Startups and sustainability: why it’s the perfect partnership

There’s not a brand out in the market right now that doesn’t have sustainability on its agenda. Whether they call it by that name, or CSR (Corporate Social Responsibility), ethics or principles, a company wouldn’t exist in the current climate if it didn’t have some sort of sustainability strategy in place.

The fact that this is true for both long-established companies, the likes of Nestlé and Ford for example, as well as newer enterprises such as Method, means they should be on level playing field, right? Well, perhaps no, and that’s because of consumers. Indeed, in consumers’ eyes, startup brands chime better with sustainability.

Introducing ‘Clean Slate Brands’

When it comes to proving their worth as sustainable and ethical organizations, the issue established brands come across is their checkered history — it’s an uphill struggle to convince consumers your practice is clean, when in the not-so-distant past these same companies were shamed for their involvement in scandals like exploitation of natural resources and inhumane labor laws. Unfortunately, these exposés are still common, keep up with your news on a site like Internationalbrief.com,and you’re likely to come across them.

On the contrary, when a new brand introduces itself to the market, it has none of this to overcome. It is, as the industry dubs, a ‘Clean Slate Brand’. Because of this, a new business is perfectly placed to lead the way in ethical and environmentally friendly practices — and can do so with the full backing and belief of its audience.

Startups = improved supply chain and innovative business models

Not always, but often, new companies have the ability to question supply chains and business models before they get started. In doing so, they can push to improve unsatisfactory ways of working.

One way this has come to fruition is through the launch of DTC (direct to consumer) sales, such as subscription and ‘on demand’ services. Through this model, startups are making it even easier for consumers to give back through their purchasing; with every monthly purchase, users of Cora’s organic, menstruation products help to donate sanitary items to girls in need, in developing countries.

A shift in supply chain, production or business model is harder for an established brand to achieve, as the cost of factory redesign is monumental.

The right audience

Generally speaking, startups launching today are looking to engage with Gen Y (Millennials) and Gen Z. These demographics are most commonly associated with being morally driven, and appreciating brands who wear their heart on their sleeve and are willing to stand up for what they believe in. As such, this is the right audience to drive sustainable businesses forward.

The perfect partnership

Startups and sustainability seem to make a perfect partnership. Once again, it’s the brands unshackled by existing consumer perceptions who have a clean slate to launch from. Of course, that’s not to say that established brands, with the right marketing team behind them, can’t show values — but the infamous Pepsi at of 2017 reminds us how easily it can go wrong.