THE SUSTAINABILITY IMPERATIVE - KEYS - A WEBINAR SERIES BY IPSOS 28th April 2022

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THE SUSTAINABILITY IMPERATIVE - KEYS - A WEBINAR SERIES BY IPSOS 28th April 2022
THE
SUSTAINABILITY
IMPERATIVE

KEYS – A WEBINAR SERIES BY IPSOS

28th April 2022

                  WATCH the recording
THE SUSTAINABILITY IMPERATIVE - KEYS - A WEBINAR SERIES BY IPSOS 28th April 2022
AGENDA
                                                              Wa
THE SUSTAINABILTY CONTEXT
Simon Atkinson
Chief Knowledge Officer, Ipsos

SHIFTS & SENTIMENTS IN SOUTH EAST ASIA
Usana Chantarklum
Country Manager, Ipsos in Thailand
                                                   WATCH the recording

SPEAKING TO CONSUMERS
Chris Murphy
Global President, Brand & Market Strategy, Ipsos

THE SUSTAINABILITY OPPORTUNITY
Youmna Ovazza
Managing Partner, Strategy 3, Ipsos in France

2 ‒ © Ipsos | KEYS Webinar April 2022
THE SUSTAINABILITY IMPERATIVE - KEYS - A WEBINAR SERIES BY IPSOS 28th April 2022
THE
SUSTAINABILITY
CONTEXT

Simon Atkinson
THE SUSTAINABILITY IMPERATIVE - KEYS - A WEBINAR SERIES BY IPSOS 28th April 2022
THE
SUSTAINABILITY
CONTEXT

The Current Dynamic
THE SUSTAINABILITY IMPERATIVE - KEYS - A WEBINAR SERIES BY IPSOS 28th April 2022
Climate Change
         #1 value uniting the world

         77% “have already
         noticed” the effects of
         climate change
Climate Change
Q: Here is a list of some
things that some people
worry about these days.
To what extent, if at all,
have you worried about
each one in the last 2-3
weeks?
Amongst the                                                              Area of concern                  A great deal / fair amount                                 A little         Not at all

things that people                                                  Your health and your family’s
                                                                                           health
                                                                                                           61%                                                                  26%        8%

worry about,                                                                       War or terrorism        57%                                                            25%             12%

climate change is                                                     Not having enough money              52%                                                         27%                14%

moderate                                                         People behaving in a way that is
                                                                      nuisance / disrespectful to…         52%                                                         29%                12%

amongst other                                                           The COVID-19 pandemic              51%                                                        30%                 14%

concerns
                                                                     Education and prospects for
                                                                      children and young people            50%                                                        25%                 14%

                                                                                              Crime        50%                                                       27%                  15%

                                              8th                                  Climate change          48%                                                       31%                  15%
                                                                         Protecting children from
                                                                     pornography on the internet           47%                                                      21%                   18%

Global Country Average                                                Inequality or discrimination         46%                                                      29%                   18%

Q. Here is a list of some things                                                    Unemployment           44%                                                  25%                       20%
that some people worry about
these days. To what extent, if at                                   How things are going at work           38%                                                 27%                        18%
all, have you worried about each
                                                                                        Growing old        36%                                                35%                         22%
one in the last 2-3 weeks?
                                                                      Relations with your partner          31%                                           23%                              28%

                                                                        Drink and drug problems            28%                                          21%                               32%
    © Ipsos | Earth Day 2022 | April 2022 | Version 1 | Public      Base: 22, 534 online adults aged 16-74 across 30 countries, 18 Feb – 4 Mar 2022..
7   use                                                             Results here .
THE RETURN OF INFLATION

                                        #1 worry worldwide = Inflation
                                        7 nations (ARG, CAN, GER, UK, POL, TK, US) have it at #1
                                        26/27 countries more worried than last month
8‒   © Ipsos | What Worries the World
THE
SUSTAINABILITY
CONTEXT

Organisation Matters

© Ipsos | What Worries the World
WHAT MATTERS TO CEOs:
 AN EVOLVING LANDSCAPE
 Now, thinking broadly about businesses in general, what are the most important
 factors you take into account when making your judgement about organisations?

