Sustainability and the consumer | FT Moral Money

Summary

This video highlights the importance of new technologies, regulation, and behavioral change in achieving sustainable development goals. A global study of 23,000 consumers across 11 countries revealed that sustainability concerns are widespread, not limited by age or geography. While misinformation often hinders sustainable choices, the research shows that consumers are ready to embrace change, particularly in emerging markets. The video outlines four strategies for businesses: integrating consumer behavior into long-term plans, segmenting consumer bases, testing marketing approaches, and influencing regulations. It emphasizes the need for action to reshape business and government engagement with sustainability.

Takeaways

• 😀 Sustainability requires new technologies, regulation, and behavioral changes to meet global goals.
• 😀 Many executives consider consumer behavior fixed, but research shows it's actionable and can be influenced.
• 😀 50% of consumers prioritize sustainability when shopping, but misconceptions often lead to unsustainable choices.
• 😀 A global study found that 79% of consumers in emerging markets like China, India, and Indonesia care about sustainability.
• 😀 Sustainability concerns span generations, with some older consumers in countries like India, Japan, and France being more concerned than younger ones.
• 😀 The belief that sustainability is mainly a concern of younger, developed-market consumers is a misconception.
• 😀 Companies must segment consumers more effectively, focusing on those willing to pay for sustainable products.
• 😀 Testing and learning with modern marketing tools is essential to adapt messaging and product offerings for various consumer segments.
• 😀 Companies can influence regulations, which in turn can accelerate sustainable behavior change among consumers.
• 😀 Consumer willingness to change behavior is higher than often perceived by executives, and most consumers change faster than expected.
• 😀 The study urges businesses and governments to take action now, as consumers are ready for change and need the right support.

Q & A

What are the three key factors that are needed to meet the Sustainable Development Goals (SDGs)?

The three key factors needed to meet the SDGs are new technologies, regulation, and changes in consumer behaviors.

Why are consumer behaviors often considered unactionable by executives, and how is this misconception addressed in the research?

Executives often consider consumer behaviors as fixed and unactionable. However, the research shows that consumer behavior is highly actionable and that consumers are actively seeking guidance from companies to make more sustainable choices.

What was the global sustainability study's methodology, and what insights did it uncover?

The global sustainability study surveyed 23,000 people across 11 countries, followed by in-depth interviews and interactive shopping missions to observe consumer behaviors. It uncovered that consumers desire to shop sustainably but are often misinformed, leading to suboptimal choices.

What myths about sustainability and consumer behavior were debunked in the research?

The research debunked the myth that consumers who care about sustainability are primarily in developed markets, are young, or are left-leaning. In reality, sustainability concerns are widespread across generations and regions, including emerging markets like China, India, and Indonesia.

How do sustainability concerns vary between developed and emerging markets?

The study found that 79% of consumers in emerging markets like China, India, and Indonesia are highly concerned about sustainability, compared to 55% in developed markets.

What surprising finding did the research reveal about generational attitudes towards sustainability?

The research found that sustainability concerns span generations, with some countries like India, Japan, and France showing that older generations care more about sustainability than younger generations.

What recommendations were made for companies and executives to better address sustainability concerns?

Executives should: 1) Include consumer behavior change as a variable in long-term strategies, 2) Segment their consumer base more effectively, and 3) Use modern marketing tools to test and refine sustainability messaging. Additionally, they should recognize their indirect influence on regulation and how it can drive consumer behavior changes.

What does the research suggest about the speed at which consumers can change their behaviors?

The research suggests that most consumers can change their behaviors much faster than executives typically expect, especially when given proper guidance and support.

How should businesses and governments engage with consumers to accelerate sustainability efforts?

Businesses and governments should focus on understanding the motivations behind consumer behaviors, addressing the barriers they face, and acting now to reshape the way they engage with consumers in order to accelerate sustainability efforts.

What is the significance of regulation in promoting sustainable behaviors among consumers?

Regulation helps accelerate the right behavioral changes among consumers. While businesses have an indirect influence on regulation, it plays a critical role in shaping and encouraging sustainable consumer behavior.