How’s your sustainability practices’ steering right now?

Last year was the warmest ever for our planet. We continue to pump more greenhouse gases into the atmosphere anyway. Consumer sustainability concerns are evolving and it’s about to take a hard turn. Are you ready to navigate? Stay with us while we peel the onion on how we got here and what’s coming.

In June of 2020 Emergent started working with a new food technology start-up called Air Protein, founded by MIT physicist Dr. Lisa Dyson. We came onboard to help install the strategic building blocks for a new category, brand and business. Dyson’s ground-breaking mission to create meat proteins that were identical in every way to the animal version without any animal involved in making them. Instead, she borrowed a chapter in protein creation research from NASA that launched during the Apollo Mission era – aimed at figuring out how to feed astronauts during extended space travel.

The basis for this ground-breaking work was emerging evidence responding to the detrimental impacts of livestock farming and industrial agriculture on our environment. We were in a word, awestruck, by the gravity of the environmental challenges and convinced that Dr. Dyson’s “carbon transformation” technology held great promise for a more sustainable way to create meat proteins that didn’t carry the eating experience challenges of plant-based options.

• The more study we did through our relationship with this important new company, the more persuaded we became that the entire food and beverage industry needed to step up on the journey to more sustainable practices. Admittedly, we were likely ahead of the curve at that time on the details that sit underneath why our food system (industrial agriculture) is a significant contributor to carbon emissions.

By late 2020 and we had amassed enough secondary research on the emerging issue of climate impact and sustainability to draw some conclusions. First, consumers were responding with some alarm to stories of global warming outcomes and rising greenhouse gas levels. Second, it was clear to us that food, beverage and retail brands were trying to figure out what this meant to the business and how they should navigate the issue.

Early in 2021 we responded by creating the Brand Sustainability Solution (BSS) platform designed to help frame the key challenges, compile what we knew about evolving consumer preferences and tie it all together with a five-point sustainability readiness best practices guide.

At the time our primary conclusions were:

1. The food system is a significant contributor to greenhouse gases, primarily from raising livestock for protein.
2. Consumers are trying to identify sustainable choices, but brands were behind the curve in responding.
3. Businesses were unsure of the correct path to sustainability readiness. Even what readiness consisted of was hotly debated.

Today we stand at the edge of a significant change

Sustainability impacts to date have been defined within a framework of Systems 1, 2 and 3 impacts. System 1 and 2 are both within an organization’s own ability to manage and make changes whether that be energy use, resource consumption or packaging upgrades. However, studies have confirmed that 80 to 90 percent of companies’ carbon emission challenges are in System 3 – outside their direct control and in the hands of suppliers. In sum, the primary source of greenhouse gas emissions for food, beverage brands and retailers are in the supply chain. Said another way, how products are produced, the ingredients that go into them.

Now comes the tough part

Consumers are increasingly connecting the dots between sourcing, ingredients and emissions. As have regulators and other influential players including media. Here’s what the New York Times recently had to say: “Supply chain hurdles complicate food companies’ climate pledges – The bulk of emissions — in many cases more than 90 percent — come from the companies’ supply chains. In other words, the cows and wheat used to make burgers and cereal.”

• Witness the explosion of interest in regenerative farming practices as brands seek to mitigate the System 3 conditions. Goes without saying, we’ve reported time and again that scientific assessments are vital to this process for the simple reason you can’t know where you’re going until you know where you are to start with.

Now we enter the era of emissions reporting. Businesses will need to conduct credible System 3 assessments of current conditions, report on that data and also set realistic targets over time for mitigating GHG (greenhouse gas) contributions. The operative word here is reporting. People want to know what products constitute a more sustainable choice, and the conditions underneath the supply chain will be a determining factor in that understanding.

Our analysis over time of where companies are on the path

For 18 months we conducted questionnaire assessments with numerous CPGs and retailers on their sustainability journey. We learned:

• Science based System 3 assessments were lacking along with the mitigation goals that accompany them.

• A significant disconnect between sustainability investments and policies, and programs designed to convey that progress to all stakeholders, especially consumers.

• A pervasive presence of siloed conditions inside organizations where newly formed sustainability teams were working separately from marketing, where outreach and communications resources usually reside.

Far too many brands are still preoccupied with the low hanging fruit of say recyclable packaging when we know that the vast majority of emission issues are in the ingredient supply chain. It’s time to make science-based assessment of System 3 a core part of the sustainability management discourse, and to connect that analysis with reasonable steps to improve through partnerships and goal setting among suppliers, farms and other actors along the product creation path.

What consumers want

Truth, transparency and honesty from the brands they care about, backed up with credible, third-party verified data on current performance and a clear path forward for setting sustainability improvement goals.

The hard turn

Transparency and reporting of emissions status, visibility to science-based analysis and disclosure of current conditions followed by reasonable targets over time for advancements. Thus, a call for brands and businesses to collaborate with supply chain partners to create a virtuous ecosystem designed to bring all participants along on the path.

