Introduction
Hello. I’d like to thank UKRN for the invitation to speak today.
In a month’s time Consumer Scotland will be three years old, and our statutory role in promoting sustainable consumption and other environmentally sustainable practices seems even more important now than when we were established.
For while the science behind climate-change is widely accepted, there are many voices seeking to sow discord about the policies necessary to mitigate against it, and adapt to it.
That clamour risks consumer confusion, and confusion risks inertia.
And as we can see from the Climate Change Committee’s 7th Carbon Budget, published only yesterday, household emissions choices will contribute to one-third of emissions reduction in 2040.
The efforts to reduce emissions have other key benefits for consumers and society – economic growth, energy security, protection from fossil fuel price shocks and better health.
So this event comes at a point where understanding consumers’ attitudes and behaviours in relation to climate change is necessary to ensure we stay on the legislative paths to Net Zero in Scotland and the UK.
Consumer Scotland net zero research key findings
There is some good news. People do recognise that climate change is an important issue.
In Consumer Scotland’s research 76% of survey respondents stated that they are either ‘very’ or ‘fairly’ concerned about climate change.
When people offer you good news, there is often less good news to follow.
The less positive finding was that only 28% said they know a lot, or completely, about what they need to do to help Scotland reach net zero by 2045.
And even those who are very, or somewhat, concerned about climate change are only slightly more likely than average to say they always consider sustainability in their purchasing choices.
Across all the product types our research looked at, only 1 in 10 respondents said they always consider sustainability when purchasing products or services.
Our research suggests that consumers do not see every day behaviours though a climate change lens.
And consumers are concerned that the transition will cost them money they do not have.
There is some cause for optimism though.
Our research also suggests that consumers see themselves as having less responsibility than government or industry, but still want to understand how they can play their part and have a positive impact on climate issues.
And where climate friendly consumer behaviours - such as recycling - are accessible and low effort they have become established social norms and are relatively routine, regardless of individual views on sustainability.
The role of regulators
So what does this mean for regulators?
There is a vital role, for regulators to shape, monitor and enforce the markets and sectors vital to the transition – energy, water, financial services, transport and more.
A systemic regulatory approach is essential to facilitate effective consumer engagement and support in the transition to net zero.
Regulators need to look at how their policies and practices work if viewed from a consumer perspective.
Are their policies, schemes and public engagement tailored to encourage consumers to participate proactively in the transition to net zero?
And are those policies joined up within and across sectors?
Key to reducing emissions is making sustainable choices more cost-effective and convenient for consumers.
If we can succeed in that, not only will we make progress towards climate change targets, but we will also be stimulating economic growth from sustainable products and services.
The importance of Net Zero to economic growth was clear from analysis published by the CBI this week.
It suggested the net zero economy grew by 10% in 2024, significantly more than the overall UK economy.
And there is additional long-term economic benefit.
The Climate Change Committee’s new analysis makes clear that during the period 2038 to 2042 the UK will start to see net savings from net zero.
A consumer perspective on net zero
At the Edinburgh Fringe last year I saw a comedy show that drew inspiration from the – large - number of companies that talked about placing their customers at the heart of their approach.
It’s an easy strapline. But what does it look like if it is being done well?
We need to take a step back and think about how to put consumers at the heart of the Net Zero transition.
Many current plans, policies and strategies use technical language or focus more on the technological change – heat networks, electric vehicles, smart meters – than the people being asked to adopt them.
Yet when asked why they were not taking further measures to reduce emissions, many consumers raised issues of cost, convenience or around not understanding the benefits of action.
Building on our research, Consumer Scotland is developing a draft framework to support governments, regulators and businesses in thinking about how they engage consumers in addressing climate change.
Cost and convenience are consumer dealbreakers
In our research 63% of those who wanted to reduce carbon emissions identified cost as one of their top three reasons for not currently taking action.
The figure was even higher – 75% - for those in youngest age bracket 16-24.
Also key is simplicity. Complexity of process can result in perplexed consumers.
For example, if you’re thinking about changing your home heating system, you need to:
- Understand the relevant characteristics of your home, and potentially get an Energy Performance Certificate
- Understand the heating system options and choose one
- Apply for funding
- Find a trustworthy installer – which can be really challenging
- Potentially reorganise space to allow work to be carried out
- Get to grips with how your new system will work most efficiently
Every single one of those stages is a hurdle over which some people will not, or cannot, jump.
To succeed in achieving net zero, sustainable products and services must be affordable, and the process of changing behaviours made easy.
And, of course, if big ticket changes such as heat pumps and EVs are only available to some, we risk leaving people behind.
A fair and just transition can only be achieved if there are measures in place to enable those facing financial barriers to participate, and if costs are fairly spread between current and future consumers.
Regulators, working in tandem with governments and business, need to set policy frameworks that enable and promote participation regardless of income.
Consumer confidence is vital to a successful transition
Cost and convenience are the primary practical barriers.
But regulators also need to consider is the context in which consumers take decisions.
What informs their views of whether they wish to participate in the market?
To start, is communication with consumers successfully articulating why change is necessary, and the benefits of it at an individual and societal level?
To put it another way, do consumers see advantages in the change required, or do they feel like it is being imposed upon them?
And can consumers have confidence in the market?
Are they sufficiently protected from scams, from poor quality work?
And if things do go wrong, are there fast and effective redress provisions?
Word of mouth can be particularly influential in people’s decisions.
Individual good – and bad – experiences are amplified.
Word of mouth can also feed misunderstanding.
Which is why getting consumer information, and consumer protection, right, is crucial to a successful transition.
The 4Cs: a policymaker’s checklist
Though this is currently only in draft, today seemed a good opportunity to share the 4Cs table from the framework I mentioned earlier: cost, convenience, clarity and confidence.
Any feedback you have would be welcome.
We will also incorporate it into future versions of the guidance Consumer Scotland issues to public bodies on the consumer duty in Scotland.
This is an important audience, as the organisations represented here oversee how sectors are working for, delivering for, and protecting consumers.
That role really matters if we are to succeed in the net zero transition.
As does seeing the need for behaviour change from a consumer perspective.
I hope that I have delivered this presentation with clarity, and you find the 4Cs useful.
Thank you.