New Study from Dentsu and Kantar Shines a Light on Sustainability in APAC

Dentsu and Kantar today launch Marketing a Better Future, a flagship study exploring the role APAC marketers play in achieving corporate sustainability  ambitions and SDGs. 

With the exponential growth of Asian economies, spending power is moving East with the region shaping global consumption trends. This gives Asian consumers and  companies a new and unique responsibility, especially as the region is expected to bear  the brunt of climate-related catastrophes. Consumer behaviour urgently needs to shift to more sustainable habits and lifestyles. According to Kantar’s latest Global Issues Barometer, climate issues are a key concern with nearly 60% of consumers globally  saying they experience eco-anxiety which is driving increased consciousness and desire for action. In tandem, system-level changes are needed to reach global sustainability  targets and ensure the planet’s future.

There is no doubt that businesses, brands and their agency partners are at a nexus of need and opportunity. As the bridge between brands and consumers, marketers have a unique opportunity, and therefore the  responsibility, to be generational agents of change influencing consumer behaviour, as well as driving customer-informed innovation.  

Marketers are failing, however, to grasp the opportunity. Dentsu and Kantar’s inaugural study of over 70 brand marketers in 12 markets across Asia-Pacific found that only one  in three (34%) marketing and insights teams are ‘executing against their sustainability plans and measuring progress’.This compares unfavourably to 46% in supply chain, and 51% in corporate strategy. The new study identified two significant intention-action gaps, the consumer intention-action gap and the organisational intention-action gap, where marketers’ challenges are rooted.

In order to achieve deep, needle-moving advancement in sustainability, the study found marketing functions need a philosophical revamp: to be given a mandate to drive innovation beyond short-term sales KPIs, to create growth that is good for society and the planet as well as business. Corporate sustainability transformation and sustainable  consumption need to become the organising principle around which marketing functions. 

The study predicts that by making this radical change, brands will be able to drive the behaviour and lifestyle shifts required to achieve the 40% - 70% reductions in  greenhouse gas emissions that the sixth IPCC assessment report estimates as achievable. 

Dominic Powers, Chief Growth Officer, dentsu Asia Pacific (pictured), said, “Meaningful progress in sustainability requires an ecosystem level effort where businesses, consumers and  civic society, policy makers, regulators and capital providers work in harmony. Marketers  must not only be empowered by businesses to drive innovation that can fuel deep  change, but they must also revamp the entire philosophy behind the way the function is  designed, which is predicated on selling more. At dentsu we design the 'what's next’ for  brands. It is clear that sustainable consumption has to be the organising principle of  marketing teams, who must now instead focus on inspiring people everywhere to a new  way of responsible living. To do this, brands and marketers must reframe their  constituents to include ecosystem partners that co-own the sector’s value chain and its  carbon footprint. By positioning themselves as the change agent between the larger  ecosystem, customers and their company, marketing teams will be uniquely positioned  to drive relevant, resonant, step-change innovation that will help ensure a sustainable  future for us all.”

Trezelene Chan, Head, Sustainability Practice, Kantar APAC added, “We already know that the consumer intention-action gap is a problem for marketers, with 56% identifying  it as a major challenge. Only 17% of Asian consumers actively change their behaviour to  be more sustainable, despite 98% of Asians saying they will. Our study reveals, however, that the organizational intention-action gap is an equally important challenge to be addressed. Although 73% of marketers believe sustainability is important for  business continuity and value growth, the study uncovered tactical and fundamental  barriers that hinder marketers from taking on meaningful sustainable leadership. These  include focus on short-term sales growth targets above all other KPIs, lack of clarity  within the marketing function around metrics of success in relation to sustainability  goals, and lack of adequate resources or capability building for sustainability within the marketing function. Innovation, collaboration and ownership across the different business functions against a clear set of sustainability goals will be required. Sustainability initiatives by the brand need to address consumers’ and the planet’s needs holistically  and simultaneously. This means a whole new mindset for marketers and their corporate  leaders.”