Sustainability Unveiled The Greenwashing Reality in American Businesses

Sustainability Unveiled: The Greenwashing Reality in American Businesses

50% of American businesses overstate their commitment to sustainability.

59% of executives misrepresent how they approach sustainable messaging, according to Google Cloud and Harris Poll. Here are some tips for businesses to increase their efforts.

With regular reports on climate change, sustainability has drawn a lot of attention. The melting of glaciers and the migration of marine organisms are both caused by rising ocean temperatures. Volatile storms have intensified, leading to an increase in floods and heavy rains worldwide.

According to research, as sea levels rise owing to climate change, hurricanes have become stronger and storm surges have increased. Hurricane Ian allowed you to witness the fury of the world in late 2022. The Southeast was devastated by the Category 5 storm, particularly Florida.

According to senior scientist Tom Knutson at the National Oceanic and Atmospheric Administration (NOAA), storm flooding is made worse by rising sea levels. As the rate of rainfall increases this century, the issue will only get worse.

The terrible impacts have been felt by many, which has increased interest in sustainability initiatives. By lowering your carbon dioxide (CO2) emissions, you may have discovered solutions to reduce your carbon footprint. What about the remainder of the nation?

While it is simple to discuss sustainability efforts, the true challenge lies in taking tangible actions. Numerous Americans claim to adopt sustainable practices merely to impress their peers, but the reality paints a different picture.

53% of Americans overestimate their use of sustainable practices, according to a March 2023 survey. The same survey finds that 54% of people will resume unsustainable behavior if they’re left alone.

“When it comes to sustainability, it matters less what people think and more that we all just do the best we can.” -Jessica Hann (senior vice president of Avocado Green’s brand marketing and sustainability)

The negative consequences of greenwashing

Customers are misled about the environmental impact of businesses that “greenwash” their operations. They may also use climate-friendly initiatives for PR to cover their environmental malpractice. 

More than half of businesses admit to greenwashing, according to a 2023 survey. When leaders were asked how they approach sustainability communications, Google Cloud and Harris Poll found that 59% overestimate or falsely describe sustainable practices.

To protect the planet, it is crucial to put an end to greenwashing. With enhanced knowledge and advanced technology, individuals can foster a harmonious relationship with the environment rather than being adversaries. The following five approaches illustrate how employers can support their own sustainability endeavors and empower their employees to do the same:

1-Implementing renewable energy sources

The existing climate problems have been considerably exacerbated by buildings. They use almost 35% of the world’s energy, according to data from the International Energy Agency. For the construction of these structures, steel and cement must be used, and electricity and heat must be produced. The current model for energy consumption is less viable as the global population increases and demand rises.

Renewable energy is one approach to lessen the carbon impact of your staff members at work. Solar panels are the most practical way to achieve it. These devices capture solar energy and use it to generate electricity for your building. Instead than relying on the electrical grid, you’ll generate your own energy.

For both personal and commercial use, now is a great time to get solar panels. The solar tax credit has been extended by the federal government until 2033. When you buy solar panels, you can receive a 30% discount on the panels, labor, and other installation-related expenses. 

2-Seeking sustainability certifications

Getting certifications is a great way to verify sustainable efforts. For instance, achieving Leadership in Energy and Environmental Design (LEED) accreditation validates adherence to construction standards. To get LEED certified, you must pass a test given by the US Green Building Council.

There are many accrediting programmes, however LEED is one of the most well-known. For instance, the Farm Sustainability Assessment (FSA) Programme of the Sustainable Agriculture Initiative Platform (SAI Platform) provides a framework to improve sustainability outcomes and assess efforts at bronze, silver, or gold levels. Achieving FSA Gold status is an indication of noteworthy accomplishments in fields like soil management, biodiversity, and greenhouse gas (GHG) emissions.

3-Water conservation practices

Water plays an important role in various industries such as agriculture, construction, and fashion. Even in office settings, water is necessary for facilities like bathrooms and water fountains. However, the global freshwater supply has become increasingly concerning, leading to water restrictions in many Southwest cities and states during the summer.

