How Sustainability Marketing can Increase Branding and Profitability

Businesses today face more demand than ever before to measure, reduce, and communicate their environmental impact. With pressure coming from regulators, consumers, and competitors, it can be hard to know where to start with sustainability marketing.

We're here to help: Klimato has guided hundreds of companies through sustainable transformations with our science-backed solution and deep industry expertise. Read on to learn how and why you can boost your brand value and profit with sustainability marketing.

What on Earth is sustainability marketing? 

In simple terms, sustainability marketing is the way you answer the following question: How is my business committed to the environment? The answer involves promoting brand values and practices that show environmental responsibility, being mindful about the way you design your products and services so they are better for the planet, and planning long-term strategies to reach sustainability goals.

Klimato helps your business to set, track, communicate, and crush these sustainability goals. 

How can sustainability marketing benefit a business?

A sustainability marketing strategy has three key benefits:

1. It has a positive impact on branding

As many businesses in the hospitality industry are starting to include sustainability in their marketing strategy, targeting new customers who are looking for a greener choice can make you stand out as a true pioneer of food sustainability - with great results for sales and brand image.

A recent Capgemini study shows numerous data points supporting this:

• Branding value: 79% of customers are currently changing their purchase preferences and brand choices based on products’ social or environmental impact. Even more, 53% of consumers stated that they had been fully switching to new, less famous brands because they were more sustainable. 

• Emotional value: More than half of consumers state that shopping from sustainable brands gives them a feeling of emotional connection, with 64% saying that purchasing sustainable goods makes them feel happy.

• Customer relationship: Organizations are also enjoying the effects of sustainability marketing, with 77% stating that it has improved their relationship with customers, and 63% saying it has increased brand revenues too.

2. It makes businesses more profitable 

Finding sustainable solutions to reduce your impact on the environment can lead to long term competitive advantage, and even help you reduce costs in the long run.

According to GFI Europe, a more sustainable, plant-based meal offer is not only ethical, but often more appealing to customers: the market for plant-based products and meals is growing quickly, with sales of plant-based foods growing by 21% only between 2020 and 2022, reaching a record of a staggering €5.8 billion in market value. 

In terms of expenses, swapping meat, fish or dairy with plant-based ingredients on the menu can reduce food costs significantly.

On top of that, as the demand for plant-based products grows, customers are willing to spend way more on meals that meet their dietary restrictions when eating out, especially when made aware of the difference it makes. Cost savings, revenue growth: it’s a win-win!

Klimato’s clients are a great example of how showing your environmental commitment to the world can really make you stand out from the rest of the crowd.

3. It attracts a more committed workforce

Including sustainability in your marketing strategy and brand identity, while always making sure to practice what you preach, has been found to influence your business’ appeal to potential employees as well.

Applicants, especially younger ones, tend to be more likely to apply and accept positions in companies that are environmentally sustainable. Even more, they seem to be willing to accept lower salaries compared to other offers if the company is committed to environmental or social goals.

Best practices from Klimato customers

Our clients’ brilliant results speak for themselves, as is the case for ForSea, a sustainable shipping company operating electric ferries between Sweden and Denmark:

Other than putting ForSea on the map as a market leader in terms of environmental commitment, their sustainability efforts also paid off in customer engagement. This was shown by a study conducted by ForSea in partnership with Brandenburg University, which involved testing food sales for one week without labels, versus one week with Klimato carbon labels on menu items.

The results showed how customers positively responded to the carbon labels, which led to an increase in total sales - and in particular in those of low-impact meals - on the week in which they were displayed. 

How can Klimato help?

Sometimes getting started is the hardest part, which is exactly where Klimato comes in. We help businesses calculate, report, and reduce the environmental impact of their products and services.

By using the Klimato software, professionals can make more informed and environmentally committed choices, as well as communicate their sustainability efforts to clients and stakeholders.

Hundreds of clients around the globe have already joined our quest for a more sustainable way to serve delicious food, with brilliant results for their businesses and the planet.

Sources 

Kemper & Ballantine, 2019
Peterson et al., 2021
Sinkula & Baker, 2005