consumer engagement - greenbiz

A Report by GlobeScan and GreenBiz

HOW CONSUMER ENGAGEMENT CAN DRIVE CIRCULARITY

We need to be working together to ensure that our lifestyles, our consumption and everything that is associated with becoming more circular is the result of the fact that each choice a consumer makes is a good choice.

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3A Re p o r t b y G l o b e S c a n a n d G re e n B i z

The shift to a more circular economy offers a compelling solution to the way

the world currently conducts business. Circularity has the potential to change

economic systems and help avoid devastating impacts to our climate and society.

The concepts that provide the foundation for circularity can be found throughout

history, but post-World War II saw a radical shift by both consumers and

industry to a hyper-linear economic model of take-make-waste. Factors such

as environmental degradation, resource constraints and consumer sentiment

are forcing a reassessment of this linear model and point to a path forward for

circularity.

But circularity cannot happen in a vacuum. Migrating to a circular economy

requires systemic change, not only to current business models, but also to

consumption patterns. Much of the recent writing about circularity highlights

the importance of a collective commitment and a need for greater collaboration

by industry, government and non-governmental entities. Perhaps most critically,

success will require consumers to play an important role in shifting the paradigm

as they have the power to choose every time they make a purchase.

For this white paper, we engaged 20 experts from around the world to get their

views on the pathway to a more circular economy. The thought leaders we spoke

with were selected because of their expertise and contributions in the area.

These conversations build on GlobeScan’s latest global consumer research,

entitled Healthy & Sustainable Living: A Global Consumer Insights Project. The

introduction

4 H o w C o n s u m e r E n ga ge m e n t C a n D r i v e C i rc u l a r i t y

study involved 25,000 people across 25 countries and partners, including GlobeScan, IKEA, PepsiCo,

Procter & Gamble, VF Corp., Visa, and WWF International, with the objective of helping companies

and other influential actors better understand the barriers and enablers of living in a way that is good

for people and the planet.

This report identifies barriers that may inhibit circularity from scaling and explores how to effectively

engage consumers as a driver toward a more circular economy. Our intention is to help companies

and other influential actors to work together to catalyze more sustainable consumption. We believe

that circular business models have tremendous potential to do so.

barriers to consumer engagement

There are significant barriers to enticing consumers

to embrace the concepts associated with circularity.

Some are economical and some are cultural.

The experts we interviewed recognize that the

most prominent among these barriers is a lack of

knowledge of how to participate in a

circular economy.

When consumers across the 25 countries surveyed in

GlobeScan’s 2019 Healthy & Sustainable Living project

were asked to indicate the most significant barriers

to improving their lifestyles to be healthier and more

sustainable, nearly half indicate that affordability (49

percent) and lack of support from government (47

percent) are two major obstacles. Thirty-one percent

of consumers also point to a lack of support from

business and 27 percent admit to not knowing how to

do it, again highlighting the need for more consumer

education around achieving a more sustainable

lifestyle.

Our experts also notice that there are other barriers to

introducing the concepts associated with circularity,

such as culturally embedded objections to reuse,

or substituting services for product ownership,

although there are clear disparities across cultures,

generations and social strata in terms of how

consumers value and perceive their quality of life

and the value of owning a product or using a service.

These cultural and generational differences can also


be seen in GlobeScan’s research results, where around 22 percent of consumers agree that there

is a direct correlation between material possessions and happiness. However, some cultures show

a higher percentage than others. For example, the number of consumers in non-OECD economies

(29 percent), Asia (28 percent) and Africa (27 percent) who agree that they need a lot of material

possessions to be happy is higher than that of consumers in North America (13 percent), Latin

America (13 percent) and industrialized (OECD) markets (16 percent).

