Rising Cost of Living to Hinder Sustainability Practices

A global study by marketing research company Kantar says that the rising cost of living means sustainability is becoming a privilege accessible to high-income consumers only.

The Sustainability Index 2022 is a benchmark study of consumer attitudes and behaviors in the field of sustainability. The report, based on 33,000 interviews conducted globally and structured according to the Sustainable Development Goals (SDG) of the UN, captures the following conclusions:

• 65% of consumers want to do more in terms of caring for the planet and the environment, but they cannot afford it because of the rising cost of living.
• In addition to financial affordability, lack of information about sustainable alternatives is one of the main barriers to a sustainable lifestyle
• Globally, consumers have identified water pollution and child labor as the main issues that companies should be concerned about .
• Excess packaging, waste and carbon footprint are the issues most strongly associated with companies in various categories.
• Globally, 29% of consumers are “active”, meaning they are willing to invest more time and effort to reduce their impact on the planet.
• The main actions people are willing to take in order to solve the waste problem are: reduce food waste, opt for recyclable shopping bags, reduce household energy consumption and recycle.
• 47% of consumers and 87% of “actives” chose not to purchase a product or service because of its negative impact on the environment or society.

Impact of rising cost of living

Even though 97% of people want and are willing to do something to lead a more sustainable life, the main barrier at the moment is the prices. 68% of consumers believe that products that are better for the environment or that take society’s problems into account are more expensive. 65% want to do more to reduce their negative impact on the environment and the planet, but can’t because of the rising cost of living. The increase in the cost of living has the greatest negative impact on sustainable behaviors for residents of the Americas (70%).

Only one in three consumers (35%) who struggle to afford the cost of living are actively looking for companies or brands that offer ways to reduce their negative impact on the environment, compared to 53% of those who have a financially comfortable life. After price, the second most important barrier to a sustainable lifestyle is the lack of information about viable alternatives. 57% of consumers feel that it is too difficult to distinguish which products are “good” or “bad” from an ethical or environmental point of view.

The largest proportion of “active” buyers is in Europe. They are more inclined to believe that personal choices have a real positive impact on sustainability, but also that they are personally affected by environmental or social issues.

Brands should prioritize efforts to reduce waste and lower their carbon footprint

This study aims to help brands develop strategies to address consumer concerns about sustainability. Consumers identify different environmental or social problems by industry and expect companies to try to fix these problems. 

Waste disposal is top of mind for consumers when it comes to corporate responsibility. Consumers expect companies in 24 of the 38 fields investigated to address issues such as: excess packaging, use of non-recyclable packaging, packaging ending up in landfill, overconsumption and waste. Consumers see waste and the circular economy as key themes for most industries, including sectors such as food, beverage, retail, home and garden, IT&C, travel, luxury, furniture, fashion, personal care and others.

Reducing the carbon footprint and greenhouse gas emissions is the second most important priority for consumers. According to them, 15 out of 38 industries are strongly associated with a carbon footprint that contributes to global warming, including companies operating in industries such as tourism, electronics, automobiles, luxury goods, oil and gas, entertainment, telecom and others.

Karine Trinquetel, Sustainability Expert and Director of the Global Sustainable Transformation Department at Kantar, says of the report’s findings: “Despite these crises around us globally, the desire to live a more sustainable lifestyle has not eroded. Beyond prices, brands need to realize that those who buy their products have a more complex perspective on what companies should focus on depending on the sector in which they operate, and accordingly develop sustainability strategies that respond to these issues.”