CP companies should be earnest about sustainability—and not just for altruistic reasons. Not only are consumers interested in sustainability, but they’re also willing to invest more in brands that are truly sustainable. A majority (62%) of Americans said they’d pay more for sustainable products in a recent Publicis Sapient survey. Similarly, 77% said they avoided certain firms or products for their environmental impact at least some of the time.

Traditionally, sustainability has been viewed as a fraught question between companies and consumers. Who should take ownership? Consumers are encouraged, often by corporations, to make drastic changes to their daily habits in the name of sustainability. From eating vegan, to switching to reusable containers, to avoiding air travel, there’s not a single area of life where individual behavior can’t be altered to help the planet.

On the other hand, corporations are expected to do the same. Consumers are relying on brands to fundamentally change their business to be more purposeful in their actions, especially as their size and scale have substantially more impact compared to individual actions.

However, neither companies nor consumers are substantially rewarded by the free market for making the sustainable choice. This economic dilemma creates the assumption that neither party is motivated to make a change. The opposite is actually true. For starters, most consumers do, in fact, want to change their individual behavior, but many just don’t know how. Not only are there a myriad of different actions to take, but the rules and messages are also uncertain, and most societal systems are not well-equipped to handle them. Corporations face a similar problem.

The idea of democratizing this vague idea means breaking down the stigma and shame surrounding sustainability. Rather than shifting responsibility to the consumer, CP firms can uplift them by making it easier to do the right thing.

“You can incentivize and empower people to make better choices and reward them for making the right decision,” said Clarke. “But you have to be transparent. You can’t be seen as an enemy of the environment and then turn to the consumer to ask them to do more.”

Communication and education on consumer product disposal

For example, 95% of Americans say they recycle. Yet, fewer than half of them know the basics of recycling, according to a recent survey. CP firms are racing to develop recyclable packaging for their products, but many well-intentioned consumers will not dispose of that packaging in a sustainable way. Additional research shows nearly two-thirds (63%) of consumers say they’re more likely to purchase products that are well-marked with recycling instructions. Yet, roughly 60% say disposal instructions on items are hard to find and that there’s a lot of conflicting advice on recycling.

“The product itself is only one element of that end-to-end journey,” said Clarke. “If I buy the most sustainable product but then waste some of its contents or fail to recycle it correctly, that has significant carbon implications.”

Traditionally, recycling information is communicated via a small logo or fine print. However, research shows that this is not enough to really make sure products will be recycled. CP companies have the opportunity to step up their communication and educate consumers on exactly how they can recycle their products in a sustainable way. This could be in the form of a how-to video within a product description or instructions on the back of the box, given that 69% of customers prefer video to text when learning about a product. Companies can even include an instructive insert on how to dispose of the product or packaging.

Not only does this make efforts to create recyclable products more worthwhile, but it also builds trust, relevancy and loyalty with consumers.

Incentivizing consumers to practice sustainability

But this is just the first step—actually getting consumers to follow through on recycling or other disposal instructions is another process. One way to incentivize sustainable actions is through consumer rewards. The rewards can come in many different forms, from meaningful experiences, to QR codes, to apps.

For example, Volkswagen turned a staircase that was next to an escalator into a piano in order to incentivize people to be more active and use less energy. This prompted more and more people (a 66% increase) to take the stairs instead of the escalator because it would play a song and offer a fun experience.

In Canada, a CP company introduced a smart sensor on the back of recycling bins that would allow consumers to swipe the QR code on the back of products to see whether or not they’re recyclable.

Companies have also used accompanying apps to empower consumers to make the right choice. In the U.K. and France, a CP company created a mobile app that would inform people of the most sustainable choice in a particular category, like skincare, for example. The app would also reward the consumer with loyalty points for purchasing the most sustainable product.

However, it’s important to understand that consumers have reasonable limits. “In an urban area, you can encourage consumers to walk versus drive to the store. But you can’t expect the same from someone living in most rural locations, where the closest store may be 25 miles away,” said Clarke.

Using specific language to describe sustainability efforts

Another aspect of sustainability is the actual choice of the products themselves. CP companies have started introducing carbon-neutral food and beverage products to the market, with corresponding product labels to attract climate-conscious consumers. However, nearly 6 in 10 consumers don’t actually know what that term means or define it incorrectly.

The same issue presents itself with other terms, like GMO-free, because only 52% of consumers know what GMOs are. If CP companies want consumers to choose and, in many cases, pay more for sustainable products, they need to better educate them on what sustainability entails.

CP companies can go beyond a small logo or label to be more specific in how certain products are helping the environment—through more detailed, engaging messaging on different channels. This can also help to combat “greenwashing.” Research shows that among European fashion brands, 59% of green claims are misleading. Part of this issue is the use of vague terminology in product marketing that many consumers gloss over or even misinterpret.

