In an era of greenwashing, and green-hushing, third-party certified giving can offer companies a competitive advantage that translates to enhanced brand loyalty and higher revenue.
Under the second Trump administration and amid unexpected challenges that are hindering ambitious packaging and emission reduction goals, many food and beverage brands are quietly scaling back on sustainability commitments.
But in doing so, they could be missing out on a powerful marketing opportunity.
According to global giving nonprofit 1% for the Planet, brands that commit 1% of annual sales to vetted environmental partners report measurable gains in brand perception and revenue growth.
Sustainable Sourcing: From upcycling to carbon neutral to sustainable packaging
This story is part of a special edition focused on environmental challenges and opportunities in the packaged food and beverage industry. Check out the full selection here . Or to receive special editions in your email inbox, register for the newsletter by clicking yellow 'register' button in the top right corner of the homepage.
Will sustainability return as a priority?
In recent years, many high-profile corporations have pushed back the deadlines for ambitious environmental goals or quietly removed from their webpages frameworks for reducing their negative impact on the planet.
But Kate Williams, the CEO of 1% for the Planet, is optimistic that companies will find away to recommit and reinvest in the near future, despite backlash fears that contributed to the current environment of green-hushing.
“The needs for commitments to investing in supply chains, investing in generally a healthier planet, are higher than ever. At the same time, there are countervailing forces making it feel harder or scarier or more expensive or more risky for companies or individuals to either make those investments or talk about and build momentum around making those investments,” she said.
However, she added, “we’re starting to see some increase in companies who are saying, ‘You know what, this is the world we live in, we need to figure out how to act anywhere.”
Could certification encourage sustainability initiatives?
With sustainability messaging under intensifying scrutiny, credibility becomes even more important – which is where Williams says third-party certification can help.
“Certifications enable the brand to be telling a story and essentially have someone else saying, ‘Yeah, that’s true,’” she said.
She explained certification protects against the risk of greenwashing by verifying company claims, but it also reduces the risk of green-hushing – or not talking about environmental initiatives for fear of backlash – by giving companies a framework to safely talk about their goals.
For example, “the way the 1% for the Planet model works at a high, simple level is that we have a system where businesses commit to giving 1% of their annual net revenues to environmental partners” with which the non-profit helps them partner, she said.
“We manage both sides of that marketplace, as it were. We vet the non-profits, we engage the members and then we advise the members and help them figure out who they want to give to. And then we certify that giving,” she added.
How feasible is giving in the current economic environment?
Even though 1% for the Planet is well respected and recognized, some critics argue that in a tighter economic climate, even 1% of sales is a tough commitment.
Williams counters that the program more than pays for itself.
“In our most recent member survey, 86% of members said that membership or the affiliation with the brand improved the brand perception,” and 70% said they saw revenue growth as a result of their participation, she said.
The giving can go to areas a company otherwise would have invested in for long term business stability – such as supply chain development.
“Investing in the types of thinks that 1% for the Planet positions you to invest in is a no brainer,” Williams added.
A season for growth is on the horizon
While it has taken 1% for the Planet about 25 years to certify the donation and impact of $1 billion, Williams expects exponential growth in the near future.
“In five to six years, what we hope is that we will have accelerated and already have gotten to our second billion dollars” of certified giving, she said.
Ultimately, whether certified environmental giving becomes standard practice or remains a point of differentiation may depend on how brands balance risk, reputation and growth. But, if 86% of members of 1% For The Planet are seeing improved brand perception and 70% report year-over-year growth the question for brands may no longer be whether they can afford to commit 1% of sales… but whether they can afford not to.
