OUTLOOK
THE NEW ETHICS OF SUSTAINABILITY
Consumers want to protect and nurture the environment , and they are willing to pay more for brands that meet their expectations .
From reuse to single use and back again . As we start to leave pandemic anxiety behind , sustainability is returning to lead Aussie shopper brand preferences . While packaging was very much the focus of “ sustainability ” initiatives across retailers and brands , shopper expectation is that brands should do more about ethical and sustainable sourcing of product ingredients . Almost threequarters appreciate it when brands make it clear what they stand for and stay true to their value 38 while 69 per cent of Australians agree that living in more “ green ” ways can improve their health . 39
Cementing a sustainability mindset As we learn to live with Covid , Australians are re-focusing attention on supporting brands with a sustainability mindset . But we are also grappling with new ethical decisions around sustainability trade-offs in our world where convenience and safety rule as self-awareness and empowerment flourish . Confused ? So are shoppers . Your sustainability messages must be transparent , clear , and concise in the environmental sense and in how they meet individual needs . Australians want to protect and nurture the environment and contribute to a better society . One in four online shoppers purchase a brand because of its ethics and sustainability practices – a trend driven by 18 – 24-year-olds . 40 As such , we are increasingly seeing these brands outperform the market .
Supermarket sustainability reimagined Most major chains called out bold new ambitions to reduce environmental impact and deliver long-term sustainability strategies with sustainable concept stores . The new Coles Moonee Ponds ( Melbourne ) concept store features : package-less refill stations dispensing laundry soaps , household detergents , body wash , hand wash and shampoo ; reusable shopping bags made with 80 per cent recycled content including marine industry waste ; and Australianmade trolley baskets composed of 90 per cent recycled milk bottles and 10 per cent recycled plastic .
Say versus do – sustainable shopper decision hierarchies Retailers and manufacturers must address major barriers to democratising sustainability and demonstrating clear value to Australian shoppers .
1 . More effort or too niche Doing the “ sustainable thing ” must be as easy as the current option , meaning refilling your own bottles at a refill station should be as simple as grabbing the product off the shelf .
2 . Inferior product Manufacturers must overcome the “ better for the planet ” perception that environmentally friendly products may not be as good as the original . The growth of greener options indicates this is subsiding .
3 . Lacking visibility Make products easily identifiable so shoppers don ’ t rely on autopilot decision-making . And ensure that they ’ re not overwhelmed with too many “ worthy ” options to choose between .
72 %
of Australians are willing to pay a price premium for brands with sustainability practices 37
Seven Rs of meaningful action
Recycle Recycling resonates but label ambiguity and confusion are impacting compliance ; 80 % of Australia ’ s food products are packaged in materials that cannot be put into home recycling bins . 44
• Use 100 % recyclable packaging and install point-of-sale materials
• Communicate change and leverage symbol awareness
• Divert and repurpose waste , especially ocean plastics Reduce Provide practical steps for consumers to reduce carbon . Reducing by-products and engaging Australians in the salience of waste reduction can be led with packaging .
• Use fewer carbon-intensive ingredients and processes
• Reduce use of undesirable pack materials and ingredients
• Facilitate improved carbon-usage efficiency for end users Remove Remove undesirable non-essentials and harness natural , plant-based virtues . Two-thirds of Australians seek products filled with as many natural ingredients as possible ( 63 %) and non-processed fresh foods ( 65 %). 45
• Embrace digital substitutes to remove material collateral
• Eradicate nonessential packaging , especially plastics
• Explore opportunities in the burgeoning field refill revolution Relationships Major chains collaborated during the initial pandemic outbreak showing that “ doing the right thing ” for customers and staff instils confidence and trust .
• Working together for the greater good resonates .
• Share sustainability learnings to accelerate wider best practice
• Pursue brand collaborations and participate in industry initiatives
• Foster community care with collaborative activations