Effective positioning on sustainability

Increasing focus on sustainability

We are increasingly seeing the effects of climate change. Just think of those beautiful summer days we still had in October. Nice, of course (and convenient with those high energy prices), but extreme and caused by our choices that keep warming the earth. We see these kinds of examples almost daily in the news.

With all this attention, more and more consumers are seeing the importance of sustainable choices and sustainable businesses. They are more and more willing to pay extra for those sustainable choices. When choosing an energy company, 76% of consumers pay attention to the company's social impact. With supermarkets 68% of consumers do.

Resource: Monitor Merk & Maatschappij, 2022

What is sustainable positioning?

Sustainable positioning is one that comes from your values your capillaries, your deepest drive and core of your business. What are you going for and what do you stand for? That forms your brand.

Sustainable actions within the company

A sustainable company considers the effects on their employees, the environment and society in their operations. The sustainable development goals dones that serve as guidelines around the world help provide focus.

For example, a sustainable company offers innovative or energy-efficient products or responds to the growing demand for renewable energy sources. Sustainability can also be in good working conditions, community involvement and actively working to reduce its carbon footprint. You can do this in many ways, such as:

1. sell your waste as raw material,
2. making your premises low energy,
3. create a power plant for the neighborhood of your premises or distribution center,
4. switch to renewable energy,
5. work only with partners, suppliers and distributors who also work sustainably,
6. celebrate and utilize diversity in the workplace,
7. invest in projects that plant trees, fight hunger or inequality
8. serve healthy and local food in your canteen
9. and so on.

The list of what you can do is endless. Sustainable consultants can help you translate everything you do into a sustainable alternative. Be surprised: it will be more fun and you'll retain better staff.

From sustainable actions to sustainable positioning

60% of companies are actively working on the topic of sustainability, but only 5% have the sustainability operation completely in place (The National ESG-barometer, 2022). For example, did you know that PostNL delivers with net zero CO2? No, neither did we. This is because PostNL does not position itself on sustainability, which in our view is a great shame. If you have a sustainable business, now might be the time to become that sustainable leader and focus on sustainability in your positioning.

Image or no-brainer?

Sustainable positioning means that as a company you communicate about your efforts in the field of sustainability and in doing so show that you really want to contribute to a better world. Many companies find this such a no-brainer, such a logical condition for growth, that they do not want to position themselves on it.

After all, sustainable and circular business practices should be the standard? Laws, regulations and international agreements also enforce it. Think carefully about what you communicate: practice what you preach. And make sure that your message is powerful and convincing, so that you get into the head of your (potential) customer and never leave.

Opting for sustainable strengthens your market position

A recent study, Kapitana et al. (2019), examined the relationship between corporate sustainability and market position. To do so, the researchers used data from more than 1,600 companies in the United States over a 10-year period (2008-2017).

The conclusion: there is a strong positive correlation is between sustainability and market shares. This means that companies that focus on sustainability also tend to perform better in the financial markets. That means not only positioning yourself on sustainability, but being it in all your processes.

Sustainable examples

You see more and more major players making the switch to sustainable positioning. Think of G-Star that takes plastic from the ocean for its RAW line and turns it into trendy jeans. But IKEA is also profiling itself more and more visibly as the sustainable retailer. Dutch consumers have seen IKEA for years as the most sustainable retailer in the Netherlands (Sustainable Brand Index, 2022).

You can also see sustainable companies conquering the market from SMEs. Just think of the Vegetarian Butcher, which makes meat substitutes that mean fewer animals are eaten and therefore less CO2 emissions. Or how about Tony Chocolony, whose mission is to make 100% slave-free chocolate the norm in this industry? Two examples of clear and effective positioning on sustainability. They are both at the top of the Sustainable Brand Index 2022.

Sustainable positioning good for everyone?

Yet you see that not every company goes for positioning on sustainability. This is also due to the fact that this positioning is new territory. People in existing companies find it scary to let go of the familiar and go full throttle for the unknown. Companies often do not know if they can create support among employees and stakeholders. Moreover, some companies think that a circular business would be more expensive or difficult, while it has become clear more often than not that this move is necessary for the survival of companies and for a healthy planet.

Would you believe it if Shell suddenly positioned itself as sustainable? Or BP? Remember that big environmental disaster in 2010 in the Gulf of Mexico? These companies are now doing things that are sustainable and that help create a sustainable future. The question is whether, as a company, you live up to it. And whether your audience will accept it and begin to perceive your company as sustainable.

How do you set up your sustainable positioning for your business?

If you and your SME want to do sustainable business and position yourself as sustainable, it is important to meet certain conditions.

1. 1. Be credible, including in terms of sustainability.
2. 2. Making your environmental impact neutral or even positive
3. 3. Carefully consider who you choose as stakeholders.
4. 4. Efficient and circular use of raw materials and energy.
5. 5. Adhere to a fully sustainable business philosophy and operation.

Have you made the switch and want to be fully sustainable in your positioning and marketing as well? Schedule a meeting via this link.

Then we'll discuss how to mean more to your employees and customers while conserving resources.