Sustainability Is Good for Business, New Survey Shows

Going green doesn't mean a company's bottom line has to suffer. Evidence suggests the opposite is true, according to new research from global consulting firm, Capgemini. In a survey involving 750 senior executives at various consumer product and retail organizations located around the globe, results found that 77% of company leaders said sustainability initiatives have increased consumer loyalty. In addition, 69% said these programs increase brand value, while 63% indicated they boost total revenue. "So far, many organizations have viewed sustainability as a bolt-on," said Kees Jacobs, vice president of consumer goods and retail at Capgemini, in a statement. "However, when baked into an organization’s mission and purpose, sustainability has the potential to entirely change an organization’s relationship with its customers and partners." [kickout id="1"] Much this comes down to changes in consumer sentiment. Additional data from Capgemini reveals that 42% of global consumers have already changed their purchase preferences based on either social, economic or environmental impact, while 37% are open to the idea of shifting their shopping habits for similar reasons. Although the CPG industry remains a major source of plastic waste, many companies are taking steps to reduce their impact. Last week, for instance, Dole Packaged Foods pledged to eliminate its use of fossil-based plastic packaging by 2025 and become carbon neutral by 2030. Both PepsiCo and Kimberly-Clark have recently issued similar promises to diminish their environmental footprint, too. PepsiCo plans to reduce its use of virgin plastic across its beverage portfolio by 35% in the next five years, while Kimberly-Clark is adjusting its approach to using the Earth's resources. "Kimberly-Clark's success is dependent on innovating new ways to give consumers the essentials they need while safeguarding natural systems and the life they support," said Lisa Morden, Kimberly-Clark's vice president of safety, sustainability and occupational health, in a statement. "That means eliminating waste and recovering resources; protecting forests of high carbon, biodiversity, and cultural value; cutting greenhouse gas emissions in line with climate science; and building strong water stewardship practices where it matters most." Meanwhile, startups such as the toilet paper brand Who Gives a Crap, which makes its product using either bamboo or recycled paper, are challenging the status quo. In a recent report from the environmental advocacy group Natural Resources Defense Council, the organization gave Who Gives A Crap a grade of A+ on its tissue scorecard for not relying on virgin forest fiber. Kimberly-Clark's Cottonelle Ultra, which does not use recycled material, received an F. Major manufacturers from Nestlé to Coca-Cola to Procter & Gamble are also in the process of redesigning their product packaging to be more environmentally friendly. Many of these same companies are also working with a service called Loop, which aims to create a marketplace for brands and consumers willing to reuse packaging that stores household goods, from mouthwash to disinfecting wipes, as opposed to either recycling or discarding it.

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Sustainability Is Good for Business, New Survey Shows

Nearly two-thirds of senior executives said environment-friendly initiatives help boost revenue

Paul Hiebert

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