Sustainability today is no longer a unique value proposition for many brands, but an inherent expectation that a brand will be ethically made and will not harm the environment or the community. The need for brands to have ‘purpose’ and be environmentally responsible has gained significant momentum. There is a sea change in attitudes amongst the investment community as well. ESG or environmental, Social and Governance issues, termed as ESG are gaining significant prominence.
Let’s take a step back and decode the buzzwords and the implications they have on brands.
|Responsibility Frameworks||Brand Action Points|
|Sustainability Mostly understood as environmental sustainability – reductions of waste, water, emissions, circular economy and commitment to renewable energy.||The circular economy is emerging as the biggest challenge of our times. Customers, Suppliers and Employees are becoming important stakeholders in achieving this.|
|CSR Contributing to charitable causes or taking up projects that have larger social implications||Consumers may connect to these causes initially but may want to see real on ground action if the brand promotes this over time.|
|ESG Largely used by the investing community to measure how an organisation measures up on Environmental, Societal and Governance issues (ESG)||This area of corporate tracking is quickly emerging as an important space and investors are expecting companies to move towards creating integrated reports (IR) that contain, financial and non-financial parameters. These could include Responsible AI, Privacy by design, Cyber Security, Circularity, Green Supply Chains, and more.|
|Brand Purpose Largely related to a higher calling beyond the functional aspects of a brand.||While brands may purport to have brand purpose, convincing customers may take some effort as customers distrust in advertising led communication is waning across the world.|
However, there can be gaps between intent and action. Futurescape’s ESG Assessment Services help you decode the buzzwords and define the gap between intent and action. Does the brand or the company need a reimagination of intent? What will bridge this gap between intent and action? Do corporate incentives need to change? Do processes need to change? Do we need more transparency?
Embracing responsibility means bringing change in the organisation. Once this assessment is done we outline the important changes that need to be actioned and begin the path of creating new customer journeys that build into the inherent promise of zero environmental damage and social responsibility.
Futurescape helps companies define these ESG journeys keeping in mind, Biodiversity, Circularity, Renewable Energy and above all Customer actions and Employee responses that can enable the change.