Sustainability & Green Economy

Sustainability influences purchasing decisions

It’s not just younger generations who regard aspects such as sustainability, environmental protection, and social commitment as decisive factors in purchasing decisions. This is because the boom in eco and fairtrade products is motivated by far more than mere lifestyle choices: the goal is to secure a sustainable future for humanity. End consumers are therefore increasingly demanding sustainability, and that applies to the entire value chain. This also includes green marketing, which should be part of every marketing strategy.

Walking the tightrope between marketing and greenwashing

For green marketing strategies to be credible, a corporate sustainability communication strategy is extremely important – both externally and internally. Transparency is key here. Considering that the target group is an extremely critical one, companies trying to demonstrate their commitment to sustainability shouldn’t play their cards close to their chest. After all, a company that has nothing to hide has no reason to withhold information and insights. If your brand is open and doesn’t shy away from dialogue, it’s in the optimum position to present its own sustainability credentials in a trustworthy manner. However, if the entire company doesn’t stand behind its sustainability principles and contribute to a green economy, marketing quickly becomes greenwashing, i.e. faking sustainability.

Sustainability through innovation

Some industries face particular challenges in switching to sustainable processes. For example, with the much-maligned fast fashion business, the fashion industry is at a crossroads in terms of sustainability. New, innovative startups are inspiring the market with new technologies aimed at making the world more sustainable. The grocery delivery service market is also responding to public criticism with innovations. In Berlin, the delivery service Alpakas has made a commitment to sustainability and is focusing on unpackaged deliveries and a zero-waste strategy.

Sustainability beyond environmental protection

Sustainable business is not just limited to the environmental aspects. Creating a positive working atmosphere with purpose and flexibility is also gaining in importance. The big keyword here is new work.

The principles of new work are also reflected in the ESG criteria, which are used to assess the sustainability of specific business models and companies. These include the following aspects, which give the criteria their initialized name:

• Environment: respectful use of natural resources, a reduction in emissions, climate protection, and an increase in energy efficiency. Possible areas of implementation include logistics, packaging, and returns management.
• Social: respecting human rights, ensuring social standards, and being socially committed in the sense of corporate social responsibility (CSR).
• Governance: defining and following a code of conduct as part of compliance and transparent communication.

Companies can win over customers by wanting to be part of a green economy, i.e. by aligning their economic activities with sustainability goals.

In 2023 and beyond, CDR (corporate digital responsibility) will also be a top priority for many companies. CDR means being digitally responsible above and beyond the legal requirements and incorporating digital technologies in a way that positively contributes to society, education, health, and the environment. Especially in the AI era, a CDR strategy is essential for appropriately assessing the risks of AI tools. When implementing AI, companies need to develop a critical mindset and keep important criteria such as data protection, equality, and sustainability in mind at all times in order to meet their corporate digital responsibility.

Sustainability as an opportunity

For brands that want to remain viable in the future, there’s hardly any way around sustainability and the green economy. After all, sustainability is increasingly influencing people’s purchasing behavior. Companies can take advantage of this change in thinking: businesses that demonstrate the right attitude and operate sustainably are not only doing good for the environment, but are also strengthening their relationship with their customers. An appropriate marketing concept is crucial for sustainability to bring about this twofold success. Sustainable marketing can only succeed if brands present themselves authentically, transparently, and are credible in their commitment.