Have we really become a nation of consumers whose buying habits are motivated by our own personal values? Are we now fully in the age of awareness when it comes to shopping for goods and services?
Many believe we are with a 2019 report citing that 75 per cent of us Brits have adopted ethical shopping practices. And recent reports suggest the Coronavirus has turned us into even more ethical customers than we were before.
The rise of the conscious consumer means that more and more of us are actively seeking out companies that align with own morals and values. But it hasn’t always been this way.
In 2010 when I was campaigning in my first UK general election climate change was hardly mentioned by voters. In fact, in the 2017 election net zero was not mentioned in any of the main political parties’ manifestos. Fast forward to the 2019 election and climate change was one of the most important issues raised by voters.
Companies realise there is value in sustainability
And you would be wrong if you thought that companies haven’t noticed this shift. In the last year or two some of the world’s leading companies have made strong commitments on climate change — including Amazon who have pledged to be net zero by 2040 and BP who have also set an ambitious target to be net zero by 2050. But it is not just the world’s largest corporations making a change many small businesses and start-ups know that there is value to be gained in providing eco-friendly services or products.
As important as this is, it is not just climate change where consumers are looking at companies to take the lead. Consumers are looking more and more to companies with strong commitments to minimising other environmental impacts, tackling human rights violations, companies that are taking the lead on fair and equal pay and equalities and companies who are willing to recognise and support their local communities.
However, it is not enough to just say you are doing these things, consumers want you to show how you are making a difference. And greenwashing — saying you are environmentally friendly but failing to stand up to scrutiny — risks your company’s reputation. Consumers are clever and they are increasingly able to spot greenwashing a mile away.
So, what does the future hold?
One of the key things that will determine whether consumers continue supporting ethical businesses is affordability. There is no getting away from the fact that buying eco-friendly, ethical goods and services costs more. Sometimes a lot more.
But there’s a reason why it costs more — adapting a business is costly and many businesses will inevitably pass on some of the costs to the consumer, hence why we see the higher prices. And until demand for eco-friendly goods reaches the same level other products the price will remain higher. Production costs will, however, inevitably fall when demand increases.
But that doesn’t mean it can’t or shouldn’t be done. It is true that making initial changes can have an impact on short term profits, but business leaders who do well in this area are those who have a long-term vision and are able to look ahead and identify the benefits that transforming their business will bring.
And with huge growth in the area of sustainability and environmentally aware businesses, those that fail to adapt could risk being left behind.