There can be a social stigma associated with previously used products as well. Consumers across

Too expensive

Not enough support from government

Not enough support from business

I’m not sure how

I like the way I live now

Not enough support from NGOs and charities

Other people not doing it

I dont trust what I read and/or hear about these issues

My action won’t make any difference

It’s inconvenient

I don’t have time

I am not personally concerned about it

49

47

31

27

25

22

21

18

18

18

16

9

Agree

22

Neither agree nor disagree

24

Disagree 54

Cost Leadership Information Motivation Convenience

Too expensive

Not enough support from government

Not enough support from business

I’m not sure how

I like the way I live now

Not enough support from NGOs and charities

Other people not doing it

I dont trust what I read and/or hear about these issues

My action won’t make any difference

It’s inconvenient

I don’t have time

I am not personally concerned about it

49

47

31

27

25

22

21

18

18

18

16

9

Agree

22

Neither agree nor disagree

24

Disagree 54

Cost Leadership Information Motivation Convenience

Barriers to Improving Lifestyle to Be More Healthy and SustainableAverage of 25 Countries, 2019

I Need a Lot of Material Possessions To Be HappyAverage of 25 Countries, 2019


People in the 25 countries surveyed remain hesitant

to buy second-hand household items or clothing,

with only 5 percent of consumers reporting that

they buy such items all of the time. When we look

at the age groups of consumers who buy second-

hand items or clothing at least “most of the time,”

Gen Z (25 percent) and Millennials (21 percent) on

average are more likely to purchase used items

than both Gen X (15 percent) and Baby Boomers

(12 percent). While younger generations may be

more willing to buy second-hand products, older

generations may be happier with fewer material

possessions but still be stigmatized by previously

owned goods.


The results of the study about owning and reusing material goods confirm that the required

change in societal mindsets (i.e., how society places value on living a quality of life and the

ownership of goods) might be achievable if we target different consumer audiences with

different messages aimed at educating and increasing the awareness around the economic,

environmental, social and personal benefits of circularity.

consumers are willing to change

Several of our experts confirm that consumers are starting to gravitate toward more sustainable

consumption patterns that, if properly supported by multiple stakeholders and infrastructure,

may be able to help accelerate the circularity transition. When asked to express their attitudes

toward the environment, well-being and consumption, 54 percent of consumers on average

across 25 countries recognize the importance of living a healthier and more sustainable lifestyle

and see the topic as a “major” or “large” priority. However, only 6 percent of consumers confirm

that they are completely living a healthy and sustainable lifestyle, signaling that their intentions

to do so are not fully matched by their actions.

25-country average

2521

1512

USA

3830

2219

Not at all

2

31

Moderately

46

Gen Z

Millennials

Gen X

Baby Boomers+

6

Completely

Mostly

14

A little

I Buy Second-hand Household Items or Clothing“All of the time” and “Most of the time,” by Generation, USA vs Average of 25 Countries, 2019


When it comes to the environment, 64 percent

of respondents show a strong willingness to

reduce their impact and 66 percent agree that

in order to preserve the environment for future

generations, we need to consume less. A majority

confirm that they would pay more for products

and services that work to improve society and

the environment (51 percent) or are produced in

a socially or environmentally responsible way (50

percent). Also, nearly half affirm their support for

companies and brands that speak out on social

and environmental problems (49 percent) and

say they encourage others to buy from these

companies (49 percent).

While consumers say that they are on board

with some of the basic concepts of circularity, a

significant number still engage in consumerism-

linked behaviors that damage the environment. A

majority across the 25 countries say that they use

their own shopping bag (62 percent), that they

repair broken household goods rather than replace

them (59 percent) and that they recycle all or most

of the time (51 percent). Four in ten consumers

also avoid single-use plastic and products with

extensive packaging all or most of the time (42

percent). However, 26 percent of consumers

continue to buy water in single-use disposable

containers and 24 percent prefer to buy cheaper

25-country average

2521

1512

USA

3830

2219

Not at all

2

31

Moderately

46

Gen Z

Millennials

Gen X

Baby Boomers+

6

Completely

Mostly

14

A little

Extent of Living in a Way that is Good for You, Good for Other People, and Good for the EnvironmentAverage of 25 Countries, 2019


products that do not last long, which underlines the challenges of changing consumer behavior

that may be constrained by a lack of infrastructure (e.g., clean drinking water) and economic

limitations, as well as cultural preferences and practices.

On the whole, however, these results suggest that a collective conscience is progressively

developing wherein consumers are starting to rethink their consumption patterns and are ready

to support business models that actively support their changing needs. But they also show that

more needs to be done to support consumers and reduce barriers to more circular behaviors.

This will require clearer communication and consumer engagement in support of circularity.

