International survey confirms path to brand preference decision

Where should you place your bets for growth? Is it optimal product technology or top-of-mind brand awareness? While these issues remain important, they are not the number one driver of brand choice and preference according to a recent Ipsos study of 8,000 consumers in the U.S., UK, France and Germany. Read on for the reveal.

The study exposes a significant strategic weakness

The Ipsos report laid bare a decided absence of customer-centrism in how businesses operate. For all the sermonizing about the importance of consumers to brands and business growth, it is interesting that so few know the real details of their customer’s lifestyle needs, wants, aspirations and behaviors. This insight is required to build deeper brand relevance and personalization, two components of optimal strategy that surfaced from the survey conclusions.

It appears that CPG businesses, especially legacy brands, are constructed primarily around a focused model that is systemically preoccupied with product development, operations, manufacturing, distribution infrastructure, supply chain, sales/marketing and cost management of same. Appears it may be tough for an older dog to learn new tricks.

• “Customer first” is a relatively new trend in business management, seen more often in digitally-native brands where the entire proposition was invented on the back of laser-focused consumer relevance and ongoing interactive conversation and experimentation.

Further it is more difficult for marketing to connect and engage without heartbeat-level insight into those you wish to sell to – their lives and lifestyles. Relevance in brand communication is nourished by an uncanny sense of what matters to the user’s personal aspirations and needs. “You get me” and “you help me to ________” are ultimately more important in consumer-brand relationship construction than an awesome product, which is now table-stakes on the list of consumer expectations.

Here’s where to invest if sustainable growth is a priority for you and your organization:

The survey confirmed customer experience is the number one motivator of brand selection!

• 77% of consumers choose a brand based on positive experience.

• 64% will avoid a brand based on a bad experience.

• Women (66%), Millennials (70%) and GenZ (68%) are most likely to head for the exits after a bad experience.

In fact, brand switching starts to gain traction after just one bad experience. Moreover, negative experiences and unresolved issues are also catalysts for dissatisfied word-of-mouth and social channel sharing.

• Interestingly, the fastest growing consumer cohort now is 55+ and also the most ignored, given historic brand preoccupation with wooing younger audiences. That’s leaving big business on the table!

Here’s some added texture on the survey findings

• Consumers do research ahead of a purchase, so anticipation is higher right out of the gate.

• They expect to receive a seamless, friction-free and positive experience with your brand.

• Brand recognition and stellar product technology is important but not the decider.

• Customer experience is the tipping point on brand selection decisions.

• Failure to understand customer needs is the critical, pivotal Achilles’ heel.

U.S. consumers, especially, are looking for personalization and real-time responsiveness on their questions including chat options with a live agent not a bot. In fact, more than 40% of consumers want personalized solutions based on a granular understanding of their interests, buying behaviors, demographics and psychographics.

Retail everywhere

The study demonstrates the incredibly important opportunity brands have to add value at all touchpoints along the path to purchase, whether online or at the store. For consumers, the channel is irrelevant with respect to expectations. They believe it should be friction free, simple and helpful no matter where they purchase.

• What’s often missing is an embedded view that customer needs and wants come first rather than the company serving its own operational quirks or self-protective policies.

With consumer /user experience being a pivotal moment on the path to purchase and repurchase, it only stands to reason it must be served with skill and intuitive judgment on addressing the customer’s wants. Thus ongoing, always-on investment in consumer insight is a required commitment to make all of this work successfully for sustainable brand growth.

If you’re looking for deeper insight and fresh strategic thinking on the path to improved consumer experience, use this link to start an informal conversation.

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How to successfully address sustainability demands for food, beverage and lifestyle brands and retailers

Food, beverage and lifestyle categories are ground zero in a major culture shift now underway. It will redefine the meaning of sustainability and recast the value proposition for nearly every brand and retailer in the business.

The rapid arrival of a new consumer culture shift demands greater accountability on climate impact and verifiable solutions to greenhouse gas threats. New research confirms not only is this a priority for consumers on the path to purchase, it also has a direct impact on food, beverage and lifestyle brand and retailer growth outcomes. 

