Taking the example of decarbonisation commitments, commercialising these successfully implies six major actions (1). First, corporations should elaborate a target portfolio of sustainable offerings, meeting the expectations and demand of a net zero economy (1) (2). Second, they should deepen the value propositions of each element in this portfolio (1) (2). Indeed, this involves taking into account only 10% of the buyers acquire sustainable products to save the planet, whereas 20-40% buy these if they also present health, safety or quality benefits and 80% purchase such offerings when costs, convenience or information transparency are met (1). Third, corporations should interact actively with first users in market segments showing the greatest potential (1) (2). Fourth, corporations should strategise their pricing policy (1) (2). This is the very important step where you transition your cash inflows from past – sometimes unsustainable – markets you were active in towards sustainable ones. Hence, you materialise the extraordinary achievement of a more sustainable business model (congratulations!). Fifth, shape the market environment of your sustainable portfolios by partnering with relevant stakeholders (1) (2). Sixth, corporations will require to transform from the inside, i.e., by collaborating across departments and developing new capabilities (1) (2). By the way, achieving these six steps repeatedly might end up into a “firm-level transformation”, a dynamic capability in itself (3) that companies should train. Indeed, the latter will progressively allow them to continuously catch green markets opportunities and convert these into relevant value propositions enhancing companies’ market position (3). Last, we mainly focused on the product/service level. However, sustainability should also be targeted at the group level by managing the portfolio of industries the company is active in towards more sustainable ones. Indeed, companies strongly aligned on sustainability can even make it a profitability driver (4). To know more about that, check for instance the solution on the pivotal potential of your sales force by going back to the Solutions Explorer!

Context

In the present context, the economic viability of your business can be secured over the long run by dropping dead end markets. To thrive, invest in sustainable markets: they are characterised by notable growth potential and simultaneously better the present and future of humanity. Indeed, renewables and EVs for instance showed how pioneer companies have thrived by investing in sustainable sectors far before cost parity was reached (2). Particularly in the industry, numerous green technologies have neither reached cost nor market parity and therefore still need to scale (2). Thanks to corporate investment and government support, cost premiums progressively decrease, hence opening corresponding sustainability markets (2). Why not take advantage of these new playgrounds? Furthermore, using sustainability to generate fresh cash inflows is mainly a consequence of adapting timely to changing demand streams. Indeed, consumers are ready to pay a green premium for sustainable offerings, price premiums that sustainability trailblazer companies are already harvesting (5). To exemplify, customers of companies in downstream value-chains already pay up to 7% more for their sustainable offerings, a trend which is growing (2). Another example can be taken from sustainability-marketed products in consumer packaged goods, which had a 36% green premium in 2021 in USA (2). Considering U.S. companies for instance, such a trend can be explained by increased consumers trust due to sustainability efforts of the company (6). This trust then drives purchase behaviours meaning greater revenues for the latter (6). Yet, this mechanism is becoming even more profitable when considering the growing purchase power of younger generations, i.e., the most receptive consumers to sustainability (6). Indeed, in coming years’ context, focusing on sustainability is critical for business success as this results in a loyal customers pool, inducing trust of investors, hence strengthening your company’s brands, hence leading to a long-term value creation (7). To sum up, a corporate behaviour tending to avoid sustainability essentially deprives the company from long-term cash inflows sources, resulting in worse living conditions for the company itself and for humanity too, due to an unsustainable use of global resources. Stepping in sustainability markets and industries solves this illogical behaviour. It increases a company’s ability to exist and thrive over time – i.e., its sustainability – by strengthening its revenues in parallel to fighting against resources depletion and climate change, the Sustainable Development Goals 12 and 13 (8). Yes, this amazing opportunity only awaits you to go for it! Will you?

Referencias

Perfil del cliente objetivo

• Negocio

Temas relacionados

06.

Economía circular

12.

Calentamiento global

19.

Objetivos de Desarrollo Sostenible

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