CMO Sustainability Accelerator

ACTION PLAN

The Future is Mainstream Green
Introducing a New Growth Strategy
Click here for an overview (abbreviated version)

1

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Powered by BCG

A step-by-step action plan
focused on driving Mainstream
Green

Introduction

Pg. 9

The Mainstream Green approachPg. 34

Get the fundamentals rightPg. 43

Key takeaways and next steps

Pg. 47

Additional resources
2

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Table ofcontents

Pg. 3

Introduction• Why now?

3

Copyright © 2022 by Boston Consulting Group. All rights reserved.

• Why environmental sustainability for marketers?

There is a tremendous opportunity for customers
to be at the center of the CEO’s sustainability
agenda to drive growth and accelerate thetransition to a more sustainable economy… and CMOs provide that critical unlock

4Why CMOs?
Represent the voice of the customer
Without this crucial stakeholder, companies
can only achieve a portion of their environmental
sustainability goals

Case study
How understanding the customer perspective
unlocks carbon reduction goals
Company with ambitious carbon reduction goals realized that
supply chain optimization was only projectedto achieve 1/4 of the target
Product itself was key driver of emissions and needed
to be changed, with two key challenges:• As “Chief Collaboration Officers,” CMOs build allies andensure cohesion across functions to realize businessvalue from sustainability• As experts on engaging the customer, CMOs can flip
the script on hurdles to environmental sustainability
adoption, helping make complex topics digestible andunfamiliar products desirable• Still had to deliver on customer needs• Had significant perceived barrier that more sustainable products
equated to lower quality products

Collaborative “win-win” product innovation put company on
track to achieve 100%+ of CO2 reduction goals, with marketing
to show customers that the new product is objectively better—
only possible by including customers and their needs in thestrategy

Source: BCG experience

5

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Bring a unique set of skills

Why now?

• Shareholders• Employees• Customers• Governments

Companies must help close the“say-do” gap to achieve• Business growth• Environmental goals and impact

for top-quartile environmental
performers globally2

total shareholder
return~68%

say they are more willing toaccept jobs from organizationsof employees they consider to beenvironmentally sustainable3

96%

say they try to live sustainably atleast some of the time

7.1xof sustainability-focused CPG
products vs. conventional4of US customers

growth rate<20%

are on track to meet sustainability
targets thatof retailers >70% of them have set

69%

believe most companies are using
sustainability to improve theirof global customers image or sell

<10%

consistently act and purchase on
sustainability just to “save theof global customers planet”

127

now have restrictions on singleuse plastic

countries

1. Environmental, social, governance 2. +3pp total shareholder return: Average customer company valuation premium versus median ESG performers, all else equal; pp = percentage points 3. 68% of employees: In addition, ~1 in 3 of those surveyed who changed jobs
in the last year said they accepted a lower salary to work for sustainable or socially responsible organizations 4. Versus conventionally positioned products. Products with sustainable positioning drove ~55% of all growth in customer products in 2015 – 2019.
Sources: +3pp total shareholder return: World Economic Forum (2022); <20% of retailers are on track: CDP emissions target database; 68% of employees are more willing to accept jobs from environmentally sustainable organizations: IBM Institute for Business Value
survey (Feb 2022); 69% of global customers believe companies are using sustainability to improve image or sell: BCG sustainability customer survey, June 2022; 96% of US consumers try to live sustainably: Sustainable Brands Socio-Cultural Trend Tracking Research(Aug 2021); <10% of global customers consistently act and purchase sustainability: BCG analysis (Center for Customer Insight consumer research 2020 and 2022); 7.1x growth rate for sustainably focused CPG products: First Insight, NYU Stern Sustainable Market Share
Index 2021; 127 countries restrict single-use plastic: World Resources Institute (2019)6

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Sustainability is not a new topic, but pressure is
growing from a variety
of stakeholders to address the environmental
component of ESG1

+3pp

Industries are at different stages of maturity when it comes to sustainableaction by customers—all have a “say-do” gap
Percent of customers at various stages of “say” and “do”

Implication formarketers

1.Luxury

Electricity
providerLeisuretravelPCs,
tablets

Auto

SkincareBeverages products

ApparelLess Evolved

Concerned

Customers express concern
for sustainability but mostare not yet acting, creating
an opportunity formarketers to help close
this "say-do" gap2.

Snacks…about sustainability in
category

Adopting…sustainable behaviors

Acting…by purchasingsustainable

Paying…stated premiumfor sustainability

Dining
out

Home
care

More Evolved

69%

62%

49%

80%

70%

74%

80%

68%

71%

71%

62%

75%

32%

27%

21%

60%

34%

41%

39%

31%

33%

38%

53%

57%

7%

8%

9%

10%

10%

11%

11%

12%

12%

12%

16%

18%

2%

3%

3%

4%

1%

4%

3%

4%

4%

3%

4%

7%

1. Luxury excluded from Germany, India and Brazil. 2. India, China and Brazil excluded from electricity provider acting stage as not applicable.
Questions evaluated the likelihood or degree of concern, adoption, action or payment across each category. Weighted market representative random
sample only, n=11,836; countries include USA, Japan, Germany, France, Italy, China, India and Brazil. Numbers represent simple averages of % of
respondents per country
Source: BCG sustainability customer survey, June 2022

TO LEARN MORE, SEE BCG'S RESEARCH ON "CONSUMERS ARE THE KEY
TO TAKING GREEN MAINSTREAM"

7

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Grocery
retailAchieving Mainstream Green is a key opportunity formarketers to help close the “say-do” gap
This is a guide focused on taking
green beyond niche, beyond luxury,

Where we focus:

and beyond a statement. To the

Drive sustainable choices

Green
Mainstream Green is about driving
sustainable choices by marketing to
all consumers, not just those whoare moved by sustainable claims

Mainstream
GreenMarketing such that collective
customer behavior leads tosustainable outcomes

Most guidelines focus here:

Make sustainable claimsMarketing using a sustainability
benefit as the primary message

8

Copyright © 2022 by Boston Consulting Group. All rights reserved.

mainstream. We call it Mainstream

The Mainstream Green approach• Understand customer needs that drive sustainable choices• Create a sustainable offering with customer-centric innovation

9

Copyright © 2022 by Boston Consulting Group. All rights reserved.

