Businesses carrying the load on sustainability in the face of government’s inaction

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New research reveales that consumers across the globe believe that they can no longer rely on their governments in promoting sustainability and environmental awareness as they pin their hopes instead on private enterprises.

The report by strategic research and consulting agency Fifth Dimension notes that consumers believe that the private sector has a moral obligation to promote sustainability, with advertising and packaging considered to be the ideal vehicles to promote it.

The research reveals that 71 per cent of consumers across Australia, UK, and the US agree the world needs to act on climate change. However, 54 per cent believe it will be companies that will have a greater positive impact on climate change than governments.

“The argument has moved on from whether or not climate change is real to what is the world going to do about it,” Fifth Dimension founder and CEO, Lyndall Spooner, said. “The overwhelming majority of consumers in Australia, UK and US believe companies have a moral obligation to lead the way on sustainability as corporations are viewed as more likely to have a positive impact on climate change than their own governments.

“What is viewed by many as the continued failure of governments to act on climate change now sees consumers putting their hope in the commercial sector where they believe there is a greater desire to act quickly,” Spooner added. “Sustainability is now a global social force that cannot be ignored.”

Spooner pointed out that consumers have galvanised their sustainability mindset and are using the power of their buying behaviours and decisions to force corporations to drive the large scale change they cannot achieve as individuals.

“It is clear companies that genuinely take positive steps to address climate change now will be rewarded; morally and commercially,” Spooner said. “And, while scepticism often plagues companies that promote their charitable and community driven activities, consumers are asking companies to declare their views on climate change and to educate them on how their actions are making a difference.”

The research also noted that Australians are the strongest believers that companies have a moral obligation to become sustainable, with 70 per cent of Aussie respondents supporting this statement. While there is scepticism among some consumers regarding the motivations of companies, 48 per cent believe that businesses that are currently moving towards ethical and sustainable practices are doing it for authentic and benevolent reasons.

“The challenge for companies is how do they communicate the positive action they are taking,” Spooner said. “The average Australian has a significantly greater understanding of how a brand can support equality and diversity than they understand how a brand can be sustainable.

“We are clearly moving to a world where sustainability will be a key decision factor for consumer brand choice and a point of competitive positioning,” Spooner added. “What will be the value of a brand being able to state in their advertising and print they are carbon neutral on their packaging and what will be the cost for brands that cannot? With increasing commoditisation this is the next point of difference for brands; one that can truly connect consumers and brands through shared values.”