As we reflect on the journey toward sustainability, 2024 marked a pivotal year when the urgency of climate action became undeniable. The rollercoaster of greenwashing and greenhushing has revealed a stark truth: many companies have come to realize that their sustainability initiatives are lagging behind the pressing demands of our time.
While some organizations have attempted to quietly adjust their sustainability goals — over 30 financial institutions withdrawing from net-zero alliances and several large corporations scaling back their climate commitments — others view this as a crucial wake-up call. This shift underscores the importance of transparent communication; to effect meaningful change, companies must engage openly with their stakeholders.
Confronting the challenges of sustainability in business
For those willing to embrace the challenge, success hinges on confronting four inconvenient truths.
Consumers care about sustainability, but action is lacking
Environmental and social issues are at the forefront of public consciousness like never before. However, this awareness does not always translate into consumer behavior. Whether it’s opting for carbon offsets, choosing sustainable energy systems, or selecting eco-friendly products, the adoption rates for these sustainable solutions often remain disappointingly low, frequently below 5 percent.
This disconnect between concern and action may seem hypocritical, but it reflects the complexities of real-world decision-making. In the moment of choice, consumers are bombarded with distractions and may prioritize other factors over sustainability. When selecting a bank or product, they often rely on a narrow set of associations, leaving sustainability further down the list.
Engaging customers for a successful sustainability transition
Companies that have recognized the difficulty of inspiring customer engagement in sustainability often retreat, relegating these initiatives to internal efforts. However, this approach will not lead us to net zero. Transitioning to sustainable practices is costly, and to justify these investments, businesses need consumer support.
We’ve seen examples where consumer demand for sustainability has surged, such as with free-range eggs, fair-trade coffee, and cruelty-free cosmetics. When presented effectively, these concepts can quickly shift from niche to necessity.
Reframing customer decision to drive sustainability engagement
How can businesses make sustainability relevant at the moment of decision? The theory is straightforward, though implementation is challenging. It involves reframing customer decision- making through three steps:
- Flag a threat to shock people out of their default decision-making frame
- Propose a new frame frame which allows customers to easily avoid the threat
- Reinforce leadership with a tangible demonstration that puts you on the right side of the line
For example, Apple’s 1984 “Big Brother” campaign effectively shocked consumers into recognizing a threat, reframing the purchase of a computer as a choice between individual freedom and corporate control. Other brands, like Tesla and Airbnb, have similarly reframed their value propositions to align with consumer values.
Driving sustainability through radical innovation
While reframing sustainability may seem feasible across various industries, many companies hesitate to confront their roles in creating environmental issues. For instance, an airline aiming to influence customer decisions around sustainability must articulate the relevance of climate change to their operations. Simply stating that “New York is sinking” is insufficient; they must connect the dots by saying, “Every flight to New York contributes to its sinking.”