Importantly, communicating this work to all stakeholders, too.

Marketplace competitive leverage

Progressive brands get the urgency of this and the opportunity it presents. As consumers want to make more sustainable choices, this presents an opportunity for category leadership in sustainability best practices. And by doing so to gain lasting competitive marketplace advantage as a best practices leader.

The downside of pushing this off

As the call for clear emissions reporting and standards gains traction, brands will increasingly be held to account on their progress or lack thereof. Those who choose to wax on about progress in System 1 and 2 at the expense of dealing with the more complex and taxing conditions in the supply chain will risk being called out for half measures and greenwashing.

As consumers start to look for this information from brands and on product packaging, those operating without that data will become conspicuous regardless the reasons. This is an opportunity to seize the day and lead the category towards better practices and outcomes for people and the planet.

The future ahead

What’s notable now, however, is the absence of clear standards that help prevent a descent into the wild west where brands and businesses decide independently what constitutes an acceptable outcome. Third party recognized frames for different businesses are essential. It will come. Here’s the evolutionary changes we expect to see:

• Carbon emission labeling
• Development of recognized standards of performance
• Best practices in supply chain emissions management

Sustainability guidance for 2024

The most glaring error we’ve encountered on this journey is the absence of robust efforts to communicate. Too many brands labor on these issues behind the corporate curtain without a strategic, creative program in place to let consumers and other stakeholders know what you’re doing. Some may be fearful of getting called out for not going fast enough.

We think its time to worry more about helping people understand the great efforts you’re making to map a more sustainable future. In fact, we’d say you have already acquired a responsibility to do this early and often.

Should you decide your organization would benefit from guidance on better managing these changes and the communications tools needed to enhance your effectiveness in getting the word out, use the link below to ask questions and start an informal conversation. We’d love to help you sort out the right path, message and comms tools.

Looking for more food for thought? Subscribe to the Emerging Trends Report.

Confronting the immutable truths ahead

This report is ultimately a call for renewal of purpose and commitment to sustainability policies, principles and behaviors that consumers are increasingly demanding. It is also a roadmap for alternative food technologies to regain momentum after a period of honest reassessment on the fundamentals of taste, nutritional composition, price and brand sustainability narrative.

Stay tuned for more guidance – but first a look at the current conflagration.

Two steps forward. One step back.

At the moment we are in the midst of a tug of war on sustainability commitments and performance. Despite mounting evidence of environmental trouble, some organizations over inflate their progress (greenwashing), while others green-hush by downplaying practices or abandoning them all together.

Progressive large food industry organizations like ADM and PepsiCo continue to lead the charge, working to secure improvements at the farm level. Others such as McDonald’s, who earlier addressed their ESG commitments head on have receded, horns pulling inward. Further some brands tempt a flame out on the path to redemption by intentionally hiding the ESG candle of achievement, preferring to operate in the dim shadows away from public or media attention.

We inquire: what’s going on here

We are confronted daily with the epic impacts of climate change. The situation is worsening. Evidence is all around us that carbon emissions and the resulting planet warming outcome is playing havoc with the balance of nature. Yet political considerations remain powerful deterrents to some organizations, apparently afraid of special interest criticism or concerned their current actions will be deemed subpar by climate watchdogs.

The fossil fuel industry tries to preserve the status quo by casting doubt on the efficacy of climate science. Some political groups snarl over “woke” capitalism even as our global “Rome” burns around us as violins play Emperor Nero style.

In a recent Fast Company article about current disinformation tactics taking aim at the plant-based meat industry, Sara Aniano, an analyst at the Anti-Defamation League’s Center on Extremism, was quoted stating, “Anything that strays from what’s deemed natural, primal, or masculine is automatically deemed dangerous. Innovative food products are seen as a dystopian consequence of leftist politics.”

Yet we know this July was officially the hottest on record for planet earth.

Our food system already represents nearly 24% of global greenhouse gas emissions, more than all transportation systems combined. Increasingly, people believe companies have an obligation to address and mitigate System 3 (GHG) emissions now rather than wait for any future regulatory mandate. Moreover, there are only 7 more harvests on the run-up to 2030 as we face the prospect of irreversible climate change impacts if emission reductions aren’t realized.

Meanwhile “fake it ‘til you make it” greenwashing gets harder to pull off as deep knowledge about credible sustainability best practices becomes more pervasive among media and consumers. No matter what, the in-parallel denier criticisms are getting more difficult to defend in the midst of real-world crisis after crisis related to climate change impacts that manifest in floods, droughts, hot oceans and wildfires. The reality of climate turmoil is at humanity’s proverbial front door now.

What comes first: the sustainability chicken or the egg?

Stated another way which must come first, actions taken by brands and business to mitigate environmental impacts? Or second, the universal acceptance of these remedies as normal, practical, required and sought after by every conceivable audience and constituency a business might encounter?

