Why brands with green agenda appeal to consumers

Experts say that consumers actively choose brands that make sustainability credentials clear on their packaging and in their marketing. PHOTO | DENNIS ONSONGO | NMG

What you need to know:

  • Companies that demonstrate climate credentials of their products could gain a significant competitive and commercial advantage over those that don’t.

Global food and drink company Nestlé announced last month that it aims to make 100 per cent of its packaging recyclable or reusable by 2025 such that none of its packaging, including plastics, ends up in a landfill or as litter.

The move could also increase its sales as research shows that over 50 per cent of global consumers are interested in buying more sustainably produced goods.

The initiative is also part of the United Nations’ 2030 Agenda for Sustainable Development Goals.

One of the goals states that by 2025, it aims to prevent and significantly reduce marine pollution of all kinds, in particular from land-based activities, including marine debris and nutrient pollution.

This can be done by eliminating the global plastic waste.

Nestlé manufactures breakfast cereals, coffee products, ice-cream, drinking chocolate and baby food among other products, which it packages using plastic materials. However, the firm targets to eradicate complex combinations of packaging materials, boosting the use of plastics that allow better recycling rates and eliminate non-recyclable plastics.

In Kenya, it is renowned for its instant coffee brand Nescafé, that includes an 18g and 1.5g sachet packaging which are not reusable and thus can be carelessly disposed of by consumers after use.

“In order to tackle the global plastic menace, we will take a collective approach.

“We are committed to finding methods to re-use, reduce and recycle so that we can attain 100 per cent recycable or reusable packaging by 2025,” said Mark Schneider, CEO, Nestlé.

Indeed, scientists from the University of California estimate that only nine per cent of the world’s plastic waste was recycled from 1950 to 2018, and that the amount of solid waste that has not been burned or recycled is 4.9 billion tonnes.

There are also 51 trillion microplastic particles in the world’s seas which can cause health problems to both humans and animals.

Therefore, Nestlé has dedicated itself to actively engaging in the improvement of well-functioning collection, sorting and recycling schemes across the countries where it operates including Kenya. The firm will also work with industry associations to explore different packaging solutions to reduce plastic usage.

According to a 2017 research by YouGov, an international Internet-based market research and data analytics firm, companies that demonstrate climate credentials of their products could gain a significant competitive and commercial advantage over those that don’t.

“It seems we are reaching a tipping point. There is demand for sustainable products due to the rise of the green consumer.

“They are becoming more conscious about the products they use and purchase and our latest research shows that 54 per cent are actively looking to buy more sustainably sourced and produced items,” reported YouGov.

Besides playing an active role in recycling plastic and collaborating with industry associations, Nestle will also label its plastic product packaging with recycling information to help consumers dispose of it in the right way.

This will not only reduce waste but could also potentially enhance preference for its products in the fast moving consumer goods industry.

In an international study conducted in 2017 by consumer goods company, Unilever, on the impact of the sustainable brand on consumer purchase, more that one in five (21 per cent) of the participants said that they would actively choose brands if they made their sustainability credentials clearer on their packaging and in their marketing.

“The survey not only showed that consumers have high expectations for companies when it comes to conserving the environment but it also highlighted the consumer market for companies that get it right. -“This represents a potential untapped opportunity of €966 billion out of a €2.5 trillion total market for sustainable goods.

“A third of consumers are now buying from brands based on their social and environmental impact,” reported Unilever.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.