New Report Finds Majority of Businesses Falling Short of Sustainability Goals
A new report by Bain & Company has found that over 60 per cent of businesses surveyed are not on track to meet their sustainability goals. This comes at a time when consumers are increasingly willing to pay a premium for sustainable products.
The study, which surveyed 23,000 consumers around the world, revealed that environmental concerns are highest in fast-growing markets such as India. In fact, consumers in India were found to be willing to pay a premium of between 15 and 20 per cent for sustainable products, compared to markets like the US and the UK.
However, the report also noted that Indian consumers are still at an early stage of understanding sustainability, with many behaviors influenced by cultural norms and financial realities. Karan Singh, Partner and head of the Asia Pacific Sustainability practice at Bain & Company, highlighted that there is a noticeable gap between intent and action among Indian consumers, primarily due to factors such as high prices, limited product information, and availability.
The report also emphasized the importance of a combination of technology, policy, and behavior change in order to make progress in meeting sustainability goals. It noted that an increasingly conscious base of consumers and employees may play a crucial role in driving this change.
One key finding of the report was that consumers are increasingly looking to make environmentally sound choices and are willing to pay more for sustainable products. However, they often encounter barriers such as high prices and limited availability. For instance, consumers in the US are willing to pay an average premium of 11 per cent for products with a minimized environmental impact, while consumers in fast-growing markets like India are willing to pay a premium of between 15 and 20 per cent.
The report underscored the growing urgency of sustainability topics around the world, with almost 64 per cent of people reporting high levels of concern about sustainability, and many expressing that their worries have intensified over the past two years. This growing concern is likely driven by extreme weather events and rising pollution levels in many countries.
In conclusion, the report called on businesses to take the lead in educating consumers and innovating to offer sustainable products at attractive prices. It also highlighted the need for policy and behavior change in order to accelerate progress towards meeting sustainability goals.
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