How Climate Change and Resource Scarcity Influence Global Marketing

Authors: Burghi Vanni Maria Justina, Kleiser Paula Maria, Puceiro Olivera Catalina, Schlepers Michelle, Mario Navarro Piles

Part 1: Introduction and Understanding Climate Change Scarcity

Introduction

Besides the effects of the market economy upon resource utilization and environmental sustainability, climate change and resource scarcity are increasingly recognized as some of the most serious challenges businesses face today. These issues are generating tremendous changes in industries, transforming consumer behavior, and requiring new business approaches. As the world deals with the realities of climate change and resource declines, companies must now adapt their marketing strategies to ensure survival and stakeholder responsiveness in the face of these ecological challenges.

This paper explores the numerous ways climate change and resource scarcity interact with global marketing, compelling businesses to innovate and incorporate sustainability into their strategies.

A Look at Climate Change and Resource Scarcity

Climate change refers to abrupt shifts in global temperatures, weather conditions, and atmospheric patterns that occur over extended periods, primarily due to human activities such as fossil fuel combustion, deforestation, and industrial production. Various sectors that rely on environmental stability are affected by these factors, including extreme weather events, rising sea levels, and agricultural disruptions.

Resource scarcity, on the other hand, involves the diminishing availability of essential materials such as water, energy, and raw materials. The situation is exacerbated by increasing consumption, population growth, and environmental degradation. Climate change further impacts water cycles, agricultural productivity, and competition for dwindling resources, necessitating renewed business strategies, operational models, supply chains, and marketing approaches.

According to the Food and Agriculture Organization (FAO), climate change is affecting food security by altering agricultural production and water availability. As a result, food-related businesses must adopt climate-smart agricultural practices and rethink innovative techniques to ensure sustainable operations and reliable supply chains. To thrive in this business landscape, companies must shift toward sustainability-oriented practices to prosper in a resource-constrained world.

Part 2: The Influence of Climate Change on Global Marketing

Shifting Consumer Preferences

With increasing environmental awareness, consumers are demanding sustainable products and responsible business actions. Companies that fail to address these concerns risk losing market share to brands that prioritize sustainability.

Researchers at Harvard Business School (HBS) have found that consumers engaged in corporate social responsibility initiatives are more likely to adopt environmentally friendly practices that reduce their carbon footprints. Notably, younger generations, such as Millennials and Generation Z, place a high value on sustainability when choosing products.

Examples include Patagonia, a leader in sustainability within the textile industry, whose business strategy aligns with environmental preservation. Similarly, Unilever’s Sustainable Living brands focus on eco-friendly initiatives, proving that sustainability-driven strategies can be both profitable and innovative.

A study by the World Wide Fund for Nature (WWF) further confirms that consumers prefer brands that take proactive steps to combat climate change. As a result, companies are increasingly adopting sustainability measures in response to growing consumer demand.

Green Marketing & Organic Products

Green marketing involves promoting products based on their environmental benefits, such as sustainability and reduced waste production. The rise in electric vehicle sales indicates that consumers are becoming more climate-conscious. Tesla, for instance, has built a strong reputation for its sustainability-focused approach, positioning itself as a pioneer in the automotive sector.

Sustainability strategies extend beyond the clothing and automotive industries. In the food sector, brands like Impossible Foods and Beyond Meat cater to environmentally conscious consumers who seek alternatives to traditional meat products. These companies align with sustainability values by minimizing plastic usage and reducing pollution.

Moreover, major technology firms like Apple and Google invest in renewable energy to support their operations. Such strategies not only enhance corporate reputation but also attract environmentally conscious consumers committed to sustainable practices.

Part 3: Being Sustainable as a Competitive Advantage

The Business Case for Sustainability

Sustainability is no longer just a moral or legal obligation—it has become a pathway to corporate success. By integrating environmental responsibility into business strategies, companies can strengthen their brand reputation while improving operational efficiency. According to Harvard Business School, investing in sustainability helps attract investors, retain top talent, and maintain customer loyalty.

Unilever exemplifies this approach through its commitment to sustainable sourcing and carbon neutrality. By choosing ethical suppliers and reducing its environmental footprint, the company has positioned itself as a leader in sustainable business practices while maintaining profitability.

Other companies, such as Nike and Starbucks, incorporate sustainability into their corporate social responsibility initiatives. Starbucks’ Coffee and Farmer Equity (C.A.F.E) Practices program ensures the ethical sourcing of coffee beans, while Nike focuses on waste reduction and responsible labor practices.

Supply Chain Adaptation and Transparency

Resource scarcity and climate change make global supply chains more vulnerable, affecting product availability and pricing. Companies must therefore develop resilient supply chains that can withstand environmental disruptions. This can be achieved by diversifying suppliers, investing in sustainable logistics, and adopting innovative technologies to mitigate climate-related risks.

