Let’s start with the facts: More than 70 per cent of global consumers are actively changing their buying habits to reduce their environmental impact, according to a study by the United Nations.
If your brand isn’t riding the sustainability wave, you’re not just missing out – you’re sinking. Sustainability isn’t some trendy buzzword anymore – it’s a full-blown consumer demand.
Approximately 65 per cent of buyers want sustainably sourced or eco-friendly products. If your brand isn’t catering to this growing army of eco-conscious shoppers, you’re losing them to brands that get it.
Integrating sustainability and ESG (environmental, social and governance) principles into your business and reflecting them in your branding isn’t just a smart move; it’s a survival tactic.
It’s about aligning with a tidal shift in consumer demands, staying ahead of the competition, and securing your place in a world where ethical practices aren’t optional – they’re demanded.
Aligning with consumer expectations
ESG principles offer a framework that resonates with today’s socially and environmentally aware consumers. Brands that show commitment to environmental stewardship, social responsibility and sound governance practices are perceived as trustworthy and forward-thinking.
This alignment not only strengthens brand loyalty but also enhances market competitiveness in an increasingly crowded marketplace, where more than 50 per cent of Gen Z and millennial consumers factor sustainability into their purchasing decisions.
Sustainable packaging using recycled, biodegradable, or plant-based materials can reduce CO2 emissions, resonating with eco-conscious consumers and strengthening brand loyalty.
For example, Switch Foods uses minimal ingredients for its plant-based frozen meat and integrates renewable and recycled materials for its packaging. The innovative peelable design allows the lamination to be separated from the cardboard, making the entire pack fully recyclable.
Investors and ESG: the green cash grab
Smart investors aren’t just flirting with ESG – they’re all in, increasingly putting their cash behind companies with strong ESG practices, especially in the food industry. According to the UN Food and Agriculture Organization (FAO), sustainable food production is attracting significant investment as global demand for ethically produced food rises.
The World Bank reports that agricultural firms adopting ESG principles see better long-term financial returns and reduced risks. For food brands, embedding sustainability into their core strategy isn’t just about doing good – it’s about attracting investors who know the future of food is green.
ESG-focused companies attract impact investors. Highlighting energy savings or resource efficiency makes brands more appealing to investors who prioritise sustainability.
Branding: Differentiate or disappear
If you’re weaving sustainability and ESG into your operations, you’re leading the way. According to a Nielsen Global Corporate Sustainability Report, 66 per cent of consumers are willing to pay more for sustainable brands, and 81 per cent of millennials expect their favourite companies to publicly share their sustainability commitments.
Brands that spotlight genuine reductions in environmental impact, real community engagement, and transparent governance are building trust that leads to long-term loyalty.
What many businesses might not realise is that embracing ESG principles can be profitable and provide long-term benefits, beyond just meeting consumer demands for sustainability. It’s not just about keeping up with the trend but seeing how ESG can drive value.
For instance, Classic Burger Joint and Crepaway – both long-established and beloved brands – were early adopters of Switch Foods’ plant-based products. Known for their meat-heavy menus, these brands took a bold step by incorporating plant-based alternatives. Given that every kilogram of meat replaced can save approximately 100 kilograms of CO2 emissions, the impact is significant.
In fact, the shift resulted in hundreds of thousands of kilograms of CO2 emissions saved yearly for each brand, demonstrating how sustainability not only reduces environmental footprints but also attracts new, eco-conscious customers, further strengthening brand loyalty.
Accordingly, brands that introduce plant-based menus or adopt innovative eco-friendly practices alongside their traditional offerings position themselves as trendsetters, strengthening their market positioning and consumer trust.
Conclusion
As businesses navigate a landscape shaped by evolving consumer values, global sustainability challenges and regulatory frameworks, integrating sustainability and ESG principles into food branding emerges as a strategic imperative.
By aligning brand narratives with these principles, businesses not only contribute to positive societal impact but also position themselves as leaders in responsible business practices.
Embracing sustainability isn’t just about meeting regulatory requirements; it’s about seizing opportunities to innovate, inspire and drive meaningful change while attracting discerning consumers and investors alike.
By Walid Nasrala, CEO and Co-Founder of Riyadh-based marketing, branding and digital agency WonderEight
