In the wild world of modern business, sustainability has evolved from a ‘nice-to-have’ to the ultimate brand amplifier. Companies worldwide, including those in the Middle East, are finding themselves under the spotlight for their environmental and social impact.
But there’s still this outdated myth hanging around like a fly in my chardonnay – sustainability isn’t profitable. For many businesses, the assumption is that adopting purpose-driven strategies equals high costs and no return.
Well, spoiler alert: it’s time to debunk that myth.
Sustainability isn’t just a financial obligation, it’s a smart investment for long-term success. By embedding values like environmental responsibility and social equity into their core strategies, brands can create significant value.
Purpose-driven strategies not only improve a brand’s perception and product consideration but also strengthen customer loyalty and unlock new revenue streams. The ROI from sustainability is much bigger than most businesses realise – it’s the amplifier, the market differentiator you’ve been looking for.
Shift in consumer demand for sustainability
One of the most compelling reasons why sustainability is profitable is the growing shift in consumer behaviour. Today’s consumers aren’t just swiping left on fast fashion – no, they’re swiping right for brands that care about the future of the planet.
Research shows that nearly three-quarters of global consumers expect the brands they support to drive positive change. Millennials and Gen Z? They’re leading the charge, prioritising sustainability over cost – and, frankly, it’s about time. When businesses embrace purpose-driven strategies, they’re not just picking up new customers – they’re building long-term relationships with eco-conscious fans. And that’s a direct win for brand perception and product consideration.
Companies that communicate their sustainability efforts with transparency and authenticity are seen as trustworthy, forward-thinking, and the leaders of tomorrow. Let’s face it, no one’s putting their money behind a brand that’s still using fossil fuels like it’s 1995.
Creating value through values
Here’s where the magic happens: creating value through values. Brands that lead with purpose – whether by reducing their carbon footprint, supporting social justice causes, or adopting ethical sourcing practices – aren’t just seen as businesses.
These brands are part of something bigger, something meaningful. They’re vehicles for change. They’re brands with guts and soul that lead the charge on change, shaping our future.
In the Middle East, where we face the environmental challenges of living in a desert, brands that take action to mitigate their impact are reaping the rewards. Badia Farms, the region’s first indoor vertical farm, is a perfect example.
By using 90 per cent less water than traditional farming methods, it is not just offering a sustainable local source of pesticide-free produce; it is tackling food security head-on. Yes, some will argue vertical farming comes with its challenges, but it’s evolving fast, innovating and staying ahead of the curve.
Meanwhile, we’re all familiar with the infamous Ripe Market, a community-led business that provides a platform for homegrown businesses to thrive within the UAE’s competitive landscape. If that wasn’t unique enough in its 2011 inception, The Ripe Market collaborates with more than 100 local farmers, ensuring 75 per cent of its products are locally sourced.
Both these businesses aren’t just reducing environmental impact – they’re driving growth and building a fierce customer loyalty in the process.
Profitability of purpose
So, let’s talk money: the myth that sustainability isn’t profitable is grounded in a misunderstanding of costs versus benefits. Yes, the upfront costs of switching to renewable energy, having to invest in R&D, the need for additional resources, or even auditing your supply chains can be daunting – especially with shareholders expecting their returns. But here’s the thing: the long-term gains far outweigh those initial expenses.
Sustainable businesses often see cost savings through increased energy efficiency, waste reduction and improved resource management. Switching to renewable energy doesn’t just reduce your carbon footprint – it slashes operational costs in the long run. And brands that adopt sustainable supply chains often find new avenues for innovation, reducing their reliance on finite resources or materials that are about as popular as a single-use plastic straw.
Contrary to what you might think, businesses committed to purpose-driven strategies are catching the eye of investors. The rise of ESG (environmental, social, and governance) investing is proving that companies prioritising sustainability have a stronger appeal.
A report from BlackRock, one of the world’s largest investment firms, found that businesses with strong ESG credentials consistently outperform their peers, particularly during times of economic turbulence. We’re much more loyal to a brand that stands for something meaningful than one that’s always in hard-sell mode. It’s like the difference between a friend who only calls when they need a favour and the one who’s always there when you need them most.
This shift in investor priorities shows that purpose-driven businesses are more resilient, adaptable and ready for long-term growth. By integrating sustainability into the core strategy, companies aren’t just improving their bottom line – they’re future-proofing their operations against climate change risks, resource scarcity, and the shifting winds of regulatory landscapes.
Moving beyond vilification
It’s easy to wag the finger at industries notorious for their environmental impact – fast fashion, fossil fuels, and overconsumption, to name but a few. But here’s the thing: the true opportunity lies not in pointing fingers but in improving ourselves and our buying habits.
For brands in the Middle East and beyond, the focus shouldn’t be on criticising competitors or other industries. Instead, it’s about leading by example. This means adopting sustainable practices across the board, from sourcing and production all the way to marketing and distribution.
Brands that take proactive steps to reduce their environmental footprint and support social causes are more likely to inspire change across their industry. And let’s be honest – who doesn’t want to stand out in an already overcrowded and noisy landscape?
Advertising agencies play a pivotal role in this transition. Our role as creatives is not just to craft campaigns that convince consumers to consume more – it’s to help brands build authentic, purpose-driven narratives that resonate. It’s our responsibility as creatives to highlight the positive journey a brand is taking, turning sustainability from a buzzword into a genuine competitive advantage.
Sustainability is the new profitability
In today’s world, where consumer expectations, regulatory pressures, and environmental challenges are all reaching a new high, sustainability is no longer an option – it’s a business imperative and an amplifier.
Purpose-driven strategies allow brands to build trust, create value and unlock new avenues for growth. The myth that sustainability isn’t profitable is not just outdated – it’s a barrier to your progress and future-proofing your brand.
As brands in the Middle East navigate the shifting landscape, they must realise that purpose and profitability are not mutually exclusive. Embrace sustainability, and you’ll create lasting value for your customers, shareholders and the world at large.
The ROI on purpose-driven strategies? It’s bigger than you think – and it’s here to stay.
By Charney Magri, Co-Founder and Chief Sustainability Officer, Do Epic Good
