Do we care if businesses are sustainable?

We all know Apple has a beautifully positive brand image (and I’m loyal to the brand and the product, having worked at the Apple Store for a few years). I’ve also seen how much effort they put into promoting their recycling programs and environmental initiatives.

But here’s the thing: as great as the company makes it sound, Apple’s environmental footprint has been massive. In 2022 alone, Apple’s global carbon emissions reached around 18.6 million metric tons. They’ve made impressive strides though, like their commitment to being carbon neutral by 2030. To show they’re serious, they’re investing $4.7 billion in Green Bonds to help expand clean energy and reduce emissions globally.

It’s a powerful move, but it also reflects a bigger conversation happening across industries: sustainability isn’t just about saying the right things — it’s about doing the right things.

But this is not an article about Apple.

This brings me to the discussion I had recently, and what it sparked for today’s newsletter. Early this week, I had the chance to participate in a roundtable discussion about sustainability, hosted at LG2’s office by the Canadian Marketing Association.

For an hour, we discussed how brands should approach sustainability in a meaningful way and the obstacles they face in balancing good intentions with real impact.

The conversation brought home the idea that sustainability is not just about what you do, it’s about how you communicate it. This is from a marketing and branding perspective of course. But I also look at it as this: It isn’t just about what brands say they’re doing, it’s about what impact they’re actually making.

Greenwashing and green hushing: Walking a fine-line

We all know that brands need to avoid greenwashing. The fear of being called out is real, and that’s leading some companies to under-communicate their sustainability efforts—what’s now being referred to as “green hushing.” Finding the balance between saying too much and not enough is tough, but it’s crucial. Third-party accreditation is one way to provide credibility, but even then, the conversation highlighted that authenticity is key.

More than 2/3 of Canadian consumers say they trust brands more when they provide third-party certifications for their sustainability claims (69%), but less than half of businesses are actively using them (43% according to Ipsos).

Don’t wait until you’re perfect. Sustainability is a journey, and it’s better to try, and be honest and transparent, than to stay silent.

Does marketing a brand’s sustainability drive sales?

A major part of the discussion was around whether sustainability can drive sales and how brands are showing return on investment (ROI) in this area. The reality is simply adding sustainability to your branding and marketing doesn’t often yield immediate financial returns, at least based on the discussion members. For some companies and consumers, it will.

It does pay off long-term by strengthening customer relationships and brand loyalty. I believe that’s where the real value lies. Half of Canadian consumers say they’re willing to pay more for products that align with their values, including sustainability (according to a recent Statista report). While this might not always translate into short-term sales spikes, brands that stay committed to their values are winning in the long run.

Depending on your industry and market, I think it can even give your brand a competitive advantage.

One challenge we touched on was the difficulty in measuring the direct impact of sustainability initiatives. Beyond just financial metrics, there’s a growing understanding that these efforts help build trust, which is invaluable for brand reputation and loyalty.

A growing pressure for transparency and reporting

Transparency around sustainability claims is no longer optional — especially as ESG (Environmental, Social, and Governance) reporting is getting more scrutiny, similar to financial reporting. Even smaller organizations are feeling the pressure to keep up with larger corporations when it comes to transparent reporting.

There was also a lot of interest in carbon offsets. Are they as effective as they claim to be? While opinions varied, one thing was clear: customers and stakeholders are paying attention. Beyond environmental issues, the social side of ESG is just as key, from employee treatment to community engagement.

Sustainability in tough times — the business case

Another key takeaway was around the challenges of getting customers — especially in B2B — to value sustainability efforts. Economic uncertainty is a major factor here, as it can make it harder for companies to justify spending more on sustainable options.

We also discussed how younger consumers are pushing harder for brands to take climate action. But they’re often not the ones with the budgets, which creates a disconnect between what consumers want and what businesses are willing to invest in.

Sustainability also isn’t just about consumers. It’s influencing procurement processes, media buying, and even how brands assess their energy consumption.

Progress over perfection.

Some companies hold back on sustainability efforts because they feel like they need to have everything figured out. But progress here is more important than perfection. Consumers, and society, can see right through superficial efforts.

At the end of the day, as cheesy as it sounds, we all call this planet home. And while perfection might be unattainable, a real commitment to change is what will move the needle.