As we headed into 2023, 77% of consumers were found to factor sustainability into their buying decisions. But ‘sustainability’ is a broad term, and not all industries can demonstrate their ESG-ness as easily as those in, say, consumer goods.
In comes B Corp. This certification is proof of your company’s pursuit to make the right kind of impact, and it has the power to win you more business.
Customers want sustainable or socially responsible products…
The demand for more mindful products and services has only grown. In an IBM survey, around 60% of respondents said that socially responsible products made up at least half of their last purchase. Even with the cost of living crisis, consumers are prioritising sustainability.
Of course, it isn’t enough to just say your products are sustainable. Customers are sceptical of brands who claim to be ‘green’ but turn out to be ‘greenwashing’. It may be easily done, but it’s a costly risk – it brought the asset management group DWS to its knees following two raids and a $1 trillion inquiry.
In other words, it pays to put your money where your mouth is. And becoming a B Corp is an easy way to do just that. Certified businesses immediately indicate to customers that they are ethical. As one customer puts it, “When I know that a product is B Certified, I trust how it was made. Instead, if a product mentions that it is eco-friendly, I have to ask someone to make sure that the product is really eco-friendly.”
...and they’re willing to pay more for it
Almost half of those surveyed by IBM paid a premium – on average 59% or more – for products branded as sustainable or responsible. And ‘responsible’ here doesn’t have to mean eco-friendly. It can also be a reference to social justice causes or large-scale political movements.
Take Nike. When it came to the Black Lives Matter campaign, they made the symbolic (though not insignificant) decision to feature Colin Kaepernick in their 30th anniversary ads. His taking a knee cost him his NFL contract back in 2016, while the gesture went on to become synonymous with the BLM movement. And despite the ads initially drawing threats of protests and boycotts, it generated a very real jump in sales.
Simply put, you fully align yourself to a cause, you generate loyalty. And loyal customers keep purchasing from you – another cost benefit as it’s more expensive to attract new customers than retain your current ones. All this as a result of committing to your ESG values and helping secure a future for the next generation.
Unlock all the benefits of B Corp
It’s not just your sales that stand to benefit. We know that being a B Corp has a positive impact on your risk factors. And we aren’t the only ones.
Certain insurers will reward forward-thinking organisations with better policies. Whether that’s with cover that's more cost-effective or just more inclusive of your ESG plans, these providers support businesses with sustainability in their sights. Get in touch and we’ll explain how.