In a new survey commissioned by Propel and OnePoll, 65% cited the importance of brand transparency as they look for environmental claims when making purchases. Savvy consumers shared that they’re not easily tricked, as 45% reported that if they discovered a brand was “greenwashing” products (making misleading eco-friendly product claims), they would purchase from an eco-friendly competitor instead. As procurement leaders navigate the complexities of sustainability, the study reveals the importance of sustainable purchasing practices and the growing consumer demand for eco-friendly products.
Key Findings from the Propel Software Study
The study surveyed over 2,000 U.S. consumers and highlighted a growing trend toward sustainability in purchasing decisions. Here are some of the most notable insights:
- Consumer Preferences for Eco-Friendly Products:
- A significant 55% of Americans indicated they would sever ties with brands that are not eco-friendly.
- 42% of Americans are savvy enough to know when companies are “greenwashing”.
- The survey found that 68% of adult males and 55% of adult females prioritize eco-friendly products or causes when purchasing.
- Consumers are willing to spend more on green products, with an average planned expenditure of $12,000 on eco-friendly products in 2024, up from $9,000 in 2023.
- 45% of consumers reported if they discovered a favorite brand was greenwashing (conveying false or misleading environmental claims), they would likely purchase from an eco-friendly competitor instead.
- Men Influenced Most by Eco-Friendly BrandsMales are 20% more likely to spend money on sustainable/eco-friendly products within the next year.
- Males are 21% more likely to purchase an eco-friendly product if it costs more.
- 63% of Males and 44% of Females are willing to break up with a brand they have been loyal to if they learn it is not eco-friendly.
- 64% of Males and 47% of Females are currently boycotting a brand solely because it is not environmentally friendly.
- Emotional Investment in Sustainable Brands:
- 42% of Americans are savvy enough to know when companies are “greenwashing”.
- About 44% of respondents feel more emotionally invested in companies that demonstrate sustainable business practices.
- Transparency is crucial, as 65% of consumers look for environmental claims when purchasing, and 42% can identify when a company is attempting to "greenwash" its practices.
- Over 50% of both parties are willing to spend more on eco-friendly brands.
- Political Influence on Sustainability:
- The study revealed that 73% of Democrats and 50% of Republicans consider buying eco-friendly products or supporting eco-friendly causes important, indicating a bipartisan interest in sustainability.
- Impact of Greenwashing:
- If consumers discover that a brand is "greenwashing," 45% reported they would likely switch to an eco-friendly competitor.
Trends in Sustainable Procurement
The Propel Software study also highlighted several trends that are reshaping the procurement landscape:
- Supply Chain Transparency:
- There is a growing emphasis on supply chain transparency, with businesses striving to ensure that their suppliers adhere to sustainable practices. This trend is driven by the need to meet consumer expectations and regulatory requirements.
- Circular Economy Initiatives:
- Companies are increasingly adopting circular economy principles, focusing on reducing waste and promoting the reuse and recycling of materials. This approach not only minimizes environmental impact but also enhances resource efficiency.
- Climate Resilience:
- Procurement leaders prioritize climate resilience by sourcing products and services that can withstand environmental changes. This includes investing in renewable energy sources and energy-efficient technologies.
- Ethical Sourcing:
- Ethical sourcing is becoming a critical component of sustainable procurement. Businesses are evaluating the ethical practices of their suppliers, including labor conditions and human rights policies, to ensure alignment with their sustainability goals.
Challenges in Implementing Sustainable Procurement
Despite the positive trends, the study also identified several challenges that procurement leaders face in implementing sustainable practices:
- Lack of Knowledge and Resources:
- Many procurement professionals lack the knowledge and resources to implement sustainable practices effectively. This includes understanding sustainability terminology, frameworks, and data collection methods.
- Supplier Resistance:
- Suppliers may resist adopting new sustainable practices due to differing values or resource constraints. Building strong partnerships and providing education and training can help overcome this challenge.
- Higher Costs:
- Transitioning to sustainable procurement methods can incur higher initial costs. However, these should be viewed as long-term investments that will benefit the company and the environment.
- Government and Cultural Support:
- Government funding and cultural support for sustainability efforts vary across regions. Companies in areas with less support may find it more challenging to implement sustainable practices.
Strengthen Sustainability Tracking & Reporting
Propel’s Spring ‘24 release improves sustainability tracking and compliance at a time when environmental compliance, social responsibility, and sustainability are at the forefront of every business strategy. A new integration with QPoint Technology’s Green Data Exchange allows users to effortlessly access suppliers’ declarations, certifying that products meet the highest standards of environmental stewardship before they enter the market.
“Spring ‘24 continues to build on the promise that many siloed legacy solutions fail to provide,” said Eric Schrader, Chief Product Officer at Propel. “Our platform weaves a trusted product thread throughout the entire product lifecycle, engaging every stakeholder to address critical product success factors: how well it’s designed and made, how effectively it’s marketed and sold, and how efficiently it’s serviced and supported.”
R&D, product, and commercial teams have a unique opportunity to improve market access and bolster customer loyalty by differentiating their offerings based on regulatory compliance and ESG leadership. The latter is paramount given its continued influence on consumer purchase behaviors.
Read the full survey on Propel Software here.