• Can you be a responsible sustainability transition plan implementer, and also present your organization publicly as a neutral Switzerland on the climate policy-making front?

No.

“One of the most important and challenging missions that I think one company could try to do, which is basically to replace animal farming as the primary source of protein production for humanity, is very much the reason why we started the company,” said Andre Menzes, CEO of alt. chicken protein company, Tindle Foods.

Despite Tindle’s enviable progress, why the current backslide for plant-based meat?

The media flourish over “plant-based meat for meat lovers” saw the Impossible and Beyond Meat businesses rapidly accelerate; both brands hoping to jump the normal new category creation arc and leap instantly into mainstream acceptance. This required attracting consumers who are more price sensitive, more demanding on taste and less “environmental issues” motivated at a time when inflation was running up the prices of groceries right and left.

Weaknesses in the brand story around the reality of “healthier” (sodium?) left the door open to  “highly processed” attacks that stole precedence over the earlier perceptions of meat-like eating experience. Hype machinery ground to halt when declining sales performance tarnished the golden meat-from-plants goose. Revenue for Beyond Meat plunged 30.5% in the second quarter this year, prompting CEO Ethan Brown to call (finally!!) for more education on their better-for-you improvements and sustainability bona fides.

So is plant-based a fading fad? Absolutely not. This is a blip as brands optimize and improve taste, the ultimate decider on marketplace traction alongside input cost management to finally reach pricing parity.

• Plant-based must win more fans.
• Precision fermentation deserves its protein game-changing shot.
• Cultivated meat will earn its time in the shining retail sun.

Why? We simply can’t continue to endlessly add more animals as the primary source of protein in our diets. Animal meat on the menu isn’t going away. However, the composition of our dietary decisions and choices should adjust. Improvements from new protein technologies that come at a fraction of the environmental impacts of conventional food creation deserve our support.

Still, it’s a noisy fickle environment right now…

Why are companies afraid to plant their sustainability flag in the sand?

Escalating impacts surround the planet begging for mitigation attention.

Consumers increasingly demand action from business to solve the sustainability crisis.

Plant-based takes a step back amid criticism of its formula composition bona fides.

(Heavy sigh)

Landing on the side of the angels

• What is the essential truth here? For one, our food system is an actor in the carbon emissions build-up. The impact of global warming is escalating, and you can see the tipping point on the horizon. Food technologies that answer the crisis with a fraction of conventional food system carbon impacts are coming but desperately need more investment to close the last mile to commercialization.

• Sustainability performance matters. Science-based LCA level analysis of carbon footprints should be happening everywhere because you can’t know where you’re going until you know where you are. Boulder, CO based Meati, with its novel mycelium-based meat products, is already in retail distribution with an eye-opener on replicating the eating experience of muscle meat cuts of chicken and beef. Their story is a sustainable solution.

• Brands that look to help address the food and beverage industry’s carbon footprint are operating on the side of the angels and should do so fearlessly knowing the consumer is going on the journey with them. We have little time to solve the industry’s climate impacts so special interests should put down the quill of complaint and take up the mantle of participating in advancing change, not resisting it.

Guidance in the months ahead

• Taste and price optimization are job one. It’s table stakes for growth.
• Investments in Sustainability education for consumers and stakeholders should get more energy and funding, right now.
• We have ample data and evidence that sustainability readiness commitments backed with consumer-facing outreach to inform stakeholders of this progress is a recipe for balance sheet benefits and marketplace competitive advantage.

Can we climb back on the horse of wisdom knowing these shifts are vital to keeping our planet safe, and to nourishing people affordably in the future?

Sustainability isn’t a hassle, it’s a business-building opportunity if we play our collective cards right.

Your brand can make a difference. Yes, sound strategy is needed. Linking sustainability expertise with marketing know-how is a loop that must be closed to gain business benefits from climate-responsible performance.

• Let’s renew our vows at the altar of sustainable best practices. Time is not on our side, and we have policy ground to cover in a relatively short span of time.

Can we agree change is needed and desirable? We have a responsibility here to protect the future for our families and many others coming in the decades ahead. We have designed the recipe for success. We need to implement and keep at it as we move from friction around the birth of new ideas to transformation while new behaviors take root.

If you believe further guidance and fresh thinking on the path to sustainability performance excellence is in order, use this link to ask questions or start an informal conversation. We’re here to help.

Looking for more food for thought? Subscribe to the Emerging Trends Report.

Awareness drives preference for sustainable choice

After 15 months of collecting data from a wide variety of companies that participated in our Sustainability Readiness assessment questionnaire, we can confirm the most common area of shortfall and weakness in sustainability performance is communications.

We’ve consistently encountered a disconnect between yeoman efforts by companies to improve their environmental and emissions outcomes, but too often without the integrated communications strategies that effectively tell that story to consumers and stakeholders.

