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Consumers demand green action from UK’s top brands

October 15, 2007

Consumers demand green action from UK’s top brands - but awareness still low: 69% of UK public unable to name a leading brand on climate change.

The °Climate Group has launched findings of the UK’s first ever Climate Brand Index which tracks year-on-year consumer perceptions of how brands are performing on climate change.  The research shows a gap between what consumers want and expect from brands on climate change and what they think they are doing about it.  Awareness of what companies are doing is low and most people (69% in the UK, 74% in the US) remain unable to identify any brands as taking a lead on climate change, without prompting. 

The opportunity for companies to lead is clear: people want brands (rather than green specialists) to play a bigger role in tackling climate change.  More consumers now say that they are positively choosing brands for environmental reasons, than are rejecting them.  And many intend to make climate-friendly choices, from choosing an energy tariff to buying their everyday shopping.

It is clear that green behaviour is no longer a niche activity. According to the research more than 80% of the mass market have made some effort, though the proportion who have let green issues influence what they buy is only half that. When they do, it is consumer-facing brands – not green specialists – that people are looking to for solutions.

The Six Green ‘Tribes’
Looking in detail at individuals’ attitudes and behaviours, the research segmented the consumer market into six ‘tribes’. This shows how UK consumers are motivated by very distinct drivers, which require different approaches from brands.

The big new differences revealed are those within the most engaged part of the market: the contrast between the concerned but pessimistic ‘campaigners’ (27%), and the feel-good ‘optimists’ (17%) and their ‘seen-to-be-green’ followers (9%).

The research shows that still nearly a third of consumers have not been won over by the need to take action around climate change.  Two ‘tribes’ dominate this group: the ‘unwilling’ (12%) who are accepting of the issue, but not prepared to act, and the ‘rejecters’ (16%) who confidently reject the issue feeling informed enough to do so.

Understanding this divided market is crucial for the many companies who want to engage with consumers on this issue.  It also highlights why ‘greenwash’ won’t work, despite its superficial appeal. Not only are the groups it appeals to a minority; they are also sufficiently image-conscious that they will not be satisfied for long with solutions that the broader market does not endorse.

Climate Brand Index
The research, conducted over the summer, currently puts Tesco at the top of the UK Climate Brand Index, and GE at the top in the US, with the top five as follows:

UK
1. Tesco
2. BP
3. The Co-operative
4. M&S
5. Sainsbury’s

US
1. GE
2. Toyota
3. BP
4. Ford
5. Honda

The research provides powerful endorsement for The °Climate Group’s ‘Together’ campaign which launched in April.  The campaign brings together 10 of the UK’s favourite brands to make it easier and more affordable for consumers make a positive difference on climate change in their everyday lives.  Not only does the research demonstrate the consumer appetite for such an approach but it also shows how few brands have yet risen to the challenge.  While some brands are ‘admired’ for their action on climate change, brand loyalty and trust are still lacking.  The findings suggest that the ‘gap’ between admiration and trust might be closed by brands taking more of a leadership role as an educator and facilitator – allowing individuals to make a personal and meaningful contribution. 

David Hall, International Campaign Director of ‘Together’ at The °Climate Group says, “This is a nail in the coffin for ‘greenwash’. Consumers want to act on climate change and expect their favourite brands to make it easier for them. It is clear big brands need to work harder to connect with consumers on climate change through initiatives like ‘Together’. We are seeing a huge commercial opportunity for mainstream brands that understand the subtlety of this emerging market and demonstrate green-substance over green-spin.”

Simon Glynn, senior partner at Lippincott says, “Climate-friendly consumer choice is here to stay. Marketing initiatives will need to mature to respond to the different, legitimate reaction of different consumers. There is still plenty of opportunity for new movers to lead, as brands are only beginning to engage fully with the complexity of the market. The potential rewards for businesses that understand how these segments are evolving are huge.”

About the Research & Climate Brand Index (UK & US)
The research “Consumers, Brands and Climate Change” was commissioned by The °Climate Group in the US (n1000 over 18) and UK (n1000 over 18) which was jointly funded by Sky and Lippincott and was conducted online in June 2007.  It was designed to understand and segment perceptions and behaviours in green consumption and identify brand perceptions to build a comparison between the US and UK over time.  The ‘Climate Brand Index’ will be conducted annually to compare trends.

Summary of Key UK Findings:
• Consumers tend to admire companies that are tackling climate change: almost 60% of those interviewed.
• Consumers want business brands to play a bigger role in tackling climate change than they do today.
• The retail opportunity is positive: More people had chosen to select a brand for environmental reasons than to avoid one.
• While consumers have done more in high-carbon products and services (eg driving and energy and heating supply), their interest extends as much to low-carbon products and services such as household shopping and food.
• Companies are currently winning interest and admiration (from a distance) but not trust and loyalty (closeness).
• Companies are recognised as leaders but not as involving consumers.
• Marketing opportunity.  Only 28% rejected climate change or were unwilling to alter their behaviour. 

Six ‘Climate Conscious’ Tribes (% of UK population):
> Campaigners (27%) – deeply committed, but pessimistic that we can solve the problem, needing to be convinced that solutions are authentic and effective
> Optimists (17%) – also committed, but up-beat about solving the problem; motivation is more social.
> Confused (19%) – open-minded and looking for clarity about the issue and what they should do
> Followers (9%) – less sure on the issue, but ready to join in nonetheless
> Unwilling (12%) – accepting of the issue, but not prepared to do anything themselves
> Rejecters (16%) – confidently rejecting of the issue, feeling well informed

 

> To view the full UK report, click here
> To view the full US report, click here

News coverage of the report:
> The Guardian
> New Consumer
> Marketing Week
> Retail Week