Sustainability has evolved from a buzzword to a business imperative. But does it sell? In this thought leadership piece, George Wade, co-founder and chief commercial officer of Zevero, explores how food and beverage companies can turn sustainability into a powerful growth driver, while highlighting the challenges and opportunities that come with embracing this shift.
Sustainability is no longer a buzzword; it’s a seismic shift that has transformed how businesses operate, compete and connect with customers. Once an optional ‘feel-good’ initiative, sustainability has become a non-negotiable expectation. Yet, as companies pour resources into measuring emissions, embracing circularity, and aligning with climate goals, one critical question persists: Does sustainability actually sell?
The answer is both yes and no. Sustainability, in isolation, doesn’t automatically guarantee business success. But when it’s woven into the fabric of a company – driving innovation, enhancing transparency and building trust – it becomes a powerful driver of growth.
A shifting paradigm: From obligation to opportunity
For years, sustainability was framed as a moral imperative: a responsibility for companies to ‘do their part’ for the planet. Many businesses saw it as a compliance exercise, aimed at avoiding criticism or regulatory penalties.
Today, the narrative has evolved. Sustainability is no longer just about ‘doing good’; it’s about doing smart business. It’s a baseline expectation from consumers, investors, employees and regulators alike. Companies that fail to act risk being left behind – not only in reputation but in their ability to compete in a rapidly changing market.
The consumer connection
Consumers have become vocal advocates for sustainability, and they’re putting their money where their values are. A recent survey by PWC found that 80% of consumers are willing to pay more for sustainably produced or sourced goods. These aren’t just fleeting preferences; they’re shaping entire industries.
The food and beverage sector contributes over £110 billion to the economy annually, yet it’s also under immense pressure to reduce its environmental footprint.
But consumers don’t just want claims – they want proof. Transparency is the currency of trust. Brands that can openly provide their strategy and data on their environmental efforts are the ones that will earn loyalty compared to those who chose to ignore it.
Regulations are on the rise
While consumer demand is driving the sustainability agenda, governments and regulatory bodies are setting the pace. The introduction of stricter standards, like the EU’s Corporate Sustainability Reporting Directive, is forcing businesses to measure and disclose their environmental impact.
Regulation is also creating a ripple effect in supply chains. Retailers and corporate buyers are demanding detailed sustainability data from their suppliers. Failing to provide this data can mean missing out on major contracts. For businesses willing to embrace these changes, compliance isn’t just about meeting legal requirements – it’s a competitive edge.
Profitability and sustainability: The new equation
One of the most persistent myths about sustainability is that it’s a drain on resources. In reality, the opposite is often true. Companies that invest in sustainability are finding that it unlocks cost savings and opens new opportunities with possible revenue streams.
From energy-efficient production methods to reduced waste, sustainability initiatives frequently deliver financial returns. Sustainable products achieved a 5-year CAGR (compound annual growth rate) of 9.9%, compared to 6.4% for their less sustainable counterparts, proving that aligning environmental goals doesn’t just help the planet, it can boost the bottom line.
And it’s not just about money. A survey by Deloitte found that 69% of employees want their companies to invest in sustainability efforts. In today’s talent-driven economy, sustainability is becoming a factor of growing importance in attracting and retaining top talent.
Retailers and buyers are raising the bar
The influence of sustainability extends far beyond consumers. Large retailers and buyers are increasing the pressure on brands to adopt transparent and responsible practices. For companies, this is both a challenge and an opportunity. Meeting these expectations requires rethinking operations and gathering the right data. But for those that succeed, the rewards are significant: access to premium markets, stronger partnerships and enhanced credibility.
What’s the verdict?
So, does sustainability sell? The answer lies in how it’s approached. Companies that treat sustainability as a checkbox exercise will struggle to see meaningful returns from it. But those that integrate it into their core strategy will find that sustainability doesn’t just sell – it transforms.
It’s not about slapping a green label on a product or publishing a one-time impact report. Instead, sustainability sells when it’s deeply embedded into a company’s strategy – driving value across operations, consumer engagement and strong market positioning. As regulations tighten, technology advances and consumer expectations evolve, sustainability is no longer optional. It’s the lens through which businesses must operate to remain relevant and resilient.
In the end, sustainability is more than a trend. It’s a transformative lens that allows businesses to unlock growth, create long-term value and lead in an increasingly conscious world. That, undeniably, is something that sells.
Source: foodbev.com
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