ImPulse: What it means for your brand when consumers are turned off by eco claims–and what to do about it
In our ImPulse series, we gather thoughts from industry experts on trending research and innovation topics. This month, we look at the state of sustainability. Can companies overcome the damage of greenwashing with green honesty?
Nando’s. Delicious, spicy, moreish Nando’s. Extra extra hot PERi-PERi. Fancy a cheeky Nando’s? The first time you ate there, back in the day.
Whatever your first thought is when someone mentions Nando’s, chances are, you’re not considering sustainability. But the company does incredible work in this area, sending none of its food waste to landfill, and sourcing all electricity from UK renewables–both big statements to make. According to Which?, Wahaca is the only restaurant chain that’s more ecologically-minded (and then only slightly). When taking into account emissions, sourcing policies, waste and plastic use, transparency and targets, Nando’s has a sustainability score of 81% vs. 38% for another famous chicken chain.
The brand’s sustainable approach appears to be truly at the heart of the way that it does business. But, would you have any idea of that from its primary positioning in the market – its colourful, humorous, spicy take on the world? It doesn’t scream eco-warrior.
Say-what gap?
Sustainability is a priority for leadership in every major business, driven by shareholder expectations and mounting legislative pressures. But, the consumer-driven revolution many anticipated—a surge in demand for greener, more ethical choices—has yet to materialise.
Do today’s consumers simply not care about sustainability? Kantar’s Global Sustainability Sector Index 2021 found 92% of people say they want to live a sustainable life but only 16% are actually changing their behaviours. This has led to talk of a sustainability say/do gap, where there is a disparity between expressed values and actual actions.
But Juli Beard, Director of Research at Mindlab, suggests sustainability may not factor into consumer’s thought processes, even idealised ones, as much as businesses assume: “Often, in our research, people don’t even claim sustainability is a key driver in purchase decisions,” she says, “and when we dig deeper that rings true. It might be that the segment that makes ethical decisions with every purchase is growing but we’re not seeing it scale as dramatically as predicted.”
“Often, in our research, people don’t even claim sustainability is a key driver in purchase decisions.”
The issue isn’t necessarily that people don’t care about sustainability. It is that they do not think this one moment–buying a new pair of jeans or a drink at the bar–is going to change the world. Mindlab studies consistently show consumers view their individual actions as having very little impact on climate change, while companies can make a big difference. We’ve carried out a raft of studies delving into sustainable behaviours and what they have all shown is that most people believe that it is the responsibility of the government, brands and corporates to lead the way and make sizeable changes that matter. People tend to place responsibility on governments and large corporations to act in the best interests of our collective futures. Placing blame at consumers’ feet only compounds frustration.
“[C]onsumers view their individual actions as having very little impact on climate change, while companies can make a big difference.”
Although consumers expect ethical behaviour from businesses, they remain deeply cynical. Aware that by nature businesses are focused on profit and sales, consumers suspect eco claims are exaggerated or financially-driven with sustainability being a convenient cover benefit. Greenwashing has eroded trust.
Loss aversion
Another reason sustainability claims often don’t resonate well is the perception of loss. When businesses promote products or packaging as being more sustainable, our research shows that there’s still an outdated belief that this will entail a sacrifice–be it higher prices, reduced aesthetic appeal or practicality.
According to loss aversion theory, people feel a loss much more than they feel a gain, making these perceived sacrifices a significant barrier to embracing sustainable choices.
“[P]eople feel a loss much more than they feel a gain.”
What to say
All-in-all, it is incredibly challenging to frame a change in a product as sustainability-driven, seeming at once a loss, and potentially a corporate cover-up.
The solution is going to be different in every industry and for every brand, so the right approach to talking about sustainability varies. However, our research finds that success for large businesses which haven’t always had sustainability at their core relies on:
1. Understanding the consumer
Any messages businesses communicate need to be tailored to resonate deeply with buyers. What do they genuinely want to hear about? What will stand out in the market? For most businesses, sustainability isn’t going to be what excites people to buy, that brings them joy.
Morgan Arnell, from eco-beer brand Crumbs Brewing, believes it comes back to not feeling like you’re making a compromise but still enjoying a premium, quality experience:
“I go to pubs and talk directly to consumers with other brands, and what I see is this: everybody drinks and goes out because they want a delicious drink while hanging out with their mates. It’s about joy, it’s about connection.We have to remember that while we care about sustainability, there are lots of other considerations at play – quality, experience, price – these are all still really key too.”He says brands can make something desirable and environmentally friendly but that’s not all: “Of course, it has to be financially viable too or else there is no long-term future in it. It’s about finding the sweet spot – the win-win-win between sustainability, consumer joy and profitability.”
“It’s about finding the sweet spot – the win-win-win between sustainability, consumer joy and profitability.”
2. Being honest and humble
Consumers don’t mind businesses saving money and increasing profits: they get that’s how the world works. Tanya Popeau, former advisor to the United Nations and director of Synthesis, believes improving sustainability is exactly the way to drive growth right now: “Companies are proving that you can embed sustainability into your business model and drive profit and positive change at the same time. A great example is Paul Polman at Unilever. He was revolutionary when, as far back as 2009, he introduced the Sustainable Living Plan because he could see it would provide the company with a commercial advantage. Over 10 years, he consistently generated significant growth across brands and products by looking for areas to drive positive societal and environmental change. I’ve worked with Unilever and they understand sustainability provides them with an opportunity to innovate and present something new to the market.”
