Sustainability: An Ongoing Journey

Even though consumers are more committed than ever to sustainable consumption, it can be difficult to make choices that have a lasting impact on the environment. As a result, we haven't seen the significant changes in consumer and business behaviour that were once expected.

Why is that?

Well, consumers want help living and consuming sustainably, and they think governments, retailers, and manufacturers are responsible for creating a more sustainable economy. However, some brands and retailers haven't always been trustworthy regarding sustainability, making it hard for consumers to trust them.

As the effects of climate change on businesses and economies become clearer, there is an urgent need for industries and companies to change the way they operate. Soon, it will be required, not voluntary, for large companies and organizations to implement validated sustainability initiatives through mandated governance. These requirements will become stricter, and regulators are showing that they will enforce compliance.

This shift is also being driven by the financial impact of extreme weather events and climate realities on company balance sheets. Rising energy costs, crop failures, and supply chain disruptions are forcing companies to either adapt their current business models or face increased costs and uncertainty.

Over the next five years, we can expect to see significant changes as businesses adapt to these new demands and realities. Meeting the expectations of both governments and consumers will require genuine action in a highly scrutinized environment.

According to a survey, 40% of consumers believe that their government should be the main driving force behind sustainability efforts in their country. Additionally, 74% of respondents think that governments should increase regulations to push businesses to adopt more sustainable practices and meet climate goals more efficiently.

The Farm

Responsible sourcing is one of the most important sustainability concerns for 45% of consumers. Additionally, 24% of consumers want brands to use more sustainably produced ingredients (e.g., lab-grown or sustainably fed animal products), and 31% of consumers fully trust farmers to be sustainable. Farmers are the second most trusted group out of any party.

The Factory

47% of consumers are very likely to choose a brand that offers both personal health benefits and environmental benefits. 46% of consumers want brands to offer sustainable products at a similar price point, and 45% want labels that clearly explain sustainable claims or recycling information. However, quality and effectiveness are also important, as one-third of consumers are unlikely to purchase from a sustainable brand if the quality is not as good as non-sustainable alternatives. 35% of consumers believe that it would be easier to be sustainable if brands used locally sourced products with a lower carbon footprint in production. Additionally, 77% of consumers would stop buying from a company that has been found guilty of greenwashing, emphasizing the importance of trust and transparency in both communications and the supply chain.

The Retailer

As the world continues to grapple with the effects of climate change, more and more consumers are becoming aware of the importance of sustainability. In fact, a recent survey found that 35% of consumers believe that sustainability has become even more important to them due to the increased cost of products and services resulting from extreme weather events.

However, the cost of sustainable options remains a major barrier for many consumers. 41% of respondents cited cost as the biggest hurdle to adopting more sustainable practices, while 26% said they had difficulty finding sustainable options on store shelves.

Despite these challenges, a significant number of consumers are still willing to make an effort to be more sustainable. 44% said they were very likely to choose a particular retailer if they were incentivized to recycle or reduce waste, and 39% said they were very likely to choose a retailer with a wide selection of sustainable options.

In addition to these efforts, many consumers also want retailers to help them be more sustainable by reducing plastic packaging or using more compostable materials. 45% of respondents said this was important to them, while 40% said they wanted a larger selection of affordable sustainable options.

It's clear that sustainability is becoming increasingly important to consumers, and retailers that are able to offer sustainable options and make it easier for consumers to make more environmentally friendly choices will likely be the ones that succeed in the long run.

The Home

30% of consumers believe that sustainability has become more important to them because they have personally experienced the impacts of climate events. Additionally, 33% feel that living sustainably is a top priority in their lives and try to incorporate it into their daily actions. Almost all consumers (95%) try to take some action to live sustainably. These actions include bringing their own shopping bags (49%), only buying what they need to avoid waste (47%), separating garbage and recycling (45%), and minimizing electricity usage (45%).

The Future

As concerns about the environment continue to grow, we can expect to see companies taking more rapid action to meet rising expectations for sustainability in the next five years. This will likely involve increased reporting and transparency about their environmental impact, as well as efforts to reduce their carbon footprint.

At the same time, these companies will also be facing unprecedented challenges to their current business models due to the financial and customer-related impacts of extreme weather events. Consumers are becoming increasingly demanding when it comes to sustainability, and they will be looking for greater transparency and progress from companies in this area.

Overall, it's clear that sustainability will be a key focus for both companies and consumers in the coming years. As the impacts of climate change continue to be felt around the world, there will be increasing pressure on businesses to reduce their environmental impact and offer more sustainable products and services. In response, we can expect to see companies ramping up their efforts to meet these rising expectations.