile, Consultants at Dragon Rouge in London

This article first appeared in Brand Strategy, Oct 07