How marketing drives and profits the climate crisis*
(*and why brand leadership may just be the solution)
Constantly providing self-congratulatory introspection, the marketing industry relentlessly lauds itself for creativity and positive influence. But beneath the surface lies the “inconvenient truth”: Marketing is arguably the most significant contributor to the global climate crisis, among other pressing issues. While sectors such as energy and manufacturing are frequently scrutinised for their environmental impact, marketing remains largely unexamined despite its role in perpetuating harmful consumption patterns and encouraging the depletion of the world’s resources.
Marketing serves as the engine behind the relentless push for consumption. It goes beyond simple encouragement to create artificial needs, drive the production of unnecessary goods, acquire more, and promote a global culture of disposability. The commercial aim of marketing—to boost sales—often contradicts the long-term sustainability goals that businesses and governments claim to pursue.
A 2020 Harvard Business Review (HBR) article highlighted how traditional marketing Key Performance Indicators (KPIs), such as sales growth and market share, frequently ignore the broader consequences of their strategies. This HBR article is one of many arguing that marketing's narrow metrics perpetuate a cycle of overconsumption and waste, contributing significantly to the global carbon footprint [1].
Four years on from this cited thought-piece, one of the most critical flaws in contemporary marketing remains its obsession with KPIs that don’t align with long-term value creation. The relentless pursuit of metrics like click-through rates, conversion rates, and quarterly sales growth drives marketing strategies prioritising immediate gains over sustainability. This narrow focus on easily measurable outcomes can lead to several significant issues, including encouraging short-term thinking, promoting superficial success indicators, and potentially distorting actual organisational goals.
When KPIs are not aligned correctly, they can cause a narrow focus that overlooks broader impacts, such as environmental sustainability and social responsibility. For instance, a marketing team may concentrate solely on increasing website traffic or boosting sales figures without considering the environmental cost of the products sold or the societal implications of their marketing tactics. They may also overlook the environmental impact of communication technologies and platforms. This lack of foresight damages the environment and puts the long-term success of businesses at risk.
The push for constant growth leads to overproduction and increased waste. For example, in the fashion industry—one of the most heavily marketed sectors—the continual release of new collections leads to vast amounts of unsold inventory, much of which ends up in landfills. Business news sources such as HBR, WSJ, and Financial Times regularly highlight the staggering environmental cost of overproduction. Yet, still, marketing practices and the clear need for tighter corporate governance remain ignored [2].
It’s painfully clear that improper KPI design and implementation lead to unintended consequences. Despite the well-documented impact of short-term thinking on long-term success [3] and the self-publication of beautifully articulated purpose statements, many businesses fail to adopt a more thoughtful and considerate approach to setting strategically aligned marketing performance measures.
Social media influencers
The sudden and dramatic rise of social media has exacerbated many environmental and societal issues, mainly through the advent of influencer marketing. This strategy leverages individuals with large followings to promote products and services, sometimes covertly. This approach has intensified the drive for consumption and had significant societal impacts, especially on young people, who are often influenced by unrealistic body image expectations and consumerist pressures perpetuated by these influencers.
According to research conducted by Common Sense Media, an American nonprofit organisation that assesses and rates media and technology on their suitability for children, exposure to influencer-driven content can lead to unrealistic body image expectations, heightened anxiety, and decreased self-esteem among young girls [5]. Additionally, a report published by the American Psychological Association emphasised how marketing strategies on social media, often aimed at young audiences, contribute to a culture of comparison and dissatisfaction, potentially leading to long-term psychological effects [6].
Influencer-driven tactics frequently promote fast fashion, beauty products, and lifestyle choices that are unsustainable and environmentally damaging. The pressure to conform to these marketed ideals increases consumption, contributing to environmental degradation and social harm.
The impact of marketing on the environment is undeniably complex. Marketing fuels industries such as fast fashion, electronics, and packaged goods, significantly contributing to carbon emissions. Aggressive marketing strategies often increase consumer demand for these products, worsening environmental degradation. According to McKinsey, there is a clear link between marketing and environmental sustainability, as products marketed with sustainability claims tend to grow faster, showing that consumers are increasingly responding to such claims. This insight also emphasises the responsibility of marketers to ensure that these claims are not superficial and are backed by genuine, sustainable practices. Research indicates that products with environmental, social, and governance (ESG) claims have seen higher growth rates than those without. While this demonstrates the growing demand for sustainable products, it also underscores the importance of authentic marketing strategies to avoid further contributing to environmental harm [7] [8].
