Shoppers are increasingly willing to stop buying brands that don’t make their carbon footprints clear, says Harry Morrison
Consumer demand for lower-carbon products and services is rising despite the economic climate.
Recent Carbon Trust research has indicated 45% of shoppers are prepared to stop buying their favourite brands if the carbon footprint is not made clear, while 56% would be more loyal to a brand taking steps to cut its carbon footprint.
A large percentage of people are now prepared to make lifestyle changes to reduce their impact on the environment if they don't have to pay more: 70% would follow simple energy-saving advice on packaging, while 47% are more likely to choose carbon-labelled goods if they are of identical quality even if they cost more. This demand for information is creating a new market. The Centre for Retail Research predicts sales of products with carbon labels will hit £15.2bn by 2015 .
In the UK the Carbon Trust's Carbon Reduction Label is used on hundreds of products, with an estimated combined sales value of over £3bn, including Walkers Crisps, Quaker Oats and Silver Spoon. Retailers are investing in understanding their supply chain emissions, verifying the carbon footprint of their products and communicating with their customers because they can see the huge value and potential at stake. BrandZ, the corporate reputation study by Millward Brown, calculates that on average 20% of sales are influenced by corporate reputation, with environmental reputation directly influencing about 2% of all sales.
These trends stretch beyond the UK. The New Zealand Wine Company is pioneering the Carbon Reduction Label on its Mobius Marlborough sauvignon blanc. Aldi in Australia is the first Oz retailer to launch a carbon footprint label, on its everyday olive oil range. Government programmes to communicate carbon footprints are gaining momentum in Japan and France.
BrandZ has found that the most successful companies typically also have a strong environmental performance. If brands and retailers don't act now to engage with increasingly carbon-literate shoppers searching for information, they risk being left behind.
Harry Morrison is the director of Carbon Trust Certification
Consumer demand for lower-carbon products and services is rising despite the economic climate.
Recent Carbon Trust research has indicated 45% of shoppers are prepared to stop buying their favourite brands if the carbon footprint is not made clear, while 56% would be more loyal to a brand taking steps to cut its carbon footprint.
A large percentage of people are now prepared to make lifestyle changes to reduce their impact on the environment if they don't have to pay more: 70% would follow simple energy-saving advice on packaging, while 47% are more likely to choose carbon-labelled goods if they are of identical quality even if they cost more. This demand for information is creating a new market. The Centre for Retail Research predicts sales of products with carbon labels will hit £15.2bn by 2015 .
In the UK the Carbon Trust's Carbon Reduction Label is used on hundreds of products, with an estimated combined sales value of over £3bn, including Walkers Crisps, Quaker Oats and Silver Spoon. Retailers are investing in understanding their supply chain emissions, verifying the carbon footprint of their products and communicating with their customers because they can see the huge value and potential at stake. BrandZ, the corporate reputation study by Millward Brown, calculates that on average 20% of sales are influenced by corporate reputation, with environmental reputation directly influencing about 2% of all sales.
These trends stretch beyond the UK. The New Zealand Wine Company is pioneering the Carbon Reduction Label on its Mobius Marlborough sauvignon blanc. Aldi in Australia is the first Oz retailer to launch a carbon footprint label, on its everyday olive oil range. Government programmes to communicate carbon footprints are gaining momentum in Japan and France.
BrandZ has found that the most successful companies typically also have a strong environmental performance. If brands and retailers don't act now to engage with increasingly carbon-literate shoppers searching for information, they risk being left behind.
Harry Morrison is the director of Carbon Trust Certification
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