Part 2: How Koru Helps Companies Respond to the ESG Demands
Sustainability has become an essential consideration for companies of all sizes, and for good reason. A recent McKinsey study found that products marketed as environmentally or socially friendly grew twice as fast as those that were not, across all price tiers. The same study also found that combining multiple sustainability claims on a product led to even greater growth. Companies that prioritize sustainability and communicate their efforts effectively stand to gain significant market share. Read our previous post summarizing the report here.
This is where Koru comes in. As a B2B software solution, Koru uses an AI-driven platform to connect companies to highly aligned strategic partners in the social sector. Our platform allows companies to invest and donate directly to hundreds of active philanthropic programs, social enterprises or research institutions around the world that align with their strategic business goals, supply chains, new geographic markets, and ESG missions.
Koru’s work aligns with the McKinsey report's findings on the importance of specific sustainability claims. The study found that less-common claims, such as "vegan" or "carbon zero," were associated with higher growth than more prevalent claims like "environmentally sustainable." This indicates that companies that work with Koru to identify and support impactful, specific initiatives have the potential to see even greater growth and differentiation in the market.
Another key finding of the McKinsey report was that both small and large brands saw growth in sustainability-related products, but medium-sized brands underperformed. Koru’s work with companies of all sizes can help address this by providing resources and guidance to help smaller brands grow and larger brands differentiate themselves.
Koru’s approach to sustainability is also in line with the McKinsey report's recommendation for companies to develop a product design process that embraces sustainability alongside cost engineering. By using a disciplined design-for-sustainability approach, Koru helps companies maximize the visibility, efficacy, and cost-efficiency of ESG-related product features that will resonate with consumers. They can help companies assess the materiality of specific sustainability metrics and build a balanced and diversified impact portfolio that aligns with their pre-established ESG work.
The McKinsey report also recommends that companies understand the ESG-related dynamics specific to each category and brand. Koru’s platform allows companies to invest in a range of different causes and initiatives, ensuring that their sustainability efforts are targeted and impactful.
Koru’s unique combination of AI-driven technology and a focus on specific sustainability metrics and initiatives make us a valuable partner for companies looking to differentiate themselves in the market through sustainability. Our work is in line with the recommendations of the McKinsey report and can help companies of all sizes make a meaningful impact while also driving growth and differentiation. By prioritizing sustainability and working together, companies can navigate an increasingly complex and competitive market while also creating positive social and environmental outcomes.
Curious to hear more? Let’s talk.