By incorporating sustainability into marketing strategies and ensuring credible claims, companies can mitigate their environmental impact while meeting demand for ethical products. Still, for many businesses around the world, this requires rethinking traditional marketing success measures by focusing on long-term sustainability rather than short-term sales boosts.
So, why isn’t marketing regulated?
Despite its significant impact, marketing goes unchecked for several reasons. The most prominent is protecting freedom of speech and expression, particularly in democratic societies where marketing is viewed as communication between businesses and consumers. These governments often hesitate to impose strict regulations on marketing activities due to concerns about infringing these rights.
Economic considerations also play a crucial role. Marketing is a significant driver of economic activity, fuelling consumer demand, supporting media industries through advertising revenues, and enabling businesses to reach and engage with their audiences effectively. Regulating marketing too heavily could potentially stifle innovation and economic growth, leading to resistance from business lobbies and industry groups.
The marketing industry is highly diverse, covering everything from traditional advertising to digital marketing and influencer campaigns. This diversity makes it difficult to establish a single regulatory framework that fits all. Furthermore, the rapid advancement of technology in marketing, particularly in digital and social media, and now artificial intelligence (AI), has outpaced regulators’ ability to keep up.
Adding more complexity, major digital platform owners, who have gained immense power and influence around the world, exploit their platforms to promote their commercial and political agendas. Their influence is particularly significant given that many dominant platforms are American-owned, which allows the cultural and political motivations of the United States to permeate global markets. This dominance in different countries can complicate regulation and has profound social implications, such as shaping public discourse, influencing local political landscapes, and potentially eroding cultural identities—blurring the lines between marketing, influence, and misleading content.
Integrating AI into marketing now introduces another layer. AI-driven algorithms can now personalise marketing efforts on an unprecedented scale, targeting individuals with highly relevant and persuasive content. While this increases marketing efficiency, it raises ethical questions about data privacy and manipulation and the potential for AI to exacerbate issues such as overconsumption and the spread of misinformation. The ability of AI to adapt and evolve faster than regulatory frameworks can be updated makes it a particularly challenging area to control.
Another factor to consider is the industry’s reliance on self-regulation. Many regions rely on industry bodies and trade associations to set standards and codes of conduct, which, while effective in promoting ethical practices, often lack the enforcement power of governmental regulation. This approach can lead to inconsistencies and a lack of accountability, especially when profit motives conflict with ethical considerations.
Brand leadership intervention
Change in how businesses market themselves must be driven from the top. Business leaders need to recognise that the current trajectory is not sustainable. The focus must shift from short-term gains to long-term value creation, prioritising the well-being of all stakeholders—including the environment.
A recent Forbes article highlights the essential role of CEOs and senior leaders in aligning marketing strategies with sustainability goals. It emphasises that businesses should avoid greenwashing by setting achievable, measurable goals, practising radical transparency, and validating their efforts through reputable third-party certifications [9]. Companies can build stakeholder trust through this alignment by adopting more comprehensive performance measures, such as customer lifetime value, brand loyalty, and environmental impact, and focusing on genuine and verifiable sustainability practices. Broader value ensures marketing efforts contribute positively to social and ecological objectives, reinforcing long-term value.
The marketing industry stands at a critical juncture. It can continue on its current path, contributing to social and environmental destruction, or evolve to become a force for good. This evolution requires a fundamental shift in how success is defined and measured. By embracing sustainability and prioritising long-term value creation, the industry can help mitigate its impact on the world.
However, the solution goes beyond simply altering marketing practices. It lies in redefining brand leadership as a strategic imperative rather than a marketing function. Brand value creation and purpose-driven strategy must be at the core of this transformation. When a brand is built on a clear purpose and aligned with both strategic and sustainability goals, it drives all aspects of the business—including marketing—towards a positive impact.
At the heart of this shift are the first two indicators of brand clarity: Higher Purpose and Purpose-Driven Strategy. These indicators are crucial for resolving the issues identified in this article. A brand with a higher purpose unites stakeholders around a common goal that transcends profit, fostering genuine engagement and long-term loyalty. Business decisions, including marketing, can be more easily identified and scrutinised when higher purpose is embedded into strategy, helping establish and maintain sustainable value creation.
