Impactful Campaigns from US American Companies
Guest Author: Shirley Kantor
Key Takeaways
Companies are facing increased scrutiny and backlash over their ESG activities, leading to 'greenhushing,' where they downplay or remain silent about their sustainability efforts.
Despite these challenges, pursuing genuine ESG initiatives is crucial for long-term sustainability, employee satisfaction, consumer trust, and investor confidence.
Table of Contents
Why are Brands Flying Under the (Media) Radar?
Recently, I attended a conference run by “Sustainable Brands”, a global community of brand innovators who are reshaping the future of commerce. During my visit, I gathered some compelling examples of companies’ ESG impact marketing efforts. In this post, I share my favorite examples of brands making a difference.
The first day of the “Brand-Led Culture Change” conference in Minneapolis, Minnesota, dealt extensively (both on stage and in hallway conversations) with the backlash against the field of ESG, which has only intensified in recent years as part of the growing polarization between liberals and conservatives and the politicization of almost everything.
The controversy isn’t just about diversity, equity, and inclusion (DEI) agendas—which some investors and media figures label as "WOKE" and progressive insanity—but also about climate issues that have become politicized, as they involve systemic change and government intervention in the private market. However, some attacks on the field come from a different angle: revelations of greenwashing by companies that flaunted ESG statements but didn't take substantial actions, or those that used green marketing for products that remained environmentally problematic.
These attacks have led to a trend where companies downplay their activities, known as 'greenhushing'—a notable trend this year where companies are less vocal about their environmentally-friendly practices."
But in reality, companies have not stopped working to improve their social and environmental impacts; they are just talking about it less. And when they do communicate, they often use terms other than ESG.
They haven’t stopped because, as research shows, many employees, consumers, and investors want value-driven companies. And also because too many people in company leadership understand that it is the right thing to do.
But it's not enough to just do. We need to go back and talk about it, communicate it, promote agendas, and make progress.
M&M's Candies Tick Off Conservatives
Two years ago, the cartoon characters representing M&M’s underwent a slight but significant physical and personality change to become more inclusive and current, allowing them to express the brand's values of self-expression and community.
For example: the light skin tone of the characters’ limbs (representing only one race) was replaced with several different shades; the brown female character's stiletto heels were shortened while keeping her smart expression; the green female character’s boots were replaced with sneakers, and her lips (and expression) became less pouty—she now exudes confidence and gender equality; the orange character's laces were tied (to reduce the clueless stereotype), but the character still exudes anxiety and stress, allowing others who identify with these feelings to feel seen and validated.
The transformation aimed to implement the brand’s social mission: "We believe in championing the power of fun to create a world where everyone feels they belong," and to fulfill the commitment of its parent corporation, MARS, towards inclusivity.
While the move was largely received enthusiastically, it also faced a backlash from consumers, media figures, and even politicians who labeled it a progressive feminist WOKE move. They claimed it was an illegitimate interference of businesses in social and political agendas.
However, this didn’t cause the brand to back down from the change. In fact, the brand’s response became an entertaining campaign in itself, including a commercial aired during the Super Bowl.
This is another example of how genuine values serve as a quality compass for navigating the storm of the public and the media. Choosing the right path for a brand becomes much simpler (unlike, for example, Budweiser's decision to cancel a campaign featuring a transgender influencer due to consumer outrage).
Inclusive Marketing by REI
Outdoor equipment company REI launched a new generation of sleeping bags (private label) in nine different sizes. The sizes are designed to cater to various body shapes and sizes and accommodate preferences for warmer or more ventilated sleeping bags.
Previously, REI offered only two sizes of sleeping bags: long (for men) and short (for women). As part of its social mission to make the outdoors accessible to everyone, the company addressed customer complaints about the discomfort of these sizes. Following this, the company conducted research on 150,000 US Americans and found that the existing sleeping bag sizes fit only half the people!
Through a thorough and dedicated process, nine different sizes of sleeping bags were developed, catering to various needs without being tied to gender. The options include long, short, wide, narrow, warm, and ventilated sleeping bags.
There are three important lessons from this story:
Market expansion: A company’s genuine commitment to fulfilling its social mission helps identify new business opportunities. This is what happens when social impact is created from the core, not from the shell (see: the peach model for social impact).
Inclusive marketing: In the age of micro-segmentation, it is important to re-examine existing services/products and ask: which audiences are they not really tailored for? The more we identify new and specific segments within the existing segmentation (e.g., body shapes instead of male/female), the more appealing we become to new customers.