It may be due to pervasive silo conditions where sustainability teams work separately from marketing, or the more intentional ‘greenhushing’ out of fear any sunlight might expose sustainability practices to criticism. However you slice it, without a robust, integrated communications strategy, it is virtually impossible to convert sustainability investments into related sales and share growth for the very reason people aren’t aware of what the brand has accomplished.

Building sustainability awareness

Without top-of-mind awareness your brand’s sustainability story isn’t considered. Awareness is also elusive and fleeting. It can be here today and gone tomorrow; thus, why continuous investments are required to keep your sustainability story front and center with the audience most likely to resonate to your environmental mission.

To be clear, aggregating eyeballs as the ultimate (and only) goal could overshadow some of the most important principles governing consumer engagement and consideration. Your brand’s higher purpose should inhabit every strategic decision you make when organizing an effective awareness-building strategy.

Note: be sure to check out the best practice example at the end of this article.

Earlier in my career while at Ogilvy & Mather, we always considered awareness purely in mass media terms, balanced with the twin towers of reach and frequency. In those days it was about hammering home a message in as many channels as budget would permit, as many times as the available media dollar could acquire. Tonnage in media spend was a thing and the share-of-voice advantage went to larger spenders. Hangover from this era of brand message carpet bombing still, unfortunately, exists.

Mass media is a relic. We have clear digital advantages today that level the competitive voice playing field for smaller brands and budgets. Social channels also enable a much closer, deeper relationship and dialogue with specialized consumer tribes. We can accentuate the best practices of audience focus and message customization because broadly targeted appeals in mass channels no longer apply.

Here we weigh in on Ten Steps to Better Sustainability Awareness to engage and endear your stakeholders.

1. Be where your audience is

Sounds a little like water is wet, but we often find that insight research doesn’t get the respect or attention it deserves. It’s how we get underneath the media consumption habits and preferences of a brand’s most prolific users. Hunches and assumptions here can divert outreach priorities down the wrong channels. Your goal is to emphasize the media they consume most often. You have to probe to know what that really looks like.

2. Show why you’re committed

The relationship you are trying to build with people is based on solving sustainability challenges and operating as a mirror to their beliefs and values on the journey. Your brand should be positioned as an enabler of their sustainable lifestyle aspirations, as well as an educator focused on helping them determine sustainable choices. Relevance to their environmental concerns is key to engagement and it will always be about them and not brand self-promotion, touting good corporate citizenship accolades.

3. Create “useful” branded content

Every time you solve a sustainability barrier or enable an aspirational activity people care about (you have to study to know what those activities might be) you earn trust, the most important component of any brand-to-consumer relationship. The litmus test for your content is its usefulness in helping or enabling your audience on the path to a sustainable lifestyle. Your consumer is always the story hero and the role your brand plays is always as coach and guide.

4. Take advantage of the publishing platforms

You should be present early and often in the right channels, depending on your category and audience priorities. YouTube, Instagram, LinkedIn, Medium, TikTok and Facebook can be addressed in optimized content that best fits the format of each platform. How you show up ought to be distinctive of your brand voice and personality – and focused on engagement, not re-treading old mass-marketing and self-promotion tactics.

5. Humanize your brand sustainability story

No corporate-speak or science-driven dissertation please. Instead present a human, conversational voice. If you’ve done your homework on brand archetype and narrative, your highly differentiated persona will shine through. Emotion is imperative and sustainability is an emotion-driven subject. This is a time to amplify your beliefs, values, commitments, standards and informed opinions on relevant sustainability performance goals and its value to your users’ lives.

6. Be a mirror

People like to see themselves in your stories, so hold up a mirror to them. Employ language they use (you have to know them to speak to them effectively). Your goal in storytelling is to generate a reflection of their concerns and motivations. It’s easier to talk about yourself, but that’s almost always going to lead to a disconnect because it means they are no longer the hero of the story. Determine what their sustainability concerns are, then speak to those priorities.

7. Storytelling

Stories are 22 times more likely to be remembered than fact telling. We love stories because we can see ourselves in the characters. We can relate to fears, struggles, challenges and triumphs. Wrap key messages inside stories where people can see themselves. Fact-based downloads won’t have the same stickiness and emotional staying power.

8. Focus on social media channels

Proof. Validation. Verification of what you want people to believe. Social media can be a rich trove of shared experience and advocacy. The voices of users carry more credibility than what your brand claims. You should encourage and facilitate sharing in the social platforms your customers use most often. Brand-created content should focus on education, help and emotion ahead of promotion.

9. Leverage your expertise

As a subject matter expert, you have a forum and a platform to be the knowledgeable guide. Elevate your voice and perspective on the larger more compelling sustainability issues your audience cares about – and then weigh in. Podcasts can be an excellent channel for this type of communication.

10. Harness editorial credibility

Beyond the digital paid advertising platforms of pay-per-click and paid social, editorial media placement is a powerful tool to deploy because it is inherently more trusted and credible. It stands as a form of education and information vs. straight promotion. Editorial requires focus on the problem solving and thus newsworthy aspects of what your brand has accomplished.

