Mon, 25 April 2022 | sustainabillity
Americans are seeing the progress being made in corporate sustainability, but are looking for companies to step up their efforts even more. At the same time, consumers have a broader definition of sustainability, with increasingly influential social factors driving sustainable purchasing decisions. This is according to a survey conducted by The Conference Board among 1923 American adults in collaboration with The Harris Poll.
Key messages are contained in two reports on consumer sustainability priorities and their vision for progress across sectors. For consumers, sustainability means not only climate and environmental protection, but also equity and corporate citizenship. “For today's consumers, sustainability increasingly means not only climate and environmental protection, but also equity and corporate citizenship,” said Denise Dahlhoff, senior fellow at The Conference Board. “Our research shows that these perceptions and attitudes vary across demographics, with younger and more urban consumers more receptive to sustainability messages.
It paints a rich and detailed picture of characteristics that may encourage more consumers to consider purchasing organic products in the future.” "Our study with The Conference Board confirms the unique sustainability inflection point we're seeing in American consumers," said Rob Jekylek. , CEO of The Harris Poll. "An organization's environmental impact is still important, but the treatment of employees and workforce is fast becoming the new cornerstone and reference point to show the organization's impact on sustainability today." The characteristics of sustainability affecting US consumers are changing, exploring what motivates consumers most to buy sustainable brands. Consumers are increasingly looking at sustainability in terms of 360-degree corporate citizenship.
Two years ago, sustainability was largely identified with respect for the environment. Today, fair prices and fair wages, along with environmental conservation, climate change and alternative energy, are among the top five consumer characteristics selected from the list of sustainability associations. Indeed, “fairness” in capital letters – fair prices, fair wages, fair working conditions – now tops the list of sustainability characteristics most likely to influence consumer choice for a sustainable brand. With this in mind, brands have an opportunity to better communicate employee well-being, which can lead to additional purchases and a greater willingness to pay more. Communications may include messages about workers' well-being and working conditions on product packaging and labels, as well as images and videos of workers to connect with people.
The response to certain characteristics of sustainability is highly dependent on consumer demographics. Opinions diverge most sharply with political prejudice, followed by civility level, age, and race. Other divisions, such as income and gender, are much less clear cut. Climate change is a prime example of a demographic divide. More than 70% of urban and Gen Z respondents say a brand's climate action will influence their shopping choices "a lot" or "a lot." The percentage drops to less than 45% among rural and boomer respondents. Conversely, the gap between men and women and high and low incomes is relatively smaller.
As in 2019, consumers continue to view government, technology and food companies as leaders in sustainability. What follows is a more eclectic list of homebuilders, automakers, restaurants, pharmaceutical companies, and appliance manufacturers. However, consumers believe that every sector, government sector and NGO can do more, even those that are already the best performers today. For example, while 48% believe utilities are having a positive impact, 73% believe they need to change to be sustainable. In short, no company can afford to rest on its laurels. Consumers may expect faster advancements in the future.
Collaboration with mergers or emerging initiatives, in addition, a willingness to cooperate with competitors for the common good can demonstrate a company's commitment to its stakeholders. Furthermore, alliances within and between sectors can lead to cost-effective solutions for the private sector. In addition, collaboration with government agencies can lead to more targeted policies, incentives and research, even on major social issues such as clean transportation.
Recognition of the impact of corporate sustainability has the potential to grow, especially among certain demographics. Older, rural, and white consumers are less likely to believe society is a positive influence, reflecting the demographic gap above. Even more surprisingly, women are also significantly less likely than men (38% versus 49%) to respond positively. These results indicate that companies can find suitable ways to expand and refine sustainability messages beyond the younger urban consumers who are already on board.
Source: The Conference Board