How to Building Brand Loyalty and Long-Term Value
Integrating strong ESG practices into your business is a powerful differentiator to build brand loyalty, long-term value and your impact on society.
Environmental – This focuses on carbon emissions, waste reduction and preserving natural resources.
Social – This involves supporting human rights, empowering employees and promoting community outreach. It also includes embracing diverse, equitable and inclusive (DEIB) initiatives.
1. Invest in Resilience,Building Brand Loyalty
The economic pillar of sustainability is where many companies feel they are on firmer ground. It is about profit and avoiding actions that jeopardize the sustainability of the company in the long run.
The IMF recommends disaster-prone countries invest in resilience building as a cost-effective approach to cutting losses from natural disasters, and says it may reduce the need for postdisaster relief aid by half. Its benefits include improved economic performance and continuity of public services.
Often, different systems of physical infrastructure are stove-piped from each other, for example, transportation systems and energy supply networks. Increasing the connectivity of these systems can help ensure they operate more efficiently during disasters and are better prepared to withstand them. It can also help to reduce the costs of maintaining and repairing these systems after disasters.
2. Educate Your Employees
Incorporating sustainability practices into business can be time-consuming and costly, but the return on investment is significant. Increased employee productivity, morale, and motivation, increased investment opportunities, and a stronger brand image all contribute to long-term success for businesses that incorporate sustainable practices into their strategy.
To get employees on board, encourage them to become advocates for the company’s sustainability goals. Educate them on the positive impact that small actions can have. Make sure to provide them with measurable and attainable goals and metrics that can be used to determine the effectiveness of your sustainability plan.
Provide tips for reducing energy consumption at work, such as putting reminders near light switches to turn them off and acquiring multiple recycling bins in the office. This will keep sustainability top of mind and show the company cares about its employees.
3. Reduce Waste
Waste reduction is an essential element of sustainable growth practices. Humans generate 4.3 pounds of trash every day, and most of that ends up in landfills. That waste costs money to manage, contaminates soil and water, and releases toxic chemicals into the air.
Reducing waste requires an investment in reusable materials and a commitment to eliminating disposable products. This includes reusing water bottles, coffee mugs, and plates in employee kitchens, as well as going paperless for bills and junk mail. It also means donating used goods to local charities, and composting food scraps and yard debris to create organic fertilizer for the garden.
Successful sustainable growth strategies balance market imperatives with social responsibilities and environmental impact. Businesses that prioritize sustainability are rewarded with improved financial performance and a distinct competitive advantage.
4. Develop Sustainable Supply Chains
A growing number of multinational corporations have pledged to procure only from suppliers that meet their environmental and social standards. However, many of these companies do not know the full extent of their supply chain. This lack of visibility into the activities of tier-one suppliers can expose companies to unforeseen risk.
Ensure your business is resilient to natural disasters and climate change by integrating sustainability into your supply chain planning. For example, by analyzing order data you can determine the optimal location for inventory storage to reduce transportation costs and fuel consumption.
Creating measurable goals for your company’s sustainable initiatives can help build momentum and buy-in. This will demonstrate the value of sustainable practices to customers, investors and employees. Moreover, it can help you achieve ISO 14001 certification which is an effective way to promote your green credentials.
5. Invest in Technology
In a world ravaged by the pandemic, climate change and hyper-partisanship, customers look for brands that care about more than just profits. Developing and telling your ESG story with transparency and simplicity is a powerful differentiator that builds trust with consumers.
Invest in technology that will help you achieve sustainable growth, and consider alternative energy technologies. This will not only help to reduce your emissions, but can also save you money in the long run.
Invest in technology with a clear line-of-sight to your most important business outcomes. This approach will ensure that you don’t disproportionally drain capital, increase dependency or expose yourself to excessive risk. This will allow you to move towards sustainability without compromising on your growth. It also gives you the flexibility to move quickly when needed.