Water efficiency must be prioritized in order to improve sustainability in your workplace. Utilizing low-flow faucets and toilets helps reduce water usage to only what is necessary. Such solutions not only cut down on water use but also lower utility costs. Utilizing smart technology also makes it possible to monitor water usage in real-time, helping to spot areas that can be improved.

4-Reevaluating the supply chain

In today’s business landscape, environmental awareness holds great significance, influencing carbon footprint and Environmental, Social, and Governance (ESG) scores. ESG ratings are crucial indicators of social responsibility, influencing investor and consumer perceptions.

Reassessing and improving the supply chain is a crucial strategy for raising ESG rankings. Think about whether your suppliers are domestic or foreign. International partners may be more affordable, but their reliance on fossil fuels frequently has a greater negative impact on the environment.

You can streamline the supply chain, shorten lead times, and lessen the environmental impact of your company by forming alliances with domestic businesses, ideally those that are located in the same state.

5- Encouraging employee engagement and education

Enhancing sustainability efforts within an organization requires an essential strategy that prioritizes staff education and participation. Employees can actively support sustainability goals by encouraging a culture of environmental responsibility.

Encourage staff members to take part in sustainability activities including trash reduction, energy conservation, and recycling programmes. Give people instruction and instructional materials on sustainable practices, such as the value of conservation, renewable energy, and eco-friendly actions in both their personal and professional lives.

Use internal communication channels, such as newsletters or intranet platforms, to inform staff on sustainability updates, success tales, and how-to guides. Employee sustainability initiatives and contributions should be acknowledged and rewarded.

Organizations can foster a shared commitment to sustainable practices by empowering and educating their workforce, which will have a good influence on the environment and make the workplace more sustainable.

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Costa Rica to Welcome Starbucks' Groundbreaking Sustainability Learning and Innovation Hub

Starbucks to launch Sustainability Learning and Innovation Hub

Starbucks and Arizona State University collaborate to create a Hands-On and Virtual Learning Lab in Costa Rica, Giving Partners, Students, Researchers, and Business Leaders the tools they need to drive Innovation and Address Global Social and Environmental Challenges.

It is expected to physically open the lab within the next three years.

Seattle, WA — Today, Starbucks unveiled its intentions to establish a state-of-the-art sustainability learning and innovation lab at Hacienda Alsacia. Situated in Costa Rica, Hacienda Alsacia serves as the worldwide hub for Starbucks’ agronomy operations, focusing on groundbreaking research and development in the field. The lab will act as a focal point for in-person and online learning opportunities for Starbucks partners (employees), students, researchers, and business leaders to develop and scale sustainable solutions for some of the most difficult environmental and social problems in the world, such as agricultural economics and climate adaptation.

Select Arizona State University (ASU) students and Starbucks partners will have access to the lab’s initial wave of educational programming beginning this fall. The first wave will make the most of ASU’s top-notch faculty and cutting-edge educational technology to enhance the learning experience for students, and it will also offer study abroad opportunities connected to already-offered ASU degree programmes in sustainability, sustainable food systems, global agribusiness, environmental and resource management, among other things. Within the next three years, Starbucks Lab is anticipated to become physically operational.

The company’s first and only company-owned and operated coffee plantation, Hacienda Alsacia, has concentrated on the sustainability of coffee for more than ten years.  The farm is solely used for research and development, where the Starbucks team is experimenting with disease-resistant coffee plants, breeding new varieties of coffee, and developing and disseminating agricultural techniques in order to increase productivity and safeguard the future of coffee. While the ongoing research and development efforts at Hacienda Alsacia remain uninterrupted, the forthcoming lab will amplify the capacity for collaboration and innovation, extending its focus beyond coffee to foster positive social and environmental transformations.

Laxman Narasimhan (Starbucks chief executive officer) stated: “This is an opportunity for us to advance Starbucks environmental promise to give more than we take and our farmer promise to ensure the future of coffee for all,”

In addition he said: “We know we cannot do this important work alone, and the possibilities in front of us to scale solutions, partner with thought leaders and serve as a global hub for innovation are limitless.”

