Corporate News

RSA's Green Appetites Report

Report summary:

• Emerging markets such as China show a greater interest in sustainable business and green behaviour
• Emerging countries are much more willing to pay eco-premiums on products or services
• The use of reusable plastic bags is viewed as a critical sector for the environment
• Global consumers are in agreement that buying energy efficient electronic goods would help minimise their environmental impact
• Consumers are not prepared to choose eco-holidays (including not flying or carbon offsetting travel) to minimise their environmental impact

Consumers in China and many other emerging market countries show more concern about the environment compared to western consumers, according to a report from global insurer, RSA. Measuring attitudes towards sustainable business and green behaviour, RSA's Green Appetites Report surveyed consumers across nine global markets about their concerns and habits, finding emerging countries, Chile, China and the United Arab Emirates, were much more willing to pay a premium for more environmentally friendly products or services.

While Chinese consumers showed they were most willing to pay a 5-10% eco-premium, Western countries, including Canada, France, Germany, Denmark, Sweden and the United Kingdom, were generally only willing to pay a 1-5% premium for a greener product or service, if at all. Chinese consumers were the most willing to pay eco-premiums, with 45% of Chinese respondents willing to pay a 5 %-10% premium; 30% willing to pay 1%- 5% premium; and 15% over a 10% premium.

Issues important to consumers and their businesses

China, followed by France and Canada, had the highest percentage of consumers who believed that buying reusable shopping bags was the most important environmental issue by sector. In contrast, respondents in Chile, Denmark and the United Arab Emirates agreed that the white or brown goods sector was the most important sector. 65% of Swedish residents identified the food retail sector as their main concern.

Ethical or green clothing retail was identified by the majority of European respondents as the least important sector for the environment (France 39%; Germany 37%; UK 36%; Sweden 27%). Other markets identified the tourism sector as the least impactful sector (UAE 71%; Chile 63%; China 61%; Canada 38%; Denmark 34%).

Consumer Purchasing Behaviour

Across all nine countries, respondents indicated they were most likely to buy energy efficient electronic goods in order to minimise the impact they have on the environment (China 84%; Denmark 77%; Canada 76%; Germany 75%; UK 74%; UAE 74%; France 72%; Sweden 68%; Chile 60%).

Across most countries (Canada, Chile, China, Denmark, France, Sweden, UAE, UK), respondents said they were least likely to choose eco-holidays, including not flying or carbon offsetting travel, in order to minimise the impact they have on the environment. However German respondents indicated that choosing financial services which reward ethical or green behaviour was their least likely action when trying to minimise the impact they have on the environment. While there was a diverse response by global consumers to the role of financial services and improving environmental impact, emerging market countries responded more positively towards the sector's efforts.

Commenting on the report, Dr Paul Pritchard, UK Head of Corporate Responsibility at RSA, said: "RSA's Green Appetites Report highlights consumers enduring interest in the environment despite the current downturn. It demonstrates very clearly that, while there are subtle differences, these concerns are important to consumers across many countries.

"It was also fascinating to see the issue of reusable feature so prominently. While some commentators might want to focus attention on 'big' issues such as energy or transport, it's clear that campaigns with well-explained goals, allowing consumers to get involved, can be engaging and successful. The challenge for forward looking businesses such as RSA is to try and help customers meet these aspirations in ways that can maintain or even improve product quality and service standards."

RSA takes its environmental impact seriously

As the world's leading insurer, RSA itself has been setting targets to reduce its environmental impact for a number of years. Its most recent green efforts were recognized with the Carbon Trust Standard award. Independently endorsed by the Carbon Trust in 2007/08, the award provides a clear and robust definition of good practice, and is the world's first carbon award for organisations that measure, manage and make real year-on-year reductions to their carbon footprint. RSA became the first insurer in the UK to become carbon neutral, in December 2006. By 2008, the company had cut its carbon footprint (within the scope of the Carbon Trust Standard) by 23%.

Harry Morrison, General Manager of the Carbon Trust Standard, acknowledged RSA's efforts: "Being certified by the Carbon Trust Standard is proof an organisation has taken genuine action to reduce their direct impact on climate change by cutting carbon emissions. We congratulate RSA on this achievement."