Vizeum Global Sustainability Review

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ACKNOWLEDGMENTS For the production of this booklet, we assembled some of our most outstanding Clownfish,Vizeum and Aegis Media employees to contribute their expertise and knowledge. We are extremely grateful for all of the dedication, time and energy our contributors expended in compiling this review. A sincere thanks goes to Clare Elias, who compiled all the research data and surveyed the markets. Special thanks goes to those who contributed to the copy, edits and revisions: Tara Moss, Tessa Mini, Christian Johnsen, Allison Elkies, Jordan Weil, Justin DiCosola and Mitchell Orkis. And a huge thanks to Mykal Murphree, who designed and illustrated the booklet.

CONTENTS Executive Summary

3-4

Markets Surveyed

5-6

Methodology & How To Use

7

Summary of Issues Examined

8

FINDINGS BY ISSUE

FINDINGS BY MARKET Single Markets - USA

27-30

Single Markets - France

31-34

Single Markets - Germany

35-38

Single Markets - Italy

39-42

Issue: Seeking Help & Advice - All Markets

10-11

Single Markets - Spain

43-46

Issue: Recycling - All Markets

12-13

Single Markets - Austria

47-50

Issue: Lifestyle & Health - All Markets

14-15

Single Markets - Russia

51-54

Issue: Organics - All Markets

16-17

Single Markets - Japan

55-58

Issue: Environmental Issues - All Markets

18-21

Single Markets - Australia

59-62

Issue: Fair Trade - All Markets

22-23

Citations

63-64

Issue: Climate Change - All Markets

24-25 2


EXECUTIVE SUMMARY The Global Sustainability Review

“Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” 1 Our “Global Sustainability Review” provides an overview of sustainable consumers across North America, Europe and Asia. Looking at the specific attributes of more than 100,000 individuals across the United States, France, Germany, Italy, Spain, Austria, Russia, Japan and Australia, we have found that while attitudes and concerns about sustainability vary by market and age, overarching commonalities do exist around the globe. This review serves to unearth the commonalities and differences of sustainable consumers by market.

Interest on the Rise

Around the world, curiosity in eco-friendly lifestyles is growing, as seen from year-over-year increases in interest – ranging from a spike of 22% in France to 200% in Japan between 2010 and 2011. Also on the rise is the percentage of people looking to give advice on environmental issues – to proactively take charge and guide one another toward more environmentally friendly practices.

Recycling: The most prominent theme across all markets is the notion of recycling as much as possible. Sixty-eight percent of consumers report that they actively take part in this initiative with the highest level of adherence among 55-64 year-olds. Although other age groups recycle frequently, it is evident across all markets that this key demographic is more aware of the importance of recycling and better recognizes recycling symbols. Climate Change: From a global perspective, climate change has become a pressing concern for most consumers. More than 50% of consumers in almost every country surveyed agree with the statement “I am concerned about climate change” (with the exception of the United States at 47%). Nutrition: Global consumers identify their health as a top priority, with 55% of all respondents reporting that they eat well-balanced meals regularly. These consumers are health conscious and work to obtain the right food sources with the proper nutrients for their bodies.

Underlying Confusion

While interest in sustainability is on the rise, findings show that consumers feel overwhelmed and confused by existing (and sometimes conflicting) data. People are perplexed about what eco-friendly actions to take, indicating a continued need for leadership and guidance. In Germany in 2012 for example, 40% more people reported seeking information on the environment than they did in 2010.

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Government Having Positive Impact

Governments play a substantial role in leading the charge on sustainable causes and bringing clarity to the somewhat confusing sustainable landscape. Recycling is a prime example, ranking higher in consumers’ minds than any other issue, ranging from 62% to 87%. This can be attributed to legislation and government-sponsored awareness campaigns. Despite the public nature of these initiatives, there is still a desire for companies and influencers to play a part in the recycling cause.

Gap between Interest and Action

Vizeum is encouraged by the increases we see in many eco-friendly attitudes; however, a gap remains between consumers’ interest and action. Making it easier to recycle, developing a more sustainable infrastructure and providing education are just a few of the required next steps to unite consumers to act on their interest and pursue more sustainable consumption habits.

Detailed Findings

The remainder of the “Global Sustainability Review” is broken into two sections to detail these findings. Data by topic is found on pages 10 to 26. Data by country is found on pages 27 to 63.

4


MARKETS SURVEYED

USA 21,392 France 12,211 Germany 19,933 Italy 12,603 Spain 12,603

*

“The following nine countries represent the markets surveyed

for the Global Sustainability Review. The numbers next to each country

name correspond to the number of respondents surveyed in each market.�

5


MARKETS SURVEYED

Austria 4,860 Russia 6,388 Japan 5,381 Australia 12,991

6


METHODOLOGY & HOW TO USE Data Source: The Consumer Connection System (CCS) Each year, Aegis Media fields a global 200,000 person study across 19 major markets. This study, as part of the “Consumer Connection System,� provides us with relevant data to understand 1.) consumer attitudes and 2.) how consumers take action in using media. This proprietary consumer insight study (CCS) offers a single-source measurement for consumer interaction and engagement across more than 60 media touch points to better realize consumer mindsets.

COUNTRY

It is from CCS that we analyze the data of the nine statements speaking to sustainability, first by statement (pages 9 to 25) and then by country (pages 26 to 62). The nine statements analyzed with further description can be found on the following page.

United States Segmentation We have also done a more extensive segmentation study in the US which segments the population based on their interest in sustainability. For more information about these eco-friendly US consumer segments, please contact Allison.Elkies@vizeum.com.

SURVEY SIZE

UNIVERSE

United States

21,392

Age 15-64

France

12,211

Age 15-64

Germany

19,933

Age 15-64

Italy

12,603

Age 15-64

Spain

12,603

Age 15-64

Austria

4,860

Age 15-64

Russia

6,388

Japan

5,381

Australia

12,991

Age 15-64,

Urban cities 100,000+

Age 15-64 Age 15-64 7


SUMMARY OF ISSUES EXAMINED Statements used to Determine Opinions on Sustainability Issues “I want to protect the environment but I’m not sure where to go for advice.”

“I recycle as much trash as possible.”

Measures the different outlets to go to for advice paired with diffculty in deciphering proper, credible sources of information.

Measures the adoption of recycling practices.

“I make sure I eat well-balanced meals.”

Identifies the number of respondents who believe they eat meals comprosed of differentiated healthy food sources.

“I exercise regularly.”

Determines the perceived exercise frequency of respondents.

“Organic products are healthier.”

Helps quantify the percentage of the population who believe that organic products are superior to conventional products.

“Environmental issues - advice sought.”

Measures how many consumers believe they took action to find out more about environmental issues.

“Environmental issues - advice given.”

Pinpoints whether consumers feel they offered advice on environmental issues.

“I buy Fair Trade whenever possible.”

Captures the intent to buy Fair Trade goods, not the purchase. It also helps gauge the willingness of a population to do so, as well as belief that they should be purchased.

“I am concerned about climate change.”

Measures the population’s level of concern for long-term changes to the climate.

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FINDINGS BY ISSUE

9


SEEKING HELP & ADVICE “I want to protect the environment, but I’m not sure where to go for advice.”

