Green evolution

Going sustainable is becoming crucial for brands. Recently, Starbucks announced a £1 million fund for sustainability and recycling programmes in the UK. The coffee company has already committed $10 million towards recycling initiatives in the recent past. Likewise, alcohol brand Pernod Ricard last month shared its sustainability initiatives which include plans to prohibit plastic goods and work towards making its packaging recyclable and compostable in the next few years' time. Earlier this year, Nestle announced a pilot project with delivery service Loop to provide Haagen-Dazs icecreams in reusable, double-walled steel containers which keep the dessert at an optimum condition. 

These initiatives by global brands across segments point towards an increased focus on going green, which brands feel can enhance their appeal and equity in consumer minds. 

Says Nikita Ramchandani, senior Area director of operations – South Asia, Marriott International, “Sustainability is something we are taking seriously and several initiatives have been undertaken by us towards this. Last year, we eliminated the usage of plastic straws and stirrers from across all our 100+ hotels. Our food truck, Marriott on Wheels, has provided us with a great opportunity to go 'sustainable compliant'; as the truck is focused around using biodegradable packaging. Moreover, we work with micro-green farms, have started organic options in our hotels and promote cage-free eggs. We are conscious about the ecosystem and when it comes to seafood sourcing, we do not cater to endangered species in our hotels.”

Branding consultant Harish Bijoor says that earlier brands were perceived by consumers as being purely commercial entities that were profit-oriented and made obscene amounts of money. “Now that perception has changed.”

Says Sabiha Khan, assistant vice president – account planning and strategy, WATConsult, “Sustainability is the need of the hour. Thanks to indiscriminate consumerism, the pressure on resources is increasing. Hence, brands have to come up with sustainable solutions. Also, millennials are more socially and environmentally conscious and respect brands who practice eco-consciousness.”

A Nielsen estimate suggests that 81% consumers strongly feel that companies should help to improve the ecology, while 73% of millennials are willing to go the extra mile by paying a premium for sustainable products, including those that are organic and recycled. 

Experts say sustainability impacts brands positively, yet sublimely and in a covert manner. 

Bijoor says that brands who “give back to society and the environment are perceived as soft brands, and these soft brands gain an edge in the competitive market as consumers think of them from a holistic and inclusive perspective and love them more.” 

Experts say consumers of today seek out nuanced and unique experiences and sustainability is the core of such experiences, “since it allows consumers to be a part of something responsible and eco-conscious.”

Says Ramchandani, “We are aware that guests are discerning in their awareness and would make conscious and responsible choices.”

Going big on sustainability helps brands seem responsible, increases their acceptability and helps them to occupy the space of thought-leaders, says Khan. “As game-change agents, they can get more connected to consumers who are eco-conscious.”

But sustainable initiatives come with a high cost of conceptualisation, planning and execution. Global brands have invested millions of dollars in such initiatives. Would smaller brands be able to embrace this philosophy? Khan says that some sustainable practices are costlier in the start when it comes to setting up the infrastructure for their implementation. “However, these get cost-effective in the long run. But in the long run, when most brands would focus on sustainability, the key differentiator would be in terms of the level of effort and the depth of practices that are adopted. Brands who adopt sustainable production and encourage sustainable consumption will stand out from the ones doing mere lip-service.”

• 81% – Consumers strongly feel that companies should help to improve the ecology, as per a Nielsen study
   
• 73% – Of millennials are willing to go the extra mile by paying a premium for sustainable products, including those that are organic and recycled