“Sex sells” is a fundamental philosophy when it comes to marketing and advertising. However, in 2021, as the pressures of climate change are becoming increasingly prevalent, this philosophy has changed.
We’re now Eco-Consumers (someone needs to call up Kermit the Frog and inform him that now it IS easy being green).
Our podcast guest this week, Nathan Fradley, Director of Tribeca Financial and Ethos ESG, discusses the trend of greenwashing.
Nathan asserts that labelling something as “eco”, “green”, or “ethical” is a great way to sell a product.
“It’s a consumer trend. Compostable packaging, carbon offsetting … it’s also an advertising opportunity.”
“This is capitalism,” he remarked. “How many times have you purchased a bamboo toothbrush, or biodegradable garbage bags, or anything with the word “green” on them over a less eco-friendly product?”
This eco-consumeristic trend isn’t just limited to the supermarket, however, it is a small part of a broader industry shift towards environmental considerations.
The term ESG has been cropping up more and more, but what does it all mean?
It simply means Environmental, Social, and Governance considerations.
Nathan explains that a company will ask themselves, “What are the considerations I need to take in this business to look at my broader environmental impacts? To make sure there is no controversy [and] no risk to shareholder capital.”
What social responsibilities does a business have? What is their product and how does that impact the community?
Governance is an internal look at the company; what does our board make up look like? How do we operate as a company?
Now more than ever before, Nathan believes, it is important for companies to build environmental, social and governance considerations into their process and framework.
Find out more about ESG in Episode 21 of It’s Never About Money
Connect with Nathan on LinkedIn: https://www.linkedin.com/in/nathan-fradley-fchfp-88a8502a/
Website: www.ethosesg.com & https://www.tribecafinancial.com.au/