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Research Update: New Zealanders want brands to 'talk' sustainability
A new research report, In Good Company, commissioned by the Sustainable Business Council (SBC), Porter Novelli and Perceptive, reveals how New Zealanders are assessing the sustainability of brands. Kathy Catton takes a look at what business leaders and HR professionals can learn from this study.
Just under half of New Zealanders say they care about sustainability when choosing a brand or product to purchase. And one in five says choosing a brand that either operates in a sustainable manner or helps them live a lower-impact life is the most important factor in their purchasing decision. This is a powerful message: people are using their consumer power to demonstrate their commitment to sustainability. If we think about our role as HR professionals and the need to align ourselves with our business leaders, this prompts various questions. What does our organisation’s brand say to our customers? Are we okay with what our employer is doing with regard to sustainability? How can our employees influence our organisation’s brand?
These are all pertinent questions to consider. As HR professionals, we know about employer branding, that is, an employer’s reputation as a place to work, but it now appears there is an opportunity for our employees to influence that general corporate brand reputation. After all, the bigger picture is that we are all living in the same community, the same country, the same planet. “People are our most important asset”, the old adage goes, so can we work together for the longevity of our teams, our organisation’s brand and our world?
And the evidence is clear. According to the In Good Company report, published in November 2019, New Zealanders believe electricity retailers and supermarkets are doing the most to be more sustainable. However, they want brands in all industries to be more open and upfront about sustainability and actively communicate it. More than 2,000 New Zealanders took part in the study, which looked at eight industry sectors, including: automobile, broadband and mobile, fashion/apparel, financial institutions, electricity, fuel and large retailers, as well as supermarkets.
With sustainability a concern for 87 per cent of New Zealanders, and 18 per cent of those surveyed unable to identify a true leading example in the area of sustainability, Mike Burrell, Executive Director of the SBC, says this is our sustainability moment. New Zealand businesses have the perfect opportunity to step up to the challenge and show leadership.
“Businesses are increasingly embedding sustainability into their strategies and business practice. However, this is just the beginning. At SBC we are supporting and encouraging businesses to become sustainability exemplars both here and on the international stage.”
James Walker, Executive Director for Sustainability at Porter Novelli, says, “Customers are increasingly becoming more likely to research the sustainability practices of brands, and they are demanding more and more information. Our research shows that 71 per cent of New Zealanders are actively investigating this before making a product purchase, and that’s a sign that businesses need to step up.”
What is it that consumers are wanting? Respondents said that they want brands to be more honest and transparent, as well as promoting the sustainable activity that is being undertaken. “If customers don’t know what businesses are doing to become more sustainable, how can they choose them for it?,” Walker continues.
The sustainable manner of brands now features just behind quality and price, but ranks higher than customer service and recommendations from family and friends.
“This is something which brands should be taking note of across the board,” says Oliver Allen, General Manager at Perceptive.
Yet again, it appears that communication is critical. It’s about talking with everyone in the workplace, not just the brand and marketing teams but also those on the frontline who are using the plastic packaging in the warehouse, or the truck drivers who have been researching electric vehicles in their free time. HR practitioners are renowned for being enablers: good at getting staff involved, finding the champions of change, identifying leaders who can challenge the Board on their lack of social initiatives or their substandard environmental practices.
Another tool we have as HR practitioners is our knowledge to tie in sustainability to our company values. For example, wanting to make a difference, honesty and integrity, customer commitment – these values all have links to sustainability.
Meridian and Countdown were the top two brands perceived to be doing the most in terms of sustainability practices, but most see reducing plastic as the primary sustainability practice. And we all know, sustainability is not just about banning plastic bags. So, let’s consider both what we are doing to operate more sustainably and how customers are perceiving this. How are we encouraging our staff to get to and from work? What are we doing with our staffroom rubbish? How are we caring about the health and wellbeing of our teams?
SBC has developed a Good Life 2.0 playbook, which helps New Zealand businesses inspire their customers to live a life that is more sustainable and rewarding. What can we do internally to ensure our staff are living a life that is more sustainable and rewarding? Wellbeing programmes may be the start, but it’s certainly worth further exploration.
And, with more than four out of five New Zealanders saying that everyone has a responsibility to do more around living sustainably, businesses can be confident that people will look for, and notice, their sustainability activity.
The Sustainable Business Council (SBC) has its roots in the New Zealand Business Council for Sustainable Development, formed in 1999. SBC is a membership organisation, with a longterm aim of making sustainability mainstream within New Zealand businesses. It does this by inspiring businesses to create communities of positive change, supporting members to go further and celebrating their leadership and success. SBC is part of the BusinessNZ family and is the New Zealand Global Network partner of the World Business Council for Sustainable Development. As at November 2019, SBC had 113 members, representing at least 27 per cent of private sector gross domestic product and 137,388 full-time jobs.
Porter Novelli New Zealand is an awardwinning public relations consultancy, offering communications, marketing, strategy and sustainability services. Porter Novelli works with a range of clients, from global corporations to government agencies, small businesses and not-for-profits.
Perceptive is Australasia’s leading technologybased customer insights agency. Perceptive provides research, insights and data-driven marketing programmes to a variety of organisations across the Asia–Pacific region, North America, United Kingdom, United Arab Emirates and India.
