When every brand presents itself as Mother Teresa or Gandhi, who to believe?

Thomas Kolster, known as “Mr. Goodvertising,” is one of the most prominent voices in sustainable advertising. With over 18 years of experience, he has advised brands around the world in integrating sustainability into their strategies. His books, “Goodvertising” and “The Hero Trap,” promote authentic and impactful brand change.

“Let’s be clear, it is possible to live very well without hurting the planet. People just need guidance. If we want to continue to attract talented people and protect the legitimacy of our industry, we need to address the image problem we have.” says Thomas.

Thomas is one of the guest speakers at the third edition of Climate Change Summit, an event dedicated to solutions for current and future climate change challenges. The summit will take place between October 15 and 17, in Bucharest, and participation is only possible in the base entries.

Below, we talk with Thomas about purpose and profit, sustainability and creativity.

Brand: Purpose vs. profitability

Having a goal, especially from the position of a company, has become more like a marathon of commitments, a parade of missions. Take, for example, the self-glorifying purpose of the Patagonia brand – We’re in the business to save our home planet compared to the promise of health insurance company Discovery – Incentivizing people to live healthier.

Patagonia’s brand purpose can quickly turn into a two-headed monster, where one screams purpose and the other screams profit. We’ve seen these monsters many times, as most of the missions in the sustainability zone are actually the only common denominator that management has been able to reach, like a biblical “Do good for people and the planet.” When in fact it should be a North Star guiding corporate direction and catalyzing significant future growth. When you ask the question “Who can you help people become?” you are clearly focused on change, and Discovery has succeeded in encouraging people to live healthier. One study shows that their members exercise 4.8 times more per month than average. This is also good for business as it means up to 30% lower hospital costs. The fact that it has a well-defined purpose has made Discovery one of the most innovative health insurance companies. The “WHO” anchors in reality why your brand can make a real difference in people’s lives. It’s the shift from shouting “we believe in diversity” to getting people to combat their prejudices and biases.

challenge

One of the biggest challenges in marketing and business in general today is short-term thinking. In the UK, a CMO stays on average for less than two years. How will we make sustainable changes in just two years? Building brands with sustainable missions takes time; it’s not just a marketing fad. The same can be said for CEOs, who are also challenged by shorter tenures. I always advise brands and agencies to make long-term plans — at least a five-year sustainability plan for the brand to commit to. Impact takes time.

Autenticitate vs. Purpose washing

When every brand presents itself as Mother Teresa or Gandhi, who to believe? Every brand can claim to play an important role in your life. But if you can’t see or feel the result, it’s just another broken promise. What brand changed your life for the better? Did it teach you something new? Did it make you healthier? Did it trigger a new way of thinking?

We’re moving towards a post-purpose market where people don’t buy anymore”what are you doing” – or “why do you do it”but rather buy on “that someone” which can become with your help. It’s all about the difference you can make in someone’s life. When you feel like a brand has made a difference in your life, it’s not just cheap words; you can feel the impact—and then that brand becomes authentic.

Communicating sustainability

Brands’ long-term sustainability goals are most often found in reports and on a website, but very rarely in mainstream communication. Why should I care about a 10-year commitment from a company when I’m thirsty now—and the world is on fire? Think about how you can translate your long-term goals into added value here and now. And if you can translate that into price, quality and convenience, that’s even better! We know that these principles work in marketing, it’s just that most brands fall into the trap of making sustainability a value crusade instead of value delivery.

Additionally, brands and NGOs have historically worked well together, and from a commercial perspective, cause marketing where brands use different entities to drive sales and raise funds for a cause has been a prevalent discipline for decades . In the past few years, however, as issues become more complicated and closer collaboration is required, more established partnerships between NGOs and brands have emerged.

The role of the creative industry

The creative industry is guilty of a lack of connection between brand messages and consumer expectations. The sustainability agenda will not go away. Ask yourself how easy it is to choose a sustainable product. Or simply a product with lower carbon emissions compared to its category? It’s not easy, is it? So why not use our creativity to help people understand the impact of their buying habits and lifestyle?

In Denmark and beyond, people buy too many things — or simply things that are too expensive for the climate, such as fast-fashion, table furniture and cheap weekend flights. In Europe, supermarkets are in an uncontrollable discount war, where everyone will lose — from the supermarkets themselves to farmers and other suppliers who cannot make a living from what they do.

To be clear, it is possible to live very well without hurting the planet. People just need guidance. If we want to continue to attract talented people and protect the legitimacy of our industry, we need to address the image problem we have. We’re not lawyers or doctors, so we can’t lose our license. However, the impact we have on people’s behaviors, habits, self-esteem, dreams and aspirations is undeniable.

Education in marketing and advertising

The industry is lagging behind in the knowledge required from both the brand and agency side, which is a risk. We cannot take the current direction as the right one. More and more countries are discussing banning advertising for certain products or industries. UN Secretary-General António Guterres recently encouraged the industry to stop promoting fossil fuels. So far, there has been no qualified response from the advertising world.

Trends in sustainable advertising

Unfortunately, we are witnessing a backlash against the sustainability agenda. In the US, the debate has become politicized, with states banning or reversing progress made, such as ESG reporting, renewable energy investments or fundamental human rights. In the European Union, strict regulation has scared companies away from investing or communicating about their efforts, and now everyone is more concerned with compliance than anything else. There is a real lack of commitment and innovation at a time when people need it. You can call it green-hushing, but it’s more than just keeping quiet—as noted in the US, it’s become a war of values.

Sustainability in Romania

In the last decade, I visited Romania and saw an evolution in the way companies relate to the climate emergency. From an effort of corporate social responsibility, to a business necessity. It is true that Romania still has many steps to take, but this mentality also brings with it opportunities, if translated into concrete and correct actions. The country and the local business environment can choose to develop in a sustainable direction and avoid the pitfalls that many other European countries have gone through in terms of intensive agricultural practices, investments in fossil fuels, deforestation, etc. Romania can overcome these challenges and adopt a more sustainable mentality, circular thinking and become a model of renewable energy.

Source: www.iqads.ro