Johannesburg - Brands and businesses which have not yet started implementing sustainable development initiatives as a springboard for innovation and brand building are missing a golden opportunity, according to Leslie Pascaud, director of Added Value's Responsible Marketing Practice.
Speaking at the 2010 Brands & Branding for Good conference held in Sandton on October 13, Pascaud argued that big brands need to position themselves on an ethical platform and contribute to better and more sustainable business.
She said that although little progress has been made in the past year with regard to global macro biodiversity initiatives, on a more micro level, cumulated steps are driving real change.
China, for example, has invested $100bn in eco-compensation, the US government is signing financial reforms into law, and the EU is obliging member states to reduce exposure to the fine particles released by cars and trucks in urban areas.
As the world becomes more connected, brands are being held accountable for their actions. Nestlé, for example, was "encouraged" by Greenpeace to change its sourcing strategy after the release of a film circulated via the internet.
The film forced the company to stop sourcing palm oil which comes from unsustainable forests, threatening the habitat of orang-utans, said Pascaud.
Done correctly, resource saving can be a positive business strategy. The KKR Green Portfolio Programme, which was launched in 2008 in partnership with the Environmental Defence Fund, has managed to eliminate $160m in two years through energy reduction, recycling and other green practices.
"Brands need to build stronger bonds of trust and confidence which will result in increased consumer loyalty and reinforce supplier relationships," said Pascaud.
Winners and losersRetailers like H+M and Walmart are now demanding that suppliers reduce their pollution levels, while brands like Timberland are at the forefront of innovative sustainability.
Pascaud said there are winners and losers in the race for sustainable innovation supremacy. In the automotive industry, winners are companies like Toyota with the development of hybrid cars, while losers are companies like General Motors which made significant investments in the Hummer brand at a time when consumers are becoming increasingly sensitive to sustainability issues.
Manufacturers of mineral water are clear losers while anything to do with water purification is a winner, particularly considering that water will be the next big issue.
In South Africa, Sappi is a winner because of its environmentally friendly Triple Green paper sourced from sustainable forests, as is OutSurance for its sponsorship of traffic pointspeople at intersections where the traffic lights are out of order.
However, there are a number of opportunities locally, including entrepreneurialism built from hardship, environmental tourism and more recycling and re-using, Pascaud concluded.
- Fin24.com