When making an environmentally friendly change that has a positive financial impact, businesses can admit it rather than alienating people. It’s ok to run an environmental message and make good money: businesses need a believable proposition.
“Companies are proving that you can embed sustainability into your business model and drive profit and positive change at the same time.”
Taking accountability, ownership, responsibility is instead a big part of countering scepticism. It’s much more believable to run on a sustainability message if a business explains the problem and how it’s being addressed. A whisky company, for instance, might explain how much water is being used in the process every year and how the impact of that is being reduced. “And make it real,” says Juli, “Put it into context. Take a baseline–compare it to how much water is in Niagara Falls. That specific openness and honesty goes a really, really long way,” says Juli.
There’s also value to be had in making changes behind the scenes that have an environmental positive impact without necessarily shouting about it and risking greenwashing. “A valid choice is not to talk about changes. Take action in the background. If people are interested, they can dig into it,” says Juli. “Not everything can be sold on the environment.”
3. Pairing benefits
Sometimes, it’s evident a change has been made and then an explanation is required. Where that is the case, think about how a positive feeling can be made to outweigh the idea of giving up something that is valued. It is about reducing or replacing the negative change by finding an additional benefit for the consumer.
Look at electric vehicles, for example. Tesla made the product into a status symbol and people got excited about the sustainability angle as a secondary consideration, potentially changing the trajectory for high end electric vehicles. But not every initiative needs to change the entire category. Another example Juli emphasises is from a beer brand: “When I was in Germany in the 90s, a brewery ran an ongoing campaign where for every crate of beer sold, an area of rainforest would be protected. It was embraced because people found the humour in it–‘drinking for the rainforest’: it created this extra layer of excitement on the environmental initiative.”
“[M]ake it real. Put it into context.”
4. Leaning into packaging connotations
Nick Rich, former Vice President of Insights & Analytics at Carlsberg, who are forerunners in investing in the technology to make paper bottles, believes many consumers are open to sustainability changes as long as they understand them. “It takes a lot of money and a lot of effort and R&D to get to a point where paper bottles, for instance, are workable. The outcome might be slightly less flashy packaging so it’s important people understand the reasons why.”
“It’s important people understand the reasons.”
“Packaging connotations are deeply engrained,” says Juli. “As a society, we’ve been indoctrinated to believe that weight is a signifier of expense, so how does that work for a premium product? Matte cardboard packaging tends to indicate an organic or healthy product so it works well for an organic skincare range but isn’t ideal for Nurofen where the glossy box conveys confidence in the medication’s impact. The biggest businesses are in a position to change the landscape, because they are setting the category cues. Rather than just leaning into existing semiotics and category codes, they can develop innovative and environmentally friendly approaches that change these perceptions for the future.”
5. Focusing on collective change
Consumers are more receptive to changes when they feel part of a larger movement. We partnered with Hearst magazines on a series of semi-implicit association tests with over 2,000 people, finding they place a high value on policies with large scale impact and support the sentiment of everyone playing their part with recycling, shopping locally and repairing rather than replacing. But that has to be done authentically: executed without PR and profit focus, it can go a long way to repair trust.
One example of this is Diageo’s DRINKiQ programme which aims to raise the ‘collective drink IQ’ by increasing public awareness of the effects of alcohol and supporting responsible drinking.
“Mindlab have been a great sustainability research partner to us this year, we’ve been on a rich and insightful learning journey together. The fact that we’ve just embarked on a second-round study is testament to how valuable this work has been. Thank you Mindlab!”
Bianca Woolley, Global Marketing Sustainability Lead, Innovation, Diageo
Simon Tregidgo of Kingfisher similarly says that the home improvement company has an important role in helping customers be more sustainable:
“We’re doing a lot with our own brand products, including by working to ensure our products and packaging have the lowest possible environmental impact. But that’s only the start: we’re also providing better signposting for our customers on how they can improve their use of resources. For example, B&Q provides a free and bespoke energy saving service, where customers can get specific advice on how to practically improve the energy efficiency of their home. From raising awareness of small things like putting an insulating jacket over the hot water cylinder to save £50 a year, to more significant investments like solar panels, we’re helping people to plan ahead.”
“If you’re considering buying a new car in the coming years, you know roughly how much it’s going to cost to help you budget. But for big changes to improve home energy efficiency, many of us don’t really know how much these types of changes will cost and save. The B&Q energy saving service is helping educate people, making collective change seem more realistic and achievable.”
“[It’s] making collective change seem more realistic and achievable.”
People adapt quickly to change, as seen with plastic bag charges or the ban on plastic straws. It’s about guiding people to make the right choice, creating the right environment for good choices to be made.
Dig into Nando’s and it’s like the brand has written the rulebook on effective sustainability messaging. For those who care to look, eco-conscious practices are outlined in depth on their packaging and their website but sustainability isn’t simply a marketing angle: it is core to operations with efforts being integrated, genuine, and deeply rooted. It is profound consumer understanding that drives its success, with a vibrant, spicy, and joyful brand personality drawing customers in, engaging both the eco-conscious consumer and those looking for a delicious meal.