Sustainability and ESG: what does Marketing have to do with it?

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In recent decades, sustainable initiatives have multiplied in a world with increasingly catastrophic predictions. Consumer awareness of environmental issues is on the rise – and companies are no exception. Ignoring actions that contribute to the future of the planet is not an option.

The demand for brand positioning is a reality, which is why the construction of social responsibility and sustainability practices is a reality that needs to be demonstrated daily. And that's where Marketing comes in !

In this article, you will discover:

What is ESG?
The future of sustainability in the corporate market
What is the consumer demand on the subject
How to combine Marketing and Sustainability in practice
Happy reading!

What is ESG?
Here, it is worth starting by explaining a concept that has gained strength in c level executive years: Environmental, Social and Corporate Governance. The expression comes from the English Environmental, Social and Governance, hence the acronym ESG.

This is a set of practices and criteria that assess a company's level of social and environmental responsibility and corporate governance. These criteria have become increasingly important to investors, consumers and other stakeholders, as they reflect a company's commitment to social responsibility and sustainability – important new corporate values .

Currently, companies that want to remain competitive in the market need to integrate ESG practices to enhance their brand, mitigate risks and expand their reach.

The future of sustainability in the corporate market
According to a study carried out by KPMG , 86% of the 100 companies with the highest revenues in Brazil are already reporting on ESG practices.

Reasons for ESG integration include:

strengthening relationships with stakeholders;
sustainable use of natural resources;
improvement in corporate risk management;
increased competitiveness;
compliance with legislation.
In addition, companies that adopt sustainable practices increase customer attraction and retention, see an improvement in their reputation (being seen as more trustworthy and responsible) and benefit from cost reductions by making smart use of energy, water and other resources.

Consumer demand
In addition to the reasons above, there is another essential reason to take practical sustainable actions in your company: to keep up with changing customer behavior. According to a Nielsen survey , 75% of consumers would change their consumption habits to reduce their environmental impact.

But be careful: just talking isn't enough! According to a survey conducted by Label Insight , a Nielsen company that provides product data, 94% of consumers will be loyal to companies that demonstrate transparency in their actions. Therefore, in addition to defending sustainable practices, it is important to demonstrate to the consumer that your company does what it preaches.

In other words, in addition to sustainability, the modern consumer also values ​​authenticity, consistency, transparency and genuine values ​​to which they can dedicate their loyalty and trust.

How to combine Marketing and Sustainability in practice
ESG Marketing can help companies make the most of the visibility of their actions, with personalized storytelling and, of course, good communication planning .

Through strategies aligned with business objectives and with a specialized marketing team, companies can:

Communicate your ESG values ​​and practices to consumers: ESG marketing is a powerful tool for engaging consumers. Campaigns that highlight a company’s efforts to create a positive impact on the world often resonate positively and build brand loyalty.