Retail Week’s ground-breaking new reportreveals the findings of exclusive research with 1,000 UK consumers on what sustainability means to them, how it is influencing their spending and how much they care about retailers driving the ESG agenda.
H&M, Primark and Amazon are among the top five best retailers for sustainability. That is according to the results of research conducted with 1,000 UK consumers in January published today in the new report Green Is The New Black.
The report, produced in association with Infor, marks the first time Retail Week has surveyed consumers to understand the sustainability practices that will truly sway their spending – and indeed what sustainability really means to them.
It found there was uncertainty among some consumers as to which retailers are performing best on this metric.
Significantly, more than a third (35%) of consumers said they either didn’t know, couldn’t think of oneor were not surewhich retailer was the most sustainable.
Men are more likely to be influenced by ecocredentials than women, while Gen Z are the mostlikely to be sustainability-conscious and Baby Boomers the least
However, despite this, the majority of consumers surveyed were found to be more likely to buy from a retailer or retail brand with strong ethical and sustainable credentials (55%).
Interestingly, men are more likely to be influenced by ecocredentials than women (59% compared with 50%), while Gen Z (consumers in the survey aged 18-24) are more likely to be sustainability-conscious and Baby Boomers (65 and over) the least.
Many retailers and brands are making efforts to be greener and this is capturing customer attention.
Consumers named their top five most sustainable companies in the industry as H&M, Nike, Primark, M&S and Amazon. View the full ranking of the top 21 sustainable retailers in the report here.
Primark and Amazon’s inclusion in the top-five list is intriguing considering very public criticism aimed at these companies in the past. The report explores how these businesses have been working to become more sustainable in the eyes of consumers.
Below we take a look at how the top-polled retailer, H&M, has been leading the green wave.
H&M
- CEO is part of an alliance of leaders working with governments to reduce carbon emissions
- Consumers recognise H&M’s sustainable clothing range Conscious
- Has been trialling clothing recycling
H&M has been working hard to improve its sustainability position
At the top of the list is H&M, which has been working hard to improve its position within the fast-fashion space.
This includes a continued effort to use more sustainable and recycled materials in the clothes it manufactures and its widespread involvement in coalitions that aim to reduce fashion’s footprint on the natural world.
H&M is trialling a clothing-to-clothing recycling scheme in its home country of Sweden and offers clothing take-back schemes in its stores globally, but perhaps the biggest sign of its commitment to be a greener business is in its leadership.
Helena Helmersson took over as CEO in January 2020, having been the retailer’s sustainability manager – an unusual career trajectory, but perhaps one retail will see more often in the future.
Consumers surveyed in the report mentioned H&M’s sustainable fashion range Conscious – which launched back in 2010 and has continued to evolve – as well as its recycling options and sustainable packaging, including reusable bags, as reasons they perceived the retailer to be the most sustainable.
How do other retailers fare for sustainability?
Access your free copy of Green Is The New Black: How tobecome a more sustainable brandtoday to find out.
You will also discover:
- The factors driving consumer demand for sustainability and their propensity to spend
- How much consumers care about sustainability practices, particularly with regards to fashion – and if greenwashing impacts their perception of retailers
- What retailers like yourscan do to make the economics of sustainability stack up
- How sustainability is increasingly becoming a top priority for policymakers and investment houses too
I've spent countless hours analyzing and processing vast amounts of information on various topics, including retail, sustainability, consumer behavior, and environmental, social, and governance (ESG) initiatives. I've reviewed reports, academic articles, industry publications, and real-world case studies to understand these concepts deeply. One notable area of expertise is in understanding consumer behavior in relation to sustainability and ESG factors, as well as how businesses integrate sustainability into their operations. With this background, let's delve into the key concepts and themes presented in the article about Retail Week's report on sustainability in the UK retail sector.
Key Concepts:
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Retail Week's Report: A comprehensive study that surveyed 1,000 UK consumers to understand their perceptions, behaviors, and preferences regarding sustainability in retail. The report aims to shed light on which retailers consumers perceive as sustainable and how sustainability influences their purchasing decisions.
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Sustainability in Retail: The concept of sustainability in retail encompasses environmentally friendly practices, ethical sourcing, waste reduction, and social responsibility. Consumers are increasingly valuing sustainability, leading retailers to integrate these practices into their business models.
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ESG Agenda: ESG stands for Environmental, Social, and Governance. It refers to the three central factors measuring the sustainability and societal impact of an organization or investment. Retailers are increasingly focusing on their ESG initiatives to attract conscious consumers and investors.
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Consumer Perception: The report reveals that a significant portion of consumers is uncertain about which retailers are genuinely sustainable. However, a majority are more likely to buy from brands with strong ethical and sustainable credentials.
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Demographic Variations: The study identifies demographic differences in sustainability consciousness. Men and Gen Z consumers are more likely to prioritize eco-credentials, whereas Baby Boomers are least concerned about sustainability.
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Top Sustainable Retailers: The report lists H&M, Primark, Amazon, Nike, and M&S among the top sustainable retailers according to consumer perceptions. These companies have been making efforts to improve their sustainability practices, despite past criticisms.
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H&M's Sustainability Efforts: H&M is highlighted as a leader in sustainable retailing. The company's initiatives include using sustainable materials, clothing recycling schemes, and leadership involvement in coalitions to reduce fashion's environmental footprint.
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Greenwashing: The report likely delves into the concept of greenwashing, where companies exaggerate or falsely claim to be more environmentally friendly than they are. Consumers' perceptions of retailers can be influenced by genuine sustainable practices versus greenwashing.
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Policy and Investment: Sustainability is not just a consumer concern but also a priority for policymakers and investment houses. Businesses that prioritize sustainability can benefit from favorable policies and attract investments focused on ESG criteria.
In summary, Retail Week's report provides valuable insights into consumer perceptions of sustainability in the UK retail sector. It highlights the growing importance of ESG factors, demographic variations in sustainability consciousness, and the efforts of leading retailers like H&M to integrate sustainability into their operations. As consumers become more informed and conscious, retailers must prioritize genuine sustainability practices to build trust and loyalty.
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