Is the cost of living crisis having an impact on our ability to live sustainably?
What is the Green Line?
Watch our explainer animation…
Contents
Section 1
Introduction
The UK has endured an extraordinarily eventful and difficult period. Back in 2021 Essity commissioned research to see how changes that the pandemic had brought to our lives had affected attitudes to the environment and sustainability; and whether behaviours linked to those issues had then been affected by the first phase of the cost of living crisis.
Kevin Starr,
Country Manager, UK and ROI
We did not know then how the crisis would evolve during 2022, as inflation continued to rise, exacerbated by factors including the energy crisis and the war in Ukraine, while political and financial instability within the UK and beyond helped push up interest rates. Incomes have been falling in real terms while prices rise; and the end of the crisis is not yet in sight.
In early 2023 Essity commissioned new research, to see how the events of the past 12 months have influenced attitudes in UK households towards living in environmentally sustainable ways; and how those events have affected peoples’ financial capacity to make those changes.
Our findings reveal some of the damage caused by the crisis. Almost half (49%) of the 2,000 adults we surveyed say they now have less disposable income than they did a year ago. While almost four out of ten (38%) say they still have enough disposable income to make changes to their lifestyles in order to live more sustainably, one in three say they do not have enough money to do this. Those people are living below what we call the Green Line: they cannot afford to make changes they would like to make to help the environment.
But we have also found that many consumers do still want to make those changes if possible. In part this may be because 2022 was also a year when the urgency of the need to take action to protect the environment was reinforced repeatedly, by reports of environmental disasters throughout the world; and by extreme weather events including the hottest summer ever recorded in the UK. In addition, it seems that many consumers also understand that many of the actions they can take to live more sustainably can also help them to save money.
Either way, our results show that even if one in three households are living below the Green Line, almost half are still prepared to pay extra – a sustainability premium – for a variety of more environmentally sustainable goods and services.
For Essity, the primary reason for commissioning this research and publishing this report is to try to gain a better understanding of how we can support and enable our customers and consumers to act in more sustainable ways. I hope you will find the report informative and useful. Please visit Essity.com to learn more about the work we are doing around sustainability.
“Our results show that even if one in three households are living below the Green Line, almost half are still prepared to pay extra – a sustainability premium – for a variety of more environmentally sustainable goods and services.”
Section 2
Key Findings:Summary & Analysis
Leading hygiene and health company Essity has produced this report to enhance our understanding of how the cost of living crisis is affecting consumers’ ability and ambition to lead more environmentally friendly lifestyles.
The report is based on research that provides a snapshot of consumer attitudes towards the need to adopt environmentally sustainable lifestyles, and the possible financial consequences – both negative and positive – of doing so.
Our report reveals the following key findings:
1 in 3 consumers are living below the “Green Line”
they do not have enough disposable income to be able to make changes in order to live in a more environmentally sustainable way. Asked if they have enough disposable income to live in a more sustainable way 38% say yes, but 33% say no.
Some consumers are prepared to make changes to live more sustainably
in part because doing so may also help them to save money. Such changes include trying to use less energy in the home, planning meals to cut food waste; and using household products in a more economical way.
Many consumers also want to see more action from businesses and policymakers to address climate change
More than one in three (35%) would like to see less product packaging, while there is also demand for better recycling facilities, more affordable public transport, a ban on single use plastics, more windfarms: and subsidised or more affordable electric vehicles.
Almost one in two consumers are prepared to pay a sustainability premium, despite the cost of living crisis
49% of people say they were willing to pay a sustainability premium before the onset of the cost of living crisis and are still happy to do so. They would be willing to pay an average of 13.15% more for greener products or services – up from 10% in 2021.
Section 3
Key Findings:Statistics
The cost of living crisis has hit many households’ finances severely, leaving many below the Green Line: unable to afford to make lifestyle changes that could help the environment. Even so, many people are still eager to try to make the way they live more sustainable; and almost half are willing to pay a sustainability premium to do so.