The Promised Example: sustainability awareness and education in action

Putting some of our Ten Steps to Better Sustainability Awareness to work, Emergent recently produced a sustainability education and information forum for food industry stakeholders.

(Read on to learn how this valuable content will be available to you.)

Here’s how it worked:

Current reports on the progress of the food industry’s sustainability transition planning show a gap between intention and measurable outcomes. To help bring the food and beverage industry further along the continuum, we recruited a panel of experts from some of the most influential organizations leading sustainability readiness and improvement.

Our theme: “Sustainability and the Future of Food” began as a live presentation at the Food Marketing Institute’s industry executive gathering, the MidWinter Executive Conference in January 2023. Here senior food industry leadership teams, both CPG brand and retailers, gathered to focus on key issues facing the industry in the year ahead.

Our experts included sustainability executives and senior executives from the leading organizations mapping the future of sustainability performance including PepsiCo, ADM, Change Foods (an emerging new technology player in precision fermentation tech), The Good Food Institute, the alternative protein’s industry association, and the team at Boston Consulting Group that produced landmark studies on the growth and potential impact of sustainable food technologies.

The sustainability messaging focus:

• Elevate understanding of the foundational reasons why the global food system is a significant contributor to climate threat (not sustainable), and the innovative, novel solutions that will forever shift where food comes from (future of food) and how it is produced.

• Reveal the foundational elements of sustainability best practices. Discuss how organizations can address the complex requirements for new standards, policies and systems required to decarbonize their businesses while offering consumers healthier, better tasting, affordable and sustainable food solutions.

• Introduce the face of new food production technologies now taking shape that are not dependent on carbon heavy, inefficient and vulnerable legacy supply chains to create the proteins necessary to nourish a growing global population.

• Inspire a path forward for evolutionary change that will maintain the U.S. food industry’s historic global leadership in bringing new solutions to the most challenging conditions the food industry has ever faced; addressing a sustainability mission that must be achieved to avoid the economic and societal impacts of future climate damage.

Emergent then extended the panel discussion to editorial media, with the speakers recently reprising their stories on readiness best practices and emerging technology for a two-hour, four-part video on best practices and the future of food. The series was produced in collaboration with Food Navigator. The videos will air in weekly installments early this summer at Food Navigator’s website.

The food industry’s sustainability concerns and activations are ramping up as consumer sentiment and interest is already steps ahead.

What are your next moves?

If you think it’s time to refresh your sustainability awareness- and engagement-generating strategies and investments, use this link and let’s talk about how best to design improvements.

Looking for more food for thought? Subscribe to the Emerging Trends Report.

The one that knows the secret to sustainability success…

The stakes in 2022 are high. The marketplace victory could be substantial. Who will win the sustainability derby and emerge as the pet category leader in environmental readiness?

Never before has so much been at stake so quickly as consumer culture change pushes sustainability to the front as a core driver of marketplace competitive advantage. This is a tougher hill to climb because it’s not about legacy advantages such as company size or distribution or ingredient quality. The outcome may bring a new cadre of progressive brands that gain incremental market share while the deniers and laggards face brand equity and value proposition declines.

• It won’t be the biggest budget – this isn’t about balance sheet heft
• It won’t be the loudest – this isn’t about media tonnage
• It won’t be the fastest – this isn’t just a pole race

Why sustainability is a pet category game changer

The Pandemic has served as a catalyst to refocus consumer priorities on more meaningful issues and conditions that help protect the world around us as much as they benefit ourselves and our pets. This development is occurring amidst increasingly obvious global warming events and signs of escalating climate chaos. Consumer research shows a growing priority placed on brand sustainability performance. Underneath we find increased awareness that our food system, both human and pet, is a key contributor to greenhouse gas impacts.

• According to a recent study conducted by Emergent’s insight research partner Brand Experience Group, 66% of consumers today are either passionate or deeply concerned about sustainability. The consumer is already there. It’s time for the pet industry to answer this call to action.

Rapidly changing consumer sentiment is pushing sustainability commitments and policies to the forefront. Along with it is a form of shopping friction bubbling up because there’s no simple way to sort one brand from another on sustainability bona fides. Consumers want to know what a more sustainable brand choice looks like. Who will step forward with the right, credible, trustworthy story? Which retailers will surface to offer guidance on more sustainable choices in their stores?

It’s time for a new pet brand mantra anyway

For more than a decade the premium pet food business has been focused on a short list of competitive arguments around grain free, percentages of meat in the formula and the relevance of an ancestral diet. It’s time to begin a new conversation with pet parents that isn’t another rehash of the tropes that have been popular over the long tail of the pet food premiumization revolution.

Sustainability is a welcome departure to a new brand narrative, one that is values driven. It may also be a catalyst for a wave of product innovation that changes the ingredient complexion of the pet food industry. The recent joint venture announcement between Hill’s and Bond pet foods, a pioneer in precision fermentation technology, may presage the dawn of meat proteins that don’t originate with an animal, bird or fish. The sustainable ingredient story there will be unprecedented.

