Cash vs. Carbon: Consumer green spending declines as money woes continue

Fewer consumers are responsive to paying premium prices for goods or services that are environmentally friendly, claims a Canadian survey.

The Consumerology survey, executed by advertising agency Bensimon Byrne, found the majority of Canadians polled believed it was too expensive to choose products and services that benefit the environment, opting for cheaper, less sustainable goods in lieu of financial pressures.

The survey is a potential model as to how consumers globally are dealing with austerity measures imposed by governments while remaining involved and concerned over the welfare of the planet.

Once topping the charts as a main concern for consumers, environmental issues have been replaced by worries over the state of health care and the price of petrol. Additional concerns such as the state of the economy and unemployment rates made gains in their place. Concerns over the environment and climate change have slipped to the bottom of the chart, dropping 11 per cent and 7 per cent, respectively, since last year.

 “The real missed opportunity,” explained Jack Bensimon, President of Bensimon Byrne, “is that no company has proffered environmental products that are priced the same as conventional products.” Bensimon believes businesses have not planned long term strategies for attracting customers through company sustainability, missing the opportunity to cultivate smarter consumers who may have been able to mitigate the impact of the recent recession.

Disconcertingly, the survey found over 70 per cent of Canadians polled considered corporate social responsibility and environmental efforts as green washing; with nearly all participants wanting to see government standards imposed on companies.

“Are consumers willing to pay more? The answer is overwhelmingly no,” stated David Herl, principal partner with Gandalf Group, which conducted the study.

However, Herl believes the recent revelation in consumer green spending does not mean companies should eliminate green campaigns and initiatives, citing four out of 10 participants remained steadfastly committed to the environment.

“It’s the middle that’s fallen out,” Herl said, claiming businesses should continue their sustainability messaging but concentrating campaigns around tangible environmental issues affecting consumers on a day-to-day basis.

 “[Businesses] are better off focusing on waste, garbage and packaging than crafting a message around renewable energy and climate change. It’s all about getting the best bang for your buck,” Herl explained.

Article by Diva Rodriguez | Climate Action