Report: Environmental sustainability in demand, but consumers are confused by brand promises

Eight out of 10 Australian consumers expect all businesses to be doing everything they can to support environmentally friendly practices and four in 10 say they’ll stop purchasing from brands that don’t.

According to a new piece of local research conducted by strategic consultancies, Nature and The Lab, and based on a survey of 2000 Australians, sustainability and environmental conscience is a hot topic right now with consumers. Yet the survey also illustrated both confusion and scepticism around the sustainability claims exhibited by businesses.

For example, 72 per cent of respondents said they don’t believe some brands are as environmentally friendly as they claim to be, up from 51 per cent on 2019 results. In addition, 56 per cent said they found the sustainability claims being made by organisations confusion, up from 34 per cent in 2019.

Overall, 63 per cent of respondents said they think highly of brands that are environmentally friendly, and 78 per cent think big brands should set an example on environmental sustainability, up from 58 per cent in 2019. More than seven in 10 (73 per cent) expect all businesses to be doing everything they can to be environmentally friendly.

In terms of action, 39 per cent of all respondents said they’ll stop using a business if it’s not acting sustainably, a figure that rose to 47 per cent across those aged under 30.  

The research also showed the demand for sustainable businesses is stretching across all manner of industry sectors. For instance, 63 per cent said they think about sustainability ‘a little or a lot’ when it comes to household products, 52 per cent when it comes to clothing, and 50 per cent when it comes to hair and beauty products.

To a lesser but still notable extent, 42 per cent said they also think about sustainability ‘a little or a lot’ when it comes to medications and pharmaceuticals, and 38 per cent agreed they do when considering cars and other vehicles. Other areas where sustainability is a consideration are electricity (36 per cent), phone services (30 per cent), gas (28 per cent), Internet service provider (26 per cent) and water (26 per cent).

“People are both increasingly demanding and confused. There is a clear onus on all businesses to be doing more for the environment, to be honest about what they are doing, and to communicate that to people in a clear and transparent way,” Nature consultant, Tabitha Kelly, commented.

“One of the biggest changes over the past three years is in the categories in which consumers expect brands to be leading the way. Three years ago, sustainability was limited to fast-moving consumers goods and packaging, whereas now we see this expectation extend into services like electricity and gas. Now it is top of mind for many people and it is affecting how they behave and where they spend their money.”

The survey’s release comes as the Australian Competition and Consumer Commission (ACCC) begins a new Internet sweep in order to identify misleading environmental and sustainability marketing claims. The review has been prompted by increased consumer interest in buying more sustainable products and services.  

Nature partner and Melbourne managing director, Justin Connally, said businesses need to know how to properly communicate about sustainability with consumers.

“Companies need to clearly link their sustainability message to their brand to make a positive impact with consumers. Brands that aren’t already known in the sustainability space can still have an impact by using their packaging to communicate their sustainability claims and integrate it into their existing branding,” he advised.

“Consistent investment in sustainability messaging over a longer period of time pays dividends in the brand being perceived as a leader in sustainability. And it’s important to note that sustainability communications can be done in an upbeat way, but the message needs to be future-focused, believable and positive.”

The Lab co-founder, Paul Labagnara, saw the research as a sign people are getting more impatient with brands to demonstrate their commitment to sustainability.

“Even the less tangible service brands are being called into action as people’s awareness of how all businesses can contribute to a more sustainable future increases,” he said.

“When a brand demonstrates clear action toward a more sustainable future, it helps alleviate the environmental ‘cost’ for people and increases its value, driving more people to choose it over another,” The Lab Melbourne Behavioural Science Lead, Chris O’Keefe, added. “This is becoming more imperative to maintain consumer spend against the backdrop of the increased cost of living.”

Nature and The Lab’s research was conducted in late June 2022 and covered 2299 people across Australia.

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