Social issues, led by mental health, work and economic pressures, comprise seven of the top 10 most important sustainability issues for Australian businesses to address today, according to Kantar’s new 2022 Sustainability Sector Index.
More than half of Australians think that brands have an important role in the social conversation about issues such as gender equality, and race or immigrant relations (55%).
Aligning with the 17 UN Sustainable Development Goals, Kantar’s proprietary sustainability methodology measures the importance of issues to people overall against how much they associate them to specific sectors and categories.
“Australians do see brands as having a right to play on issues relevant to their sector, but they’ll be very different per sector,” says Kantar Australia’s head of sustainability, Bethan Hockey.
“We’ve mapped sustainability issues by stated importance in all major industries to help brands understand the issues that people see as most relevant and necessary to address, and those that can drive differentiation.
"Choosing where to play depends on the current status of your brand and the dynamics within its category. For example, in alcoholic beverages, people expect brands to be addressing issues around physical health, overconsumption and waste; but where brands can really drive cut through is in tackling issues around mental health and domestic violence.
“However, just identifying the relevant issues is not enough to help consumers adapt their own personal behaviours to lead a more sustainable life.
“Companies must understand the value-action gap – the difference between what people say they want to do to be more sustainable and the actions they’re actually taking. Addressing the fuels and frictions that influence consumer decision-making can help to overcome these gaps.
"The Sustainability Sector Index identifies what’s driving and what’s stopping people from adopting sustainable behaviours and what actions businesses can prioritise to close these gaps. For Australians, some of the biggest value-action gaps remain around sustainable products they want to be buying.
Hockey emphasises that the overall challenge for businesses today is in converting their corporate sustainability strategies into clear brand actions that connect with Australians.
“The Sustainability Sector Index reveals that over six in 10 Australians find it really hard to tell which products are good or bad ethically or for the environment (61%); while two in five don’t know where to find sustainable or ethical products (39%).
“Beyond the moral imperative, getting sustainability right is also fundamental to brand growth, especially during periods of disruption.
"It is no longer about if we should act, but instead about how. Our global Kantar BrandZ Sustainability Index demonstrates that the brands that consumers perceive to be more sustainable grew their total brand value by 31% in 2022 compared to 2021. This is significantly higher than the average Top 100 Most Valuable Global Brands, which grew at 23%.
“But remember, not all people are on the same journey toward sustainable living for various reasons. Just tapping into the most active consumers is not sufficient to drive significant progress, impact and commercial value. You must talk to everyone to empower mass change and reap commercial rewards.”
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