creating brand and business value through sustainability

CIM - Lancaster

Creating brand and business value through sustainability

Paula Oliveira [email protected]

@PaulaOliveiraBV

09• 11•

16

Sustainability

ESG / PPP

Shared value

CSR

Corporate citizenship

Purpose

(…)

3

Responsibility

Legal

Right

Moral / Fair

4

Responsibilities changed

Waste Management Supply Chain Disposal

5

Trends

Circular

economyGovernment

Employees

Suppliers

Shareholders

Community

Customers

Shared

value

Why should

companies care?

7

Fatigue?

1. New norm

9

Some big brands have been leading the debate in their industries

10

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.

2. Creates value

13

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 likelihood to

purchase from companies that

support solutions to specific

social issues.

Nielsen, 2014

75% actively research the

behaviour and policies of 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 keento 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

Percent willing to pay extra for products and services from companies committed to positive social and environmental impact

Nielsen, 2014

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Shareholders care too

‘High sustainability companies’

significantly outperform their counterparts

over the long-term, both in terms of stock

markets as 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

companyHavas 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%

3. Legacy

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Resource consumption

21

Social and environmental impact

Different

approaches

23

CAMPAIGNS:

Demonstrating capability to bring solutions to customers and society

24

Opportunity

vs.

25

INNOVATION & COLLABORATION

Schneider Electric, Microsoft Azure, UK Dept Int.

Development (DFID):

The energy is produced through solar-powered batteries

connected to Microsoft Azure IoT technology, which then

converts the battery power into portable electricity.

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Coca-Cola

BUSINESS SURVIVAL

Combined with community

engagement

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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

recycling with a 97%

success rate so that

different materials such

as glass, copper,

aluminium etc. are not

mixed and can be sold to

recycling centres 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.

Where to start?

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New norm

Creates value

Legacy

Diverse approaches

32

product strategy

services strategy

operational systems & processes

values & behaviours

supply chain mgt

insight & measurement

workplace experience

internal comms &

engagement

leaders& mgmt

org structure&

design

marketingcommunications

strategy

Brandexperience &

channel design

customer service& loyalty

Businessstrategy

employerbrand

impact

partnerships & alliances

33

Corporate responsibility and one unified strategy

Business Brand

SustainabilityA business that will sustain in the future

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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

CIM - Lancaster

Creating brand and business value through sustainability

Paula Oliveira [email protected]

@PaulaOliveiraBV

09• 11•

16