How to be Perceived as a Sustainable Brand : Success Factors for Signaling Sustainability while Avoiding Greenwashing

Sammanfattning: Being perceived as a sustainable brand by customers is becoming increasingly more important for companies. This has resulted in that more companies are communicating what actions they take to be more sustainable. Companies also utilize symbol and labels to signal suitability on products and services. As a result of insufficient regulations for how sustainability may and may not be marketed, customers are presented with a high number of exaggerated and false sustainability claims. Therefore, customers find it difficult to orient themselves among all the sustainability information. Also, companies are struggling to stand out and convince customers that theirsustainability information is true. In addition, it is difficult to change existing customer attitudes, which makes it difficult for companies that want to change negative perceptions of sustainability. To make it easier for customers to orient among all information, the EU Commission has developed new directives concerning greenwashing. However, this has further complicated the marketing and communication of sustainability, both internally and towards consumers. This study has examined success factors for signaling sustainability to be perceived as a sustainable brand by customers, as well as how to avoid greenwashing. The study was conducted using multiple-case studies in three different industries with a total of five respondents. The industries were transport, food producing companies and food retailer. Furthermore, three experts in brand strategy were interviewed. The study shows that companies can take initiatives internally as well as develop external signals related to sustainability in order to increase their perceived level of sustainability among customers. Internally, is it important that the company has sustainability as a natural part of the brand. If sustainability is streamed through the entire organization, the customer will perceive that the company possess a high level of sustainability. Furthermore, companies need to define what sustainability entails internally and establish ambitions and goals. Knowledge about society's and consumers' views and definition of sustainability is beneficial when sustainability is to be marketed. Also, it is important to be transparent about how sustainable the company actually is. With regard to the external signals,  storytelling proved to have a major impact on consumers' perception of sustainability. Sustainability information that is transparent is more likely to be perceived as authentic and has a positive effect on consumers' perception of sustainability. A larger number of decimals in numerical sustainability information can be perceived as more credible among consumers who are familiar with a company and less so among those who are unfamiliar. The use of third-party symbols and climate compensation should be seen as a complement, as it has less of an impact on consumers' perception of a company's sustainability. By creating a uniform definition, ambitions and goals around sustainability and transparently communicating it to everyone within the company, the risk for greenwashing will be reduced. Furthermore, it is important that all marketing of sustainability is reviewed by experts, for example through close collaboration between the sustainability department and the marketing department.