YEARLY COVERAGE: 2010 - 2011 & PERCENT CHANGE

2010

2011

PERCENT CHANGE

10


SEEKING HELP & ADVICE Global Insight

Curious & Confused As “green” labels and certifications proliferate, people are increasingly unsure of which products are actually the best for the environment. This uncertainty leads to frustration and a degree of negative sentiment about sustainability claims. On average, more than a quarter of individuals globally reported seeking a trusted source of environmental and sustainable product advice. Seven of the nine markets surveyed also report yearover-year increases in confusion among trusted sources regarding how to protect the environment.

Country Highlights Italy

Italians are most confused about where to go for environmental advice (49% in 2011). This uncertainty may be caused by their lack of government environmental protection programs as well as the low number of nonprofit organizations that advocate

for and protect the environment. Italians must rely on their best judgment and peer-to-peer research when it comes to helping the environment.

Japan

In comparison to the other countries, Japan has a relatively low interest in sustainability (21% in 2011). However, Japan is experiencing the highest growth among individuals who “want to protect the environment but are unsure where to go for advice.” This expansion may be attributed to the flurry of new information on select environmental issues in Japan.

*

“The number of nonprofits devoted to preserving the environment has risen faster at 4.6% growth than the total number of non-profit groups at 2.8%; yet still, consumers are unsure where to go for reliable information.” 2

11


RECYCLING “I recycle as much trash as possible.”

YEARLY COVERAGE: 2010 - 2011 & PERCENT CHANGE

2010

2011

PERCENT CHANGE

12


RECYCLING Global Insight Be Cool, Recycle

Recycling is a global issue that has been popularized by municipal, corporate and consumer interests over the past decade. It is widely recognized as important on a global scale, and respondent-level data shows that out of all statements fielded, “I recycle as much trash as possible” resulted in the most positive responses: 65% in 2011. Encouragingly, that figure is on the rise year over year. Despite steps in the right direction, 80% of what ends up in a landfill could have been recycled. While great strides have been and continue to be made, there is still much room for improvement.

Is Pay As You Throw the Most Effective Recycling Business Model?

One of the most effective ways to promote recycling is to have individuals pay a fee to dispose of waste. The Pay-As-You Throw fee (PAYT) encourages recycling throughout the European Union (EU) and also motivates manufacturers to create recyclable packaging.3 The PAYT model assesses a fee based on the amount of trash a person throws away at the local municipality or authority. Waste is then measured by weight or size and charged accordingly. Services such as recycling or composting are generally free of charge. So, the less waste you generate and the more you recycle, the less you will have to pay.

*

Country Highlights Austria

Austria is a global leader in recycling compliance and was the first country to implement individual waste charging in 1945.4 The practice of proper recycling has been ingrained in Austrian society and is reflected in the survey data – Austria leads the pack of global consumers with 79% saying they recycle as much trash as possible.

Japan

The 9% increase in recycling by Japanese consumers from 2010 to 2011 is largely due to new recycling and waste reduction regulations. Historically, Japan has dealt with trash disposal by incineration. However, costs for burning waste have risen, so Japanese municipalities have now implemented sorting facilities for consumers to sort and recycle their trash.

Market Anomalies Russia

Russian municipalities have yet to embrace recycling. To this day, trash is dumped into landfills outside major cities. These waste sites pose dangerous threats to Russia and the global ecosystem because of the toxins that accumulate within them. Russia has yet to make strides towards turning trash into cash with a prominent recycling business.

“As global consumers, we throw away seven and a half times our body weight in trash each year.” 8

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LIFESTYLE “I make sure I eat well-balanced meals.�

Global Insight

Eating Green & Workout Machines

More than half the respondents agreed that maintaining a well-balanced diet full of nutrient-rich fruits and vegetables is very important. These same citizens have also paired healthy eating habits with regular exercise, indicating they are well informed about how to lead a healthy lifestyle.

YEARLY COVERAGE: 2010 - 2011 & PERCENT CHANGE

2010

2011

PERCENT CHANGE

In every country surveyed, respondents reported an increased desire to eat healthy and exercise regularly. Consumers are better educated than ever before on the benefits of a healthy lifestyle, possibly because of increased access to online resources. These individuals set fitness goals, obtain healthy recipes and get inspired by friends and acquaintances through social media. The benefits of regular exercise have been extolled over and over again (exercise helps prevent disease, controls weight, strengthens and tones, improves stamina and improves overall quality of life), and consumers in developed economies are now more active than ever.5

14


HEALTH YEARLY COVERAGE: 2010 - 2011 & PERCENT CHANGE

“I exercise regularly.”

2010

2011

PERCENT CHANGE

Country Highlights USA

The majority of American respondents report eating well-balanced meals and exercising on a regular basis. Compared to other surveyed countries, the United States has the most participation across diverse sports and has the highest number of people staying active and exercising.6 However, despite the United States’ broad fitness and sports offerings, it still has the highest percentage of overweight or obese people at 68%.

Japan

Japan was the only market whose consumers wavered in their commitment to eating healthy and exercising from 2010 to 2011. This decline may be attributed to the earthquake and tsunami of 2011, which points to the Japanese people reprioritizing their focus on rebuilding and restoring their country’s infrastructure.

*

Exercise has been shown to protect against diabetes, cardiovascular disease, osteoporosis, certain cancers and even dementia.69

15


ORGANICS “Organic products are healthier.”

YEARLY COVERAGE: 2010 - 2011 & PERCENT CHANGE

2010

2011

PERCENT CHANGE

16


ORGANICS Country Highlights Spain

Global Insight Hungry for Organics? A large number of consumers believe that organic products are better for them. Of the markets surveyed, one-third to one-half reported that they believe, “organic products are healthier.” Despite the fact that one-third of all land used to grow organic products is located in emerging countries, the United States and Europe remain the largest organic food production markets. The growth rate of organic products sold reflects individuals’ growing interest in eating organics. The industry has more than doubled in size since 2003, when global sales accounted for $25 billion.8 According to the Organic Trade Association’s 2011 industry survey, US organic sales alone (including food and nonfood products) were $28.7 billion in 2010–a 10% increase from 2009.

In 2011, Spain launched a $44 million Organic Action Plan (OAP), which had three goals: promote the development of organic farming; improve knowledge and promote the consumption and marketing of organic products, and improve collaborations and coordination of organic products.9 This 20% yearover-year increase in organic products being percieved as healthier is likely due to the OAP.

Market Anomolies Japan

Japanese consumers’ perception that organic products are healthier than the alternative increased 23% from 2010 to 2011. This increase may be due to tighter government regulation of organics through the Japanese Agricultural Standards. These laws provide uniform requirements for organic, and make them easily identifiable by a common logo.

*

“There are as much as 42 different types of pesticide residue on nonorganic apples. These pesticides are a mixture of carcinogens, hormone disruptors and neurotoxins.” 10

17


ENVIRONMENTAL ISSUES “Environmental issues: advice sought.”

YEARLY COVERAGE: 2010 - 2011 & PERCENT CHANGE

2010

2011

PERCENT CHANGE

18


ENVIRONMENTAL ISSUES Global Insight

Searching for Sustainability The number of people seeking advice on environmental issues remains relatively low, with Italy ranking highest at 32% in 2011. Yet, the rate at which consumers seek advice is increasing. While under a quarter of respondents reported seeking environmental advice, interest jumped more than 40% between 2010 and 2011 in Japan, Russia, Germany and the United States. As sustainability gains broader appeal, new thought leaders and knowledge sources are entering the conversation. This abundance of information results in consumers around the globe who do not always know where to turn for environmental advice.

