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perceptions on sustainability
June 2010
Contents
Summary Page 2
Part I: Methodology 4
Summary
This paper deals with the impact of environmental and ethical considerations on consumer buying
behaviour, and is based on the survey responses of 766 members of the Guardian News and Media
consumer Brand Aid Panel.
Respondents indicated strong concerns about environmental and ethical issues. Over 80%
2
highlighted CO emissions, pollution and over-use of resources as key concerns, and human rights
was the strongest ethical concern. Over 80% indicated concerns over all of the elements in a typical
consumer goods supply chain, with the strongest focus on packaging, waste disposal, and
transportation.
Consumers do think about the environmental and ethical aspects of their purchase, although the
emphasis varies according to the type of purchase. Over 60% said they think about ethics when
purchasing clothing, and over 80% think about the environment when purchasing groceries or
transport.
However, environmental sustainability is only one factor in the decision to buy, with price, quality and
availability being more important; although 79% indicated that a company offering products and
services with low environmental impacts would be more likely to win their loyalty. Two out of every
three consumers consider ethical and environmental assurances to be important in developing
loyalty.
Price promotions and free trials are the most valued incentives for consumer loyalty at all income
levels, and matches the perception of it being expensive to ‘buy green’: over 80% of consumers feel
that they pay more in being environmentally friendly and ethical, and over 90% tend to assume that
the cheaper the product, the less environmentally friendly it is likely to be.
Nearly one third of respondents feel that the single most frustrating aspect of trying to be more
environmentally responsive is the lack of objective and trustworthy information to help them decide
which products or services have less environmental impact. Over-packaging, cost, and lack of
availability and choice were the next most common gripes. Customers want to be reassured that
there are good reasons for green products to be more expensive and that they are not just
contributing to inflated company profits.
Companies need to pay attention to price, quality, and availability in addition to environmental
sustainability. Focusing on one aspect at the expense of the others, even if that aspect is
sustainability, is not a route to success, even with a consumer community that is very environmentally
conscious.
A total of 766 consumers responded to the questionnaire, fairly evenly split between male (54%) and
female (46%). Respondents are representative of the total GNM panel. They tend to be well
educated, mature, and relatively affluent: 86% have college or university degrees, 54% are aged
between 35 and 54, and 62% have a gross household income of more than £40,000.
20,000-29,999
70,000-89,999
GBP
GBP
12%
13%
30,000-39,999
50,000-69,999 GBP
GBP 16%
22%
n=766 40,000-49,999
GBP
16%
86% indicated that they were the person primarily responsible for the daily purchase of goods.
Some differences emerged in responses from men and women, and from different age groups, but
overall there were few substantial variations across the different demographic groups. In particular,
neither income level nor primary responsibility for daily purchases seemed to affect responses. Those
respondents who declared that they were very interested in outdoor life (203 of the sample) do tend
to show more concern about environmental issues.
4
4.13 4.29 4.16 4.16
3.92 3.96 3.91
3
n=766
2
Over 80% indicated strong concerns over CO emissions, pollution and over-use of resources.
Women indicated more concern than men over some of the issues, particularly landfill. 80% of
women are very or somewhat concerned about landfill compared to 65% of men.
2
Older respondents in the 55-79 age group expressed stronger concerns about CO emissions,
pollution, and over-use of resources compared with the sample as a whole. For example, 63% are
very concerned about pollution compared with 48% of the total sample.
As might be expected, those who are very interested in the outdoor life also expressed more concern
2
about issues such as biodiversity, pollution, landfill and CO emissions. For example, 52% of outdoor
2
types are very concerned about CO emissions compared with 39% of the total.
4 4.4
4.14 4.09
3.63
3
0
Labour rights Human rights Occupational Fair trade
n=766 health & safety
On ethical issues, human rights attracted the highest average score of 4.4. The lowest average score
of 3.6 was for occupational health and safety, reflecting a higher percentage (28%) of consumers who
have no opinion either way. This may have been because the issue is less well publicised in the media
or that they have had limited experience of it themselves.
It is interesting to note that consumers in the older age group (55-79) expressed more concern over
occupational safety and health, with 36% being “very concerned” compared with 21% of the total
sample. It is likely that they have had more exposure to safety issues in the workplace over their
lifetime.
Women are more concerned than men about fair trade issues: 49% of women are very concerned,
compared with 27% of men, while 21% of men have no opinion on the issue. Older respondents are
also more concerned about fair trade, with 51% of those in the 55-79 age group indicating that they
are ‘very concerned’ compared with 37% of the total sample.
Respondents reinforced their commitment to environmental and ethical responsibility: over 80%
indicated that all of the elements are of some environmental concern to them, especially packaging,
waste disposal, and transportation. Over 50% indicated that packaging and waste disposal are “very
much a concern”. This finding is not surprising, given that these issues are the most visible to
consumers on a day-to-day basis.
2
Those who are very interested in an outdoor life focused more on water use, the amount of CO ,
transportation and packaging as key concerns. For example, 70% of this group noted that they are
2
very concerned about packaging and 57% are very concerned about the amount of CO ; while only
44% of the total sample said they are very concerned.
