Thursday 31 July 2014

Sustainability is Becoming a Key Part of Decision Making for Brands, Consumers




As consumer demand for greater transparency by brands increases, companies are stepping up their commitment to sustainability. 
 
Procter & Gamble is partnering with the Malaysia Institute for Supply Chain Innovation to help small farmers improve their palm oil and palm kernel oil production as part of its zero deforestation goals set in April after the consumer packaged-goods company was targeted by Greenpeace.

“We already work with larger suppliers to trace the origin of our supply chain, but small farmers—in places like Malaysia and Indonesia—account for 35 to 45 percent of palm oil production,” said Len Sauers, VP P&G Sustainability. 

But brands aren't the only ones having to make decisions with sustainability in mind. New tools and online tracking technologies aim to help better understand consumer behavior with respect to sustainability such as supercookies, browser fingerprinting, location-based identifiers and behavioral tracking.

In laboratories, research on “the neuroscience of consumer decision-making using implicit associations (people's subconscious responses to brands), EEG (a cap to measure brainwave activity), and fMRI techniques (to measure changes in neuron activity in the brain)” is advancing the understanding of “the conscious and sub-conscious processes driving emotional engagement," The Guardian reports. 

However, a majority of retailers and brands “still depend on simplistic surveys and focus groups to study sustainability concerns and commitments of consumers.” Like public television surveys of yore where “self-esteem” answers led to flawed results, "social desirability" on sustainability surveys similarly skews the data.

“While brands have been remarkably successful at feeding universal human drives, such as the desire for adventure, power or status, sustainability has not been seeing the same success in its messaging," the site notes. “What sustainability needs to create the same impact is a similar level of insight into the best way to embrace the full range of human emotions. Because it's human emotion that's at the heart of what motivates us.”
Practical tools in the marketplace like Ethical Barcode’s new app lets consumers access real-time data on companies that embrace their values on issues like child labor, animal testing and deforestation. 

More Sustainable Branding:
- Macy's is installing 17 free-to-operate vehicle (EV) charging stations outside of eight stores in the Los Angeles region by this fall, bringing the total to 33 EV charging stations in southern California. It's also installing energy-efficient LED bulbs in all Macy’s store nationwide by year’s end; 20 additional solar energy systems; and is working with vendors to reduce the use and waste of packaging materials, integrating recycled fibers into garment tags and using FCS-certified paper hangtags.
- The NHL, which just released its 2014 Sustainability Report, plans to reduce the use of natural resources in business operations while tracking and measuring the environmental impact of the sport. The League's carbon footprint—approximately 530,000 metric tons of greenhouse gas emissions annually—compares favorably against annual emissions from the single largest coal power plant in the US at 23 million metric tons.
- Sustainability in the Tire Industry 2014 reports that green tires are driving the industry as legislation in the developed world demands “vehicle makers and their supply chains to minimize fuel consumption and emissions of greenhouse gases, and corporate brand managers are insisting on differentiation.”
- Hyatt Hotels is pursuing a benchmark for sustainability efforts among its competitors in the hospitality space. “You have to compare among peers and among the industry segment itself to make it meaningful," Hyatt Hotels CFO Gebhard Rainer told the Wall Street Journal. “We’re all releasing numbers and we’re all talking more and more about sustainability, but very often it is hard to get that tangible comparison and know what the benchmark is, or even how that relates to somebody else’s benchmark.” 



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