• Change behavior and promote sustainable choices

Understand driversof choice

Customers

Create asustainable
offering

Marketers can inspire morecustomers to makesustainable choices by
putting them at the center ofthe growth strategy

Promote sustainablechoices10Understanddrivers of choice

Create asustainable offering

Promotesustainable choices

Identify the needs that drive
choice and barriers that hinder
sustainable choices

Shape the products and services thatdrive sustainable choices and remove
real barriers to adoption

Remove perceived barriers by marketingproducts so that collective customer
behavior leads to sustainable outcomes

Note: organizations with a sustainable offering that meets customers’ needs and addresses real barriers may not need topursue additional innovation

11

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Three steps help make environmental
sustainability a growth strategy withmainstream appeal

Mainstream Green starts with understanding customers’ drivers of choice

Understand driversof choice

Customers

Promote sustainablechoicesCreate asustainable
offering

1

Identifying customer needs and barriers/enablers is a
critical first step that helps marketers know where tofocus on Mainstream Green

2

Linking sustainability to broader related needs can growcustomers 2 – 4x where sustainability is related to, but
not a primary driver of, choice3

Making sustainability a “bonus benefit” significantly
expands the sustainable customer base to those forwhom sustainability is not a driver of choice at all

12

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Section Key Takeaways

What are our customers’ needs and barriers?
• What are key customer needs?
• What types of barriers and enablers impact sustainable choice?

How can we best drive sustainable choices?
• Where are the greatest opportunities for our company?
• How can our portfolio drive sustainable demand for green and non-green
segments?

What will it take to drive action?
• What collaboration is necessary to remove customer barriers?
• What is the role of innovation versus customer engagement?

13

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Several key
questions canhelp pinpoint whereneeds
and barriers meetsustainable choice• What is the role of sustainability in our market and category?

Steps to identify where customer needs and barriers overlap with sustainability
Understand

Align

Drive

Customer starting point

Priorities

To action

Key Action Steps• How do sustainability benefits drive choices?
• How do sustainability-associated benefits(or trade-offs) drive choice?
Which barriers prevent sustainable choices?

How should we define and prioritize opportunities
considering:• Customer needs• Step 2, Create a sustainable offering• Environmental impact

What tactics can we use to overcome perceived barriers?

• Our company and starting point• Are the barriers real, i.e., pertaining
to access/use?

What trade-offs do we need to make?

• Are the barriers perceived, i.e., pertaining
to feelings that a trade-off is required?

How do our opportunities align across our portfolio
strategy?

What does this tell us about strategic choices andopportunity sizes?

How might we adapt our product portfolio to overcome
real barriers? Do we need to develop, optimize, or both?

• Opportunity size

• Step 3, Promote sustainable choices
How do we leverage relationships up and down the value
chain to drive action?

Key Output

A clear understanding of drivers of choiceDirection for sustainable growth

Source: BCG experience

SUCCESS STORY: INCAPTO

Cross-functional actions
14

Copyright © 2022 by Boston Consulting Group. All rights reserved.

How do our customers’ needs relate to sustainability?

A refined understanding of whether each barrier is real or perceived
determines the most effective way to drive sustainable choice
Nature of barriers

Next steps

Is the barrier real?

Innovation solutions can take several forms“It's hard to take a cross-country road trip
in an electric vehicle”

Is the barrier perceived?

Products andservices

Business models

Technologies

Customer engagement toolkit creates leverage“Washing dishes by hand makes them cleaner and is betterfor the environment than using the dishwasher”
A customer's feelings that sustainability requires a trade-off with
important product or service attributes

Marketing

Sales

Pricing

Customerexperience

Source: BCG experience

SUCCESS STORY: TIDE

15

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Service, product, or infrastructure shortcomings that makethe purchase or use of sustainable products prohibitive

Sustainability drives choice in different ways across markets and categories
Drivers of choice by market and category

India
80%

China
FranceBrazil60%

Germany
USA
0%

Japan
0%

1%

3%

5%

7%

Sustainability as top need for last purchase (% of customers)2
ApparelAutomotive

Beverages

1. Question text: Respondents who agree with statement “I buy products environmentally friendly, even if they cost more” (top 3 box)
2. Question text: Respondents who chose “a choice which is environmentally and socially responsible” as top need on last purchase via MaxDiff
prioritization. N = 312–741 by country and category, 2,826+ by country, 2,387+ by category.
Source: BCG CCI research global drivers of customer choice, September 2020

Streaming

Payments

SkincareSnacksHealthsupplement

TO LEARN MORE, SEE BCG'S RESEARCH ON "DEMYSTIFYING GLOBALCONSUMER CHOICE"

16

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Most customers areconscious ofsustainability; however,
only ~3–6% had
sustainability as the#1 “driver of choice”
on their last purchase

Percent who say they buy environmentally
sustainable products, even if they cost more1

Data Insight100%

Communicating a broader set of benefits for sustainable products could
double or quadruple the number of customers who act
Percentage of customers with sustainability-related drivers of choice

Implications formarketers

43%

Sustainability-related
needs cited among top
three reasons topurchase1

42%
36%

34%
27%
20%

Sustainability citedamong top threereasons to purchase1

16%

14%

7%
Beverages

Automotive

10%

10%

7%

Skincare

Leisure travel

Grocery retailElectricity

Needs that consumers associate with sustainable options in each category

Healthy

Safe

Safe to use

Safe

High quality

High quality

Healthy

Clean and Hygienic

Guilt-freeSocially responsible

Socially responsible

Socially responsible

Socially responsible

Question text: What were your top 3 reasons for purchasing this particular product or service?
Note: n =19,024, including booster sample; results from US, Japan, Germany, France, Italy, China, India, and Brazil. Global category numbers inthis chart represent simple averages of category scores across surveyed countries.
Source: BCG climate and sustainability consumer survey, June 2022

High quality
products
Lots of sustainableproducts

High quality, reliable
Socially responsible

Socially responsible

17

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Drive sustainable choices
by appealing to needs
associated withsustainability (and notsustainability alone)Customer-centric innovation can help overcome real
barriers to Mainstream Green
Section Key Takeaways
1

Customers

Promote sustainablechoicesCreate asustainable
offering

Marketers can help prioritize the right approach toinnovation by understanding which real customer
barriers need to be removed

2

Innovation creates a win-win-win solution that makessustainability an "and", not an "or"3

Customer-centricity elevates sustainability innovation
for collaboration across functions and produces better
outcomes

TO LEARN MORE ABOUT GREEN INNOVATION,
SEE BCG'S "MOST INNOVATIVE COMPANIES 2022"

18

18

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Understand driversof choiceDoes the product or service need to be modified?
• How can we innovate the core offer to remove barriers, improve sustainability, anddrive usage?

• Is there an opportunity to create a whole new sustainable product/service?

Does the business model need to be changed?
• Is there opportunity for us to expand our business into adjacencies(e.g., up- or downstream) and drive sustainability?
• Where can we leverage partnerships to encourage more positive
behaviors (e.g., resale)?

Does new technology need to be invented?
• How can we focus our R&D efforts to solve sustainability barriers?
• Is there a partner whose technology we can apply and amplify tomake our product/service more sustainable?

SUCCESS STORY: DOLE

19

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Understanding thereal barriers thatprevent access andusability guides which
innovation approach
will best enable
sustainable choices• How do we reimagine product/service usage for a more sustainablevalue proposition?

