Seizing the Opportunity in Sustainability

Delivery

This report comes in PPT.

Key findings

Sustainability post-COVID-19

Corporate sustainability has evolved from a pre-pandemic focus on the environment towards a heightened social interest that is expected to remain high. In 2022, more businesses are embracing Environmental, Social and Governance (ESG) factors when making business decisions to attract  investors and consumers, comply with legislation and gain competitive advantage.

Using claims to communicate sustainability

To meet growing consumer demand for sustainability, companies and retailers are growing their sustainable product portfolios and increasingly using sustainability claims to influence purchases. However, product claims are under increasing legal scrutiny, with authorities ramping up regulations to monitor vague or unsubstantiated claims to protect consumers from greenwashing.

Are sustainable products more expensive?

Consumers tend to look at both price and average star rating before purchasing products online. Tracking and monitoring products ratings and prices is key to understanding consumers and market dynamics. There is this idea that sustainable products are always more expensive, but it is not always the case. There is not necessarily a clear and direct correlation between product price and satisfaction.

Sustainability investments

Sustainability is here to stay as reflected by planned corporate investments across all areas, with sustainable products and recycling being top of mind for businesses. Climate investments are expected to move higher up in the agenda with increasing pressure from key stakeholders such as consumers, governments and competitors.

Connecting the dots to succeed

To be successful, businesses need to rebalance their portfolios with the right claims in the right markets at the right time. For that, it is key to connect the dots between ESG trends, consumer demand and market dynamics in product claims and price positioning.