Sustainability Sector Index 2023 FINAL
Sustainability Sector Index 2023 FINAL
Sustainability Sector Index 2023 FINAL
leadership in sustainability
Contents
The pressure is on. There is a large gap between the UN’s SDGs,
and having a relevant and meaningful brand
About The Sustainability Sector Index 3
Now is the time for activation plan that addresses these concerns.
Consumers are watching and scrutinising 1 Plan according to your sector’s perceived efforts 4
shared value creation how brands behave regarding global and
local challenges. Your brand needs to define
for brands, people how to respond to the sustainable revolution
and the changing values of consumers,
2 Find your most effective levers of change 7
Kantar’s Sustainability Sector Index aims 4 Proactively address the issues of greenwashing and social washing 11
to inspire and guide you to put social and
Environmental issues already define the daily
environmental sustainability at the heart
life of one in three people globally. When it gets 5 Embrace shifting behaviours in your sector 13
of your brand strategy. Only those that act
so personal, people’s priorities shift very swiftly
meaningfully in the eyes of their consumers will
from an abstract feeling that society needs
be able to build stronger, more valuable brands.
to change, to a focus on impactful actions. Conclusion and Scope 14
Read on to discover five things you need
Globally, when mapping people’s concerns
to know to build your brand marketing
against the UN’s 17 Sustainable Development How Kantar can help 16
approach to sustainability and to establish
Goals (SDGs), we see 70% worrying about
your brand leadership in this sphere.
‘Climate Action’, 64% about ‘Responsible
Consumption and Production’, 58% about ‘Good Contact us 18
Health’ and 55% about ‘Reduced Inequalities’.
Karine Trinquetel
Global Head of Offer,
Kantar, Sustainable Transformation Practice
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PL AN ACCORDING
ABOUT THE TO YO U R S EC TO R ’ S
S U S TA I N A B I L I T Y PERCEIVED EFFORTS
SECTOR INDE X
With data insights taken from 32,000 interviews across 42 sectors in 33 countries,
Kantar’s Sustainability Sector Index 2023 is a landmark study that empowers you Which sectors are therefore create shared value that benefits your
brand, people, and the planet.
to build the foundations of your brand’s sustainability strategy and activation plan
in a consumer-relevant way. It identifies what really matters to consumers, how perceived to be leading In contrast, being in the bottom 10 sectors means
they behave and how they currently perceive your sector. the change? And which that people see your category as environmentally
and socially damaging or behind. Poor or
Opportunities for growth, change and impact differ on a sector-by-sector basis,
hence, the Sustainability Sector Index (SSI) is shaped to show you where and how
ones are behind? negative ratings set out a clear challenge for
radical innovation and substantive change in
these areas.
your brand can credibly play. The SSI enables you to unlock engagement and reap
commercial rewards, while also connecting your strategy with the UN’s Sustainable Knowing where you are starting Although not as bad, the middle-ranking
Development Goals.How will the Sustainability Sector Index guide your from is a key building block in sectors also have a long way to go to be seen
decision-making? understanding what you need to do. to contribute positively towards the UN’s
sustainability goals. A focus on building a more
Benchmarking your sector against meaningful connection to sustainability is
others can enable you to better required. This is also a great opportunity for a
understand the dynamics at play in brand to stand out of the pack.
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Shape your marketing guiding Given the wealth of rich
your category.
content in the full SSI,
principles around sustainability across global markets,
sectors and brands, we
have derived a few key We rank sectors by people’s perceptions of
insights for this booklet
2 Prioritise the key topics to focus the degree to which they drive progress on
– far more is available in environmental and social issues. The Index
on, to be the most meaningful the full report. runs from +100, for driving the most positive
change, to –100, for having the most negative
impact on the world.
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Identify shifting consumption,
unlock more adoption
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Spotted your sector?
What does your place in
the ranking indicate?
The top 10
of the ranking…
Foundation to lead the transformation,
look for shared value-creation opportunities
Often a case of unlocking further adoption with
efforts on activation and differentiation
The middle
of the ranking…
Focus on building a more meaningful
connection to sustainability
Opportunity to disrupt and stand out of the pack; identify your
sector strengths and weaknesses to find your priority levers
The bottom 10
of the ranking…
Inherent issues attached to your sector,
work on your shields / defensive play
focusing on sector-specific issues
Look for stretch opportunities and/or radical innovation
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2
F I N D YO U R M O S T
EFFECTIVE LEVERS
OF CHANGE
Understanding the perceptions of your sector on
specific topics is important in determining where
to focus’ . Another way to identify your next best What should brands in
move is by looking at your sector’s strengths and
weaknesses through the lens of marketing levers. this sector do to further
Let’s look at Meat-Alternative Protein Products as an engage consumers?
example. You can see here on the right, the sector
scores against the four key marketing dimensions:
Strategy, Innovation, Activation and Impact and how
they compare to the cross-sector average.
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Firstly, this sector should continue to play on its strengths – particularly protecting the trust that brands have
earned in taking responsibility for addressing issues and bringing meaningful solutions.
