Consumers are taking ownership of the climate crisis – with Gen Z shoppers demanding companies create more green and transparent products, according to NielsenIQ data.
The on-again-off-again trade war between the Trump administration and most of the rest world is making consumers question how and where foods and beverages are manufactured, said Sherry Frey, VP of total wellness for NielsenIQ.
“Consumers are paying more attention to their food than ever before – what is in it, what it does for them and now even where it comes from,“ Frey said. ”There is a positive there in terms of this empowered consumer."
Consumers want action on the environment
Consumers are turning to the government for action on climate change and improving the environment, Rachel Bonsignore, VP of NIQ Consumer Life, explained.
NIQ surveyed consumers ahead of the 2024 US election on the changes that they would like to see with a new president as part of its Green Gauge. Gen Z and Millennial consumers cited “protection of the environment” as their No. 1 and 2 demands for the president, compared to the average consumer who placed it as third most important demand.
More than a third (36%) said the government is “doing a good or excellent job” of mitigating climate change ahead of the 2024 election, according to NIQ’s Green Gauge.
Consumers go it alone on sustainability
What is the difference between Scope 1, 2 and 3?
Scope 1, 2 and 3 emissions demark the source of greenhouse gas emissions, McKinsey summarized. Scope 1 includes emissions an organization emits, Scope 2 is indirect emissions – including energy purchases – and Scope 3 comprises emissions across a company's supply chain, the firm explained.
The Trump administration is pushing for deregulating the EPA, including deregulating greenhouse gas reporting programs.
CPG products with sustainability claims could grow amid government inaction on climate change, as consumers take charge of the climate crisis through the products they buy, Frey noted.
“If requirements around Scope 3 greenhouse-gas emission reporting change, will we see consumers say, ‘Okay, then it is my personal responsibility.’ And we are already starting to see that in some areas, like consumers saying, ‘Well, I’m maybe not going to choose to go to this retailer, or I’m not going to buy this brand,’” Frey said.
Scope 3 greenhouse-gas emission reporting is a hot-button issue - given the complexity of measuring carbon emission from every aspect of a supply chain. The SEC dropped Scope 3 requirements from its final ruling on its climate disclosure rule last year, amid company concerns about the cost and validity of Scope 3 data.
Reaching net zero: A roadmap to reduce emissions and increase nutrition security through strategic sourcing, manufacturing and packaging
This story is part of a special collection of articles examining how consumers, brands and reglators are thinking about climate action, including what is and isn't working in the quest to reduce Scope 3 emissions and improve environmental sustainability. The collection also explores how the food industry is balancing the health of people and the planet through ingredient innovation, modern manufacturing and sustainable packaging.
Check out the full collection.
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The generational divide in sustainability demands
Consumers differ – largely based on age – on how to best improve the environment through buying products with specific sustainability claims, the two explained.
“There are entry points to sustainability for any generation, but the mindset is really going to vary, and the motivation is going to be different,” Bonsignore said.
For instance, younger consumers are “combining the idea of clean label and social responsibility with sustainability” and search for products that check each of those boxes, Frey noted. Additionally, Gen Z shoppers like to find ways to advertise their environmental commitment through social media and engaging with influencers, Bonsignore said.
However, older consumers are focusing on mainstream sustainability practices like recycling and conserving energy and water, she added.
“Gen Z, in particular, are most likely to believe environmental claims on labels and in advertising because that is another really easy way to showcase how green you are being,” Bonsignore elaborated.
