2024年全球可持續(xù)發(fā)展CEO指南-The Visionary CEOs Guide to Sustainability 2024 How leaders can meet the moment with pragmatism

TheVisionaryCEO'sGuidetoSustainability2024

Howleaderscanmeetthemoment

withpragmatism

Acknowledgments

Fortheircontributionstothisreport,theleadershipteamofBain&Company'sGlobalSustainability&Responsibilitypracticewouldliketothankthefollowingpeople:YelenaAgeyeva-Furman,DerekBaraldi,JeffBauterEngel,JoelBenzimra,HannahBingley,MorganBooher,BobBrinckman,Anne-EliseBrouillard,JanBudde,NanetteByrnes,JulianCritchlow,PrashantDas,JennyDavis-Peccoud,DavidDiamond,JuanDiegoGavidia,AmalieDualeh,KatherineDuceman,GailEdmondson,RobertFerguson,GiuliaGallo,NidhiGarg,SheenaGarg,MaelGourlaouen,ChristianGraf,EllynGray,ChrisGriffith,JohnnyHanson,MollyHart,AnnabellMarlenHillenbrand,LutchiaJakmakian,MatthieuJonard,PaulJudge,AndrewKahn,JuanKaiser,NielsKoggersbol,SuneKok,EmilyLeinbach,ChloéMarchal,LorenzaMontedoro,MarthaMoreau,RupertOttinger,TracyParker,TanjaPick,AndrewPontti,AbhijitPrabhu,LouisRoger,AyaSakaguchi,ManyaSodhani,TaniaStrauss,HollySullivan,TiiramSunderland,HimadriSuri,JoeTan,TarahWalker,KatieWare,MelanieZook,andtheEditorialteam.

Thisworkisbasedonsecondarymarketresearch,analysisoffinancialinformationavailableorprovidedtoBain&Company,andarangeofinterviewswithindustryparticipants.Bain&CompanyhasnotindependentlyverifiedanysuchinformationprovidedoravailabletoBain

andmakesnorepresentationorwarranty,expressorimplied,thatsuchinformationisaccurateorcomplete.Projectedmarketandfinancialinformation,analyses,andconclusionscontainedhereinarebasedontheinformationdescribedaboveandonBain&Companysjudgment,andshouldnotbeconstruedasdefinitveforecastsorguaranteesoffutureperformanceorresults.Theinformationandanalysishereindoesnotconstituteadviceofanykind,isnotintendedtobeusedforinvestmentpurposes,andneitherBain&Companynoranyofitssubsidiariesortheirrespectiveofficers,directors,shareholders,employees,oragentsacceptanyresponsibilityorliabilitywithrespecttotheuseof

orrelianceonanyinformationoranalysiscontainedinthisdocument.ThisworkiscopyrightBain&Companyandmaynotbepublished,transmitted,broadcast,copied,reproduced,orreprintedinwholeorinpartwithouttheexplicitwrittenpermisionofBain&Company.

Copyright◎2024Bain&Company,Inc.Allrightsreserved.

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TheVisionaryCEO'sGuidetoSustainability2024

Contents

MeetingtheMomentwithPragmatism 2

2024Trends 5

FromSustainabilityCommitmentstoImpact:

FourPragmaticQuestionsforVisionaryCEOs 6

TheSustainabilityPuzzle:WhatDoConsumersReallyWant? 13

HowtoMastertheArtofSellingSustainability 22

GettingItDone 29

HowCEOsCanTurnDecarbonizationSetbacksintoProgress 30

AlandSustainability:ThePowerofIntegration 36

OlamFoodIngredients:PioneeringaNewFinancial

ModelforSustainability 42

Transitions 47

WinningintheEnergyTransition,OneStepataTime 48

AllTogetherNow:PartnershipsAreKeytoCircularity 54

FasterbyDesign:NewModelsforFinancingtheFoodTransition 60

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TheVisionaryCEO'sGuidetoSustainability2024

MeetingtheMomentwithPragmatism

Forsustainability,2023wastheyearboundlessexcitementgavewaytopragmaticrealism.Asthechallengeofmeetingboldcommitmentsbecameclear,manycompaniesstartedtorethinkwhatisachievableandonwhattimeline.