Creating shared value: REI will likely gain many new satisfied customers who will finally be able to go out and enjoy sleeping in nature.
Circular Economy at REI
Laura Kelly, the senior manager of REI’s Recommerce unit (their second-hand department), also took part in the conference. The sale of these items to customers is done online, within the company's website, and in a dedicated department within each physical store. There are also two physical stores dedicated solely to second-hand items (or as they call it: Re\supply). Customers are invited to bring used items for trade-in, receiving a gift card worth 10%-40% of the original item's price in return.
Laura shared that this sector is becoming an increasingly significant part of REI's commercial activity. Last year, 1.5 million items were traded in the USA. In fact, REI is rethinking its business model, moving towards being a business with both incoming and outgoing flows. Growth potential lies precisely in the ability to absorb used products.
ESG Impact Marketing at Target
Circular economy was definitely a hot topic at the conference. Alongside REI, a case-study of the American retailer Target was presented (by Jason Brin, Private Label Innovation Manager) in which Target allows customers to trade in baby car seats. Twice a year, customers are invited to bring car seats that they no longer need to a collection point in the chain's stores, whether intact or damaged, purchased at Target or elsewhere. In return, they receive a 20% discount coupon for purchasing a new car seat or other baby equipment.
The initiative started in 2016. To date, 2.6 million seats have been collected, and 17,000 tons of plastic, textile, and metal have been dismantled and recycled. The recycled materials are integrated into Target’s private label products, thus closing the loop.
The scale is astounding! And this is just for one product in one retail chain. Consider the enormous amounts of waste or potential resources sitting unused in homes or being discarded.
The initiative is part of Target's commitment to achieve 100% circularity in their product design by 2040 (i.e., all its private label products will be designed for reuse or recycling).
Meanwhile, the chain also helps its customers choose circular products through Target Zero.
Reasons why this campaign is successful:
Responds to a practical need.
It’s easy to implement (collection boxes in stores).
It’s incentivized (20% discount).
In conclusion, these ESG impact marketing efforts by M&M's, REI, and Target illustrate that brands can authentically align with social and environmental values while still thriving commercially. As companies navigate the nuanced landscape of ESG and public scrutiny, clear and sincere communication remains essential. It's not just about doing good; it's also about sharing these stories so that consumers, employees, and investors can connect with and appreciate these genuine commitments.
Glossary
ESG (Environmental, Social, and Governance): A comprehensive framework used to evaluate a company's commitment to sustainable and ethical practices. ESG encompasses three key areas: Environmental factors, such as a company's carbon footprint, resource usage, and environmental stewardship; Social factors, including employee relations, community involvement, and human rights; and Governance factors, which assess corporate leadership, transparency, ethical behavior, and stakeholder engagement. ESG criteria help stakeholders understand a company's long-term sustainability and ethical impact on the world, guiding investment and operational decisions.
Greenwashing: A phenomenon where a company makes misleading or false claims to convince consumers that its products are more environmentally friendly or have a greater positive environmental impact than they truly do. This is often viewed as a critique of Environmental, Social, and Governance (ESG) practices because it undermines the credibility and effectiveness of ESG efforts.
Greenhushing: The action of a company choosing not to share its environmental, social, and governance (ESG) information with the public, including stakeholders and investors. This may be done to avoid accusations of greenwashing, manage concerns from investors, keep competitive secrets, or because their ESG practices are not strong or are uncertain due to changing regulations. By not sharing this information, the company limits transparency and makes it harder for others to evaluate how sustainable and responsible it really is.
Circular Economy: A system designed to maximize the lifespan of products and materials by maintaining them in use for as long as possible. This approach contrasts with the traditional "linear economy," which involves extracting raw materials, manufacturing products, and disposing of them at the end of their life. In a circular economy, the goal is to minimize waste and the use of harmful substances by redesigning, reusing, recycling, and regenerating products and materials. This model promotes resource efficiency, reduces environmental impact, and creates value from waste by reintegrating it into the production process.
Closing the Loop: In the context of the circular economy, closing the loop refers to the practice of ensuring that materials and products are reused, recycled, or repurposed at the end of their lifecycle, rather than being discarded as waste. "The loop" represents the continuous cycle of resources within the economy, where products and materials are kept in circulation for as long as possible. When a company says they are "closing the loop," they mean they are implementing strategies to reclaim, recycle, or repurpose materials from used products, thereby reintegrating them into the production process. This approach helps reduce waste, conserve natural resources, and minimize environmental impact.
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