Where’s the beef?

Well, it’s on top of the list of carbon generators from ag sources. At 30% of global greenhouse gas contributions, agriculture is the number two worldwide contributor to global warming. When you look underneath the hood, you find that the top two sources of GHG from agriculture are beef and lamb production. It stands to reason that pet food has a job to do in raising the bar for improvements over time – both in promoting regenerative farming practices and sourcing from environmentally-responsible suppliers with a more sustainable story to tell.

The secret to sustainability success

Fly right.

The essential sustainability truth in pet food is revealed in the supply chain.

• Meat forward diets mean carbon impacts are embedded in the product formulation.
• Pet food makes up between 25 and 30% of the entire environmental impact of domestic meat consumption.
• Meat centric pet diets generate approximately 64 million tons of carbon dioxide, equivalent to driving 13.6 million cars for a year, according to Gregory Okin, a UCLA Professor who published an environmental impact study on pet food in the PLOS ONE Journal.

The road to pet brand sustainability readiness begins with a scientific, data-driven analysis of carbon footprint. From that foundation comes the ability to establish science-based mitigation and improvement targets over time. It’s important to note that every brand in the business faces similar sustainability challenges. The advantage goes to those who will do the science-based analysis to understand where the business is today before creating the roadmap for where it will go tomorrow and beyond.

The science-based approach helps brands avoid the trap of greenwashing by bringing data informed benchmarks and commitments. This reality benchmark in the sustainability conversation provides the brand with a credible, trustworthy platform on which to build its narrative. Invoking sustainability claims without the science assessment, knowing the challenges exist in the supply chain, is risky territory. Media and consumers are getting smarter about what constitutes credible moves to improve sustainability readiness vs. less genuine apple-polish style messaging.

Who is going to be the first with carbon footprint labeling?

Granted this is a new conversation to start with pet parents. Just as consumers may not fully understand what the protein percentage numbers on a bag truly mean, they may also lack deep knowledge of carbon scores. Nonetheless, when a brand anchors its narrative in real researched targets, it gains immediate cachet for bringing new belief points to the stage.

The initial footprint statement is likely to be aligned with standards and commitments for change over time, so the brand users know what the company is planning for improvement. No one expects a brand to be perfect right out of the gate. No brand will be for that matter. However, the transparency and clarity delivered will measurably advance the brand’s position as “the more sustainable choice.”

Whoever grabs first-mover status here is likely to be a perceptual and voice leader in the conversation around pet food sustainability. We can imagine the remarkable anchor this will create for storytelling at Global and Superzoo, especially when you can establish a unique state of the art for sustainable practices in the industry.

Anatomy of a pet brand sustainability winner

The crown for sustainability leader will likely pass to the pet brand that steps in with the greatest integrity and authenticity.

• Begins with science-based carbon assessment and data informed mitigation targets.
• Grounded in insight research that reveals the areas of sustainable performance that matter the most to brand users.
• Backed by infrastructure to properly measure the business impacts of sustainability investments.
• Supported with a robust communications platform to tell the brand’s sustainability bona fides to key consumer and stakeholder audiences.

If you think sustainability matters in the year ahead to competitive advantage in the pet brand market, we would invite a conversation to discuss how we can help build your sustainable brand platform and story. Use this link to learn more in our Brand Sustainability Solution program guide.

Looking for more food for thought? Subscribe to the Emerging Trends Report.

Analysis reveals aspirations may mask reality

A summary analysis of recently completed sustainability readiness questionnaires has revealed a measurable disconnect for participating brands between their sustainability activity and authentic performance. Based on results scoring, brands responding to Emergent’s initial questionnaire routinely over-estimate current sustainability readiness conditions by an average of 25%, ahead of a reality-check discussion to pressure test the survey responses.

The first step in Emergent’s Brand Sustainability Solution program starts with answers to a Sustainability Readiness questionnaire. It is designed to establish a baseline understanding of where a brand or business currently sits on the readiness pathway.

The Sustainability Readiness questionnaire self-evaluation process is focused on four key areas of sustainability performance:

1. Scientific, data informed review of carbon footprint and Lifecycle Analysis (LCA)
2. Consumer insight research to determine what areas of sustainability solution and commitment are most important to brand consumers
3. Establishing metrics to track business performance and outcomes of sustainability investments and commitments
4. Marketing communications strategies and tactics to tell the brand sustainability readiness story to consumers and relevant stakeholders

Emergent analyzes the questionnaire responses and produces a readiness scoring report for review with the individual or team submitting the evaluation. Invariably through more detailed conversation around outcomes and existing company behaviors, policies and mitigation activities, a different picture begins to emerge!

