Sustainability Leadership Perspective: Summary

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The 5 ‘C’s of Sustainability Branding


"The markets agree… companies that embrace sustainability have achieved the
highest share price growth over the past three years, whereas companies with the worst performance focused less on sustainability."

The Economist Intelligence Unit, and Deloitte’s: “The Green Gap” 2009

From the MapChange Study research and five years of experience building and growing green brands, Marc Stoiber, VP of Green Innovation at Maddock Douglas, created “The 5 ‘C’s of Sustainability Branding,” a tool that outlines the five things we think brand sustainability must be in order to succeed.

1. COMPETITIVE To compete, brands must innovate — and the best new innovations tend to be sustainable. All other benefits being equal, sustainability differentiates and provides tangible competitive advantage.

2. CONSUMER FACING Get the most benefit out of new sustainability initiatives by making them something the consumer will see. Consumer-facing changes will have the most immediate impact on public perception and, potentially, financial performance.

3. CORE Tying sustainability to a brand’s core business is another way to ensure it resonates with consumers. If a brand sells hamburgers, its sustainability has to be about hamburgers, (e.g., organic beef, recycled wrapper). Don’t do something that is unrelated to what people know you for, or they won’t reward your efforts.

4. CONVERSATIONAL Sustainability branding is more effective as a two-way conversation rather than one-way communication. Honesty and transparency will go a long way with consumers. Disclosing what you’re doing well and what you could be doing better will instill trust. And trust breeds loyalty. Inviting consumers to participate in a conversation about your process will further strengthen the brand/consumer relationship.

5. CREDIBLE Sustainability strengthens brands. But greenwashing, even if unintended, damages them. The key is sequence. As long as sustainability efforts are in place, functioning and measurable before being announced, they will be viewed as credible. And proven, objective credibility paired with innovation and communication is the key to sustainable brand success.



Methodology Overview


The MapChange 2010 Study used two distinct methods to calculate actual and perceived leadership in addressing climate change.

After working with 25% of the Fortune 100, Maddock Douglas can say that green innovation is just one method of ensuring future growth. You need to develop and nurture a portfolio of relevant new products, services and business models in order to solidify your position with customers as an innovation leader — green or otherwise. This is not simply hollow rhetoric.

ACTUAL SUSTAINABILITY
To measure actual brand sustainability, we used Climate Counts’ newly released 2010 corporate climate scores. For the past three years, Climate Counts has audited the brands within all 10 sectors using a scorecard that tracks corporate climate action in four key areas: measurement of impact, reduction of impact, engagement on public policy related to climate change, and openness and transparency with consumers on corporate climate activities.

CLIMATE COUNTS SCORECARD
Climate Counts uses a 0 to 100 point scale and 22 criteria to determine if companies have:

MEASURED their climate “footprint”
REDUCED their impact on global warming
SUPPORTED (or suggest intent to block) progressive climate legislation
DISCLOSED (publicly) their climate actions clearly and comprehensively

PERCEIVED SUSTAINABILITY
To measure consumer brand perception, Angus Reid Public Opinion conducted an online survey of 2,032 American adults. The results were weighted to ensure a random sample that was representative of the entire adult American population.

A “maxdiff” methodology was used to assist the respondents in evaluating the 97 companies represented across 10 different sectors, meaning that respondents were asked to “choose the best and worst company in terms of their leadership in addressing climate change” out of a random group of 3 to 6 companies (dependent on the number of companies in each sector). The survey was divided into two parts, with five sectors in each, to mitigate respondent fatigue and ensure the quality of the data.


For more of the MapChange Study methodology and limitations, download the study at www.FutureOfGreenInnovation.com.