From the Orient Magazine: Why marketing must lead the new wave of corporate sustainable transformation
This article by Trezelene Chan, Head Sustainability Practice APAC, Kantar was first published in the Orient Magazine, May 2023
The newly identified organisational intention-action gap is as big a challenge as the consumer intention-action gap to achieve 2030 Sustainable Development Goals (SDGs.) Radically reimagining the role of marketing to make sustainable transformation its organising principle could help achieve 40-70% reductions in greenhouse gasses.
Marketing must be radically reimagined to achieve 2030 Sustainable Development Goals and marketers play an important role in achieving corporate sustainability ambitions.
With the exponential growth of Asian economies, spending power is moving East with the region shaping global consumption trends. This gives Asian consumers and companies a new and unique responsibility, especially as the region is expected to bear the brunt of climate-related catastrophes.
Consumer behaviour urgently needs to shift to more sustainable habits and lifestyles. According to Kantar’s latest Global Issues Barometer, climate issues are a key concern with nearly 60% of consumers globally saying they experience eco-anxiety which is driving increased consciousness and desire for action. In tandem, system-level changes are needed to reach global sustainability targets and ensure the planet’s future. There is no doubt that businesses, brands and their agency partners are at a nexus of need and opportunity. As the bridge between brands and consumers, marketers have a unique opportunity, and therefore the responsibility, to be generational agents of change influencing consumer behaviour, as well as driving customer-informed innovation.
Marketers are failing, however, to grasp the opportunity. Dentsu and Kantar’s inaugural study of over 70 brand marketers in 12 markets across Asia-Pacific found that only one in three (34%) marketing and insights teams are ‘executing against their sustainability plans and measuring progress’. This compares unfavourably to 46% in supply chain, and 51% in corporate strategy. The new study identified two significant intention-action gaps, the consumer intention-action gap and the organisational intention-action gap, where marketers’ challenges are rooted.
In order to achieve deep, needle-moving advancement in sustainability, the study found marketing functions need a philosophical revamp: to be given a mandate to drive innovation beyond short-term sales KPIs, to create growth that is good for society and the planet as well as business. Corporate sustainability transformation and sustainable consumption need to become the organising principle around which marketing functions. The study predicts that by making this radical change, brands will be able to drive the behaviour and lifestyle shifts required to achieve the 40% - 70% reductions in greenhouse gas emissions that the sixth IPCC assessment report estimates as achievable.
It’s time to reframe the role and influence of marketing in your sustainability strategy
Even for the most eco-conscious of shoppers, when it comes to weighing up various reasons to buy, sustainability loses more often than it wins. This tension is, perhaps, most strongly felt when we are confronted with the ‘sustainability premium’ – where the product alternative that is better for the environment or society comes at a higher price point. Armed with creativity and enabled by technology, marketers have the power to influence sustainable consumption and act as change agents – driving awareness, educating consumers and greening behaviour. To do this effectively, they must be laser focused not only on activating the benefits of their sustainable products – the fuels, but on eliminating the frictions that discourage purchase. And with purchase journeys being anything but linear, marketers need to be vigilant about incentivising the “right choice” at every stage.
Behavioural Science is an especially powerful tool for moving consumer intention into action. These techniques can precisely target barriers that stand in the way of sustainable consumption and gently nudge consumers in the desired direction. The key to success is applying these techniques with nuanced understanding of the complex set of socio-cultural and infrastructural factors that influence consumers individual choices and behaviour. And with our current ability to target audiences with precision, collect signals and sequence messaging, we can now test behavioural science-based techniques at scale.
Closing the consumer intention-action gap
We already know that the consumer intention-action gap is a problem for marketers, with 56% identifying it as a major challenge. Only 17% of Asian consumers actively change their behaviour to be more sustainable, despite 98% of Asians saying they will. The study reveals, however, that the organisational intention-action gap is an equally important challenge to be addressed. Although 73% of marketers believe sustainability is important for business continuity and value growth, the study uncovered tactical and fundamental barriers that hinder marketers from taking on meaningful sustainable leadership. These include focus on short-term sales growth targets above all other KPIs, lack of clarity within the marketing function around metrics of success in relation to sustainability goals, and lack of adequate resources or capability building for sustainability within the marketing function. Innovation, collaboration and ownership across the different business functions against a clear set of sustainability goals will be required. Sustainability initiatives by the brand need to address consumers’ and the planet’s needs holistically and simultaneously. This means a whole new mindset for marketers and their corporate leaders.
About Kantar
Kantar is the world’s leading marketing data and analytics company. We have a complete, unique and rounded understanding of how people think, feel and act; globally and locally in over 90 markets. By combining the deep expertise of our people, our data resources and benchmarks and our innovative analytics and technology, we help our clients understand people and inspire growth.
Our Sustainable Transformation Practice works at the intersection of consumers, brands and environmental & social sustainability. Our practice works with brands to drive meaningful change and unlock the value-action gap. Find out more: kantar.com/expertise/sustainability