A Sustainability Guide for Technology Brands

Category

Industry Trends

Published on:

November 21, 2024

Author:

Amy Fisher

Talking Sustainability: A Guide for Technology Brands

Environmental consciousness has experienced a roller coaster of acceptance and denial over the last decade. For a while, it seemed like every brand was prioritizing pushing environmental, sustainability and governance (ESG) efforts as a way to connect with younger generations. And why not? More than 60% of millennial and Gen Z buyers are willing to pay more for products that demonstrate environmental sustainability or come from a brand that is climate-conscious.

However, as investors and analysts questioned the legitimacy of broad-based sustainability claims and flagged potential greenwashing, many brands started to roll back or pause proactive ESG communications. Large financial firms pulled out of climate-related investment efforts and companies quietly reduced their market-facing messaging in order to avoid scrutiny.

So, what’s a technology brand to do? With environmental and climate concerns still at the forefront of business and consumer agendas, it’s more important than ever to balance actions with words. Without communications, important efforts that are helping protect the planet, boost brand reputation, create a stronger internal culture and even lead to financial benefits, can go unnoticed and unrewarded. However, planning is key to ensure that communications lead to credibility and not skepticism.

The Role of Sustainability Communications

Sustainability communications is not just about public relations or marketing; it’s about building trust with stakeholders and demonstrating transparency and accountability. For technology companies, which often have significant environmental footprints due to energy consumption, electronic waste and resource extraction, clear communications can enhance brand reputation, foster customer loyalty and attract the right investors who prioritize ESG criteria.

Similarly, technologies have emerged that directly address sustainability—identifying and reducing PFAS, managing ESG across supply chain partners, tracking emissions data, renewable energy efforts and more. These companies have an opportunity to demonstrate their role in sustainability and climate protection, acting as thought leaders in technology innovations that drive real change and real results.

Building Sustainability Communications Programs

  1. Develop a Clear Narrative

Like any other brand narrative, having a clear, easy-to-understand story is critical. Companies should put in the work to first understand their audiences and the messages that are important to them. This is not a one-size-fits-all situation. B2B and consumer buyers, partners and investors all have different priorities and brands may need unique narratives for each.

A narrative should articulate the brand’s vision, goals, and the steps it is taking to achieve them. It should be authentic, reflecting core values and mission. For instance, a company might focus on reducing carbon emissions through energy-efficient data centers or promoting circular economy principles through technology that helps recycle used cooking oil into biofuels.

  1. Set Measurable Goals and Report Progress

Transparency in sustainability communications is necessary. Companies should set clear, measurable sustainability and climate goals and regularly report on progress. This could involve publishing annual sustainability reports or newsletters that detail achievements, barriers to success and future plans. Metrics such as carbon footprint reduction, emissions and waste management statistics provide tangible evidence of an organization’s commitment to ESG. For those brands serving the sustainability market, recapping the role you play in helping reduce energy consumption and waste or helping customers document change is equally important.

  1. Choose the Right Channels

Like customizing narratives, the channels used to communicate ESG efforts should be unique to the stakeholder groups. For investors, earnings calls or newsletters to private equity or venture capital partners can be effective channels. Additionally, define areas of public-facing channels like websites and include sustainability messaging in the About Us or Investor section. Depending on the ESG initiatives, consider a dedicated landing page with goals, metrics and progress reports, and highlight any partners you work with and share real-world examples of impact.

Press coverage, social media, blogs and digital content can also reach a wide audience quickly and effectively. Interactive content, such as videos or virtual tours of sustainable projects and efforts, can engage stakeholders in deeper ways.

  1. Collaborate with Industry Partners

When possible, partnering with other companies, industry groups or non-governmental organizations (NGOs) can enhance a brand’s credibility when it comes to communicating sustainability programs. Joint initiatives or certifications, such as those from the Global Reporting Initiative (GRI) or the Carbon Trust, can provide third-party validation of sustainability claims and mitigate concerns about investor community blowback. Encourage partners to include your brand in their own communications to amplify your messages.

  1. Educate and Involve Employees

Employees can be some of the strongest drivers of, and ambassadors for, sustainability efforts. Educating them about goals and involving them in company initiatives is an important step in creating a sustainability-focused workplace culture. Some companies have ESG or sustainability leaders, while others create employee working groups that are tasked with identifying areas of the organization that can benefit from improvements or change. For example, a freight company might switch to a retread program to reduce the environmental impact of tire production, with shareable metrics on savings to show both the sustainability and cost benefits.

Lead by Example

When an organization has clear, metrics-backed programs in place, share the initiatives and results widely. This can add credibility to the program and ensure that it helps build your brand reputation in the market. Several companies have set benchmarks in sustainability efforts and communications:

  • Apple: Its Daisy robot (and other prior versions) disassembles electronic devices to recover valuable components and materials to reduce the company’s environmental impact and waste. The company does regular updates on Daisy, including videos to show how it works. They encourage consumers to trade in phones that can “feed” Daisy and have launched past promotions around Earth Day, where Apple makes donations to sustainability-focused organizations based on the number of phones turned in for recycling.
  • Restaurant Technologies*, Chevron and Sheetz: These three companies banded together to create a circular economy and reduce waste from restaurant cooking oil while offering more sustainable fuels to drivers. Together, they are solving a complex problem, and it shows the power of partnership to achieve success for the greater good.

When it comes to communicating about sustainability, there isn’t one common playbook. Brand leadership teams must consider their company’s own strengths and how sustainability achievements have the potential to impact their employees, investors, partners, buyers and other stakeholders. Brands that lead with transparency and authenticity—rather than marketing lingo—can stand out from the crowd and gain the trust of those around them. Communicating about sustainability should, and can, be rewarding, but only if communications professionals and leaders put the work in upfront to build a program that makes an impact and tells a story that resonates.

This article was first published in the 2024 O’Dwyer’s Technology issue.

*Padilla client

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