Consumer trust in a brand is one of the most significant factors determining business success. Today, as climate change, environmental pollution, and resource depletion raise growing concern in society, sustainable production methods have become an integral part of a brand, which can also become a competitive advantage. However, sometimes some manufacturers manipulate the concept of sustainability, while others are unfairly accused of it.
So, what is important in communication to ensure that the message about sustainability does not turn into greenwashing and actually reaches the consumer in a language they understand? And why is it beneficial for manufacturers to switch to more sustainable production methods?
Sustainability – an Advantage
Gustė Staniulytė, an alumna of the Faculty of Creative Industries at Vilnius Gediminas Technical University (VILNIUS TECH), researched that consumers are increasingly paying attention to whether a product is made sustainably, and this can influence their purchasing decisions. However, recently there has been an increase in public skepticism about corporate social responsibility and transparency, with many viewing their initiatives as greenwashing, making it more difficult for businesses to effectively convey sustainability messages.
"A study conducted in 2023 by the international management consulting firm McKinsey and Company revealed that products accompanied by sustainability communication grow about 36% faster than those that do not feature sustainability-related messages. This shows that consumers' desire to choose what they perceive as ‘sustainable’ is increasing. To earn consumer trust, sustainability communication must be crafted in a way that does not allow them to doubt the company’s integrity. Organizations today are closely monitored by consumers, and even the slightest communication mistake can lead to a loss of trust, directly affecting business success.
Additionally, sustainability initiatives are becoming an important competitive advantage in the market, improving brand reputation, and attracting greater interest from talent who wish to join them. Companies that show good results in sustainability, such as successfully reducing CO2 emissions, can attract more investments.
For these reasons, business organizations are increasingly trying to implement sustainability initiatives and present them to their consumers, but communication of sustainability initiatives based on technological innovations faces challenges," explains an Innovation and Technology Communication Specialist.
Transparency – the Foundation of Trust
Since the topic of sustainability is often complex, it requires clear and simple language to allow consumers to properly interpret and understand it. According to the VILNIUS TECH alumna, this is especially important when discussing technological sustainability initiatives, which often seem too complicated for the consumer and, as a result, do not reach the audience or fail to deliver the desired outcome. This is confirmed by research conducted by Professor Klaus G. Grunert at Aarhus University in Germany, which showed that an overload of information on labels and communication campaigns makes it difficult for consumers to process and understand it. When there is too much information, consumers may completely disengage and not want to delve into it.
"To solve this problem, it is recommended to present information in stages and not forget gradual consumer education about sustainability. When communicating about sustainability, companies often face accusations of greenwashing, so it is important to ensure transparency in communication by clearly presenting the stages of technological development and emphasizing that the impact of the technologies being developed today will be visible in the future," says G. Staniulytė.
The communication specialist explains that regulated labeling and certifications can help build transparency and consumer trust. However, some claims used on sustainable products are not regulated, creating a risk of being accused of greenwashing.
"One such example is the PlantBottle plastic bottle created by Coca-Cola, part of which was made from plant-based materials. The communication emphasized that this innovation was a way to reduce dependence on petroleum products and contribute to sustainability.
However, this innovation was criticized for potential greenwashing because the PlantBottle is still plastic, and even though some of its components are plant-based, these bottles have the same environmental impact as traditional plastic bottles because they cannot be properly recycled. This means that this innovation does not address pollution and plastic waste problems. Coca-Cola used misleading claims and symbols stating that the PlantBottle is 100% recyclable, but in many countries, recycling systems are still unable to handle this type of plastic," explains the Innovation and Technology Communication Specialist.
Consumers Want to Understand Their Contribution
Another important aspect that can be leveraged in communication is that consumers are increasingly emphasizing their desire to understand their contribution to sustainability when purchasing eco-friendly products. As a result, new information tools are emerging in the market, such as product labeling with CO2 footprints. This trend to increase transparency could encourage manufacturers and suppliers to invest in sustainability initiatives to maintain competitiveness and meet consumer expectations. In this way, communication can become a tool to demonstrate companies' efforts to produce sustainably while providing consumers with clear information about the environmental impact of their decisions.
"In my survey, 75% of respondents stated that the most important communication messages to them are updates on the implementation of sustainability goals and progress. This is more important to them than the presentation of the sustainability goals themselves.
It was also observed that even if a company announces investments in renewable energy, but actually allocates only a small part of its budget to it, the public may perceive it as a strategic attempt to improve the image rather than a sincere effort to contribute to environmental protection. The study also showed that consumers are less suspicious of greenwashing when companies openly acknowledge economic motivations in addition to environmental goals. In this case, transparency becomes an advantage," says Gustė Staniulytė.
Another aspect that manufacturers can use is sustainability reports – they are considered one of the most reliable tools for communicating about sustainability. Starting from July 1, 2024, legislation in Lithuania will implement the Directive on the Disclosure of Non-Financial Information by Companies (NFRD), requiring certain companies to disclose sustainability information in annual reports and ensure the reliability of their data. Therefore, this mandatory information can also be used as a promising communication content for consumers, highlighting the company’s responsible approach to the environment and society. In other words, sustainability information can be turned into sustainability communication.
The text was prepared by Milda Mockūnaitė-Vitkienė, Project Manager for Internal Communication at VILNIUS TECH Public Communication Directorate.