Market Highlights Japan

The huge growth (200% year-over-year increase) of Japanese consumers seeking advice on the environment is likely due to recent legislation. In 2009, the Ministry of Industry substantially increased the subsidy that utilities must pay for clean electricity in the hope that private interests would drive growth in the sector.12 In the shadow of the Fukushima nuclear disaster, it is predicted that initiatives like this will induce Japanese consumers to go green at an ever-increasing rate.

Market Anomalies Spain

Spanish respondents were 8% less likely to seek out environmental advice in 2011 than in 2010. The Spanish government instituted a levy on fossil fuel power production in 2010 and eliminated subsidies for renewable energy at the end of 2011 in an attempt to reduce its deficit and meet austerity targets imposed by the European Central Bank. With a struggling economy, and an unemployment rate above 24%, Spanish consumers do not appear to be tolerating the increased costs of more environmentally friendly living.

*

American grocery stores carry roughly 30,000 unique products on average, while big retailers like WalMart can have up to 100,000. On top of this, there are over 300 different types of eco-labels adding to consumer confusion.11

19


ENVIRONMENTAL ISSUES “Environmental issues advice given.”

YEARLY COVERAGE: 2010 - 2011 & PERCENT CHANGE

2010

2011

PERCENT CHANGE

20


ENVIRONMENTAL ISSUES Global Insight

Building Confidence Around Green Even though sharing environmental advice is a habit of less than 20% of consumers in most markets surveyed, meaningful growth was observed in most markets. As social media becomes more embedded in our daily routine, it is no surprise that sharing advice about the environment has increased in every market – from 13% in France to 133% in Japan. From random musings and videos, to news reports and personal beliefs, people are connected and sharing like never before.

*

“There are 700 million Facebook users and half of them are logged in on any given day. Could social media be the greatest tool for spreading environmental awareness?� 13

Country Highlights Spain & Austria

Spain and Austria have dedicated time and resources at the government level to creating environmental standards, providing incentives and educating consumers. These practices appear to have increased consumer confidence in their ability to share environmental advice (83% and 20% increases respectively).

Market Anomalies Japan

Despite a 133% year-over-year increase in giving environmental advice, the total percent of Japanese citizens who report doing so is significantly smaller than in other countries. This increase is believed to be attributable to a series of government initiatives designed to make people more aware, more educated and more confident.

21


FAIR TRADE “I buy Fair Trade whenever possible.”

YEARLY COVERAGE: 2010 - 2011 & PERCENT CHANGE

2010

2011

PERCENT CHANGE

22


FAIR TRADE Global Insight

Varying Shifts in Purchase Intent On average, about one-third of survey respondents answered “yes” to buying Fair Trade whenever possible. However, we saw widely varying shifts from market to market. This divergence points to the potential influence that local efforts or regulations can have. Fair Trade is a social movement that uses collective bargaining techniques to improve the lives of smallscale producers in developing countries. Fair Trade gives farmers the tools to create viable businesses through guaranteed price floors and strength in numbers at the negotiating table. In American grocery and convience stores, Fair Trade sales grew 75% in 2011, according to the nonprofit group Fair Trade USA. 14 Coffee has had by far the greatest success as a Fair Trade product—in 2010 alone, Fair Trade USA reported that responsibly sourced coffee sales grew by 33% as compared to 2009.16

Country Highlights Austria, Italy & Germany

These three countries show the highest interest in purchasing Fair Trade when possible at 40% or higher.

Russia

We see a 67% decrease of respondents reporting they purchased Fair Trade goods in 2011. This is likely due to the need for a unified set of standards for Free Trade products in Russia. While Russian consumers understand the importance of organic, sustainable food, the lack of standards creates distrust of the category. In Russia it has been found that products can have “fair trade” stickers but do not measure up to the global standard.

*

“ More than seven million people in Africa, Asia and Latin America benefit from FairTrade: farmers, farm workers and their families.” 15

23


CLIMATE CHANGE “I am concerned about climate change.”

2010

*Question Not Included In 2011 Study.

24


CLIMATE CHANGE Our Warming Planet

Global Insights

There is growing scientific consensus that Earth’s climate is changing as a result of human activity. As the effects of climate change accelerate because of an ever-increasing amount of carbon in the atmosphere, we will inevitably be required to adapt to this new, unpredictable environment. Our ecosystem is now being reshaped by the byproducts of human achievement over the past century.

The EU Effect

As global mean temperatures continue to rise, we can only expect that weather ‘anomalies’ will become the norm. Storms are likely to be more severe, winters milder and summers hotter. Vast swathes of land may lose the ability to support human life; we can already see examples of this effect from the desertification of the Chinese interior to the decade-long drought 17 in the US southwest. As sea levels rise (predictions range between 0.5m and 1.4m by 2100) 18, coastal cities around the globe are in danger of flooding.

In the past few years, Europe has suffered natural disasters that have highlighted the effects of climate change on weather patterns. As its already struggling economy continued to sputter, Europe was struck repeatedly by bizarre weather patterns that hampered commerce and made ordinary life more difficult for entire populations. Europe has seen a notable rise in cases of extreme weather, such as massive flooding in Central Europe and the worst drought in Russia’s history. While the United States faced a minor and unseasonably warm winter, the EU was slammed by relentless blizzards and ice storms that damaged key infrastructure and iconic cultural monuments, and took many lives. 19

Country Highlights USA Skeptical about the Weather

More so than in other countries, climate change has become highly polarized and politicized in the United States. Although there is a growing consensus in the scientific community about climate change, the issue is hotly debated in the US media, causing confusion, uncertainty and apathy. Concern about climate change is loosely divided on political party lines, which has ultimately caused the United States to lag behind other developed nations in prevention activities.

*

“The global average temperature has climbed 1.4 degress Fahrenheit since the 1800s. At this rate the Arctic may have its first ice-free summer by 2040. 20

25


FINDINGS BY MARKET

26


USA Sustainable Health In the United States, healthy living is top-of-mind. Approximately half of the surveyed respondentss reported exercising regularly. Americans report seeking a balanced diet and spend significant amounts of money and time to maintain a healthy lifestyle. These consumers are willing to go beyond the basics when it comes to choosing more sustainable products: close to half of the population believes that organic products are a healthier alternative to conventional food. However, it is important to note that the US has the highest percentage of people overweight or obese at 68%.

The Delta: What’s Changed & What’s Stayed the Same Key Stats surveyed Americans report 52% ofexercising regularly.

43% believe organic products are healthier. surveyed Americans eat well-balanced 52% ofmeals.

Overall, American consumers want to do more for the environment, but financial and informational impediments diminish their ability to do so. There is an exchange of information on health and sustainability topics, but consumers still struggle for clarity. Overall: »» More people are talking about environmental issues and more people are trying to recycle. »» There is an increased desire to buy Fair Trade products now versus 2010.

»» The desire to protect the environment and the uncertainty about where to search for information has decreased slightly year-over-year. »» While many American consumers believe that organic products are healthier than the alternatives, there was no significant year-overyear change.

27


USA Reading Between the Lines

Recycling Behavior, Claimed vs Actual

Sixty-six percent of American respondents reported recycling as much as possible in 2011, up 6% from 2010. However, research points to a disconnect between recycling rates in and out of the home. It is possible that consumers take into account only products used at home when discussing recycling compliance. In 2010 for example, only 29% of plastic bottles were recycled, despite 66% of American’s stating they recycle as much as possible. 21 Certain materials such as plastic bottles tend to be consumed on the go, and many municipalities do not have public recycling options. While Americans are increasing their willingness to recycle, opportunity still exists for further improvement.

