Closing the gap: How can brands turn economic shifts into wins for profit and planet?

Sustainability ranked lowest on leaders’ priority list, often sidelined by short-term economic constraints, with many struggling to translate environmental responsibility into a strategic advantage.

Yet sustainability has become a defining factor in how consumers choose, trust, and stay loyal to brands. Over three quarters of consumers (77%) say they lose respect for firms that put profits before the planet. When businesses abandon sustainability commitments or treat sustainability as merely a cost, it can erode consumer trust, brand reputation, and long-term competitiveness.

So what should firms do? There are three powerful shifts that can help brands turn sustainability into a competitive advantage.

Making sustainability work

First, mindset matters: businesses should take stock of how they truly engage with sustainability. The public isn’t wavering on environmental agendas. A striking 86% of consumers think brands should play a role in shaping a better future. Today’s consumers are savvy and increasingly intolerant of companies doing the bare minimum on sustainability – or perhaps worse, greenwashing.

That means organisations need to approach sustainability not as a quick fix or a compliance-driven strategy, but with a genuine open mindset. The secret lies in thinking of sustainability as a core driver of value instead of a checkbox – one that can unlock efficiencies, spark innovation, resonate with customers, and drive new revenue streams. That might sound ambitious, but it starts with looking into where sustainability can fuel smarter operations and new market opportunities.

Circular business practices demonstrate this well. They help companies maximise the lifespan of their resources and minimise waste, through systems that reuse, repair, and recycle – all while creating new value for customers.

Patagonia’s take-back and trade-in scheme is a standout example. It encourages customers to return worn gear in exchange for store credit, which Patagonia then refurbishes and resells. The company has sold over 120,000 repurposed items through its Worn Wear platform, accounting for around $5 million of its business in 2023.

Circular mindset

But the great thing about circularity is that it’s not reserved for niche brands or industry disruptors – most businesses, regardless of size or sector, can find circular practices that reduce waste, cut costs, and create new value.

Think about your day-to-day operations: could you reduce single-use items in the office, switch to refillable containers, educate your team about recycling? Even simple steps like repairing equipment instead of replacing it, or sharing unused materials with nearby businesses, can make a difference.

Circularity starts with noticing what’s wasted and asking: could this be reused, repurposed, or avoided altogether?

The second step is harnessing innovation to make initiatives like these an engine for growth. Innovation involves adopting fresh ideas, technologies, or processes that improve how goods and services are created, delivered, and experienced. At its best, innovation can deliver smarter, more affordable options for consumers, while also advancing sustainability and reducing environmental impact.

Take ORA, for example, which was looking to innovate on the iconic kitchen towel. Working with one of our innovation hubs, they re-designed the kitchen towel, creating a modern, compact stacking system with no cardboard inner tube. It allows customers to grab a sheet of paper with just one hand – an improvement that enhances accessibility, particularly for some people with disabilities – while the compact design saves space on supermarket shelves and kitchen counters.

Beyond convenience, the redesign also delivered a 20% reduction in packaging and cut the number of trucks on the road by over 30%, underscoring how innovation can drive positive outcomes for both consumer experience and the environment. Some 60% of customers surveyed were persuaded to switch brands as a result.

Future-proofing your business

Finally, it’s tempting to delay green investments when financial pressures are tight – but short-term thinking comes at a cost. While sustainability initiatives may require considerable upfront capital, their long-term payoff is often undeniable: energy-efficient infrastructure, more responsible supply chains, greater resilience in a volatile market, or stronger stakeholder trust. Businesses that invest now are often building more future-proof foundations.

IKEA is another case in point. The company has poured over €1.5 billion into renewable energy, installing more than 700,000 solar panels worldwide and investing heavily in electric vehicles for last-mile delivery. These shifts aren’t just symbolic, but have contributed to successes like a 22% reduction of the total IKEA climate footprint in absolute terms. But more importantly, the changes are part of a long-term strategy to reach net-zero by 2050, while insulating the business from rising energy costs and tightening regulations.

From ethics to endurance

The lesson? Sustainability isn’t just about ethics – it’s also about endurance. In times of economic flux, brands face heightened pressure to do more with less: to maintain relevance, manage costs, and respond to shifting consumer expectations.

But financial uncertainty can actually act as a catalyst for organisations to rethink existing processes, embrace forward-looking practices, uncover hidden inefficiencies, adapt quickly to changing market dynamics.

The research shows that businesses that commit to sustainability today are better positioned to lead tomorrow, where environmental and social impact has been increasingly measured just as closely as financial performance. In contrast, delaying sustainable investment often leads to hidden costs: regulatory friction, reputational damage, and missed market opportunities.

The choice is no longer between profit and planet. The real competitive advantage lies in integrating them. Brands that embed sustainability throughout their supply chains, shift focus to long-term value creation, and innovate with purpose aren’t just meeting the demands of increasingly conscious consumers, they’re future-proofing their business.

Closing the sustainability gap shouldn’t be perceived as just a cost, but a long-term strategic lever of growth.

This article was first published in Sustainability Online.