Consumers walk the walk when it comes to spending on products that are backed by environmental, social, and governance (ESG) claims, find senior partner Steve Noble and colleagues. Products containing multiple ESG-related claims on their packaging grew approximately twice as fast as those making only one such claim. It’s crucial, though, that such declarations are backed by genuine ESG impact, such as decarbonization and offering fair wages to employees.
Image description:
A graph shows sales growth as a percentage along a vertical axis and share of retail sales as a percentage along a horizontal axis. The data displayed shows the number of ESG-related claims made by products and the affect that the number of claims has on sales growth and share of retail sales. What is clear from the graph is that the number of ESG-related claims correlates with higher sales growth: those making four ESG claims show a 2.5 times increase in product sales growth as compared with those making only one ESG claim.
Footnote 1: ESG is the abbreviation for environmental, social, and governance.
Source: NielsenIQ
To read the article, see “Consumers care about sustainability—and back it up with their wallets,” February 6, 2023.