Climate change is world’s No 1 challenge, reveals consumer survey

Eighty per cent of consumers surveyed across 16 countries now view climate change as the world’s No 1 challenge, according to recent research conducted by GSMA Intelligence with support from Huawei.

GSMA Intelligence is a leading source of global mobile operator data, insights, and forecasts, and a publisher of industry reports and research.

Consumers surveyed for the study hailed from Saudi Arabia, Turkey, Egypt, South Africa, Argentina, Brazil, France, Germany, Indonesia, Italy, Japan, Pakistan, Philippines, South Korea, Spain, and the UK.

Here’s what Saudi consumers felt…

The survey results showed that Saudi consumers would pay a premium for certain services that were well above the average.

Around 56 per cent of Saudi consumers stated that they were willing to pay more to ride in a carbon-neutral taxi, versus 40 per cent of consumers in other countries. Similarly, they were also willing to pay more for hotels, train tickets, broadband internet, groceries, computers, clothing and smartphones.

About 60 per cent of survey respondents in Saudi Arabia stated that they would accept a lower salary in order to work for an organisation that had set a target to reduce its carbon emissions. That compares with about half of respondents, on average, in other countries surveyed.

The study also found that 60 per cent of respondents consider climate or sustainability when buying a product, while 45 per cent said they are willing to pay a premium for products and services that have been certified carbon neutral.

Consumer perceptions are firmly aligned with the scientific consensus that climate change is the single, most crucial, long-term challenge faced by the world.

From a business perspective, it also means people are increasingly voting with their feet.

“There is a latent ‘green premium’ available for telecom operators if sustainability criteria can be embedded into product design and marketing,” said Tim Hatt, head of research and consulting at GSMA Intelligence. “Consumers want to align with green brands and will pay for assured credentials on the products they buy, and there is a first-mover advantage still out there for companies to meet this demand.”

Read: Climate action – Why brands need to look local for global impact

Survey reveals customers would pay more carbon-neutral products

Customers were surveyed by GSMA Intelligence to find out if they would pay more for a product or service that was certified as carbon neutral and 30 to 60 per cent of those surveyed stated they would. Companies that fail to embed climate change in their core business strategy risk damaging their reputation and also lose the opportunity to launch potentially profitable new lines of business.

The inclination toward such ‘green purchasing’ appeared to be greatest in countries that are most exposed to extreme weather conditions induced by climate change.

The highest correlations were seen in the Philippines, Pakistan, Brazil, Türkiye, and Indonesia — fast-growing emerging economies with direct exposure to warming and extreme weather events.

Consumers in such countries indicated an above-average willingness to change their behaviour in response to climate change.

“When it comes to investing, sustainability is no longer considered a niche,” said David Trevitt, a digital transformation advisor at Huawei, which funded the GSMA Intelligence research.

“Climate response is an ethical issue that is becoming an increasingly important part of reputation management for many enterprises. To avoid reputational damage, organizations must embed their climate response in their business strategy,” Trevitt added.