38                 36                                                36
         33
                                                     31                                         30        30
                                                                              29     28
                                                                                                                  24                        24
                                             21                                                                                                                 21
                                   17                                                                                                17

                                                                                                                             10                         11

                                                                                                                                                   2

   Financial strength/                   Business values/                Reputation/ brand          Quality of management/        Sustainability      Social
      performance                         ethics/honesty                                                  Leadership                               responsibility

    Base: British Captains of Industry (107); Interviewed May – August 2021        2018      2020          2021

10 ‒ © Ipsos | KEYS webinar April 2022
THE E-S-G AGENDA

Environmental
Social
Governance

© Ipsos | Ben Page presentation H&W@W | March 2022 | Version 1 | Internal Use Only
THE E-S-G AGENDA

                                                                                                                36%
                                                                                     &
                                                                                                                                   % saying
                                                                                                                38%                “most
                                                                                                                                   important”

                                                                                                                26%
                                                                                         Q: When it comes to the role of multi-national companies
                                                                                         in corporate responsibility how important are each of the
                                                                                         following areas? Please rank the below areas where 1 is
© Ipsos | Ben Page presentation H&W@W | March 2022 | Version 1 | Internal Use Only       most important and 3 is least important.
                                                                                         Source: Ipsos Global Advisor
CASE STUDY:
                                                                                      Global Business
                                                                                      Influencers,
                                                                                      Europe

     © Ipsos | Coffee Talk with Country Managers, 19 April 2022 - Internal Use Only
13
THE
SUSTAINABILITY
CONTEXT

     Taking
     Action
                                                                     Download the 31-country report

14   © Ipsos KEYS
             | EarthWebinar
                    Day 2022April
                             | April
                                  2022
                                     2022 | Version 1 | Public use
COMBATTING CLIMATE CHANGE:
A Shared Responsibility…
Globally, the public believe that governments, businesses and individuals need to play
                                                                                                                      Download the 31-country report
their part, or risk failing others.

A Global Country Average of 70%                                       68% say that if businesses do        68% say that if their national
agree that if individuals do not                                      not act now to combat climate        government does not act now to
act now to combat climate change                                      change then they are failing their   combat climate change then it is
they will be failing future                                           employees and customers.             failing citizens.
generations.

15   © Ipsos | Earth Day 2022 | April 2022 | Version 1 | Public use
Taking action

71% say “I know what to
do on a personal level” to
fight climate change
(But do we really?)
 Source: Ipsos/EDF International Observatory on Climate change and Public Opinion

16                 © Ipsos | JTI presentation | March 2022 | Version 1 | Internal Client Use Only
True rank for

Q: Which three of                                                   Public perceptions                                                                                                          reducing emissions

the following                                                                                                            Recycling           49%                                                             60
actions, if any, do                                                    Switching to purchasing renewable electricity                         30%

you think would                                                                                                  Less packaging              28%

have most impact                                                          Buying fewer items, or more durable items                          22%

on reducing                                                                                           Shift to public transport              22%
greenhouse gas                                                     More energy efficient cooking equipment, using
                                                                                                                                             21%
                                                                                  cleaner fuel or renewable energy
emissions?                                                           Fuel efficient driving practices (e.g. using the
                                                                                                                                             16%
                                                                            correct gear, and driving more slowly)

Global Country Average                                                             Growing or producing your own food                        16%

                                                                              Refurbishing and renovating housing for
                                                                                                                                             15%
                                                                                                           efficiency

                                                                                                                   Living car-free           15%

                                                                                                           Having a vegan diet               7%

                                                                    Having smaller living spaces / or co-housing to
                                                                                                                                             5%
                                                                                                   fill empty rooms

Download the Earth Day                                                                                           Not having pets             4%
“Perils of Perception” report
                                                                  Base: 23,577 online adults across 31 countries, 18 Feb – 4 Mar 2022. NB surveyed adults aged 16-74 in 30 countries, adults aged 16-99 in
     © Ipsos | Earth Day 2022 | April 2022 | Version 1 | Public   Norway. *Source: Ivanova et al., 2020. Quantifying the potential for climate change mitigation of consumption options. Available here:
17   use                                                          https://iopscience.iop.org/article/10.1088/1748-9326/ab8589/pdf
True rank for

Q: Which three of                                                   Public perceptions                                                                                                          reducing emissions

the following                                                                                                            Recycling           49%                                                             60
actions, if any, do                                                    Switching to purchasing renewable electricity                         30%                                                             4
you think would                                                                                                  Less packaging              28%                                                             38
have most impact                                                          Buying fewer items, or more durable items                          22%                                                             46
on reducing                                                                                           Shift to public transport              22%                                                             5
greenhouse gas                                                     More energy efficient cooking equipment, using
                                                                                                                                             21%                                                             9
                                                                                  cleaner fuel or renewable energy
emissions?                                                           Fuel efficient driving practices (e.g. using the
                                                                                                                                             16%                                                             34
                                                                            correct gear, and driving more slowly)

