By Sally Uren at Forum for the Future
Seventy five per cent of an audience of sustainability professionals at a Forum for the Future/Guardian Sustainable Business event thought yes. Well, the question was a little more nuanced: “Do you think it’s realistic for big brands to pioneer sustainable ways of consuming?” But still, 75% is quite a large proportion, and we got the same response when we asked that question to a similar audience in London earlier on the same day (at the launch of our new report, Consumer Futures).
So, in both the UK and the US, the majority of a combined audience of over 200 sustainability, marketing and media professionals were quite clear that brands have an important role to play in shaping a sustainable future and delivering sustainable consumption.
But how? That’s the question we kicked about with our panel in New York. Ably chaired by Jo Confino, Executive Editor, The Guardian and chair of Guardian Sustainable Business, with yours truly, and our guest speakers Jeffrey Hollender, Co-Founder Seventh Generation, Ian Yolles, Chief sustainability officer, Recyclebank, and Freya Williams, Senior partner, Director of strategy, Ogilvy Earth.
First though – a quick reminder of what I mean when I mention that clunky phrase, sustainable consumption. I’m talking about four things: smart growth – commercial success decoupled from environmental impact, in other words delivery of more economic value per unit of resource used; smart use – a product or service with minimal or no impact in both consumer use and disposal, in other words closed loops, or even better, open loops, where someone’s waste is another’s raw material; a better choice of choice – where the unsustainable choice is no longer available (the notion of consumer choice is a nonsense as we know – every day brands and retailers make choices on our behalf); and social value – goods and services that improve individual and community well-being.
If that’s the destination, what do we need to make the journey? First up as a possible vehicle – marketing. But as Jo Confino remarked, “Isn’t this a bit like putting lipstick on a pig?” Freya Williams didn’t think so, but understanding “what motivates the mainstream consumer” is key to unlocking the role of marketing. She went on, “the mainstream consumer is a wily and tenacious beast”: they are not motivated by a green glow, or ethical credentials, they are instead motivated by peer comparisons and feeling sexy and desirable. Freya wondered what most males would say yes to: a small car called the Leaf, or a big powerful Tesla? I think we know the answer to that one. And, for marketing to work, “behaviour change needs to be a key metric”.
A possible way forward then? Not quite, according to Jeffrey Hollender. Because changing marketing in the current system won’t be enough, as “we have a system that rewards business for bad behaviour”. Jeffrey was clear: “Brands have to do what companies such as Unilever are doing, and get tough with the investment community, saying ‘I’m not playing this game.’”
So, marketing might help, but only in a changed context. And to create a shift in that external context, Ian Yolles suggested that the business community needed to be more aware that “the stakes are exceedingly high”, and that we are currently on a journey “towards collective suicide”. However, despite that depressing reality, Ian felt that another path was clearing, one that involves radical innovation, and new business models, such as the Recyclebank model www.recyclebank.com where people are rewarded for shifts towards sustainable lifestyles. For Ian, the Recyclebank model is an important step for citizens (not consumers) to start thinking less in terms of economic currency, and more in terms of social currency – what is the contribution of my actions to my local community – not just my bottom line?
Glimmers of an alternative to business as usual then? Maybe, if only business stopped waiting for consumers to demand sustainability. This is one of my big bugbears: waiting for massive and mainstream consumer demand for sustainability is a fool’s game. But it’s so, so often one of the biggest barriers to progress – many brands and businesses are slowed down as they worry about going too far ahead of their consumers.
And it’s not just me that thinks it will be a long wait before mainstream consumers get pro-active on sustainability. We turned again to our audiences in New York and London and asked: “Do you think most consumers want to be pro-active in creating a sustainable future, rather than have brands do it for them?” In New York, only 6% of the audience replied yes. The audience in London had slightly more faith in consumers’ willingness to be pro-active – 30% said yes. But, still, that’s not a lot. And Ian Yolles was equally clear: “If we wait for consumers, we will never deliver the innovation required”.
So, we then go full circle back to marketing, as this is the connection between consumer ambivalence/unwillingness and the sunny uplands of sustainable consumption. How to change marketing? Again, the panel felt that systemic change is needed in the marketing industry – with top-down pressure needed to change agency behaviours – as well as clients asking for sustainability. There is still a disconnect between the grand corporate sustainability strategy statements and the reality of brand marketeers’ world, who for the most part, are still rewarded on selling more and more stuff.
For me, the Panel discussion highlighted two realities and a clear way forward.
Reality 1: The change required will not come from the large corporations alone. Many big global brands are making soothing noises about sustainability, but, with a few notable exceptions, this all still feels a little too incremental. Jeffrey Hollender was clear, “Big companies need to be more radical”. And smaller, nimble players are key to more radical thinking.
Reality 2: The next few years are going to be tough and messy for business, as external environmental and social challenges bite hard. Again, Jeffrey Hollender: “This will be an ugly period of transition, with winners and losers”. And the winners will be those brands and businesses that are prepared to be bold and take risks.
The way forward? All panellists used the words innovation and system change – a lot. From innovating business models to products and services, to changing the marketing system and the wider economic context. My take-away: brands could deliver a sustainable future, but only if they are prepared for a spot of radical innovation and a dash of system change.
Our event in New York was sponsored by Tata Global Beverages and kindly hosted by Thomson Reuters. Films of the New York and London events will be available shortly. Keep an eye on our website, check out #gsbnyc on Twitter or contact Geraldine Gilbert for more information.
This article originally appeared on the website of independent sustainability experts Forum for the Future.