Nudging Consumers towards Sustainability

I popped over to the RSA last night for a meeting on nudging consumer behaviour to promote sustainability. The panel discussion featured Sir Martin Sorrell, Chief Executive, WPP, one of the world’s largest communications services groups; Dr Andy Wood, Managing Director, Adnams, one of the UK’s most carbon-efficient brewers and Dr Sally Uren, Deputy Chief Executive, Forum for the Future. Overall there was less discussion on ideas drawn from behavioural economics than I was expecting.

Sir Martin Sorrell focused most of his remarks on the progress that WPP was making in lowering their carbon footprint. He made some interesting comments on the power that brands have in changing consumer behaviour. When a brand is genuinely loved then there is more scope for companies to nudge consumers in changing their purchasing habits. But many businesses have legacy products they don’t want to alter. Sorrell argued that consumers in BRIC countries are greener than their Western counter parts and that taxes and regulation in rich nations can only succeed to a point.

Dr Sally Uren was on good form last night and I felt she made the most significant contributions from a behavioural economics perspective. Smart marketing about sustainability can make consumers feel good! And businesses need to be the ‘nudgers in chief’ and make small actions seem significant. She praised Tesco’s carbon management project - they are focusing directly on lowering the consumer’s carbon footprint as well as making progress in reducing their own carbon impact and through their supply-chains.

A point made by all of the panellists is that doing good is good business and that there is growing evidence of a seismic change in attitudes of business towards sustainability.