Our experts confirm that circularity requires different communications for different actors

operating at different levels (including businesses, government, customers and consumers),

and should focus on issues and solutions specific to them

For instance, when talking to businesses, the focus should be on business models and cost

savings. When speaking within a business, the discussion may focus on issues such as design

and end-of-use recovery. And for civil servants or public authorities, the issues relate to landfills,

incineration and contaminated land and waters.

Strongly Agree Somewhat Agree

All of the time Most of the time

I believe we need to consume less topreserve the environment for future generations

I want to reduce the impact that I personally have on theenvironment and nature by a large amount

I am willing to pay more for products or brands that work toimprove society and the environment

I am willing to pay more for products produced in asocially/environmentally responsible way

38 6628

40 6424

35 5116

34 5016

32 4816

32 4916

33 4613

30 4414

I encourage others to buy from socially andenvironmentally responsible companies and/or brands

I actively support companies/brands that speak out onsocial/environmental problems

I try to purchase brands that are independently certi�ed by athird party to be environmentally and/or socially friendly

I feel guilty about my negative impacton the environment

Use own shopping bag 30 6232 Try to repair not replace 37 5922

Recycle 27 5124

Use own shopping bag 21 3817

Buy bottled water 16 2812

Buy second-hand 17 269

Avoid packaging 20 266

Avoid single-use plastics 20 266

Buy non-durable cheaper products 17 236

Try to repair not replace 38 5921

Recycle 27 5124






Average of 25 Countries USA

Attitudes toward the Environment/Well-being/ConsumptionAverage of 25 Countries, 2019

1 0 H o w C o n s u m e r E n ga ge m e n t C a n D r i v e C i rc u l a r i t y

Strongly Agree Somewhat Agree

All of the time Most of the time

I believe we need to consume less topreserve the environment for future generations

I want to reduce the impact that I personally have on theenvironment and nature by a large amount

I am willing to pay more for products or brands that work toimprove society and the environment

I am willing to pay more for products produced in asocially/environmentally responsible way

38 6628

40 6424

35 5116

34 5016

32 4816

32 4916

33 4613

30 4414

I encourage others to buy from socially andenvironmentally responsible companies and/or brands

I actively support companies/brands that speak out onsocial/environmental problems

I try to purchase brands that are independently certi�ed by athird party to be environmentally and/or socially friendly

I feel guilty about my negative impacton the environment

Use own shopping bag 30 6232 Try to repair not replace 37 5922

Recycle 27 5124

Use own shopping bag 21 3817






Try to repair not replace 38 5921

Recycle 27 5124






Average of 25 Countries USA

Frequency of Actions Associated with CircularityUSA vs Average of 25 Countries, 2019

The media attention on plastic waste in our oceans has led consumers to start questioning their packaging and to become more aware that there is no ‘away’ when throwing things away.

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1 1A Re p o r t b y G l o b e S c a n a n d G re e n B i z

having the talk: meeting consumers where they are

For consumers, circularity is about prolonging the

useful life of products, minimizing waste and being

able to repair, reuse and recycle to minimize the

environmental impact of consumption.

The durability aspect of circularity is highly valued

by consumers, as confirmed by GlobeScan’s

research. When consumers across 25 countries

are asked to rate the helpfulness of various actions

that companies in different sectors can take to

help people live healthy and sustainable lives,

durability is highlighted as being particularly helpful.

Consumers recognize the importance of buying

products that last a long time (44 percent) and are

affordable (41 percent). Consumers also confirm

that business plays an important role through

corporate efforts to eliminate environmentally

harmful ingredients (45 percent), reduce negative

environmental impacts of its products (42 percent),

offer products and services that reduce the impact

on the climate (42 percent), be transparent on the

environmental effects of products (41 percent) and


not charge more for sustainable products (41 percent). These results highlight the importance

of the product design element in enabling consumers to advance circularity.

In addition to durability, consumers globally are very concerned about the issue of single-

use plastic waste in the environment, suggesting that plastic waste offers an entry point to

circularity that is likely to continue to resonate. Although consumers in the United States

express somewhat lower levels of concern about the issue compared to those in most other

countries, four in ten Americans say that the single-use plastic waste issue is very serious. In

the Latin American and Southern European countries surveyed, as well as in Turkey, roughly

three-fourths of respondents say that it is a very serious issue.

