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The traditional focus of capitalism, which is solely on returns maximization, is increasingly undergoing transformation in response to ongoing crises, including geopolitical tensions, environmental challenges, financial downturns, growing inequality, and the recent pandemic. The latter, in particular, has led to the sharpest economic downturn since the Great Recession of 2008, according to the International Monetary Fund. This prompts a restructuring of societal behavior on both large and small scales, especially when it comes to the markets for products and services.
THE CHANGING MARKET
As the impact of global challenges on both People and Planet becomes more pronounced, markets are adapting to unveil new opportunities. Data from the World Economic Forum shows that over half of the world’s total Gross Domestic Product (GDP) is now recognized as moderately or highly reliant on sustainability. In tandem with this shift, consumer behavior is undergoing a significant evolution, with 65% expressing a preference for purchasing from purpose-driven brands actively advocating for People and Planet issues. The influence of Generation Z, often considered the most disruptive generation to date, is apparent, with a survey from DoSomething, a global social impact firm, showing that 75% of them have a preference for sustainable choices over well-established brand names.
GLOBAL RESPONSES
Acknowledging the evolving consumer preferences, many brands are strategically transforming to align with People and Planet values. IKEA, for instance, is a GREAT example for what businesses can do and have the power to do. Guided by a shared vision of creating a better everyday life, the furniture giant has embraced a People-and-Planet-Positive Strategy. This comprehensive approach inspires and leads decision-making to collectively bring about positive changes for the world and the entire IKEA ecosystem. The strategy promotes healthy and sustainable living, circular and climate-positive practices, and fairness and equality. Meanwhile, in response to the challenges posed by the pandemic, Uber, an American transportation technology company, has showcased adaptability and resilience by introducing Uber Direct and Uber Connect. Uber Direct extends beyond grocery delivery to include retail and manufacturer deliveries, while Uber Connect facilitates connections between families and friends by delivering care packages. Currently piloting in over 25 cities, this showcases Uber's commitment to addressing evolving user needs during challenging times.
Incorporating a focus on People and Planet not only addresses societal and environmental challenges but also opens up new markets for brands to generate positive impacts on the economy and ecosystem. Businesses should perceive sustainability as an opportunity to leap ahead, setting themselves apart from competitors and elevating their brand from Good to GREAT. Embracing sustainability is more than just a passing trend; it can be a crucial component for companies to adopt as a Future-ready strategy that aligns with the evolving values of consumers and the broader global landscape.
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