With climate on the forefront of public consciousness, it’s no surprise that many U.S. consumers want to mitigate future damage.
According to Deloitte’s July 2023 Sustainable Actions Index data, 65% of lower income people, 68% of middle income people and 72% of higher income people believe climate change is an emergency. In varying degrees, people from across the income divide are making “green” choices.
However, the report also found that 41% of higher-income individuals sometimes, rarely or never make sustainable purchase choices.
Reasons for the difference between attitude and behavior among consumers of all income levels range from convenience and cost to overwhelm.
Why Wealthy People Aren’t Taking Action
“The gap between commitment and action is one of the more revealing takeaways from this report, as it’s a bit of a double-edged sword,” says Leon Pieters, global consumer industry leader at Deloitte.
“On one hand, nearly three in five higher-income individuals always or often choose sustainable products, with one in four powering their homes with renewable energy always or whenever possible. On the other hand, some of the highest-emitting behaviors — optional flights, solo driving, regular meat consumption and package delivery reliance — are the ones they’re more reluctant to give up,” he adds.
Although there isn’t just one reason behind this trend, Pieters points out that high-net-worth individuals may have luxuries baked into their everyday life, so letting them go or making different spending decisions can be an obstacle.
“For example, it’s relatively straightforward to envision the shift toward powering your home with renewable energy, as the result remains unchanged: your heating and cooling systems operate, your appliances function and the lights stay on,” Pieters says.
“In contrast, opting for more frequent trips to physical stores instead of waiting for packages to be delivered requires a significant investment of time and energy, a commitment some individuals may be less inclined to make,” he adds.
Are Sustainable Goods and Services Too Inconvenient, Too Expensive or Both?
When people are in a hurry or in need, ease of purchasing is important. The Deloitte report discovered that 17% of consumers say they didn’t buy a sustainable product because it was too inconvenient, difficult or time-consuming. Cost, though, was more often the hurdle. Thirty-four percent of the respondents said it was the most significant barrier.
With these results in mind, manufactures and retailers have their own changes to make if they want to inspire environmentally healthier decisions.
“It’s crucial for businesses to innovate and reduce these costs where possible, ensuring green goods are the first choice for consumers based on environmental impact, quality and price,” Pieters says. “The goal is to reach a critical market tipping point as quickly as possible so that adoption can accelerate — meaning individuals of all income levels are able to access sustainable goods and services.”
By ensuring that consumers have access to affordable, sustainable goods and services, the race to net zero emissions may be won.
Weather Fluctuations Affect Green Consumer Choices
When people are not experiencing direct changes to their environment, interest in sustainable purchases can wane.
The Deloitte report data was collected before the record-breaking weather events of the last few months, including the hottest July and August ever recorded. So if there was some reduced concern, a rebound may be on the horizon.
“Our survey indicates that recent, personal experience with climate-related extreme weather or disasters increases people’s level of concern and willingness to take action, so we might expect those numbers to rebound,” Pieters says.
Economic Conditions Impact Shopping Decisions
Anxiety about climate change ebbs and flows, but overall it remains intense. An August 2023 NPR/PBS NewsHour/Marist poll found that 53% of Americans believe addressing climate change should be a priority, even if it slows economic growth.
In reality, though, the rising cost of goods and services has an impact. The Deloitte report showed a decline in sustainable purchases over the last 18-plus months, which coincided with unexpected inflation.
“As a result, consumers chose what was sustainable for their short-term pocketbooks over what was long-term for the planet, which is emblematic of a more significant collective short-term mindset challenge,” Pieters says.
Note that the Deloitte report found that 35% of sustainable purchases were in the food and grocery category, which had been impacted by high inflation. Consumers across the board are less willing to pay the “greenium” at the supermarket.
Doubting the Effect of Personal Decisions
Avigail Lev, a psychotherapist and the founder and director at Bay Area CBT Center says that one of the primary barriers preventing people from aligning their values with climate change issues is the sheer scale and overwhelming nature of the problem.
“Many people struggle to see how their actions can make a meaningful impact, leading to confusion and uncertainty about specific behaviors that can influence climate change,” Lev says.
“It’s not that people don’t take climate change seriously; rather, they grapple with the enormity of the problem and the challenge of finding effective ways to contribute amidst a sea of other pressing global concerns,” she adds.
As the Deloitte report surmised, energy, transportation, manufacturing and food production take center stage in addressing climate change, so it can feel as though “any individual’s action is like a grain of sand on a beach.”
Impactful Individual Changes People of All Income Groups Can Make
By modifying some habits, people of all income groups can make a significant impact on their individual emissions as they prevent overspending.
[Read: Inside the Psychology of Overspending and How to Stop.]
Lev says clarifying values is an essential component. Then, “identify specific behaviors, even small steps like bringing reusable bags to the grocery store, to prevent feeling overwhelmed.This approach helps you focus on what truly matters and the person you want to become, relieving the burden of solving the entire problem.”
Pieters offers a number of budget and climate friendly decisions to consider. For example:
— Take fewer optional or leisure flights.
— Carpool instead of driving alone.
— Reduce meat consumption.
— Don’t rely heavily on package deliveries, especially when shipping costs are added.
— Avoid purchasing fast fashion.
— Improve home energy efficiency, such as upgrading to LED lightbulbs and using cold water for laundry.
For the foreseeable future, however, people will likely focus on the cost of going green, Pieters says. When their sense of financial well-being is healthy, they are willing to pay at least a modest premium. Whether the consumer is in the upper or lower income strata, price often dictates purchasing habits.
Climate change may be a legitimate pressing concern for most people, but so is paying the bills. To inspire a change in consumer habits, businesses would be wise to ensure that sustainable goods and services are compelling to the customer.
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