Several of our experts suggest that to effectively engage with consumers, circularity must

be communicated in a way that is positive and inspiring. Communications should emphasize

that circularity offers a vision of an economic system that is beneficial and adds value rather

than one that is disruptive. To achieve this, the message should be simple and easy to

understand. The narrative should focus on consumer engagement and standard procedures

Eliminating harmful ingredients 45

Products/services that last a long time 44

Reducing impacts on climate change 42

Protecting privacy of personal data 42

Reducing negative environmental impacts 42

Affordable products/services 41

Investing in science/R&D 41

Same price for socially/environmentally friendly products 41

Open about impacts of products/services 41

No energy/materials wasted in operations 40

Treating employees fairly 39

Advocating for better policies/behaviors 33

Informing on living in environmentally friendly way 33

Informing on how to live healthier 32

Third-party certi�cation 31

Mexico 78

78

76

75

73

72

67

65

64

64

62

62

60

59

58

58

57

55

54

51

47

43

42

40

38

BrazilSpain

ItalyTurkey

ArgentinaPhilippines

FranceSouth AfricaSouth Korea

GermanySweden

IndiaIndonesia

United KingdomCanada

KenyaSaudi Arabia

Hong KongAustralia

RussiaUnited States

ChinaNigeria

Japan

Products/services

Operations

Communications/advocacy

Helpfulness of Actions to Enable Healthy and Sustainable LivingAverage of 25 Countries, 2019
















Mexico 78

78

76

75

73

72

67

65

64

64

62

62

60

59

58

58

57

55

54

51

47

43

42

40

38

BrazilSpain

ItalyTurkey



GermanySweden

IndiaIndonesia


KenyaSaudi Arabia

Hong KongAustralia

RussiaUnited States

ChinaNigeria

Japan

Products/services

Operations

















Mexico 78

78

76

75

73

72

67

65

64

64

62

62

60

59

58

58

57

55

54

51

47

43

42

40

38

BrazilSpain

ItalyTurkey



GermanySweden

IndiaIndonesia


KenyaSaudi Arabia

Hong KongAustralia

RussiaUnited States

ChinaNigeria

Japan

Products/services

Operations

















Mexico 78

78

76

75

73

72

67

65

64

64

62

62

60

59

58

58

57

55

54

51

47

43

42

40

38

BrazilSpain

ItalyTurkey



GermanySweden

IndiaIndonesia


KenyaSaudi Arabia

Hong KongAustralia

RussiaUnited States

ChinaNigeria

Japan

Products/services

Operations


1 3A Re p o r t b y G re e n B i z a n d G l o b e S c a n

(how to read labels, for example), and it needs to explain

how consumers can contribute through their behavior (daily

actions, patterns, etc.).

When communicating to consumers, the message should

be tangible and supported by real examples and inspiring

initiatives. In Japan, McDonald’s Happy Meal toys are

returned to the restaurants to become trays. This helps

consumers to close the loop in their minds: they get

something to take home at the restaurants and it goes

back to the restaurant to become part of another product.

This helps consumers relate to the concept through an

experience.

Kei Lap Li (Philippe), business development manager of HK

Recycles, illustrates how a lack of infrastructure can make

it harder for consumers to engage in circular behavior: “60

percent of Hong Kong’s municipal solid waste is from the

households, domestic waste. However, most of the newly

constructed buildings are small and it is hard for property

managers to have the right bins. If each floor does not

have the space and cannot accommodate the bins, forcing

people to go somewhere else to recycle, this has an effect

on a person’s willingness to recycle.”

The lack of knowledge of practical actions to take is also

confirmed in GlobeScan’s research. Twenty-seven percent

of consumers across 25 countries say that they do not

know how to live in a way that is good for themselves,

other people and the environment when asked to indicate

the barriers to improving their lifestyles in order to be

healthier and more sustainable.


Educating consumers on what circularity is (e.g., with positive and targeted messages), increasing

their awareness through examples (e.g., showing them what they can do to make it happen) and

encouraging their interest around entry concepts (e.g., plastic, waste) are all important steps to

increase consumer engagement, according to the experts we interviewed. Although some of

them emphasize that we are in a phase where the language around circularity is still developing,

they also recognize that consumers are increasingly showing an interest in issues such as waste

because it is a problem that is receiving increased attention across several media channels.
















