Consumers want to make better choices, but it’s down to retailers to help them do that and ease the transition to a net-zero economy, says Lisa Hooker, industry leader for consumer markets at PwC.

As the start of COP26 moves ever closer, it’s little surprise that sustainability and climate change are front of mind for many consumer sectors.

And with research showing that consumer purchases account for nearly a third of a household’s carbon emissions, there is a pressing need for action across retail.

The slow movement on sustainability isn’t due to a lack of good intention or ambivalence. Consumers regularly tell us that they care about environmental issues and want to do the right thing, but the pandemic has forced many of us into non-green behaviours as we look to protect ourselves and others. 

As safety remains a priority and certain pandemic behaviours stick, we’ve seen the continued rise of home deliveries and the inevitable increase in the use of packaging materials that comes with that.

“I’m pulled in different directions on sustainability. I still want to do the right thing, but my actions can be affected by convenience, safety considerations or a lack of information”

Elsewhere, our latest Store Openings and Closures report, for example, showed that consumers are more inclined to drive to retail parks to avoid using public transport and shop in those larger units to allow for better social distancing measures. 

From my own experiences, I’m pulled in different directions on sustainability. I still want to do the right thing, but my actions can sometimes be affected by convenience, safety considerations or even just a lack of information around a product.

Where possible, I try to avoid single-use plastics and opt for products made through more sustainable and ethical practices, but I’ve also been getting more home deliveries and encouraging my parents to do the same as a safety precaution.

And it’s no different for the younger generations. Despite many being almost hyper-aware of ESG issues – and those companies that fail to live up to their expectations – many are conflicted because of their affection for fast and super-fast fashion brands.

While they might look to offset that impact by reselling through online marketplaces, it’s still not the solution we need. But there are certainly positive intentions within that generation. Now he’s at university, for example, my son uses Depop, most likely because he wants cheap clothes but there is also an environmental benefit – even if in part accidental.  

Simplifying sustainability

If we’re going to see real movement on sustainability in retail, consumers must change their consumption habits. But it’s up to retailers to also shift the frame of consumer choice, as well as organisational priorities and business models.

A simple but effective way that my colleague Jac Windsor suggested is: must do, should do and could do. 

‘Must dos’ are the minimum requirements for any organisation to comply with laws and regulations. This could be waste disposal, pollution or carbon emissions. While there’s little additional value to be had from these actions, they’re essential if you’re going to avoid financial penalties.

‘Should dos’ are the actions to take if you want to protect – and improve – your brand reputation. That might include taking action and setting out your direction on climate change, resource depletion,  waste,  pollution or deforestation. These commitments will keep you focused and on track for sustainability, and can be enforced or upheld by customers and stakeholders. 

But it’s the ‘could dos’ where retailers can really find the value and meet consumer needs. It could be developing more sustainable products (ingredients, manufacturing or packaging) or encouraging sustainable use and less waste, such as zero-waste refilling solutions.

It might even extend to finding and providing sustainable financing or the decarbonisation of your supply chain. These long-term actions and opportunities will unlock revenue growth, drive cost efficiencies and deliver favourable financing terms. 

Time to help customers do the right thing

While it’s clear that your customers want to do the right thing on climate change, they are going to need guidance to turn that good intention into action.

Those retailers that can provide better information to customers, or make it easier for people to make low-carbon choices throughout their customer journey, are the ones most likely to succeed in the future.

How you practically do this is something that PwC has recently explored with the British Retail Consortium as part of its Climate Action Roadmap.

Helping consumers to make better choices will be a crucial element of the transition to a net-zero economy.

For retailers now, the challenge will be to encourage shoppers to make Christmas special, but without the guilt.