Are you prepared – ready to embrace the sea change and reap the rewards from operating consistently with consumer attitude and preference shifts on sustainability?

Download our new report on the first Brand Sustainability Solution. Learn what the future looks like and how to solve the challenges ahead for your brand and business.

FREE DOWNLOAD HERE OF THE BRAND SUSTAINABILITY REPORT

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Why Brand Education is More Effective than Selling

There’s an almost irresistible, gravitational pull in brand marketing to focus on self-promotion. It’s instinctive and alluring to talk singularly about why your product is better than others. Is your head nodding up and down? You may believe the persuasive story is your awesome tech, your incredible recipe, your authentic ingredients, your great taste, your contemporary look, your creative store design – all of the various arguments why your brand or banner is terrific and a superior choice.

• These brand advantages and qualities are now fundamental currency in a marketing game whose rules have changed.

• Yes, all of these things remain important, but should they be the leading tip of your marketing spear? Not anymore. Here’s why.

The dynamics powering consumer and brand relationships have transformed. Consumers gained control of brand engagement when the Internet and digital era handed it to them. Your users know everything, can compare anything, and quickly learn from the experiences of others good, bad or indifferent. They can turn your engagement tactics on or off with a click. When consumer relevance reigns supreme, it’s time for an enlightened approach.

Secondary research confirms most people run away from self-congratulatory messaging outreach that looks like traditional selling. For them, it isn’t trusted communication. Effective marketing recognizes that the journey brands take with their best customers is built on a foundation of reciprocity and value exchange.

Role of the modern brand is guide and purposeful voice

Instead, your brand should present itself as a guide, coach and advisor on the consumer’s life journey. Marketing becomes relevant and resonant to users when the value offered is of intrinsic benefit in helping them achieve their personal aspirations and goals. Your brand should be a partner not a seller. Key insight: the dynamic of how brand relationships are made has shifted to help over hype, so your voice and story should realign with it. How so?

Eat Just brand, the first cultivated chicken meat to win regulatory approval for sale in Singapore, recently struck a deal with a hotel-based restaurant called Madam Fan. They are launching the first home delivery menu of dishes using Eat Just’s non-chicken chicken.

Inside the food delivery container is a Google Cardboard viewer with a link to a short film. According to Eat Just CEO Josh Tetrick the video transports you to a Brazilian rainforest where you observe this rapidly disappearing climate-critical resource. You see this amazing natural carbon sink being replaced by industrial farms that raise animals for meat and the corn and soy crops to feed the animals. The goal of Eat Just’s video is to help users appreciate why cultivated meat matters to the planet’s health.

Turning the food delivery box into a portable brand experience is such a smart move.

Did the video do a typical romance of their product tech? No, it was instead an inspiring educational experience where the consumer learns about the connection between our food system and its related climate impact. This frames the Eat Just brand’s higher purpose, it informs in a way that’s consistent with changing consumer values and beliefs about food. It creates a unique teaching moment – and a powerful one at that.

This is how a community of believers and advocates is built. The video endears the Eat Just brand to its users. Of course, for all of this to work, the product eating experience still needs to be perfect. It should be an authentic analog to chicken flavor and texture – and taste should hit squarely on the crave-able and delicious notes.

• That said, in a world of common feature-to-benefit selling tropes, Eat Just credibly, remarkably rises to a new level of value exchange, where eating that nugget of chicken meat acquires a deeper meaning than it would deserve outside this context.

What’s more, the approach educates and benefits the recipient in a compelling way – an “a-ha” moment of learning that rainforest is rapidly disappearing (at an alarming acre per second). Emotion is embedded in the subject matter of the video, so it plays to what we now understand about consumer behavior and the (major) role of emotion in shaping perceptions and actions.

Marketing that’s wanted by the recipient

Your goal is to create marketing that is welcomed by its intended audience, not avoided. When the food or beverage brand helps its core customer with creativity in the kitchen, or enables wellness and fitness experiences, or communicates a higher purpose like food scarcity, the brand gains permission for a conversation. Here the brand bonding is facilitated because we’ve moved beyond transactional selling to a more relevant and powerful dialogue.

