Growing Sustainability: 60% of Businesses Adopt Strategies
More Businesses Are Embracing Sustainability Initiatives
Recent findings reveal that more than 60% of global businesses have adopted a sustainability strategy in 2024. However, only 10% believe they are effectively communicating these strategies. This information comes from in-depth research conducted by a data analytics firm specializing in market insights.
Euromonitor's Passport Sustainability Platform
The upgraded Passport Sustainability platform is pivotal in helping companies monitor the effectiveness of their sustainability claims and comprehend consumer sentiments. It encompasses a comprehensive coverage of 11 industries, 25 global markets, and 50 product categories, tackling over 70 various sustainability claims.
Sales Growth from Sustainable Products
According to research from the Passport Sustainability platform, in 2023, 20% of all global sales originated from products that featured sustainability claims. These sustainable products often demonstrated a remarkable average sales growth of 1.5% over the past four years, indicating a growing consumer preference for eco-conscious options.
Communication is Key to Sustainability Success
The effectiveness of any sustainability strategy largely hinges on clear and truthful communication to prevent accusations of greenwashing. A senior product manager noted that while 'natural' remains the most prominent sustainability claim in terms of value sales, its ambiguous definition has raised concerns in multiple sectors, particularly in the beauty and personal care industries. In 2023, 39% of beauty products and 37% of pet care products made 'natural' claims, prompting regulatory bodies in the EU and various US states to take action against unverified sustainability claims.
Popular Sustainability Claims Across Industries
Aside from 'natural', claims such as Organic and No GMO, alongside dietary assertions like Vegan and Vegetarian, rank among the top three sustainability claims by value sales. This trend highlights a shift towards products that customers can trust, particularly in packaged food, cosmetics, and consumer health.
The Rise of Zero Waste and B Corp Certification
Among the rapidly growing sustainability claims, Zero Waste and B Corp certification have gained significant recognition. Companies embracing Zero Waste principles focus on minimizing raw material use and reducing waste in their operations. B Corp certification indicates a company's serious commitment to social and environmental performance, albeit with a prolonged certification process.
Industry Leaders in B Corp Certification
The beauty industry showcases the highest number of B Corp certified products, with well-known brands, including The Body Shop and Dr Hauschka, gaining certification. The growth in staple foods and snack items bearing the B Corp label has surged, with increases of 49% and 40% respectively over the past two years.
Conclusion and Future Prospects
As sustainability continues to evolve, businesses must adapt to the changing landscape by implementing effective communication strategies alongside their sustainability initiatives. The demand for sustainable products is on a decisive upward trajectory, driven by increasingly conscious consumers actively seeking eco-friendly and credible options.
Frequently Asked Questions
What percentage of businesses have adopted sustainability strategies?
More than 60% of global businesses have implemented a sustainability strategy as of 2024.
How has the sales of sustainable products changed?
In 2023, 20% of all global sales were of products with sustainability claims, indicating a growing consumer preference for eco-friendly products.
What does the B Corp certification signify?
B Corp certification indicates a company’s commitment to meeting rigorous standards of social and environmental performance, accountability, and transparency.
Which sectors are most concerned about greenwashing?
The beauty and personal care industries are notably concerned about greenwashing due to vague claims like 'natural'.
What is the Zero Waste principle in sustainability?
The Zero Waste principle encourages companies to minimize raw material use and reduce waste in their processes for a more sustainable approach.
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