But transformation does not stop there. These first two indicators must be tightly integrated with the third indicator: Conscious Communications. Conscious brand-led communications ensure the organisation aligns with its higher purpose and strategic goals, fostering transparency, authenticity, and trust. When communications are mindful, they do more than promote products—they inform, educate, and empower stakeholders, reducing the risk of perpetuating harmful societal norms or contributing to overconsumption.
Conscious communications act as the bridge between an organisation’s higher purpose and its stakeholders. Businesses can shift the narrative from consumption to meaningful engagement by crafting thoughtful messages and aligning them with sustainable values. This approach can mitigate both the social and environmental impact of marketing and enhance reputation, leading to deeper connections with stakeholders who value integrity and responsibility.
Setting a clear path forward
The challenges posed by unregulated marketing are significant but not impossible to overcome.
Incorporating marketing and communications into broader sustainability frameworks may be vital in resolving these issues. For example, Europe’s Corporate Sustainability Reporting Directive (CSRD) is leading the way by mandating disclosures related to sustainability. If similar frameworks were to include marketing and communications as crucial components, it would elevate brand-building efforts to a corporate leadership imperative at the highest levels of an organisation.
Integrating ethical brand-building practices into business would create a compelling case for more responsible marketing approaches. This integration could cultivate a culture of transparency and accountability, whereby the environmental and social effects of marketing are thoughtfully evaluated and controlled. Furthermore, it would stimulate self-regulation within the industry, fueled by a dedication to sustainability rather than just meeting regulatory requirements.
Leaders must ensure that these principles become integral to their organisational design. By strongly emphasising brand clarity, they can guide their companies away from the potential dangers of uncontrolled practices and towards a future where business success is determined not only by financial outcomes but also by its beneficial effects on society and the environment.
The present circumstances require immediate and decisive measures. Leaders must fearlessly question the prevailing conventions and set forth new, morally sound marketing benchmarks tailored for the contemporary age. This approach is essential for shaping a viable future that caters to the welfare of all stakeholders rather than solely prioritising those with financial stakes.
True brands, measure up
As a business leader, you’re responsible for steering your organisation toward sustainable and ethical practices. By prioritising brand clarity, purpose, and impact, you can transform your business from a driver of degradation to a force for positive change. Start today by integrating holistic measures into your business.
References
[1] Harvard Business Review, What Are Your KPIs Really Measuring?, 2020. https://hbr.org/2020/09/what-are-your-kpis-really-measuring;
[2] Financial Times, Fast fashion: We aren’t doing enough to fix the problem, 2024. https://www.ft.com/content/f0be47ca-dd6f-44d5-8be8-80012ed4b725;
[3] Stanford Business School, The Next Phase of Business Sustainability, 2018. https://ssir.org/articles/entry/the_next_phase_of_business_sustainability;
[4] The Economic Times, How 'covert influencers' harm the fight for clearly marked paid posts, 2021. https://economictimes.indiatimes.com/tech/technology/how-covert-influencers-harm-the-fight-for-clearly-marked-paid-posts/articleshow/81469082.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
[5] Common Sense Media, The Common Sense Census: Media Use by Tweens and Teens, 2021. https://www.commonsensemedia.org/research/the-common-sense-census-media-use-by-tweens-and-teens-2021;
[6] American Psychological Association, Social media brings benefits and risks to teens. Psychology can help identify a path forward, 2023. https://www.apa.org/monitor/2023/09/protecting-teens-on-social-media;
[7] Food Navigator, Sustainability sells: McKinsey, NielsenIQ research shows link between ESG claims, higher growth, 2023. https://www.foodnavigator-usa.com/Article/2023/02/09/sustainability-sells-mckinsey-nielseniq-research-shows-link-between-esg-claims-higher-growth;
[8] Climate Change, McKinsey, 2023. https://www.mckinsey.com/featured-insights/climate-change;
[9] Forbes, How To Market Sustainability While Avoiding Greenwashing, 2024. https://www.forbes.com/sites/forbescontentmarketing/2023/09/14/how-to-market-sustainability-while-avoiding-greenwashing/
