Living sustainability instead of pretending

Hygiene factor sustainability

No company can avoid the topic of sustainability today. Fortunately, not only the executive floors or the EU reporting obligations ensure this, but increasingly also the customers, employees, and talents. Sustainability has long since arrived in everyday working life and has transformed from a motivator to a hygiene factor.

The greenwashing trap

Probably hardly any brand manager has not dealt with which aspects of their own brand are or can be made sustainable in recent years. Most brands try to position themselves positively sustainable in the market – be it ecologically, socially, or economically. But only a few manage to actually differentiate themselves from the competition with it.

Through an automated analysis of communicative positioning using the K’UP Brand Language Model of 387 global brands, we were able to show that a large part of all brands position themselves on the same topics. The analysis shows which topics are communicatively played by the brands. It is easy to see that ecological sustainability, and especially climate and renewable energies, as well as biodiversity, dominate the brands' world of topics.

Most of the brands thus rely on the same topics, which is communicatively of no use. Worse still - some companies slide into greenwashing with their statements and risk financial damage. Whether through puffed-up packaging or false claims.

The green claims rules

The upcoming Green Claims Directive from the EU once again changes the rules of the game and makes a targeted alignment with sustainable brand positioning indispensable. Greenwashing will no longer have any place. In the future, those who continue to use flowery names to give consumers a false, good feeling will maximize their legal costs. Companies will face increasingly strict rules in the future, although the exact implementation and execution have not yet been fixed. This will lead to the brand management having to constantly readjust its own communication in the future. This means statements like “climate-neutral” (e.g., Babydream - diapers) or “100% green” are defined too imprecisely.

For consumers, it is not clear what exactly “green” means or whether “climate-neutral” products were only compensated instead of reduced. The use of seals will also be more strictly regulated so that consumers can rely on the truthfulness (e.g., organic seals on eggs – often still mass animal farming). If studies or comparisons are carried out, the company must precisely specify the basis on which the investigation is conducted. Another example is actions that are supposed to promote sustainability but actually only increase net profit and make hardly any ecological contribution will be regulated (Aldi - plastic bags for 1ct). All of this is intended to ensure that companies that act honestly sustainable have a competitive advantage and that consumers are not misled and have the greatest possible influence on ecological change.

No wonder that greenhushing is spreading and prompting companies to no longer talk about their sustainable activities at all. Both developments are cause for concern because there is a lack of positive progress attitudes and role models that would be able to change an industry.

Away from emotionality. Act decisively.

There is no way back. The topic of sustainable brand positioning will continue to occupy brand management in the coming years and must be approached clearly and holistically. It's not bad if your colleagues are still working on the materiality analysis or carbon balance. Look in your strategic planning or innovation roadmap to see when your company wants to tackle what specifically on sustainability. Then eliminate all vague emotions and terms from your marketing.

Customers want clear facts. Arrange your goals in terms of content and time before you start and put them in a rational ratio to your positioning. In this way, you can tick off your proof points like in a check box in the future, and your narrative never runs into emptiness. Now simply report on what you are actually doing in terms of sustainability. Start small, but stick to concrete, provable facts. Tell relatable and authentic stories about your goals, successes, and setbacks. BASF has been praised from the start for its way of transparently showing its own challenges and the path taken. And Tony’s Chocolate openly talks about the fact that despite intensive efforts for years, it cannot completely exclude child labor.

New clarity in times of change

What ultimately pays off, as always, is a clear attitude and honesty. It encourages others to get started and convinces your employees and customers.