USA: Analysis by Age Looking Green

In looking at different age groups of surveyed American consumers, we see:

Implications

An important ally in sharing information about the environment or sustainable living lives within the 15 to 24-year-old consumer group.

Older & Wiser

Fifty-two percent of American consumers report that they exercise regularly.

More than half of all Americans surveyed say they exercise regularly - the highest percentage of all markets. Interestingly, there was very little variation among different age groups, but adults 55-64 were most likely to realize the importance of living a healthy lifestyle, with 59% reporting regularly eating well-balanced meals.

Implications

Adults 55-64 understand the importance of healthy living. As parents and grandparents, these consumers may be able to influence younger generations’ exercise habits and eating choices as they lead by example.

»» 41% increase in the belief that organics are healthier than alternatives among 35-54 yearolds.

»» Adults 55-64 report the highest agreement with eating well-balanced meals, yet they are least likely to believe that organic products are healthier.

Young & Keen

Forty-nine percent of consumers 15-24 believe that organic products are healthier than conventional food.

Consumers from this demographic are the most likely to both give and seek environmental advice. This may be a function of school programs and exposure to organics at an earlier age. 28


USA: ALL AGE GROUPS Issues

AGE 15-64

YEARLY COVERAGE: 2010 - 2011 & PERCENT CHANGE

2010

2011

Percent Change

I want to protect the environment but I’m not sure where to go for advice.

25

24

-4%

I recycle as much of my trash as possible.

60

66

11%

I make sure I eat well-balanced meals.

47

52

I exercise regularly.

43

52

21%

Organic products are healthier.

43

43

0%

Environmental issues: advice sought.

12

18

50%

Environmental issues: advice given.

11

16

45%

I buy Fair Trade whenever possible.

26

33

27%

10%

29


USA: AGE GROUPS Issues

Age 15-24 Age 25-34 Age 35-54 Age 55-64 2010 2011 Change

2010 2011 Change

2010 2011 Change

2010 2011 Change

I want to protect the environment but I’m not sure where to go for advice.

33

34

3%

27

28

4%

22

21

-5%

18

17

-6%

I recycle as much of my trash as possible.

50

59

18%

60

63

5%

62

69

11%

67

74

10%

I make sure I eat well-balanced meals.

41

46

10%

50

50

0%

48

52

8%

51

59

16%

I exercise regularly.

44

54

23%

47

53

13%

42

50

19%

38

52

37%

Organic products are healthier.

48

49

0%

48

47

-2%

29

41

41%

33

35

6%

Environmental issues: advice sought.

19

21

11%

13

18

54%

10

17

80%

10

16

60%

Environmental issues: advice given.

16

18

13%

13

16

23%

9

15

67%

8

15

88%

I buy fair trade whenever possible.

28

33

18%

28

37

32%

24

31

29%

24

31

29%

30


FRANCE Key Stats French consumers are concerned 65% ofabout climate change.

22% increase in environmental advice sought. 13% increase in environmental advice given. 15%

increase in exercising on a regular basis and 9% increase in eating well-balanced meals over 2010.

Seeking Solutions to Climate Change With nearly two-thirds of French consumers concerned about climate change, it is no surprise that France has charted substantial progress in controlling their emissions and reducing their impact on the environment. The direction of government policy mirrors this commitment, having pledged to reduce greenhouse gas emissions to 50% below 1990 levels by 2050.22 Other policies focus on mitigating water pollution and managing waste.

31


FRANCE The Delta: What’s Changed & What’s Stayed the Same For the French consumer, sustainability is embedded in everything: land, economy and well-being. »» More people are looking for information on environmental issues, and more people are recycling what they can.

»» More people are exercising regularly and striving for a more balanced diet.

»» Belief in organic products as healthier choice increased slightly to 42% of the population.

»» However, there was a 13% decrease of purchasing Fair Trade goods when available vs. 2010. »» The desire to protect the environment and the uncertainty of where to look remained consistent at 1/3 of the population.

Reading Between the Lines Starting Healthy Habits

As in many EU countries, eating well-balanced meals and exercising has become a priority in France. In 2011, there was a 15% increase in reported exercising as well as a 9% increase in eating well-balanced meals. Despite this increased interest in health, 27% of France’s population still smokes daily. 23

France: Analysis by Age Trends: Older Might Be Wiser

Older generations outperform their younger peers: recycling as much as possible and eating well-balanced meals. In both categories, the French report some of the highest adherence of any market surveyed, but there is a substantial drop-off as respondents’ age decreases. For example, 86% of respondents 55-64 recycle as much as possible while only 64% of 15-24 year-olds report the same. Similarly, 73% of adults 55-64 report eating well-balanced meals with a steady decline throughout younger demographics. Respondents 15-24 are 24% less likely to eat a well-balanced meal than their eldest peers.

Implications

It is clear that France’s older consumer segments understand the value of a sustainable lifestyle. However, there is a gap in participation when it comes to the younger consumer groups. To reach these younger consumers, newer content channels must be employed, such as digital and social media.

32


FRANCE: ALL AGE GROUPS Issues

AGE 15-64

YEARLY COVERAGE: 2010 - 2011 & PERCENT CHANGE

2010

2011

Percent Change

28

27

-4%

I recycle as much of my trash as possible.

74

78

5%

I make sure I eat well-balanced meals.

56

61

9%

I exercise regularly.

41

47

15%

Organic products are healthier.

40

42

5%

Environmental issues: advice sought.

18

22

22%

Environmental issues: advice given.

16

18

13%

I buy fair trade whenever possible.

32

28

-13%

I want to protect the environment but I’m not sure where to go for advice.

33


FRANCE: AGE GROUPS Issues

Age 15-24 Age 25-34 Age 35-54 Age 55-64 2010 2011 Change

2010 2011 Change

2010 2011 Change

2010 2011 Change

I want to protect the environment but I’m not sure where to go for advice.

36

29

-19%

31

31

0%

26

25

-4%

23

23

0%

I recycle as much of my trash as possible.

59

64

8%

73

75

3%

78

83

6%

81

86

6%

I make sure I eat well-balanced meals.

47

49

4%

52

57

10%

56

62

11%

68

73

7%

I exercise regularly.

43

51

19%

43

50

16%

39

44

13%

40

46

15%

Organic products are healthier.

39

40

3%

40

44

10%

40

43

8%

39

43

10%

Environmental issues: advice sought.

15

23

53%

16

20

25%

19

22

16%

17

24

41%

Environmental issues: advice given.

16

17

6%

16

19

19%

17

18

6%

15

16

7%

I buy fair trade whenever possible.

24

22

-8%

27

27

0%

34

27

-21%

37

35

-5%

34


GERMANY The Delta: What’s Changed & What’s Stayed the Same

German consumers understand that the collective actions of individuals can help make a difference and protect the environment. »» Recycling is pervasive, with 73% of respondents reporting they recycle as much trash as possible, a 6% increase over 2010.

»» Belief that organics are healthier than conventional food remained constant (34%) between 2010 and 2011, as did purchasing Fair Trade products (41%).

Key Stats believe organics 34% ofareGermans healthier.

41%

of Germans purchase Fair Trade products as often as possible.

40%

increase in environmental advice sought over 2010.

