Corporations play a significant role in improving global sustainability through their supply chain, production and management choices. While the careful development of eco-friendly products and services is essential, business leaders must not forget about their customers in the process. Omnichannel strategies can raise awareness of sustainable options and innovations that meet consumers where they are.
In the recent webcast, "Omnichannel Meets Sustainability: Strategies for Incorporating Sustainability Into Omnichannel Business Models," industry leaders joined Dan Hooker, director of Cornell's Omnichannel Leadership Immersion Program and senior lecturer in the Cornell SC Johnson College of Business, to share corporate environmental, social and governance (ESG) strategies for achieving sustainable development goals that protect the environment, increase revenue and improve customer loyalty.
Adapt to Pandemic-Driven Culture Shifts
The COVID-19 pandemic has led to a shift in consumer behavior, pushing businesses to reevaluate their sustainability practices. Consumers are shopping more on phones, choosing delivery instead of in-person grocery shopping and making online orders instead of first checking out products in brick-and-mortar locations. The results are increased demand for goods that require packaging and growth in the delivery industry.
In the new homebody economy, businesses will need to get creative in reducing their environmental footprint and adopting better ESG practices.
"Our packaging commitment is to achieve 100% reusable, recyclable or compostable packaging by the end of 2025," said Janelle Meyers, chief sustainability officer at Kellogg Company. "We have three key approaches: reducing packaging usage across our portfolio by decreasing total packaging weight wherever possible, excluding certain plastic items in packaging materials and redesigning packaging to be more recyclable or compostable, whether it is going into brick-and-mortar stores or if it's going online."
Gauge Consumer Reluctance
When customers are resistant to eco-friendly alternatives and their higher costs, businesses can increase understanding and adoption of sustainable options through education. Businesses can also emphasize the long-term benefits of environmental action, appealing to consumers' sense of social and ethical responsibility.
"If you ask our customers if they would value more sustainable recyclable packaging, over 85% would absolutely agree. If you then ask them if they would be willing to pay for it, about 60% would agree," said Erik Weenink, director of pricing and promotion at Giant Food, an Ahold Delhaize subsidiary. "However, when we give them the choice in the store, less than 20% of our customers will vote with their wallets."
"At the very individual level, people have to recognize that they're part of mitigating the impacts of climate change by actually making consumer choices. There's a lot of opportunity to use the omnichannel approach and meet the person where they are on the educational side of the new innovations out there," said Devry Vorwerk, founder and CEO of DevryBV Sustainable Strategies.
In this year's Omnichannel Leadership Immersion Program at the Cornell Tech campus in New York City, global business leaders will join Cornell faculty experts to discuss best practices for engaging in sustainable development as well as optimizing the customer experience and strengthening operations through technology, data analytics and change management. Apply to participate in the program this June.
Read the full story from eCornell writing intern Milan Lengyeltoti on the eCornell Impact blog.