Buildingasustainablebusinessremainsastrategicimperative.Customers,consumers,andregulatorsaredemandingit.Riskandcompetitionwillcompelit.Transitionsinenergy,food,andothersectorsarewellunderway.Soonerthanexpected,amixofnewtechnologies,consumerandcustomerbehavior,andsmartpolicywillcreatevaluableopportunitiesforthemostforward-thinkingcompanies

acrossindustries.

Inthisreport,Bainexpertswithdiverseperspectivesandindustryexperienceoffernewresearch,marketintelligence,andinsightstohelpnavigatecurrenttrendsandtransitionswhileplanningforthecomingyearandbeyond.

Jean-CharlesvandenBranden

LeaderofBain'sGlobalSustainabilitypractice

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TheVisionaryCEO'sGuidetoSustainability2024

Customersarepressuringbusinessestoupholdsustainabilitycommitments

USconsumersarewillingtopayapremiumforsustainability

60%

ofconsumers'climatechangeconcernshaveincreasedoverthepasttwoyears

36%

ofB2Bcustomerswouldchangesupplierstodayiftheirsustainabilityneedsaren'tmet

Source:Bain&Company

Sustainabilitytechnologydevelopmenthasoutpacedforecasts

Globalsolarelectricalcapacity(ingigawatts)

Source:Bain&Company

2024Trends

FromSustainabilityCommitmentstoImpact:

FourPragmaticQuestionsforVisionaryCEOs 6

TheSustainabilityPuzzle:WhatDoConsumersReallyWant? 13

HowtoMastertheArtofSellingSustainability 22

6

2024Trends

FromSustainabilityCommitments

toImpact:FourPragmaticQuestions

forVisionaryCEOs

Amidcompetingpriorities,CEOsandconsumersstillsaysustainabilitymatters.Byactingnow,companiescansetthestageforprofitablegrowth.

ByJean-CharlesvandenBranden,Fran?oisFaelli,JohnBlasberg,andKaranSingh

AtaGlance

Inflation,AI,andgeopoliticsareinthespotlight,butBainresearchshowsthatCEOsandconsumersstillvaluesustainability.

Soonerthanexpected,amixofnewtechnologies,consumerbehavior,andsmartpolicywillcreateopportunities

AskingandansweringfourquestionscanhelpCEOssettherightambitionandidentifyapractical,effectivepathforward.

If2021and2022wereyearsofnearboundlessexcitement,boldcommitments,andmobilization,thepast12monthsbroughtaheftydoseofrealityaboutsustainabilityasCEOsjuggleanincreasingnumberofsweeping,systemicchallenges.GlobalsurveysrevealasharpdeclineinCEOs'prioritizationofsustainabilityrelativetoothertopics.Disruptivetechnology,growth,inflation,andgeopoliticaluncertaintyhavetakenthetopspotsontheiragendas(seeFigure1).

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TheVisionaryCEO'sGuidetoSustainability2024

Figure1:CEOs'prioritizationofsustainabilityhasdeclinedsharplyImportanceofsustainabilityaccordingtoCEOs,indexedto2018

Inflation

Artificialintelligence

Growthconcerns

Geopoliticaluncertainty

Note:BasedonseparateCEOsurveys

Sources:IBM;Gartner;PwC;KPMG;Bainanalysis

Evenastheseotherconcernsrise,Bain&Companyresearchshowsthatsustainabilityremains

importanttoexecutivesandconsumers.Ofnearly19,000consumerssurveyed,roughly60%aremoreconcernedaboutclimatechangethantheyweretwoyearsago,oftenduetopersonalexperienceofextremeweather.AmongB2Bbuyers,36%saytheywouldleaveasupplierthatdidn'tmeettheir

sustainabilityexpectations.

Theyarerighttocare.Atemperatureincreaseof2degreesCelsiuswouldhavedevastatingconsequencesnotonlyformankind,nature,andbiodiversity,butfortheeconomyaswell.TheInternationalMonetaryFundestimatesthatthecostofcapitalcouldrisebymorethan1%.Thatalonecouldcut$6trillion

fromthevalueoftheS&P500.

