The new green way to grow brand loyalty

Brands face huge challenges to prove their sustainability credentials, but technologies like blockchain can make green initiatives measurable by rewarding changes in customer behaviour, says Sunny Lu, former Louis Vuitton CIO and founder of VeBetter.

Following years of work by governments and corporations to get the public’s buy-in on sustainability, data shows that the efforts are starting to have an effect, but only when the claims are made from trusted sources.

A study conducted by PWC found that consumers will pay up to 9.7% more for sustainable products even as the cost of living and inflation rise. However, the European Commission found nearly half of sustainability claims were potentially false or deceptive, so more proof is needed for consumers to purchase sustainable products confidently.

The recent launch of McDonald’s reusable cups with digital perks highlights one of the biggest challenges faced by corporate sustainability efforts — the rift between good intentions and measurable impact. Sure, the endeavor marks a positive step toward addressing the 500 billion disposable cups discarded annually, but these types of initiatives typically stop at distribution and do nothing to address the push to encourage reuse.

Despite their best intentions, sustainability programs that fail to deliver measurable environmental impact or behavioral change without systems to track, verify, and incentivise ongoing reuse tend to fall short of their planned goals. This was highlighted in a report from KPMB, which found that over half of consumers are ready to boycott brands engaging in greenwashing — underscoring that consumers not only value sustainability but also expect transparency and meaningful results for their investment.

Governments have also become wise to the deception, with new regulations like the UK Financial Conduct Authority’s anti-greenwashing rule enshrining into law that making unsubstantiated environmental claims won’t just damage consumer trust — it could bring legal consequences.

The conversation has now advanced beyond simple moral grounds, and the consumer shift towards sustainability means companies that embrace the change have a competitive advantage in a market increasingly defined by eco-conscious consumers and unforgiving regulators.

Being genuinely sustainable helps brands foster trust in an era where scepticism runs high; glossy green logos or vague promises no longer sway consumers. Instead, they reward transparency and tangible impact with loyalty and a willingness to pay more.

This also presents a clear opportunity for companies that offer viable solutions. With only a quarter of surveyed respondents reporting that they trust product messaging assertions as being “natural,” they are no longer satisfied with empty promises about “going green” or simple initiatives like distributing reusable products. They want verification that their sustainable choices actually make a difference.

Part of the issue lies in underestimating the amount of consumer interest. While research shows only 16% of consumers currently prioritise sustainability in purchases, a much larger segment would make sustainable choices if products delivered clear, tangible benefits: the overwhelming majority of consumers would like more information on how companies are making their products better for the environment. The missing piece isn’t motivation — it’s measurement and rewards.

That is where blockchain technology can make a meaningful difference.

Historically, measuring environmental impact has been prohibitively expensive. Traditional certification and verification processes require significant investment in third-party audits, consultants, and ongoing compliance monitoring. This results in a sustainability gap, where it becomes economically unfeasible to track and reward individual contributions to sustainability. Environmentally sound decisions will only gain traction when sustainability initiatives become sound business decisions.

Thanks to technological developments, this equation is starting to change. Through innovations in digital verification, advances in blockchain, near-field communication (NFC), and digital tracking systems, we can now validate environmental impacts at scale and transform how we measure and reward sustainable behavior. The first step in successfully sustainable initiatives is businesses being able to prove their impact on consumers.

Blockchain technology is aiding in these efforts by providing an immutable, transparent, and verifiable ledger that ensures the accuracy of sustainability claims.

During Mugshot’s recent trials for smart reusable cups that automatically log each use through embedded technology, in just five weeks, 2,000 participants logged 120,000 reuses, saving 400 kg of plastic and 4.5 tons of CO2 emissions. The key to this successful proof of concept was the combination of reusable cups as part of a system that tracked and rewarded each sustainable choice.

This highlights the psychology of sustainable behavior. Studies show that incentives can be an effective way to motivate people to make more sustainable choices, especially when combined with impact measurement. Just as gaming and social media platforms have mastered the art of engagement and behavioral incentives beyond pure financial rewards, sustainability programs can leverage blockchain technology to implement achievement systems, social recognition, and targeted benefits to drive engagement.

Helping markets understand value beyond traditional financial metrics to incorporate environmental and social impact requires new standards, mechanisms, and metrics that account for sustainable actions alongside profits. Standardized ways to record this are necessary, along with metrics that capture not just environmental impact but also social value creation. The future of climate action requires us to empower millions of people to make better daily choices.

Leveraging technology to make sustainability both personally rewarding and globally impactful is the optimal path forward for forward-thinking brands to build lasting trust and leadership in an increasingly eco-conscious market.

About the Author

Sunny Lu, founder and CEO of VeChain since 2015, brings enterprise IT leadership to blockchain technology. His time as CIO of Louis Vuitton China and earlier roles as CTO at Fortune 500 companies shaped VeChain’s focus on practical business applications. Under his direction, VeChain has partnered with Boston Consulting Group and global enterprises to implement blockchain solutions across industries. Through VeBetterDAO, Sunny now drives Web3 adoption and tokenization initiatives, applying his nearly 20 years of experience in technology strategy and business operations to expand blockchain’s real-world impact.

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