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The G7 summit left us with plenty of ambitious statements and promises on climate change from world leaders but little in the way of funding campaigners say they need to support developing countries dealing with the climate emergencies.
And despite the focus on climate action during the summit, the U.K. contingent arguably provided some very mixed messages on the issue. Summit host Boris Johnson announced to the G7 delegates that “action needs to start with us.” This was after he flew from London to the summit in Cornwall on a private jet. To add insult to climate injury, the hosts also put on an air display for the G7 leaders.
Brands get caught
Greenwashing is not just the preserve of politics. Businesses and brands are continually called out for making claims to safeguard the environment with no evidence to support them. Most recently, The North Face was criticized for being hypocritical after it refused to affiliate itself with a fossil fuel business. The brand was accused of billing itself as an eco-friendly company while its business is predicated on selling clothes made of petroleum-based, synthetic materials.
Two-thirds of people in the U.K. are skeptical of brand communications around the environment and social purpose because they believe brands are not walking the walk on the issue, according to a recent survey. To combat this rise in greenwashing, the U.K.’s competition watchdog, Competition and Markets Authority (CMA), began investigating brands last year for using marketing messaging to break the law and mislead consumers about their eco-credentials. It is now consulting on draft guidance for businesses.
Some brands exploit the sustainability movement by jacking up prices to support their carbon offsetting instead of investing what is needed to reduce their impact on the environment. To sugar the pill for the consumers forced to foot the bill, they put out marketing and communications making grandiose statements about saving the planet.
Time to rethink
Businesses across sectors need to do the difficult work of rethinking their entire value chain and becoming accountable regarding the actions required and the steps they are taking to protect the environment. Transparency and accountability are required across everything a business controls and influences, so that the burden isn’t solely on consumers when it comes to changing behavior.
Currently, Nike is transforming its value chain to reduce waste and carbon impact. This, combined with its heritage of innovation, is becoming a key differentiator for the brand. While far from being the first media company to go carbon neutral, Sky Zero plans to reduce emissions by all suppliers by 2030. Meanwhile, Apple’s operations now run on fully renewable energy, and the assembly sites for its products are certified Zero Waste to Landfill.
Businesses should also be supporting their suppliers to operate sustainably, especially in the developing world where price and profit continue to drive the conversation with suppliers and manufacturers. Patagonia is among those that follows fair-trade practices and the brand is currently working to make its supply chain safe for the environment, workers and consumers. Likewise, travel brands Airbnb and Booking.com have been helping hosts and their guests become more sustainable for the past few years.
Brands should also be encouraging their customers to embrace the circular economy to reuse, resell and recycle. Patagonia not only uses sustainable materials in its clothing, but it also helps customers repair their clothes instead of buying new items. Apple is among the many consumer tech brands now offering discounts and other benefits to encourage consumers to recycle or exchange old tech for new. And recently, Ikea launched a furniture buyback and resale scheme in an effort to reduce the number of products going to landfill.
Potential for sustainable investment
Right now, sustainable investing is seen as the growth opportunity of the decade with environmental, social, and governance (ESG) stocks set to soar. PricewaterhouseCoopers (PwC) recently announced it is planning a $12 billion investment for 100,000 new jobs to boost ESG expertise for clients.
But the ESG boom can only come to fruition if the opportunity for innovation is embraced fully and authentically, and this can’t happen when businesses continue to operate in an unchanged value chain. While we’re seeing some brands moving in the right direction, there is so much more to be done across sectors.
Consumers are ready to make wholesome changes to their lifestyles. In fact, a recent poll showed nine in ten people are taking steps to reduce their impact on the environment. When will brands catch up with consumers on climate action?