Water use
Amount of CO2
Waste disposal (end of life)
Transportation
Packaging
Manufacturing processes
Extraction of raw materials
It is notable that respondents with the highest household income levels (more than £90,000) are more
likely than the sample as a whole to think about the environmental impact when buying groceries
(91% vs. 81%) and utilities (75% vs. 64%), but these seem to be the only substantial variations linked
to income.
When buying clothing, more consumers consider the ethical than the environmental impact, and
when purchasing transport or household appliances, consumers focus more on the environmental
aspects. But these results tell us nothing about the effect of that consideration. 60% of consumers
might consider the ethics of buying a cheap t-shirt, but that does not mean that all of them will
instead choose one that costs twice as much but has fair trade assurances. Similarly, the fact that
over 80% of consumers consider environmental aspects in their transport purchases does not
translate into an 80% market share for electric cars.
60
50
40
30
20
10
0
Groceries Clothing Consumer Financial Transport Utilities Household
technology services appliances
The reason is that environmental sustainability is only one factor in the decision to buy: price, quality
and availability are more important. If electric cars are more expensive or less functional than their
diesel or petrol powered equivalents, then the decision to buy is less clear cut.
As the following chart shows, over twice as many consumers (68%) feel that quality is a very
important factor in their purchases compared with environmental sustainability (33%). Nevertheless,
over 80% of consumers do perceive environmental sustainability as an important, if not the only,
factor in their purchase process.
More women (42%) than men (24%) noted that environmental sustainability is very important in their
decision. 45% of respondents in the 55-79 age group indicated that environmental sustainability is
very important (compared to 33% for the sample as a whole). But more important to older consumers
is the question of availability: 67% feel it is ‘very important’ compared with 52% for the total. This is
likely to reflect a propensity to shop at convenient local stores.
Quality
Time pressure
Brand loyalty
Price
Environmental Sustainability
Availability
Most consumers said that companies that focus on reducing their environmental impact could be
more likely to win their loyalty. When asked the specific question, 79% said yes, 15% were not sure
and only 6% were negative. But loyalty does not automatically translate into purchase of products or
services. As seen in the chart above, brand loyalty in itself is not the most important factor in
decisions to buy. But increased loyalty does mean that consumers will be more likely to evaluate a
company’s product or service to determine if it meets the more important standards of quality, price
and environmental sustainability.
Yes
79%
n=766
Again, there are multiple factors in generating loyalty. Over 90% of consumers consider consistent
product quality to be important, but over two-thirds also attach significance to environmental and
ethical assurances.
80
70
60
50
% respondents
40
30
Yes
20
No
10 Don't know
0
Price Free trial Joint offers Frequent buyer Company
promotions products with other points for commitment to
environmental donations to donate
and ethical environmental percentage of
n=766 brands causes profits to
relevant causes
Note that 80% of women and only 58% of men feel that ethical assurances are important. 76% of
women and 58% of men feel that environmental assurances are important.
In the area of environmental sustainability, consumer expectations are high and current perceptions
are low.
70
60
50
40
30
20
10
0
y
s
y
ia
rt
il
g
rg
ls
alt
og
ta
in
ed
o
cia
e
o
sp
Re
ur
ol
He
En
lec
M
an
an
n
ct
ch
Te
fa
Fin
Tr
Te
u
an
M
n=766
High priority Low priority No opinion either way Not relevant to this industry
Expectations for the energy, manufacturing, and transport sectors are very high, with over 80% of
consumers indicating that these sectors should place a high priority on environmental sustainability.
Expectations are lower for the financial, health, media and telecommunications industries, but
nevertheless over 60% feel that environmental sustainability should have a high priority in these
sectors.
It is clear that business sectors are not living up to those expectations: the sectors with the highest
expectations seem to be those that are perceived to have least concern for environmental issues.
More than 70% think that energy, manufacturing, and transport sectors have little concern for the
environment. No-one indicated that they thought manufacturing or transport are very environmentally
friendly – perhaps because the evidence of pollution or use of scarce resources is more visible?
Financials
Telecoms
Media
Technology
Health
Retail
Transport
Manufacturing
Energy
n=766 0% 20% 40% 60% 80% 100%
In addition, there is a lack of trust in corporate leaders about their commitments and activities. Over
90% could not, or were not sure that they could, trust a company director to be accurate in
communicating their approach to climate change.
Yes
4%
Not sure
32%
No
64%
n=766
This finding reflects some of the concerns expressed in Section 6 about industry’s inability to
distinguish marketing hype from reality.
Not sure
49%
No
n=766 35%
Directors of corporate social responsibility should take note of these findings. Revelations about the
lack of consistency between corporate actions and corporate communications are very damaging to
consumer perceptions, and there is a reason that the term “greenwash” is gaining ground.
What factors would help to convince you that a company was treating environmental and
ethical issues as a high priority?
