There is overwhelming evidence that people around the world are concerned about climate,
environmental, and social issues, which are the core topics of sustainability. A study conducted by
Kantar in 2022 found that people in 19 nations, accounting for 68% of global GDP, were most
concerned about the economy, followed closely by climate and environmental issues, inflation, and
social issues.
Cynics point to the significant value-action or intention-action gap as evidence that this reported
concern is flimsy, and put all the responsibility for lack of progress on the public. We know that the
public is very willing to do its part but rejects this analysis and can’t tackle the issue alone. They can
see that this is getting personal, with implications for their health, living conditions, society and
prosperity. According to Kantar’s Global Issues Barometer, 71% of people agree with the statement,
“People like me need to do whatever we can to fight climate change“. And 61% see a connection
between climate change, pollution and our health.
Currently, sustainable choices come at a significant premium, which makes sense for early movers in
the sector but is not a feasible strategy for most brands. This pricing strategy is holding back the mass
market, which wants affordable and accessible sustainable options. Brands must look across their
portfolios and audiences to identify opportunities to serve these needs, examine their pricing
assumptions, and identify other benefits that enhance sustainability.
Bridging the value-action gap also means product and service design must account for current
behaviour or facilitate new behaviours, using behavioural science thinking to design for sustainable
outcomes. Brands must understand what motivates people to make sustainable choices and make it
easy and desirable for them to do so. This will narrow the value-action gap and make sustainable
choices more accessible and appealing.
This is a transformational moment for brands, as people expect them to address environmental
degradation, biodiversity loss, and climate change. Brands that fail to do so risk people turning away
in disbelief or suspecting them of greenwashing. But with the right insight, will, and action, brands can
meet this opportunity and create a more sustainable future.
What steps can brand owners take to make sustainability more accessible and affordable to
consumers?
- Evaluate pricing assumptions: Sustainability is often associated with luxury, with many
consumers believing eco-friendly products are more expensive. This perception can be a
barrier for many eco-minded consumers who are unable or unwilling to pay a premium.
Brands should re-evaluate their pricing assumptions to make sustainability more accessible to
a wider audience. Many are unable or unwilling to pay this kind of premium, especially now
when the cost of living is on everyone’s lips. People’s desire to buy sustainably is frustrated. If
businesses and brands do not enable people to make more sustainable choices, we will not
close the value-action gap.
- Think differently about how you price your offer: There will always be premium offers that
customers want to pay for. The luxury sector, for example, offers many examples of leading
sustainability behaviours. But if this is the only model of sustainable business, if everything
sustainable is priced as a kind of luxury, it will never become a mass market. As we have
seen, there is now a mass audience for these products and messages. While premium offers
will always exist, sustainable products should not be priced solely as luxury items. This
approach will limit the potential for the mass adoption of sustainable products. The Co-Op in the
UK, for example, decided not to price its plant-based range at a premium to meat and dairy.
Brands should think differently about how they price their offers to make them more
affordable.
- Reconsider cost models: Several studies suggest that many people are willing to pay a bit
more for sustainable goods, but not the exorbitant premiums often associated with eco-
friendly products. Brands should reconsider cost models that may be limiting the growth of a
market that will one day be the norm, incentives to win new customers.
- Expand audience appeal: Early movers targeted the greenest segment of consumers, but
interest in sustainability expands well beyond this group. Brands should broaden their appeal
to include Considerers and Believers, who are open to sustainability, with slightly different
drivers and mechanisms. Brands should communicate genuine sustainable features and
provide more accessible price points to appeal to a wider audience.
- Innovate with sustainability as standard: Sustainable innovation means designing with
sustainable principles built in from the outset. Brands need to move quickly, as increasing
regulation is setting the scene for further change. Retailers are also exerting increasing
pressure on suppliers to remove unsustainable elements from their brands. Brands should
innovate with sustainability as a standard practice, from the circularity of materials and
resources to the behaviour changes needed to encourage sustainable practices.
