It should be no revelation that brands drive most stock values. However, the concept of a sustainable brand is fresh from this millennium. Environmental conservation started as a ‘left-of-center’ movement. It has now entered the portals of the most conservative corporations. No brand is reliable from an investor’s perspective unless it meets the following three conditions:
1. The entire product or service lifecycle should be free from human abuse. Sweatshops in Asian outbacks, and funds from precious gemstones for internecine battles in Africa, are the most widely known instances of abusive sourcing. Customers will move away from brands that hide such disgraceful practices.
2. Products and services that pollute the atmosphere, and others that consume finite resources, will not survive the new generation of consumers. Young people would rather do without conveniences and features than support brands that harm the planet.
3. The ban on trans-fats is a symbol of new times. Customers will not wait for regulators to take brands that harm health off shelves and menus. Wellness and fitness have moved to the top of peoples’ agendas. Woe betides brands that make us susceptible to diseases or which threaten longevity.
Business management and stock investment share preoccupations with the future. You can use sustainability parameters for a fresh approach to building enterprise value, and your personal financial portfolio as well. Take new looks at brands that have serviced past dividends. Invest in corporations with sustainable brands. Welcome to the caring world of green business.
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