Aspiration can skew reality

Sustainability is now one of the most significant transformational strategies impacting brand communication and business growth. It is a key driver of competitive marketplace advantage. Why? Because over 66% of consumers now care deeply about more sustainable choices in the products they buy. People have become aware of the connection between food production, food ingredients, and potential negative impacts on the environment.

As companies prioritize sustainability and seek to answer this cultural shift in consumer sentiment, the priority to make performance claims can at times color actual readiness status. The Brand Sustainability Solution process is designed to determine quantifiable carbon targets, mitigation policies and develop solutions to truly walk the walk that supports credibility when talking the sustainability talk.

A recent investigative news report on McDonald’s sustainability misfires reveals why the authentic baseline carbon footprint assessment and related mitigation policies are so important to avoiding the possibility of greenwashing risks and scrutiny.

Corporate enthusiasm for claiming sustainable bona fides at times can obscure the correct and proper evaluation of specific actions the company must undertake to manage its carbon impact, evaluate resource consumption alongside energy use, and track backwards through the supply chain.

You can’t know where you are going until you know where you are

The challenges begin at the front door of science-based, data driven carbon footprint analysis that often remains untouched and unfunded on the to-do list. It isn’t possible to verify the company’s current readiness state or to establish quantifiable benchmarks for improvement over time without this review. Establishing baseline sustainability performance measurement will inform every aspect of readiness and the optimal brand communication that follows it.

More often than not, we’ve found that brand sustainability assessment is limited to low hanging fruit solutions such as improved packaging or reduced energy use. Most of the significant sustainability challenges exist in the supply chain, where food ingredients often deliver an outsized climate wallop. How come?

Agriculture is the second largest source of greenhouse gas (GHG) in the environment and the largest user of land and water resources. Within the snapshot of agriculture’s impact on climate, raising livestock for food is by far and away the highest GHG contributor. It is led by ruminant animals including beef, lamb and dairy in the form of cheesemaking. The combination of the animals themselves combined with re-purposed land use, natural resource over-consumption and raising crops to feed them, all coalesce to deliver excessive levels of highly toxic methane gas and nitrous oxide.

Regenerative farming practices that work to sequester more carbon and the development of non-animal protein creation technologies such as plant or microbe-based meat and dairy solutions, can help diminish the overall impact. But only when you know what it is you’re trying to reduce over time.

Two major culprits in aspirational assessment

Emergent’s study revealed two other hotbed areas of over-zealous sustainability performance evaluation. First and foremost is brand communication. It is the easiest lever to pull, one that can quickly get ahead of credible sustainability readiness when the messaging isn’t grounded in the science-based analysis of carbon impact and related improvement targets. Brands routinely reward themselves for getting ‘out there’ with sustainability storytelling, that may inadvertently invite media and consumer blow back when it isn’t anchored to authentic mitigation performance.

Right behind story is establishing the baseline infrastructure for measuring sustainable business performance. Investments in sustainability improvements should be tracked against business outcomes. This is the only way to know if the sustainability readiness platform is functioning fully and correctly. It is important to note that sustainability is ‘aging out’ of traditional CSR, and rapidly evolving into ESG – hence a part of business performance. The C-Suite must be involved in sustainability programming to ensure the right level of true organizational commitment.

We know consumers care deeply about sustainable choices. They are also getting smarter about what separates empty claims vs. substantive behaviors and policies that are well-executed. We have a proven, verified link now between optimal sustainability readiness strategies and competitive marketplace leverage that results in market share and volume growth. Integrating business measurement into the game plan is vital to assessing how well the entire sustainability strategy is progressing.

Fly right to reap the benefits

Transformational change has already occurred. We are living in the midst of a culture shift that is demanding companies step up to make improvements in their sustainability policies and standards.

When grounded in science and driven by informed communications strategies that help brands gain credit for their efforts, brands and businesses will out-perform the competition while establishing leadership in an area that will impact consumer preference for the foreseeable future.

If you’re interested in assessing where your business is today on sustainability performance and where it could go tomorrow with the optimal readiness program, click HERE to take the free Brand Sustainability Readiness questionnaire. The scoring and analysis are provided at no cost.

We promise a revealing, interesting and informative conversation that could open a new chapter of growth and prosperity for your brands in the year ahead.

Looking for more food for thought? Subscribe to the Emerging Trends Report.

Early adopter behavior driving the marketplace…

Emergent appreciates our growing CEO and C-suite readership. Our goal is to provide meaningful trends analysis and strategic guidance through the Emerging Trends Report. We are introducing a special series – the CEO Bulletin – intended to inspire new thinking on organization planning and strategy. Should you have a topic you’d like us to cover – drop us a note. Your comments and feedback are always welcome.

Sustainability will be the most important strategic consideration for your company in the coming year, and Higher Purpose will be a key point of differentiation that helps move your performance in the marketplace.

Here’s why.

