Sustainability has become a strategy for brand differentiation. When used effectively, it can drive transformation.

Sustainability is the new mantra for strategic differentiation. The world of brands and the marketing sector are buzzing with brands implementing new sustainability initiatives.

For example, Hershey recently pledged to protect forests across its supply chain through a comprehensive pulp and paper policy, while stepping up efforts to trace its palm oil supplies.

Other examples include Mondelēz International’s “Cocoa Life” initiative to support sustainable development and Unilever’s Sustainable Living Plan.

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Describing a company as “sustainable” strengthens its brand, opens up opportunities to enter new markets and launch sub-brands, and diversify its business.

And increase innovation. In the fashion industry, many companies are reinventing themselves through new initiatives focused on sustainability. Many set themselves apart from

others by integrating sustainable thinking into their organizations’ values and principles, transforming all aspects of their business that affect the brand, and creating new opportunities.

Building a sustainable brand requires companies to organize their operations at every level, ensuring smooth workflows that support their sustainability goals. Sporadic

and fragmented sustainability efforts without proper planning can do more harm than good. Sustainability is as much a mindset as it is a goal, and, like

any major transformation, it requires stakeholders at every level to be part of the vision and participate in putting it into action. A company cannot achieve sustainability

without the involvement of all its employees.

Successful brands follow a set of principles:

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Communication is key

Working effectively requires comprehensive communications that address both Investors and the company’s stakeholders and customers. Companies should participate in

advertising campaigns and public relations initiatives, and earn recognition from established organizations. They should obtain important certifications and take advantage of every

“unpaid” opportunity to gain visibility. Communications teams also need to help develop reports on goals and metrics while

marketing these initiatives.

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Aim for comprehensive change

Companies should aim to implement sustainability initiatives at scale to avoid accusations of environmental harm. They can do this in

stages or by introducing initiatives with significant impact. For example, if there is substantial overlap in the sourcing of raw materials for the brands

for the company, sustainability initiatives can have a far-reaching impact. Companies with brands across multiple categories that use raw materials

from a range of different supply chains also need to implement the initiative in multiple phases.

For example, Unilever’s Sustainable Living Plan is a company-wide strategy, but it began with a portfolio of global brands

with broad reach.

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Phased impacts

Sustainability needs to boost profitability before companies pursue strategic differentiation. However, implementing sustainability initiatives in the short term may

take a long time to make a difference. Organizations taking this path need strategies to mitigate the effects of the delay and keep their focus

…on the sustainability path and its goals. Over time, these costs and reduced profitability will give way to long-term benefits that “improve efficiency

and revenue through the optimal use of resources and supply chains.”

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Find a partner who adds value

Last but not least, organizations need to take a flexible approach to sustainability initiatives. Strategic differentiation platforms emerge from collaboration and connections

with external parties that can provide specialized expertise. Unilever is a prime example of a company inviting startups, entrepreneurs,

and other organizations to help find solutions to core business challenges. For example, one sustainability challenge that requires collaboration among multiple parties is

“developing products and technologies that enable consumers to achieve superior laundry cleaning while using lower temperatures and less water.”

It can be difficult to find and adopt different platforms for strategic differentiation. Organizations have an opportunity to distinguish themselves when it comes to sustainability. Starting with

the idea, how it is communicated, the steps taken to make it viable, and the processes and incremental steps toward achieving the desired goals all present opportunities for the organization

to differentiate itself and enhance shareholder rights for a brand