The global business landscape is seeing a huge shift in reaction to the growing climate crisis, and a defining trend in recent years has been the rise of conscious consumerism, particularly among millenials and gen Z. As their incomes increase and purchasing power grows, companies that want to appeal to this younger generation and remain competitive will need to demonstrate their commitment to their values in a credible way.
According to recent studies conducted by First Insight and Capterra, a significant proportion of consumers prioritise sustainability when making purchase decisions. The majority (88%) of consumers report checking a product’s sustainability before making some of their purchases, while two-thirds of consumers are willing to pay a premium for sustainable products.
In particular, gen Z and millennials are increasingly prioritising sustainability, ethical practices, and social responsibility when making purchasing decisions, and they are demanding the same from the businesses they support. According to the First Insight study, 62 percent of gen Z and millennial survey participants say they prefer to buy from sustainable brands, and Capterra reports that 90% of gen Z have bought a sustainable product in the past six months compared to 85% of millennials.
The clothing brand I co-founded, The Common Good Company, supplies ethically made blank canvas clothing to businesses and events like Triple J Hottest 100, Who Gives A Crap, Moondog Brewery, Heaps Normal, Yalumba Wines and Laneway Music Festival, and more, for them to print their merchandise.
We are also currently the only wholesale merchandise supplier in Australia that is B Corp certified, a process that is scrupulous and time-consuming to complete.
B Corps, or Benefit Corporations, are businesses that have been certified by B Lab, a nonprofit organisation, as meeting rigorous standards of social and environmental transparency, performance and accountability.
Tessa Carroll is the co-founder of The Common Good Company. Source: Supplied
To secure a B Corp certification, a company must complete an assessment that evaluates its impact on the environment and stakeholders, including its employees, customers, and the community. This assessment covers a range of areas throughout the supply chain, from workers’ rights to responsible sourcing of materials to waste management. Furthermore, B Corp certification is an ongoing commitment to making continuous improvement, with all B Corp-certified companies being required to go through the certification process every three years to remain certified. This demonstrates further the commitment that B Corps make to their social and environmental impact.
This certification is a powerful tool for businesses looking to engage the new generation of conscious consumers.
Here are three reasons why:
In an era of greenwashing and scepticism around marketing claims, building trust with consumers is more important than ever. B Corp certification can help instill confidence as these are held to high standards, and their certification demonstrates to consumers that they are serious about making a positive impact on people and the planet. The result is increased brand loyalty as consumers are more likely to support companies that align with their values.
By 2030, gen Z will make up a third of the working population, and millennials will comprise almost two-thirds. The younger generation of workers is looking for more than just a paycheck from their employers, they want to work for companies that share their values and are making a positive impact in the world. B Corp certification can be a powerful tool for businesses when recruiting the next generation as well as retaining them, as it signals to potential employees that the company is committed to social and environmental responsibility, and workers are more likely to stay with a company that has values that align with their own.
B Corp certification is not just about what individual companies are doing, but also about creating a community of businesses that are committed to having a positive impact. By joining the B Corp community, businesses can learn from and collaborate with other like-minded companies, which encourages positive competition as they strive to continuously improve to ensure they stand out in a cluttered marketplace.
B Corp certification is a smart investment for companies looking to engage the new generation of conscious consumers who are increasingly focused on making ethical and sustainable purchase decisions. By securing this certification, businesses can build consumer trust and loyalty, attract and retain employees, and encourage positive competition. Furthermore, by committing to ongoing improvement to maintain certification, they can ensure they stay relevant and thrive in the climate-aligned economy of the future.
Tessa Carroll is the co-founder of The Common Good Company, an Australian B Corporation clothing brand that provides ethically made blank canvas apparel for businesses to print their merchandise.
