Brand Trust | Cost of living crisis | Tobin Sparrow
During a time of economic turmoil, are other worries taking priority over concerns about climate change, and should our brands focus more on affordability than net zero pledges and sustainability?
Despite positive headlines about wind (briefly) being the main source of electricity in the UK in Q1 this year, we are still way behind on several climate goals. Technology is advancing, but in many cases, the tech we’re relying on to make a difference isn’t developed yet. Data from our ongoing tracking research ‘The Measure of 2023’ reflects this, telling us that while variation in optimism strongly correlates with the mood of the nation, we are generally (and rightly) pessimistic about our climate change prospects.
That said, younger generations are more optimistic about climate change than older generations, but it would be very dangerous for a brand to interpret this as it being less important to them and that it should not be a focus. It is simply a reflection of the fact that they are just more optimistic, and more likely to be actually doing something to positively reduce their impact on climate change than older, often more pessimistic and change-resistant consumers.
So, should the cost of living crisis really drive an increased brand focus on costs and prices over sustainable policies? As each year becomes more critical in the fight against climate change, recent evidence suggests that there is an expectation that brands take responsibility when it comes to sustainability and the climate, and this should not put increasing pressure on consumer wallets – the backlash against water companies spilling sewage and the proposal to increase bills is evidence of this (while the execs still get millions in bonuses) and highlights the reputational risk of not taking action… brands need to do the right thing as a matter of course, and those that do will be viewed more positively, increasingly so as the younger activists gain spending power and influence. I would argue that the damage to brands who are seen to do nothing now is likely to be greater in the long term than the cost of doing the right thing. The cost shouldn’t just fall at the feet of consumers.
Get in touch to find out more.