Taking Action to Do More Living a sustainable, socially responsible life is a prominent theme in Germany. After the 2011 Fukushima nuclear disaster in Japan, the German government shut down 40% of their nuclear generating capacity and pledged to phase out all nuclear power within a decade.24 Across the board, citizens actively follow government initiatives to reduce water consumption, sort garbage and save energy. 25

»» Exercising regularly increased by 5% in 2011 and eating well-balanced meals increased by 4%. »» However, more than one-fifth of Germans do not know where to find information on protecting the environment, a 16% increase from 2010.

Reading Between the Lines It appears that Germans are happy to leave the heavy lifting of environmentalism in the hands of politicians. Similar to Japanese respondents (who reported similarly low levels of seeking or giving environmental advice), Germans trust their political leadership to assess environmental risks and implement effective solutions. The government has historically been in the vanguard of environmental protection laws. In fact, many German environmental laws have been used as models for similar corresponding EU regulations. 26

35


GERMANY An Organic Debate

Germany boasts the largest domestic market for organic foods in Europe, with sales totaling 6.5 billion euros ($8 billion) in 2011.27 Yet, fewer German consumers agree with the statement “I believe organic products are healthier” than any other country surveyed. One explanation could be Germany’s narrower definition of organic products; the only difference between organic and conventional food production28 is the type of pesticides used.

Intent Recyclers

Laws enacted in the early 1990s (and subsequently amended) fundamentally29 altered how Germans dispose of waste. All households have five “garbage” bins, where waste is sorted by category. Participation is compulsory and highly effective - more than 70% of waste is recovered.30

Germany Breakout by Age Group In looking at different German age segments, there are two consistent patterns:

»» Consumers 55-64 are the most socially responsible, with the highest rates of recycling and purchasing Fair Trade products of any age demographic. »» Younger Germans 15-34 reported the highest incidence of giving environmental advice as well as the most confusion on where to go for advice.

Searching for the Environment

There was a 125% increase in searching for environmental advice among people between the ages of 15-24.

Germany has some of the strongest environmental protections of all countries surveyed. A strong lift in advice seeking among 15-24 year-olds points to young Germans’ growing willingness to protect the environment.

Implications

There appears to be an opportunity for brands to provide additional education around the benefits of sustainability especially in the key 15-24 year-old demographic.

36


GERMANY: ALL AGE GROUPS Issues

AGE 15-64

YEARLY COVERAGE: 2010 - 2011 & PERCENT CHANGE

2010

2011

Percent Change

I want to protect the environment but I’m not sure where to go for advice.

19

22

16%

I recycle as much of my trash as possible.

69

73

6%

I make sure I eat well-balanced meals.

51

53

4%

I exercise regularly.

42

44

5%

Organic products are healthier.

34

34

0%

Environmental issues: advice sought.

5

7

40%

Environmental issues: advice given.

7

10

43%

I buy Fair Trade whenever possible.

41

41

0%

37


GERMANY: AGE GROUPS Issues

Age 15-24 Age 25-34 Age 35-54 Age 55-64 2010 2011 Change

2010 2011 Change

2010 2011 Change

2010 2011 Change

I want to protect the environment but I’m not sure where to go for advice.

25

30

20%

17

26

53%

17

18

6%

18

19

6%

I recycle as much of my trash as possible.

49

54

10%

63

67

6%

75

79

5%

78

83

6%

I make sure I eat well-balanced meals.

42

44

5%

50

52

4%

52

54

4%

59

61

3%

I exercise regularly.

51

51

0%

44

46

5%

39

42

8%

37

39

5%

Organic products are healthier.

36

38

6%

32

34

6%

34

33

-3%

34

34

0%

Environmental issues: advice sought.

4

9

125%

5

7

40%

5

6

20%

4

5

25%

Environmental issues: advice given.

7

12

71%

5

11

120%

7

10

43%

8

9

13%

I buy Fair Trade whenever possible.

40

38

-5%

38

39

3%

40

40

0%

45

46

2%

38


ITALY Key Stats

76% recycle as much as possible. Italians are concerened about 77% ofclimate change. 42% buy Fair Trade whenever possible. 51% believe organics are healthier. to protect the environment but don’t 49% want know where to go for advice.

Mixed Signals

When compared to all other countries surveyed, Italian consumers are in the top percentile for recycling as much as possible, purchasing Fair Trade products and showing their concern about climate change. Nearly half of all surveyed Italians want to protect the environment but aren’t sure where to go for advice, by far the highest percentage of all surveyed markets. In addition, Italians both seek and give environmental advice more than their peers in any other country. Unlike its northern European counterparts, Italian environmental policy focuses mainly on regulating industry and utilities rather than individuals.31 As a result, people may not feel well educated on how to protect the environment and are turning to each other for advice.

39


ITALY The Delta: What’s Changed & What’s Stayed the Same »» Strong emotional ties between family and friends are the glue that binds Italian society. Since 2008, the constraint of fiscal austerity has been a new force shaping the Italian population. While Italians are trending positively in several key eco-friendly and healthy living indicators, their financial limits likely affect their perceptions of more expensive Fair Trade and organic products. »» Preference for Fair Trade goods when available remained the same year over year at 42%, while the belief that organic products are healthier slipped slightly from 52% to 51% in 2011 »» More respondents reported searching for and giving advice on environmental issues in 2011 than in 2010. Forty-four percent more Italians reported giving environmental advice than in 2010 and 28% more reported searching for it. »» Seventy-six percent of respondents agreed they were recycling as much as possible in 2011, an increase of 15% from 2010. »» While the number of people who agreed they regularly exercise increased by 15% in 2011, this number still does not exceed 50% of the population.

Italy Breakout by Age Group Different age groups of the Italian population show that: »» Older generations have a higher likelihood to recycle: Nearly 80% of adults over 35 recycle vs. 65% under 24. Almost 75% of individuals between 2434 show signs of moving in a positive direction. »» Adults 55-64 are also improving their health regimens; with a year-over-year increase of 22% in response to, “I exercise regularly.”

Trends: A Sponge for Anything Green

Twenty-four percent of consumers between the ages of 15-24 will relay environmental advice to one another, a 50% increase over 2010.

Implications

If you want a green campaign or product to spread organically, Italy provides an engaged audience.

40


ITALY: ALL AGE GROUPS Issues

AGE 15-64

YEARLY COVERAGE: 2010 - 2011 & PERCENT CHANGE

2010

2011

Percent Change

I want to protect the environment but I’m not sure where to go for advice.

46

49

7%

I recycle as much of my trash as possible.

66

76

15%

I make sure I eat well-balanced meals.

55

56

2%

I exercise regularly.

41

47

15%

Organic products are healthier.

52

51

-2%

Environmental issues: advice sought.

25

32

28%

Environmental issues: advice given.

16

23

44%

I buy Fair Trade whenever possible.

42

42

0%

41


ITALY: AGE GROUPS Issues

15 - 24 2010 2011 Change

25 - 34 2010 2011 Change

35 - 54

55 - 64

2010 2011 Change

2010 2011 Change

I want to protect the environment but I’m not sure where to go for advice.

48

49

2%

46

49

7%

46

48

4%

44

51

16%

I recycle as much of my trash as possible.

52

65

25%

65

73

12%

70

79

13%

71

83

17%

I make sure I eat well-balanced meals.

47

47

0%

53

55

4%

56

56

0%

60

63

5%

I exercise regularly.

43

49

14%

44

49

11%

42

45

7%

37

45

22%

Organic products are healthier.

51

49

-7%

54

51

-6%

52

52

0%

50

52

4%

Environmental issues: advice sought.

22

31

41%

23

33

43%

27

33

22%

27

32

19%

Environmental issues: advice given.

