Sustainability for brands: A growth engine or the price for survival?

Canada Sustainability
Mary Shenouda
Mary Shenouda

Senior Director, Insights

Article

Our 2025 Kantar BrandZ Most Valuable Canadian Brands report shows that sustainability has shifted from a peripheral to core strategic priority for brands, essential for both growth and survival.

Brands have had sustainability in their peripheral vision for about two decades, eyeing it with a mix of curiosity, skepticism, and maybe even as a side hustle for some—whether that meant launching eco-friendly variants or cruelty-free lines of fur coats. It was like adding a vegetarian option to a menu in case a group comes to a restaurant with a vegetarian guest.

But sustainability wasn’t a kids’ menu, a fixed item in a restaurant regardless of cuisine. It was never tailored, thought about, or ever refreshed (by contrast, even McDonald’s Happy Meal has constant updates).

Sustainability-first brands were approached with caution: Will Patagonia really make it? Is Tony Chocolonely going to survive?

Years ago, fair-trade kiosks popped up and never made the cut: the quality of products was a compromise for the hefty price paid. The business model wasn’t sustainable.

Patagonia, on the other hand, effectively competes with the best—with no compromises on quality, material, or marketing spend—and is priced correctly for profit and purpose.

Yet the world sits on a massive pile of failing sustainable innovations that promised to reshape the world, only to collect dust on shelves until expiry and join the many unsustainable ones at the landfill.

There’s a growing body of evidence that sustainability can contribute up to 10% of brand growth. There’s also an existing appetite among Gen Z and Millennials to take the extra step and endorse sustainability. But this isn’t a single-sided equation: those same youngsters are embracing fast fashion and rushing to the latest mobile phone model, disproportionately contributing to the global waste pile.

So how does a brand approach the topic of sustainability without risking its image or balance sheet? Here are some thought starters based on learnings from Kantar’s Sustainability Practice:

Determine the role of sustainability for your brand—is it a survival strategy or a growth engine?

Not all brands or industries have the same challenges when it comes to sustainability. Some industries are under scrutiny, and some brands are known for non-sustainable practices. Reducing risks associated with consumers’ concerns is the top priority. Concerns or negative reputation are directly linked to brand rejection. Canada Goose, for example, had to reflect after a big reputation risk, and is now committed to carbon neutrality and the responsible sourcing of down and fur alternatives.

Keeping an eye on where your brand lives on the risk spectrum is important to avoid being blindsided.

That’s not the only criterion, however. Large, stagnant brands can look at sustainability as a growth engine, a way to meaningfully differentiate the brand and secure future growth. Picture a huge brand sold in single-use plastic containers moving entirely out of plastic. A consumer coming to the shelf may have a stronger inclination to move to that brand solely because of this change.

Finally, sustainable innovations executed correctly can bring news and excitement to the brand. At a minimum, they bring value to consumers and elevate the brand’s stance, establishing stronger links that secure some degree of loyalty.

Determining where the brand stands today on risks and understanding the upside from sustainability can help determine which path is most appropriate.

Determine your consumer target—Die-Hards have to love it; Dismissers must accept it

The statements about Gen Z and Millennials’ increasing demand for sustainability apply differently to brands and categories, and even to situations.

Consumers may fall into different segments based on how their actions align with their values. Zooming into the Changemakers and Committed segments at the top (those whose actions and values most align) can help a brand tackle the most urgent changes. Strivers, Pragmatists, and Realists are the core of change and will determine the size of the prize—but the gaps between behavior and belief are wider for these middle segments. By contrast, the Dismissive and Disengaged consumers should not be alienated despite being on the negative side of the equation.

An innovation that doesn’t meet the minimum required by the top segments and doesn’t tackle the challenges by the middle segments will not survive in the market.

Picture a fruit juice company launching a 100% natural juice variant. This puts its entire business at risk if consumers start to wonder what’s in the rest of the products on the shelf, if not 100% fruit juice? Or a company launching recyclable cans when consumers send all their cans for recycling already.

Tackle top barriers to adoption—price might not be the key one

If a brand understands consumers, it tackles their top barriers to sustainability actions first. If their challenge is that “it doesn’t taste the same,” then these perceptions are a priority to address. If the price difference is not an issue, there might be no need to emphasize it. If they cannot find a product on the shelf, there may be no point in marketing it.

One company reshaped its production to reduce the volume of air contained in its packaging, with the aim of reducing the size of the pack and therefore a whole chain of waste. Consumers, however, were more skeptical of the shrunk product shelf impression, sensing that they were getting less, and the company had to continue using large packaging to avoid losing trust. In that case, investing in sustainably sourced raw material would have worked better for those same consumers.

Pace your consumers

Change is slow but sure to happen. Keep an eye on where consumers’ appetite is going and meet them where they are. Asking for compromise during difficult times is less likely to yield results. However, offering value through sustainability can help brands support consumers and secure their affinity.

Whether sustainability is used as growth engine, risk reduction, or to appeal to key targets, there’s a unique path and journey for every brand.

Ignoring the call may be a temporary viable choice, but time is not turning backwards.

A sustainability strategy that’s tailored and true to size is the only correct one for your brand. Partner with Kantar’s sustainability consultants to develop yours. https://www.kantar.com/north-america/solutions/sustainability. Learn more

View our full 2025 Kantar BrandZ Most Valuable Canadian Brands report here

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