Sustainability is now business critical – How brands must adapt
Sustainability has rapidly shifted from a niche concern to a fundamental expectation among consumers worldwide.
Today, sustainability is not just a value; it is a prerequisite for growth, credibility, and survival in an increasingly demanding market.
According to McKinsey, 84 percent of global consumers consider sustainability a very important factor when choosing products and brands. Capgemini reports that 79 percent have already changed their purchasing preferences based on social or environmental impact.
Furthermore, PwC finds that 85 percent of consumers experience the effects of climate change in their daily lives and prioritize sustainability in their buying decisions.
For companies, the message is clear. Sustainability is no longer optional. It has become a consumer expectation.
Consumers support sustainability – and are willing to pay for It
Despite inflation and economic uncertainty, research shows that consumers are not only demanding sustainability; they are willing to pay for it.
According to PwC, consumers are on average willing to pay almost 10 percent more for sustainable products.
Nearly half of all consumers across 23 countries purchased at least one sustainable product or service in a given month in 2023.
Companies that succeed in authentically integrating sustainability into their brand will not only meet expectations; they will be rewarded by the market.
Growing skepticism toward greenwashing
As consumer demand for sustainability rises, so does their vigilance.
Today, only 25 percent of consumers trust brands' sustainability claims, according to NielsenIQ.
Fifty-seven percent suspect that brands they buy from engage in greenwashing.
Seventy percent actively research brands' claims before believing them.
Consumers are no longer satisfied with vague slogans. They demand clear documentation, transparency, and real results.
The consequences of broken trust are severe. Seventy-two percent of consumers say they avoid brands that have been accused of misleading claims regarding environmental or climate impact.
When ssustainability claims fall short – lessons from expensive mistakes
Recent years have shown how serious the consequences can be for brands that fail to back up their sustainability messaging:
- Volkswagen paid over 34 billion dollars following the Dieselgate scandal, which severely damaged its global reputation.
- In 2022, H&M and Decathlon were investigated by consumer authorities for vague sustainability claims like "Conscious" and "Eco-design." Both had to remove misleading labels and donated a total of €900,000 to sustainability initiatives.
- KLM was found guilty of greenwashing by a Dutch court for promoting "sustainable flying" without sufficient documentation.
Other airlines have had similar experiences. Misleading sustainability marketing is increasingly being met with bans, lawsuits, and customer backlash.
The signal is clear. Brands that fail to support their sustainability communication with genuine action and honest facts risk lost customers, reputational damage, lawsuits, and significant financial penalties.
The future of sustainability communication: higher standards, stricter requirements
Experts agree: Sustainability communication will only grow more important – and more demanding.
Gone are the days when companies could simply say "We care about sustainability" without backing it up.
In the coming years, companies must deliver:
- Clear, data-driven stories showing measurable progress
- Public reporting of concrete results
- Verified actions and third-party certifications
- Honest communication about both successes and setbacks
In addition, regulatory bodies around the world are tightening requirements.
From 2026, the European Union will ban vague environmental claims and require far more evidence to substantiate sustainability messaging. Other markets are following similar paths.
What this means for brands
Sustainability communication is no longer just a marketing tactic.
It is becoming a core part of brand identity, trust, and future competitiveness.
Brands that succeed will be those who:
- Ground their communication in verifiable actions
- Document progress with transparency
- Build emotional connections through authentic stories
- Dare to be open about the journey, not just the successes
- Use creativity to make sustainability relevant and engaging
Brands that fail to meet these expectations will fall behind in an increasingly aware market and face both regulatory and commercial consequences.
In Summary: Sustainability has become business logic
Consumers demand action, not just promises.
They demand transparency, not just polished narratives.
They will reward brands that show genuine commitment – and abandon those that do not.
This is no longer a trend. It is the business logic of the future.
The question is no longer whether your brand must take sustainability seriously.
The question is how you do it – and how you communicate it in a way that builds lasting trust.
Sources: McKinsey, Capgemini, PwC, Deloitte, NielsenIQ, Simon-Kucher, Edelman Trust Barometer, Clean Energy Wire, along with reporting on Volkswagen, H&M/Decathlon, KLM, and regulatory developments.
- McKinsey – Sustainability as a Consumer Priority
https://www.mckinsey.com/business-functions/sustainability/our-insights/sustainability-as-a-consumer-priority - Capgemini Research Institute – Sustainable Consumption: Why consumers and companies must wake up
https://www.capgemini.com/insights/research-library/sustainable-consumption/ - PwC Global Consumer Insights Pulse Survey 2023
https://www.pwc.com/gx/en/industries/consumer-markets/consumer-insights-survey.html - Deloitte – 2023 Sustainable Consumer Report
https://www2.deloitte.com/global/en/pages/consumer-business/articles/sustainable-consumer.html - NielsenIQ – Understanding Greenwashing and What Consumers Think
https://nielseniq.com/global/en/insights/education/2023/greenwashing-and-consumer-perception/ - Simon-Kucher – Global Sustainability Study 2023
https://www.simon-kucher.com/en/insights/global-sustainability-study - Edelman Trust Barometer – Special Report: Trust and Climate Change 2023
https://www.edelman.com/trust/2023-trust-and-climate-change - Clean Energy Wire – EU to ban vague green claims
https://www.cleanenergywire.org/news/eu-ban-vague-green-claims-corporate-environmental-marketing - BBC News – Dieselgate: Volkswagen's $34 billion emissions scandal
https://www.bbc.com/news/business-34324772 - Reuters – Dutch watchdog targets H&M, Decathlon over sustainability claims
https://www.reuters.com/business/retail-consumer/dutch-watchdog-hm-decathlon-over-greenwashing-2022-06-28/ - The Guardian – KLM found guilty of greenwashing over ads promoting 'sustainable flying'
https://www.theguardian.com/environment/2024/mar/21/klm-greenwashing-ads-sustainable-flying - Financial Times – Airlines under scrutiny over greenwashing claims
https://www.ft.com/content/9834b3b6-2f83-4aa1-a314-5dc7a5d3c370