Why more companies are choosing sustainability
It’s official – brands that demonstrate commitment to sustainability outperform those that don’t. – That’s just one of the many findings from Nielsen’s Global Sustainability Report which was published in October 2015 and is titled “The sustainability imperative: New insights on consumer expectations”.
According to the research findings, in 2013, half (50%) of consumers said they were willing to pay more for sustainable brands. The numbers shot up to 55% in 2014 and leaped to 66% in 2015.
More and more consumers are leaning towards brands that are committed to sustainability. It is not just a speculated phenomenon, but something that can be backed up by facts and solid growth trends.
When sourcing products for your customers or your brand, there are many things to consider. Between managing budgets and ensuring a long-term supply of goods, it may seem like considering sustainability is just one more thing to add to the pile. But as sourcing practices streamline and shift towards transparency, sustainability standards are becoming increasingly valuable business tools.
A survey of 101 business leaders conducted by ISEAL Alliance, a global membership association for sustainability standards, revealed that 70% see a strong business case for standards or believe that standards deliver value to the companies that use them.
As more and more businesses begin to recognise the benefits of sustainability frameworks, so are more certification bodies becoming available. We chatted to UTZ, a private regulatory body that seeks to ‘build a better future’ for farmers, companies and consumers.
Now with a presence in South Africa, UTZ operates in 36 countries around the world. With insight into their code of conduct, UTZ shares why more companies are choosing certification and are incorporating sustainability into their supply chain, apart from the potential to increase sales.
1. Lower Costs
Certification bodies understand the importance of a tight budget and a healthy bottom line. That’s why their organisational structure is designed to be lean and mean, cutting many overheads and passing on those savings to customers.
2. Availability
Working with a wide array of farms and companies, certification bodies often come with a strong network. Sourcing sustainably doesn’t mean sacrificing the quality that you as a brand want and that your customers deserve, it will more than likely open new doors.
3. Traceability
Certification bodies allow you track your products throughout the entire supply chain. This transparency throughout the system is more than just a tool for optimising the supply chain, it also mitigates risk by allowing businesses to identify possible weak spots as they appear, and work on further improvements.
4. Credibility
Certainly the case at UTZ, strict adherence to the code of conduct is crucial. That’s why audits are performed regularly by third-party organisations to ensure standards are being upheld. Certification means nothing without consistent monitoring, so certification bodies take this part of the job very seriously to ensure our protocols are being met.
5. Empowering Farmers
Farmers are the base of the supply chain, and when the root is strong, everything prospers. Again we make specific reference to UTZ, who are dedicated to improving the lives of farmers around the world through empowerment and education. Farmers are trained on better farming and business practices, which enables them to become better businessmen and entrepreneurs. This, in turn, creates more resilient farms and better living and working conditions for communities. It’s this ripple effect that’s felt all the way up the supply chain.
If you have questions about how certification could help your business, or are interested in more of the global stats, you can get in touch with Lisa Ryser, South African Country Representative on [email protected].