Sustainabilitystillmatters,butcompaniesarestrugglingtomeettheirexistingcommitments.OfthecompaniesdisclosingtheirprogressviaCDP,30%arewellbehindontheirScope1and2emissionsreductiongoals,andalmosthalfarebehindonScope3.Manycompaniesarereassessing,adjusting,and,insomecases,retractingtheirclimatecommitments.Somearesimplymissingthemark.In

March2024,29%ofcompaniesintheScienceBasedTargetsinitiative'sBusinessAmbitionfor1.5Ccampaignwereremovedfornoncompliance.

Thisisunfoldingagainstabackdropofheightenedregulatorydemands,aspolicymakersincreasinglyrequirepubliccompaniestodisclosematerialmitigationactivitiesandsustainabilitytargets.

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TheVisionaryCEO'sGuidetoSustainability2024

Noncomplianceriskspenaltiesandreputationalharm—bothtocompaniesandtotheirleadersindividually—pressuringexecutivestoeitherdoubledownorstepback.

Afamiliarcycle

Thetransitiontoamoresustainableworldisfollowingafamiliarcycle(seeFigure2).Thesecyclesoftransformationtypicallystartwithatrigger—atechnologicalbreakthrough,asuddensocietalchange,oraregulatoryimpulse.

A“hype”phaseofexcitement,hope,andfrenziedactivityfollowsthistrigger,withbehavioroftenacceleratedbygenerouspolicyincentives.Whensky-highexpectationsarenotquicklymet,or

governmentspullbackprematurely,sentimentfallsintothe“troughofdisillusionment,”arealizationthatthetransformationwillnotbeasquickoraseasyasexpected.Atthispoint,it'scommonforstakeholderstorethinktheirapproach.

Manysustainabilityeffortsarecurrentlyinthistrough.

Theshapeandpaceofthiscurveareinfluencedbytheinterplayofthreeforcesdiscussedinlastyear'sCEOguidetosustainability:technology,consumer/customerbehavior,andpolicy.Astechnology

Figure2:Anillustrativeviewofcommontransformationcycles

Enthusiasm

Sources:Gartner;Bainanalysis

9

TheVisionaryCEO'sGuidetoSustainability2024

advances,companiesimproveefficiencyandlowercosts.Ascostsdecline,adoptionbycustomersandconsumerspicksup,growthaccelerates,andatippingpointisreached.Beforethatcriticalthreshold,governmentpoliciessuchassubsidiesandregulationcanprovideabridgeofsupportascompaniesbuildknowledgeandexperience.

ThehistoryoftheelectricvehicleindustryinGermanyandNorwayillustrateshowpolicycanshapethistrajectory.AsEVmanufacturershavemovedalongthetechnologyexperiencecurveoverthelastsixyears,batterycostshavedroppedbyone-thirdandareprojectedtofallanother25%by2030.

Throughitspolicies,NorwayhassteadilysupportedEVsandconsumeradoption.Asaresult,

salestherehavecontinuedtogrow.InGermany,bycontrast,directsubsidiesforEVpurchasesweresignificantlyreducedatthebeginningof2023andcutaltogetherattheendoftheyear.EV

salespromptlydroppedandremainbelow2023levels.Germany'sgovernmentcutsupporttooearly,beforethecostoftechnologycouldreachthepointatwhichthemarketwouldbe

self-sustaining.

