By Israel KPEKPENA (Dr) & Michael MOLENAAR
Today, sustainability has emerged as a top priority—not a cliché or a buzzword but a call to action because human actions have significantly impacted the environment.
Therefore, for companies operating on a global scale, implementing sustainable business practices is no longer optional; it has become mandatory, and for some, it has become their core purpose.
Sustainable Development Goal (SDG) 12—”Ensure sustainable consumption and production patterns”—expects corporate entities to show a strong commitment to the sustainability agenda by 2030.
For Ghanaian brands, this is not only a chance to make a difference in environmental and social objectives but also to drive business value, consumers’ trust, and sustainable growth. Incorporating sustainable practices can significantly enhance the reputation of Ghanaian brands, both locally and internationally, as sustainability gains prominence across all sectors.
What is sustainability?
The United Nations Brundtland Commission, in 1987, provided a definition of sustainability that emphasises the importance of meeting the needs of the present while ensuring that future generations can also meet their own needs.
Sustainability, as a type of intergenerational ethics, ensures that current environmental and economic behaviours do not limit future generations’ potential to enjoy comparable levels of wealth, utility, or well-being (Meadowcroft, 2024).
The three dimensions or pillars of sustainability are social, environmental, and economic, also known as people, planet, and profits. These forms, or pillars, provide a framework that allows for the evaluation of sustainability in various contexts, including organisations, products, services, and technologies. Learning about these pillars in depth can help you build a sustainable future. To do this, you need to make sure that protecting the environment, promoting social equality, and making money all work together, with no one area taking precedence over the others.
The Evolution of Consumer Trends
Consumers around the world, including those in Ghana, are increasingly aware of the impact their choices have on the environment and are therefore willing to modify their purchasing and consumption habits to promote sustainability for the planet and its inhabitants. As education levels and exposure to information increase, there is a discernible trend towards products with sustainability values. This change offers businesses the chance to differentiate on the grounds of sustainable practices.
Consumer attitude surveys reflect an increasing appetite for environmentally sustainable, ethically produced, and socially responsible goods. Companies that address this demand not only attain the increasing market share but also gain the loyalty of values- and ethics-conscious consumers who look beyond the price factor.
Sustainability as a differentiator
The Ghanaian market is led by a dynamic array of local brands vying for consumers’ attention. In this competitive marketplace, sustainability can be a differentiator. Brands that implement robust sustainability programs and effectively communicate them can distinguish themselves from their competitors.
A positive example in Ghana’s cocoa industry is Mondalez. The company’s Cocoa Life initiative empowers 200,000 cocoa farmers in Ghana to ensure a sustainable future for chocolate. The program improves livelihoods, strengthens communities, and inspires future cocoa farmers. This program has remarkably transformed farming, communities, youths, women, livelihoods, and the environment. By incorporating this sustainable initiative into their operations, Mondelez has earned a strong reputation both locally and internationally.
Other brands along the cocoa value chain, such as chocolatiers, also stand to benefit greatly by using sustainability as a differentiator. By emphasising fair trade and sustainable agriculture, chocolatiers can sell to ethically aware consumers. This approach not only benefits domestic markets but also positions such brands favourably in international markets, where there is a significant demand for cocoa sourced ethically.
Also in the apparel industry, brands are using sustainability as a powerful differentiator by emphasising ethically sourced inputs and environmentally friendly production processes. Some fashion designers are applying indigenous knowledge and traditional craftsmanship practices—like natural dyeing using local materials—to limit chemical waste and honour Ghana’s rich cultural heritage.
With such practices, not only is there less environmental degradation, but it also leads to distinctive, high-quality apparel that stands out on the global stage. By paying local creatives fairly and creating community, brands are achieving a depth of story that resonates with consumers who choose to make ethical and responsible purchasing decisions.
This is the case for Ethical Apparel Africa (EAA), a manufacturing and sourcing brand in Ghana. The EAA brand aims to transform the Ghanaian garment industry by partnering with local, women-owned factories and supporting their exports while prioritising worker well-being.
They use technology and lean management to create a cycle of productivity and investment in people. EAA enables brands to diversify their supply chains through ethical production in West Africa, delivering cost-competitive, quality products while ensuring workers are respected and paid living wages. EAA’s mission is to empower people and protect the planet, with a goal of creating 10,000 sustainable jobs by 2030, with over 70% for women.
By making judicious use of these and other sustainable practices, Ghanaian brands can not only differentiate themselves but also lead the way in creating a sustainable and socially responsible apparel sector, delivering value to local as well as international brands.