Consumer champions
Company communications
Environmental awards
Scientific endorsement
Packaging
Labelling
Advertising
n=766 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Nevertheless, companies can get their messages across through attention to packaging and more
informative labelling: 70% of consumers are very likely or somewhat likely to be convinced by
packaging and labelling that reflects a genuine concern for the environment. A focus on reducing
packaging and using recyclable packaging materials is critical.
Men are perhaps more sceptical than women: 19% of women would be very likely to be convinced
by labelling but only 7% of men. Over 80% of women would be very or somewhat likely to be
convinced by packaging compared with 62% of men.
These results are consistent with the responses to a more general question on the strongest
influencers in understanding environmental sustainability. Over 80% of consumers indicated that
news media and documentaries are very or somewhat influential, followed closely by environmental
organisations. Peer groups, family and government are the next strongest influencers, with over 50%
noting that they are very or somewhat influential.
Not surprisingly, more consumers (43%) with a strong interest in outdoor life indicated that
environmental organisations are “very influential” than the sample as a whole (29%).
For increasing market share of established environmental brands, price promotions and free trials are
the most valued incentives. This finding is consistent across all income levels and fits with concerns
expressed in Section 6 about the high price of buying green.
80
70
60
50
% respondents
40
30
Yes
20
No
10 Don't know
0
Price Free trial Joint offers Frequent buyer Company
promotions products with other points for commitment to
environmental donations to donate
and ethical environmental percentage of
n=766 brands causes profits to
relevant causes
Consumers perceive that environmentally responsible products are likely to be sold at higher prices,
and over 90% tend to assume that the cheaper the product, the less environmentally friendly it is
likely to be.
Yes
43%
Analysis of responses to an open ended question, on the single most frustrating aspect of trying to be
more environmentally responsive when purchasing, revealed that nearly one third believe there was a
severe lack of objective and trustworthy information to help them make decisions. In particular, they
do no trust companies to be objective in describing their offerings, and are frustrated in their attempts
250
200
Number of mentions
150
100
50
0
La ck of trusted & Too much pa cka ging Cos t Choice a nd/or Lower Other
objecti ve informa ti on a vai la bil ity qua lity/effectivenes s
on environmenta l
i mpa ct
Over-packaging (particularly linked to recycling issues), cost (linked to potentially lower quality) and
lack of availability and choice were the next most common gripes. There was some indication of
concern that paying more an environmentally friendly product or service does not necessarily mean it
is high quality, and that it could be less effective than a product that does not claim to be green.
Some of the comments revealed the extent of consumer concerns about the difficulty of trying to be
environmentally responsible and manage the trade-offs. Consumers vented their frustration on
corporate and product marketing:
“Some products and services are more environmentally responsible, others just have a
'greenwash' of PR and marketing to make them appear responsible... it's very difficult to tell
the difference”
“Really knowing what the impact of a product is - the company wants to sell its credentials so
is selective about focusing on the positives.”
Other consumers appear to have a genuine understanding of the complexity of the situation and are
seeking help:
“The complexity and apparent conflict. For example, we're told to buy locally produced food -
but this isn't always the most environmental approach.”
“Weighing up the relative importance of different aspects. eg organic milk in a carton versus
non-organic milk in a reusable bottle. Which is better? Many such dilemmas every day!”
“Lack of a single unifying measure of environmental impact. Something can be low carbon
but high water use. How do you weigh up the balance?”
On pricing, some consumers expressed concern about limited budgets; others were more concerned
that they get value for their money.
“That you invariably have to pay a higher price for green, eco-friendly brands. Makes the
whole thing just seem like another angle to rip off the consumer with.”
“Feeling that you are paying a premium for environmentally responsible goods. They appear
to be marketed and priced toward the upper end of the market.”
One consumer succeeded in summing up his frustration and the findings around buying behaviour
very succinctly:
“The apparent belief amongst the providers of said goods and services that a green or ethical
label can act as a substitute for quality and price. It can't. Price and quality always, always,
always come top. Green / ethics are a tie breaker.”
Increasing customer satisfaction means paying attention to price, quality and availability in addition to
environmental sustainability. Focusing on one aspect at the expense of the others, even if that aspect
is sustainability, is not a route to success, even with a very environmentally conscious consumer
community.
Communications around corporate environmental and ethical responsibility are significantly more
effective if driven through or endorsed by third parties. This puts the onus on a company to ensure
that its commitments stand up to scrutiny and that its actions support its assertions.
Companies need to build consumer trust in their ability to follow respond effectively to environmental
or ethical concerns. ‘Window dressing’ can ultimately be damaging to the reputation of a company.
The price of being green is a concern, but the underlying message is that consumers are looking for
value for their money. They want to be assured that there are good reasons for environmentally
responsible products to be more expensive and that they are not just contributing to inflated
company profits. There are opportunities to increase customer satisfaction through more open
communication and ensuring that the combination of price, quality, availability and environmental
sustainability provides appropriate value.
The lack of universal guidance and benchmarks for comparing the environmental impact of products
and services is the most frustrating aspect for consumers who are trying to be environmentally
responsible in their purchases. Perhaps there is an opportunity for the new government to provide
some leadership in this area?