Reference no: EM133280092

Earth Day: Brands walk the talk for sustainability

Sustainability has become one of the few topics of focus in recent times and many brands have begun walking the talk by launching a slew of initiatives and campaigns in conjunction with Earth Day to encourage more responsible consumption.

A recent global survey by Google Cloud found that 77% of APAC executives believe that sustainability can drive significant business transformations, compared to 73% globally. Many identify Environment, Social and Governance (ESG) initiatives as their top organisational priority, ranking ESG on par with business model evolution and customer relationship and experience optimisation.

That said, there is still a gap between consumers and brands in the area of sustainability, especially in the consumer packaged goods (CPG) space. Talkwalker's "Shape Tomorrow" report said only 33.1% of conversations around sustainability in CPG were shared between them. Talkwalker also found that 54.1% of brands aren't connecting with over half of the total conversation, while 12.7% of conversations are being led by brands but aren't resonating with their audience.

A brand's communications are also helpful in driving conversations about sustainability with consumers. Brands, however, face the issue of greenwashing, which Forrester said is "just the tip of the sustainability communications iceberg. Beyond green marketing, Forrester explained that sustainability issues will take up more of marketers' working headspace. As they respond to values-driven customers, firms that embrace responsible marketing will get a lasting competitive advantage.

At the same time, the cost of miscommunicating is high. Regulators, activists, NGOs, investors, and customers will scrutinise companies' communications. Beyond legal action, negative word- of-mouth, bad press, and brand equity loss, one of the main business risks is that customers will turn to competitors. The majority of online adults in Singapore (63%) and 77% in India believe brands should take a stand on climate change.

Highlighted below are some brands' efforts in doubling down on sustainability:

Lazada Group

Lazada Group's LazEarthcampaignfocuseson reducing plastic waste in the company's products and packaging. According to a report by ASEAN, Southeast Asia generates an estimate of over 31 million tonnes of plastic waste each year.

Lazada will also work with its LazMall brands and partners as part of the campaign, to make eco-friendly products more accessible and identifiable to consumers. The brand looks to work with and feature more than 70 brands and 5,000 items across its fashion and FMCG product categories to utilise reduced or better plastics in their operations.

This follows Lazada's initiative last year to offer more sustainable parcels, such as those made from alternative sustainable packaging materials, through its Fulfilment by Lazada service for partner brands.

Question A

Evaluate Lazadas use of social media and propose to strengthen its online presence.

Examine how Lazada uses its social media channels. You should use the two main functionalities, Communication and Relationships to execute this analysis.