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THE BETTER BUSINESS REPORT

2012

In 2012…

1004
CONSUMERS
GENDER

NATIONWIDE

ONLINE REPRESENTATIVE OF THE TOTAL POPULATION LOCATION

AGE

Globally, consumers are united in their concerns about sustainability & their desire to make a difference

I’m concerned about what I personally can do to help protect the environment

What I do to be sustainable at a personal & local level does make a real difference to the quality of life for future generations

79%
GUARDIAN UK: 2007 - 2009

80%
CB BETTER BUSINESS REPORT 2011/2012

We’re just as committed to making the right choices as the rest of developed world
How committed are you to living a green and sustainable lifestyle?
Not at all committed Totally committed

REJECTERS (1-4)

LOWER MIDDLE GREENS (5-6)

UPPER MIDDLE GREENS (7-8)

SUPER GREENS (9-10)

2011/2012 1

NZ

2011

15% 17%

40% 35%

38% 40%

7% 7%

2012

US 2010*2 18%

33%

33%

16%

1 Colmar Brunton Better Business Report 2011/2012 *2 Ogilvy & Mather, Mainstream Green Report 2011

Who’s the greenest of all?
FA M I L I E S &
EMPTY NESTERS
48% 37%

MID TO LOW

INCOMES
35 years of age

72% O v e r
ARE THE MAIN SHOPPER

Ethical shoppers across all categories 30-40%
M O R E L I K E LY T H A N AV E R A G E T O B E I N F L U E N C E D B Y S U S TA I N A B I L I T Y I N THEIR PURCHASE DECISIONS

59% 61%
ARE FEMALE

ALMOST
6
IN

10

A R E W I L L I N G TO PAY M O R E F O R T H E S U S TA I N A B L E C H O I C E

People are gradually making the lifestyle changes that are easy and save money, but those that cost more have not taken off
% all or most of the time
2011 / 2012

85
Recycling paper, plastic, glass & tin

86
Buying eco-friendly cleaning products

16

21
Using alternative transport eg. Cycling

13

13

50
Being more energy efficient at home

54
Growing your own veggies

24

26
Using public transport

8

8

41
Composting food and organics

42
Buying Fair Trade

5

8
Buying organic foods

3

3

32
Buying local vs. imported

38
Not using plastic bags

28

28
Paying to offset carbon on flights

2

3

How many consumers are making sustainable choices?
Last year

Are consumers willing to pay more for eco-friendly/sustainable products and services?
Middle East New Zealand

New Zealand

36% 22% 33%
Globally

88%

Australia

73%

US Shoppers Reject Green Premium
Last 6 months

Advertising Age, Sept 25 2012

Purchase behaviour is changing over time – albeit slowly
% of consumers whose purchasing is influenced by sustainability
To p 5 t h a t a r e g r o w i n g o v e r t i m e
73% 69% 67% ENERGY POWER 61% 56% FUEL COSMETICS/PERSONAL CARE FAST FOOD TECHNOLOGY AND COMMS 52% 50% 53% 52% 50% 47% 2009 2010 2011 2012 62% 58% 56% 54% 54% 52% 53% 52% 67%

CARS, HOME CARE/APPLIANCES, FOOD AND BEVERAGE, FOOD RETAILERS

STABLE or DECLINING over time

While people want to do the right thing, their choices are impacted by a variety of factors 73%
Mentioned at least one ‘green’ factor vs.

59% last year

% has an impact on the brands/products I buy
Quality 88% 81% Ta s t e / p e r f o r m a n c e

Price

94%

76%

Known/trusted brand

Organic

17% 59% 32% 42% Locally grown Earth friendly product

Earth friendly packaging

It’s a long line from the Arctic to the shopping cart

Proximity is also key – personal relevance is often a pre-requisite in capturing attention, persuading and motivating behaviour

Macro issues and good marketing can shift issues to be more personally relevant

There’s a lot to learn about making better choices and what to look for

88%
HOWEVER

Want to have all the facts about sustainability so they can make better, more informed decisions