Thisdynamictakestimetoplayout.CEOsshouldtakealong-termviewandnotoverreacttoshort-termtrends.Thetrajectoriesofearlysustainabletechnologieslikesolarareinstructive(seeFigure3).Pushedbytechnologicalbreakthroughsandgovernmentsubsidies,Europe'ssolarindustrygrew

Figure3:SolarenergyhasfollowedacommontransformationcycleSolarenergycapacityadditionperyearinEurope(ingigawatts)

80

Installationsexceed

forecasts;governmentscutcostlysubsidies

growth

Atippingpointisreachedastechdevelopment

drivesdowncosts

20

0

2001200320052007

①

Innovationtrigger

201920212023

④

Slopeofenlightenment

201320152017

③

Troughofdisillusionment

UkrainewarspeedsuprenewablegrowthasbuyerslooktocutrelianceonRussia

20092011

②

Peakofinflated

Feed-intariffsandstrongcompanyambitionsfuel

⑤

ofproductivity

expectation

Plateau

2025F

2027F

40

60

Sources:IRENA(2023);IEAMainCasescenario2024-28

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TheVisionaryCEO'sGuidetoSustainability2024

dramaticallyfrom2000to2011.Then,asgovernmentscutsubsidiesfasterthanthecostbenefits

fromtechnologicalbreakthroughscouldberealized,themarketcooledsignificantly.Butby2017,solarhadreacheditstippingpoint.Panelproducershadenoughexperienceandcostshaddeclinedtothepointwheremainstreamconsumersandenergycompanieswerebuying.

CompaniesandCEOsthatstayedthecourseputthemselvesinpositiontobenefitfromthe

now-clearbusinesscaseforsolar.Today,installationsareboomingacrossEuropeandmuchoftheworld.

Ascostandadoptioncontinuetheirdynamicinteraction,manysustainabletechnologiesarelikelytoreachtheirtippingpointmorequicklythanexpected.Forecastsforthedevelopmentofsolarandwindcapacity,forexample,haveconsistentlyunderestimatedmarketgrowth.Actual2023solarcapacitywasmorethanthreetimes2015forecasts(seeFigure4).Ifthisunderforecastingcontinues,deploymentmaybeevenquickerthancurrentlyexpected.

Asbusinessleadersnavigatethesechallenges,visionarypragmatismisneededmorethanever.Basedonconversationsandworkwithhundredsofcompaniesandexecutives,wehaveidentifiedfourkeyquestionsthatwillhelpleadersinanyindustryorlocationsettheirambitionandbegintochartthepathahead.

Figure4:Forecastsconsistentlyunderestimatethespeedofrenewables'developmentGlobalsolarelectricalcapacity(ingigawatts)

Notes:IEAforecastsfor2010-18basedontheNewPoliciesscenarioandfor2019-23basedontheStatedPoliciesscenario;potentaldevelopmentforecastbasedonpreviousyears'underestimation

Sources:IEAWorldEnergyOutlook2006-23;Bainanalysis

11

TheVisionaryCEO'sGuidetoSustainability2024

1.Howwillglobalsustainabilitytransitionsshapethefuturebusinesslandscape?

Dramaticshiftsareunderwayinourenergysupply,ourglobalfoodsystem,thefinancingof

sustainability,andmaterialssupplyandconsumption.Thesetransitionsbringrisksandopportunitiesthatwillplayoutoverhorizonsfarbeyondthetypicaltwo-tothree-yearplanningperiod.Therewillbenewprofitpools,supplychaindisruptions,andscarcity.Politicalandtechnologicaldevelopments,suchasAI'shugeenergydemand,willcreatedisruption.

Toprepare,companiesmustfirstenvisionthefutureanddevelopscenariosandfuture-backstrategiesthatensuretheyarereadytomaketherightchoices.Thismayincludequicklysecuringareliablesupplyofrawmaterial,makingfoundationalinvestmentsinsustainability,orevaluatingthevulnerabilitiesofafixedassetbase.

Oneexample:Inresponsetoincreasingregulationanddecarbonizationtargetsforhigh-carbon-emittingsteelproduction,steelcompaniesarebuildinggreensteelproductioninphases.Theyaregraduallyreplacingexistingblastfurnaceswithhydrogen-baseddirectreductionandgreen-electricity-poweredarcfurnaces,therebydevelopingtechnologicalandsustainablesellingexpertisewhile

protectingtheirlicensetooperateasregulationaccelerates.

2.Whatareourcriticalpriorities,andhowfastmustwemove?

