Consumers voting with their wallets on sustainability

The role and responsibilities of retailers in society is increasing in importance when it comes to sustainability. 

A new global report by KPMG has found that almost two thirds of environmentally conscious consumers are willing to pay more for sustainable products.

The Me, my life, my wallet report observed how to best serve the sustainability conscious consumer, and found that globally, 64 per cent of consumers want to be able to understand the environmental impact before making a purchase. Meanwhile, 38 per cent are actively seeking companies that are proactively enacting a sustainable agenda.

According to the research, retailers that do not meet these criteria for caring for society and the planet are being cast aside, while those that do are reaping the financial benefits.

Lisa Bora, KPMG Australia’s Head of Retail, said that consumers are increasingly voting with their wallets and leaving behind retailers that they perceive as being behind the times on ESG issues.

“The traditional gap between saying and doing – what we call the intent versus action gap – looks to be lessening. Nearly two-thirds of consumers who were actively concerned about environmental impact say they are prepared to pay more to ensure they were buying sustainably.”

As such, the impact of this means retailers need to act sustainably on everything from the procurement and sourcing of goods, through to the supply chain, partnerships, and packaging. 

“They need to ‘do good’ for the environment, but not position that sustainability focus as a premium cost to consumers. Above all, being transparent matters, and a clear roadmap to net zero emissions is central to market expectations and ensuring no greenwashing,” says Bora.

To stay up to date on the latest industry headlines, sign up to the C&I e-newsletter.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top