HubSpot: Democratising Sustainability and Depoliticising ESG
For Yogesh Chauhan, Senior Director of Sustainability at HubSpot, sustainability is more than just a buzzword — it’s a dynamic intersection of consumer behaviour, innovative practices and global regulations.
In an interview with Sustainability Magazine, Yogesh spoke at length about how HubSpot navigates this complex terrain, positioning itself as a leader in helping small and medium-sized businesses (SMBs) embrace sustainability while aligning with market demands.
In essence, HubSpot is a one-stop digital shop for businesses looking to grow. It is an online platform that gives millions of users a sleek suite of tools for marketing, sales, customer service and content management, which, when used altogether, can deliver transformative results.
“At HubSpot, the foundation of our sustainability strategy revolves around understanding and measuring our carbon footprint, ensuring transparency, and delivering on both internal and public commitments,” Yogesh says.
The influence of consumer behaviour on sustainability
Understanding consumer behaviour isn’t just central to HubSpot’s business model — it’s central to its sustainability agenda.
As a company that prides itself on the consumer insights it can offer business owners, understanding the way customers interact with sustainability is paramount.
As HubSpot’s Senior Director of Sustainability, nobody knows this better than Yogesh, who suggests that businesses have to strike a delicate balance when trying to align consumer values without outpacing their readiness for change.
“A company like HubSpot can only change consumer behaviour to some extent. You can only be one or half a step ahead — 10 steps ahead and you lose everyone,” he says.
The most obvious way this notion manifests itself is through the cost of products.
Often, the most innovative and sustainable inventions come with a large price tag, especially when they are first brought to market.
“When it comes to purchasing decisions, most people still choose the cheaper product over the sustainable one,” he explains.
According to Yogesh, this challenge is pushing companies to find new ways to close the price gap between sustainable and non-sustainable products.
With that being said, a recent study by HubSpot found that these days, consumers are far more discerning when they shop. These are some of the headlines from the research:
Almost a third (32%) of consumers trust brands openly communicating their ESG practices
Zero-waste products/sustainable packaging (59%), ethical supply chains (58%) and reducing carbon emissions (58%) top the list of expectations consumers have of businesses
More than half (53%) of the surveyed consumers support fines for companies failing to meet ESG standards.
"Brands can't fake it anymore," Yogesh explains. "Consumers see through greenwashing and genuine ESG commitment is now a must for trust and business success."
Democratising sustainability for SMBs
Naturally, as a platform centred around growth, HubSpot's client base is predominantly comprised of SMBs. When it comes to the subject of corporate sustainability, this demographic presents a real cross section of challenges and opportunities.
It's important to say that delivering sustainable solutions to clients isn't HubSpot's northern star, but as a platform designed to help business owners navigate the pitfalls of the modern business landscape, it would be remiss if HubSpot invested no stock in sustainability.
In this era of stringent climate regulations, many SMBs struggle to adapt, whether that be in measuring carbon footprints or setting science-based targets. Thankfully, HubSpot has ways of simplifying these processes.
Brands can't fake it anymore. Consumers see through greenwashing, and genuine ESG commitment is now a must for trust and business success.
“There’s a real opportunity to democratise access to sustainability know-how and tools for SMBs,” says Yogesh.
"Generally, SMBs won't have a dedicated sustainability person. So how do they navigate around Scope 1, Scope 2 and Scope 3 emissions? How do they calculate it? How do they develop their GHG inventory? How do they set science-based targets?" he questions.
"It's daunting; all of these things are. If you're a small business that employs 10 people, that's going to be really hard work."
This is one of Yogesh's primary concerns in his role at HubSpot.
How to navigate the supply chain challenge
Of course, HubSpot's own ESG performance is also of vital importance to Yogesh and his team. And, as with many companies today, Scope 3 emissions are occupying a lot of the team's bandwidth.
“More than 90% of our emissions come from our supply chain, not our operational activities,” he explains.
But what can a company like HubSpot do to address this? Yogesh believes the solution is twofold.
On the procurement side, the company has started incorporating sustainability criteria into tendering processes.
“If a supplier wants to do business with us and the contract value is significant, we require them to show their sustainability roadmap and commitments to decarbonisation,” he explains.
However, HubSpot also recognises its role as an enabler rather than an enforcer when it comes to its customers.
“Our goal isn’t to exclude businesses without a sustainability roadmap, but to be a source of guidance and support for those looking to improve,” Yogesh says.
Generally, SMBs won't have a dedicated sustainability person. So how do they navigate around Scope 1, Scope 2 and Scope 3 emissions? How do they calculate it? How do they develop their GHG inventory? How do they set science-based targets? It's daunting; all of these things are. If you're a small business that employs 10 people, that's going to be really hard work.
Innovation as the driver of change
Naturally, as somebody who works with creative SMBs all the time, Yogesh believes in the power of innovation to address climate change, especially when coupled with positive, climate-focused regulation.
Reflecting on the disappointing breakdown of talks for a Global Plastics Treaty in early December 2024, Yogesh remains hopeful that innovation, rather than regulation alone, holds the key to meaningful change.
"For me, it’s all about innovation. Can we innovate a solution to plastic pollution, rather than relying solely on regulation? Biodegradable or dissolvable plastics seem like an interesting solution."
With that being said, the general sentiment is that businesses can only do so much; regulations have a large role to play in driving the price of sustainable products down.
Yogesh cites the energy sector as an example of how market forces and regulations can create sustainable defaults.
“In the UK, companies like Octopus Energy offer green energy at little or no extra cost. That’s the kind of progress that drives broader adoption,” he says.
Looking to the future
Although Yogesh also touches on broader sustainability trends, he expresses concern about the politicisation of environmental, social and governance (ESG) initiatives.
“One worrying trend is the way ESG has become a wedge issue in some circles.” he says.
Despite these trends, he remains optimistic about the future. “Sustainability is a win-win. Who doesn’t want to reduce business costs through efficiency or live in cleaner, quieter communities?”
HubSpot’s efforts reflect this optimism, with plans to expand its social impact programme and support budding entrepreneurs worldwide.
For Yogesh, the focus is clear: “How can we help small businesses navigate these complexities, win in the market, and grow sustainably?”
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