The net zero consumer conundrum

A blog post by Consumer Scotland Chief Executive Sam Ghibaldan

It’s a conundrum that governments around the world are wrestling with: how do you translate net zero objectives into tangible action when success depends on the individual choices of millions of consumers? It’s crucial to find the right answer to that question. That is clear from the Climate Change Committee’s estimate that over 60% of the emissions reductions necessary to meet net zero will be predicated on some kind of individual or societal behavioural change.

The problem - in Scotland at least - is not that people don’t care about climate change. They do. Consumer Scotland’s recent net zero research shows 76% of people are concerned about climate change, a figure that is even higher amongst young people (85%).

The key consumer issues policy makers must address to achieve a successful net zero transition are clarity, convenience and cost.

People are uncertain about what they can do. Our research found less than a third (28%) of people said they knew a lot about what they need to do to help Scotland reach net zero by 2045. And although many respondents stated that they want to reduce emissions and engage in more sustainable behaviours, the proportion making decisions associated with sustainable consumption who say they do so primarily for environmental reasons is much lower. This suggests that even where consumers are taking sustainable actions, sustainability is not necessarily a strong driver of choices in these areas. Rather, consumers prioritised cost, convenience and accessibility across all the markets we examined.

These are not insurmountable obstacles to the net zero transition, but success requires a shift in policy thinking. We’ve got targets, and there may be more on the way; we know what has to be achieved. But it’s time to think from a consumer perspective about the choices we all face. Consumer Scotland’s research pointed to three key messages for policy makers which will be vital in enabling consumers to make the changes that are needed to reach our ambitious net zero targets.

Cost and convenience are key barriers to consumers making more sustainable decisions

When consumers are making purchasing decisions, sustainability concerns compete with other factors including convenience, speed of purchasing, ingrained behaviours and price. Sustainability concerns do not currently appear to drive consumer purchasing decisions, with many consumers prioritising other factors such as convenience and cost.

We know that many consumers face significant competing demands for their resources, with the cost of living continuing to put pressure on household budgets. The actions that are best for the environment are not always those which are the most cost effective or straightforward. If the transition to net zero is to be a success, sustainable choices must become more affordable, accessible and convenient for consumers.

Individual sustainable decisions can generate wider additional benefits

While individual cost and convenience are essential factors in many consumers’ decisions, the evidence suggests some are more likely to engage in net zero behaviours in response to external prompts, such as societal expectations and regulations.

Communication with consumers should be clear about the shared benefits people’s decisions are contributing to, such as cleaner air, improved health and cleaner and greener places. This may be especially important amongst consumers who are less likely to be motivated by concerns about climate change.

Communicating effectively will help consumers make the changes required

Our research found that consumers see primary responsibility for dealing with climate change resting with government and industry. However, although consumers see themselves as having less responsibility than government or industry, they still want to understand how they can play their part and have a positive impact.  

Effective communication, in accessible language, is the thread that can draw consumers towards the actions needed, articulating individual and societal benefits, being clear about how to act and what the associated costs might be. A broad range of governments, public bodies and companies will be communicating with people. To avoid mixed messaging, wherever possible these communications should be aligned.

Better communication must be accompanied by practical thinking from a consumer perspective. That means policymakers, regulators and companies understanding that every stage towards making a sustainable choice is a hurdle. If you’re thinking about choosing a heat pump, you need your property assessed to understand precisely what type and size of device is required, you need to find a reliable installer (and preferably get quotes from more than one), you need to understand the costs (relative to alternatives), you need to apply and wait for grants and loans and you need to clear space for the installation.  Each of those stages will be a barrier for some. Making sustainable choices affordable, easy and convenient is essential if the pace of the consumer transition is to increase. 

What next

The new Climate Change (Emissions Reduction Targets) Bill and the move to a five-yearly cycle of carbon budgeting presents an opportunity to refocus our efforts to engage consumers. The new Climate Change Plan provides an opportunity to provide much needed leadership and guidance for consumers and will be key in achieving the level of behaviour change required.

At Consumer Scotland, we will continue to work with stakeholders, using our insights to advocate for action by government, regulators and businesses that delivers positive outcomes for consumers. We will shortly be publishing two separate research reports on the decarbonisation of postal services and on homeowners who have installed heat pumps and solar photovoltaic panels. Later this year we will publish the findings of our investigation on consumer protection in the green home heating market.