Shoppers will shun environment unfriendly firms

1 March 2007

Media Release

New poll: Shoppers will walk away from businesses which harm environment

New research shows seven out of 10 New Zealanders say a company's environmental performance has a big impact on whether they'll buy their products.

And when asked if New Zealand companies are generally very environmentally responsible, people are almost evenly split 39% disagreeing, 36% agreeing.

The results parallel new UK research indicating a quarter of customers don't like the companies they are dealing with for ethical reasons and would shop elsewhere if they had or knew of a choice.

The polling shows up a major opportunity for New Zealand companies which are doing the right things for the environment and their communities, according to the Chief Executive of the New Zealand Business Council for Sustainable Development, Peter Neilson.

In remarks prepared for a Wellington seminar today, celebrating the twentieth anniversary of the office of the Parliamentary Commissioner for the Environment, Mr Neilson says Business Council ShapeNZ online polling of 3088 people nationwide between August 27 last year and February 27, shows the huge imperative for businesses to behave in ways which treat the environment and people the right way.

The ShapeNZ polling shows 36% also agree a company's treatment of its staff also has a big impact on their decision on whether or not to buy its products.

UK research, covering 1300 consumers, shows almost one in four are buying from companies they consider unethical, for reasons ranging from worker exploitation, not caring enough about the environment, producing harmful products, to having too much power over government policy or using misleading advertising.

"They stay with these companies because they see no ethical alternative, their families or children like the products and they feel powerless to affect company behaviour," Mr Neilson says.

"What that shows up is a tremendous opportunity for companies and New Zealand to take market share by engaging in sustainable practices and riding a major 'green wave'. That wave exists here and in our major markets.

"This is why it's critical we get the right policy detail in place as the Government fleshes out its sustainable development policies. The aim is not only to improve the quality of life here, but also overseas. It's a solid way to combat possible new technical barriers to trade, like the food miles argument which is not evidence based.

"Already some in Europe are talking about the 'obscenity' of importing from New Zealand and are embarking of blatantly protectionist paths. The French Prime Minister last year asked the European Union to investigate imposing new border taxes on countries which have not put a price on emissions or carbon.

"Environmentalism used to be seen as only just a cost on business. Now it's the biggest opportunity in 30 years if we handle it correctly."

The country has great scope to live up to consumers' values worldwide as it commercialises making bio fuels from wood and dairy waste, algae grown in sewage ponds and develops ways to manage the microbe in the rumen to reduce methane emissions from cow and sheep.

"Many of our businesses are very much aware of how consumer preferences can switch very rapidly. The switch in meat consumption caused by the mad cow disease scare is one example. Consumers are now more sensitive to how companies are behaving and firms need to ensure they are meeting the values of people even when they are not trying to sell them something."

On the work of the Parliamentary Commissioner for the Environment, Mr Neilson says commissioners should be congratulated for helping make the sustainability debate here more sophisticated over the past 20 years.

"Morgan Williams' work on agriculture and its impact on the environment, for example, has provided a much-needed wake up call for New Zealand."

ShapeNZ poll results on public attitudes to business' role in protecting the environment are at http://www.nzbcsd.org.nz/story.asp?id=740

Ends

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