How Businesses Can Lead on Sustainability in Challenging Times

Shaun Rees, Chief Product & Marketing Officer

In my last blog, I reflected on the growing disconnect between people’s intent to live more sustainably and the reality many face in doing so. With the rising cost of living, fewer consumers feel they have the freedom - or the financial flexibility - to make sustainable choices in their daily lives. And so, increasingly, they’re turning to businesses to help bridge that gap.

But that rising expectation comes at a time when some businesses globally appear to be pulling back from their environmental and social commitments. It’s a tension many of us are wrestling with: How do we keep sustainability at the heart of our strategy when everything else is telling us to focus on short-term survival?

Here’s my take on what I believe we, as business leaders, can do to help move the dial.

Rethink What 'Value' Really Means

Sustainability isn’t a line in the budget, or something that someone, somewhere in the organisation does for a job – it’s a driver of long-term value. Businesses will thrive if they embrace sustainable thinking in their decision-making.

When I first joined AA Insurance, I saw a great example of this. Something our motor team has been working on is a vehicle repair technique called paintless dent removal. It’s a method of removing minor dents and dings from a vehicle's body without needing to repaint, replace the part or use body filler. It’s proving to be a cost-effective, quicker and environmentally friendlier alternative to traditional auto body repair.

The takeaway? So much can be gained from applying a sustainability lens to solving pinch points in your customer experiences. Collaborate and share ideas with your peers – because you never know, doing so could strengthen a case for investment and help unlock real value for your business and brand.

Bake Sustainability into Business Strategy

Sustainability can’t be something we add on once the core business strategy is set or renewed; it must be baked in from the start. Materiality assessments are a great way to align your sustainability focus areas and thinking with what matters most to your people, customers and communities.

As leaders, we know all too well that we can’t wait for the perfect playbook before making changes to the ‘way we’ve always done things’. Integrating sustainable thinking into strategy setting means speaking up and challenging yourself and your peers to think about how longer-term value creation connects to short-term horizons.

Some businesses are getting down to brass tacks and introducing performance incentives. Putting people on the hook for achieving sustainability outcomes – and linking that to their pay packet – is a sure-fire way to keep sustainable thinking top of mind.

Education, Education, Education

Knowledge and education are key. As marketers and business leaders, our role is to communicate clearly, simply and effectively, and to ensure our messages resonate and stick.

We’ve long seen the value of financial literacy championed by both public and private institutions. Banks, for example, understand that supporting financial education is not just part of their social licence to operate, it also makes good business sense. When customers gain better control of their budget, bank default rates decrease, and overall business outcomes improve.

The same principle applies in insurance. We have a responsibility, and opportunity, to better educate customers about the real risks they face, such as floods, earthquakes and storms, especially when making major life decisions, like buying a home. Providing this context and raising awareness can help people make smarter, more informed choices, while also strengthening trust in our industry.

Partner for Progress

You don’t have to go it alone. In fact, you shouldn’t. Some of the most exciting breakthroughs are happening where partners and suppliers are working together, whether that’s tracking emissions data across supply chains or joining forces on social impact initiatives.

The bottom line? This isn’t the time to step back. It’s the time to be bold and make sustainability authentic to your brand and category. So, here’s the challenge I’m posing to myself - and to you: What’s one action your business can take today that helps your customers live more sustainably tomorrow?

I’d love to hear your thoughts.