As the cost-of-living crisis remains relentless, consumers are increasingly being forced to cut costs wherever possible. The unfortunate consequence of this is that environmental impact falls to the wayside as a deciding factor for many shoppers.

Of course, the cost-of-living crisis has been dominating the news for some time now as the most significant macroeconomic shift of recent decades. But at the same time, the sustainability crisis is no less dire. Environmental consciousness remains high – the Office For National Statistics’ most recent study into climate anxiety found that almost 75% of adults are worried about climate change.

So, it’s not that consumers don’t care, it’s that they need help to make sustainable choices more accessible. It’s down to businesses to make this happen – so where should they start?

Sustainability vs saving.

As inflation has skyrocketed, it’s pushed sustainability down the agenda for consumers and businesses alike. Sustainability is increasingly viewed as a ‘nice to have’ – that is, if it’s affordable.

We’re living through an age when environmental awareness is arguably higher than ever: the work of various environmental activist groups is a mainstay in global news, and almost 90% of adults in Great Britain have made changes to their lifestyle in response to environmental issues. It’s clear that consumers care about sustainability, but their hands are tied.

A recent survey by Paragon reflects this. Looking at the various factors which determine customers’ purchasing decisions, the report found that the importance consumers place on price has increased in comparison to pre-pandemic levels. Consumers have evidently become more conscious of their spending and are looking to cut back. Along with this, the importance of quality as a key factor influencing purchases has decreased as consumers prioritise lower costs. This provides useful context for assessing how attitudes towards sustainable shopping have evolved.

While cost beats sustainability as a top consideration, the attention that customers pay to sustainability has reduced less than other factors. Particularly, Gen Z consumers (aged 18-24) are the most likely to choose sustainable products over less sustainable but otherwise similar options. This is despite having lower purchasing power than older demographics.

Evidently, and despite financial pressures, sustainability is still on young consumers’ minds.

A strategy for the future

Sustainability initiatives and campaigns seek to inspire individuals to take action and do their bit for the environment – like carpooling or taking public transport where possible. But it’s easy to get discouraged by the factors that are beyond the control of the average consumer. The truth is that while everyone can make a difference, the carbon emissions generated by the average working adult in the UK do not compare to the footprint of a large international company, or a frequent private jet flyer.

While consumers are finding the cost of sustainable purchasing prohibitive, it seems like the worst damage is being done by those who have the means to make a large-scale change. According to insights from The Behavioural Insights Team, 86% of UK consumers want to see the government​ and businesses do more to help make sustainable choices. In order to organise around a common purpose and make tangible progress on net zero goals, we all need to be on the same path – and this requires strong frameworks and reporting.

Taking action

In light of this, upstream sustainability initiatives are the way forward. When we talk about the ‘upstream’ part of a supply chain, we’re referring to the activities and processes taken on by a business organisation’s suppliers.

For a full and accurate picture of a company’s emissions, and their progress (or lack of progress) towards net zero and other long-term sustainability goals, understanding the emissions produced by every part of the supply chain is essential. But this is also where it gets very complicated. According to the Greenhouse Gas protocol, a company’s emissions fall into three scopes.

Scope 1 emissions are directly produced by owner or controlled sources, Scope 2 emissions are indirect from the generation of purchased energy, and Scope 3 catches all indirect emissions which are not included in Scope 2 but are generated in the company’s value chain. This makes Scope 3 both an unwieldy category, and one which absolutely needs close attention.

However, while the UK government requires large UK companies to disclose their emissions for Scope 1 and 2, Scope 3 reporting is generally voluntary. For customers wanting to make more sustainable choices, this is a problem.

In order to meet the needs of these customers, businesses need to take matters into their own hands to show their customers how they’re providing sustainable choices for products and services.

In response to enhanced emission reporting, marketers can take action to reflect consumer demands. This might look like adopting a standardised approach to green-labelling. Much like nutritional information is printed on the packaging of food products, information breaking down the emissions attached to a product, shown in a ‘traffic-light’ scale, would empower consumers to make informed decisions quickly and easily.

Next steps

As the cost-of-living crisis shows no signs of going away anytime soon, businesses can’t afford to allow sustainability progress to stall. Business success depends on balancing customers’ need for affordable and sustainable options at once. Based on this, businesses should develop a marketing strategy which closely aligns with a robust and measurable sustainability framework, gearing towards building consumer confidence in their sustainability credentials even as lower-cost options appear tempting.

• Paragon Customer Communications integrates leading-edge technology and expertise to transform the way brands communicate with their customers.