Sustainable Branding and Profitability: A Financial Analysis of Green Marketing Practices

Abstract

Sustainability has become a key concern in modern business strategy and consumer behavior, driven by issues such 
as environmental degradation, climate change, and resource scarcity. As a result, businesses are increasingly expected 
to pursue not only profit but also environmental and social responsibility.  Green marketing has emerged as a strategic 
response, promoting products and services based on environmental benefits. It includes practices like sustainable 
packaging, ethical sourcing, and carbon reduction (Ottman, 2011). Once niche, it is now a mainstream approach that 
helps companies differentiate themselves and enhance brand reputation. Financially, green marketing offers both 
opportunities and challenges. It can boost long-term profitability by attracting value-driven consumers—especially 
Millennials and Gen Z—who are willing to pay more for sustainable products (Nielsen, 2018). It also improves access 
to ESG-focused investments as capital markets increasingly reward firms with strong sustainability practices 
(Deloitte, 2023). However, implementing green marketing can be costly, requiring investment in eco-friendly materials 
and compliance with certifications. There is also a risk of greenwashing, where exaggerated environmental claims 
can lead to consumer backlash and regulatory penalties (TerraChoice, 2010).