You may still wonder: isn’t the path to sales growth paved with communicating product attributes early and often? Not at the expense of failing to educate users. This has everything to do with understanding the rules of reciprocity and trust that influence purchase behavior. Trust is earned when the consumer believes you understand them and their needs and operate unselfishly to work in their best interests. Trust is the active ingredient in an authentic give-and-take relationship between brands and users.

Food and the role of crave-ability and deliciousness

Worth noting, food is an emotion-packed category. People care deeply about the quality of what they put in their bodies. They want to know the ingredients used are high quality, healthy, real, safe and also better for the environment. They especially want to avoid making a bad decision, so how food is presented with an eye towards taste and eating satisfaction helps eliminate the perceived reflexive risk of “It’s healthy so it’s going to taste bad.”

One notable caveat here: any number of fast casual restaurant brands are aware of eat with your eyes magic and advertise food that looks sumptuous and crave-able – all beautifully presented with super strong appetite appeal. Except that the stark reality of what’s actually delivered on the plate is frequently so far removed from the ad imagery that it sets the stage for massive disenchantment and trust disruption.

• Truth matters. Social channel chronicling of disappointment spells out what’s at stake with consistent over promise and under deliver.

• If you convey it’s delicious, it better be delicious.

When education is your mission

Sweetgreen is a fast-food chain that understands the role of ethos and deeper meaning in their brand proposition and go-to-market behaviors. This belief system permeates every aspect of how the brand is presented and how the business operates to demonstrate its higher purpose values.

They recently announced a refresh of their brand as they amp up their climate impact bona fides while redefining what fast food is in context of why the company exists. Here’s how they presented the values that sit underneath their new brand identity:

1. “Food: sweetgreen wants to show that fast food can be synonymous with real food. They invested in new food photography, menu designs and packaging in an effort to highlight their food ethos, which celebrates seasonality, local sourcing and transparency. 
2. Sustainability: sweetgreen believes that climate change is the defining challenge of our generation. This new identity was designed to showcase sweetgreen’s sustainability initiatives and its ongoing journey to carbon neutrality.”

Education is the leading strategy at sweetgreen. They believe consumers benefit from knowing more about how their food is sourced, farmed and prepared with an eye towards healthier and higher-quality choices that remain friendly to the planet’s wellbeing.

Why help over hype is the way to go

We have entered a new era where brands with purpose and deeper meaning attached to how they operate have an extraordinary opportunity to create lasting, deeper connections with their core users. It’s no longer necessary to compete for attention through a constant drumbeat of hard selling product features.

If you’re committed to building the best possible product experience your capable of, the consumer will recognize and experience it. Why they keep coming back, and why they engage fully in your social channels has more to do with how you help them by enabling their passions and interests and aligning with shared values.

Education is a principle move to provide added value, and while doing so, enhance your relevance. It also respects the expert guide and coach role that brands should play in effective communication.

When you create marketing users want rather than avoid, the opportunity for conversation skyrockets. The relationship, therefore, is a journey not a transaction. Educating consumers is simply smart marketing and sets you up for successful engagement across all digital platforms. It automatically leans into your higher purpose, a point and position not lost on consumers who are looking for it.

If this sparks questions about refining your strategy and brand voice around education-forward outreach, we’d love to talk with you. Use this link to begin a conversation.

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The highest and best use of a strategic resource

If you were to boil down comments we get from clients on what they like about our work, why they entrust us with their marketing needs, a recurring theme pops up. They lean in on strategic guidance and informed perspective about how best to grow their brand and business.

Tactics like social, earned, owned and paid media all matter, and we have a proprietary approach to deploying them. However, the nuts and bolts from agency to agency tend to be common. So the real acid test of value falls into an area we describe as expert guidance. Clients are looking for transformational growth and strength from their brand value propositions. Given that objective, it’s understandable why research shows clients’ top priority for services they expect to gain advantage by outsourcing starts with strategic brand guidance.