Choosing the right type of innovation combines design thinking, and lean and agile
methodologies into four phases; marketing contributes the customer-centric lens
Sense

Spark

SprintScale

Build knowledge

Generate ideas

Run experiments

Activate in-market• What are the material sustainability
topics for your geography, industry,etc.?
Ø Step 1, Understand driversof choice• Which stakeholders should
participate in ideation workshops togenerate a diverse set of ideas toovercome barriers?
• Do our prioritized ideas account for
the following?
––––

Sustainability objectives
Brand strategy/purpose
Current product andservice portfolio
Target segments• How can we quickly build a minimum
viable product (MVP) to test, learn,
and iterate on how to overcome
sustainability barriers?
• How can we create room
to experiment, innovate, anddrive behavior change (e.g., producttrial, switching, usage)?

• Will launching the newsustainability features, products,
or experiences generate value,
relevance, and trust?
• Are we prepared to scale theinnovation (e.g., are our value
chain partners bought in)?
Ø Step 3, Promote sustainable choices

Marketing role
• Identify sustainability topics thatdovetail with customer drivers ofchoiceSource: BCG experience• Weigh in on what changes will movethe needle with customers, elevating
sustainability innovation out of asingular functional silo

• Run in-market testing(in-store, in-field, online)• Enable full breadth of innovation
possibilities, from small changes
to big transformations• Build go-to-market plan, including
measurement strategy to track
success throughout product lifecycle

20

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Questions to guide sustainability innovation
For each step, the company should consider: Do we build it in-house, partner with another company, or acquire the capability/solution?

Understanding the nature of barriers to sustainable choice
helps identify the most effective solutions to address them
Percentage of customers who agreed that barriers in each category prevented them from making
sustainable purchases• The automotive industry
faces conveniencebarriers that requireinnovation• Skincare and beveragecategories have thehighest trust barriersFrequent purchaseLess frequent

Grocery retail

Beverages

Skincare

Electricity

LeisuretravelAutomotive

Convenience – difficulty using/buying

25%

18%

13%

37%

52%

73%

Quality – bad product quality

19%

26%

37%

28%

36%

52%

Pricing – unaffordable

52%

37%

37%

55%

31%

65%

Availability – inaccessible/unavailable

49%

43%

37%

18%

30%

15%

Awareness – don’t know product exists

47%

50%

48%

45%

42%

27%

Trust – don’t trust green claims

27%

31%

31%

10%

30%

15%

Social/Psychological – reluctance to change

35%

45%

42%

35%

47%

25%

Sustainability not top of mind

30%

25%

21%

14%

22%

10%

Barrier

Likely requires innovation

May require either or bothLikely requires customer engagement

Question text: What would you say is holding you back (if anything) from purchasing more sustainable products/services within each category? Percentage of category buyers/users who select any ofrank 1 to 5 for barriers. Simple averages of % of detailed barrier list taken to arrive at theme level %. Simple average of % of each barrier from countries taken to arrive at category level average
percentages. Electricity not included for India as no options available for selection
Note: Weighted market representative sample, n=19,024; countries include USA, Japan, Germany, France, Italy, China, India and Brazil
Source: BCG climate and sustainability consumer survey, June 2022

21

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Data InsightInnovating to remove convenience and quality barriers would help unlock leisure-travel
customers on a global scale
Percentage of customers who ranked barrier as one of the top 5 barriers holding them back fromsustainable leisure travel

Marketers can help theircompanies prioritize
innovation options toaddress top barriers tosustainability

Leisure travel
Pricing

36%

35%

23%

29%

34%

27%

29%

38%

Convenience

45%

50%

62%

55%

51%

43%

57%

52%

Quality

33%

32%

32%

17%

33%

53%

62%

25%

Blue and red indicates top barrier for country, across all real and perceived barrier types

Convenience barriers• Customers believe sustainable travel takes toolong and is too complex compared to lesssustainable options• Opportunity for marketers to minimize travel
time and transfers to better meet customer
needs (e.g., airlines partnering with rail toreduce short-haul flights)

Quality barriers• Within the quality barriers, Brazilian andChinese customers over-index on comfort,
reliability and safety barriers• Marketers should do further research to
uncover cost-effective comfort and safety
improvements to resolve these tensions

Question text: What would you say is holding you back (if anything) from purchasing more sustainable products/services? For each category, % of respondents who rank 1 to 5 for barrier statement. Calculated among
category users/buyers.
Note: Weighted market representative sample, n=19,024; countries include USA, Japan, Germany, France, Italy, China, India and Brazil.
Source: BCG climate and sustainability consumer survey, June 2022.

22

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Implication formarketers

Removing perceived barriers through engaging marketing is the final
step to catalyze Mainstream Green

Understand driversof choice

Customers

Promote sustainablechoicesCreate asustainable
offering

1Marketers have powerful tools and techniques
to convert customers and accelerate the shift
to sustainable choices2

For early sustainability adopters, remove friction
to purchase, strengthen customer connections,and amplify advocates authentically3

For sustainability laggards, disrupt existing
habits and inspire and empower customers towardgreener options

23

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Section Key Takeaways

Who are the existing sustainability (early) adopters?
• Who are the sustainability adopters within our existing customers oramong those we are trying to acquire (and for what occasions)?
• How can we make the purchase of our sustainable product or service
as easy as possible, particularly for repeat purchases?
• How can we turn them into loyal advocates for our product/service?

Who are the sustainability laggards?
• What are their existing sustainable perceptions and habits?
• How can we best disrupt to build awareness and remove perceived
barriers to sustainable choices (e.g., lower quality)?
• How can we nudge consumer behavior toward sustainability
adoption with marketing, sales, and pricing?

24

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Marketers can help theirorganizations
understand where
customers are along thesustainability adoption
curve and adapt how
they engage

Marketers can deploy tools according to where customers areon the sustainability adoption curve and desired outcomes
Illustrative examples of how sustainability tools can apply across existing customer engagement toolkit
Businessgoals

Acquire customer

Customerjourney

InspireInformCross-sell, up-sell
ConvertPurchase/sign-up

RetainAdvocate

Re-engage

Precision marketing

Customer journey (including product/service usage)

Precision targeting, leveraging first-party audience segments
and data sharing (via data clean rooms) to create customized
look-alike “green” audiences

Customized experience (e.g., by product,
price, or sustainability segment)

Branding
Personalized offers1

Media mix••

Strategies to optimize relevance across segments and targets
Partnerships to optimize media planning, including data sharing fortargeting or suppression and measurement of sustainability campaigns• Personalized offers based on discount and/or sustainability purchase propensity• Working with suppliers through the value chain to create incentives for greener purchases

Sales channel strategy and sales force enablement

Activation of sustainability advocates• Activation of value chain partners (e.g., retailers, franchisees, etc.) and new sales and fulfillment models
for green choices (e.g., social commerce, subscription)• Sales forces enablement with sustainable offers (e.g., government subsidies), streamlined processes emphasizing
sustainability and convenience (e.g., virtual sales)

Bottoms-up sustainability community- and/or
ecosystem-building and amplification

Additional tools to consider: Sponsorships and partnerships, loyalty programs, nudges
Including discounts and promotions, “green premium”, and price pack architecture strategies
Source: BCG experience

Additional detail on next page25

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Tailored creative (e.g., differentiating images or messaging based on sustainability behaviors), maximizing user-generated sustainability content (e.g., short-form video, etc.)