The mission of Starbucks reaches far beyond its customers, partners, and coffee shops. With a commitment to purchasing 3% of the world’s finest ethically sourced arabica coffee, sourced from over 400,000 farmers in 30+ countries, Starbucks recognizes the inseparable connection between its future and the critical social and environmental issues of our time. The company has a long-standing commitment to work alongside communities to become a resource positive company, including cutting its carbon, water and waste footprints in half by 2030. With the hope of creating a great business that scales for good and has a positive impact on the future, Starbucks is dedicated to finding new methods to give more than it takes in collaboration with others.

There has been a long-standing collaboration between Starbucks and ASU to develop cutting-edge educational programming. In a significant achievement, Starbucks and ASU have successfully graduated over 10,000 partners through the Starbucks College Achievement Program, marking a significant milestone in their partnership.

Michael Crow (President Arizona State University) said: “This is an exciting new chapter in our nearly decade-long partnership with Starbucks,’’

He further added: “The new sustainability learning and innovation lab will expand on our collaboration together, working closely to tackle critical challenges with a collective commitment to seek new and sustainable approaches that impact global communities.”   

Starbucks:

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. The firm is the largest roaster and retailer of specialty coffee in the world today with over 35,000 locations across the globe. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at stories.starbucks.com or starbucks.com.      

Arizona State University:

In order to create a university that is dedicated to accessibility, excellence, and impact, Arizona State University has designed a new model for the American Research University. ASU measures itself by those it includes, not by those it excludes. As the prototype for a New American University, ASU pursues research that contributes to the public good, and ASU assumes major responsibility for the economic, social and cultural vitality of the communities that surround it. 

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How Does Sustainability Impact Media Selection (2)

How Does Sustainability Impact Media Selection?

Exploring the Influence of Brands.

The JCDecaux UK study sparks a new discussion on how to use media choice to advance sustainable goals.

Sustainability refers to the practice of meeting our present needs without compromising the ability of future generations to meet their own needs. It includes making decisions responsibly and equitably while taking into account economic, environmental, and social factors. Sustainability seeks to establish a peaceful coexistence between people and the environment, assuring a brighter future for all. It does this through supporting resource conservation, environmental protection, and social fairness.

In a delightful evening setting, Campaign and JCDecaux UK orchestrated a gathering of esteemed senior marketers, agencies, out-of-home specialists, and media owners. The event, which was held amidst London’s picturesque Petersham Nurseries, offered the chance to learn more about the results of ground-breaking research done by JCDecaux UK. The study dives into the viewpoints of 200 marketers to illuminate their sustainability philosophies.

Exciting revelations are on the horizon as the full results of the expert report, to be published in Campaign at the end of June, are eagerly anticipated. The vibrant conversation around the table during this gathering reflects the remarkable level of engagement advertisers have when it comes to sustainability. Their thirst for knowledge and information in this ever-evolving realm is palpable.

The discussion gave an intriguing glimpse into the mindset surrounding sustainability and the sense of obligation that businesses have in this rapidly evolving field. Incorporating free Wi-Fi and air quality gauges into settings, as well as distributing 200 defibrillators across the UK, according to Chris Dooley, head of social impact at JCDecaux, the outdoor media owner’s commitment to “giving back” is ingrained in its DNA.

He also said “We give back to the community in ways that people do not realize, including 50p in every £1 that we share with our landlord partners,”

He is correct: brands at the dinner discussion were curious to learn more and had limited knowledge about this. Including agencies. Dan Plant, chief strategy officer of Starcom, said, “50p in the £1 is what’s got me the most excited today,”

The group came to the conclusion that while there has been more discussion about sustainability recently and the topic has transitioned from being a niche to a mainstream problem, not everyone is at the same stage of their journey. The lack of knowledge and measurement was perceived as a significant hurdle to driving change in sustainability practices. However, the use of calculators was viewed as a limited solution, as they aimed to condense the multifaceted aspects of ESG (environmental, social, and governance) sustainability into a single carbonization number. This approach was deemed unrealistic and oversimplified.

Without giving away too much before to the report’s release, it poses the question, “Should sustainability influence media choice?” Here is a sample of what was spoken about.

