Building a Sustainable Brand

In the last decade or so, there has been growing importance placed on corporate social responsibility, leading to the rise of ESG across industrial sectors. Environmental Social and Governance (ESG) propositions are increasingly being highlighted in business strategies as they can serve as vital indicators of organizational values and anticipated performance. Companies are increasingly prioritizing ESG globally, given that it has been linked to higher value creation, both on ground and as perceived by key audiences.

This is evidenced by rising global investment in sustainability, which is well over USD $30 trillion since 2019[1], and only accelerating further in the post-pandemic recovery era. With a growing cognizance of the impact of corporations among audiences, there is a marked spike in social as well as governmental scrutiny, which has inspired investor and executive interest in strengthening ESG offerings towards safeguarding the company’s long-term prospects.

While previous decades have seen a plethora of performative CSR manifestos, in today’s industrial landscape, there are multiple studies that highlight the boost to performance that comes from consistent efforts in ESG. The fact that companies across the globe are willing to invest significant monies into developing robust ESG propositions, is proof enough that business performance improvement is directly tied to environmental, social, and governance structuring. A strong ESG proposition has been found to be linked to higher equity returns, and a reduction in downside risk, through higher credit ratings, among other metrics.

Indeed, building a strong two-way connection with the environment one operates in has been shown to not only amplify the value created by an organisation, but also build resilience into the business model for the long term. Post the onset of Covid, the importance of this quality cannot be overstated. Research affirms that investment in longer-term payoffs can ensure that a business is able to deliver satisfaction to its clientele, its employees, and the larger community it functions within – be it local or global – for the long term.

With concerns about the environment on the rise, it is now more than ever imperative that corporations do their part in supporting conservation efforts and working to reduce their overall carbon footprint. The time to move past mandated CSR contributions is upon us, and businesses much move decisively to incorporate sustainability as a core tenet of functioning for long term progress. As the benefits of embracing sustainability are manifold, starting with improving productivity and profitability, and stretching further to attracting talent, among other perks, there is a 90% consensus that it is a crucial pillar of business strategy[2].

Brands that are able to inculcate a sustainable approach to the way they do things stand to gain a lot, be it in terms of greater profitability due to reduced costs and higher productivity, or access to a lucrative pool of talent as well as a deeper connect with today’s conscious consumers across demographics. Many companies today try and work towards maintaining a healthy triple bottom line, one that measures impact along three parameters – People, Planet and Profit. Contrary to common misconception, while sustainability initiatives do call for initial spends that might detract from the organisations’ overall margins, in the long term, taking a sustainability-focused approach to business practices can improve profitability and boost company reputation.

While most organisations ensure that all required regulatory compliances are met, it helps to go the extra mile and “do good”. The sense of altruism evoked can stand in good stead when turbulence hits the industry, as the brand can fall back on its earlier contributions, and afford itself some much needed protection in the form of public goodwill. Such tactics however, must be consistent and policy-driven, and not short-term switches which would have no lasting impact, much like the efforts employed.

It is important to keep in mind that while sustainability does bring with it many advantages, it must not be practiced merely for the sake of these rewards. Sustainability in its essence need not detract from the business’ core objectives, and incorporating a more holistic way to doing things right at the policy level can go a long way towards driving organizational success. It can lend a distinct sense of purpose to the collective endeavor of a firm, and this in term can attract a driven, and skilled workforce that comes with its own set of competitive advantages.

In addition to the overt financial edge that a sustainable approach lends to a business, it can also help form a deeper connect with target audiences, by giving them a cause to support. It has been widely observed that millennials in particular are more willing to pay for brands that offer some sort of sustainable recompense. An increasing faction of the younger consumer audience is showing a marked preference for “clean” brands, i.e. those that can show proof of environmental consciousness and social responsibility through their actions. A brand that is observed to care about lessening their negative impact on the environment and society stands a strong chance of attracting and converting like-minded customers who are conscious of their energy consumption.

At Anand too, a conscious approach is taken that factors in just how the brand’s actions impact the environment and those it works with, and the organisation works to actively mitigate any ill effects that might be an inadvertent consequence of its operations. Anand has adopted a ‘Plastic-free’ policy since 2017, and made the shift to using only upcycled, non-toxic, biodegradable materials in restaurant cutlery. Such measures not only help reduce the environmental harm that could have been caused by the generation of large quantities of plastic, but also help bring down overall running costs in the long run.

In addition, Anand also works to neutralize its carbon footprint across the board, and has been accredited with the LEED certification for its airport stores. Conscious energy consumption goes a long way towards bettering the future of the planet, and the company by extension. Anand also works actively to support local conservation efforts in various geographies, and helps raise environmental awareness among communities. Further, to supplement its efforts towards carbon offset, Anand also participates in tree plantation drives and other green initiatives that help it engage better with the community while also fulfilling its social responsibility.

[1] Five ways that ESG creates value, Witold Henisz, Tim Koller, and Robin Nuttall, McKinsey & Co., 2019

[2] Why sustainability is crucial for corporate strategy, Talal Rafi, World Economic Forum, 2022