Three example tools and illustrative “test and learn” steps to overcome perceived
barriers and enable sustainable purchases and behavior

Tailoring sustainability messages andexperiences, using technology at scale

Nudges• Demonstrate link between sustainable options and customer’s personal needs andpreferences• Focus on sustainability habits by tapping into customer motivations, reinforcing existingsustainable routines, and building incremental sustainable routines• Highlight sustainable options throughout the purchasing journey and use prompts toencourage customers to adopt new behaviors• Simplify sustainable choices by making them the default

Designing choice architecture to altersustainability behavior in predictable,easy, low-cost ways

Sales channel
strategy
Where or how a product/service issold to make sustainable choices
more accessible
Sources: Harvard University; BCG experience• Educate customers on environmental costs, share data and insights that highlight thevalue of sustainable options

Perceived barriers
addressed:• Awareness• Pricing• Trust• Social• Lack of concern

Perceived barriers
addressed:• Awareness• Trust• Social• Lack of concern• Engage customers and communities in actions that reinforce their commitments—reflectsocially acceptable group behaviors• Consider new distribution models (e.g., subscription)• Optimize last mile delivery (e.g., through utilizing electric vehicles,
bundling, etc.)• In B2B or B2B2C businesses, explore partnerships with business customers to promotesustainable options and jointly reach sustainability and business goals

Perceived barriers
addressed:• Awareness• Availability• TrustFOR ADDITIONAL DETAILS ON THE POWER OF NUDGES SEE BCG’S“NUDGING CONSUMERS TOWARD SUSTAINABILITY”

26

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Precision marketing• Provide the right message, through the right channel, at the right moment to prompt thedesired sustainability behavior

Implication
for marketers
Balancing the claims that
customers care about withoutcomes that are best for
the environment ensuresmeaningful sustainability
outcomes and reduces therisk of greenwashing

Preferred
claimsBeverages“Free from” badingredientsFree from pesticides
Antibioticfree/hormone-free

SkincareGrocery retail“Free from” badingredients

Packaging

100%/90% natural
Free from chemicals

Minimal/no plastic
in store
Non-plastic bags

Packaging

Packaging

OriginRecyclable
Made from recycledmaterials

Recyclable
Made from recycledmaterials

Sources from ecofriendly suppliers
Sells local products

Climate/nature

Climate/nature

Climate/nature

Low carbon
Organic
Carbon offsets

Protects forests &biodiversity
Non-harmful waste

Minimizes food waste
Protects forests andbiodiversity

OriginOriginLocally madeLocally sourced
ingredients

Locally madeLocally sourced
ingredients“Free from” badingredients

Leisure travel

Electricity

Automotive

Climate/nature

Climate/nature

Climate/nature

Invests in R&D forgreener travel
Efficient route tosave fuel100% sustainablesourcesProtects forestsand biodiversity

Zero emission
Lower CO2 emission
Lower particleemission technology

Packaging

OriginOriginRecyclable/reduced
packaging on board

Electricity produced
locally

Assembled in yourcountry“Free from” badingredients
Offers products freefrom pesticides
Organic products

Offers products freefrom pesticides
Organic products

Question text: Which of the below claims are most and least important to you when making purchasing decisions for [each category's] product/service? N>200 for each category
Note: All claims pertain to environmental sustainability. Electricity not tested in China, Japan, India, Brazil.
Source: BCG sustainability customer survey, June 2022

27

Copyright © 2022 by Boston Consulting Group. All rights reserved.

For sustainability adopters, marketers can be even more effective if they address
the environmental claims this customer group cares about mostMarketing can help change the perception that sustainable products
are more expensive, removing a barrier for laggards
Data Insight

In contrast, nearly 1 in 4 sustainable
2 buyers assert that sustainableproducts are cheaper
A “price-awareness gap” exists among
non-sustainable buyers, with ~20%
3 unsure of the price comparison
between sustainable and nonsustainable options

More expensive

Same price

29

1

37

DATA TOBE SHARED42WHEN
FINALIZEDCheaper23

Don’t know

6
Sustainable buyers

39
6

2
3

18
Non-sustainable buyers

Question text: You said you thought the product you purchased was in some way sustainable or eco-friendly: How much more do you think it would it cost, compared to what you paid? How much cheaper than the price you paid, would you
say? Please provide your best guess/estimate as a percentage of what you paid
Source: BCG sustainability customer survey, June 2022

28

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Non-sustainable buyers are more likely
1 to believe that sustainable options are
more expensiveFor laggards, marketers can help drive new behaviors that close the gap
between intent and action

Many tools exist to help
marketers close the"say-do" gap including
articles and tools from
Sustainable Brands

Source: Sustainable Brands

Understand the “intent-action”
gap at a general population andbrand-specific level withbenchmarks via the Socio
Cultural Trend Tracker, an annual
research study, with ongoing
pulses, designed to assess
consumer attitudes to andaround sustainability

Through this research,
Sustainable Brands createda short list of the Nine
Sustainable Behaviors thatpeople and brands can take
together to create positivechange…

… and created the Ad
Sustainability Awareness
Platform (ASAP) that enables
marketers to measure theircreative assets’ effectiveness todrive action against thesebehaviors
Reach out to learn more about
the Sustainable Brands toolkit

TO LEARN MORE ABOUT TOOLS TO HELP MARKETERS CLOSE THE"SAY-DO" GAP VISIT SB BRANDS FOR GOOD

29

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Implication
for marketers

Apply the action plan for Mainstream Green• Understand customer needs• Analyze role of sustainability for each need(i.e., reason to believe versus trade-off)• Identify real and perceived barriers andcorresponding enablers of sustainability
adoption• Measure risks of inaction andopportunities to drive growth forthe business

Create asustainable offering

Promotesustainable choices• Hold multi-stakeholder ideation
workshops to generate a diverse
set of ideas• Consider full customer engagement toolkit
and select approach(es) toaddress perceived barriers• Prioritize ideas, considering:• Tailor deployment to different customer
archetypes (e.g., market, sustainability
maturity, typesof perceived barriers, step in the customer
journey, etc.)• Test and gather feedback on tool
effectiveness, adjusting as necessary––

Sustainability and growth objectives
Brand strategy and purpose––

Current product and service portfolio
Target segments• Build minimum viable products (MVPs) tocollect customer feedback and provide
continuous customer input• Launch new sustainability features,products, or experiences and prepareto scale the innovation
Continuously measure impact, iterate, and improve

