miércoles, 8 de enero de 2025

The impact of ESG practices on responsible consumption

To what extent do companies' ESG practices influence our purchasing behavior?

The study Impact of ESG Implementations on Sustainable Consumption Behaviors (China): A Case Study of ANTA Sports Products Limited analyzes the case of ANTA, a leading sportswear company in China, and highlights how ESG strategies (Environmental, Social, Governance) can be transformative—but only if they effectively connect with consumers.

Although ANTA has taken significant steps towards sustainability, consumer awareness of these initiatives remains limited. The study, based on the KAB model (Knowledge - Attitude - Behaviour), shows that a lack of understanding of ESG practices reduces their impact on purchasing decisions. It also emphasizes that ESG strategies must be communicated in accessible and relevant terms in order to connect with consumers, strengthening the emotional relationship with the brand.

The establishment of ANTA’s new "Carbon Neutral Mission" flagship store in downtown Shanghai (ANTAZERO) marked a strategic shift: a move towards making its ESG practices visible not only to collaborators and suppliers but also (and specially) to the general public. According to the KAB model, increasing consumer awareness of these initiatives not only enhances brand perception but also fosters more sustainable purchasing behaviors.

Keys to Successful Integration: IMPACT

Ruihao Chen's study, which I had the privilege of supervising, inspired me to reflect on the essential elements a brand needs to effectively integrate its ESG practices into its business strategy and genuinely influence consumer behavior. In this process, I developed a simple mnemonic rule to easily identify these key elements:

I - Integration into the product
ESG practices should be directly reflected in the goods and services offered. This includes using sustainable materials, recyclable packaging, and responsible production processes. Consumers expect sustainability to be tangible and visible in the products they buy.

M - (Effective ESG) Marketing
Campaigns should communicate authentic and relevant stories that highlight the positive impact of ESG initiatives on society and the environment. This approach humanizes sustainability strategies and helps consumers connect emotionally with the brand.

P - (Consumer) Participation
Engaging customers in sustainable initiatives, such as recycling programs, incentives for responsible behaviours, or interactive experiences, creates a deeper bond between the consumer and the brand. This reinforces the customer’s commitment to ESG values.

A - Authenticity
ESG initiatives must be genuine and aligned with the company’s core values. Avoiding "greenwashing" is essential to building credibility and trust among consumers.

C - Clarity and transparency
Brands must communicate their ESG practices in a simple, accessible and honest manner. Clear and measurable reports, like those from ANTA, help consumers understand the real impact of the company’s sustainable actions.

T - Transformational education
Companies should educate their consumers about the importance of sustainable practices and how they benefit the environment and society. Informative and awareness-raising campaigns encourage more active adoption of responsible behaviours.

With this mnemonic rule (IMPACT), we can easily remember the key elements for effectively integrating ESG practices into a company’s commercial and communication strategy, maximizing their impact on consumer behavior.