Do Consumers Prefer Sustainable Businesses and Products?

A clear trend shows that customers and consumers favour environmentally conscious businesses, and companies that implement sustainable business practices benefit from increased consumer trust and sales growth.

Do Consumers Prefer Environmentally Conscious Businesses?

According to a survey by BusinessDasher, 92% of consumers trust brands that are socially responsible or environmentally friendly. They also reported that 55% of consumers are willing to pay more for eco-friendly brands.

This isn't the only report that supports this, Forbes also discovered that 88% of consumers are more likely to be loyal to a company that supports social and environmental causes.

These statistics clearly show that most consumers not only want to purchase environmentally friendly products and offerings but also understand the positive impact their choices can have on the environment. In most cases they are even willing to pay more for these products. By training your employees to understand and act on environmental concerns in your organisation, you’re building brand trust and loyalty with your customer base.

Why Are More Consumers Choosing Environmentally Conscious Businesses?

More consumers are choosing environmentally conscious businesses for several reasons:

• Increased media coverage: In recent decades, there has been an explosion in media coverage of environmental issues such as pollution and climate change. This has raised the public's awareness and concerns about the planet's future and how business activities might impact it.
• Direct Experiences: Consumers have directly lived experiences of environmental issues in the natural world and the impact of human activity on its condition. There are visible effects of pollution all around us, and economic pressures from food and fuel inflation are also felt. The general public is seeing fundamental changes in the weather patterns in rainfall, extremes in cold and heat in winter and summers, heightening their concerns for environmental issues.
• Government Advocacy: Government and policymakers have been advocating for environmental protection and sustainable practices, e.g. behaviour change for waste recycling by individuals in the community and businesses to reduce their greenhouse gas emissions as part of broader carbon pricing initiatives.
• Health and Quality of Life Concerns: There is a heightened understanding that environmental degradation issues such as pollution of water and air have the potential to harm people's lives and livelihoods and other living organisms that support these lives and ecosystems. As a result, consumers seek eco-friendly products and services from companies that emphasise conserving the natural environment and resources and preventing pollution and other forms of environmental damage.

Do Higher Product Prices Impact Consumer's Preferences for Environmental Offerings?

Availability of environmentally conscious products and offerings increases costs compared to non-sustainable products and offerings.

According to the Sustainability Trends Report 2023 commissioned by Alibaba Group, 76% of consumers expressed a desire to live sustainably. Other research suggests that 32% of consumers indicated they were more likely to purchase a sustainable product over a less sustainable and cheaper option.

Several factors drive consumers and customers to pay premiums for sustainable products and offerings. According to the Marketing Gazette, these driving factors include:

• If it is “Fairtrade”. (60%)
• Non-toxic or less toxic substances are used in production. (59%)
• Less waste or carbon being produced during the production process. (56%)
• If a tree is planted for each product bought. (55%)
• If it uses less energy and water in the production process. (55%)

Nonetheless, actual spending in real terms may be impacted by the cost pressures on companies and the rising costs of living for consumers worldwide, not necessarily because products are more sustainable.

How to Showcase Commitment to Sustainability

One of the primary ways to demonstrate your organisation's commitment to sustainability to consumers is by investing in quality environmental training for your employees.

The IEMA Foundation Certificate, below, is a fantastic starting point for any employee and helps build a foundational understanding of environmental issues and how to improve standards in your organisation. Upon completion of the course, learners will understand how to manage waste, reduce carbon emissions and communicate organisational sustainability initiatives to their co-workers to ensure compliance. You can find out more about the course syllabus and try out the online course via the button below.