The Case for Authentic Sustainability Action

Shaun Rees, Chief Product & Marketing Officer

In a sea of reports about consumer sentiment, the Kantar Better Futures report stands out. It goes beyond surface-level trends, delving deep into the values and priorities that shape how Kiwis feel about the future. For any business serious about embedding authentic sustainability into their operations, it’s essential reading.

The 2025 report published early April highlights how New Zealand's economic pressures are converging with social and environmental trends. The cost of living continues to dominate public discourse and holds steady as the main issue of concern for Kiwis. But anxiety is mounting over other social issues, including access to quality healthcare and the growing influence of social media.

Amid so many competing pressures, a clear trend is emerging; while consumers are still committed to environmental and social impact, they have fewer options and less freedom to make sustainable choices in their own lives, so they’re placing greater expectations on businesses to bridge the gap. But this comes at a time when some businesses globally appear to be stepping back from their environmental and social commitments. As business leaders, how do we reconcile this?

Begin by recognising good intentions around sustainability can backfire if your business oversteps its capabilities or underdelivers on its promises. Consumers – especially younger audiences – can spot inauthentic or performative ESG efforts a mile away. And with the climate reporting regime in full swing, overstating environmental efforts is not only a reputation risk, but a serious regulatory concern too.

With the sustainability stakes so high, it’s easy to see why many brands are choosing to play it safe. But giving up on sustainability isn’t an option if you’re being real about putting customers at the heart of your business. In fact, it can still be a competitive differentiator.

Integrating sustainability into core operations is still the right game plan – but it must be done in a way that is authentic to your brand and category. With social issues ranking so high on the list of things Kiwis care about, reviewing how your business is tackling the ‘S’ in ESG could be a golden opportunity to keep the momentum going.

It’s not about doing more than you can or wading into a social cause that you know nothing about; it’s about doing what you can, authentically and effectively, to create impact.

At AA Insurance, our materiality assessments told us that showing up strong for customers in their communities after a major event is one of the most important things we can do.

So, working with the Student Volunteer Army (SVA), we’ve helped them build stronger volunteer networks in schools and universities across New Zealand, improving their readiness to deploy support into our communities if (and when) disaster strikes.

In turn, we’ve tapped into SVA’s volunteering expertise to reshape our employee volunteer programme which led to a surge in people taking their paid volunteering day – increasing our total hours in the community by 150% in under a year.

The pressure on businesses to realign their sustainability commitments against today’s rocky landscape is mounting, but the path forward is clear: with authenticity, alignment with core strategy and values, and crisp communication, you can’t go wrong.

Companies that can balance the complexities of consumer expectations with their own capabilities will be well positioned to thrive in a future where social and environmental responsibility stakes are higher than ever.