Brands On ESG Report
Brands On ESG Report
Brands On ESG Report
on ESG
A generations point of view
What is important to
know and understand
about generational differences in ESG attitudes and behaviors
for crafting effective strategies and fostering positive change?
What other elements contribute to the success of these
strategies? With the rise of socially and environmentally
conscious consumers, brands need to take into account
distinctive attitudes and behaviors across generations and
tailor their ESG strategies accordingly.
SCOPE
Final takeaways 50
Generations
in a Nutshell
General knowledge of generations
MW Social Media Research
Across all age groups
Human-Oriented Values Stand Out
*The most used social platforms: *The most used social platforms: *The most used social platforms:
ESG x Gen Z:
Gen Zs tend to be distrustful of various activations,
making it challenging to earn their trust
Overall, they tend to be… As for brand initiatives, they... When they do not like something they tend to...
Generation Z speaks a lot about ESG topics on Gen Zs want to realize a shared vision with brands Marketing tactics that prioritize flashy
Social Media and also motivates brands to be more together: A brand community it’s about what advertisements and misleading messaging
involved in ESG topics. Simultaneously, they clearly consumers & a brand can achieve and do together. are met with skepticism and outright rejection.
understand that their own actions will directly Gen Zs expect brands to put contribution at the Brands that fail to align with Gen Z’s values,
impact their future, that is why they prefer to start heart of their strategy and drive changes together. brands that do Greenwashing, and fail to
with themselves and take daily actions. demonstrate genuine commitment to social and
environmental causes risk alienating Gen Z.
ESG x MILLENNIALS:
Millennials gladly engage in ESG activations,
while remaining cautious about potential greenwashing
TRENDS SETTER AS GEN Z FOR DETAILS (GREENWASHING, ETC) REACT THROUGH SOFT ACTIONS
Gen Z and Millennials are highly engaged on social Millennials are happy to see more and more brands Millennials are less radical in their actions: they are
media, using their platforms to express actions, creating ESG initiatives, and actively engage with more likely to use such phrases as « avoid » instead
movements, and viewpoints, thus influencing trends them. However, they tend to check if the promised of « reject, boycott». They contribute educational
through their online presence. actions are really followed. As Gen Z, they show content to raise ESG awareness among consumers
aversion to mere “marketing” slogans without and inspire others to act.
Latest Sustainable trends on TikTok 2023: Vintage Wedding dresses. #vintagebride - tangible follow-through.
24.9M views on TikTok; #vintageengagementring - 81.3M views on TikTok
ESG x GEN X:
Gen X see brands’ initiative as a great opportunity,
meanwhile, they do not post a lot about their actions
Overall, they tend to have… As for brand initiatives, they... When they do not like something they tend to...
industries:
Water Scarcity & Conservation Labor Standards
Executive Compensation
Climate Change Workplace Diversity & Inclusion
Business Ethics
Greenhouse Gas Community Engagement
& Development Corruption
• Beauty
Pollution & Waste Management
Philantopy
Air & Water Pollution
• CPG
Human Rights
Product Life Cycle
Forced & Child Labor
Land Use & Biodiversity
Product Quality & Safety
Sourcing of Raw Materials
Product Labeling &
Ecosystem & Biodiversity Transparency
67% 30%
Animal Rights (27%), Sourcing of raw
materials (12%), Pollution & waste
management (10%) are the most visible
sub-pillars
Enviromental Social
#2 Social
Philantopy (16%), Workplace diversity &
Inclusion (9%), Product quality & Safety
(3%) boosted the Social pillar
#3 Governance
Corruption (3%) stood out as the most
discussible sub-pillar
Governance 3%
FASHION
stood out
in all ESG
pillars
* The CPG category stands out with
higher visibility compared to the
BEAUTY category. This is primarily
due to the significant contribution of
Vegan products, which play a key role
in driving volume for the Environmental
pillar. Additionally, the CPG’s & Fashion’s
Social pillar is influenced by charitable
initiatives and food donations
Through the
Engagement Actions
KPI, the BEAUTY
industry demonstrates
greater visibility
across all three pillars:
Environmental, Social,
and Governance
(ESG), thanks to the
higher involvement of
consumers in the topic
* The environmental pillar has 67% of SOV, while the Social has 30% of volume
How brands can be closer to
consumers’ mindset?