Global Country Average                                                             Growing or producing your own food                        16%                                                             23
                                                                              Refurbishing and renovating housing for
                                                                                                                                             15%                                                             6
                                                                                                           efficiency

                                                                                                                   Living car-free           15%                                                             1

                                                                                                           Having a vegan diet               7%                                                              7
                                                                    Having smaller living spaces / or co-housing to
                                                                                                   fill empty rooms
                                                                                                                                             5%                                                              31
Download the Earth Day                                                                                           Not having pets             4%
                                                                                                                                                                                                             25
“Perils of Perception” report
                                                                  Base: 23,577 online adults across 31 countries, 18 Feb – 4 Mar 2022. NB surveyed adults aged 16-74 in 30 countries, adults aged 16-99 in
     © Ipsos | Earth Day 2022 | April 2022 | Version 1 | Public   Norway. *Source: Ivanova et al., 2020. Quantifying the potential for climate change mitigation of consumption options. Available here:
18   use                                                          https://iopscience.iop.org/article/10.1088/1748-9326/ab8589/pdf
THE
SUSTAINABILITY
CONTEXT

Uncertainty
Changing Language
Desire for Action

© Ipsos | Earth Day 2022 | April 2022 | Version 1 | Public use
SHIFTS AND
                                                SENTIMENTS IN SEA
                                                           Usana Chantarklum
                                                                  April, 2022

© Ipsos | 2022 | Shifts and Sentiments in SEA
Country in
  Focus
 Indonesia
 Malaysia
 The Philippines
 Singapore
 Thailand
 Vietnam
1

GROWING CONCERNS
ABOUT CLIMATE CHANGE

© Ipsos | Global Trends Presentation | January 2020 | Version 1 | Strictly Confidential
NEARLY

  of South East Asian (SEA) consumers agree that
                                                                          90%
Climate Change is a serious THREAT to the economy
                 and quality of life
 © Ipsos | Doc Name | Month Year | Version # | Public | Internal/Client Use Only | Strictly Confidential
of Thais agree that “we are heading for
                                                   93%             Global Country Average: 83%

              environmental disaster unless we
                 change our habits quickly.”
  24 ©Global
Source:
        Ipsos | SEA Ahead: Shifts & Sentiments
               Trends Survey 2021, Sample for Thailand, n=1,000.
Climate change is ALREADY impacting
  on our environment, impacting our
 country’s productivity and well-being
The Key Causes for Climate Change are mainly due
to Human Activity, so considering the Seriousness
     of the Concern, do we need to Do More?
THERE IS A CLEAR EXPECTATION THAT
BUSINESSES ARE INVESTING IN
SUSTAINABILITY…NOW.

                       71%
of Thais agree that ‘if businesses do not act now to combat climate change,
they will be failing their employees and customers.’
A WAKE-UP CALL FOR THE
SUSTANABILITY AGENDA
Young consumers are willing to play a
part in sustainability because they care
for the environment
We are seeing a commitment to
developing sustainable approaches for the
  environment among both “Global” and
        “Local Giant” Companies

    For example: Roadmap to Net Zero
Increased renewable energy   Reduce water withdrawal in   Reused and Recycle
       consumption              water-stressed area           Packaging
THE KEYS
ABOUT SUSTAINABILITY IN SEA

1. Clear Sustainability Programs and
Initiatives in SEA are now Table Stakes.

2. STORY-DOING is More Important than
Story-TELLING.

3. PROVE Your Impact to a Discerning
and Questioning Public.
 © Ipsos
THANK YOU

                                                   Usana Chantarklum
                                                          April, 2022

© Ipsos | 2022 | Shifts and Sentiments in SEA
IPSOS ESSENTIALS
Understanding how people deal with
environmental concern

 Chris Murphy
Where you live impacts what you prioritize
                                                                Top Concerns – First or Second Priorities

                    Rising Prices / Inflation                           The COVID-19 Pandemic                               The Conflict in Ukraine

      35 © Ipsos 2022
Q: There are a number of challenges we may face today. Which of these concerns you the most? Q: Of the items remaining, which of these concerns you the most?
Base: Global Country Average: 10521, AU:502, BR:500, CA:1003, CN:500, FR:1002, DE:501, IN:1000, IT:501, JP:503, MX:502, ZA:502, SK:501, ES:501, UK:1002, US:1001
Many are in survival mode:
2 in 3 are concerned about being able to pay their bills

  “Oh my god. My son left his light    “Inflation is seriously insane. Gas      “The price of vegetables in
   on all day. So that’s just money   prices are almost $5 a gallon… it’s    Shanghai is two-to three-fold more
    going down the drain isn’t it?”             more than doubled.            than usual. So far, I have been
                                                                             quarantined due to lockdown for 7
                                       The biggest stress of my life is
                                                                              days. The first pressure now is I
                                      money. I am always worried how I
                                         am going to pay the bills.”         can’t earn money in this situation.
                                                                               The second is how to survive.”

