The marketing (and profitability) benefits of showcasing green initiatives

Continued investment in sustainability remains an essential part of all long-term commercial strategies for businesses. These commitments might have lost some public attention during the previous  310 consecutive days of no load-shedding, but the rude awakening the country recently experienced when the lights went off again not only validates the soundness of environmental, social, and governance (ESG) strategies, but presents a golden opportunity to showcase them to consumers and to communicate their far-reaching benefits.

The last week of January was a rollercoaster ride for South Africans in this regard. First Eskom was denied its request to implement a staggering 36.15% electricity tariff increase for 2025 (it’s now “only” 12.7% but still significantly higher than inflation), but within 24 hours stage 3 load-shedding was announced.

It was a stark reminder that South Africa’s energy supply is precarious.

What does this sudden chain of events mean, and make possible, for businesses’ public relations?

Businesses have spent the past five years insulating themselves from the upheavals to operations caused by crippling power outages that cost companies millions. Self-generation by means of the huge uptake of commercial rooftop solar and even wheeling agreements, and investment in green alternatives and off-grid sources of energy, pioneered a nationwide mind-shift towards sustainable, renewable energy independence — to the benefit of both businesses and consumers.

Whereas the initial public attention for pioneering businesses was mostly centred on the benefits of their uninterrupted operations for consumers, the opportunity now is to anchor the narrative in the environmental and cost-saving nature of their sustainability investments.

There are five principal ways to lead and communicate sustainability commitments for positive change and a marketing edge.

1. Cost savings as a marketing tool

As the energy crisis reached disastrous levels from 2019 onwards, listed companies’ annual results reports were littered with skyrocketing operational expenses, largely driven by the emergency adoption of large-scale diesel generators to ensure uninterrupted operations during power outages.

Diesel expenditure for various listed companies in many instances ranged upwards of R10bn. That unexpected expense ended up having to be passed on to consumers in the form of price increases.

Now, with increased energy independence through strategic investment in sustainable and renewable energy for companies’ own use, there is less pressure on their cost drivers, and therefore more capital is available for other strategic uses.

Lower energy costs can be marketed as sustainable and beneficial to consumers, and the savings can be reinvested into marketing and innovation, allowing businesses to showcase their long-term sustainability goals as intimately tied to profitability.

2. Better media and PR opportunities

The sudden return of load-shedding means that reports about businesses that adopt renewable energy for their own use are not just breaking news again, but widely attractive to even specialised news publications.

The pro-business narrative that the failures of state-owned enterprises fuels adds financial news angles and industry specific articles, and provides opportunities to spearhead the benefits of ESG in the public eye — while aligning with global trends and garnering even international attention.

3. Improved investor and stakeholder relations

Investors have been influenced by the ethical motivations for investing in sustainability for some time now. ESG reporting remains the standard by which companies can be assessed as good targets for such investment flows.

Amid the dramatic shift away from sustainability under the new administration in the USA, investors who face political blockages to investing in ESG-commitments have to look beyond their own borders.

Widely publicised and proud commitments to ESG-principles have rarely been so well positioned to garner investor attention from a global perspective.

4. Stronger consumer engagement

Such topical commitments in the midst of  renewed warnings about domestic crisis holds major appeal to fervent public champions of renewable energy and sustainable business practices.

The growing number of eco-conscious customers and consumers are eager to identify and support companies that share these views of the future of ethical business.  This narrative provides a multitude of authentic storytelling opportunities for campaigns and content marketing.

5. Increased employee satisfaction and attraction

Bringing a business’s commitment to ESG principles before the public eye also helps attract top talent; people who are increasingly looking for purpose-driven careers — especially among highly qualified young professionals.

Aligning company values with sustainability lays a foundation for a workplace culture well positioned for driving morale to levels that synchronise employee wellbeing with a business’s efficiency goals.

Ronelle Bester is the founder and account director at Red Ribbon Communications.

The big take-out: As well as being marketed as sustainable and beneficial to consumers, lower energy costs can be reinvested in marketing and innovation, allowing businesses to showcase their long-term sustainability goals as being intimately tied to profitability.