Presentation given at a CIM event - Lancaster University.
Investing in sustainability/ESG makes business sense: it is becoming the new norm, creates value for business and can help to differentiate companies. Most importantly, it's is just the right thing to do - it's our legacy. This presentation shows some supporting evidence, different ways companies are approaching the task at hand and how to start approaching it.
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Whilst young brands are being
set up based on new values
A New Generation of Entrepreneurs
is Practicing a Business Model that
Places Equal Importance on Doing
Social Good as on Making Money.
Marketing 3.0 will be won by
Purpose-Driven, Social Brands.
The Rise of Social Entrepreneurship
Suggests a Possible Future for
Global Capitalism.
Merging The Profit
Motive and Moral Imperatives: The
Rise of Social Enterprise in the
United States.
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Leading to a new generation of
brands with purpose beyond profit
TOMS - ONE FOR ONE.
With every product you purchase,
TOMS will help a person in need
PATAGONIA.
Responsible consumption.
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How does it create value?
The business rational
Legislation Costs Demand
Risk of loosing
customers
Potential to
increase
demand
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Customers care…
especially the young
89% of millenials(age 21-34)
have a stronger likelihoodto
purchase from companies that
support solutions to specific
social issues.
Nielsen, 2014
75% actively research the
behaviour and policiesof the
brands they buy.
JWT Intelligence/Sonar,2015
66% of consumers around the
world say they prefer to buy
products and services from
companies that have
implemented programs to give
back to society.
Nielsen, 2014
51% of consumers want
to reward responsible companies
with their business.
Nielsen, 2014
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They are more keen
to pay a premium
2014
Percentage point
change from 2011
Global Average
Latin America
Middle East / Africa
North America
Europe
+10
+9
+13
+10
+7
+8
Source: Nielsen Global Survey of Corporate Social Responsibility. Q1 2014
Nielsen, 2014
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Shareholders
care too
‘High sustainability companies’
significantlyoutperform their counterparts
over the long-term, both in terms of stock
marketsas well as accounting
performance.
For example, investing $1 in the
beginning of 1993 in a portfolio of
‘sustainable firms’ would give you $22.6
by the end of 2010 based on market
prices versus $15.4 in what the authors
call ‘traditional firms’.
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Other studies support
these findings
An authentic and
well-communicated purpose
can contribute
up to
17%
of a company’s financial
performance*
Brands with a positive impact
on our quality
of life outperform the
stock market by
120%
AirBnB’s latest round
of funding values the
young tech business
at
$20bn
total*
on avergage*
Burson-Marsteller, a Young&Rubicam
company
Havas Media Group http://techcrunch.com/2015/02/27/
airbnb-2/
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Example of companies that implemented a
corporate vision around a social purpose
STOCK PRICE PERFORMANCE DURING 1ST YEAR OF TRANSFORMATION
Percent Change
First Year of
Transformation
+8%
+53%
+13%
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OVATION & COLLABORATION
neider Electric,Microsoft Azure, UK Dept Int.
elopment (DFID):
energy is produced through solar-powered batteries
nected to Microsoft Azure IoT technology, which then
verts the battery power into portable electricity.
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Cotton Palm Oil Coffee
COLLABORATION
Competitors united to solve
industry wide issues
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BRAND INSPIRATION
Apple’s LIAM:
dismantles iPhones and
separates all
components for
recyclingwith a 97%
success rate so that
different materials such
as glass, copper,
aluminium etc. are not
mixed and can be sold to
recyclingcentres rather
than dumped in landfills.
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BRAND AS THE BUSINESS
Fairphone: mobile that do not
contain conflict minerals, made of
high quality replaceable materials
and enforce labour conditions
across supply chain.
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1. Understanding your ecosystem
2. Identify what will guarantee the sustainability of the business
3. Collaborate for change, differentiate for impact
4. Make it a principle for all
5. Don’t forget the basics
Check points
35. CIM - Lancaster
Creating brand and business value
through sustainability
Paula Oliveira
paula@brandcap.com
@PaulaOliveiraBV
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