49%
of UK adults say they now have less disposable income than they did a year ago
of UK adults agree with this statement: “I would like to be green, but I’m not in a position to make that happen”
33%
live below the Green Line, without enough disposable income to make sustainable changes to their lifestyle
64%
agree that: “Purchasing sustainably is less of an option for me personally while the cost of living continues to rise”
64%
agree that: “Purchasing sustainably is less of an option for me personally while the cost of living continues to rise”
And yet...
49%
of people are willing to pay a sustainability premium – on average an extra 13.15% - for environmentally sustainable goods and services.
Section 4
The Green Line
The results of our research show that many people in the UK are eager to take steps to help the environment and combat climate change. But it also shows how many people are now living below the Green Line: unable to afford to make changes needed to live in a more sustainable way.
More than half the people we surveyed (52%) agree with this statement: “I would like to be green, but I’m not in a position to make that happen.”
Household disposable incomes have taken a hit
It is the cost of living crisis that has raised the Green Line. Our findings show that peoples’ ability to live in more environmentally sustainable ways has been undermined as inflation has hit household incomes. We asked in which areas people had experienced the biggest squeeze on their finances during the past year. More than one in three (37%) said household bills, while almost one in six (15%) said when buying food and drink.
Almost half of UK adults (49%) now say they now have less disposable income than they did a year ago – only 14% have more.
Do you generally have more or less disposable income now compared to 12 months ago?
Among those who say their disposable income is lower than it was a year ago, incomes have fallen by an average of
£222 per month
Almost 2 in 5
(37%) say their monthly income is between £100 and £300 lower than it was a year ago
We also asked people whether it is now generally easier or more difficult to afford what they want than it was a year ago. Just 11% say it is easier, while 44% say it is more difficult.
Sustainability feels unaffordable for many – but is still a priority where possible
Almost two-thirds of people (64%) agree that: “Purchasing sustainably is less of an option for me personally while the cost of living continues to rise”, including almost one in three (30%) who say they strongly agree.
Asked if they have enough disposable income to make sustainable changes to their lifestyle, 38% say yes, but 33% say no.
We asked those people who don’t think they have enough disposable income to live more sustainably how much extra money they thought they would need each month to fund a more sustainable lifestyle. On average, they thought they would need an extra £388.78.
We also asked people which of nine different factors affected their purchasing decisions. Cost was cited most often, by 65% of respondents, with almost half (49%) citing the feeling that they were getting a good deal.
But the sustainability of products was cited by a notable minority, about one in four people (24%), rising to one in three (33%) of those in the 18 to 24 age group and almost as many (27%) of those aged 25 to 34.
When it comes to purchasing products, whether that’s for the family or home, which of the following affect your decision to buy?
65%
Cost
49%
Getting a good deal
39%
Reviews
37%
Customer service
32%
Reputation of business
27%
Where the products are made/sourced
25%
Word of mouth
24%
How green/ sustainable the products are
15%
How green the business is
4%
None of the above
How green/sustainable the products are (by age range)
Another confirmation that that many people want to live in more sustainable ways if they can possibly afford to do so came when we asked which of 20 things people could do to live more sustainably they would love to do, if money were no object.
Buying solar panels, electric vehicles and locally produced food; insulating the house, upgrading their boiler and buying sustainably produced food, drink and other products were all cited by significant numbers of people.
Sustainable actions consumers would love to take, if money were no object
We also asked which of a number of environmentally friendly actions respondents felt they could not take because of the costs involved. Their answers included:
40%
buying an electric vehicle
38%
getting solar panels
26%
upgrading their boiler
18%
buying sustainably produced food and drink
13%
using a green energy supplier
10%
eating a vegetarian diet
In the next section of the report we look at the actions people are taking to help the environment.
Section 5
Taking Action
Our results also show what people are doing to try to help the environment. In some cases their motivation to do so comes in part from the fact that some lifestyle changes that are good for the environment can also help them to save money.
In 2023 we asked which among a list of actions people “make a concerted effort to do regularly to both help the environment and save money”. In 2021, during research used to compile Essity’s Green Response report, we had asked if people were doing some of the same or similar things, again, to save money as well as to help the environment.
A comparison of the results from both surveys shows that many people are just as committed to taking action now as were their counterparts a year earlier.