16

24

50%

17

22

29%

15

22

47%

18

24

33%

I buy Fair Trade whenever possible.

33

38

15%

38

-3%

44

41

-7%

49

48

-2%

39

42


SPAIN Climate Concerned Spain is one of the top two countries surveyed in their concern regarding climate change.

The Delta: What’s Changed & What’s Stayed the Same

Key Stats are concerned about climate 78% Spaniards change. giving environmental advice, an 22% report 83% increase from 2010. 48% exercise regularly.

55%

believe organics are healthier.

62% ensure they eat well-balanced meals.

We see significant increases in all key sustainability indices except for purchasing Fair Trade whenever possible and seeking environmental advice. As Fair Trade goods are perceived to be more expensive than alternatives and seeking environmental advice comes with high upfront costs (i.e. a compact flourescent light bulb is more expensive upfront than a filament bulb) it appears that Spanish consumers are trying to do what’s best for the environment but might not have the resources do it.

»» More respondents report they try to eat wellbalanced meals, and a greater number are exercising regularly versus 2010. »» More shoppers agree that organic products are healthier than in 2010.

»» More respondents report they are making every effort to recycle now more than in 2010.

Reading Between the Lines Spanish consumers seem motivated to live sustainably as the majority of the population reports recycling and eating healthy on a regular basis. Government officials also appear to be on the same page; Spain has one of the highest tax rates on energyintensive industries in the European Union.46 Both consumers and industry have a high incentive to reduce emissions.

43


SPAIN Breakout by Age Group In looking at different age groups of Spain’s population we see two distinct themes:

»» Although the percent of Spaniards who are unsure where to go for environmental advice remained relatively constant, there was a dichotomy. Adults 15-34 reported feeling less sure where to go for advice, while adults 35-64 reported more confidence in seeking out reliable sources of information.

»» All age groups reported a similar likelihood to exercise regularly (hovering just under 50%), but the propensity to eat well-balanced meals increases significantly with age.

Trends: Educate the Youth for a Sustainable Future

Only 58% of Spanish 15-24-year-olds recycle.

Younger Spaniards are recycling, but not to the same extent as their elders aged 55-64. Seventynine percent of older Spanish consumers recycle everything they can. This discrepancy could be explained by the amount of confusion on where to find environmental advice. Older Spaniards are more confident in where to go for advice while teens and young adults seem more confused.

Implications

Younger adults 15-34 are looking for credible sources for sustainable information. Organic products and recycling are areas of growth.

Organics Tie into Health

Seventy-one percent of 55-64 year-olds eat wellbalanced meals and 58% of them believe organics are healthier.

As Spaniards age, their concern for maintaining a healthy lifestyle increases. Spain has overtaken Italy as the top-producing nation of organic produce in Europe, farming on 1.25 million hectares that are certified organic. 33

Implications

Target new organic products and healthier foods to older consumers.

44


SPAIN: ALL AGE GROUPS Issues

AGE 15-64

YEARLY COVERAGE: 2010 - 2011 & PERCENT CHANGE

2010

2011

Percent Change

I want to protect the environment but I’m not sure where to go for advice.

30

31

3%

I recycle as much of my trash as possible.

63

70

11%

I make sure I eat well-balanced meals.

52

62

19%

I exercise regularly.

40

48

20%

Organic products are healthier.

46

55

20%

Environmental issues: advice sought.

24

22

-8%

Environmental issues: advice given.

12

22

83%

I buy Fair Trade whenever possible.

34

32

-6%

45


SPAIN: AGE GROUPS Issues

Age 15-24 Age 25-34 Age 35-54 Age 55-64 2010 2011 Change

2010 2011 Change

2010 2011 Change

2010 2011 Change

I want to protect the environment but I’m not sure where to go for advice.

34

37

9%

29

33

14%

30

29

-3%

30

29

-3%

I recycle as much of my trash as possible.

53

58

9%

59

65

10%

66

73

11%

70

79

13%

I make sure I eat well-balanced meals.

38

51

34%

48

60

25%

54

63

17%

67

71

6%

I exercise regularly.

39

48

23%

41

49

20%

38

47

24%

44

49

11%

Organic products are healthier.

44

50

14%

45

54

20%

47

56

19%

47

58

23%

Environmental issues: advice sought.

20

21

5%

21

20

-5%

27

22

-19%

27

25

-7%

Environmental issues: advice given.

13

24

85%

12

22

83%

12

21

75%

12

22

83%

I buy Fair Trade whenever possible.

28

29

4%

30

0%

35

32

-9%

44

38

-14%

30

46


AUSTRIA Key Stats

79% of Austrians recycle. Austrians purchase Fair Trade 47% ofwhenever possible. 50% believe organic products are healthier. 49% exercise on a regular basis. 60% make sure they eat well-balanced meals.

Healthy Bodies & a Healthy Earth Austrian consumers are global leaders in the commitment to recycling and frequently purchasing Fair Trade products. Austrians also report high levels of exercise and eating properly with high quality ingredients.

The Delta: What’s Changed & What’s Stayed the Same

Austrian consumers report high response to most sustainability indicators, except giving and seeking environmental advice. »» In 2011, 20% more Austrian respondents agreed that they want to protect the environment, but were more unsure about where to look than in 2010. »» There was a 2% increase in the number of people giving advice on environmental issues in 2011 (12% vs. 10%) and a 1% increase in the number of people seeking environmental information (10% vs. 9%).

Image

»» Recycling as frequently as possible, exercising regularly and believing that organic products are healthier than alternatives remained at or above 50%. »» Propensity to buy Fair Trade products when available was the highest of any surveyed market, but still remained below 50%.

47


AUSTRIA Reading Between The Lines Austria Is All About Fair Trade

Nearly half of the Austrian population agree they purchase Fair Trade whenever possible, more than any other country surveyed. Organizations like Fair Trade Austria are pioneering the way for Austrian consumers to truly understand the value of purchasing Fair Trade products. More educated consumers are more likely to make better informed decisions.

Austria Breakout by Age Group Looking at different age groups of Austrians we see that:

»» Although Austrians both give and seek out environmental advice in relatively small numbers (12% and 9% respectively), there are increases in the number of people under 35 who give advice, indicating growing confidence and concern among younger Austrians. »» Similar to other EU nations, older Austrians put more emphasis on both healthy habits and recycling than their younger peers.

»» The propensity to seek environmental advice declined by double digits in adults 35-54, bucking trends seen in other nations surveyed.

Sharing the Green News

Eighty-six percent more 25-34 year-olds reported giving environmental advice in 2011 although off a small base.

Younger Austrians, especially those in Generation X, may be gaining the confidence to speak on environmental matters, though they may still face issues on where to turn for reliable facts.

Implications

If you have news or advice about the environment, you may want to share it with the growing number of Austrians aged 15-34.

48


AUSTRIA: ALL AGE GROUPS Issues

AGE 15-64

YEARLY COVERAGE: 2010 - 2011 & PERCENT CHANGE

2010

2011

Percent Change

I want to protect the environment but I’m not sure where to go for advice.

20

24

20%

I recycle as much of my trash as possible.

78

79

1%

I make sure I eat well-balanced meals.

59

60

2%

I exercise regularly.

46

49

7%

Organic products are healthier.

53

50

-6%

Environmental issues: advice sought.

10

9

-10%

Environmental issues: advice given.

10

12

20%

I buy Fair Trade whenever possible.

