According to a study by E.ON, since the coronavirus pandemic, the desire that customers have for more ecologically friendly goods and services has dramatically increased, with environmentally conscious companies now being rewarded. The pandemic has caused a big shift in consumer behaviour, with more than a third (36%) of UK customers say that they’re buying products from companies that have a strong commitment to the environment. Another 80% of respondents state that they want to buy goods and services from companies they are aware have made a determined effort to be environmentally friendly.
In a recent report from Simon-Kucher & Partners, UK consumers would be willing to pay an average of 25% more for sustainable alternatives to their usual products, and nearly nine-in-ten consumers have changed their purchasing habits to be more environmentally friendly over the past five years. This presents a huge opportunity for businesses looking to capitalise on the growing demand for sustainability.
Companies need to invest, innovate, and change their business models right away as consumer expectations for fairly priced sustainable options will only rise with more consumer awareness.
As UK consumers are more concerned with sustainability when making certain purchases, it is now a significant component across all industries. For instance, 75% of customers thought it was crucial when buying energy, while almost half said the same about banking services. Due to the present spike in fossil fuel prices, speculative investment in the sector is also skyrocketing, which encourages the growth of carbon-intensive sectors that accelerate climate change.
Indeed, businesses in every industry are battling to improve their sustainability records. Only 5% of Europe’s major companies, according to recent Accenture data, are expected to achieve net-zero status by 2050. According to the trend, the “invisible hand” of the market could not be strong enough to stop the escalating climate disaster, and lobbying organisations are putting more pressure on world leaders to use laws to compel corporations to act more quickly.
Consumer awareness of climate concerns has expanded tremendously, and the public is motivated to do its part, even if consumers can only play a modest role compared to world leaders or multinational corporations. Many firms may be fearing the expenses and hassles this would involve as customers pressure corporations to make their goods more sustainable, but they should also be aware of the opportunity this provides.
According to a study from Eden McCallum among roughly 1,000 consumers, 61% of UK citizens claimed they were either concerned or very concerned about sustainability in their purchasing patterns, compared to only 8% who were not. Many customers already put their beliefs into practice in their own lives. In the UK, 56% of people place importance on food and eating habits, whereas 68% place importance on personal decisions regarding energy use and insulation.
Consumers in the UK are also making efforts to minimise the environmental effect of their travel. Most people were now avoiding flights at least occasionally, with just under half saying they did it “frequently.”
When deciding how to become more environmentally conscious as a company doing business in the UK, you should take into account every area of your company. It could be beneficial to designate or recruit someone to oversee your company’s green policy. Please continue reading to discover more reasons why UK firms need to be more environmentally friendly.
boost your brand’s image
An important aspect of marketing your business is establishing a favourable brand image and brand awareness. Customers will see that your company supports the environment if you emphasise green initiatives. Nowadays, many consumers view unethical or unsustainable methods as intolerable, therefore being able to demonstrate that you are the opposite will greatly improve your brand’s reputation. Consider posting your initiatives throughout your digital marketing infrastructure, such as your website, social media pages and blogs.
qualify for green grants
Businesses that satisfy the qualifying conditions can take advantage of a variety of green grants and financing programmes provided by the government. For businesses looking to boost their green credentials, these incentives can provide funding for crucial machinery, devices, and cash. For any firm, this may increase the profitability and desirability of becoming green.
lower costs
Cost reduction for businesses is a side consequence of many sustainable strategies. This involves improving the energy efficiency of commercial buildings and recycling waste materials rather than disposing of them in landfills. Utilising more efficient, environmentally friendly materials like recycled polythene will also enable you to save money.
create a healthier working environment
The most important elements of any company are its employees. Green technology enhances a worker’s quality of life at work. Recyclable paper options, reusable items, and paperless processes are just a few solutions that demonstrate your concern for your employee’s wellbeing as well as that of your customers and the entire community.
gain an advantage over your competitors
Adopting the newest, most cutting-edge green practices will help you stand out from your competitors in the marketplace. The slow adoption of sustainable practices by many firms may have cost them new clients and goodwill. You may differentiate yourself and get a competitive edge by investing in green as soon as possible.
promote the development of community relations
Going green is a corporate responsibility that may assist in forming essential social bonds and strengthening community ties. The easiest method to boost your brand’s reputation and gain respect from your staff and consumers alike is by giving back to people in need in your neighbourhood.
It is important to live sustainably. Going green has numerous benefits, and, without sounding overly dramatic, we no longer have a choice, with the environment in the state that it is in. We run the risk of losing the aspects of life that we currently take for granted if we don’t work now to enhance how people and the environment interact.
Therefore, as brands pursue green living, we greatly lessen the negative effects that people have on the environment. The cumulative effect of all these seemingly insignificant adjustments has a big impact, so it is vital to consider the environment in at every level of your business activities, both for the benefit of your business and for the world we live in.
need help making your business sustainable?
Lines Capital offer innovative green solutions to our portfolio companies, and we are experts in ensuring these green strategies are maximised via marketing to ensure optimal benefit for your business. To find out more, please contact us today.