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

14

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