Signal Radar: Will the pandemic lead to a permanent increase in conscious consumerism?
Although the popular notion that the Covid-19 pandemic has been ‘good for the environment’ may be more complicated than we think, conscious consumerism is forecast to hit record highs this year. This is welcome news for start-ups pioneering in the space.
– This signal forms part of Hunch | Strategic Innovation Pathfinder, our proprietary cross-sector database examining changes in customer behaviour and expectations that have the potential to grow in scale and impact. –
A decline in global economic activity and C02 output was welcomed by those looking for silver linings during the coronavirus pandemic. However, environmental changes such as cleaner air and reduced noise pollution were always likely to be temporary.
In early April 2020, in the midst of global lockdowns, daily global carbon emissions were down by 17% compared with 2019. However, as of 31 December 2020, Integrated Carbon Observatory data showed that they were less than 6% lower than at the same point in 2019, despite the fact normal activity had not yet restarted.
The big question is whether there will be any permanent changes that are good news for the environment. A number of conscious consumer focussed start-ups seeing an increase in users and interest seem to think so.
Cogo was one of the early fintech players to introduce a carbon-footprint tracker allowing users to monitor the impact of their spending in real time. As well as tracking emissions, it also suggests ways users could reduce their carbon footprint, such as by switching to a green energy supplier or plant-based diet.
Clim8 is making impact investing accessible. When its platform launches, they claim it will allow users to invest in public companies that are working towards tackling climate change in sectors such as clean energy, sustainable food and smart mobility, without compromising on returns.
TreeCard is a wooden debit card that puts 80% of its profits towards planting trees. With open banking technology, users will be able to link the card with their existing bank account provider.
According to Co-op, ethical consumerism is forecast to exceed £100bn despite the pandemic and is set to grow in 2021. A third of shoppers (32%) aim to purchase more plant-based food and Fairtrade (27%), reduce single-use plastic consumption (52%) and become more energy efficient in the home, with 49% aiming to reduce heating and lighting consumption.
Will the pandemic prove to have been a catalyst for a sustainable boom in ethical business?