10 stats to convince you why sustainable business is good business

Opinion

One year on from our book, we now have more case studies that show being sustainable increases competitiveness, future-proofs business, engage new customers and attracts the best talent.

This month, we’re marking the one-year anniversary of the publication of our book, Sustainable Advertising: How Advertising Can Support a Better Future.

One year on, we have even more case studies of companies and campaigns that show how sustainable business is good for business as well as just good. They’re increasing competitiveness, future-proofing their business, engaging new customers and attracting and retaining the best talent.

In the preface, we wrote: “Our aim is to enlist your help in mobilising our industry to be a force for good.” Nothing has changed there. But the argument and proof points for acting have developed since we first began our research and put pen to paper.

So here are 10 new reasons why sustainability must be central to your business strategy that we would include, were we writing the book today. They are all are drawn from a more detailed paper by Ad Net Zero called The Business Case for Sustainability.

Let’s look at customers first

Compelling evidence for why you want what you’re selling to be sustainable…

1. 93% of consumers globally say they want to live a more sustainable lifestyle. This will force businesses to see sustainability as a risk and opportunity.

2. Meanwhile, 62% of Gen Z shoppers prefer to buy from sustainable brands and 63-73% are willing to pay more for sustainable products. Moreover, Gen Z and millennials are the most likely to make purchase decisions based on personal, social and environmental values.

3. Brand purpose and environmental or social considerations are now key purchasing criteria for more than 50% of consumers globally, according to a recent survey of nearly 200,000 consumers.

4. 24-25% of Gen Z and millennials have stopped or lessened a relationship with a business due to unsustainable practices.

What about the economy?

The shape of the economy has been central to our thinking throughout the process of writing Sustainable Advertising.

5. At Davos in January, the World Economic Forum highlighted that the four long-term global risks are all environmental — headwinds that could all hit your business and your profit margins. A study by Swiss Re Institute estimates that economic damages caused by natural catastrophes have doubled in real terms over the past two decades, reaching $280bn globally in 2023.

6. A 2024 KMPG study found there was a strong correlation between 21 sustainability indicators and robust financial performance.

7. 92% of chief financial officers plan to increase current investments in sustainability this year, while seven in 10 expect higher returns, according to a global poll of 500 CFOs in the UK, the US, India and the United Arab Emirates.

Talent cares

Finally, talent… the people who are going to power your business in the future because what you do is attractive to them and in line with what they want to do with their time and values.

8. 46% of Gen Z and 42% of millennials said they have already changed or plan to change job or industry due to climate concerns. Furthermore, 54% and 48% respectively say they and their colleagues are putting pressure on their employers to act on climate change.

9. 71% of workers want to work in a “green” job or for a company that values environmental sustainability and 62% of HR decision-makers have seen an increase in questions about environmental sustainability from candidates during the interview process, a report by Totaljobs has found.

10. Two out of three employees are anxious about the future of the planet and society (69% UK; 66% US). The majority want to work for a company that is trying to have a positive impact on the world (66% UK; 76% US).

Growth strategies lie in sustainability

The business case is growing and, while there may be some areas of the economy attempting to push back, demographics, competitiveness and risk management or future-proofing show that company growth strategies lie in sustainability.

It’s why we wrote our book. The Ad Net Zero paper is rich with more data points — it’s a brilliant document to discuss with your own leadership team.

In the meantime, all the principles you need to ensure your advertising is in line with the way your customers, the economy and your talent are headed are detailed in the Sustainable Advertising manifesto. There’s good business in doing good.

Matt Bourn and Sebastian Munden are co-authors of Sustainable Advertising. Bourn (far left) is director of communications at the Advertising Association and Munden is chair of Ad Net Zero