Taking sustainability action is good for business: First survey by Impala on the business case for implementing sustainable practices in the European independent music sector

25 July 2024 - Press release

 

IMPALA is releasing the results of a first qualitative survey in the independent music sector looking at the economic benefits of taking sustainability action. The business case provides an overview of the impact this work has on European independent music companies who have started sustainability work.

Labels who are active on sustainability also enhance their appeal to artists, fans, and employees. Their costs reduce and they are more innovative, as well as improving their brand and being ready to take advantage of tax breaks and comply with reporting obligations,

All interviewees initiated action because they see it as part of running a responsible business and at the same time noted positive differences in distinct areas:

· Making financial savings, reducing their impact, becoming more innovative, creative and forward-thinking
· Improving brand awareness publicly and being better positioned competitively to attract artists
· Better serving music fans who are more interested in sustainability than non-music fans
· Being better placed to recruit and retain top employees, and improving workplace culture
· Being seen as leaders in helping achieve a more sustainable music industry
· Influencing common industry standards, terminology and data provision
· Complying with reporting obligations (for very large businesses)
· Being ready for future reporting and reduction obligations as well as tax incentives which are expected to apply to all companies in the future
· “Future-proofing” their businesses, being more agile and financially resilient

Collaborating more with other stakeholders is seen as essential to secure sector-level change and a sustainable pathway for the music industry.
Find the full business case here.

The survey investigated economic benefits in the following categories:
1. Responding to audience preferences
2. Driving internal innovation
3. Making cost savings & efficiencies
4. Benefitting from supply chain improvements
5. Strengthening supply chain relations
6. Boosting competitive position, brand awareness
7. Ensuring compliance & financial resilience
8. Accessing grants, tax & other support measures
9. Attracting & retaining talent
10. Attracting artists

For most categories, IMPALA uses the conclusions of research projects carried out by different bodies (Harvard Business Review, PwC, Deloitte etc). This also includes specific music projects carried out by Music Declares Emergency, British Phonographic Industry (BPI), Secretly Group, Beggars Group, Involved Group, as well as Key Production. The Music Declares Emergency survey indicates that 82% of music fans place a higher priority on tackling the climate crisis, compared to 72% of non-music fans. Another important indication comes from Key Production’s survey, which shows that 71% of respondents aged 18-24 stated they are very/rather willing to pay a small premium fee for a physical product with a reduced environmental impact (50% across all age groups).

Horst Weidenmueller, chair of IMPALA’s sustainability task force and CEO of K7 Music commented: “As K7, now a certified B-corps, we’re proud to have sustainability as one of our core company values and have seen this translated with attracting and retaining top talent. It’s great to see consumers and suppliers moving in the same direction.”

Helen Smith, Executive Chair of IMPALA: “It’s interesting to see that companies who adopt sustainability practices are already seeing concrete advantages in other areas such as attracting artists, reducing costs, hiring and retaining employees, being seen as a leader, among other advantages. The question of futureproofing is also important as companies see sustainability as an opportunity before it becomes a burden, and this pays off almost immediately.”

IMPALA represents 6000 members in 33 countries, and we recognise there is no one-size-fits-all solution and different members find themselves in different stages of their sustainability journeys. We hope this study will inspire our members and other actors in the music industry.

This survey was conducted in spring 2024 through qualitative interviews with a selected group of IMPALA member labels from different territories, of varying sizes and in different stages of their sustainability journey. All members are part of our sustainability task force or wider membership. This survey does not look at businesses who have not yet started their sustainability work. For companies interested, please check out our programme here to get started.