 36 © Ipsos 2022
In that context….
        Environmental concerns are less pressing in the moment
       Top Concerns – First or Second Priorities
           Environment / Climate           Inflation/ Finances              Conflict in Ukraine /social unrest /political       COVID-19 / Health             Crime and violence

         28%        23%         23%         20%        18%         17%            15%        15%         15%        14%         14%        13%         11%         10%      8%
        Fra nce    Australia    India     Germa ny     China        Italy      South Korea   Canada      United       US       Me xico      Spain   South Africa   Brazil   Japan
                                                                                                        Kingdom

                                                                                             * Multi mention question may total to more than 100%
     *Wave 57 Feb 10-13 2022 Global Country Average 10530

     Q: There are a number of challenges we may face today. Which of these concerns you the most? Q: Of the items remaining, which of these concerns you the most?
               © Ipsos
     Base: Global      2022
                  Country Average: 10521, AU:502, BR:500, CA:1003, CN:500, FR:1002, DE:501, IN:1000, IT:501, JP:503, MX:502, ZA:502, SK:501, ES:501, UK:1002, US:1001
37
I added
     Still…underneath our immediate worries,                                                                                         heading.

     a long-term unease lingers

83%
“We are heading for environmental
disaster unless we change our habits
quickly”

     38    © Ipsos 2022
38   Source: Global Trends Survey, 24,332 adults aged 16-75 (18-75 in US and CA) in 25 markets interviewed August - September 2021
Leveraging our global Essentials survey, we
     have begun to classify like-minded citizens

39
Groups emerge across a continuum based on passion for the environment
…along with a sense of urgency
Disengaged                                   Conflicted
 Denialists              Skeptics           Contributors          Pragmatists          Activists

                   “The environment is at a critical stage – the world must act now”

       26%                  36%                45%                  56%                66%
 40 © Ipsos 2022
Taking them one by one….

Disengaged                               Conflicted
 Denialists              Skeptics       Contributors    Pragmatists        Activists

                   19%           16%             18%              29%             17%

                     How they feel: Degree of concern & sense of urgency

 41 © Ipsos 2022
What they Do
Doctor Do Little, Good Intentions, and Walking the Talk

Disengaged Denialists                    Low Impact Pragmatists

                                                          85% Use low energy light bulbs

                                                          83% Recycle as much as possible

X Recycle as much as possible
                                         High Impact Activists
X Use low energy light bulbs

X Not driving/having a car
                                                          64% Not driving/having a car
X Eating a mostly plant-based diet
                                                          58% Eating a mostly plant-based diet

42 © Ipsos 2022
“Generally, brands need to think
     about sustainability as a co-benefit
     …not ‘the’ benefit”

                                  Dr. Pippa Bailey
                                  Head of Climate Change &
                                  Sustainability Practice UK

                 © Ipsos 2022
43 © Ipsos | Essentials Report March 10 to 13, 2022, Fieldwork: For the Exclusive Use of Subscribers
Recap & Implications for Brands
 Even as we attend to the urgent priority of near-term survival, environmental impact
 is on the rise as a brand driver.

 We can apply “co-benefit” thinking by segment

  Denialists           Skeptics           Conflicted        Pragmatists        Activists

Some potential when environmental impact is positioned as          Will pay premium
                a (secondary) co-benefit

   44 © Ipsos 2022
THE SUSTAINABILITY
              OPPORTUNITY

Ipsos Keys Webinar
Youmna Ovazza – April 28th, 2022

     © Ipsos | Doc Name
Sustainability:
          Introducing the
       consumer perspective

46 ‒
To create value for the business from Sustainability,
 companies must expand their perspective to the Outside-In
 perspective of consumers

                     •   Complying with
                         regulations
                                              « Say-Do »   •   I buy the product or
   Inside-Out                                    Gap           service that better meets       Outside-In
   perspective       •   Managing impact on                    my immediate need               perspective
(the Company view)         • Sourcing &            =                                        (the Consumer view)
                                                           •   I buy what I can afford to
                             Suppliers        Citizen vs       buy as well!
                           • Operations
                           • HR               Consumer
                           • Governance…
                                              Value Gap

         47 ‒
How can businesses create
          consumer value with
             sustainability?

