Tag Archives: brands and sustainable

Why you should Prioritize Sustainability within a Recession 

The uncertainty of our economy is scary, and with many brands cutting down as of late, thinking that the sustainability and ethical parts of this to the side, it can be bad for the planet, and it’s terrible for business. 

Brands need to be committed to the initiatives and the goals that they had during the previous kinds of recessions, and if you focus on sustainability, you bounce back faster. With the tough economy that we’re in, here’s what we should also be looking at. Sustainability is something that will definitely help you have leverage when you’re a brand that’s looking to figure out how to stay afloat. 

The reality of the Current Market 

With over a thousand brands that are at the front of innovation and working to make changes to the environment, having a D2C business model is something that’s good for a lot of people, especially before they get to the top of the charts.  There are many brands that are dealing with sales not hitting the expectations that are there, leaving them with too much product, and not enough certainty about what’s next, and this is something that’s stuck around in the previous year. 

Plus, with these different aspects, there is a lot going on globally: 

  • Inflation hitting a 40-year high 
  • Gas prices over $5 nationally 
  • The sentiment for the consumer is declining 
  • Hiring declining, with high-profile companies laying off more and more. 
  • Most places slashing prices to get rid of inventory 

This is a common problem for many businesses, and the idea of sustainability may not be something they ware ready for, especially with the next year. 

How ethical brands and sustainable ones Fare. 

Brands that are ethical and sustainable tend to actually do better when faced with a recession and economic downturn. 

Let’s look back to the 2008 recession. Some of the most sustainable brands tend to be the ones that were the most successful, those brands that made aggressive, bold investments during these years did a lot better than a lot of traditional brands. That’s because a lot of experts predicted the opposite, and the thinking that people needed to cut the costs in order to possibly be beneficial to the environment, and it’s something that a lot of companies struggled with. 

In a study back in 2014, it was found that a $1 investment for sustainability companies grew to $22.60 in those that were still sustainable by 2010, and this also is a major increase compared to many of the lost sustainability companies. Plus, a lot of companies that have a strong responsibility and repute do have some declines when they were not working in sustainable fields. 

Some of the greener places and companies actually were able to expand, offering more greener options of revenue, and it also improved the competitiveness during the economic downturn. Plus, a lot of B corporations and those that were known for high standards of transparency and performance did have a much stronger chance to fare during the recession of 2008 than more traditional businesses. 

What this taught us is that if you’re looking to have some sort of plan for when those economic downturns happen, sustainability is the way to do this. While nothing is possible to be recession-proof, and almost all businesses of all kinds will feel this, the goal of this is to pull yourself up, and prioritize the sustainability of the product, and by doing this, you’ll be able to become bigger and better, and bounce back once the aftermath of the recession is over.