The Pivot Towards Consumer Driven Sustainability
SUSTAINABILITY
By Walter Nyabundi
Over the past decade or so , there has been a notable shift in consumer attitudes toward sustainability and purchasing preferences now tend to reflect this . Brands are now compelled not just to make profit . They must also make business choices that , among other things , result in protecting the natural environment and natural systems . Indeed , a report by the WWF , revealed that there had been 71 % increase in online searches for sustainable goods around the world between 2016 and 2021 . Here-under are the disruptive forces driving this change :
Extreme weather events :
All available scientific evidence suggests that extreme weather events are likely to become more frequent and intense with climate change engendered by human activity . Long-term changes in climate will directly or indirectly affect many aspects of society .
Supply chain disruptions :
There are a several factors that have hindered supply chains over the last two years , including pandemic-related production issues , wide-reaching labor supply challenges , and the distortion of demand and increased volatility occurring as result of pull-forwarding orders and cautionary inventory management .
Technical enablement :
Technical enablement involves empowering the workforce to increase its potential and improve its efficiency . Technical enablement leverages the strategic use of technology and digital solutions to empower businesses to enhance results , increase productivity , and address problems .
Climate impact inequality :
Rising temperatures are aggravating disparities that have deep-rooted social and economic antecedents . Access to clean water and affordable food is beyond the reach of many . The poorest populations are not benefitting from social benefits and safeguards . They also do not have access to basic health services , making them particularly vulnerable to unforeseen shocks to their assets and incomes .
Cost of living crisis : In every part of the world , goods and services are getting more expensive . Rising costs are making life harder for many as they struggle to afford necessities . In places already facing conflict , natural disasters or other crises , the problems are multiplied many times over .
Consumer values and attitudes : New trends in consumption are shaping consumers ’ preferences and buying habits . Further , understanding how values shape consumer attitudes and behavior , offers vital insights into how ethical beliefs are now driving consumerism .
Rising cost of raw materials :
In the recent past , the price of raw materials has increased significantly . This has its roots in structural problems and the pandemic . The main causes are lower supply , higher demand , and inflation .
Energy transition challenges :
The current global energy crisis started in late 2021 , the Russian invasion of Ukraine in early 2021 simply exacerbated it . The economic rebound that resulted from the easing of lockdown restrictions in the latter part of 2021 increased global energy consumption . Oil , natural gas , and coal prices went up markets as demand pushed against insufficient supply . Three months before the invasion of Ukraine , the US government announced the first release from its strategic petroleum reserve . It is evident that under-investment in energy has constrained the development of adequate new oil and gas resources .
Increased domestic protectionism and disruptive trade agreements : Protectionist policies often seek to shield domestic producers and domestic workers from foreign competition . Protectionism takes three main forms : tariffs , import quotas , and non-tariff barriers .
Does the increasing fear of trade we see today mark the beginning of a post globalization era ? The world appears to becoming more regional , insular and multipolar . China ’ s maneuvers in Hong Kong , the lack of collaboration between nations in the fight against Covid , the invasion of Ukraine , trade wars , and the deliberate move towards increased autonomy in many countries seem to suggest so .
Government regulatory changes : Governments and legislators around the world are designing policies meant to strengthen sustainability , shifting the responsibility from consumers to businesses to drive change .
The global economy is now at an inflection point , where governments and businesses that have taken dynamic and sound approaches to sustainability will reap great rewards . In the short term , organizations will need to focus on existing solutions that can be readily adopted and scaled . In the mid-term organizations will require additional development , investment , and time . In the long-term organizations will need to make systemic shifts to replace existing business practices .
Sustainability targets will become more exacting over time . Research , reporting , and validation will be critical to improving and resourcing the entire value chain . This will require a paradigm shift in processes and operations .
Walter Nyabundi is a Social Researcher . You can commune with him on this or related matters via email at : Nyabundiw @ gmail . com .
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