15% 1 IN 3

feel well informed on issues relating to sustainability

feel businesses are giving them enough information about their social and environmental practices

I wish I had more information about what businesses are doing so I could factor it into my decisions. When they do something that is good for the earth they should let their customers know

Whether or not consumers live and buy sustainably, they expect brands and organisations to behave responsibly, ethically and sustainably

It’s important for companies to implement programmes to improve the environment

It’s important to work for a company that’s environmentally and socially responsible, and I won’t work for one that isn’t

83%
NIELSEN 2011 GLOBAL ENVIRONMENT & SUSTAINABILITY SURVEY

60%
CB BETTER BUSINESS REPORT 2012

For brands seeking to carve out a space around innovation and leadership, sustainability is a powerful signpost SMART EFFICIENT PROGRESSIVE I N S P I R AT I O N A L

58%

of Kiwis agree:

Only the most progressive and innovative businesses take sustainability seriously

Brands that persist with wasteful, irresponsible ways and inaccurate claims risk significant backlash
Consumers have a right to know where a food product comes from I get annoyed when products try to pass themselves off as Greener than they really are Healthier than they really are

97%
94%

96%

KEY

TAKE
OUTS

Start from the heart

1
Authentic sustainability is hardwired into the future planning of the business and across both internal and external touch points
Our planet and our future depends on sustainability. Now more than ever businesses should be getting involved as much as possible and factoring it into their business plans. Not just the parts they customers interact with but also the things they do internally such as running ‘green’ offices

Its not just about ensuring you have a minimal impact on the external environment – it’s also about efficiency and sustaining the business at a profit level that is acceptable and will ensure its longevity. It’s about future proofing your business and thinking about it in your future planning

The things that both customers and employees touch need to be sustainable so that through word of mouth this positive thing is shared

Tell your story

The issue of sustainability is important, and people want to know more about what

2

businesses are doing – share your journey and experiences, invite them in. Keep it simple, honest, transparent, and don’t greenwash or overstate your credentials

Businesses need to be more transparent about what they are doing to be sustainable

I’d like to know more about what they’re working on, where they’re heading and what they’re trying to achieve

Sustainability is critical to the future of mankind – we only have one planet after all

They should do more marketing to let us know what sustainable projects they are intending to work on

Be a leader

Sustainable businesses are successful businesses – innovative, clever, efficient and profitable, as well as minimising their footprint. Consumers are looking for leaders to show the way

3

Sustainability is becoming more and more important, not just for image but also for profit

For businesses that are leading the way in sustainability, this is a trend that others will soon follow

Businesses that are leaders in sustainable innovation show the way for others to follow their footsteps

Make it positive

A focus on positives and rewarding good behaviour is more motivating and appealing than highlighting the negatives – 70% of consumers say they have a better opinion of businesses that reward customers for choosing sustainable options with discounts or

4

special benefits
If a business is making the effort to be sustainable that changes the way you perceive them and makes you more inclined to be loyal to them

Find our what your target customers value, and then do it cheaper, easier, better. Add sustainability on top, and it’s a no brainer

5

79%

say they’re prepared to play their part and do the right t h i n g – a s l o n g a s i t ’s e a sy a n d d o e s n ’ t c o s t t h e m m o r e

WHO’S

DOING IT
BEST?

The “world’s 5” greenest brands according to Kiwis

2010

72%

NONE / DK

72%

2012
NONE / DK

2011

67%

NONE / DK

All good bananas
Grown 350% YOY May 2010 to May 2011 Market share from 0 to 4% = 1,000,000 bunches at a 33% premium The banana of choice for the animals of Auckland and Wellington Zoos Teachers in 17 schools and specialists for two medical clinics in El Guabo, Ecuador Winner of the 2011 carboNZero programme Sustainability Award

Electric rickshaws launched in Delhi

This is the video combined – its 2minutes and 30 seconds long –

Why on Earth wouldn’t you?

A study by Osmosis Investment Mgmt confirms that leaders in sustainability yield above average results in margins and shareholder returns
Bloomberg 24/9/12