Sophie Knöbl Over the past few decades, consumer demand for sustainable products has reshaped how companies approach branding. Today’s users are not just passive buyers; they’re increasingly concerned about the environmental and social impacts of their purchases. A recent study by McKinsey, titled “Consumers care about sustainability—and back it up with their wallets”, highlights a growing willingness among consumers to pay premium prices for products labeled as sustainable, especially when they carry the endorsement of trusted authorities or third-party certifications.
To meet this rising demand, brands have been quick to adapt, flooding the market with sustainability labels like “organic,” “bio,” “carbon-neutral,” “fair,” etc. On the surface, this seems like progress. However, according to a consumer survey conducted in 2023 by The European Consumer Organisation BEUC, the sheer volume and variety of these labels has created a complex landscape that risks overwhelming and confusing consumers, and even raising criticism.
With so many labels present, it is becoming increasingly difficult to discern which claims are genuine and which are merely sales tactics. This leads to a key concern: How can consumers trust these labels, and how can brands maintain that trust in a market oversaturated with green claims?
Interestingly, BEUC found that, even when consumers are unclear about what certain sustainability labels mean, they still influence purchasing decisions. This is largely because “sustainability” has become a powerful emotional trigger – but is it good enough to rely on the general goodwill that the term invokes?
According to the article “Consumers’ Sustainability Demands Are Rising” published by the Harvard Business Review in 2023, research suggests that modern consumers are becoming more critical and demanding greater transparency. They want to know exactly what these labels mean and how they translate to the actual environmental impact of a product.
This is where the risk of greenwashing – the practice of making misleading or unsubstantiated sustainability claims – comes into play. According to BEUC, in Europe and other regions, there is rising skepticism towards brands that use vague, overly complicated labeling systems, that may conceal a product’s true environmental impact. If labels fail to provide clear, honest, and actionable information, the result could be a significant loss of consumer trust.
I believe, for sustainable branding to be truly effective, brands cannot rely solely on labels but must communicate their values clearly and meaningfully through their messaging and aesthetics. This means delivering verified, straightforward information in a way that resonates with consumers, without overwhelming them.
The key is striking a balance between simplicity and transparency. Sustainability shouldn’t just be an add-on like a label but needs to be integrated into the core of the brand’s strategy – the brand’s promise to its customers. Once sustainability becomes part of the brand’s DNA, it can and should naturally influence both the aesthetics and messaging, touching every aspect of the brand experience.
Given the broad scope of sustainability, brands started to adopt various strategies to effectively convey their commitment. One key trend that has emerged is focusing on transparency and authenticity. Today’s consumers, especially Millennials and Gen Z, are demanding clearer information about a brand’s sustainability efforts, as noted by The Harvard Business Review.
The Dutch brand Tony’s Chocolonely serves as a great example of this approach. They make their entire supply chain traceable and provide detailed insights into the cocoa industry. Their packaging goes beyond displaying certifications like Fairtrade; it also educates consumers on critical social issues such as child labor and modern slavery. Additionally, they openly discuss areas where they are not yet succeeding and outline their plans for improvement. This kind of storytelling not only builds trust but also fosters brand loyalty, as consumers feel a personal connection to the brand’s mission.
Another important trend in sustainable branding is minimalist and eco-friendly design. Consumers increasingly expect brands to demonstrate their sustainability efforts through the design and packaging of their products. According to McKinsey’s article “Product sustainability: back to the drawing board”, minimalism in design not only reflects a brand’s environmental commitment but also appeals to a younger, eco-conscious audience.
Lush is a prime example of this approach. Their “naked” products, which come without packaging, reduce waste and offer a unique, eco-friendly experience. This minimalist design helps communicate their sustainability values instantly, showing that the brand is serious about reducing its environmental impact. In this way, eco-friendly design becomes more than just a visual choice – it is a powerful statement about the brand’s commitment to sustainability.
Deloitte highlights the third trend with their yearly study “The sustainable consumer”, which is about creating a purpose-driven narrative. Younger generations are drawn to brands that align with their values, especially when those brands take a clear stand on environmental or social issues. Brands that communicate a strong purpose beyond just selling products can forge deeper connections with their audience.
Patagonia, for instance, is renowned for its activism-driven branding. Their campaigns, like the “Don’t Buy This Jacket” initiative, encourage consumers to rethink consumption and emphasize Patagonia’s commitment to sustainability and environmental activism. By putting purpose at the heart of their brand, Patagonia has successfully built a loyal customer base that is deeply aligned with its values.
Ultimately, sustainable branding goes far beyond simply applying a label; it requires a genuine commitment to sustainability and transparency with consumers. In a crowded marketplace, trust and clarity are just as important as the environmental benefits themselves. As sustainability continues to shape consumer expectations, brands must move beyond surface-level initiatives and embed sustainability into their core strategy, design, and messaging.