How Businesses Can Lead on Climate Action and Sustainability
As governments develop policies and programs to address climate change, businesses are also stepping up to tackle environmental and sustainability challenges. This responsibility has become increasingly important, with Deloitte's research indicating that 2020 marked a turning point for activism in both society and the corporate world.
Following the COVID-19 pandemic, 40% of the general public reported a greater likelihood of engaging in social issues, with many altering their purchasing habits and encouraging others to do the same. The GetOutInFront global research report, which surveyed nearly 10,000 individuals across six countries in January 2020 and followed up in May, highlighted these shifts in consumer behavior.
In an era of growing activism, the findings reveal that consumers expect businesses to play a more active role, particularly on environmental and climate-related issues. Organizations can stay ahead by monitoring public sentiment and adapting their strategies accordingly. This approach not only strengthens risk resilience but also fosters customer loyalty and drives revenue by aligning business actions with stakeholder values.
The Rise of Activism
Recent years have seen the public increasingly vocal about environmental, social, and cultural concerns, with a notable 38% of respondents actively participating in causes—such as signing petitions, attending protests, or donating—over the past year. This surge in activism has been fueled by social media, which connects like-minded individuals, and the influence of younger generations like millennials and Gen Z, who prioritize climate change and environmental protection.
Deloitte's GetOutInFront research underscores consumers’ commitment to sustainability and its implications for businesses:
Following the COVID-19 pandemic, 40% of the general public reported a greater likelihood of engaging in social issues, with many altering their purchasing habits and encouraging others to do the same. The GetOutInFront global research report, which surveyed nearly 10,000 individuals across six countries in January 2020 and followed up in May, highlighted these shifts in consumer behavior.
In an era of growing activism, the findings reveal that consumers expect businesses to play a more active role, particularly on environmental and climate-related issues. Organizations can stay ahead by monitoring public sentiment and adapting their strategies accordingly. This approach not only strengthens risk resilience but also fosters customer loyalty and drives revenue by aligning business actions with stakeholder values.
The Rise of Activism
Recent years have seen the public increasingly vocal about environmental, social, and cultural concerns, with a notable 38% of respondents actively participating in causes—such as signing petitions, attending protests, or donating—over the past year. This surge in activism has been fueled by social media, which connects like-minded individuals, and the influence of younger generations like millennials and Gen Z, who prioritize climate change and environmental protection.
Deloitte's GetOutInFront research underscores consumers’ commitment to sustainability and its implications for businesses:
- Environmental priorities: Recycling, reducing single-use plastics, and combating air pollution are top concerns for 64% of consumers, with reducing carbon emissions being a nearly universal focus across countries.
- Growing importance of issues: Over 60% of respondents are more concerned about extreme weather patterns than the previous year, with 74% expecting this issue to become even more critical.
- Brand loyalty and revenue: Businesses addressing environmental concerns have an advantage, as 23% of consumers are willing to switch to brands aligned with their values. Additionally, 42% have adjusted their consumption habits, and 21% have encouraged others to support value-driven companies.
Younger consumers are particularly influential, with those aged 18-24 being three times more likely than those over 65 to choose brands based on shared values.
Building Resilience and Reputation
As consumer activism grows, businesses face mounting pressure to respond. Two-thirds of survey respondents believe CEOs should take stronger action on societal issues, including carbon reduction, air pollution, and sustainable supply chains.
To demonstrate accountability, businesses can take several steps:
Building Resilience and Reputation
As consumer activism grows, businesses face mounting pressure to respond. Two-thirds of survey respondents believe CEOs should take stronger action on societal issues, including carbon reduction, air pollution, and sustainable supply chains.
To demonstrate accountability, businesses can take several steps:
- Strengthen reputational resilience: Companies must gauge public sentiment on key issues and adjust swiftly to protect their reputation.
- Leverage corporate affairs: By collaborating with marketing, corporate affairs teams can transform environmental, social, and governance (ESG) reporting into relatable narratives for consumers.
- Embed social issues into brand strategy: Brands should evaluate long-term viability by considering both consumer and societal sentiment, ensuring they address the needs of all stakeholders.
- Prioritize meaningful actions: Authentic and credible efforts to address consumer values can significantly influence a company’s reputation, as performance and behavior are key drivers of public perception.
Deloitte's research highlights the growing demand for businesses to align with societal values, presenting opportunities to build trust, foster loyalty, and contribute to a more sustainable future.
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