Source: BCG experience30

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Understand driversof choiceExamples of how companies are startingto drive Mainstream Green• For additional resources or to submit your own case study, contact
the Association of National Advertisers

31

Background• Tide is an American laundry detergent brand and one of the best-sellingdetergent brands in the world

Insight and actions• Customers desired a detergent that ensured clean clothing and hesitated to washin cold due to:– The perception that cleaning in warm water was more effective– A lack of awareness of the environmental and financial benefits• Recognizing that 90% of energy usage came from heating water to wash, Tide
innovated to increase product effectiveness in cold water• Tide promoted cold-washing as a sustainable choice, collaborating with sponsors
and influencers to overcome lingering customer skepticism. They:– Emphasized cost savings and increased clothing lifespan– Convinced 15 NFL teams to #TurnToCold to overcome the perception oflower efficacy– Published the environmental benefits of washing in cold to nudge customers
towards sustainability

Results• 39% increase in sales of Tide Hygienic Clean• 2 billion earned media impressions• 1.3 billion new loads washed in cold
• 1 billion kg CO2 saved
Source: P&G; Tide website; GreenBiz

Case study | Dole Sunshine Company partners andinvests in new technology, turning pineapple
leaves into leather and reducing food waste
Background• Dole Sunshine Company (DSC) is one of the largest producers of fruit andvegetables in the world with revenues close to $2B

Insight and actions• Customers desired inexpensive, good-looking, comfortable, planet-friendly
and sustainable leather alternatives• DSC, seeking ways to reduce their food waste and emissions, partnered with
Ananas Anam, a leather alternative pioneer, to overcome the lack ofsustainable, non-petroleum-based options:– DSC monetized a waste stream and capitalized on increased demand for
Piñatex, a brand owned by Ananas Anam that creates alternative leather
from DSC's pineapple waste– DSC has invested both funds and resources to build an ecosystem thatencourages growers to participate in fiber production• Ananas Anam's brand Piñatex has expanded, partnering with over 200 brands
to increase customer accessResults• Growth rate on track to become 10% of DSC ingredient business by 2025
• Waste reduction in line with Dole Promise of zero fruit loss by 2025
• Cut emissions by reducing the amount of pineapple leaves left to decompose
and produce methane
Source: Dole Sunshine Company

32

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Case study | Tide innovates and educatescustomers on why it is better to wash in coldwaterCase study | Incapto drives sustainablebehavior change through better coffee
experiences

Case study | Google Cloud empowers
customers to choose sustainable cloudcomputing

Background

Background

Insight and actions• Two key drivers of the coffee experience, convenience and taste, contributed
to 60B capsules produced annually. However, customers lacked awarenessthat:– The capsule compression process reduces taste– 80% of these capsules end up in landfills– One person can consume up to 40,000 capsules in their lifetime• Incapto drove sustainable behavior change by ensuring people continued toenjoy taste and convenience. They:– Created a machine that mixed coffee and other ingredients easily,eliminating the need for capsules/compression while improving taste– Motivated and educated consumers through a subscription service
measuring individual impact of removing pollution

Results• 2x revenue growth on a monthly basis since 2021
• Removed 4 million coffee capsules across Spain, Portugal and France• Reduced 80% CO2 emissions and removed 30% pack waste via HP digital print
Source: Incapto company website; Incapto 2022 case study; HP Graphic Arts LCA Study• Google Cloud is a cloud computing offering from Alphabet, Inc.

Insight and actions• Customers desired more cost-efficient and sustainable IT
infrastructure and computing to support meeting their own cost andcarbon emissions commitments• Google innovated to meet those needs:– Built 2x more energy-efficient owned and operated data centersversus the average– Created tools (Carbon Sense suite) to enable reliable tracking,visualization, and insights on any cloud project’s carbon emissions• Google nudged sustainable choices by surfacing information on data
center regions with lowest carbon impact– Users were 19% more likely to select lower carbon regions after
seeing indicators within platform

Results• Contributes to 47.5% CAGR in cloud revenue from 2017 to 2021
• Computing costs, energy use, and carbon emissions reduced by 65 –90% when customers switched• 100% renewable energy for all cloud regions
Source: Google

33

Copyright © 2022 by Boston Consulting Group. All rights reserved.

• Incapto is a Spanish coffee company founded in 2019 and the fastest growing
coffee brand serving customers across Southern Europe

Get the fundamentals right• Responsible marketing practices

34

Copyright © 2022 by Boston Consulting Group. All rights reserved.

• Environmental, Social, and Governance strategy

Mainstream Green is at the core of a broader set of actions marketers can
support to drive environmental sustainability
Focus of this chapter• Supporting the creationof a holistic ESG strategy• Ensuring responsible
marketing practices,
including ethical marketingand sustainable operations

Responsible marketing practices• Ensures clear, ethical communication of sustainability benefits• Promotes sustainable operating best practices• Recognizes company impact via partners and creates accountability

Focus of previous chapter

Mainstream Green• Promotes positive, collective customer behavior and leads to sustainableoutcomes• Improves achievement of enterprise sustainability goals
35

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Additional actions
marketers cantake include

Environmental, Social, and Governance (ESG) strategy• Connects organizational values to operations• Has broad-reaching, multidisciplinary impact• Puts environmental sustainability and the role for marketers in context

The journey to Mainstream
Green requires an ESG
strategy• Sustainability is one part of a broader ESG
strategy• Tools, such as Sustainable Brands’ Brand
Transformation Roadmap℠, exist to
support companies navigating frombusiness-as-usual to sustainable brand

Steps companies can take to move towards a holistic ESG strategy
Map the journey
Diagnose where the business is today, pinpointing measurable solutions
and next steps

Rally around purpose
Engage, inform, and unite different parts of your company around acommon purpose

Build company infrastructure

Communicate effectively
Use language that is accessible not only to sustainability executives but
also to the rest of your company

Grow external relationships
Strengthen stakeholder engagement and provide context-specificrecommendations for resources and partners
TO LEARN MORE ABOUT THE BRAND TRANSFORMATION ROADMAPVISIT SUSTAINABLE BRANDS

Source: Sustainable Brands

36

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Enable effective goal-setting, planning, capacity-building, and crossfunctional collaboration

Responsible corporate and supplier practices can offset
mistrust around sustainability marketing69%
of customers agree that
“Most companies are notcommitted to sustainability—theycommunicate only to improveimage or sell”1…and have trouble
naming companies
who help themaddress the issue

