Marketing in the Era of Climate Extremes: Adapting to a World on the Edge
Readers!
The global climate is changing at an unprecedented rate, and the increasing frequency of extreme weather events is not only disrupting industries but also altering the marketing landscape. Climate extremism - marked by intense and unpredictable weather patterns, resource scarcity, and environmental degradation - has become a central issue for companies around the world. As governments, consumers, and industries deal with the consequences, marketers face the challenge of adapting to this new reality.
To thrive in this era of climate extremism, marketers must respond to growing consumer demands for sustainability, navigate disrupted supply chains, and create authentic brand messages that reflect genuine environmental commitments. It is also essential to explore how climate extremism is reshaping marketing around the world, as well as providing insights into how companies can adapt to meet future challenges.
Just as when we think that global supply chains are changing at an alarming rate around the world, we often fail to recognize the root cause. Climate extremism is significantly impacting supply chains, with sectors around the world facing increased costs, production delays, and resource shortages due to severe weather events. In 2021 alone, extreme weather conditions caused more than $280 billion in economic losses, with the agriculture, transportation, and construction sectors being the hardest hit, according to the World Economic Forum. This creates a direct challenge for marketers, who need to communicate disruptions in product availability and possible price increases while maintaining customer confidence.
A vital example comes from the fashion sector, which has faced considerable pressure to adapt as weather-related disruptions affect cotton production and the availability of raw materials. Brands such as H&M and Zara have suffered supply chain disruptions due to extreme weather events such as floods and droughts, which have affected cotton production in regions such as India and Pakistan. In response, both companies shifted their marketing focus towards sustainable cotton sourcing and increased use of recycled materials. This shift not only reduces supply chain risks but also resonates with eco-conscious consumers.
Climate extremism has also led to a significant change in consumer behavior, with sustainability becoming a critical factor in purchasing decisions. An IBM study found that 57% of consumers are willing to change their buying habits to reduce environmental impact, and 80% consider sustainability important when choosing brands. For marketers, this means adapting campaigns to highlight a brand's commitment to environmental stewardship.
One company that has successfully integrated climate awareness values into its brand is Patagonia. The outdoor clothing brand has long been known for its environmental activism, but in the face of growing climate challenges, Patagonia has taken bold steps to reduce consumerism.
In fact, its marketing campaign, “Do not Buy This Jacket,” encouraged consumers to think twice before buying new items, emphasizing the longevity and sustainability of the product. By aligning its marketing with its environmental values, Patagonia not only built a loyal customer base but also positioned itself as a leader in climate-conscious business practices.
As consumers demand greater transparency and action from brands around the world, marketers are tasked with crafting messages that authentically reflect a company's sustainability efforts and showcase the goals being achieved in their messaging. However, companies must act carefully to avoid accusations of greenwashing when environmental statements are exaggerated or misleading. According to Edelman's Trust Barometer, 68% of consumers expect companies to be transparent about their environmental impact, and 56% would stop buying from a brand if they believed it was greenwashing.
Unilever, a global leader in sustainability, has set an example by launching its Sustainable Living Plan, which includes clear and measurable targets for reducing its environmental footprint. Unilever's sustainable brands, such as Dove and Ben & Jerry's, consistently outperform their competitors, contributing to 75% of the company's growth in 2021. By incorporating sustainability into its core business strategy and communicating it transparently, Unilever has successfully built consumer trust and long-term brand loyalty.
So, what can marketers do about it? What solutions are available to 21st-century marketers facing the daunting challenge of the extreme climate crisis?
Among many, the rise of technology is the main and most prominent solution that has allowed marketers to harness data and analysis to better understand consumer behavior and environmental impact. Artificial intelligence (AI) and predictive analytics are playing a key role in helping companies predict weather-related disruptions and adjust their marketing strategies accordingly. AI allows companies to predict the availability of raw materials and changes in consumer demand, ensuring that they can respond quickly and effectively.
Nestlé, for example, has implemented AI-based solutions to reduce food waste and improve the efficiency of its supply chain. Through predictive analytics, Nestlé can optimize its sourcing strategies, aligning its sustainability goals with its marketing efforts by promoting transparency and efficiency throughout its supply chain.
In addition to AI, blockchain technology is transforming supply chain transparency by allowing consumers to trace the origins of products in real-time. Everledger, a blockchain technology company, provides companies with tools to verify the provenance of goods such as diamonds and wine, giving consumers confidence in the ethical and environmental origins of their purchases. This transparency increases the credibility of marketing statements and attracts consumers looking for products with verifiable sustainability credentials.
Another key element could be active global participation and the creation of a robust certification process. Climate extremism is a global issue, and no company or country can tackle it alone. As companies and governments strive to decarbonize sectors and reduce emissions, marketers must also adapt to the need for international cooperation and standardized sustainability certifications. Certifications such as B Corp, Fair Trade, and LEED offer marketers a way to validate their sustainability statements and differentiate their brands in an increasingly competitive market.
A great example is IKEA, which has pledged to source 100% renewable energy for its operations and to use FSC-certified wood in its furniture production by 2030. IKEA's marketing strategy strongly emphasizes these sustainability efforts, aligning with consumer demand for eco-friendly products and enhancing the brand's global reputation.
To conclude, a discussion that emphasizes adopting a marketing model that moves towards a climate-conscious future seems like a daunting and trivial task. However, in the age of climate extremism, the landscape for marketers is evolving rapidly. As extreme weather events disrupt industries and consumers demand greater environmental responsibility, marketers must adapt their strategies to prioritize sustainability, transparency, and innovation.
The successful brands in this new era will be those that authentically integrate climate-conscious values into their messaging, harness technology to anticipate and mitigate risks and collaborate globally to drive meaningful change.
Therefore, by embracing the challenges and opportunities presented by climate extremism, marketers have the power not only to drive business growth but also to contribute to a more sustainable future for all. The way forward requires a commitment to long-term sustainability goals, transparent communication, and a deep understanding of how climate change affects markets and consumer behavior.
Dr. Prachi Jain
SDG 12, SDG 13 and SDG 17
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