Specific potential benefits of sustainability to Ghanaian brands
Opportunity for higher revenue
By adopting sustainability, Ghanaian brands have a significant opportunity to increase their prices, as consumers are already demonstrating their willingness to pay a premium for socially and environmentally sustainable products.
To be able to capitalise on this, companies must be in a position to quantify such metrics as customer lifetime value and consumers’ perception of the value of sustainability initiatives. In the opinion of Achrol and Kotler (2019), sustainability is emerging as a core component of contemporary marketing, changing the way businesses interact with customers in the digital age.
A 2021 report by the IBM Institute for Business Value showed that 50% of consumers are enthusiastic about paying extra for sustainable brands or products. This is a crucial observation for businesses in Ghana. As consumers move away from conventional products in favour of sustainable ones, they are showing a tendency to pay more in alignment with their sustainability aspirations. This change in consumer mindset generates brand value for sustainable firms, enabling them to charge premium prices in the market.
Enhancing brand reputation and trust
Trust is a cornerstone of brand loyalty, and sustainability can significantly enhance a brand’s reputation. Implementing genuine sustainable practices demonstrates a commitment to ethical operations, engendering trust among consumers, investors, and partners.
Ghanaian fashion brands are already leveraging sustainable practices to redefine their narratives. By using locally sourced, sustainable materials and providing fair wages to artisans, these brands tell a story that resonates with consumers while supporting local economies. As a result, they build a reputation as responsible businesses, attracting partnerships and collaborations.
Driving innovation and efficiency
Sustainability drives innovation. By challenging brands to think beyond traditional models, it fosters creativity in product design, packaging, and resource management. For instance, in the packaging industry, there’s a push toward biodegradable and recyclable materials. Brands that innovate in this area reduce their ecological footprint while appealing to environmentally conscious consumers.
Furthermore, adopting sustainable practices can lead to operational efficiencies and cost savings. Energy-efficient processes and waste reduction initiatives often translate to lower operational costs. These savings can be reinvested into other areas of the business, driving growth and innovation.
Gaining access to new markets
With increasing global emphasis on sustainability, Ghanaian brands that adopt sustainable practices gain a competitive edge in international markets. European and North American consumers, in particular, show a strong preference for products that meet sustainable criteria. Likewise, many global retailers are mandating sustainability requirements from their suppliers.
By aligning with these demands, Ghanaian brands can expand their reach and explore new market opportunities. This not only elevates their brand presence globally but also contributes to economic growth by increasing export potential.
Building resilience and long-term success
Sustainability is not just about immediate gains; it’s about building resilience and ensuring long-term success. Brands that anticipate and adapt to changing environmental regulations and consumer expectations position themselves to weather market fluctuations and disruptions.
Climate change poses significant risks to industries such as agriculture, which is pivotal to the Ghanaian economy. By implementing sustainable practices like water conservation, organic farming, and crop diversification, agricultural brands can mitigate risks and ensure long-term viability.
Attracting investment
Investors are increasingly prioritising environmental, social, and governance (ESG) factors in their decision-making processes. Brands with strong sustainability credentials can attract investment from both local and international investors seeking ethical and sustainable returns.
Incorporating sustainability into business strategies signals to investors that a brand is forward-thinking and considers broader societal impacts. This can enhance investor confidence and lead to diversified funding opportunities.
Overcoming challenges in pursuing sustainability
While the benefits are significant, the journey towards sustainability is not without challenges. Implementing sustainable practices requires initial investments and a shift in organisational culture. Some businesses might find it challenging to balance sustainability with other operational objectives.
However, these challenges can be mitigated through strategic planning and partnerships. Government incentives, industry collaborations, and access to sustainability expertise can facilitate the transition towards greener practices. Moreover, the long-term benefits of sustainability often outweigh the initial costs, making the transition both viable and profitable.
A call to action
For Ghanaian brands seeking to thrive in the modern business landscape, the incorporation of sustainability is no longer optional—it is a necessity. By embracing sustainable practices, brands not only contribute to societal and environmental goals but also can generate higher revenue, unlock new business opportunities, build robust consumer relationships, and secure their future in an increasingly competitive global market.
The time to act is now. Brands that lead the sustainability charge will not only set the pace in their industries but will also inspire a broader movement towards responsible business practices across the nation. By committing to sustainability, Ghanaian brands can truly realise their potential, thereby contributing to a prosperous and sustainable future for all.
| Dr. Kpekpena isa Marketing Lecturer at the GIMPA Business School. Email: [email protected] |
Michael is the Manager, Marketing & Communications, KPMG. Email: [email protected]