Increasingly, clients believe if strategy isn’t dialed in correctly, everything that follows in outreach and sales support is a dice roll. So true. The fundamentals of category design, brand differentiation and positioning, brand narrative, persona analysis, key messaging, brand narrative and customer journey mapping all feed the right and most compelling story to tell.

• Without user relevance there can be no user resonance. More marketing budgets are wasted because the foundational strategies and consumer insights are not properly dialed-in and the effort fails to engage. Just because you’re able to drive media awareness with a generous budget doesn’t guarantee a winning outcome in the market you serve.

Our value almost always starts with insights we’ve honed over years of working in various categories – insights on consumer behavior, preferences and quirks on the path to purchase. It stands to reason if you have deep understanding of what core users care about, then you also have an opportunity to create content that’s meaningful and useful to them.

Brands are no longer sellers. The privilege of a consumer relationship must be earned through enabling consumer lifestyle interests and aspirations, operating as a valued partner on their life journey. When the relationship is restricted to transactional occasions, it casts the value entirely on product outcomes instead of cultivating a deeper bond and meaning. Suddenly, it’s harder to compete on anything except price. That’s due in part to the leveling up in production technologies and supply chain quality making it nearly impossible to maintain over time any kind of meaningful technical superiority.

Your brand is your secret sauce, and its emotional connectivity means everything to the success of your customer relationships and value. When you are hyper focused only in brand technology and processes, you can end up working at cross purposes with who is really running the business – your consumer.

Guidance on higher purpose, deeper meaning

How is it that some brands enjoy a solid foundation of passionate consumer advocacy and ambassadorship that enables the holy grail of marketing – word of mouth and social proof? Those brand minders know the business must invoke a higher purpose that transcends the product itself. People want something important to believe in.

Having a fantastic product experience is now table stakes. Competitive advantage lies in how brands align themselves with the beliefs, values and lifestyle interests their core users hold dear. Thus, higher purpose isn’t a nice to do, it is indeed mission critical.

Emergent started exploring higher purpose strategy years ago and we’ve become experts in how this strategic platform is best developed for client brands through our unique Brand Sustainability Analysis process. A stronger brand and inspired community of users results from having more to offer than simply a product inside a package. Want to be more meaningful to consumers? Then imbue your brand with deeper meaning.

This work comprises the core value proposition we bring to client marketing planning, ahead of the creative work to build compelling, powerful and emotionally resonant brand stories. This is all informed by a brand voice having more going for it than ad-centric cleverness in talking up features and benefits.

Given formulations, recipes, ingredient strategies are ultimately not all that wildly different brand to brand, if the brand voice is focused solely on product attributes, it inadvertently feeds sameness and commoditization in the category. The Beyond and Impossible burger formulations bare similarity as plant-based meat so the story instead is about taste indulgence and sustainability bona fides.

A touch for emotional storytelling

Words matter. Emotion sits at the front door of engagement for the very reason people are feeling creatures who think, not thinking creatures who feel. Emotion is a key driver of actions taken by consumers on the path to purchase because the non-linear, sub-conscious side of the brain is operating the levers of behavior.

• Knowing this, we build message maps with emotive words and stories that play to feelings more than facts. It is the feeling consumers have in the presence of your brand that tips them to purchase rather than analytical, logic-based arguments.

Imagine the pet food company that shares the emotional stories of pet transformation – pet lives that have been impacted and improved through the higher quality food they are ingesting. Compare that pound for pound with fact-based messaging on protein percentages or nutritional specsmanship and the impact on real engagement becomes crystal clear. Emotion wins every time.

Working to amplify symbolism and signaling

Purchases these days are largely symbolic flags of what consumers want the outside world to believe about them and what they care about. The symbols you are using on packaging, in your advertising and content become the visual shorthand consumers are looking for based on what they believe is important. For example:

• Sustainability
• Dietary outcomes like weight management and energy
• Health and wellness

People are visual creatures so use of visual symbolism on package, at the store shelf, in the web site are triggers that offer a form of signaling the consumer holds onto that aligns with their desires and preferences. Mapping a symbolism platform should be part of your marketing partner’s scope of work.