Movingfromambitiouscommitmentstopracticaldeliveryishard.Focusontrulymaterialtopics—thosethatarecriticalforthebusinessandwhereitispossibletomakemeaningfulchange—isessential.Somecompaniesarerethinkingandrestatingsustainabilitytargets,andmoreareaskingtoughquestions.Itwillbeimportanttostayfocusedonsustainabilityandpreparetoaccelerateinordertogaincompetitiveadvantageasscenarioschange.

Movingfromambitiouscommitmentstopracticaldeliveryishard.Focusontrulymaterialtopics—thosethatarecriticalforthebusinessandwhereitispossibletomakemeaningfulchange—isessential.

Oneexample:ahypotheticalmachinerycompany.Oneofthefirsttosetambitiousenvironmental,social,andgovernancetargets,thecompanyrealizesitisspreadtoothinandthatsomeofits

commitmentsarenotdirectlytiedtocompetitiveadvantageorbusinessvalue.Othershavehadlimitedimpact.Thecompanyrefocusesonasmallernumberofmeaningfulchanges,settingambitious

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TheVisionaryCEO'sGuidetoSustainability2024

Scope1and2andupstreamScope3decarbonizationgoals.Thecompanyalsozeroesinononeadditionalareathatmattersmosttoitanditscustomers:circularity.

3.Howcanwebuildabusinesscaseforsustainability?

Highcostsanduncertainreturnoninvestmentarethetwoimpedimentstodevelopingsustainabilityprogramsmostfrequentlymentionedbyexecutives.Tobuildabusinesscaseforsustainability,focusonmultipleaspects:costreductionfrommoreefficientrawmaterialsandenergyconsumption,commercialopportunitiessuchasnewcustomers,pricepremiums,andavoidingdownsiderisks.ImplementingchangeswithpositiveROIfirst,companiescangainthemomentumneededtotacklemorecomplexones.

Oneexample:Inthechemicalindustry,companieswillneedtomakesubstantialcapitalinvestmentsindecarbonization.Tooffsetthesecosts,onecompanyisexploringcommercialopportunitiesinsustainableplasticssuchaslow-carbon-intensitypolyethylene.Ithasidentifiedseveralsuitableapplicationsandendmarketsthatcouldhelpitgainshare,therebybuildingaclearbusinesscasefortheinvestment.

4.Whatactionsshouldwetakewithexternalstakeholders?

Sustainabilityissuesarecomplexandsystemic.Companiescan'tgoitalone.Theymustworkupanddowntheirsupplychaintodevelopend-to-endsolutions.Industrycoalitionscanhelpsignalsharedintentandfosterprecompetitivecollaboration.Executivesmustworkproactivelytoshapethepolicylandscapeandbuildrelationshipsinthepublicandnonprofitsectors.

Oneexample:atextilecompanythatfacesshortagesinrecycledinputssuchasrPETduetoinefficientandinconsistentcollectionmethodsandcompetingdemandfromotherindustries.ItlookstodeveloppartnershipsacrossthevaluechainwithfiberandPETrecyclers,collaborateprecompetitivelywithothertextilecompanies,andcreatepartnershipswithconsumerproductscompaniesfacingsimilarshortages.Suchbroadcoalitionsmighthelpinfluencecountry-levelrecyclingregulationsand

boostsupply.

HelpingexecutivesanswerthesefourquestionsistheaimofthisCEOguide.WeoffernewresearchonB2Bcustomersandendconsumers—whattheywant,howwillingtheyaretopayforsustainability,andhowtoinfluencetheirbehavior.Wedivedeeplyintochallengingtransitions,includingenergy,AI,andfoodsystems.AndwespeaktoaCFOwhoispioneeringanewfinancialmodelforsustainability.Wehopeyoufindbothinspirationandpracticalideastotaketoyourteamsandorganizations.

13

TheSustainabilityPuzzle:

WhatDoConsumersReallyWant?

Howbusinessescanunlockthechallengeofhelpingconsumerslivesustainably.

ByJohnBlasberg,Jean-CharlesvandenBranden,HarryMorrison,DavidZehner,andLeahJohns

AtaGlance

Inourglobalstudy,roughly60%ofconsumerssaytheirconcernsaboutclimatechangehaveincreasedinthepasttwoyears.

