ING Research: Customers Willing to Drop Brands Based on Perceived Environmental Impact
NEW YORK & LONDON & SINGAPORE--(BUSINESS WIRE)--Feb 4, 2020--
A new global survey commissioned by ING shows consumer attitudes have reached a tipping point, leading them to avoid brands that don’t prioritize sustainability and environmental issues. Despite demanding change, customers will still engage in the linear ‘convenience economy’ model of ‘take, make and waste’ unless companies offer a more seamless transition towards the ‘circular economy’. Faced with potential damage to profitability, businesses must offer more convenient sustainable options to consumers in order to create meaningful engagement with the circular principles of ‘reduce, reuse and recycle’.no its
According to the new report, titled ‘Learning from consumers: How shifting demands are shaping companies’ circular economy transition’, the majority of respondents believe their behavior and choices can have a positive impact on addressing global environmental challenges (83 percent). Furthermore, 61 percent say they would be less willing to buy a company’s product if they discovered it was performing poorly on environmental practices.
The findings, which provide a detailed analysis of consumer interactions with fashion, food and electronics brands, highlight where consumers are already engaging in circular activities and their appetite for new product and service models. The report notes the potentially vast gains for businesses that embrace the ‘reduce, reuse, recycle’ principles of the circular economy by aligning with consumers’ changing demands.
To better capture the opportunity of the circular economy and engage with these customers, companies must first understand the barriers to widespread consumer adoption. The barriers include:
For companies to address these barriers for all of their customers they need a deeper understanding of consumer motivation. ING’s analysis identifies three broad groups: ‘Circular Champions’, ‘Circular Sympathizers’, and ‘Non-engagers’. The report identifies within each industry sector the different buying decisions, behaviors, and motivations of each group in embracing – or not – circular economy practices. Through understanding the differences in motivations from each consumer segment, brands can gain insight into how to transition to circular business models while also engaging those whose buying decisions are not based on environmental factors.
In a related report issued last year, ’ Opportunity and Disruption: How Circular Thinking Could Change U.S. Business Models ’, nearly four in five U.S. firms had a strategic intent to implement a circular economy framework (62 percent) or had already put one in place (16 percent). ING’s two circular economy reports recognize businesses’ and consumers’ progress in transitioning and engaging with the circular economic model.
View the report here https://www.ingwb.com/themes/circular-economy-articles/are-we-shopping-sustainably
ING is a global financial institution with a strong European base, offering banking services through its operating company ING Bank. The purpose of ING Bank is empowering people to stay a step ahead in life and in business. ING Bank’s more than 53,000 employees offer retail and wholesale banking services to customers in over 40 countries. ING Financial Services LLC is a US subsidiary of ING Bank.
ING Group shares are listed on the exchanges of Amsterdam (INGA NA, INGA.AS), Brussels and on the New York Stock Exchange (ADRs: ING US, ING.N).
Sustainability forms an integral part of ING’s strategy, evidenced by ING’s ranking as Leader in the banks industry group by Sustainalytics and ‘A’ rating in MSCI’s ratings universe. ING Group shares are included in major sustainability and Environmental, Social and Governance (ESG) index products of leading providers STOXX, Morningstar and FTSE Russell.
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PUB: 02/04/2020 04:00 AM/DISC: 02/04/2020 04:00 AM