48 ‒ © Ipsos | Doc Name
Inspiration for
                  • Digital has transformed
    action          companies over the past 20
                    years

  The Digital     • What we learned along the way
                    can inspire how to approach
Transformation      sustainability

     case
 49 ‒
Key drivers for change

                                                             Engaging
                                  Owning a      Cross-
 Offer-     Valuable   Test and                             Employees
                                  Specific    Functional
 Driven    Use Cases    Learn                              and Partners
                                  Territory     Vision

    50 ‒
Focusing on 3 drivers today for illustration

                                                              Engaging
                                  Owning a       Cross-
 Offer-     Valuable   Test and                              Employees
                                  Specific     Functional
 Driven    Use Cases    Learn                               and Partners
                                  Territory      Vision

    51 ‒
It’s all about the offer,
Offer-    not the demand:
Driven

          Need for business proactivity

   52 ‒                                   52 ‒
The Digital Transformation Case

                 Consumers didn’t expect
                 the Internet, mobile
Offer-driven

                 phones, the iPhone,
                 social networks and
                 Youtube… as well as they
                 didn’t expect cars

                 53 ‒
What does it mean on Sustainability ?

                         Companies need to be proactive and start first
Offer-driven

                              Do not wait for consumer
                              expectations, they don’t
                                       know!

                  54 ‒
Inspiring example: Beyond Meat

                   Beyond Meat develops
                   plant-based burgers,
                   sausages, meatballs…
Offer-driven

                 55 ‒
Gadget offerings don’t work:

 Valuable   Real value doesn’t come « on
Use Cases
            top », it must be by design for
            consumers to buy and use the
            product/service repeatedly

     56 ‒                                     56 ‒
The Digital Transformation Case

                       Mobile data and
Valuable Use Cases

                       internet traffic didn’t
                       take off until the
                       iPhone launch in
                       2007
                                                 1st smartphone with Internet
                                                 access – Nokia, 1996

                       57 ‒
What does it mean on Sustainability ?

                       Do not focus on Sustainability as a goal but as a MEANS
Valuable Use Cases

                                   to better address core &
                                   unmet consumer needs

                        58 ‒
Inspiring example:Tommy Adaptive, by Tommy Hilfiger
Valuable Use Cases

                         “80% of customers who
                     purchased from our Adaptive line
                      were new. That led to additional
                       purchases. Just because they
                       bought an adaptive shirt didn't
                     mean they needed adaptive pants.”

                       59 ‒
Engaging
 Employees
               Training and engaging
and Partners   employees and business
               partners

      60 ‒                              60 ‒
The Digital Transformation Case
Engaging employees and partners

                                   External consultants or experts can
                                   help you move fast first, but you
                                   won’t get far without training
                                   and engaging employees & key
                                   partners in your ecosystem, as
                                   changing ways of working and          Shifting the business model from a paper
                                                                         catalog losing money in 2014 to a
                                   processes is a key success factor.    profitable online e-commerce business in
                                                                         2017 involved a huge internal
                                                                         transformation, engagement (16%
                                                                         shares for the employees) & training
                                                                         program
                                    61 ‒
What does it mean on Sustainability ?
Engaging employees and partners

                                            Start joint initiatives with key partners

                                                Involve employees & partners
                                               in your sustainability roadmap
                                                     to build engagement

                                     62 ‒
Inspiring example: Back Market
                                  Online marketplace specialized in repackaged electronic goods.
Engaging employees and partners

                                    1200+ resellers.

                                    Their selective reseller quality
                                    criteria & independent evaluation on
                                    environmental & social practices by
                                    a Certifying organism are driving
                                    more premium brands to work
                                    with them (Dyson, Bosch,
                                    Marshall or Apple via
                                    Brightstar/Likewise).

                                    63 ‒
3 learnings to build on

    1. Sustainability is an OPPORTUNITY for businesses to create value
                      through consumer-centric innovation

  2. Sustainability should be embedded BY DESIGN, as a means to create
                         different products/services

    3. 20 years of digital transformation have taught us a few lessons we
           can build on to inspire unique sustainability approaches

   64 ‒
Thank you.
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