Thebestcompanieswilldevelopsolutionsthathelpconsumerslivemoresustainably,notjustbuymoresustainably.

Companiescan'tmarket"sustainability"asasingleconceptoraddressconsumersasamonolithicgroup,butvaluecanbecreatedbytargetingspecificcustomersegmentswithcategory-

relevantclaims.

Packagingandrecyclabilityhavesurfacedaskeyconcernsforconsumers.

Thelastyearhasgivenconsumersmuchtoworryabout.Fromwarstoheightenedpoliticaltensionstolingeringinflation,newreasonsforuneasehavegainedmindsharearoundtheworld.Buttheseworrieshavebarelydislodgedamajorissueinconsumers'consciousness:Concernsaboutsustainability

remainhighandarecompetingwithcostofliving,political,andhouseholdfinanceworries.This

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TheVisionaryCEO'sGuidetoSustainability2024

comesatatimewhenmanyglobalCEOsareturningtheirattentiontopressingmatterssuchasdisruptiveAItechnology,theneedforgrowth,andgeopoliticaluncertainty.

EvenasCEOsdealwithcompetingpriorities,themessagefrompeoplearoundtheworldinoursecondannualglobalstudyisclear.Amongthenearly19,000consumersin10countrieswhoparticipatedinourrecentsurvey,roughly60%saythattheirconcernsaboutclimatechangehaveincreasedoverthepasttwoyears,oftensparkedbypersonalexperienceofextremeweather(seeFigure1)—thesameaswhenweaskedthequestionlastyear.Inabroad-rangingstudythatincludedasurvey,in-depthinterviews,andshoppingtripswithglobalconsumers,manytoldusthattheywanttolivesustainablyandthattheybelievetheirpersonalactionsmakeadifference(seeFigure2).

However,consumershavetroublefiguringouthowtolivesustainablyandlooktobrandsandretailers,inadditiontogovernment,tohelpthem.Thisopensupopportunitiesforcompaniesthatcansupportconsumers'continuingquestforasustainablelifestyle.Butitalsosurfacessomefundamentalissuesthatraisethestakesforbusinessesinthecurrenteconomicclimate.

Forexample,thereisaconsistentviewindevelopedmarketsthatlivingsustainablyisinherentlymoreexpensive(seeFigure3).Thatisn'talwaystrue.Someconsumers,whiletryingtosavemoney,areadoptinghabitsthatalsohappentobemoresustainable,suchasdrivingless,buyingsecondhandclothing,and,insomecases,activelycuttingdownonmeatanddairy(seeFigure4).Butthecommon

Figure1:Whenasked,mostconsumerssaytheirconcernsaboutclimatechangehaveincreasedinthepasttwoyears

Q:Howhaveyourclimatechangeconcernschangedoverthepasttwoyears?

Percentageofrespondents

100%

8%

31%

42

61%

51

8

40

52

11

39

50

12

37

51

8

33

59

6

24

70

4

34

62

10

417

28

78

62

8

19

73

0

OverallUSUKNetherlandsGermanyFranceItalyJapanBrazilChinaIndonesia

■Myconcernshaveintensified/increasedMyconcernshavenotchanged■Myconcernshavesubsided/decreased

Notes:Excludesrespondentswhosaidtheydonotbelievetheclimateischanging;columnsmaynottotal100%duetoroundingSource:BainConsumerLabESGSurvey2024(n=18,991)

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TheVisionaryCEO'sGuidetoSustainability2024

Figure2:Amajorityofconsumersbelievethatasustainablelifestyleisimportantbecausetheiractionshaveanimpact

Percentageofrespondentsforwhompracticingasustainablelifestyleisimportant

Source:BainConsumerLabESGSurvey2024(n=18,991)

Figure3:Inmostdevelopedcountries,consumerssayitwouldbemoreexpensivetoliveasustainablelifestyle

Q:Whichofthefollowingstatementsdoyoumostagreewith?

