We live in a profit driven world in which marketing is a key driver in achieving the objectives of an organisation. Over the last few years, the way we view the world has changed. Consumers have become more health conscious and aware of the impact of their purchasing decisions on the future, and increasingly prefer to support products, services and businesses willing to align with their concerns. Marketers can future proof their organisations by tapping into this new paradigm shift and aligning activities and strategies with sustainable practices from product development, through to waste management.

So, what is sustainable marketing? Sustainable marketing are those activities that promote products and services to maximise profit whilst considering the environmental and social impact of its actions, thus, ensuring resources are left for future generations. Sustainable marketing is based on three supporting pillars namely people, planet, and profit. The first pillar which is people, considers the importance of looking after employees to include their development and health and community engagement. The planet pillar recognises the need to look after our resources for the present and future generations through ecologically sound waste management, and optimal resource utilisation. Whilst the profit pillar recognises that financial success and sustainability can contribute to greater profit through market differentiation and operational efficiency.

Engaging in sustainable marketing is a deliberate mindset that must be adopted at strategy level to ensure success but one that can boost the profitability of any organisation. There are a few ways an organisation can balance profitability with purpose:

Firstly though product development. Sustainable marketing should start at the ideation phase of product development, from using sustainable input materials to ensuring that the packaging  makes for environmentally friendly disposal.  Take Monty’s baked beans as an example. Their packaging is made with 69% renewable materials and features eco-friendly cardboard instead of tin containers.

Secondly, through partnerships. As part of its efforts to reforest and reduce the impact of climate change, Nyaradzo Life Assurance Company began a campaign called Friends of the Environment (FOTE) in 2013 with the goal of planting 500 million trees by 2026. Part of the strategy was to provide ‘a tree with every burial’ to bereaved families that used their funeral services.  To increase its impact, Nyaradzo invited other corporate organisations across various sectors of the economy to join them through incorporating tree seedling give-aways into their marketing initiatives. FOTE participants now also undertake fund raising/awareness walkathons and establishment of tree seedling nurseries.

Probably the most important initiative an organisation can undertake is  customer education. The ability to maximise profit from a people, profit, planet mindset lies in an organisations ability to educate its community on the importance of preserving resources for future generations, then showing how it is an active participant through advertising, messaging and communication. The simple act of charging for plastic carrier bags in a supermarket, though legislated, started the conversation on the necessity to preserve the environment. At first customers were encouraged to reuse their plastic bags then innovative marketers started selling eco-friendly catchy paper bags as an alternative to plastic bags. This was further upgraded to the selling of tote bags which have become a fashion item and revenue line on their own, helping reduce waste in a sustainable manner.

There are numerous benefits associated with engaging in and promoting sustainable practices which result in increased profit. These include increased customer goodwill and enhanced brand reputation. Sustainable practices allow your brand to be associated with care for the community and not just an interest in profit. In such instances consumers are willing to pay a little more for sustainable products however the pricing does need to remain competitive.

Another benefit of sustainable practises is access to finance. One increasingly common requirement amongst investors is that applicants must demonstrate their commitment to sustainable business practices to be considered for financing. Evidence of sustainability practices serves as a risk management mechanism for investors, providing insight into the long term viability of a company.

Engaging in sustainable practices can also have tax benefits. For instance, when importing hybrid company vehicles import duties can be paid in local currency rather than foreign currency. Moreover, these vehicles produce fewer emissions compared to regular fuel powered cars and have lower maintenance costs leaving more money for profit.

Last but not least, sustainable practises allow companies to appeal to the values held by millennials and Gen Z employees, who are interested in the extent to which their employers value social responsibility and environmental preservation. In this regard, the reputation of a company and its ability to attract and retain top talent can be further enhanced through its sustainability efforts.   

The main challenge an organisation may face in implementing sustainable marketing is understanding how their efforts can benefit the environment and determining how to measure the impact of their initiatives. There is also a perception that green is expensive, and while input costs can certainly contribute to this, this can be addressed through effective communication that focuses on value.

So, can sustainable marketing increase profitability? It certainly can. Unilever, a company known for successfully tackling sustainable marketing, implemented the Unilever Sustainable Living Plan, a ten-year blueprint for reducing the environmental impact of its brands while providing a more equitable workplace. Over a ten-year period, Unilever was able to demonstrate that it had saved over 1 billion euros, through water and energy conservation, increased opportunities for women and became the consumer goods employer of choice for graduate students in over 50 countries.

Now more than ever, we all need to wholeheartedly embrace change in our thought processes, service delivery, and consumption, as well as our worldview. There has never been a more critical time for future-forward businesses to identify the sweet spot where sustainability meets profit in order to provide lasting value to their customers and ensure their continued success.

Cassandra Chiumbu-Maseko is the Head of Customer Experience, PR and Market Research at Dandemutande Investments. She holds a Business in Commerce (BCom) Degree and a Masters in Business Leadership (MBL) from the University of South Africa (UNISA), a Diploma in Marketing Management from the London Chamber of Commerce and Industry and is a senior executive member of the Marketers Association of Zimbabwe.