Additionally, transparency is crucial for gaining customer trust. By openly communicating sustainability efforts and supply chain challenges, brands can enhance credibility and customer loyalty. Fair Trade-certified companies, for example, provide consumers with clear insights into their sourcing practices, reinforcing ethical business values.

IKEA is a prime example of a company that successfully integrates sustainability into its supply chain. By incorporating renewable materials and optimizing logistics to reduce emissions, IKEA not only minimizes operational risks but also meets evolving consumer expectations for transparency and sustainability.

Part 4: The Impact of Resource Scarcity on Marketing Strategies

Ethical Marketing and Corporate Social Responsibility

In the markets of today, customers expect businesses to do more than just generate profit; they also demand a focus on sustainability and a positive contribution to society. This necessitates an emphasis on ethical marketing, which deliberately prioritizes transparency, fair trade, and sustainability to influence customer purchasing decisions.

Businesses that focus on sustainability and ethical sourcing benefit from greater brand loyalty, according to the International Organization of Employers (IOE). A notable example is Starbucks, which ensures and advertises the ethical sourcing of its coffee beans. Similarly, Nike has made significant progress in improving working conditions and reducing waste, thereby enhancing its ethical image among consumers.

Ethical Practices in the Beauty and Fashion Sector

The beauty and fashion industries have also embraced this trend in recent years. Companies such as L’Oréal and H&M have set high sustainability targets, utilizing recycled materials and offering products that are free from animal testing. These efforts help meet the growing demand for ethical production and position these brands as pioneers in sustainability.

Corporate Social Responsibility (CSR) Initiatives

Beyond branding, companies are actively engaging with communities through CSR initiatives. Examples include tree-planting programs, clean water projects, and carbon offsetting efforts. These initiatives not only benefit the environment but also increase consumer confidence by demonstrating corporate responsibility and a commitment to societal well-being.

Part 5: How Climate Change and Resource Scarcity Shape Business Strategy

Long-Term Strategic Planning

Incorporating sustainability into long-term strategic planning has become essential as climate change and resource scarcity pose increasing challenges. The Observatory International highlights that companies investing in sustainable product innovation and renewable energy solutions are better positioned for future market shifts and evolving consumer preferences.

Innovations in Technology and Food Industries

In the tech industry, companies are focusing on developing energy-efficient products and exploring alternative energy sources. Meanwhile, the food industry is concentrating on reducing agricultural emissions through sustainable farming methods. These strategies, when integrated into marketing, position brands as sustainability leaders and attract eco-conscious consumers.

Digital Marketing and Consumer Engagement

Businesses are leveraging digital marketing strategies to showcase their sustainability efforts. Through content marketing and social media, companies can effectively communicate their environmental responsibility and engage with customers on a deeper level. Certifications of sustainability and eco-labels further reinforce transparency and innovation, enhancing brand credibility.

Regulatory Compliance and Risk Management

With governments worldwide implementing stricter environmental policies, businesses must integrate sustainability into their strategic frameworks. Compliance is crucial, as failure to adhere to regulations can result in legal penalties and reputational damage. Thus, sustainability is not only a moral imperative but also a business necessity in today’s competitive landscape.

Conclusion

The impact of climate change and resource scarcity is significantly reshaping the global market, compelling companies to adopt sustainable strategies. By investing in CSR, green marketing, and product innovation, businesses can mitigate environmental risks while gaining a competitive advantage.

In a market where sustainability increasingly influences consumer decisions, businesses must integrate climate-conscious strategies to ensure long-term success. Companies that incorporate sustainability into their marketing plans can strengthen relationships with eco-conscious consumers, reduce operational risks, and drive long-term profitability. As climate change continues to affect global markets, businesses embracing sustainability will remain competitive and set new standards for ethical business practices.

References

• Kotler, P., Keller, K. L., Brady, M., Goodman, M., & Hansen, T. (2016). Marketing Management. Pearson Education Limited.
• TechTarget. (2025). How does climate change affect businesses? Financial impacts. Retrieved from https://www.techtarget.com/sustainability/feature
• Food and Agriculture Organization (FAO). (2025). Climate change and food security. Retrieved from https://openknowledge.fao.org
• Harvard Business School (HBS). (2025). Climate change and business strategy. Retrieved from https://online.hbs.edu/blog/post/climate-change-and-business-strategy
• International Organization of Employers (IOE). (2015). Climate change and its impact on business. Retrieved from https://www.ioe-emp.org
• Observatory International. (2025). How marketing is taking on climate change. Retrieved from https://www.observatoryinternational.com
• TechTarget. (2025). How does climate change affect businesses? Financial impacts. Retrieved from https://www.techtarget.com/sustainability/feature