Why consumers are right on greenwashing

When it comes to sustainability, UK consumers lack trust in the brands they buy from – but businesses themselves don’t have much trust in their suppliers either, new research shows. 

Why it matters

A survey by compliance management software company NAVEX Global found that 55% of businesses agree that profit, rather than making a positive difference to the world, is the primary driver of action on environmental, social and governance (ESG) issues. Add in a large element of uncertainty around the good faith of their suppliers and it seems consumers are rightly sceptical of claims made by brands in this area. Businesses face a real challenge to avoid accusations of greenwashing. 

Key findings

• Less than half of consumers (49%) trust brands that say they’re sustainably and ethically driven in their marketing and branding, or that they are aiming to achieve net zero by a certain date (47%).
• Only 17% of all businesses surveyed were completely confident that the businesses they partner with or outsource to operate ethically and sustainably, despite 45% saying they personally research companies they work with.
• Only a quarter (25%) of consumers think making a positive difference in the world is one of businesses’ top two motivations for undertaking ESG efforts. 
• Just 27% of businesses say ESG investment is one of their top three priorities for the next financial year, despite the fact that over half (55%) of consumers think it should be a top three priority.

Key quote

“Ethics and sustainability are major issues in our fight to save the planet and businesses that are driven by that, rather than the bottom line, will engage with customers more authentically and build trust where it’s lacking” – Fathia Murphy, ESG product specialist, NAVEX Global.

Sourced from NAVEX Global