The challenges of selling sustainability - and how transparency can address them

Sustainability has become quite the buzzword. But what do consumers actually define as “sustainable” and how can brands better address these growing needs?

July 8th, 2021

Written by Alison Butler for FibreTrace®

Sustainability has become quite the buzzword in recent years. As environmental concerns come to the forefront of the consumer mindset, businesses have likewise begun to advertise sustainability in their operations and products. Dr. Matt Johnson of Pop Neuro explains that there is accumulating evidence to suggest that sustainability does impact a consumers’ decision to engage with a brand, and that “consumers are willing to pay a premium for products from a sustainable brand over a non-sustainable competitor brand.”

But what do consumers actually define as “sustainable,” and how can brands better address these growing needs?

What is “sustainable”?

Sustainability is an all encompassing movement and ideology, not just a tokenistic phrase to quantify small gestures of green awareness  Actions such as waste reduction and the purposeful selection of sustainable materials may play a part in being considered a sustainable brand, but they are not enough to cause global change. 

Karen Housel of Sustainable Daisy explains that there are three core values that consumers look for when trying to determine whether a brand is sustainable or not:

1. All-natural ingredients and textiles
   
   Often, the first thing that consumers do is look at the ingredients list of a product they’re about to buy. Consumers will generally avoid products with harsh, synthetic chemicals, or products that are known to be bad – either for the environment, consumer health, or both
   

2. Fair trade and fairly paid
   
   Another important factor to sustainability is whether the company pays its workers a living wage. Consumers have grown weary of brands that offer “quality” products at extremely low prices as these suggest that the profits are being made somewhere else along the production line, typically at the expense of the garment worker.
   

3. Philanthropy
   
   Lastly, whether the company engages in sincere, meaningful philanthropic behaviour. This doesn’t necessarily mean the establishment of foundations or charities, but consumers often look to see whether a brand donates part of its profits to existing charities or causes.
   

Does “sustainability” sell?

The obvious question brands ask: What is the cost of sustainability and is switching to these practices worth it in the long run? Research done by NYU Stern’s Center for Sustainable Business shows that consumers have actually begun voting with their dollars, veering away from unsustainable brands and opting for products that are marked as sustainable in over 36 categories with more than 71,000 SKUs. Whilst this sounds like good news, there are still several factors that impede a consumer’s decision when purchasing sustainable goods, such as:

Greenwashing

Sustainability plays such a huge role in the decision-making process for buyers that many brands have become eager to jump on the sustainability train and in turn, have intentionally or unintentionally engaged in some type of greenwashing. With some companies spending more money on marketing themselves to be more sustainable than actually implementing real change, many consumers have grown disillusioned and less trusting of sustainable branding.

Lack of reliable data

Brands that do practice sustainability can often be at a disadvantage if they fail to substantiate their sustainability claims with trusted and reliable data, rendering it even harder for their consumers to make informed choices. Greenwashing has meant that consumers can no longer rely on a brand’s word that they are acting sustainably, but must instead perform their own research to get the answers they want. If they fail to find any reliable information on a company’s efforts they will tend to veer away from its products as well, regardless of whether they are more sustainable than a competitor or not.

Affordability and accessibility

A survey published by McKinsey in April revealed that 67 percent of consumers consider sustainability to be an important factor when buying clothes, highlighting the importance of transparency in labelling. Unfortunately, research by Nosto showed that only a third of consumers are willing to pay more for eco-friendly products.

Organic and sustainable products are often labelled as more expensive than their traditional counterparts as practicing sustainability has an impact on production costs which are then passed onto the consumer. When you shop sustainably, you not only pay for the quality of your clothing, but for the farms and growers to invest in premium fibres and the best technology, for workers to be paid above the minimum wage, and to be treated fairly by their employers. Purchasing sustainable products allows brands that value sustainability to continue their ethical operations across their entire supply chain. What is more, there are always options for consumers to be shopping more sustainably, even when buying new is not always economically viable.

Thankfully, as the world continues to shift to a more sustainable mindset, sustainability is becoming more economically viable for both brands and consumers to invest their dollars in.

Investing in sustainability 

The choice for brands is clear: shifting to sustainability is the right move, no matter what industry you’re in. But how can this be done whilst ensuring you don’t fall into the same traps that so many other brands have in the past?

Forward-thinking

Whether you’ve just found your niche or have already optimised your business for sustainability, complacency is one thing that you should avoid. Taylor Fasulas of Verizon Connect emphasises the importance of continuing to learn – from your consumers and your competitors. Never stop learning and keep your eyes to the future to ensure that you don’t fall behind. Sustainability is an evolving concept, and your business needs to continue to evolve with it.

Company-wide changes

An important aspect of the drive for sustainability is that businesses can’t simply change one part of their operations to be more sustainable and call it a day. Instead, they need to make meaningful changes across the organisation to reflect their commitment to the cause. From a complete supply chain overhaul down to even the smallest of workplaces habits - everything should be reviewed and altered to support a sustainable company ethos. 

Brands also need to recognise that no act is too small when it comes to making sustainable changes. Recycling electronics, encouraging working from home to reduce your business’ energy footprint, and switching to cloud computing are tangible and immediate steps to take to ensure complete support for our earth’s survival. Sustainability is a step-by-step process that cannot be achieved overnight – find small ways to make your operations more sustainable and start from there.

Transparency

As previously noted, the lack of reliable data can impact a consumer’s decision to purchase a product when labelled as “sustainable”. Even if your brand has done all it can to practice sustainability throughout its entire organisation, it pays to inform your consumers of the facts. FibreTrace® allows consumers to track the end-to-end lifecycle of products with access to information that allows them to see the positive impacts of their spending echoed in their personal values. This practice not only helps eliminate greenwashing —but builds trust between you and your consumers.