Mexico 78

78

76

75

73

72

67

65

64

64

62

62

60

59

58

58

57

55

54

51

47

43

42

40

38

BrazilSpain

ItalyTurkey



GermanySweden

IndiaIndonesia


KenyaSaudi Arabia

Hong KongAustralia

RussiaUnited States

ChinaNigeria

Japan

Products/services

Operations

Communications/advocacySeriousness of Single-use Plastic Waste “Very Serious,” by Country, 2019


what next?

To reach consumers we should speak their language and focus on concepts that bring

them value and that they understand, such as the need to reduce single-use plastic

waste to save the oceans. We also need to overcome significant barriers to enable

consumers to participate in a circular economy, making sure the design and infrastructure

is in place, and challenging social and cultural norms.

Communication should generally be positive and inspiring, using concrete examples of

circularity that show the value it can bring to consumers and other stakeholders, rather

than presenting an abstract concept.

And finally, we should avoid making the same mistake we did with communicating the

idea of sustainability, with overcomplicated definitions and metrics, and using it as a

catch-all term in the context of an overly broad scope. Circularity has the natural potential

to offer a broader appeal because it has a more motivating message attached to it.


As Marian Chertow (Yale University) explains, “Circular economy as a concept is appealing to

people by coming across positively. People get tired of being told all the terrible things they are

going to have as a result of climate change, like hurricanes, tornadoes, flooding and droughts.

Showing people that they can make a difference through leveraging circular behaviors, business

models and collaborations to drive change is a much more positive message.”

Consumers increasingly want to know not just where their products are coming from in terms of sourcing and impact on the planet, but also where the products are going at the end of their useful life.

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appendix: the collective wisodom of thought leaders

GlobeScan 2019 Healthy & Sustainable Living: A Global Consumer Insights Project is a study drawing

from comparative and representative online surveys of 25,000 people across 25 countries to explore

current understanding, concerns, expectations and opportunities to support healthier and more

sustainable lifestyles.

The Healthy & Sustainable Living study was designed and launched with a range of partners,

including GlobeScan, IKEA, Procter & Gamble, PepsiCo, VF Corp., Visa and WWF International, to help

companies better understand the barriers and enablers of living in a way that is good for people and

the planet.

In addition to the research, this report is based on in-depth interviews with 20 global experts on

circularity, selected because of their expertise and influential contributions in the area. Interviewees

are based in North and South America, Asia-Pacific, Europe and Africa.


First Name Last Name RegionPosition Company/Organization

Christina Amorim North AmericaVP, Facilities & EHS and CSO

Life Sciences Solutions Group Thermo�sher Scienti�c

Lorraine Francourt EuropeDirector, Circular Economy Dow

Guilherme Brammer South AmericaCEO Boomera

Marian Chertow North AmericaAssociate Professor, Industrial Environmental Management

Yale School of Forestry and Environmental Studies and Yale School of Management

Dr. Paul Dewick EuropeReader in Sustainability,

Technology and Innovation Management at MMU

MMU

Kate Daly North AmericaExecutive Director, Center for

the Circular Economy Closed Loop Partners

Merijn Dols North AmericaSr. Director of Open Innovation and Circular Economy for Food Danone

Cliona Howie del Río EuropeHead of Circular Economy Climate-KIC

Jeff Hogue EuropeChief Sustainability Of�cer C&A Global

Philippe Li AsiaBusiness Development Manager HK Recycles

Sally-Anne Kasner South AfricaDirector Circular-Vision

Angela Nahikian North AmericaDirector, Global Sustainability Steelcase

Wayne Ng AsiaGroup Auditor & ESG Cochlear Limited

Luisa Santiago South AmericaLatin America Lead Ellen MacArthur Foundation

Yalmaz Siddiqui North AmericaVice President, Corporate

Sustainability MGM Resorts International

Mathy Stanislaus North AmericaCircular Economy Fellow World Resource Institute

Elaine Strunk North AmericaDirector,

Global Sustainability McDonald's

Lauren Yarmuth North AmericaDirector of Circular Economy IDEO

Adrienna Zsakay AsiaExecutive Director Circular Economy Asia

Simon Lowden North AmericaPresident and Chief Marketing Of�cer — Global Snacks and

Global InsightsPepsiCo

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