Earth Day 2022: Investing in Business Sustainability
The theme for Earth Day 2022 focuses on investing in our planet, serving as a reminder of the part that governments, business and consumers all play to contribute towards a more sustainable economy. Here is our round up of the hottest trending sustainability topics helping you to understand how to become a sustainable business.
Having a purpose and being sustainable is important, but communicating sustainability effectively is equally as necessary. Understanding how to connect and resonate with consumers and where to play and how to win in markets where the shift from traditional to sustainable purchases is occurring, is key to capitalising on these opportunities while contributing to sustainable development.
38% of industry professionals report that their company uses product claims to communicate sustainability.
Source: Euromonitor International Voice of the Industry: Sustainability Survey 2022
Global concern over water scarcity has been intensifying and will remain among the top ten environmental priorities in the next five years. Over 56% of professionals are reporting that their companies plan to invest in water-related initiatives between 2022 and 2027, compared to 39.3% of professionals in 2019, and over 44% of consumers are aiming to use less water to have a positive impact on the planet (Voice of the Consumers Lifestyles survey, 2021). The beauty and personal care industry is often listed among the top contributors to water use, water pollution and wastewater.
Understand what sustainability and Environmental, Social and Governance (ESG) mean for business. Find out how Euromonitor can help companies when deciding where to play and how to win, in terms of assessing ESG risks, seizing opportunities, informing communication strategies, rebalancing portfolios, understanding their consumers and mapping competitors’ strategies.
In 2021, one-third of global consumers actively reduced their emissions and one-quarter used carbon offsets to compensate for them. Eco-anxiety is forcing consumers to look for ways to control their carbon footprint. Predominately young and relatively affluent, climate-minded consumers are a force to be reckoned with this year.
66% of consumers try to have a positive impact on the planet with their everyday actions.
Source: Euromonitor International Voice of the Consumer: Lifestyles Survey 2022
As the global climate continues to warm up, political efforts mirrored in society have set forth a vision of a carbon neutral or net zero economy. On the level of individual companies, most large Western companies have stated their plans to achieve this at some point by 2050. In fact, annual sustainability reporting is mandatory for companies of public interest with more than 500 employees in the EU, and the requirements are set to become stricter from 2023 (with first reports published in 2024). China is also making gradual moves toward mandatory reporting of environmental, social and governance indicators for listed companies.
About half of all consumers are still hesitant to pay more for sustainable food products (Voice of the Industry: Sustainability Survey, 2022), however, according to the data from Euromonitor International’s Sustainable Living Claims Tracker, the number of products with sustainability claims in packaged food has been gradually increasing over the last three years. This comes despite a 15% price difference between such products and products without sustainable attributes. Low price still plays a significant role when choosing food and beverage products, although it is obvious that some consumers are starting to increasingly veer their spending towards products that have a positive impact on people and the planet.
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