Brand experiences

Actions speak louder than words and for that reason, brand experiences become a significantly important tool in bringing the brand closer to users.

• Culinary events, for example, allow people to get hands on with their passion for creativity, taste experiences and indulgences.
• Health, wellness and fitness events amplify the interest in taking better care of one’s self and investing in self-improvement.
• Music is incredibly powerful for a brand association in moments of deep emotional connection.
• Educational events that provide useful lifestyle guidance or remove perceived risk through sampling lead to brand bonding moments.

To the extent brands have an opportunity to act as consumer coach and guide, it puts the brand in the right role of advisor rather than brand storytelling hero – the position rightfully owned by the consumer. The brand is Yoda to your user Luke Skywalker.

Trust creation and risk removal

Consumer purchase behaviors are 99.99999 percent of the time informed by their overwhelming need to avoid making a bad decision. No matter what you say, consumers will stay away if they perceive risk is at stake in a purchase.

Risk avoidance is a strong barrier to trial. Removing risk involves the following:

• Using the voices of outside credible experts to validate what you want people to believe.
• Bringing the powerful verification of real people testimonials in social channel posting.
• Familiarity bolsters trust, so awareness building is part of this process.
• Consistency in your behaviors and policies that place the customer first – they need to believe you are always acting in their best interests.
• Honesty is partially a voice and language effort but must be informed by a willingness to own mistakes – this is hard to do but it humanizes the brand.

Trust strategy should be an integral and fundamental component of strategic planning.

This eco-system of services, resources and programs comprises the highest and best use of your agency partnership. It might seem odd not to include excellence in communications tactics such as earned and social media. But for the most part agencies with a strong track record should excel in varying degrees with these fundamental practice areas. The work profiled above, however, is what separates the average from the exceptional and deploys the most powerful tools available to build brand value and consumer engagement.

If you are currently looking for fresh ideas and perspective for your business, use this link to open an informal conversation about your needs.

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Understanding the human being you’re talking to

People are not analytical, fact-based decision-making machines. We are feeling creatures who think, not thinking creatures who feel. It’s heart-over-head every time. Yet the vast majority of brand marketing outreach is based on a rational presentation of features and benefits.

The incredible formula.

The amazing ingredients.

How it’s faster, more efficient, less costly.

The shiny new food tech underneath.

But what if I told you that conscious thought does NOT inform the decisions consumers make. “For 50 years we’ve been using the wrong model. Emotional tugs trump rational pushes.” Dr. Robert Heath, Journal of Marketing Research

Uh oh.

Doesn’t matter what the product is either. Marketers are trained to serve up what they believe is the best, most logical, defensible and factually-compelling argument that can be made about why Brand X is better than Brand Y or Z. But this is upside down.

Here’s the essential truth as we know it: “Non-conscious intention produces both a conscious thought and action,” says Timothy Wilson, a Clinical Psychologist with the University of Virginia.

Ooh Kayy? So what does that mean?

The latest Neuroscience tell us why we’ve been unintentionally mis-managing marketing for a very long time. Turns out there are two brain systems at work in every person. System 1 is an effortless, always on, intuitive autopilot side of the brain. System 2 is the effortful, learning, rational, analytical side of the brain that unfortunately is inherently lazy. System 1 makes 98 percent of our decisions, leaving 2 percent for System 2 to ponder. Yes they work in tandem but System 1 is in charge.

Here is another way to understand the difference: System 1 can process 11 million bits of information per second. System 2 processes 40 bits of information per second. Gulp. Turns out the intuitive side of our brain is a lot smarter than we ever knew. That hunch or gut feel you had is probably right!

The impact on marketing best practices

System 1 responds to emotion because it uses emotion. Here’s how to think about it.

