Sustainability versus recession: why environmental concerns have survived the recession
Before the recession wreaked havoc on the global economy, companies were investing heavily in green marketing initiatives and innovation.
But unsurprisingly the onset of the downturn saw some brands pull back to focus on core areas such as value and customer service.
While this seems a sensible strategy at first glance, there is a body of evidence suggesting that consumer interest in sustainability is still high and worth pursuing.
In March the Carbon Trust Standard published research showing that consumers still want to buy green despite the current economic climate. The study draws on a survey of 2,000 UK adults in late February 2009.
More than six out of 10 respondents said environmental concerns influenced their purchasing decisions ‘the same as a year ago’ with just over a quarter saying they influence them ‘even more’ than in 2008.
Two thirds (66%) of consumers said it was important to buy from environmentally responsible companies, with one in seven (14%) saying they have voted with their feet by deciding not to buy from a company based on their environmental reputation.
Harry Morrison, the general manager of the Carbon Trust Standard, says the study shows that ‘consumer values do not change, even in a middle of a recession’
‘They want companies to act and cut their carbon footprints, and provide transparent and accessible evidence of action. We believe companies that take real action will seize the dual benefits of immediate cost savings and a stronger reputation, which is good for business,’ he adds.
Research by WPP’s Landor Associates, Cohn & Wolfe and Penn, Schoen & Berland Associates supports this view.
The 2009 Green Brands report, which polled over 1,000 UK adults in June this year, found that 77% of consumers believed it was important that a company was environmentally friendly while over a third (37%) said they chose products on the basis it is environmentally conscious.
Geoff Beattie, head of Cohn & Wolfe’s Global Consultancy, says: ‘Despite the requirement for brands in 2009 to show ‘value’ above all else, there is still a strong consumer appetite for green products.’
Robert Nuttall, managing director of Green Mandate, worked at Marks & Spencer where he was one of the architects of its much-celebrated Plan A sustainability programme.
He says: ‘Consumers certainly don’t expect companies to drop their standards during the recession. Clearly consumers are focused on price but sustainability is still on the agenda.’
He cites the example of the continued growth of Fairtrade products.
‘I think the recession has had a polarising effect. There are leaders who have been working on this for some years and others who still see it as a cost, not an opportunity, and have pulled back,’ he adds.
Nuttall says that because of this trend many brands now have the ‘opportunity to become leaders in their sector’.
By Gemma Charles
