Sustainability is an issue that dominates the news, the supermarket shelves, and many of our homes, especially as the cost-of-living crisis tightens its grip. But sustainability is also one of the smartest marketing tools at a business’s disposal, when used with caution.
Research from the National Marketing Institute found that consumers are willing to spend up 20 per cent more on products and services that are environmentally sound.
Sustainable business isn’t just great for attracting customers and creating a competitive advantage; finding sustainable practices can help businesses cut long term costs, attract the best people talent, and drive acquisition, retention, and customer relationship growth.
For eco-conscious millennials, as an example, an organisation’s values are important, with 74 per cent preferring to work for business with values that match their own.
Delivering on targets
In the UK, almost every major sector now has net-zero ambitions for the 2050 deadline set out by the government. Analysis suggests 40 per cent of these firms are not on track to deliver their targets, but telecoms is blazing the trail.
Recent research from the Boston Consulting Group found telecommunication firms in the UK could be looked at as examples of sustainable leadership.
On average, these firms reduced their Scope 1 (direct) and 2 (power-related) emissions by 15 per cent year-on-year in 2020, putting the sector on track to exceed the UK Government’s net-zero target for 2050.
In June 2021, Vodafone announced it would be powering its European network using 100 per cent renewable energy electricity by July the same year. The telecommunications giant followed through with this promise and set its sights on achieving the same steps in Africa by 2025.
With consumers increasingly choosing sustainable products over unsustainable ones, it’s not hard to see why businesses are rushing to join the green revolution. But like all great stories, there is a danger lurking in the shadows.
True credentials
The dangers of greenwashing – using sustainability claims inaccurately - can prove to be a PR disaster. The term greenwashing has entered the national lexicon over the last five years, with more and more consumers willing to call brands out on social media and lodge official complaints if they believe brands are using green credentials inaccurately for marketing.
The Advertising Standards Authority removed an advertisement by HSBC in October 2022 after it was found the bank used green claims to promote its services without acknowledging its own contribution to carbon emissions. Meanwhile, brands from Ryanair to Innocent Drinks have all been fined and had their advertisements removed because of greenwashing complaints.
Brands now need to be experts in a marketing landscape that is changing every day. Greenpeace laid out their checklist for interpreting greenwashing, and for brands who aren’t aware of the complexities risk falling victim to greenwashing complaints.
From tokenistic gestures, using very broad or poor definitions on purpose to cause misunderstanding, and not using evidence to back up claims; if a business isn’t clued up on the dangers, good intentions can turn into bad PR.
Accuracy and transparency
Marketing teams have been scrambling to get to grips with the latest issue they have to contend with, and some, as we have seen, are making the shift better than others. In-house marketing departments curated to showcase a business’ specific offering are less likely to be acquainted with the intricacies than an outsourced marketing team.
Agencies are experts in following the trends, watching the landscape, and learning from the mistakes to avoid passing them onto their clients. Outsourced marketing is key to unlocking a clean, green future without the need for a complaints department.
There is no doubt that sustainability should be on the agenda of every telecom business. The shift towards a greener way of living in the public consciousness means those that don’t factor in sustainable ways of business risk being left behind.
We are at the point of no return: sustainability will continue to grow as a trend, marketing tool, and a social issue, especially as millennial and Gen Z’s consumer power grows.
It’s no longer just about what a business is doing, it’s about targets, transparency, and making sure your money is where your mouth is.
Marketing, and marketing agencies especially, are a key tool at businesses disposal when it comes to ensuring their green credentials are being accurately publicised, without running into accusations of greenwashing.
This opinion piece appeared in our February 2023 print issue. You can read the magazine in full here.