Words that become common business parlance can shift in meaning and, in doing so, become open to a multitude of interpretations. In this current economic climate, “sustainability” may simply refer to the survival and longevity of a company, implying that it will still be around 20 years from now, having survived the downturn. But the word is also frequently used as a substitute for “corporate responsibility” to describe a company’s commitment to and effort in improving conditions for the planet, for people or communities, and in the workplace. Outside of the business arena, sustainability is often used to imply a new and transformative way of living: to create sustainable business, to build “sustainable communities,” to apply sustainable architecture (including sustainable golf courses) with the goal of living on a sustainable planet. We still have some way to go.

As sustainability and its many interpretations become part of our everyday vocabulary, it is slowly starting to connect with the language of branding. Formerly the two were viewed as separate disciplines: branding was about business strategy, marketing and visibility, while sustainability was often associated with managing business risks such as health and safety standards, environmental practices, supply chains and employee rights. Consequently, a company’s actions in sustainability (or corporate responsibility) have sometimes been limited to compliance issues and creating CSR reports. It often has little to do with the core functions of the business (despite assurances to the contrary) and, for most companies, currently has an unclear link to the brand.

But in today’s climate of both consciousness and cost savings, the connection between brand and sustainability is important because “sustainability,” in its many forms, connects to all brand touchpoints. People want to know what companies are doing to contribute to global issues beyond simply selling products and services or creating employment. This is particularly topical as we lead up to the Copenhagen Climate Summit at the end of the year. Others are asking for companies to demonstrate citizenship and a right to operate after the shock of the financial collapse and subsequent recession. For example, researchers at Ipsos MORI reported that people are less forgiving of businesses despite the hard times and expect businesses to demonstrate their environmental and social commitments. Tellingly, “responsible” finance brands like the Cooperative Bank are doing well in times of mistrust. Therefore, at a basic level, connecting sustainability with the brand can be used for reputation management and may even attract some new customers with matching values.

Brand integration
Clever leaders are recognizing that, despite the downturn, sustainability must be worked into future business considerations and a company’s operations. Regulation is looming on many fronts, particularly regarding the environment in areas like the need to cut emissions and move to low-carbon sources. As encouragement, more effective and environmentally considered processes can actually cut costs and lead to more efficient operations of a business. The sustainability of products and their supply chains is also critical for businesses, as is the case for coffee and cocoa growers. Some companies may also encounter genuine environmental threats, like depleting water resources, that could impact their business.

But sustainability and brand integration is not just about mitigating risk. It can also offer opportunities for innovation among customers and employees. For example, in tough times, a brand may have less pulling power, particularly in mass market sectors (like electronics, white goods or food) where price can be a deciding factor if two brands hold similar positions. As a consequence, some brands are looking at using sustainability credentials to make customers aware of their work in this area and boost their reputation—even if it does not translate into a direct purchase. A strong message and contribution to sustainability can enhance the credibility of a brand, particularly if smaller, agile competitors are claiming sustainability credentials.

Brand integration does not necessarily mean that companies must preach sustainability, inform all their customers about their good deeds, hook up with a charity or introduce a “green” range of products. Sustainability can, instead, be integrated into the brand at a range of levels, including through the corporate brand, through the sub-brands, or through product and service development. In response, some leading brands are currently looking at ways to use their brand and status to create business opportunities that may also have a social purpose, such as educating or providing services around issues like obesity or HIV or supporting small enterprises through micro-financing schemes. This can create socially sustainable businesses and long-term schemes in their own right.

Sustainable futures
The key for both brand and sustainability managers is to work out how best to integrate sustainability by aligning it with customer insights and business strategy. Where brands compete on price at the low end, customers may care less about issues such as environment and social concerns. However, the brand must still have ingrained sustainability credentials, even at the most basic level, and it will inevitably communicate these credentials with a different emphasis than a mid-range brand. A lack of standards can be damaging, as low-end UK clothing retailer Primark discovered last year when it was exposed and lambasted in the press for poor labor practices. In contrast, mid-range brands may use sustainability as a differentiator to stand out from competitors and woo customers.

Whatever the brand status, action in sustainability must come before communication, so ensure that sustainability is a genuine part of business operations before you promote it. Companies that speak about sustainable products or services before integrating good practice across all operations are often accused of “greenwashing.” Companies, particularly large consumer brands, are in an influential position to innovate and drive people toward sustainable change by promoting responsible behavioral change. The key is to be clever about it.

The word “sustainability” may now have a multitude of meanings, but it is becoming clear that a sustainable business, in terms of surviving the coming decades, must adopt a sustainable mindset regarding its social and environmental impacts if it is to have a future. To do this, it must connect with the brand.