2 Secondly, we see a notable lack of familiarity compared to other sectors as more people are unaware of this
sector than the cross-sector average – there is a need to build further awareness
3 And thirdly, activation is the one area where the sector doesn’t stand out. An emphasis should be placed on
communicating and unlocking value at the point of purchase.
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3
C O N C I L I AT E
Illustration of the differences in Index according to the country for
To avoid wasting your efforts, make sure you grasp the will cascade more easily into powerful local applications
similarities and differences between countries to identify that will garner the desired consumer engagement. This
country clusters with the same overarching type of will also avoid each country reinventing the wheel.
sustainability push required.
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P R O A C T I V E LY
ADDRESS THE ISSUE
O F G R E E N WA S H I N G
A N D S O C I A L WA S H I N G
If your brand deliberately, or Looking at both of these sources we can see a massive
unintentionally, makes false problem. How can we encourage people to change their
On average,
52%
or non-credible claims about purchase decisions if they don’t trust brands’ sustainability
its sustainability, it may face claims?
accusations of greenwashing or To drive the adoption of more sustainable purchases, brands ask people to take
social washing. of. of people globally reported a leap of faith in adopting something new and different. In today’s disruptive
environment, coupled with this crisis of greenwashing/ social washing, it is hugely
seeing or hearing false or relevant to talk about the importance of trust in enabling change.
misleading information
Brands are now facing a crisis of perceived greenwashing and/ about brands’ sustainable One side of the coin is acting with bravery and boldness,
or social washing across all sectors. Social Media was perceived developing new models and ways forward. However, to
actions. succeed, brands need to demonstrate credible leadership in
as the worst culprit with 60% association. However, even though
the Pet Food sector has the lowest association, it still scored 42%. sustainability. Corporate and consumer-facing brands must
Diving into this, our data revealed a troubling finding for brands: have a proactive strategy to inspire trust.
as people become more knowledgeable, the more they sense
greenwashing, which leads to mistrust and rejection.
Inclusion
Make everyone feel that they belong
and convey how this is a shared effort
to drive impact.
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5
EMBR ACE SHIF TING
B E H AV I O U R S I N
YO U R S EC TO R
50% 63%
(62%) categories rank most poorly and present Here are just a few of the practical barriers you
opportunities to close the gap on how consumers need can start to action now, to unlock the Value-Action
to act on their values. gap and encourage consumers not just to trial your
brand’s sustainable offer, but to adopt, embrace and
By delving deep into the values consumers claim to hold champion it.
true and contrasting them with their actual behaviours,
of people say they have of people say they have brands gain valuable insights into pinpointing areas of
When talking about sustainable behaviours, the environmentally (e.g., plastics) or socially (e.g., fast
discussion is most often framed around whether people fashion). On average, 50% of people across sectors
are buying more sustainable options. Indeed, 63% of say they have bought less of or stopped buying
people globally say they have tried or used brands that certain products/services because of their negative REVIEW PRICING TELL
have a more positive environmental or social impact, environmental or social impact. S T R AT E GY ME WHY
or are open to the idea. So, it’s important to look at
70% 61%
adoption behaviours and understand what people are To some degree, these two types of behaviours will
pivoting to, or at least trying to. be at play in your category. The more sustainability
issues are ignored or addressed ineffectively, the more
And yet it’s important to point out that a key response people might withdraw. That’s why we believe the best
Say that things better for the environment and/or Want clear certification explaining the environmental/
people have when concerned about sustainability approach is to embrace and empower the shifting
society are more expensive. ethical benefits that would influence me to buy them.
issues is rejection. What we see is how people have behaviour and show how your brand is leading in this
moved away from products they judge to be bad space.
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CONCLUSION SSI covers 42 sectors in 33 countries, supporting
powerful global and local strategies
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STR ATEG IC F R A MING SUSTAI NAB LE I NNOVATI ON
Develop your ‘Sword & Shield’ strategy Put sustainability and underserved high-
focusing on concerns that fit your category growth populations at the heart of your
and brand purpose. Understand and innovation development to anticipate
prioritise different audiences, including disruptive change and develop a relevant
under-represented populations. And define portfolio that will enable behaviour
how your brand can deliver it in an change, closing the value-action gap.
authentic, unique and consistent way.
HOW CAN
KANTAR HELP?
Kantar’s Sustainable Transformation
Practice works at the intersection of
consumers, brands and environmental
and social sustainability. In 2022
we worked with over 400 brands to
catalyse action across multiple sectors
and across the world.
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Get in Touch
Contact our team to find out more:
Pierre Gomy Astrid Ricketts Carmen Bohoyo Dan Dexter Trezlene Chan
Europe Lead Sustainable MEA Lead Sustainable North America Lead Global Client APAC Lead Sustainable
Transformation Practice Transformation Practice Sponsor Sustainable Development Sustainable Transformation Practice
Tansformation Practice Transformation Practice
[email protected] [email protected] [email protected] [email protected] [email protected]