45

47

4%

49


AUSTRIA: AGE GROUPS Issues

Age 15-24 Age 25-34 Age 35-54 Age 55-64 2010 2011 Change

2010 2011 Change

2010 2011 Change

2010 2011 Change

I want to protect the environment but I’m not sure where to go for advice.

21

27

29%

19

23

21%

19

23

21%

24

26

8%

I recycle as much of my trash as possible.

65

65

0%

75

72

-4%

82

82

0%

84

91

8%

I make sure I eat well-balanced meals.

47

52

11%

55

58

5%

61

59

-3%

71

72

1%

I exercise regularly.

43

54

26%

47

48

2%

47

48

2%

44

50

14%

Organic products are healthier.

47

50

6%

55

47

-20%

54

50

-7%

52

51

-2%

Environmental issues: advice sought.

9

11

22%

8

9

13%

11

9

-18%

12

9

-25%

Environmental issues: advice given.

10

13

30%

7

13

86%

10

11

10%

13

14

8%

I buy Fair Trade whenever possible.

34

42

24%

40

40

0%

49

48

-2%

49

58

18%

50


RUSSIA Key Stats

61% believe organic products are healthier. 46% make sure they eat well-balanced meals. to help the environment but do 35% want not know where to go.

Greener by The Minute Russians are concerned about the environment but lack direction to effect change. The number of Russian respondents seeking environmental information (22%) and giving it (18%) meets or exceeds the percentage in most countries, including those considered forward thinking in the arena. Nearly one-third of Russians want to protect the environment but don’t know where to go for advice - more than in every country surveyed except Italy. However, Russians also reported the lowest rate of recycling (29%) among all surveyed nations. Eating well-balanced meals and believing organic products are healthier ranked highest among all polled, showing that Russians are not just concerned about the environment, but about their health as well.

The Delta: What’s Changed & What’s Stayed the Same Russians are trying to improve their personal and shared spaces, and are learning from each other at increasing rates. »» More Russian respondents agreed they were seeking (50% increase) and giving advice (57% increase) on environmental issues than in 2010. »» There was a 9% increase of those who reported a desire to protect the environment, but an uncertainty where to look for information.

»» Other year-over-year metrics remain constant with over one-third of the population exercising and believing organics are healthier.

51


RUSSIA Reading Between the Lines Russia Not Recycling

As a society, Russians are not heavy recyclers. When the country was under the administration of the Soviet Union, trash was collected and taken to specially-designated dumping grounds outside of cities if regulations were followed, or deposited in forests if they were not. Russians are not used to sorting trash and are not educated to see the value in it.34 CCS data indicates that only 29% of Russians recycle. To facilitate a sea change, all socioeconomic groups would need to buy into the benefits of recycling.

Russia Breakout by Age Group In looking at different age groups of the Russian population we see:

»» There were precipitous declines across the board from 2010 to 2011 for the adoption of Fair Trade goods, especially among older generations.

Organic Demand, Fair Trade Fallacies

Russians reported one of the lowest adoption rates of Fair Trade products among all surveyed countries. This could be becuase there are no regulations on what can and what cannot be labeled Fair Trade. Russians need to be assured of credibility behind a label, something that’s proving extremely difficult because of the lack of standardization. Russians see the merit in buying food that’s sustainable and healthy; they just need a credible system to ensure that the food they purchase is as described. 35

Implications

Instituting a cohesive, uniform standard for organic foods and Free Trade certified products should release pent-up Russian demand for these goods.

Living Well, but Not Sustainably

Unlike most other countries we surveyed, adoption of healthy lifestyle choices actually drops as age increases. Adults 15-24 reported eating wellbalanced meals and regularly exercising in stronger numbers than any other age demographic. However, there seems to be a disconnect between living a healthy lifestyle and being sustainable.

Implications

Educate young adults on the importance of sustainability within the framework of living healthy. They can act as influencers to older generations.

52


RUSSIA: ALL AGE GROUPS Issues

AGE 15-64

YEARLY COVERAGE: 2010 - 2011 & PERCENT CHANGE

2010

2011

Percent Change

I want to protect the environment but I’m not sure where to go for advice.

32

35

9%

I recycle as much of my trash as possible.

29

29

0%

I make sure I eat well-balanced meals.

46

47

2%

I exercise regularly.

38

38

0%

Organic products are healthier.

61

62

2%

Environmental issues: advice sought.

14

22

57%

Environmental issues: advice given.

12

18

50%

I buy Fair Trade whenever

42

14

-67%

53


RUSSIA: AGE GROUPS Issues

Age 15-24 Age 25-34 Age 35-54 Age 55-64 2010 2011 Change

2010 2011 Change

2010 2011 Change

2010 2011 Change

I want to protect the environment but I’m not sure where to go for advice.

34

37

9%

31

37

19%

31

34

10%

33

34

3%

I recycle as much of my trash as possible.

21

22

5%

26

37

42%

33

31

-6%

36

34

-3%

I make sure I eat well-balanced meals.

42

41

-2%

45

27

-40%

47

31

-34%

52

56

8%

I exercise regularly.

43

48

12%

37

44

19%

34

33

-3%

39

30

-23%

Organic products are healthier.

57

57

0%

59

60

2%

63

62

-2%

65

67

3%

Environmental issues: advice sought.

13

18

38%

13

23

77%

14

22

57%

14

24

71%

Environmental issues: advice given.

13

19

46%

11

16

45%

11

18

64%

12

20

67%

I buy Fair Trade whenever possible.

42

19

-55%

41

17

-59%

43

13

-70%

41

10

-75%

54


JAPAN Key Stats

6%

of surveyed consumers reported searching for environmental advice in 2011, mirroring the 7% who reported giving advice.

27%

increase in purchasing Fair Trade whenever possible.

to help the environment but do 21% want not know where to go.

Infrastructure to Grow Japanese respondents report the lowest levels of seeking or giving environmental advice, as well as the lowest level of wanting to help the environment but not knowing where to turn for advice. This may be in result of significant focus on the environment by the Japanese government. The Ministry of the Environment in was established in 2001and is tasked with reducing greenhouse gas emissions, maintaining a commitment to biodiversity and conserving natural resources. In 2010, the Organization for Economic Co-Operation and Development found a strong focus on energy efficiency and climate-related research, yet identified 38 areas for improvement including consistently pricing carbon emissions and streamlining existing environmental regulations.36

The Delta: What’s Changed & What’s Stayed the Same Japanese concern ranges from the desire to eat wellbalanced meals to taking steps to recycle to conserving resources and reducing greenhouse emissions.

»» While the numbers of those who seek and give environmental advice remained below 10% in 2011, Japanese respondents claimed the largest increase of all markets surveyed (200% and 133% increase respectively). More claimed to recycle as much as possible, reaching 60% in 2011. »» There was a 23% increase in the belief that organic products are healthier from 2010 to 2011. »» Eating well-balanced meals and regularly exercising remained constant between 2010 and 2011, at 52% and 30% respectively.

Reading Between the Lines Fair Trade Is Only Beginning

In comparison to the EU and United States where 80% of consumers are aware of Fair Trade ,51 Japanese consumers are only starting to hear about and understand the concept of Fair Trade. Their interest has piqued, as the intention to purchase Fair Trade increased by 27% from 2010 to 2011. A barrier to fair trade is availability: only a limited number of products are available in Japan with total sales at approximately $18 million in 2010. 37

55


JAPAN Breakout by Age Group In looking at the different age groups of the Japanese population we see:

»» Significant increases in all age groups seeking and giving environmental advice, though the base was substantially smaller than all other countries surveyed. »» Nearly three-fourths of adults 55-64 recycle; the numbers decline progressively for younger generations, with only 41% of 15-24 year-olds recycling as much as possible in 2011. »» Concern for the environment and uncertainty about where to go for advice rose 64% for adults 55-64 from 2010 to 2011.

