How To Be a Conscious Consumer

Want to know how conscious consumers will affect your sustainable business? This blog explains the global shift in consumer values.

Do you check if your beauty products are cruelty-free? Make a beeline for brands with non-plastic recyclable packaging? Do you shop in your local store and take your own bags?

“Every time you spend money, you are casting a vote for the kind of world you want to live in.” Anne Lappe.

Conscious consumerism, or ethical consumerism, is a term that represents an awareness of how our consumption impacts society as a whole. Consumers are now making conscious choices to ensure that the brands they support are aligned with their ethics and values. We see buying practices increasingly driven by a commitment to purchases that have a positive social, economic and environmental impact.

Narrative Shift

Although the term has been around for a while, we can see the narrative on conscious consumerism shifting. In 2019, topics such as sustainable fashion and the use of plastic were high on the agenda but tended to be related more to recycled and recyclable materials. In 2020 however, somewhat propelled by the ongoing Covid pandemic, there was a huge increase in awareness of more deeply rooted issues. Worker’s rights, for example, were brought to the fore through supply chain scandals, including the social media led #PayUp campaign, highlighting the often perilous positions that many garment makers are subjected to.

The Black Lives Matter movement also exposed contradictions between the external messaging and internal culture of many big brands. But it’s not just about what we wear. Conscious consumerism extends to the food we buy, how goods are packaged, the way we travel and even where we live. It also spans the spectrum of sustainability.

Consumers are increasingly demanding to know whether their purchase has negatively impacted the environment and whether the company treats its employees fairly, right through to whether the organisation is adhering to its tax obligations. Although it is still relatively difficult to trace the entire lifespan of a product, particularly those which are mass-produced, it is increasingly becoming a priority for businesses.

As Forbes reports:

“Trust, sustainability, authenticity and transparency are now the values embedded in the social contract between consumers and retailers. This new ethic requires fundamental changes in how retailers and consumer packaged goods brands build affinity and maintain or gain market share.”

Generational

Awareness of the importance of these ethical issues is increasing and answers are being sought by a wide range of individuals. Whereas just a few years ago, the trend tended to indicate that conscious consumerism was being led by millennials, a 2020 study on consumers by IBM Institute for Business Value revealed that it now spans all generations.

Furthermore, although there may be differences in the priorities that each generation is looking for in their purchases, clean, sustainable and environmentally responsible products rank the highest in importance. 

Research by IBM found that a third of all global consumers state that they are prepared to switch from their usual brand and to pay a higher price if the brand’s ethics do not align with their personal values. Although the respondents to the IBM study were largely from established markets, a recent article by the World Economic Forum showed that conscious consumerism is perhaps even more prevalent in emerging economies.

It stated that people in those regions tend to opt for products that are produced fairly, with minimum impact on the environment, even if that means paying more. Globally, however, it is clear that the pressure is mounting. As consumers become more aware and their choices become more informed, a global effort is required to respond in a way that shifts from CSR to embedding sustainable practices into the core business.

Brands

We are seeing major shifts in certain brands. For example, the notoriously fast fashion brand H&M recently vowed to use 100 percent recycled or sustainable materials by 2030.

There are also innovative solutions being launched, such as the Farmer Connect App which helps consumers track the entire footprint of their coffee. And it is not just retail that needs to be prepared. As consumers become more conscious of the environmental and social impact of their chosen goods and services, financial investments are set to come into focus.

As a call to action, Philipp Rickenbacher CEO of Julius Baer & Co Bank writes

“I firmly believe it is the role of the financial services industry to give their clients the means to invest in sustainability if they choose to do so. Rather than a moral stance, responsible investment is a rational and deliberate decision to allocate capital where it promises superior long-term risk-adjusted returns – not just with the benefit of hindsight, but with forward-looking intelligence.

B Corp

The growing demands from conscious consumers in all sectors are reflected in the increase in movements such as the B Corp, a global community of companies committed to balancing purpose with profit, which currently has over 3700 signatories spanning 150 industries. The B Team is another corporate-led initiative which recognises the public pressure to shift to a more sustainable, responsible way of operating, vowing to redefine corporate leadership.

Amidst the pandemic, 2020 has been a year of action for many and we can all play a part in what comes next. The rise in both corporate and consumer-led movements presents an opportunity to cement a more permanent shift in culture.

As Slow Factory founder and creative director, Celine Semaan observes

“The pandemic has shown] the necessity of embarking on a sustainable journey because we have no other choice. And the way culture changes is important because policy follows culture.”

23-Apr-20
TRANSPARENCY INDEX RANKS H&M GROUP AMONG THE TOP FIVE
https://about.hm.com/news/general-news-2018/hm-group-top-five-transparency-index-2018.html

03-Feb-21
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https://www.farmerconnect.com/

03-Feb-21
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https://bcorporation.net/

03-Feb-21
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https://bteam.org/

28-Dec-20
Could the Covid pandemic make fashion more sustainable
https://www.theguardian.com/world/2020/dec/28/could-the-covid-pandemic-make-fashion-more-sustainable

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The time to listen to consumers and join this global shift is now.

If you would like to learn more about conscious consumerism and how these shifts in mindset could affect your business goals, please get in touch with a member of our team, we would love to hear from you.