The case for business sustainability

I recently needed to buy a can of expanding foam for a home improvement project. In the DIY shop, I had three choices. Two were the same price – around £8 – and the other was a pound more. I stood staring at the shelf – baffled because I know nothing about expanding foam!

Then I noticed that the more expensive can said that the foam was made from ‘16% recycled materials’ and went on to explain that the cap was 98% recycled and the can was 25% recycled. 16 and 25% are not particularly high numbers – but my choice was made. Neither of the other choices even mentioned using recycled materials.

I understood then how impactful sustainability can be on our purchasing choices. I was more than happy to pay 12.5% more for just 16% recycled materials in the product. I was instantly won over by the feeling that it was the best choice and that I wanted to support a company willing to make changes to improve the impact of their products.

It’s not surprising really that greenwashing is so common – but I won’t dwell on that, greenwashing and how to spot it probably deserves a post of its own.

There’s a tendency to see environmental and social concerns as the realm of hippies and angry teenagers – but the reality is that wanting to protect people and planet through our purchasing choices is absolutely mainstream:

• 93% of consumers globally say they want to live a more sustainable lifestyle.
• 62% of Gen Z shoppers prefer to buy from sustainable brands and 63-73% are willing to pay more for sustainable products.
• According to a recent survey of nearly 200,000 consumers, environmental, social and brand purpose are now key purchasing criteria for more than 50% of consumers globally.
• 24-25% of Gen Z and millennials have stopped or lessened a relationship with a business due to unsustainable practices.
• The UK’s net zero economy is growing faster than the rest of its economy and delivering higher paying roles

KPMG’s report for the Isle of Man Government, Our Big Picture, stresses the importance of environmental and social sustainability and the resulting Economic Strategy says that “At the heart of the economy must be our commitment to sustainability”.

And it’s not just customers who care about business’s social and environmental impacts – 70% of employees and job seekers feel a sustainability program makes an employer more attractive, and 44% of executives acknowledge it’s a key factor in attracting and retaining top talent. More roles in sustainable businesses could be a major part of the solution to attracting the young, skilled workers we need to rebalance our population demographics – all while improving our nation’s impact on people and planet.

When presented with a choice, most people will favour a product or service which either offers positive impacts or minimises negative ones – and they are often willing to pay more for it. This is important information for businesses and an opportunity to create that expanding foam moment for your potential customers.