European governments love a climate target. ? 

They love creating them, marketing them, idolising them, politically riding on them, and most importantly… they love to roll them back.? 

Governments in the United Kingdom, Germany, France and across the EU have watered down climate goals, and the European Union is reportedly set to miss its 2035 target to cut planet-warming emissions.?

The recent decision by British Prime Minister, Keir Starmer to adjust Labour’s 2030 clean energy target from 100% to 95% has sparked debate, with critics viewing it as another example of a rollback of climate goals. 

This year only four EU countries met at the global annual United Nations deadline to outline their plans for how they plan to do so.? 

There’s no doubt that the pressure is on governments around the world to think bigger and act better around climate change. ? 

But perhaps it’s not just a case of politicians failing to enact policy. Perhaps a part of the problem also lies with people choosing not to make those small yet incremental choices that can help nudge things in the right direction.? 

A survey from Vlerick Business School sheds light on the complex relationship between consumer attitudes and sustainable product uptake.  

While South Korea and Singapore emerged as the frontrunners in consumer willingness to pay a premium for brands focused on sustainability and inclusivity, European consumers—especially those in countries like Belgium, Germany, the Netherlands, Sweden, and the United Kingdom—showed significantly less enthusiasm.? 

Global Consumer Insights? 

The research, conducted by Professor Frank Goedertier (Vlerick Business School), Professor Bert Weijters (Ghent University), and Joeri Van den Bergh (Human8), examined responses from nearly 25,000 consumers across 20 countries, including the region of Hong Kong. One of the most significant findings was the high willingness of consumers in South Korea and Singapore to pay more for brands that prioritise sustainability and inclusivity.  

These markets, along with others in Asia, demonstrated a consumer base that is not only concerned with ethical practices but also values these practices as essential components of their purchasing decisions.??? 

The Vlerick study also uncovered important differences in consumer behaviour based on gender and age. The data showed that women are generally more willing than men to pay a premium for inclusive, sustainable brands. This finding aligns with broader trends in consumer behaviour, where women are often more motivated by ethical considerations, especially when it comes to issues like sustainability and social equity.?? 

This willingness to pay for sustainable and inclusive brands is, in part, driven by younger generations, particularly Gen Z. The study revealed that Gen Z consumers, across all regions, are significantly more inclined than older generations to support brands that embrace both sustainability and inclusivity.  

Not only this, but the youngest cohort is also more likely to pay a premium for exclusive, on-trend products. This makes Gen Z a particularly interesting target group for brands looking to cater to both ethical consumption and exclusivity, unlike older generations such as Gen X and Baby Boomers who exhibited significantly lower willingness to pay for both types of brands.?? 

European consumers are more cautious, particularly in markets such as Belgium, Germany, the Netherlands, Sweden, and the UK. The study found that these countries are among the least willing to pay a premium for sustainable and inclusive products.  

Why is this the case?? 

It’s The Economy, Stupid?

Across Europe, economic challenges such as inflation, high living costs, and income stagnation have made consumers more price conscious. This financial strain means that many consumers are reluctant to pay extra for products that are perceived as non-essential, especially when economic pressures are at their highest.??? 

In the UK, for instance, the ongoing cost-of-living crisis has made many consumers even more price-sensitive, with sustainability and inclusivity often taking a back seat to more pressing financial concerns. As a result, the willingness to pay more for these values is often outweighed by the immediate desire to save money, particularly in everyday products where the price premium for sustainability might be seen as too high.? 

It’s not that Europeans do not care about sustainability, or the eco-friendliness of the brands they invest in. The Brand Finance Europe 500 2024 report found the European consumers are significantly more sceptical about a brand’s sustainability efforts compared to other global markets. Brand Finance’s Global Brand Equity Monitor, which surveys over 150,000 respondents, found that Europeans are 25% less likely to believe a brand is committed to environmental sustainability, 26% less likely to see a brand’s social sustainability efforts as genuine, and 22% less likely to trust its governance practices than respondents from non-European countries.? 

This scepticism has serious implications for brands operating in Europe. The heightened scrutiny reflects a broader cultural and regulatory environment that places sustainability at the forefront of regulations. Europe has a stricter regulatory landscape, led by initiatives like the EU’s Corporate Sustainability Reporting Directive (CSRD), which amplifies this scrutiny of a brand’s sustainability message. The CSRD mandates that over 50,000 companies report detailed sustainability data, integrating it with their financial reports. This means that European consumers have access to more transparency, making them more attuned to brands’ actual sustainability practices. Failure to meet these higher standards could lead to compliance issues or even legal penalties, further damaging brand credibility.? 

As European consumers grow more discerning, companies risk reputational damage if their sustainability claims are perceived as insincere or exaggerated. Inaccurate or vague sustainability communications can and have led to consumer distrust, lower brand loyalty, and negative media attention, leading to what Brand Finance has labelled as ‘greenhushing’, where brands roll back their marketing on sustainability efforts, out of fear they will be criticised.?? 

What Can Businesses Do??? 

Given the findings of Vlerick’s report, European brands must reconsider their approach to marketing sustainability and inclusivity. While the cost increases for European consumers may initially seem like a barrier, it also represents an opportunity to innovate as the challenge to demonstrate that sustainability is not one that necessarily comes with a steep price tag.  

Offering affordable yet ethically sourced products or developing new business models that prioritise both sustainability and cost-effectiveness could help to bridge this gap.? 

At the same time, companies must focus on building trust with consumers, especially in countries where scepticism towards greenwashing is high. Transparency, authenticity, and third-party certifications will be key to convincing European consumers that the premium price for a sustainable product is justified.? 

Moreover, brands that successfully target Gen Z with a clear message about their commitment to sustainability and inclusivity will likely reap long-term benefits.  

As the younger generation continues to influence the market, brands that align with their values will not only capture their attention but also build brand loyalty that extends into the future.? 

By, Alex Lopez

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