• Acts without deliberate analysis
• Generates our impressions, feelings and inclinations
• Exerts powerful influence on choices and judgments
• Drives the options we choose and originates the actions we take

Here are six essential ingredients for optimizing marketing outreach that track with what we now know about how people really operate and handle decisions.

1. Exposure: we automatically assign superiority to what is familiar. Communicating sticky, memorable phrases and ideas is a good thing.
2. Proof: we are drawn to prefer products and brands other people like and endorse.
3. Positive feelings: if we feel good about a brand, we assume it possesses an abundance of beneficial qualities.
4. Actions: people respond more readily to what you do more so than what you say. Brand experiences can show your heart.
5. Reciprocity: we are hard wired to reciprocate in kind when faced with clear generosity. Surprise and delight is more than a catch phrase.
6. Art: we respond well to artistic expression. How you use words, visuals, sounds and style matter.

The case for deeper brand meaning

Here at Emergent we’ve been talking about the importance of Higher Purpose to brand growth for years. On one level, Higher Purpose marketing is respectful of the fact that purchases are largely symbolic these days, a form of signaling our values and beliefs to others around us. Thus, Purpose creates added value to the consumers’ perceptions. However, Higher Purpose is also part of this emotion-driven eco-system that informs how people behave and take action.

“Science now proves what brand

strategists have always sensed. We

human beings have a need to believe in

and act upon something that’s greater than

ourselves… Let’s realize the significance

of this discovery and impress upon

everyone that a brand is a belief system.

Want greater rewards? Then impart your

brand with deeper meaning…” – Emergent

Give consumers something they can believe in – advocate for – that reflects their values and beliefs. This is how you create a community of ambassadors who will spread the good word about your brand and business. Transactional relationships between brands and users are a thing of the past. Your brand value proposition should extend beyond the product itself. It also fits snugly with our understanding of how to communicate successfully to System 1.

If you have more questions about how this revelation might impact your go-to-market plans, use this link to start an informal conversation.

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Are you prepared for the shift in consumer demands?

• Advancing greenhouse gas (GHG) levels.
• Accelerating impacts of climate change.
• Our GHG emission-heavy meat and agricultural production system.
• Evolving consumer expectations and food choices linked to climate outcomes.
• Global food scarcity.
• Are all these issues inter-connected? Yes.
• Is the consumer about to grasp this and connect these dots?

Yes.

• Food, beverage and lifestyle categories are ground zero on a major culture shift now underway that redefines the meaning of sustainability and will recast the value proposition for nearly every brand in the business.

Can you see it coming?

You already know sustainability has been a growing issue for consumers. However, as a purchase consideration sustainability is morphing to focus on climate threat impacts. This will change the value proposition and strength vs. weakness of brands both CPG and retail. A new class of Eco-Sumer is emerging that sees the checkout counter as a voting booth to signal their demand for change and flag their activism on these vital quality of life issues. Their significant purchasing power will put pressure on companies to act. Are they on your strategic planning radar?

The early stages of change

Sustainability has moved past its teenage years and is maturing. In 2018 Nielsen predicted consumers would spend $150 billion on “eco-friendly” products by 2021. However, the sands of adoption are shifting underneath as the rapidly rising consumer concern about agriculture and food production’s link to GHG emissions gets traction.

Soon the consumer will come to understand that agriculture is the second leading producer of greenhouse gas. Specifically, meat production accounts for 65 percent of the world’s nitrous oxide, a gas with a global warming impact 296 times greater per pound than carbon dioxide. What’s more, total emissions from agriculture are forecasted to grow 80 percent by 2050 due to a significant increase in demand for meat and dairy products.

Emergent’s research barometer is tracking the evolution and expansion of consumer sentiment on sustainability. This issue increasingly has bearing on brand value propositions. The consumer view of sustainability’s relevance has already expanded to include assessments of transparency, ingredient sourcing, food safety, animal welfare, employee treatment and now carbon footprint. Important for you to consider: this is quickly becoming a standard yardstick of product and retail experience quality.

Culture shift leads to behavior shift

According to Forrester research, half of U.S. adults are operating now in various shades of green and are demanding accountability from brands and retailers, while 32 percent of consumers are going out of their way to purchase brands that are dedicated to reducing climate impact.

