Consumer demand for green products `reaches a

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VIEWPOINT:
Consumer demand
for green products
‘reaches a tipping point’
Companies that
are tackling key
environmental
and societal issues
through they way
they design, make
and sell products
could become the
leaders of the lowcarbon economy.
A number of big businesses are
beginning to make dramatic
changes to their business models;
evolving sustainability policies from
a focus on in-house efficiencies,
to creating products and services
that have a positive social and
environmental impacts.
The latest IKEA Group Sustainability
Report reveals that sales for the
group’s ‘sustainable life at home’
product line reached €1,802m in 2016
compared with €641m in 2013, taking
the company 70% of the way to its
target of achieving a four-fold increase
in sales by 2020.
Ahead of the zone dedicated to
sustainable products at edie Live
2017, we bring you the evidence
from leaders including IKEA and
Unilever who are building the
business case for sustainable
products and reaping the rewards.
As part of IKEA’s People & Planet
sustainability programme, the company
is striving to promote sustainable living
to its customers while also revamping
how it sources energy. To effect even
greater change, IKEA also announced
a new €1bn support fund, taking total
funding for sustainability initiatives to
more than €3bn.
IKEA nears three-fold increase in
sustainable product sales
The world’s biggest furniture retailer
IKEA has almost trebled the sales
from its ‘sustainable life at home’
products, while also announcing a new
€1bn financial framework to promote
projects that fall within its People &
Planet sustainability strategy.
2013
€641m
“We have made significant progress
towards our People & Planet targets,
but there is still more to do. We want to
lead with passion and purpose towards
a more sustainable and equal world,”
says IKEA’s chief sustainability officer
Steve Howard.
2016
€1,802m
2020
€2,500m +
IKEA Groups sales of ‘sustainable
life at home’ product line
This article first appeared on edie.net
Unilever’s Sustainable Living brands
delivering ‘superior performance’
Unilever is continuing to drive business
benefits from a responsible approach,
with the consumer goods firm’s
‘Sustainable Living’ brands contributing
to half of its growth last year, and
developing 30% faster than the rest of
the business.
Unilever’s Sustainable Living division which aims to integrate sustainability
into the group’s ‘purpose’ and
‘products’ - is delivering “superior
performance”, as brands including
Knorr, Dove and Lipton continue to
offer consumers products that combine
cost and performance with the added
layer of a wider social benefit.
“Business can play a leadership role
in disrupting markets in support of
sustainable living – and they will be
rewarded by consumers who are also
seeking responsibility and meaning
as well as high quality products at
the right price,” says Unilever boss
Paul Polman. “There is no trade-off
between business and sustainability; it
is creating real value for Unilever.”
These latest results also reveal
that consumers are becoming more
conscious about sustainable
products, with 54% looking to buy
more sustainably sourced and
produced items.
Have we reached the tipping point for
sustainable products?
Companies that clearly demonstrate
the climate credentials of their
products could gain a significant
competitive and commercial
advantage, according to a report which
reveals that two thirds of consumers
across the UK, France and Germany
would now like to see a recognisable
carbon footprint label on goods.
The study, carried out by YouGov for
the Carbon Trust, surveyed 5,000
consumers across Europe’s three
largest countries. It found that there
are big opportunities for green-labelled
products, services and brands to
serve an increasingly environmentallyconcerned populace.
More than half (55%) of UK consumers
said that they would feel “much more
than positive” about a company that
has reduced the carbon footprint of its
products, with 50% of Germans feeling
the same. Moreover, 75% of French
consumers claimed that they would
feel “more positive”, with 30% saying
they would feel “much more than
positive”, the report found.
Managing director of certification at
the Carbon Trust Darran Messem says:
“It is possible that we are seeing a ‘Paris
effect’ after the success of securing a
global agreement on climate change
last year. Businesses that communicate
their achievements in reducing
emissions can secure a reputational
advantage over competitors.”
“It seems we are reaching a tipping
point. The demand for sustainable
products is there in principle and
actively green consumer behaviour is
following in its wake. And this is not
just happening in Europe. For example,
at the Carbon Trust we are actively
working with the Chinese Government
on a major new scheme to enable
greener purchasing behaviour, with a
pilot taking place in Guangdong, which
is an economic powerhouse of
a province with a population of over
100 million.”
Sustainable Products
Zone at edie Live
More than 1,000 edie Live 2016 visitors told
us they wanted to find more sustainable
products and services at the show, so we’ve
created this special new zone to help them
quickly identify new ways to deliver their
sustainability strategy.
From office supplies to biodegradable
products and from waste exchange
to the sharing economy, the new
Sustainable Products Zone brings
together sustainable solutions that
visitors can invest in immediately.
Make sure you’re a part of it
Consumers would feel
‘much more than positive’
about a company that has
reduced the carbon footprint
UK
55%
GERMANY
50%
FRANCE
30%