An overview of the conversation:

-For measurability

In summary, when it comes to claims about sustainability, there is both a clear passion among marketers for the environment and impressive progress made, but also a level of confusion. So, in essence, the question is: Whom or what should we trust regarding sustainability claims?

Georgina Bramall (marketing strategy director at Giff Gaf) said that “It’s hard to measure and bring tangibility back to the business. A more solid measurement framework is needed,

Dan Plant, chief strategy officer at Starcom, concurred, “The econometrics aren’t up to it.” One marketer bemoaned, “There’s too much information; we don’t know what’s true or real.”

According to EON’s Somerville, the problem transcends the moral imperative in the end. To ensure that their marketing is successful, marketers need data, so it’s critical for the sector to cooperate. “It’ll be a slow march but we’ll get there – when consumer awareness and action forces us.”

Not a Number

Some people believed that the obsession with carbon calculators missed the point because ESG cannot be reduced to a single figure, said to Sophie Pemberton, global chief strategy officer of OOH specialist Talon.

“Bringing it back to carbon calculators and one number doesn’t do it any justice, but clients do want those numbers to compare – it’s insane.”

With the current rather crude tools at hand, it can be difficult to make a judgement on matters like diversity or social inclusiveness because the discussion is growing more nuanced.

In addition – “I never knew any of this information existed,” a marketer acknowledged. “Calculators are contradictory and there’s too much information around. I would have expected our top [media] partner to have told us about it.”

-Change is needed

Despite the urgent clamour for fast change, there are doubts about how quickly the industry can undergo real, significant change. Even though it is not frequently acknowledged, media plays a crucial role in the supply chain and will eventually be required by law to fulfil net zero goals. It is critical to recognize this. Therefore, it is not a choice to become complacent.

But according to Ollie Joyce, the global chief transformation officer at Mindshare, it will take two to three years before budgets start to change noticeably. To give the shift enough time, brands could proactively enquire about sustainability issues in the interim. Somerville insisted that the moment to start making changes is right now.

-Cultural Evolution

Sustainability must be thoroughly ingrained inside an organization, just like any big transition, with active participation from all parties. “Sustainability doesn’t sit within marketing, it’s normally someone reporting to the CEO,” Acknowledged Jawad Safdar, growth marketing director, international at Wex Inc. “Most marketers aren’t educated in any of this.”

Bramall added- “It’s not a department but part of the business culture,” The B Corp designation has made sustainability everyone’s responsibility at Giffgaff.

There are still concerns about who is accountable for ESG, but a broader acceptance of the topic and its integration into corporate culture as opposed to silos can only be beneficial.

Key Takeaways:


“The key messages have landed but we need to think what else we need to do to ensure that we share knowledge with each other in a clear and easy way” – Nicole Lonsdale, chief client officer, Kinetic.
 

“It’s always going to come down to effectiveness so if there’s a way of feeding the importance of sustainability and ESG into the econometrics then it can start to affect high level decision making”
– Pia Kingan, media strategy director, Sky.  

“Until ESG matters to the majority of our audience or is regulated, brands won’t really make decisions based on it” – Jawad Safdar, growth marketing director, international, WEX Inc.  

“Carbon and environmental impact are really tough to figure out. Think about media and its impact on the world around more broadly and how OOH contributes to the ecosystem. There are media that do and media that don’t and as an industry we should be focusing on the media that puts value back in rather than extracts it” – Dan Plant, chief strategy officer, Starcom.  

“People would not have had these conversations a few years ago, but we need to do more to make brands informed about what we do around sustainability. I hope we reach a tipping point where calculators do what we need them to do” – Chris Dooley, head of social impact, JCDecaux.  
 
“There is a clear passion about this space which inspires you to be louder and push the key decision makers more and be more vocal to get action off the ground” – James Thompson, executive director, Manning Gottlieb OMD.  

“There’s a lot of comfort that this is becoming a common conversation now and not a couple of us in a cupboard. But we need to watch that it doesn’t just become a conversation among ourselves and that it includes the customers” – Scott Somerville, chief marketing officer, EON.  

“It will take transparency and standardization of information to allow us to justify change”
– Ollie Joyce, global chief transformation officer, Mindshare.  

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