Author: mxmadmin

By Pallavi Mathur Lal

Sustainability is a complex encompassing term that refers to the ability to maintain resources for use but also for future generations. While it is often associated with natural resources, it includes societal and economic resources. As Sustainability or ESG (Environmental, Societal, Governance) movement gathers steam all over the world, we see many ‘push’ factors for businesses and companies.

In India, we see many actions of global companies as they follow their global directives as part of the UN Global Compact (2000), to adopt sustainable and socially responsible policies and practices. We see many corporates and businesses, both in public and private sectors, refer to the SDGs (17 UN Sustainable Development Goals formed in 2015) as informing their wider sustainability strategies.

While Governments, NGOs, and businesses have sustainability mandates, the consumer sphere is still lacking this new infusion of sustainability as a critical focus.

Sustainability, however, is not easily sold to consumers: In a global survey conducted by Ipsos on consumer attitudes toward sustainability issues, it was found that consumers hold companies and governments responsible for sustainability. They are willing to act but feel that their impact as individuals is limited. This is true if you look at the stats – the responsibility for 71% of global emissions lies with the top 100 companies!

Brands and businesses, hence, have a crucial role to play in promoting sustainability, as they are major drivers of consumption and resource use. Brands have the window with consumers to communicate directly about their values and benefits. India, however, as a market is not as mature as the Western, more developed markets and so the questions for us are: Are consumers ready for this? Will it help brands to strengthen their relationship with consumers, ultimately moving towards consumers considering, buying, and advocating their brands?

As per the Ipsos Global Trends survey 2023, in India, 60% of consumers strongly agree that we are headed for environmental disaster unless we change our habits quickly. Even with this realization, we know that sustainability is not an easy sell to consumers – the say-do gap is real. From another BCG Global study we know that while 80% consumers in 8 countries (including India) were concerned about the environment, only 1-7% have paid a premium for sustainable purchases.

Seeing this hesitation in consumers, brands are also holding back talking about the sustainability benefits for the fear of being perceived as being more expensive and losing consumer approval (and demand). However, in this circle of communication and action, brands need to bring more progressive messaging toward the environment and even the societal action that they take. In this way, they build more value around sustainability.

What brands can do to establish the right connection?: This is like the chicken and egg situation: Should the brands start talking sustainability first (even when the consumers seem unwilling) or should the consumers start demanding it first and then the brands get into action. Sustainability will come into the conversation sooner than later. There will be some brands which would have started building the connect early and benefiting from it, while other brands will be slower and more reactive.

In addition, for brands to talk about sustainability and use the right messaging is tricky. Unless brands have sustainability built into their core, into their strategic priority, the messaging can backfire. Consumers are wary of, and call out greenwashing, which can end up harming the reputation of the brand, and examples of Volkswagen in 2015, and of H&M more recently in 2022 are before us.

So, what can a brand do to establish this right connection with their consumers? Here are some research-backed pointers:

1. Communicate the Co-Benefit: Sustainability as the key benefit, with a higher price is not going to go down well with the majority. All said and done, we have seen that the mass consumer is not going to pay extra for just a sustainable claim or benefit. Consumers still need to see any product performing well on its functional aspects or cater to them emotionally, with sustainability at best being a co-benefit.

2. The ‘Push’ doesn’t work: Any ask/ call-to-action that requires a change in set behaviour patterns or a habit is going to be difficult for consumers to adopt. Hence, marketers are looking for ways to make changes in their products and packaging which do not alter or modify the performance of the product, nor does it expect consumers to make substantial changes.

3. Create the ‘Pull’: An Ipsos meta-analysishas shown that it is important to focus on people, and their problems, rather than just the brand which is providing the sustainability message. No surprises here – consumer-centricity is already a mantra we follow, but this means that we need to dig even deeper into concerns, behaviours, and problems to see how we first highlight the key problem that the consumers are facing. After establishing this, and showing the current non-sustainable practices, a more sustainable solution can be offered by the product or brand.

Use authentic cues and messaging – Dipping into our cultural heritage, and sustainable practices: The way awareness about the climate crisis is increasing and sustainability conversations are making their way into many aspects of our lives, brands will have no choice but to directly or indirectly cue that they support sustainability, promote some cause, or propagate good practices to stay connected to consumers. Fortunately, we have some particularly good practices in India, from our heritage and cultural roots, that brands can leverage to cue their sustainability leanings.

:: Living in harmony with nature: Our traditional ways are nature and animal friendly and about peaceful coexistence with them. Some of our religions have us worshipping plants like tulsiand using plants for medicinal purposes and for cooking and flavoring. We also have in our mythology, animals as avatars of gods and goddesses or as mounts, making us sensitive and protective about animals.

:: Frugal, low wastage, savings ethos: In India, we have an ethos of wasting very little material or food and conserving our resources. Traditionally, we have always saved money for the future. Food wastage is also not in our nature. Worshipping Annapoorna Devi, the goddess of food and nourishment, ensures that we have a respectful relationship with food and food sources.

Frugality, to some extent, is getting replaced by ‘living life to the fullest’, ‘living for the moment’, YOLO and what have you. However, the frugal mindset does exist in our collective recent memories and can be rekindled by showing the positives associated with the larger good.

:: Sustainable materials: Our everyday utensils are made of stainless steel and traditionally of brass or copper – unbreakable and non-disposable. This ensures long-lastingness and a one-time investment that pays off for years. Traditionally we have also used banana leaves which can be discarded, are biodegradable, and avoid the use of any cleaning materials. Till even three decades ago, plastic had not made such inroads into our daily lives. We used sustainable materials like paper to wrap things and carry bags. Cloth bags were carried when we left home for shopping and used for bringing back groceries and vegetables. Using earthenware to keep our water cool, was another sustainable way – with refrigerators and ACs being a relatively recent phenomenon.

:: Sustainable practices: Till some years ago, new clotheswere bought only on birthdays or festivals. Maintaining one’s clothes or other objects around the house (like furniture or upholstery) was a matter of pride and care was taken to preserve them for years. We wore hand-me-downs not only from our own siblings but also cousins and neighbours’ older children. We also had their toys and books. In fact, the ‘pre-loved’ clothing trend is a hark back to the same philosophy. Bathing was from a bucket and not from water-wasting showers.

With all this context, it seems that brands need to start the conversation on sustainability with consumers already. Consumers understand and are concerned about the Climate, about the environment. The increased conversation – cued directly or indirectly – will help highlight the criticality and will increase the value of a sustainability benefit to the consumers. There are consumers who will appreciate a brand for its progressive portrayals and messaging regarding sustainability, consumers who will bond with brands who start these conversations with honesty and transparency, and consumers who are looking for brands that fit with their own values and ethics.

Brands also need to look at ways in which their sustainability claims and benefits make the most sense to consumers, by viewing them from a consumer problem-solving perspective. Our recent foray into globalisation and our memories of sustainable practices that we followed not too long ago can become part of these brand-consumer conversations – making them more realistic and relevant to the consumers.

Pallavi Mathur Lal is Senior Director and Head of the Knowledge Initiative at Ipsos India