Sustainability is no longer a tertiary, benign or merely aspirational construct. This strategic imperative is connected to the health and wellbeing of the planet on which we live. Early adopter consumers see conscientious consumption as their flag and are empowered to signal to the world around them that climate-responsible products are their first choice. Half-baked solutions and absence of Climate Footprint and Life Cycle Analysis fundamentals that guide mitigation metrics will be exposed for all to see. These influential consumers are driving expectations, preference and marketplaces.

Being responsive to their Sustainability concerns isn’t just the “right thing to do” it is a source of competitive advantage and a critical point of leverage on the path to growth in marketing, distribution and sales leadership.

• Imagine the friction consumers are encountering right now because it’s nearly impossible to sort which product is a more sustainable choice at retail. The consumer’s priority is once again ahead of brand performance in the marketplace. Who will be first with the most? How will sustainability impact labeling and retail navigation?

When cultural changes take root, it presages larger shifts in sentiment – leading to momentum deviations that are an immutable guide to strategic investment. What should be at the forefront of your thinking now is the very real potential of ending up on the wrong side of this sea change. Not because the word sustainability is left out of your brand communication lexicon, rather because it is not fully, correctly built out, thus creating real vulnerabilities around greenwashing. People will notice, experts will weigh in, influencers will influence. There will be winners and losers in the “Sustainability Battles”.

Moreover, we have data and proof that fully realized sustainability strategies lead to share growth and sales leadership in your respective category. Why? The same rule applies here: because consumers care about it and support businesses that authentically walk the walk of climate impact mitigation alongside business strategies that clearly, emphatically support authentic sustainability practices. Consumers are watching. Early adopters are showing them what to do. This creates a steamroll effect that leads to category upheaval as smarter brands overtake the laggards and pretenders.

• Recent research conducted by IRI and the NYU Stern Center for Sustainable Business indicates consumer uptake of sustainability marketed products has remained strong despite the Pandemic. Sustainable brands outperformed conventional alternatives across 36 categories in 2020. The segment achieved 16.8% of total purchases in a banner year for CPG sales. 

Think differently

Sustainability practices should lead business strategy and will have a profound impact on new product launch initiatives. This isn’t just a corporate commitment, it’s an anchor at the street level to differentiation, meaning and value and must be fully baked into marketing planning all the way through to execution.

• What will your brand voice be on this? What evidence can you provide to the early adopters who know great practices from anything less than that? How is this integrated into your story and narrative? You already know that story-well-told is where all of this begins and takes root.

In a recent report at Pet Food Industry magazine, one quote-able source nailed the conditions squarely:

“Clean label will move into sustainability — how are pet food manufacturers being more conscious of the environment?” said Tammi Geiger, marketing manager U.S. for Oterra, a supplier of natural colors. “How are they producing their products so they are having a positive impact on the planet and even communities? Manufacturers will be asked by their customers to tell their production story and they will therefore put pressure on their ingredient vendors to have sustainability as a main focus. This can be a way to differentiate from other brands as well.”

Purpose is a marketplace imperative

You can see the pattern emerging. Purpose, beliefs and meaning equate to value and preference. The trouble with Purpose is you can’t bolt it on as a marketing message construct. Purpose needs to emanate from why your company exists, what you are doing to empathize with user needs  and how are you adding value to their quality of life in tangible ways.

Sustainability and higher purpose are family, joined forever in a union that showcases how people have changed, what matters and the real drivers of competitive advantage that goes way beyond the features and benefits layered into your products.

You need:

Purposeful brands

Purposeful labels

Purposeful shopping experience

Purposeful supply chain

Purposeful organization

Purposeful employee policies

Purposeful corporate soul

There is a natural tendency to lean in on technology and better mousetrap thinking. To be sure product quality and innovation are key to brand and business health. But the truth of the matter is brand beliefs, values and higher purpose matter even more on the path to success. The world has changed, and you must change with it to remain relevant and resonant.

The chin you lead with

Now more than any other time in the history of business and marketing strategy, uniqueness and differentiation are key to elevating your business above the vast degree of sameness and similarity that exist category to category, retailer to retailer.

Higher Purpose is a differentiator!

This is how your unique company DNA and value system gets wired into the brand narrative in a manner that’s own-able for your organization. It manifests in how your business operates to meet the life-journey aspirations of your customers. Note: you have to truly care about the welfare of the people you serve to make this work.

Our Brand Sustainability Analysis process is designed to optimize this requirement for the very reason it is aligned with consumer preferences and behaviors. The early adopters you encounter are the ones creating influence that drives momentum changes. What becomes popular, noticed and sought after should factor in to your strategic thinking.

• Purpose is a center-of-bulls-eye concept that works seamlessly into the sustainability recipe as a component of business and brand value.

If fresh perspective and assessment of your sustainability and purpose bona fides would be helpful to your planning, use this link to open an informal conversation with us about your needs. We promise a thorough, complete analysis of competitive advantage at a time when consumer behaviors are changing the game around you.

Looking for more food for thought? Subscribe to the Emerging Trends Report.