DEEP DIVING
INTO SOCIAL
PILLAR
Distinctive Social sub-pillars for each category:
What drives the Social pillar’s volume for each of the categories
SOV of Social pillar from the total number of the industry volume
Along with
Beauty, Fashion
bridges the
gap between
generations in
Social topics
#1. ACTIVISM AND ACTIVISM & CO-CREATION
POSSIBILITY FOR
CO-CREATION:
Fashion & Beauty created a
safe space for consumers
to be part of a brand, to
create it shaping what
EKOW BARNES ELAY N.M. SOPHIA LI
MODEL, WRITER, CREATOR ARTIST, PHOTOGRAPHER, CLIMATE OPTIMIST
CREATOR STORYTELLER, SPEAKER,
IDENTITY:
Fenty Beauty was the top brand associated
identity
Fast-Fashion problems
with production 3.5M views on TikTok
#RANAPLAZA
conditions, etc
that represent diverse values, it 94% criticise Levi’s for not hiring an actual
cast of diverse models
“Grateful to spend some time with our “A great big THANKS goes out to our
#friends at Danone - one #planet one new friends from “Nestle Nido’s Ramadan Kindness “@Danone recommended price 2.5€
#health - a really cool #bcorp bringing @danonenorthamerica who came Calendar is doing something @auchan price on the shelf in Grasse
#health and #food to as many people as to volunteer with our after-school truly amazing by encouraging 3.2€ to fight against the expensive life
possible! Fun Club members today! #bgcnw parents to teach their children blocked price....”
“@KitKat celebrates Ramadan by about kindness and empathy every
#greatfutures #jointheclub”
launching a limited-edition bar that day..#NidoSpreadsKindness” For example, Danone France
Behind these doors are some great
can be relished as part of Iftar.” launched products with a fixed price
#partnership plans with Green Bronx
Machine to bring #healthy #organic to support consumers during the
food to underserved communities and Inflation time
public schools!”
The example of two different campaigns 61% of Bud Light’s conversation (Jan23-
Jun23)* were about the collaboration
of Bud Light with Dylan Mulvaney
22%
Nike’s collaboration with Dylan Mulvaney was
of Nike’s conversation (Jan23-Jun23)* were about considered as a slap in the face to all women.
the collaboration of Nike with Dylan Mulvaney Consumers wondered why Nike made Dylan
Mulvaney one of Nike’s women ambassadors, and
not one of the biological woman athletes and to give
them the same sponsored opportunity.
SOV of Environmental pillar from the total number of the industry volume
THE MAIN
ENVIRONMENTAL
CHALLENGES FOR
INDUSTRIES
POLLUTION & WASTE IN FASHION:
Fast fashion is the primary driver of the pollution and waste topic
as consumers are becoming more conscious of its harmful effects.
H&M is often blamed for different types of Users share the results of fast fashion, and try Net users share educational content explaining
greenwashing such as using recycled polyester to motivate other consumers to abandon these how fast fashion brands manipulate consumers,
(that can’t be recycled again), motivating brands and introduce other options for how consumers
consumers to come and recycle unused clothing can find affordable clothes meanwhile taking
whilst incentivising them to shop even more new care of the environment
clothing with gift vouchers in the process
ANIMAL RIGHTS IN CPG & BEAUTY:
Animal Rights is a prominent subject in the Beauty and CPG industries driven by eco-conscious consumers
across generations. #VEGAN sparks discussions in both sectors, with a notable difference: in beauty, it’s linked
to animal rights, while in CPG, it represents a lifestyle choice. In sustainable discussions, fast fashion was
mentioned three times more often than high fashion
BEAUTY CPG
#Beauty #CleanBeauty #Cosmetics #Breakfast #Coffee #CoffeeShop
#CrueltyFree #HairCare #Love #Makeup #GlutenFree #Govegan #Local #DairyFree
#Makeup #CrueltyFreeBeauty #Skincare #PlantBased #ShopLocal #VeganCake #Lunch
#SkincareRoutine #ShopMyCloset #SupportSmallBusiness #Vegan #SmallBusiness
#Vegan #VeganBeauty #VeganSkinCare #VeganFood #DairyFree #Vegetarian
VEGAN AND CRUELTY-FREE IN BEAUTY:
Even if to deep dive into Beauty sustainability sub-pillars,
vegan and cruelty-free beauty stood out as
the most discussed topic
Unfortunately @Kahlua is
#Bar #Beer #Cocktail #Cocktails no longer vegan (they use
#CraftBeer #Delicious #Drinks bone char in the sugar), so
#Foodie #FoodPorn #GlutenFree
I made some from scratch
using the recipe by @
#Food #Instafood #Organic
VeganInTheFreezer and it
#PlantBased #Restaurant #Vegan was super good! I might even
#VeganFood #Vegetarian #Wine like it a bit better than the
OG
