Sustainability at a turning point: Consumers are pushing companies to pivot
This research of 14,000 people from 9 countries discovered that 93% say that the COVID-19 pandemic has changed their perception of environmental sustainability. Individuals are, as a result, looking to invest in companies that prioritise environmental responsibility and expect them to communicate sustainability benchmarks and future plans clearly. In addition, more than half of consumers would work for a company that values sustainability, which is increasingly becoming a top hiring consideration.
Please login or join for free to read more.
OVERVIEW
This paper surveyed over 14,000 individuals globally from 9 countries, revealing a shift towards environmental consciousness due to the COVID-19 pandemic. The majority of participants expect companies to adhere to sustainable ESG practices while holding them accountable for transparency and honesty. Over half of global respondents are willing to pay extra for sustainably responsible brands, and 43% ration both social responsibility and environmentalism as their main priorities. The report suggests actions for companies to enhance sustainable best practices and promote ESG accountability, including adopting worldwide ESG standards and reporting externally to diverse investors. Companies should also communicate sustainability initiatives and progress to employees and future staff.
The pandemic highlighted the need for companies to shift their focus to environmental sustainability and social responsibility. The report found that 93% of participants had changed their perspectives on sustainability matters due to the pandemic. Furthermore, over two-thirds of participants said that environmental issues are important to them, showing that environmentalism has become a top priority. The report recommends that companies adopt sustainable practices and promote transparency in environmental, social and governance (ESG) statements.
Regarding investment, consumers now look beyond stock performance to ensure that their investments align with their ESG values. The study also revealed that over 80% of global participants are willing to change their purchasing behaviour for environmental reasons, and over half are likely to invest in companies that constitute environmental sustainability. The report suggests that companies wishing to attract responsible investors should implement climate change measures in their operations, adhere to green policies, and disclose climate-related financial information. Companies failing to do so might risk a significant financial impact on their capital.
Finally, the report argues that millennial employees seek out firms that conduct sustainable and socially responsible business. 70% of survey respondents claimed they would be more likely to work for corporations that prioritise environmental awareness, and 75% expect their employers to have a social and ethical responsibility. Companies should consider ways to adapt HR practices to include sustainability and social responsibility training for employees.
In summary, IBM IVB’s report highlights the deepening consumer awareness of the need for sustainable ESG practices, with both environmental and social responsibility increasingly becoming top priorities. Environmentalism requests companies to remain open and transparent in their communication, and employ rigorous ESG standards that projects the long-term value of sustainable decisions. By incorporating sustainable practices, companies can improve their reputations, attract responsible investors, and retain millennial employees seeking environmentally responsible firms.