You only need to look toward rising grassroots influencers such as TikTok star Andrea Cheong to see the power of customers in calling out brands for greenwashing. She represents the growing wave of consumers using their purchasing power to identify exaggerated sustainability claims and shift their purchases toward cleaner, “slower" brands that put intense focus on measurable and focused impacts.

“Be very clear about how your product, or your company, is giving back,” said Clarke. “What specifically are you doing? Companies can’t hide behind broad concepts of environmentalism and net-zero targets because no one understands what they actually mean.”

This also means that companies should be transparent about failures and missteps at the same time. CP firms can more effectively incentivize and educate consumers on sustainability if they, too, are open and humble about their decisions and mistakes.

Overall, democratizing sustainability is a combination of three efforts: educating consumers about the ramifications their choices have on the environment, nudging them to make a smarter decision and then empowering or rewarding them for making that decision.

“Companies should be applauded for what they’re doing when it comes to sustainability across the entire supply chain,” said Clarke. “But they have a bigger opportunity and responsibility to help consumers make more sustainable choices, too.”

However, democratizing sustainability is not limited to the actions of consumers. The idea extends to other stakeholders in the business ecosystem, like competitors and government entities.

There are a few different opportunities where CP firms can collaborate to achieve sustainability goals, like net-zero targets. For example, if a clothing brand is looking for a more sustainable way to wash clothes as part of the manufacturing process, it can partner with a detergent brand and an appliance manufacturer as well. These three companies can work together to nudge consumers to make more sustainable choices about how they wash and dry their clothes, as well as improve the sustainability of their own practices in a cooperative way.

Collaboration can even exist between competitors within the same industry. For example, within telecommunications in the U.S., T-Mobile and Nokia are partnering to offer 5G connectivity to their consumers on new networks through T-Mobile’s 5G Open Innovation Lab.

Collaborate with other firms on transportation, sourcing and manufacturing

There are a few different opportunities where CP firms can collaborate to achieve sustainability goals, like net-zero targets. For example, if a clothing brand is looking for a more sustainable way to wash clothes as part of the manufacturing process, it can partner with a detergent brand and an appliance manufacturer as well. These three companies can work together to nudge consumers to make more sustainable choices about how they wash and dry their clothes, as well as improve the sustainability of their own practices in a cooperative way.

Collaboration can even exist between competitors within the same industry. For example, within telecommunications in the U.S., T-Mobile and Nokia are partnering to offer 5G connectivity to their consumers on new networks through T-Mobile’s 5G Open Innovation Lab.

“The more companies can cooperate within their supply chains, the more environmentally efficient they can become,” said Krantz. “If you look at large-scale carbon emissions, it comes from deforestation and transportation of goods. If companies work on these issues in a coalition format, they can make a larger impact.”

One way consumer products firms can collaborate on the back end is through selling products or raw materials to companies within the same industry. For example, if two manufacturers are utilizing the same agricultural raw materials, they can use the same crop source to reduce deforestation on additional land, or share transportation logistics to reduce emissions for multiple vehicles.

Leverage public-private partnerships to reward sustainable choices

Finally, the third major stakeholder in the sustainability conversation is the government, which is sometimes perceived to be at odds with consumer products firms or consumers themselves. Certain bills and laws are interpreted to favor corporations or consumers to the potential detriment of the other party.

Sustainable legislation, such as the Right to Repair Law in New York state or the U.S.-proposed Climate Risk Disclosure Rule, pressures corporations to make changes through potential legal consequences. Consumer products firms have the opportunity to work with lawmakers and other government organizations to not only abide by this legislation, but to also proactively partner on sustainability initiatives that reward consumers.

For example, Unilever has partnered with the U.K.’s Foreign, Commonwealth & Development Office on a TRANSFORM initiative to fund environmental entrepreneurs in East Asia and Sub-Saharan Africa. Other CP firms are involved in an agribusiness sustainability task force that’s part of Prince William of Wales’ Sustainable Markets Initiative (SMI), which is striving to transition to regenerative supply chains by the end of 2022.

Patagonia has taken sustainability collaboration to the next level by transferring its non-holding stock (98%) to an environmental non-profit called the Holdfast Collective. Founder Yvon Chouinard described the move as “going purpose” rather than “going public.” Purpose-driven public-private or private-private partnerships like this have the ability to effect change on a much larger scale, especially if there are goals and targets attached to them.

While sustainability targets are significant and daunting, the power of democratization and bringing in partners to work together on climate change will make the journey a lot easier. Not only can different stakeholders share the burden of climate change, but they can also face the challenge in a much more powerful way, whether that’s through consumer messaging on recycling, government partnerships or even manufacturing collaboration.

“Ultimately, if CP firms can embrace sustainability as not just another KPI, but a collaborative effort, where the focus shifts from ‘direct to’ to ‘direct with,’ the opportunities are endless,” said Clarke.