Sustainability is widely tipped to rise higher up the agenda, if not to the top, for all companies during 2021 but especially the ones that are consumer facing.
At the end of 2019, McKinsey put the value of global sustainable investment at $30 trillion – a 68% increase since 2014. The pandemic has seen a rapid acceleration of sustainability awareness and this shows no sign of slowing down any time soon. It is clear that the most successful companies will need to demonstrate long-term sustainability over short-term profits.
The new generations, Millenials and Gen Z, are exerting greater influence and becoming more demanding in how seriously brands take sustainability. This will require more than a PR or marketing gloss, sometimes called “green-washing”; the new generations will ask increasingly tough questions and demand to see the credentials to back up any claims. One thing is clear: The brands that will do best are the ones that have sustainability at their core. Simply put, people will want to be associated with brands that are making the world a better place. So sustainability will become non-negotiable across many businesses. New technologies are likely to increase the sustainability capabilities of companies and economic incentives will continue to make the investment attractive. The property and construction industry, in common with the wider economy, is focusing more and more on the Net Zero Carbon target. The Government is increasingly introducing new initiatives and progressive legislation to support achievement of the target by 2050. Building on the recent Reith Lectures by Mark Carney, the former Governor of the Bank of England, the global trend will be the growing realisation by companies that environmental concerns are intertwined with value creation. While legislation will sharpen the focus of many, we predict that consumer pressure will drive the pace.
At Vision Zero Consult we look forward to helping as many companies as possible build value by recognising their sustainable ambitions and leave a legacy that they can be truly proud about.