From green talk to green walk: leading a sustainable transformation

‍It seems that almost every major company has a sustainability strategy these days. From energy companies, to tech platforms, logistics providers and food conglomerates — everyone is talking about their plan for a sustainable future. To some extent, sustainability strategies become like the background music of the modern corporate world: Everyone knows they’re there, but is anyone truly listening? So how can businesses turn all their good intentions, yearly reports and targets into a true transformation? That’s what I will be diving into in this blog.

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Surveys show that consumers care about sustainability and are willing to pay more for products that are sustainably produced. It can be a key factor for candidates when choosing an employer too. An IBM study of nine countries globally found that 71% of respondents find environmentally friendly companies more attractive as employers, with almost half saying they would accept a lower salary to work at such a company. And let’s not forget the money men: investors and VC funds are constantly on the hunt for firms that can gain a competitive advantage by adapting faster to the climate transition. A McKinsey survey last year revealed that 85% of Chief Investment Officers (CIOs) regard ESG as an important factor in their investment decisions. So regardless of whether your focus is on your public image, employer brand or investor relations, sustainability concerns are shaping the opinions and choices of your target audience. 

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Source: IBM

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Against this backdrop, it’s easy to see why sustainability has become firmly entrenched as a theme in boardrooms across the world. Tech giants like Apple and Microsoft have committed to becoming carbon neutral by 2030, while companies like Unilever and Nestle have made sustainability a central part of their vision. But while some brands have truly cultivated a reputation as climate champions, for many others, these initiatives amount to little more than corporate window dressing. So what separates the businesses that feel authentically committed to climate from the also-rans? I believe that purpose and culture make the difference in many cases.

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Genuine green: Building trust in a skeptical world

People genuinely care about the environment, but they also hate the feeling of being deceived. The more you know and care about a topic, the more sensitive you will be to dubious claims. Europeans, in particular, have a strong aversion to greenwashing, with a recent Brand Finance survey showing that EU consumers are more skeptical about corporate sustainability claims than in any other region. This makes sense: sustainability has long been a part of the public discourse in Europe so people are more aware of the pitfalls and intricacies of environmental action. It also indicates that consumers in other regions are likely to exhibit similar skepticism as they become more informed.

A clear trend is emerging where people’s concerns about the environment are growing in tandem with concerns about greenwashing. As a result, building a sustainable brand hinges on authenticity. It’s not just about meeting regulatory requirements, setting targets, and publishing reports. It’s about showing genuine commitment, starting with people.

Source: Brand Finance

Leading with why: the secret to true loyalty

Have you ever wondered why people feel a strong connection to certain companies or brands? At first glance, it might seem like product quality, competitive pricing, or clever marketing strategies are the key factors. While these elements certainly play a role, there’s often a deeper, more compelling reason behind this loyalty.

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In many cases, the real reason people identify with a company isn’t just about what a company does, but why they do it. This insight forms the foundation of purpose-driven leadership. It’s a leadership style that goes beyond the surface-level attributes of a business and taps into the core beliefs and values that drive it. A purpose-driven leader aims to align a company’s mission with its actions, creating a sense of meaning and direction that resonates with both employees and customers. Such leaders inspire their team by clearly communicating their “Why”—the fundamental purpose that motivates their every decision and action. This approach not only fosters a loyal customer base but also cultivates a motivated and engaged workforce.

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Under Steve Jobs, for example, Apple’s purpose was to delight customers with products that were beautifully designed and easy to use. This commitment was evident in every interview Jobs gave, every product launch he led, and every strategic decision he made. His vision and passion for creating exceptional user experiences were palpable, driving Apple to innovate continuously. The approach inspired incredible loyalty among customers, some of whom would queue overnight to purchase products first from their flagship stores. Meanwhile the company regularly featured in lists of most desirable employers, and experienced sustained stock market growth. 

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Beyond metrics: finding true purpose

To find your purpose, you need to think beyond technology and processes and delve into what truly motivates your clients and employees. Sustainability reports often contain goals and KPIs. While this is a good start, your purpose should transcend static metrics and targets to paint a broader picture of a better world. 

Take Volvo, for example. The company has committed to electrifying its car range, which is a bold and practical ambition. However, its purpose goes beyond this goal: Volvo aims to provide people “with the freedom to move in a personal, sustainable, and safe way.” The brand has always been known for its strong reputation for safety, but now it is expanding this concept to include not just safe driving, but a safer world overall. At a time when many people experience climate anxiety and fear that sustainability might limit their choices, Volvo emphasizes freedom, individuality, and safety.

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Standing out in sustainability

Some brands are direct and forthright about their purpose, communicating it almost like a charity or NGO. The outdoor brand Patagonia, for example, commits to “cause no unnecessary harm, and use business to inspire and implement solutions to the environmental crisis”. But while the direct and sincere approach may seem like the most obvious way to communicate a purpose, it risks becoming a bit cliché as more companies jump on the bandwagon, making it increasingly difficult to differentiate.   

The alternative milk producer Oatly showed over recent years that you don’t necessarily need to be overly earnest and serious to build a purpose-driven company with a strong brand. Through a disruptive visual identity, playful tone of voice, and bold, humorous advertising campaigns, Oatly broadened the reach of oat-based milk, a product that was previously only consumed by people who were lactose intolerant or vegan. Similarly, while the plant-based burger manufacturer Impossible Foods has the laudable purpose of making “our global food system more sustainable”, it opts for a whimsical copywriting style.

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Attracting talent through purpose

Purpose is not just about attracting customers, it’s about attracting talent too. When people truly believe in your purpose, it can create a bond of commitment by filling your employees with a sense of belonging, pride and purpose. If we remember back to our school days — it’s a bit like the difference between the kids who were told by the teacher to run around a bit during PE class, compared to the young athletes who were fighting for medals for their team. Technically, they were both playing sport — but with a totally different sense of ownership and commitment.

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Purpose: more than a PR pitch

Remember that purpose cannot be faked — it requires your entire organization, team, or group to be driven by a common challenge or deeper calling to change the world for the better. The best ad agencies and most talented PR professionals in the world won’t be able to build this for you. You have to mean it. And in the modern glasshouse of social media, it will quickly become apparent if your actions do not live up to your statements.

Here’s the nub: True transformation demands a holistic change. It’s not just about setting goals or making promises; it’s about embedding purpose into the very fabric of your organization. To use an analogy from the natural world: transformation means metamorphosis. A caterpillar with wings is not a butterfly.