Meanwhile, climate
issues see increasing
attention from press

67%

2x

of customers say that “nonecome to mind” when asked
which companies are going
above and beyond
to help them addressenvironmental challenges2

more press coverage
between 2019 and 20213

1. Question text: How much do you agree or disagree with the following statements regarding sustainability? N=19,024; Countries USA, France, Germany, Italy, China, India,
Brazil, Japan 2. 67% of customers say that "none come to mind": Sustainable Brands Socio-Cultural Trend Tracking Q4 Pulse, December 2020. N=1000 3. Media coverage: BCG
Center for Growth and Innovation Analytics – analysis of ~2.9K news and media articles related to ESG efforts retail companies (published between 2019 and 2021) wereanalyzed/clustered using natural language processing.
Source: BCG sustainability customer survey, June 2022

Marketers can minimize
reputational risks andbuild greater customer
trust
by marketingsustainability
responsibly

37

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Customers don’t believe
companies are genuinely
committed
to sustainability …

A wide variety of environmental sustainability marketing guidance already exist; thissection summarizes key use cases
GlobalGuidelines for Providing ProductSustainability Information, 2017

Note: Article titles hyperlink to source material

Environmental Claims: Findings
and Conclusions of the OECD
Committee on Consumer Policy,
2011

Net Zero Marketing, 2022

UK Advertising’s Response to the
Climate Emergency, 2020

United States

United Kingdom

CMA Guidance on
Environmental Claims on
Goods and Services, 2021

Global Guidance on
Environmental Claims, 2022

The Environment:
Misleading Claims andSocial Responsibility inAdvertising, 2022

Green Guides, 2012

Greenwashing andAdvertising, 2021

Many country-specificguidelines andregional publications
are also available (e.g.,
Union des marques: Le
programme FAIRe)38

Copyright © 2022 by Boston Consulting Group. All rights reserved.

ICC Framework for Responsible
Environmental Marketing
Communications, 2021

Ethical sustainability marketing principles are thematically consistent across existingmaterials and are a useful tool to evaluate messaging
Understand local laws and regulations regarding marketing communications

Criteria

Ambitious

Ethical sustainability marketing principle•

Consider full lifecycle of product or service, or specify whichpart it applies to if not to full lifecycle•

Be forthcoming with information, especially with limitations•

Be truthful and accurate, clear and specific•Be useful to the customer

Checklist1 to evaluate sustainability message•

Does the claim involve a goal that can be met in a reasonable time frame?

•

Is the element of sustainability that the claim addresses clear? E.g., air, water, waste,carbon, etc.

•

Are the sustainability benefits expressed through words or implied with visuals, e.g.,greenery, leaves, mountains, etc.? Could customers be misled?

•

Is the claim relevant to the intended audience?

•

Does the claim relate to the company’s purpose and identity?

•

Does the claim have a net positive impact or contribute to other issues? E.g., recyclable
packaging might require high water use for net negative impact•

If the claim is relative, is the comparison clearly communicated?
E.g., current product versus earlier version, component or package•

Does the claim indicate if it may apply to the product, packaging, or both?

•Do the claims meet regulatory or legal requirements?

•

Are the proposed claims verifiable?

•

Does the customer need to access special/external facilities , e.g., recycling infrastructure,home composting, etc., for theclaim to be achieved?

Authentic?
Authentic
and meaningful?
•Be material: talk about major improvements, in areas that matter•

Make fair and meaningful comparisons

to Core?
core?
FitFitto•

Have robust evidence and substantiation

Feasible?

Feasible?

See following pages for more details and nuances that may apply to your company’s specific situation
1. Checklist based on ICC Framework for Responsible Environmental Marketing Communications, 2021

39

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Ambitious
target?
Target?

Backup | Reference list of existing materials and related publications (I/II)
Ethical sustainability marketing
Publication title

Author organization

Applicable users

Publish date

Short content recap

Global Guidance on Environmental Claims

World Federationof Advertisers (WFA)

Global marketers2022

Six key principles for trustworthy environmental claims andexamples of global best practices

ICC Framework for Responsible
Environmental Marketing Communications

Global Chamberof Commerce (ICC)

Global marketers
and agencies

2021

Summary of the ICC Code principles and commentary/
guidance for applying them to environmental advertising

Guidelines for Providing ProductSustainability Information

United Nations
Environment Programme

Global marketers
and agencies

2017

Claims guidance for product-related sustainability information, throughminimum requirements and increased ambition over time

The environment: misleading claims
and social responsibility in advertising

Committee of Advertising
Practice (CAP)

UK agencies

2022

Guide on how to interpret the UK CAP and BCAP rules
concerning environment-related advertising issues

Programme FAIRe

Union des marques

France marketers

2018

Commitment program for companies, with 15 mandatory responsible
communications principles

Green Marketing Guide for Western
Pennsylvania Small Businesses

Duquesne University

US marketers(esp. small business)

2014

Overview of green marketing, laying out opportunities,
watch outs, and questions marketers should consider

Sustainable marketing practices
Guideline title

Author organization

Applicable users

Publish date

Short content recap

Ad Net ZeroUK Advertising Association

UK marketers
and agencies(Global 2023+)

2020

Guide to reduce the carbon impact of developing,producing, and running advertising

AdGreen Resources Guide

AdGreen

UK agencies

2022

Help those in the advertising industry eliminate the negativeenvironmental impacts of production, by department
40

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Select publication according to relevant (trade) organizations and/or geography

Backup | Reference list of existing materials and related publications (II/II)
Laws and regulations

Select publication according to relevant geography
Guideline title

Author organization

Applicable users

Publish date

Short content recap

Guidance on the Unfair Commercial
Practices Directive (Section 4.1)

European Union

EU marketers
and agencies

2020

CMA guidance on environmental claims
on goods and services

Competition and Markets
Authority (CMA)

UK marketers

2021

Green Guides (shorter summary)

US Federal Trade
Commission

US marketers
and agencies

2012

Environmental Claims and Greenwashing

Competition
Bureau Canada

Canada marketers
and agencies

2021

Green Marketing and the AustralianConsumer Law

Australian Competitionand customer Commission

Australia marketers
and agencies

2011

Vejledning om brug af miljømæssige og
etiske pa stande m.v.

