Learn how to communicate the value of sustainability to your stakeholders and overcome their objections. Find out how to explain the benefits, provide the evidence, involve the stakeholders, and more.

Sustainability, when cast broadly as some future, non-economic benefit, faces steep challenges when put up against more quantifiable here-and-now cost-saving, profit-improving investments. Overcome this challenge by translating the sustainability benefit (like CO2 reduction) into the language and objectives of the function or internal business unit that needs to invest or make changes. In the case of a manufacturing process, scope 1 CO2 reduction (without changing energy source) is the flip side of reduced energy consumption. Position the benefit, not as CO2 reduction, but as an energy consumption reduction (👇cost/👆profit). This squarely fits into the kind of manufacturing efficiency benefits sought by most businesses anyway.

How can you address stakeholder concerns about the cost of sustainability initiatives?

Sustainability is not only good for the planet, but also for your brand reputation and customer loyalty. However, implementing sustainability initiatives can be costly and complex, and may raise some concerns from your stakeholders, such as investors, employees, or suppliers. How can you address these concerns and convince them that sustainability is worth the investment? Here are some tips to help you communicate the value of sustainability to your stakeholders.

1 Explain the benefits

The first step is to explain how sustainability can benefit your brand in the long term, both financially and strategically. For example, you can show how sustainability can reduce operational costs, increase efficiency, enhance innovation, attract and retain talent, differentiate your brand from competitors, and create new market opportunities. You can also highlight how sustainability can improve your brand image, trust, and loyalty among your customers, who are increasingly demanding ethical and environmental practices from the brands they buy from.

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Randy Burns

Chief Administrative & Sustainability Officer at O-I Glass, Inc. Sustainability | Communications | Government & Public Affairs
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Sustainability, when cast broadly as some future, non-economic benefit, faces steep challenges when put up against more quantifiable here-and-now cost-saving, profit-improving investments. Overcome this challenge by translating the sustainability benefit (like CO2 reduction) into the language and objectives of the function or internal business unit that needs to invest or make changes. In the case of a manufacturing process, scope 1 CO2 reduction (without changing energy source) is the flip side of reduced energy consumption. Position the benefit, not as CO2 reduction, but as an energy consumption reduction (👇cost/👆profit). This squarely fits into the kind of manufacturing efficiency benefits sought by most businesses anyway.

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2 Provide the evidence

The second step is to provide the evidence that supports your sustainability claims and goals. For example, you can share data, reports, case studies, testimonials, or awards that demonstrate the impact and results of your sustainability initiatives. You can also use industry standards, benchmarks, or certifications to validate your sustainability performance and credibility. Additionally, you can show how your sustainability initiatives align with the global frameworks and goals, such as the United Nations Sustainable Development Goals (SDGs) or the Paris Agreement.

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3 Involve the stakeholders

The third step is to involve your stakeholders in your sustainability journey and make them feel part of the solution. For example, you can invite them to participate in your sustainability strategy, planning, or decision-making processes, and solicit their feedback, suggestions, or ideas. You can also provide them with training, tools, or resources to help them adopt sustainable practices and behaviors in their own roles or operations. Furthermore, you can recognize and reward their contributions and achievements in advancing your sustainability agenda.

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4 Communicate regularly

The fourth step is to communicate regularly with your stakeholders about your sustainability progress and challenges, and keep them updated and engaged. For example, you can use various channels and formats, such as newsletters, blogs, podcasts, webinars, or social media, to share your sustainability stories, insights, or learnings. You can also use interactive and visual elements, such as infographics, videos, or quizzes, to make your sustainability communication more appealing and memorable. Additionally, you can use storytelling techniques, such as emotions, values, or narratives, to connect with your stakeholders on a deeper level and inspire them to take action.

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Ruchika Malhotra

ESG Materiality | Sustainability Communications | Emerging Tech | Growth | TCFD | TNFD | ISSB | CSRD
(edited)
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Using the simple TADD model to effectively communicate the cost benefit (CBA) analysis of your sustainability journey can ease stakeholder’s concerns. Trust(T)- Build trust by engaging all the stakeholders early on, in your journey. Access (A) - Give access to data, metrics and proof points. Providing user driven dashboards for anytime access builds credibility. Disclosure (D) - Regular and interval driven disclosures on costs and uncomplicated reporting metrics using simple language and tools. Dialogue (D) - The most critical aspect is enabling a fair and honest dialogue and feedback platform, wherein all stakeholders can participate and collaborate. And this model is cyclical. Dialogue, Disclosure and Access builds Trust.

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5 Address the barriers

The fifth step is to address the potential barriers or objections that your stakeholders may have regarding your sustainability initiatives, and offer solutions or alternatives. For example, you can acknowledge the challenges or risks that sustainability may pose to your brand, such as higher costs, lower profits, regulatory compliance, or customer backlash, and explain how you plan to overcome or mitigate them. You can also provide examples or best practices from other brands or industries that have successfully implemented sustainability initiatives and achieved positive outcomes.

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6 Collaborate with others

The sixth step is to collaborate with others who share your sustainability vision and values, and leverage their expertise, influence, or resources. For example, you can partner with other brands, organizations, or institutions that have complementary or compatible sustainability goals, and create joint projects, campaigns, or events that can amplify your impact and reach. You can also join or create networks, platforms, or communities that can facilitate knowledge sharing, peer learning, or advocacy on sustainability issues. Additionally, you can seek or offer mentorship, guidance, or support to other brands or stakeholders who are on their sustainability journey.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can you address stakeholder concerns about the cost of sustainability initiatives?

1

2

3

4

5

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1 Explain the benefits

2 Provide the evidence

3 Involve the stakeholders

4 Communicate regularly

5 Address the barriers

6 Collaborate with others

7 Here’s what else to consider

Brand Management

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How can you address stakeholder concerns about the cost of sustainability initiatives?

1

2

3

4

5

6

7

1 Explain the benefits

2 Provide the evidence

3 Involve the stakeholders

4 Communicate regularly

5 Address the barriers

6 Collaborate with others

7 Here’s what else to consider

Brand Management

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