Sustainability is probably one of the most popular buzzwords these last few years. Companies are becoming more environmentally responsible. They are turning toward de-carbonization technologies, finding new ways to use less fuel, and a less freshwater intake.

Such environmental practices are bound to play a great role in future success.

Consumer products companies need to recognize how climate change is about to affect their products and production.

Many CP companies are paying attention to climate change due to growing consumer awareness and related purchasing priorities, stakeholder and reporting expectations, and increasing supply chain cost and disruption.(1)

Besides that, CEOs from Western Europe and the Asia-Pacific region are the furthest ahead when it comes to assessing the risks of these climate change initiatives. This is, however, not such a surprising fact. Governments that have committed to net-zero emissions by 2050 are located in these parts of the world.

More Experiences, Less Products

“How do you create growth without growth, that’s the real question. [To accomplish this,] people need to buy less, but at higher prices. How do you achieve that? I think by making them enjoy the actual experience of buying something. The experience can be enhanced through luxury or storytelling, but the key is that it doesn’t necessarily need to lead to more waste.”(2)

Arthur Huang, CEO of upcycling startup Miniwiz, believes that experiences are what buyers are chasing more and more. Therefore, that is something companies need to tap into. 

Will experiences actually lead to less waste and prove to be more sustainable? 

This idea seems to have potential. People are buying products more connected to their perceived lifestyles. They don’t want just products from companies anymore. Buyers want to feel like a part of it, to be in the “inner circle”. Customers want their buying experience to be more than just a simple transaction of goods. 

Companies Going “Green”

There are quite a few notable examples of companies that set their goals towards reaching sustainability inside of their industry. 

Sony, one of the biggest companies in Japan and worldwide, came up top of The Wall Street Journal’s list that compiled 100 most sustainably managed companies in the world. 

Right behind them is Philips, a medical equipment company from the Netherlands. Third place belongs to Cisco Systems, a US hardware company, followed by Merck KGaA, German biotechnology & pharmaceuticals company.

Fifth and sixth places belong to Spanish company Iberdrola, who manufactures electric utilities & power generators, and LG Electronics, a well-known South Korean hardware company.

Sustainability the Future of Business

Buyers are getting more educated. Further more, they are shaping the demand. As a result, companies will need to follow in their footsteps. Turning towards more sustainable production and sustainable products is, therefore, a must.

Whether they will achieve this by focusing more on building experiences around their brand, cutting down the carbon emissions, or producing sustainable products, that is up to businesses to decide as part of mid- and long-term strategies in order to stay competitive in the fast evolving markets of the future.

In conclusion, sustainability is the much necessary future path of business. 

(1) Source: Adapting to Climate Change: A Guide for the Consumer Products Industry, BSR.org

(2) Source: Strategy + business