Winning the Trust of Climate-Conscious Shoppers: The Path to Authentic Sustainability
Modern shoppers are more ecologically conscious than ever before. The rise of the “climate-conscious shopper” is a segment of people who actively look for brands that align with their values. With climate change and sustainability at the top of the global agenda, there’s pressure on businesses to meet these demands in a very honest and meaningful manner. However, some brands slip into greenwashing—or exaggeration and falsification—of their contribution to the environment. Now, with the new paradigm, companies must base their practices on true sustainability and stop hoodwinking their customers.
Who is the climate-conscious shopper?
Today’s eco-conscious consumer wants a little more than some flaccid promise of greener things. Transparency and authenticity have become important: Consumers are looking for enterprise commitments to carbon emissions, ethics, and sustainable packaging. That also gives brands the opportunity to actually connect with committed customers—for whom true, impactful sustainability practices are what will capture—and retain—their hearts and wallets.
The Danger of Greenwashing
Greenwashing represents exaggerated or invented environmental credentials attributed to businesses. Several high-profile cases reveal some of the risks. Take, for instance, the furore over H&M’s “Conscious Collection.” It has been criticized for making unclear claims that it uses sustainable materials for which there is little to hardly any evidence. Similarly, Shell has been accused of greenwashing over a major new campaign promoting carbon offset programs while meanwhile expanding its fossil fuel activities across the globe. These examples just show how damaging greenwashing is when it comes to trust, and thus reputation.
Consumers and regulators alike are increasingly on the lookout for spurious environmental claims. As a differentiator, brands must focus on verifiable actions, not slogans.
How Brands Can Avoid Greenwashing
1. Be Open and Accountable
Consumers like transparency. Companies with a high degree of disclosure related to their sustainability work win trust. Indeed, Patagonia has been frequently recognized for publishing an environmental impact report and issuing a call to action by sharing its challenges to sustainable development. This further reinforces the relationship with the environmentally conscious customer.
2. Utilization of Trusted Certificates
Third-party certifications, like Fair Trade, B Corp, and LEED, will help validate the environmental business practices a company claims. For example, Starbucks boasts of using Fair Trade-certified coffee. What it ascertains with customers is that its sourcing practices are ethical, at the same time conforming to environmental standards. Third-party certification makes it way easier for a shopper to identify the real deal.
3. Educate Consumers
Rather than just putting labels on their products as “eco-friendly,” brands should be educating consumers about sustainable living. For example, the “Sustainable Living” campaign from IKEA showed various practical ways of reducing an individual’s environmental impact easily at home. In addition to educating their audience, brands build their credibility by empowering consumers.
4. Focus on Real Innovation
True sustainability comes with meaningful innovation. A perfect example would be that of Unilever. The use of biodegradable materials in their lines of products makes them transparent and also a good case in the FMCG line in terms of the reduction of water usage. That goes even further beyond just marketing because the commitments that have been taken are rather eco-sensitive.
5. Engage Customers in Your Sustainability Journey
For many brands, it’s a collaboration with customers on sustainability. The North Face has a program called “Clothes the Loop,” where shoppers can recycle used gear for store credit. This kind of incentive instils a sense of shared responsibility and engenders customer loyalty at the same time.
Balancing Profitability and Sustainability
Sustainability often means up-front costs, but the long-term benefits are sometimes well worth it: authentic efforts can result in much stronger customer trust, a competitive advantage, and compliance with evolving regulations. Companies that balance their environmental objectives with financial viability will be more prepared to thrive in the future.
The Role of Technology
Technology will make brands take responsibility for themselves. Technologies such as blockchain will help track supply chains for greater transparency, and AI can analyze environmental data to enable more effective sustainability strategies. Such innovations will let businesses validate their claims and also avoid greenwashing.
Final Thoughts
The rise of the climate-conscious consumer is one of the more dramatic turns consumer behaviour has taken recently. It’s an outcome hugely tempting to take shortcuts with, through greenwashing, which increasingly feels like a losing game. Those who take honest, transparent and measurable actions will be the way that will turn out the winners in securing this increasingly valuable audience in addition to helping the planet be kept healthy, too. Sustainability issues are no longer optional, as they might mean a lot in relating to customers in the long run to a company.
~By Parbati Bandyopadhyay, IMS, Lalkuan, Ghaziabad