American Consumers care about sustainability

Businesses highlight their support towards sustainability goals by highlighting their contribution towards environmental, social, and governance (ESG) initiatives.

ESG initiatives refer to the actual contribution made by businesses in achieving sustainability goals such as reducing carbon emissions across value chains, offering fair wages and working practices to employees, and supporting diversity and inclusion.

This point of view focuses on ESG in the context of consumer-packaged goods (CPG) market of United States of America, which is a whopping $2 Trillion Market and growing. The decision points considered are:

• Do consumers really care for ESG related claims and are willing to pay more?
• Do consumers prefer to buy ESG labelled products over non-ESG labelled products?
• Is there a clear trend?

This point of view further explores opportunities for businesses and retailers in ESG claims. There are few clear take aways:

1. ESG-related claims can play an important role in both NEW and EXISTING products.
2. Ensure that ESG product claims support an overall ESG strategy with a meaningful environmental and social impact across the portfolio
3. Inform customers of those actions, including information conveyed through product label claims
4. Develop a product design process that embraces ESG-related claims alongside keeping costs under control

And lot more to know!