Shoppers want brands to help them be greener
05/26/2021
Organisations that fail to bring greener products and services to market could see sales plummet over the next five years, according to a new study.
The research released by leading insurer Zurich UK and conducted by The Institute of Customer Service finds environmental sustainability is now the most important factor in the purchasing decisions of one in five (18%) UK consumers. In the next five years, the study predicts this could grow to over half of consumers (55%).
The increasing desire for greener products and services could already be impacting sales. One in 10 (12%) consumers say they’ve stopped buying a product or service due to its adverse environmental impact. Food, drink, beauty, cosmetics, clothing and cleaning products were found to be most likely to fall out of favour for not meeting environmental criteria.
The study goes on to reveal how consumers are looking to brands to help them live more sustainably. Three quarters (75%) of consumers expect organisations to enable them be greener, both when purchasing from an organisation, and also in the choices they make more generally. A large majority (83%) of consumers say organisations should be doing more to be environmentally sustainable.
The green agenda also extends to purchasing financial products, for instance almost one in four (23%) consumers regard sustainable practices to be of high importance in the insurance sector.
Richard Pash, Chief Marketing Office at Zurich UK said: “Climate change is perhaps the most complex risk facing society today. This research shows green is becoming increasingly mainstream and consumers want organisations to empower them to make more sustainable choices. They also want greater transparency. Sustainability goes much further than ad-hoc initiatives or gimmicks. Customers want to know how their green choices result in broader environmental benefit and be confident those they buy from are committed to sustainability right across their operations and supply chain.”
“At Zurich, we are encouraging and supporting our customers to become more sustainable and mitigate climate change related risk, but also undertaking our own journey to sustainable business practices. From our responsible investment approach to the reduction of our carbon footprint, sustainability lies at the very heart of everything we do.”
The research did reveal some barriers to purchasing greener products - namely quality and price. One in ten (11%) have wanted to buy an environmentally sustainable product or service but were not able to, with the main reasons being price, reliability and quality. But price is not an issue for all. A third (34%) of consumers are prepared to pay an average premium of 5.5% for environmentally sustainable goods.
Jo Causon, CEO, The Institute of Customer Service Institute comments: “Just like with the consumers themselves, there are some organisations who are early adopters and others who lag behind in their action. But I believe that now is the time for all businesses to take action. Those who serve their customers not only with quality and value but with sustainability built in will flourish; while those who ignore the issue are likely to lose customers and market share. The green agenda has moved from a nice-to-have to a core strategic issue.”
Zurich is committed to reducing its environmental impact and supporting the global transition to a low carbon economy. In 2019, it became the first insurer to sign up to the UN Global Compact Business Ambition Pledge that aims to limit average global temperature increases to 1.5°C. It is also working towards achieving 100% renewable energy across all global operations by 2022 and a net zero-emissions portfolio of investments by 2050. Zurich was recently ranked #1 in the insurance sector in the 2020 Dow Jones Sustainability Index and is currently sponsoring a targeted sustainable reforestation project to restore Brazil’s Atlantic Forest - planting one million carefully selected native trees in collaboration with non-profit Instituto Terra.
