Shoppers still recognise the importance of reducing carbon emissions in spite of recession

The Times
March 17, 2009
Gráinne Gilmore

Businesses that assume the deepening recession has dampened consumers' desire to go green should think again. Despite the worsening economic outlook, shoppers are still placing an emphasis on environmental concerns, new research suggests.
Two thirds of customers say that environmental considerations inform their purchases to the same extent as they did a year ago, while more than a quarter said that they were now even more conscious of the environmental impact of what they buy, figures from the Carbon Trust, which operates the first carbon-reduction award scheme, show.
While this may help to influence how shops stock their shelves, many businesses may have had to look closer to home to satisfy customers' desire to know that the companies to which they are giving their custom are also making efforts to become more environmentally friendly. Two out of three people think it is important to buy from environmentally responsible companies, with about one in seven saying that they had even decided to take their custom elsewhere if they felt a company's environmental reputation was not up to scratch.
Add the consumer goodwill to the reduction in energy costs brought about by cutting carbon emissions and it seems like a win-win situation for most companies. But as businesses weather the most damaging economic turbulence in decades, many are focusing first and foremost on survival, placing green issues down their list of priorities.

Harry Morrison, chief executive of the Carbon Trust, sympathises. “I understand this sentiment that for some businesses, survival is critical now. But from an environmental perspective, the clock is ticking — we don't have much time. In addition, cutting carbon has an immediate bottom-line effect as costs drop, and a medium-term benefit for the brand.”
The British Retail Consortium agrees, saying that many retailers remain interested in green initiatives not only because of the cost savings, but also because making such commitments helps to differentiate them from competitors. Retailers have already surpassed a voluntary target to reduce the use of carrier bags by 25 per cent and aim to cut this by 50 per cent by the end of May.
Larger companies have an added impetus to look at reducing their carbon footprint, as new rules next year — which will affect the biggest 5,000 companies — will require businesses to buy carbon allowances to offset their emissions. Those that have taken early action will have a head start. But there seems to be a stumbling block in how businesses can let their customers know about the good work that they are doing to curb carbon. More than two thirds of consumers are hazy about which companies are environmentally responsible but this suggests that firms that are able to relay clearly their message to the public will be in pole position to attract shoppers.
Carbon Trust believes that it can help by informing customers about the good work companies are doing. “When companies are granted the standard, they can use a logo in all their marketing which makes it clear that they are working towards cutting emissions,” Mr Morrison said.
B&Q has gone one step further at its new flagship store in New Malden, southwest London. Visitors sipping a coffee in the café can look through glass panels to admire the solar panels and wind turbine that are helping to cut the store's carbon emissions.