Meanwhile the Edelman Trust Barometer reports that 72 percent of consumers are concerned about climate chaos and 40 percent are even fearful of it. The Pandemic has shined a spotlight on vulnerability between human health and the ongoing destruction of our wildlife eco-system which helps tamp down disease spread as more and more land is repurposed for industrial agriculture and meat production. Rainforest, the world’s largest carbon sink, is disappearing at the rate of an acre a second for this reason.

A 2019 Kearney study concluded 71 percent of consumers take protecting the environment into consideration when shopping. By mid 2020 that number had run up to 83 percent. With increased awareness of our food systems’ culpability in climate threat, consumers will be looking for guidance and direction from brands on their efforts to mitigate the problem.

Increasingly popular “Net Zero” commitments are only the beginning. Consumers will soon begin to scrutinize those moves, looking for consistency across the waterfront of company operations not only on energy and water use, but also how the food ingredient supply chain is factored into carbon footprint.

• Climate and sustainability initiatives, commitments, practices and standards are about to become a launch pad for business competitive advantage.

The coming moment of truth: shopping friction

How do brands and retailers help consumers make a sustainability decision? There is no credible mechanism for determining how climate positive a brand or retailer is. When rules are drawn up internally by companies, the metrics applied around different definitions of climate impact will inevitably vary brand to brand.

Lack of any central oversight or common benchmarks makes consistency nearly impossible to achieve. Consumers are going to have a hard time assessing which claims are meaningful from those that are not. When a best practices vacuum like this exists, there will always be third parties wading in to fill it. Pundits and self-styled experts will offer their views on good vs. bad and so the race to secure credible guidance will begin.

• We know consumer expectations are already on the rise. Now is the time to create a set of industry-wide standards on carbon footprint and define which elements of performance need to be included in assessing climate impact scores.

First step: holistic analysis

This isn’t just about clean energy. Or mitigating water resource over-use. A 360-degree evaluation will be required to consider supply chain, ingredients standards, operations, manufacturing, company culture, employee policies, brand higher purpose, cause relationships, plus the communication of standards to stakeholders, consumers, retailers and investors.

Investor and regulatory change coming

The Kearney study also revealed that 77 percent of investors now see climate change as a consideration in their valuation decisions. Further 79 percent of investors believe that regulatory changes will be a factor in their decision-making over the next three years.

There’s no question the new Administration is making climate a top priority and public policy will favor companies that get ahead of this. The Securities and Exchange Commission has already set up a task force to monitor ESG (Environment, Social, Governance) misconduct of publicly traded companies. At some point there will be regulations aimed directly at disclosing emissions.

Where to go from here

It’s time for the Climate Audit, a thorough evaluation of company operations, good and bad, that contribute to (or remove) emissions either directly or through vendors, distribution and supply chain.

• Greenwashing is going to be a key area of vulnerability for organizations that take a half-baked stance on emissions and simply try to ride the wave of consumer sentiment by invoking climate faithfulness. Half measures are likely to be exposed so it is important to get it right and leave no stone unturned in evaluating where emissions might come from and how best to turn it down or off.

The rationale for these changes and shifts is compelling:

“Carbon dioxide (CO2) and methane levels in the atmosphere continued to rise in 2020, with CO2 level reaching their highest point in 3.6 million years, according to calculations by the National Oceanic and Atmospheric Administration. The barrier was broken despite a reduction in expected emissions caused by the COVID-19 pandemic.” – Jordan Freiman, CBS News

This CBS report was startling given the slow-down in commuting and travel due to the pandemic. It underscores that GHG emissions from fossil-fueled transportation are still only a portion of contributing factors to global warming. Agriculture is a big one and getting bigger. This revelation will put food choice at the center of the bull’s eye for consumers who use their wallets and brand preferences to vote their values.

If you find this conversation meaningful and would like to discuss how climate impact can be properly and successfully addressed in your organization, use this link to open a conversation.

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