Sustainability is top of mind with consumers. They have more choice than ever on where to spend their money. So more than ever, companies are focusing on sharing their sustainability efforts with their customers. Does sustainability affect consumer buying? The data says yes.

ESG (Environmental, social and Governance) are the criteria used by companies to build value. They organize business objectives around sustainability-focused risks and opportunities. Initiatives can include customers, supply chain, and even employees of a company. So get started! Basically, start by tracking your company’s impact on the environment. Then, measure your sustainability. Finally, share the results. This process can influence consumer interest in your company, your products, and your services.

Sustainability: What is ESG?

The environmental, social, and corporate governance framework highlights three areas where companies can track their sustainability. This can illustrate their impact on the environment.

• Environmental: Does your company strive to preserve the natural world? Chiefly, talk to your consumers about how you are addressing climate change, pollution, water management or greenhouse gas emissions. This information could take the form of a Sustainability Report at the end of the year. We do this for our client Acme Brick every year. You might apply content marketing on your website. Or use social media posts to highlight specific places where your company has excelled.
• Social: Does your company focus on including and supporting a diverse community? Referred to as DEI (Diversity, Equity, and Inclusion), this set of actions enhances employee engagement and retention. Firstly, this could look like employee spotlight blog posts. Or you can engage the public with PR. Additionally, you might establish and promote programs to broaden your talent pool. Or you could support employees by offering training programs, like our client Diamond Brand Gear does.
• Governance: This aspect of ESG covers topics like cybersecurity practices, corruption prevention and management structure. Indeed, talking about your company’s efforts in these areas reassures clients that your company is solid. It can highlight innovation. Generally, you can share posts on LinkedIn touting an advance your company has made in one of these areas, as an example.

Consumers Want to Buy From Companies That Support Sustainability

As 83% of consumers demand more ESG best practices from companies, 91% of business leaders now believe that their company has a responsibility to act on ESG issues. Conclusion? Obviously, consumers want to follow, buy from, and visit these companies more readily than ever before. And it’s not just consumers that want brands to take on these initiatives. 86% of employees say they’d prefer to work for companies that care about these issues. Sustainability has become one of the top issues that people care about.

Sustainability as a business goal is not a trend. Certainly, it is key to creating meaningful relationships with your customers and your employees. First, make sustainability your company’s business goal. Next, set up programs that support sustainability. Then, track and talk about your success. Therefore, this process is a fountain of content that you can share with your customers. Grow meaningful relationships with them centered on sustainability. And in turn, grow your sales based on your customers’ desire to make financial decisions tied to the social good your company is doing.

On January 1, 2015, the Carryout Bag Ordinance went into effect in Dallas ~ hello baby step on the road to sustainability in our great city. The ordinance mandates that retailers charge consumers five cents for every single-use plastic bag they are given. This legislation may have dealt Dallas shoppers a jolt, but it’s nothing new.

Some Canadian cities have been adhering to these regulations since 2007, and Dallas is joining an ever-growing list of American cities who have been on board including San Francisco, Chicago, Portland, Austin and all the islands in Hawaii.

The reason for doing this is simple: WE HAVE TO.

Consider this:

• More than trillion plastic bags are used every year worldwide.
• Only somewhere between .5% to 3% of all bags is recycled.
• A single plastic bag can take up to 1,000 years to degrade.
• Plastic bags remain toxic even after they break down. When plastics break down, they don’t biodegrade; they photodegrade. This means the materials break down to smaller fragments which readily soak up toxins. They then contaminate soil, waterways and animals upon digestion.
• Ten percent of the plastic produced every year worldwide winds up in the ocean, 70% of which finds its way to the ocean floor, where it will likely never degrade.

As consumers, the decision is easy. Plastic bags are superfluous and avoidable, so take reusable bags shopping with you. Throw them in your car and use them. End of story.

But as a business-owner, there is a bigger issue at play – sustainability.

The most widely agreed upon definition of sustainability requires we meet the needs of today without negatively impacting future generations. All companies have the opportunity to formulate and then execute a strategy that will take into account all aspects of sustainability but that is useful enough to be implemented today.

True sustainability has four coequal components:

1. Social (act as if other people matter)
2. Economic (operate profitably)
3. Environmental (protect and restore the ecosystem)
4. Cultural (protect and value cultural diversity)

Now, more than ever before, consumers, employees and investors share a common purpose and a passion for companies that do well by doing good. So any strategy without sustainability at its core is just plain irresponsible – bad for business, bad for shareholders, bad for the environment.

Side note: It was our fine city’s birthday yesterday! Happy 159th Dallas! We built this city on rock and roll baby!