The #Vegan trend in the alcohol industry is linked Vegans who adopt a plant-based diet want Brands are aware of consumer needs and trends,
to a global lifestyle focused on conscious living, dairy-free, vegan-friendly Kahlúa options. Bailey’s often emphasizing #vegan and #glutenfree
health, plant-based choices, gluten-free options, “Almande” version caters to this demand, leading labels, even for products that are inherently
craft beverages, and local production, among other some vegan consumers to choose it over Kahlúa, vegan-friendly. New brands, especially in the
aspects or sometimes consumers create plant-based rapidly emerging RTD (Ready-to-Drink) category
version of these two bavarages at home. use effectively such a marketing strategy
Greenwashing Fashion
is a common 1. Greenwashing fabrics: e.g; made
with recycled polyester
generations
3. Using HIGG Index*
4. Lack of transparency
5. Fabrics
7. Greenwashing through
philanthropy
Beauty CPG
1. Misleading information & vague term
1. Ingredients & Composition 2. Ingredients & Composition
2. Vague terms & Natural claims: ‘Clean’ 3. False claims of recyclability
packaging, ‘Green line’ products, etc
4. Green imagery and branding without
3. Plastic packaging delivery & Plastic ‘refillable’ actions behind
bottles
5. Lack of transparency
4. Cruelty-free claims
5. Lack of transparency
*an indicator-based environmental self-assessment tool for apparel and footwear products
Young generations’ unwavering commitment to their values makes
them highly picky not only for brands but also for their partners:
ecological awareness is a core value
Many individuals now consider safeguarding the planet as a fundamental principle, which has
resulted in an increasing requirement for their partners to share similar environmental values
3 STEPS TO CREATE
AN EFFECTIVE
COMMUNICATION
STRATEGY
Understanding generational
differences and other
essential factors
#1. CONSIDER EXAMPLE
DIFFERENCES
BETWEEN
GENERATIONS
• their way of behaviour
DEPENDING ON
• Funny experts’ reminders skin care routine
• The same content as consumers published
• Popular viral type of content
The environmental pillar stands out The Social pillar in the Fashion &
1. All generations share human- as a prominent aspect across all Beauty industries serves as a prime
oriented values and exhibit industries, yet it is also the pillar example of how the generation
numerous similarities where brands encounter the most gap can be narrowed through:
concerning ESG-related amount of challenges
subjects & values • Activism & co-creations;
1. Fashion: Pollution &
2. Particularly, Gen Zs and Wastemanagement is the most • Strong community identity;
Millennials demonstrate visible concern, that is mainly
many resemblances in their driven by fast fashion • Individual identity
behavior and self-presentation
on social media, whereas Gen 2. Beauty: Animal rights are what However, industries also encounter
X tends to be less inclined to trigger consumers the most in the significant social issues,
be as active on social media Beauty industry particularly in the Fashion sector,
overall, when it comes to their such as child labor, poor workers’
personal ESG actions 3. CPG: Vegan products catch on conditions, cultural appropriation,
in various categories, even such and more
as alcohol
Recomendations
Focus on focus on focus on
GENERATIONS ENVIRONMENTAL SOCIAL
Consider the main difference Awareness of consumers is growing The CPG industry can benefit
between generations: along with the expectations from from exploring the wealth of best
expectations to be involved in brands:reduce greenwashing and practices found in the Beauty &
brands’ activations increase transparency (relevant to Fashion industries.
all generations & industries)
• Give Gen Zs a place for self- Deep dive into them, considering
expression & co-creation Example: the key audience of the brand,
Consumers are challenging
brands by thoroughly
since consumers may not be
Example: examining all the fully accustomed yet to the same
Savage x Fenty by Rihanna ingredients, etc. When bold campaigns which showcase
is the brand with young it comes to Lush, online
generation-oriented DNA diverse values
users are content with the
fact that even imperfect *Since Beauty is mainly an Environmental-
information about the focus industry, and Fashion faced
• For Millennials and Gen X, be a brand is not concealed. fundamental industries challenges, the focus
responsible ESG brand, without is on the CPG industry
greenwashing. By buying such
brands they have a possibility to
make this world a better place