Federico Rossi, head of strategy at Sintesi Factory, spoke during the presentation of our Social Report 2023, in the month of sustainability in the winery, with some provocations and arguments related to sustainability communication.
Sustainability as a distinctive and strategic factor for companies
Among the speeches at the conference presenting our social report in the month dedicated to sustainability was one by Federico Rossi, founder of the communications agency Sintesi Factory, who pointed out how sustainability is often treated superficially and is becoming an empty word. While waiting for a European law to regulate sustainability communication, it is therefore important to define what sustainability is not.
"Doing sustainability is not simply installing solar panels on the roof. It can be useful, but if the farm is extremely energy intensive and solar energy only covers 1 percent of energy needs, then it is not sustainable. Sustainability is not only about organic because if I produce it 50,000 km away and employ underpaid labor, then it is not sustainable. However, many companies are more sustainable than they think. The problem is that few companies have defined a comprehensive sustainability strategy, lacking the ability to connect all the dots and put the pieces together."
To better define the concept of sustainability, Federico Rossi introduces the "5Ps": planet-pepole-profit-prosperity-purpose. Planet refers to reducing emissions through technological and organizational innovation, emphasizing the importance of economic efficiency. "Sustainability is not charity"-says Federico-but it also involves putting stakeholders at the center, creating a positive organizational climate and ensuring the well-being of employees. This leads to a more productive and attractive company, improving its overall performance. Companies that succeed in achieving these goals are able to attract talent."
It is important to emphasize that an unsustainable company is destined to exit the market, has no future, and that at the European level decisions are being made on how to reward sustainable companies or penalize unsustainable ones. Sustainable companies have a longer business continuity and therefore have greater solvency in the long run.
Sustainability is business but it is also ethics; they are two sides of the same coin. And this is where the "P" in Profit comes in as sustainability cannot be separated from profit, since a company must make profit to fulfill its functions for which it exists and operates. Profit then becomes a response to create value with stakeholders: it must create a win-win and thus contribute to overall prosperity. This translates into a shift from a vision in which the company maximizes profit to distribute to shareholders, to a company that makes profit to remunerate the capital invested and share the value created.
Today people no longer just buy products, but also consider how they are made, and value affinity becomes the distinguishing factor. Price is no longer the only discriminating factor. Sustainability becomes a market response that must be developed throughout the supply chain. Rossi emphasizes the need to change production processes and work on entire systems to ensure a sustainable production chain.
Sustainability communication and greenwashing
When it comes to communicating sustainability, it is important to understand why you want to communicate and what you want to communicate. Sustainability communication must be a strong relational element. There are significant differences between sustainability communication and marketing communication: sustainability communication involves all stakeholders, each with different needs and requires different tones and communication approaches. In addition, while marketing communication aims to sell, sustainability communication aims to inform and spread culture and values to enable stakeholders to independently understand the philosophy that the company follows. Sustainability communication must maintain a balance on multiple communication levels, maintaining a technical basis and making information accessible to the public. There are six basic criteria for effective sustainability communication: trustworthiness, relevance, clarity, transparency, accessibility and comparability.
Attention was then turned to the important and now rampant topic of greenwashing. An English term for the communication strategy of certain companies, organizations or political institutions aimed at building a deceptively positive self-image in terms of environmental, territorial, social and economic impact.
"If a company claims to produce organic t-shirts but has not obtained certification, it is greenwashing. Similarly, claiming to be sustainable just because you meet standards is not enough, it is still greenwashing. It is important to avoid exalting aspects that have a marginal impact on the overall impact of the company, using communication to divert attention away from those more significant aspects. Sustainability cannot be just an empty word; it must be supported by concrete actions. Communication should follow actions and not vice versa"-Federal Federico Rossi concludes.
Companies need to be honest about their sustainability and not exaggerate or hide important information. Greenwashing is now sanctioned and can damage not only the image of the company involved, but the entire industry of which it is a part.
In conclusion, sustainability is a response to the market and a competitive advantage for companies, but its communication must go beyond slogans; it has the task of informing and creating shared value. Reputation becomes the starting point of a positive spiral that is based on trust and business relationship: sustainability is not a marketing issue, but the way to make a difference in the world through concrete actions.
Review our event dedicated to the Social Report 2022 here.
