A new survey by packaging leader
With a growing demand for higher transparency of companies' sustainability practices amongst a new generation of consumers, the survey also highlights how two thirds of
The Consumer Effect
The survey found that 61% of consumers expect the brands they buy from to have clear sustainability practices. While 65% of consumers say price is still a key factor in their purchasing decision, in the past six months more than half say they have purchased a product specifically because it had reusable or biodegradable packaging and 56% have paid more for a product or service that was sustainably sourced.
Commenting on the research,
'Pre-pandemic, consumers were increasingly demanding sustainable and ethically sourced products and recent research in the US suggests that Covid-19 has not reduced consumers' demand for sustainable products.'
The driving force of Conscious Consumerism is echoed by the survey: 63% of businesses stated that their organisational attitude towards sustainability is customer driven. However, half of organisations say that greater customer (and consumer) awareness of the effects of their sustainability practices would be most beneficial to their long-term impact.
The research also shows 69% of consumers struggle to identify whether brands practice sustainability.
'This suggests there is a knowledge gap between brands and consumers and indicates there is an onus on brands to better communicate what they are doing in the area of sustainability. In general, more education is necessary and if brands can get this right, it will hugely strengthen the brand/customer relationship,' said
Sustainability and financial benefits
Improved customer experience / satisfaction is the leading metric that
The research also showed that 82% of business executives treat sustainability as a long-term investment, rather than a cost. Crucially, this is changing the rules of financial reporting in nearly three-quarters of businesses. However, less than half of organisations have the ability to link sustainability to financial results.
'This will require a multi-stakeholder dialogue between industry, government, regulators and consumer representatives to ensure a collective approach is agreed to make the financial case for sustainability more accessible for business.
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'Over the past few decades we have been implementing projects that tick both the sustainability and financial return boxes like, for example, the major overhaul of our
Sustainability is here to stay
Growing social and environmental awareness is increasing pressure on businesses to play their role in reducing the impact of climate change and waste. The survey found that 72% of businesses see sustainability as a lasting trend.
Sustainability is also opening up growth opportunities for businesses; 83% of businesses described sustainability as a business opportunity to be exploited.
'Sustainability is a catalyst for growth, but businesses will need to strike a balance between sustainability practices and profitability if they are going to ensure long-term stakeholder buy-in. Those businesses that see the value of investing now for the long-term, will be positioned to win in the future,' concluded
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