COVID-19 Impacted Consumers' Focus on Sustainability: IBM Study
Grow Your Business, Not Your Inbox
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
The COVID-19 pandemic has elevated consumers’ focus on sustainability and willingness to pay out of their own pockets—or even take a pay cut—for a sustainable future, according to a new IBM Institute for Business Value (IBV) survey of over 14,000 consumers in nine countries.
Nine in ten consumers surveyed reported the COVID-19 pandemic affected their views on environmental sustainability, and COVID-19 was the top factor cited in influencing their view – more than others presented such as widespread wildfires/brushfires, disasters due to weather events and news coverage on the topic.
The survey also revealed differences in consumer opinion across geographies, with Americans surveyed reporting the least concern about sustainability topics. For example, only 51 per cent of the US consumers surveyed said addressing climate change was very or extremely important to them, compared to 73 per cent of respondents from all other countries.
“The survey showed respondents worldwide are increasingly concerned about the global climate crisis, and we have also observed businesses in many industries looking to take action to meet their customers’ and investors’ expectations and manage their own environmental goals,” said Dr. Murray Simpson, global lead for sustainability, climate and transition, IBM Global Business Services. “We see many companies beginning to make strides to build transparent supply chains or improve energy management to reduce carbon emissions with the help of innovative technologies like AI and Blockchain.”
According to the survey, many consumers are increasingly willing to change how they shop, travel, choose an employer and even where they make personal investments due to environmental sustainability factors.
Many surveyed employees are willing to accept a lower salary to work at a sustainability-conscious employer
According to the survey, 71 per cent of employees and employment seekers surveyed say that environmentally sustainable companies are more attractive employers. In addition, more than two-thirds of the full potential workforce respondents are more likely to apply for and accept jobs with environmentally and socially responsible organizations – and nearly half surveyed would accept a lower salary to work for such organizations.
At the same time, 48 per cent of consumers surveyed trust corporate commitments on sustainability, with 64 per cent of respondents expecting increased public scrutiny in the year ahead.
Given that one in four employees plan to switch employers this year, companies could face a risk of losing top talent to more sustainability-conscious competitors.
Environmental sustainability is affecting personal investment decisions
Forty-eight per cent of all personal investors surveyed already take environmental sustainability into account in their investment portfolios and a further fifth (21 per cent) surveyed say they are likely to do so in the future. 59 per cent of personal investors surveyed expect to buy or sell holdings in the next year based on environmental sustainability factors.
Many surveyed shoppers and travelers are willing to pay more for environmental sustainability
Despite the COVID-19 pandemic’s financial impact on many individuals, 54 per cent of consumers surveyed are willing to pay a premium for brands that are sustainable and/or environmentally responsible.
In addition, 55 per cent of consumers surveyed report sustainability is very or extremely important to them when choosing a brand – 22 per cent higher than consumers surveyed pre-COVID-19 pandemic by IBM. Slightly more than six in ten consumers surveyed said they are willing to change their purchasing behavior to help reduce the negative impact on the environment, with consumers surveyed in India (78 per cent) and China (70 per cent) being the most willing.
With regards to travel, almost one in three respondents strongly believes their personal travel habits contribute to climate change. 82 per cent of consumers surveyed globally would choose a more environmentally friendly transportation option even if it costs more, but only 64 per cent of American respondents agreed compared to 95 per cent of Indian and 91 per cent of Chinese respondents.