As experts discuss the importance of building sustainable brands, there is a consensus that sustainability should be a centerpiece of corporate branding. While there are established ESG practices and trends in place, there is still a need to give sustainability the focus and attention it deserves. At a panel at Davos earlier this year, experts discussed the importance of enhancing sustainability for company practices with the tagline ‘sustainability first, marketing second’. They highlighted the importance of transparency for consumers and employees and the need to involve the organization in the sustainability journey.
The discussion at the panel also focused on the people side of sustainability, emphasizing the need to use the sustainability message as a way to attract better talent. Sustainability is no longer the responsibility of just the sustainability function but needs to be embedded in all aspects of the organization. CEOs play a crucial role as brand and reputation guardians by adopting sustainability practices in their leadership. The panelists also addressed the challenge of balancing short-term pressures with long-term interests and the importance of setting targets and anticipating challenges in the sustainability journey.
Regulation is a major issue for many firms and leadership teams, as sustainability becomes more of a regulatory requirement. There is a concern that sustainability may become too focused on compliance and risk, losing its emotional brand appeal. The panelists emphasized the need to keep sustainability embedded in the brand story while meeting regulatory requirements. They discussed the regulatory pressure on companies to raise standards and improve reporting, with larger companies having the resources to comply more easily.
The panelists also highlighted the catch-22 of sustainability in business, where companies risk losing market share and financial stability if they do not follow sustainability practices. This presents a challenge for brand managers who must balance sustainability with financial goals. They discussed the importance of walking a fine line between short-term pressures and long-term sustainability goals, emphasizing the need for transparency and long-term vision. CEOs face the challenge of balancing short-term actions with the company’s long-term interests and vision.
The panelists also delved into the carbon footprint of various sectors, noting the impact of the tech sector, aviation, AI, web3, and crypto on the environment. Companies like Patagonia and Tata in India were praised for their sustainability efforts, emphasizing the importance of setting targets and adapting to challenges in a rapidly changing world. The discussion underscored the need for companies to prioritize sustainability in their branding efforts and the importance of aligning internal and external stakeholders on the sustainability journey. Overall, the panel highlighted the complexities and challenges of building sustainable brands in today’s business landscape.