100%

0

Percentageofrespondents

49%

59

63

59

59

47

51

41

52

36

25

22

25

24

24%

27

26

26

52

22

21

21

24

36

40

27%

19

17

20

17

26

23

22

OverallUSUKNetherlandsGermanyFranceItalyJapanBrazilChinaIndonesia

—Developedmarkets———Fast-growingmarkets—

Tolivemoresustainably...

■Itwouldcostmelessmoney/becheaperforme■Itwouldn'tbeanymoreorlessexpensive

■Itwouldcostmemoremoney/bemoreexpensiveforme

Note:Columnsmaynottotal100%duetorounding

Source:BainConsumerLabESGSurvey2024(n=18,991)

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TheVisionaryCEO'sGuidetoSustainability2024

Figure4:Whenadoptinglifestylehabitsthatsupportsustainability,consumerscitemotivationsbeyondenvironmentalconcerns

Q:Whichofthefollowingbestdescribesyourmainreasonforadoptingthislifestylehabit?

LimitinghomeenergyuseRecycling

LimitingpurchasesofdisposableproductsCarryingyourownwaterbotte/cutlery/straw

Walking/cycling/usingpublictransportinsteadofdriving

Compostingfoodwaste

Minimizingairplanetravel

Purchasingproductssecondhand

Activelycuttingdownonmeat/dairy

Purchasingclothingsecondhand

Percentageofrespondentsbymainreasonforactivity

Habitswiththe10

highestratesofadoption

0

100%

34%47

162

67%

11

192

68%

14

153

46%162810

25%2424

26

66%7

233

43%28

233

27%4822

29%1526

28

26%4923

Environmentalconcern■Affordability/valueformoney■Personalpreference■Health

Notes:Onlyincludesrespondentswhoreportedhavingsustainablelifestylehabits;"other"responsesnotshownSource:BainConsumerLabESGSurvey2024(n=18,991)

perceptionthatasustainablelifestyleisexpensiveposesachallengeforbrands,especiallyamidintensifiedcost-of-livingworries.Conversely,consumersinsomefast-growingmarketsbelievethatlivingmoresustainablywouldactuallycostthemless.Thefrugalbehaviortheyassociatewithsustainabilitycouldleadtoanoverallreductionindemandandconsumption,complicatingcompanies'growthplans.

Theneedtodeaverageconsumers

Justasthesebeliefsvarybygeography,approachestosustainablelifestylesdivergebasedonfactorsrangingfromculturalnormstopoliticalleanings.Ourresearchalsohelpedusidentifyhowpeoplevaluedifferentsustainabilityattributesacrossproductcategories(seeFigure5).

Thedivisionextendstowhereconsumerslearnaboutsustainability.GenZersintheUSturntoavarietyofsourcesforinformationaboutsustainability,with37%relyingonsocialmedia—thepredominantsourceforthem.Only3%ofUSbabyboomersrelyonsocialmedia.There'salsoadivisionamongconsumersinthetypesofbusinessestheytrusttosellthemsustainableproducts.Inmostcountries,consumersaremorelikelytotrustsmallerbusinesses,butinChinaandJapan,bigcompaniesaremoretrusted.Andconsumersaremorelikelytopayapremiumincertaincategorieswithcertainbenefits.IntheUS,forexample,consumerssaythey'rewillingtopayupto10%moreforproductsthathaveminimalenvironmentalimpactandupto15%moreforproductsthathavehealthbenefits.

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TheVisionaryCEO'sGuidetoSustainability2024

Figure5:Consumerspreferdifferentsustainabilityattributesdependingontheproductcategory,but"natural"isalwaysNo.1

Q:Whichofthefollowingenvironmentalsustainabilityandsocialresponsibilityelementsaremostimportanttoyouwhenpurchasingproductsinthesecategories?

Percentageofrespondentsthatselectedoptionintheirtopthree

Freshfood

35%

Natural

Organic

26

Animalwelfare

23

Packagedfoodandbeverages

Natural

Sustainablepackaging

orpackaging-free

Lowcarbonfootprint

Beautyandpersonalcare

Natural36%

Animalwelfare

orpackaging-free

Sustainablepackaging

Householdcleaningsupplies

36%

Natural

26

Sustainable