Ivanov Consumer Confidence Tracker and ESG: recognizing issues and understanding their importance

The traditional Ivanov Consumer Confidence Tracker, released quarterly by SberCIB Investment Search, has for the first time included a cluster on ESG (Environmental, Social, and Governance).

The study showed that two-thirds of Ivanovs (68%) acknowledge the existence of both environmental and social issues, while a mere 12% of respondents believe that these issues are irrelevant to Russia. Consumers are most concerned by problems that directly affect their quality of life (air pollution, water conditions, and waste recycling), relegating climate change and biodiversity to second place.

In the social sphere, Ivanovs are most concerned by healthcare, social inequality, and unemployment. They find human rights, insufficient social support, and issues related to education to be of less importance.

According to 88% of Ivanovs, the state should participate in resolving environmental issues. In the opinion of 41% of respondents, the civilian population should deal with this issue, while another 35% believe that the business sector should handle it. A mere 12% of people surveyed believe that environmental issues should be resolved through joint efforts by the state, the people, and the business sector.

The majority of consumers (78%) are not prepared to pay more for eco-friendly goods and services. However, 26% are willing to avoid consuming goods that have a seriously adverse effect on the environment. One-sixth of respondents would find a five percent markup for eco-friendliness acceptable. Only six percent would agree with a higher markup.

On average, every seventh respondent personally volunteers in environmental or social projects or supports them financially. Thirty percent of respondents are prepared to finance similar projects or participate in them directly but are unaware whether any exist in their region.

Last year we adopted Sber's ESG strategy, which also covers the development and implementation of awareness-raising programs for our clients. And of course, we find it crucial to understand the level of Russian's knowledge in this area. The study showed that many Russian residents, while not acquainted with the acronym ESG, are concerned about environmental and social issues and prepared to participate in their resolution personally. We will be offering clients new ways to do so as early as 2021.

Alexander Vedyakhin

First Deputy Chairman of the Executive Board, Sberbank

The Ivanov Confidence Tracker is a consumer confidence index SberCIB Investment Research (previously Sberbank Investment Research) analysts have been releasing quarterly since 2013. It is one of the most recognized consumer indices in Russia and abroad, with many studies relying on its findings. Reflecting the current needs and expectations of the middle class - an average Russian called Ivanov with an average income - it takes into account the evolution of indicators such as consumer spending, savings, consumer behavior, and the level of consumer confidence in general.