The buzz around sustainability in tech
Corporate responsibility to protect our planet is growing in importance. Most organizations today are incorporating ESG mandates into their business strategy with lofty goals for the future. It goes beyond just reducing carbon footprints, to integrating green practices with every facet of operations
Technology companies are integral to this conversation, with their own mandates, and many are leading the development of innovative solutions that support their customers’ sustainability commitments.
But while there’s a lot of “buzz” around sustainability, what matters most is action. How B2B and tech brands communicate their commitments and achievements is critical.
The benefits of sustainability for business growth
Putting sustainability mandates into practice is not a small undertaking. For example, McKinsey determined that $9.2 trillion USD per year is required to achieve net-zero emissions by 2050.
That said, there are benefits to “going green”. McKinsey has also noted the requirement to implement a viable strategy where sustainable practices such as decarbonization will create the greatest value and deliver tangible ROI.
Sustainability can also serve as a competitive advantage. A study by the MIT Sloan Management Review found that companies with sustainability at the core of their business strategy outperform their counterparts in terms of stock market and financial results.
Other benefits include:
Enhanced brand perception and reputation
Environmental impact is top of mind for customers, investors, partners, and stakeholders. And decisions to purchase, invest, or work with a company often reflect our values. A Nielsen report found that 66% of consumers are willing to pay more for products from brands committed to a positive environmental impact. As a result, brand value can improve favorably through successful sustainability practices.
Operational efficiencies and cost savings
Adopting green practices can lead to operational efficiencies and cost savings, from energy and water usage to resource conservation and supply chain optimization. As an example, Google has reported that its use of artificial intelligence to optimize energy use in data centers has reduced cooling costs by 40%. Such savings can be redirected towards innovation, employee benefits, or further sustainability efforts, creating a virtuous cycle of green investment and innovation.
Attracting talent
Outside of external influence, dedication to sustainability is a way to appeal to a highly skilled workforce that is not motivated entirely by salary, but also by the opportunity to contribute to meaningful environmental goals. A survey by Cone Communications found that 64% of millennials consider a company’s social and environmental commitments when deciding where to work.
Long-term resilience and market position
Companies that anticipate and adapt to environmental regulations, resource scarcity, and changing consumer attitudes toward sustainability are better positioned to thrive in the future. By leading the way in green practices, tech companies not only poise themselves for future growth but also contribute to the global effort to combat climate change and preserve natural resources for generations to come.
Sustainability and marketing
Marketing is a necessary way to share information about sustainability initiatives and can support the benefits, particularly that of improving brand value. Sustainability communication needs to be authentic, transparent, and factual. Greenwashing happens when marketing about sustainability practices is misleading or exaggerated.
When crafting narratives, content, or campaigns around sustainability efforts, we have identified a few “musts”.
Must avoid:
- Making exaggerated or unsubstantiated claims that don’t accurately represent sustainability efforts or product benefits
- Using vague or ambiguous terminology (“green, eco-friendly, sustainable”) without clearly defining what these terms mean and how they apply
- Selectively disclosing or “cherry picking” positive aspects of sustainability while ignoring or downplaying other impacts or trade-offs
- Making environmental statements that are irrelevant to the product/service/company
- Using “green” imagery or environmental-themed campaigns that create a false impression of environmental responsibility
Must have:
- Detailed information, including goals, timelines, and metrics for measuring progress
- Data-backed claims using credible sources and third-party verification
- Concrete examples, such as case studies and success stories that illustrate tangible outcomes and real-world impact
- Commitment to continuous improvement and ongoing dialogue around sustainability, including acknowledging areas for improvement and the willingness to learn
- Proportionality between marketing communications and actual sustainability initiatives
Action over rhetoric
The buzz around sustainability is a necessary evolution toward a more responsible and conscious way of doing business. There’s an opportunity for tech companies to make an impact and benefit, but it’s imperative that marketing accurately reflects true commitments and achievements. In the end, action matters more than words.