Danish customers
Ombudsman

Denmark marketers
and agencies

2014

Author organization

Geographic scope

Publish date

Short content recap

Organization for Economic
Environmental Claims: Findings and Conclusions of the
Co-operation andOECD Committee on Consumer Policy
Development (OECD)

Global marketers
and agencies

2010

How information on environmental characteristics of products can be
improved to help customers make more informed choices

ISEAL Codes of Good Practice Guide

Global developersof sustainability standards

2022Best practices for creating and maintaining effective and credible
sustainability systems

Other publications

Select according to specific content use case
Guideline title

ISEAL

41

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Guidance for businesses to comply with the respective country's customer
protection law regulations as they relate to environmental claims

The climate crisis is the biggest
challenge our world faces and requires
collective action from us all. Ad Net
Zero is the advertising industry’s drive
to reduce the carbon impact ofdeveloping, producing, and running
advertising to real net zero. Launchedin 2020 in the UK, it is now a global
collaboration and will drive change in
the advertising ecosystem, startingwith the world’s largest advertisingmarkets. Ad Net Zero USA will launch
in 2023.
To begin greening your advertising
operations and partnerships,
download and read the full Ad Net
Zero report and get in touch via
adnetzero.com

01

Advertising businesses’ own operations

02

Advertising production

03

Media distribution

04

Awards and events

05

Using advertising’s positive influence

All companies commit to curtail their own carbon emissions, principally by reducing travel, nonsustainable energy use, and waste, setting targets and measuring progress against these to be on apathway to net zero emissions
Advertisers, agencies, and production companies commit to adopt tools and training to measure,manage, and reduce the emissions from advertising production—the report recommends AdGreenand similar programs
Media agencies use carbon measurement programs like the IPA Media Climate Charterin the UK, working with their clients to measure, manage, and reduce the emissions from media
distribution
Organizers build sustainability criteria into the entry criteria for awards, and plan events
to minimize their carbon footprints, especially from travel

Advertisers and their agencies harness the power of their advertising to accelerate more sustainable
customer choices and behaviors, thereby gaining competitive advantage and driving moresustainable consumption

Source: Ad Net Zero42

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Ad Net Zero

Produced by the UK Advertising Association, which represents all the advertising industry’s stakeholders, the Ad
Net Zero report lays out recommendations for cross-industry actions on the five fronts below. These actions will
be extended and refined to be used in other advertising markets in 2023, starting with the US, working in
partnership with the ANA, along with 4A’s, IAB and leading global businesses including Dentsu, Havas, Google,
IPG, Meta, Omnicom, Publicis, Sky, Unilever and WPP.

43
Copyright © 2022 by Boston Consulting Group. All rights reserved.

Key takeaways and next steps

Key takeaways
Mainstream Green can make sustainability agrowth driver
CMOs have the knowledge and the platform to drivechange, and can collaborate with a variety ofleaders to drive mainstream sustainability growthfrom the center of the organization

Next steps
Determine your action plan

• Commit to making a change• Establish governance and oversight for deploying
Mainstream Green

Deeply understand your customer• Link customer needs to your value proposition• Classify and remove barriers to sustainable choice

An intimate understanding of customers’ needs isthe foundation for a differentiated purpose andvalue proposition

Marketers bring a critical lens to removing
real and perceived barriersMarketing puts the customer at the centerof the innovation process to tackle real barriers
and brings the tools and techniques required todissolve perceived barriers

Embrace responsible marketing• Understand and abide by ethical marketing communication
principles• Mitigate marketing’s operational environmental impact• Hold partners accountable to the same standards

Measure your impact and track progress• Align on enterprise sustainability KPIs that are credible,
measurable, and aligned to company goals• Establish capabilities to track, benchmark, report, andoptimize against your data
• Share learnings and best practices with fellow CMOs
44

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Sustainability strategies that move theneedle focus on customer needs

Next steps: Illustrative action roadmap<6 months

q Understand role of marketing insustainability strategy

q Obtain CEO and leadership buy-in
for marketing’s rolein sustainability strategy

q Understand company’s current
sustainability stateq Establish governance forums forongoing collaboration

Understand drivers ofchoiceCreate a sustainable
offering

Promote sustainablechoices
Follow responsible
marketing practices

q Educate team on importance ofcustomer-centric viewof sustainability

6+ months
q Adjust company processes to include marketing in sustainability
q Align on customer-centric sustainability measures of success, required datasystems, and processes to track and reportq Track, report, and optimize against sustainability KPIs
q Embed sustainability in core decision-making and business processes

q Recognize importanceof understanding needs
and barriers as they relate
to sustainability

q Design and analyze customer
insights to uncoverneeds/barriers

q Understand the value marketing
brings to the sustainability
innovation process

q Assess sustainability’s role withincurrent innovation processes

q Embed insights in innovation to accelerate sustainable innovation, adjust
processes to include marketingq Understand required capabilities

q Establish build/buy/partner model to meet capability requirements

q Understand thatdifferent segments requiredifferent sustainability marketingtactics

q Understand role of sustainability
within current customer
engagement approachq Create customer engagement strategy that includes sustainability, tailoringtactics to segments

q Read Ad Net Zero report

q Evaluate advertising practices andpartners with sustainability lens

q Adopt new tools and practices

q Share learnings with crossfunctional leadership teamq Synthesize insights and implications in customer-centric sustainability
strategyq Prioritize opportunities, considering sustainability and growth objectives,
brand strategy, and product/service portfolio

q Work with partners to change their practices

45
Reach out for questions or support in following
the action steps for Mainstream Green

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Create a seat at thetable for marketing

ImmediateWe are building towards a future where
marketers galvanize and activate largescale collective action toward
Mainstream Green
Together, we can make this win-winwin for customers, companies, andthe environment46

47
Copyright © 2022 by Boston Consulting Group. All rights reserved.

Additional resources

TopicUnderstand drivers of choice

Resource title

Use case

Demystifying Global Consumer Choice

Top customer needs across categories and geographies and what that means for marketers

Gen Z Is Torn Between 'Conscience'and 'Commerce' When They Shop

Gen Z value-action gap and six takeaways for engagement

How Retailers Can Capture $5 Trillionof Shifting Demand

Understand needs and contexts driving customer choices

Pull Factor Project Report

US customer environmental and social expectations of companies and takeaways

The Consumer Sustainability Journey

Australian customer awareness and willingness-to-pay and key implications

Winning the Consumer with Sustainability

UK customer awareness and willingness-to-pay and key implications

Four Steps to Sustainable Business
Model Innovation

Framework of an iterative innovation cycle to achieve competitive advantage

Are You Ready for Green Growth?

Sustainability challenges for companies and implications for innovation solutions

The Secrets of Sustainability Front-Runners

Determine positioning in the sustainable innovation business landscape

When a Business Ecosystem Is the Answer
to Sustainability Challenges

Business ecosystem’s ability to address barriers and how to apply

Create a sustainable offering

48

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Appendix | Additional resources for guidance (I/III)

TopicPromote sustainable choices

Industry spotlight

Resource title

Use case

Nudging Consumers Toward Sustainability

Leverage nudges to guide customer behavior to complement sustainability goals

Want to Do Good in Advertising? The UN
has a Plan for That

Ideas from campaigns that supported UN Sustainable Development Goals

When It Comes to Creating Shareholder
Value From Climate & Sustainability Commitments, ThereAre No Shortcuts

Five components of effective communication to generate valuation credit

Closing the Food Waste Gap

Key drivers of food loss and waste and potential solutions

The Untapped Climate
Opportunity in Alternative Proteins

Gain insight on customer sentiment and market opportunity for alternative proteins