Implications

Fair Trade is on the rise among this key demographic. If you have sustainable or socially conscious products, consider leveraging this key Japanese audience.

Eldest Recycling

Seventy-three percent of respondents between the ages of 55-64 report recycling as much as possible.

Similar to results in other countries, this generation is taking the lead in terms of recycling.

Implications

Brands and municipalities need to explore new ways to encourage younger generations to recycle products. Current methods only appeal to a generation predisposed to be less wasteful.

»» Fair Trade is gaining traction in all age groups below 55-64.

Trends

Shopping with a Social Conscience

One hundred percent increase in purchasing Fair Trade whenever possible among 25-34 year-old consumers.

Japanese respondents 25-34 reported the highest agreement to purchasing Fair Trade products whenever possible as well as the largest year-overyear increase among any demographic. It’s important to note that compared with other countries, Japan has a relatively low Fair Trade adoption rate. As these consumers gain more disposable income, they are likely to put their yen to work in a more sustainable way.

56


JAPAN: ALL AGE GROUPS Issues

AGE 15-64

YEARLY COVERAGE: 2010 - 2011 & PERCENT CHANGE

2010

2011

Percent Change

I want to protect the environment but I’m not sure where to go for advice.

17

21

24%

I recycle as much of my trash as possible.

55

60

9%

I make sure I eat well-balanced meals.

49

52

6%

I exercise regularly.

31

30

-3%

Organic products are healthier.

30

37

23%

Environmental issues: advice sought.

2

6

200%

Environmental issues: advice given.

3

7

133%

I buy Fair Trade whenever possible.

11

14

27%

57


JAPAN: AGE GROUPS Issues

Age 15-24 Age 25-34 Age 35-54 Age 55-64 2010 2011 Change

2010 2011 Change

2010 2011 Change

2010 2011 Change

I want to protect the environment but I’m not sure where to go for advice.

24

23

-4%

19

25

32%

15

20

33%

11

18

64%

I recycle as much of my trash as possible.

40

41

3%

46

51

11%

57

65

14%

68

73

7%

I make sure I eat well-balanced meals.

36

35

-3%

43

47

9%

48

53

10%

64

67

5%

I exercise regularly.

30

28

-7%

33

30

-9%

28

29

4%

34

33

-3%

Organic products are healthier.

31

30

-3%

31

38

23%

29

37

28%

33

40

21%

Environmental issues: advice sought.

2

4

100%

1

6

500%

3

6

100%

2

6

200%

Environmental issues: advice given.

1

4

300%

3

6

100%

4

8

100%

3

9

200%

I buy Fair Trade whenever possible.

11

14

27%

8

16

100%

10

13

30%

15

15

0%

58


AUSTRALIA Moving Toward a Greener Future Australians report the highest propensity to recycle as much as possible out of all countries surveyed, and reported strong agreement to other sustainable activities, such as eating well-balanced meals and buying Fair Trade whenever possible.

Key Stats

Although close to 80% of Australians believe that the climate is changing, only 50% believe that humans are the cause.67 The federal government is taking steps to reduce Australia’s impact on the climate; however, there are high barriers. Burning coal accounts for 80% of power output in Australia, making it the top producer of greenhouse gases per capita in the world. 38

79%

of respondents recycle as much as possible.

The Delta: What’s Changed & What’s Stayed the Same

50%

of people are concerned about climate change.

27%

increase in Fair Trade purchases from consumers aged 15-24 between 2010 and 2011.

Australians surveyed reported positive growth among all key sustainable indicators in 2011, with regular exercise and buying Fair Trade goods whenever possible showing the strongest increases. »» Nearly half (48%) agree they regularly exercise, a 14% increase over 2010. »» Eleven percent more agree they buy Fair Trade products when available versus 2010.

»» The belief that organic products are healthier than alternatives increased 8% in 2011, and 57% reported eating well balanced meals.

59


AUSTRALIA Reading Between The Lines

Carbon Tax to Help the Environment?

In mid-2012, the federal government instituted a carbon tax on the 300 or so businesses that emit the most carbon. In 2015, the carbon tax will transition to a cap-and-trade plan. 39 The Australian government hopes that these policies will reduce greenhouse emissions in line with their commitments to the Kyoto Protocol and spur investment in renewable technology. 40

Australia Breakout by Age Group In looking at the different age groups of the Australian population we see: »» Across all demographics, approximately one-third reported purchasing Fair Trade products, with the largest year-over-year increase seen in the 15-24 age group.

»» The older the consumer, the more likely he or she is to recycle. Adults 55-64 reported recycling in the greatest numbers at 88% in 2011; those numbers declined through younger demographics, bottoming out at 65% for 15-24 year-olds.

Trends Fair Trade and Organic

Thirty-one percent of consumers purchase Fair Trade as often as possible, and 41% believe that organic products are healthier than alternatives.

The youngest consumer segment surveyed, 15-24 year-olds, showed a marked increase in commitment to Fair Trade, 27% from 2010 to 2011. The view that organic products are healthier than alternatives is also widespread and growing; 41% agreed in 2011, an 8% increase from 2010. Australians are also some of the most charitable consumers in terms of volunteerism (34% of the population volunteer) ,41 showcasing their commitment to social causes.

Implications

If you have a cause-oriented product, the Australian market, and in particular their younger generations, will absorb it. 60


AUSTRALIA: ALL AGE GROUPS Issues

Age 15-64

YEARLY COVERAGE: 2010 - 2011 & PERCENT CHANGE

2010

2011

Percent Change

I want to protect the environment but I’m not sure where to go for advice.

21

23

10%

I recycle as much of my trash as possible.

77

79

3%

I make sure I eat well-balanced meals.

55

57

4%

I exercise regularly.

42

48

14%

Organic products are healthier.

38

41

8%

Environmental issues: advice sought.

N/A

16

N/A

Environmental issues: advice given.

N/A

14

N/A

28

31

11%

I buy fair trade whenever possible.

61


AUSTRALIA: AGE GROUPS Issues

Age 15-24 Age 25-34 Age 35-54 Age 55-64 2010 2011 Change

2010 2011 Change

2010 2011 Change

2010 2011 Change

I want to protect the environment but I’m not sure where to go for advice.

28

30

7%

23

27

17%

19

19

0%

15

17

13%

I recycle as much of my trash as possible.

66

65

-2%

74

73

-1%

81

85

5%

85

88

4%

I make sure I eat well-balanced meals.

44

48

9%

52

54

4%

57

59

4%

68

65

-4%

I exercise regularly.

45

51

13%

43

51

19%

39

47

21%

43

45

5%

Organic products are healthier.

41

42

2%

40

45

13%

38

40

5%

34

35

3%

Environmental issues: advice sought.

N/A

15

N/A

N/A

17

N/A

N/A

15

N/A

N/A

15

N/A

Environmental issues: advice given.

N/A

15

N/A

N/A

15

N/A

N/A

13

N/A

N/A

14

N/A

26

33

27%

27

32

19%

29

30

3%

30

30

0%

I buy fair trade whenever possible.

62


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11. http://www.eufic.org/article/en/expid/review-understanding-food/

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29. http://www.retech-germany.net/english/dok/616.php

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63


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