As the need to reduce greenhouse gases and solve global climate change becomes more pronounced, consumers will only continue to gravitate towards brands that signal their commitment to sustainability and social change. In much the same way that they currently select brands as a form of self-expression and a way to demonstrate their personal lifestyle choices.
The brands we align with offer a window into who we are and what we believe. They are a social status signal that we use to reward ourselves and inform the world around us that we are: successful (Tiffany, Mercedes); athletic (Nike, Lulu Lemon); affluent (Ferrari, NetJets); thrifty (Honda, Target); tech savvy (Apple, Google).
According to The Yale Program on Climate Change, nearly two-thirds of global greenhouse gas emissions are linked either directly or indirectly to human consumption. What we buy, what we eat, how we travel, and how we dispose of our waste all contribute to climate change.
Some companies are already answering this call. They’re making their supply chains more efficient. They’re adapting their products away from materials that create carbon. They’re reducing their reliance on fossil fuels. They’re becoming more efficient and more local. And, they’re finding that these practices are increasing demand for their products and making them more profitable.
A study by Morgan Stanley found “that these companies could earn outsized gains because they focused on things that aided their businesses, like wasting less water and energy, incentivizing their CEOs to focus on the long term and providing high-quality, diverse workplaces that lead to greater employee satisfaction, retention and productivity.
In one meta-analysis, 88% of studies found that companies that adhered to social or environmental standards showed better operational performance, and 80% of studies showed a positive effect on stock price performance.”
Climate change is driving consumer buying decisions, especially younger generations. A June 2019 study from A.T. Kearney revealed that 58% of Gen Z internet users in the US and Canada wanted eco-friendly packaging, and 57% were seeking environmentally sustainable products.”
As businesses look for ways to stay relevant and attract young buyers, now is the time for companies to shift their focus and capture the incredible opportunity of engaging with climate consumers.