How Luxury Companies Can Advanceas Responsible Pioneers

Understand the luxury industry’s value proposition for sustainability

BCG Climate Change and Sustainability Insights

Our latest thinking on climate change and sustainability

CMO Sustainability Accelerator (CSA) Hub

Source sustainability news, insights, tools, and case studies from the community
and CSA partnership

Business and the circular economy

Learn strategies, case studies, and practical tips for a circular economy

WARC Sustainability Hub

Access curated insights and proprietary tools for marketers to drive sustainability

Resource hubs

49

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Appendix | Additional resources for guidance (II/III)

TopicESG strategy and enablement

Resource title

Use case

AI Is Essential for Solving the Climate Crisis

Applications of AI to address climate change topics

BCG-WEF Project: The Net-Zero Challenge

Guidance on net-zero strategy, operations, and organization

How to Build a High-Impact Sustainability AllianceThree models for collaboration and how to build to achieve ambitious sustainability goals

Optimize for Both Social and Business Value

Principles to pursue in transformation for both corporate and social value

Six Pitfalls to Avoid When Mobilizing for Sustainability

Six factors preventing effective corporate organization and how to avoid

Six Steps to a Sustainability Transformation

Six actions to drive sustainability transformations in strategy and operations

The Challenges of a Sustainability Transformation

Three main challenges preventing effective transformations and how to address

The Climate Is Changing, Are You?

Brand and agency attitudes on sustainability and implications for actions to take

The Strategic Race to Sustainability

Create strategic and competitive advantage through sustainability

What You Need to Know to Become a Sustainability
Champion Within Your Agency

Eight tips to increase sustainability considerations in advertising and marketing collateral

50

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Appendix | Additional resources for guidance (III/III)About the Authors
Lauren Taylor

Sarah Lichtblau

Lauren Taylor is a Managing Director & Partner inthe Dallas office of the Boston Consulting Group.
She is the firm’s global leader for Customer-Centric
Sustainability.

Sarah Lichtblau is a Principal in the San Francisco
office of the Boston Consulting Group. She is anactive member of both the Climate & Sustainability
and Marketing, Sales, & Pricing practice areas.

taylor.lauren@bcg.com

lichtblau.sarah@bcg.com

Lauren and Sarah would like to thank the many CMOs and CSOs who helped brainstorm and contribute to this; a large BCG
team including Alex Barocas, Partner & Associate Director, Senior Advisors, Brad Jakeman and Lynne Biggar, Paul Pierson and
the BCG Brighthouse team, Aparna Bharadwaj, Kanika Sanghi, Lea Turquier, Indira Zaveri and our global Center for Customer
Insights team, and consultants, Wendy Kadon, Carly Presho-Dunne, Emily Zhang, Gabrielle Salvado, and Ayub Daud; and great
partnership from the ANA led by Liz Kneebone, Adweek led by Anton Timms, and Sustainable Brands led by Samuel Monnie.

If your company would like to learn more about the research in this report or how to follow the action steps for Mainstream
Green, please reach out to MainstreamGreen@bcg.com.

51

Copyright © 2022 by Boston Consulting Group. All rights reserved.

Acknowledgments

©The
The
BostonGroup, byInc.
2022.Consulting
All Rights
Reserved.
servicesandConsulting
materials provided
BostonGroup(BCG) are subject to BCG's Standard Terms

materials are based upon standard valuation methodologies, are not definitive forecasts, and are not guaranteed by BCG. BCG has
used public and/or confidential data and assumptions provided to BCG by the Client. BCG has not independently verified the data
Apartfrom any use
under
the copyrightAct 1975,
nooperating
part mayassumptions
be reproduced
in anyform.
and assumptions
usedasinpermitted
these analyses.
Changesin the underlying
data orwill clearly
impactthe analyses
and conclusions.

52

Copyright © 2022 by Boston Consulting Group. All rights reserved.

(a copy of which is available upon request) or such other agreement as may have been previously executed by BCG. BCG does notThisdocument
has beenorprepared
good
faith
on the basisof information
available
the date theseof publication
providelegal, accounting,tax advice.inThe
Clientis responsible
for obtaining
independent
adviceatconcerning
matters. This
advice may
the guidance
given by BCG.
Further,
BCG hasmadeno various
undertaking
without
anyaffect
independent
verification.
BCG
has useddata
fromsources and assumptions provided to BCG
to updatematerials
hereof, notwithstanding
thatdata
suchandinformation
may become
outdatedfromotherthesesources.
BCGafterhasthenotdateindependently
verified theassumptions
from thesources used in theseor inaccurate.
analyses. Changes in the underlying data or operating assumptions will clearly impact the analyses andconclusions.
BCG does not guarantee or make any representation or warranty as to the accuracy, reliability,
The materials contained in this presentation are designed for the sole use by the board of directors or senior management of thecompleteness,ofpurposes
the information
inthe
thispresentation.
document The
nor materials
its usefulness
inbe
achieving
purpose.
Client and solelyor
forcurrency
the limited
described inshall notcopied orany
given
to any person or
Readers
arethanresponsible
assessingrelevance
accuracy
ofofthecontentof this document.
is focus forentity other
the Clientfor(“Third
Party”) the
without
the priorand
writtenconsent
BCG.
These materials
serve only asItthe
discussion; theyfor
areanyincomplete
accompanying
may
notwillbe relied
on liable
as a stand-alone
document.
unreasonable
party towithout
rely onthethis
documentoral
for commentary
any purposeandandBCG
not befor any loss,
Further, Third
may not,
and it is or
unreasonable
any Third
Party
to, relyusing
on thesematerialson
forinformation
any purpose inwhatsoever.
Todamage,cost,Parties
or expense
incurredarising by forreasonof anypersonor relying
thisthe fullest extent
permittedlaw (andexcept tobytheextentagreedin a signed
writing byagreed
BCG), BCG
havewriting
no liability
document.
To thefullest byextentpermitted
law(andotherwise
except to
the extent
otherwisein ashallsignedwhatsoever to any Third Party, and any Third Party hereby waives any rights and claims it may have at any time against BCG withbyregard
BCG),toBCG
shall have no liability whatsoever to any party, and any person using this document hereby waives
the services, this presentation, or other materials, including the accuracy or completeness thereof. Receipt and review ofanyandshallclaimsit may haveat anywithtime
BCG withregardto the document. Receipt and review of thisthisrights
document
be deemedagreement
andagainst
consideration
for theforegoing.
document shall be deemed agreement with and consideration for the foregoing. Reference herein to any specific
BCG does notproduct,
provide fairness
opinionsor valuationsof market
these materials
not bedoes
reliednot
on orcommercial
process,or service
by trade
name, transactions,trademark, andmanufacturer,
orshould
otherwise,
construed asconstitutesuch. Further,
the financial
evaluations, projectedmarket and financial
information,and conclusions contained in thesenecessarily
or implyits endorsement,
recommendation,or favoring
by BCG.

bcg.com