Those environmentally friendly actions include:
Those environmentally friendly actions include:
People want business and government to do more to help
Our results also show that people want more help from business and government others to help them tackle climate change. More than one in three (35%) say they would like to see less packaging on products they buy in shops. Almost as many would like to see better recycling facilities (32%) and more affordable public transport (30%).
There are also notable minorities who would like to see a range of other measures including a ban on single use plastics, more windfarms, more refill shops, access to subsidised/ affordable electric vehicles, more research into eco-friendly energy, government grants to help businesses to be greener; and more affordable inner city housing, which would allow some people to walk to work.
Which of the following sustainable solutions would you like to see more of?
Section 6
The SustainabilityPremium
But even if there are many people who really care about the environment and want to take action to protect it, the key question for many businesses will be whether consumers are prepared to spend a bit extra, if necessary, for more environmentally friendly products and services.
Our 2021 research showed that consumers were willing to pay extra – a sustainability premium – despite the onset of the cost of living crisis. A year on, even though we have lived through rapidly increasing inflation and rising interest rates, with energy costs still shockingly high as we reach the end of a difficult winter, many consumers are still willing to pay a sustainability premium for a variety of green goods and services.
Despite everything that has happened over the past 12 months…
49% of people say they are still willing to pay a sustainability premium. A year ago, 43% of respondents said this was the case.
51% say they would not be happy to pay a sustainability premium, down from 57% a year ago.
The Sustainability Premium is bigger now than in 2021
Among those who are willing to pay a sustainability premium, the average extra amount they are prepared to pay is 13.15% - up from 10% in 2021.
Just under half (48%) of those happy to pay a premium would pay between 1% and 10%. 16% would pay a premium of up to 15%; while another 15% of these respondents would pay between 16% and 20% extra. People aged between 25 and 44 are most likely to consider paying a higher sustainability premium.
If yes, how much more are you willing to pay for a more environmentally friendly version of something, before the impacts of the rise in the cost of living?
The Sustainability Premium is bigger now than in 2021
Among those who are willing to pay a sustainability premium, the average extra amount they are prepared to pay is 13.15% - up from 10% in 2021.
Just under half (48%) of those happy to pay a premium would pay between 1% and 10%. 16% would pay a premium of up to 15%; while another 15% of these respondents would pay between 16% and 20% extra. People aged between 25 and 44 are most likely to consider paying a higher sustainability premium.
If yes, how much more are you willing to pay for a more environmentally friendly version of something, before the impacts of the rise in the cost of living?
What will consumers pay a Sustainability Premium for?
We also asked for which goods and services people would be prepared to pay a sustainability premium. 44% of those happy to pay a premium would do so for groceries, down from 50% in 2021. 37% would pay a premium on sustainable health and hygiene products and services, up from 31% a year ago. In most categories more people are now willing to pay a premium than in 2021.
However, we also asked this year’s respondents how many would have paid a premium for each category of goods/services before the cost of living crisis and a comparison with those figures suggests a small negative change in each category, perhaps as a result of the worsening crisis.
Which of the following were/are you willing to pay a premium for if it benefits the environment?
What will consumers pay a Sustainability Premium for?
We also asked for which goods and services people would be prepared to pay a sustainability premium. 44% of those happy to pay a premium would do so for groceries, down from 50% in 2021. 37% would pay a premium on sustainable health and hygiene products and services, up from 31% a year ago. In most categories more people are now willing to pay a premium than in 2021.
However, we also asked this year’s respondents how many would have paid a premium for each category of goods/services before the cost of living crisis and a comparison with those figures suggests a small negative change in each category, perhaps as a result of the worsening crisis.
Which of the following were/are you willing to pay a premium for if it benefits the environment?
Section 7
How is Essity responding?
Charitable Donations
The cost-of-living crisis impacts the most vulnerable in society as household bills increase and put a strain on finances. In response, Essity has committed to donate over 2.2million essential hygiene and health products every year that will reach thousands of UK charities through our partnership with In Kind Direct. This commitment comprises of a minimum of 1million toilet rolls and 1.2m period products but we will also donate nappies, incontinence products and household cleaning products on top.
Read more about our partnerships and collaborations…
Recycling
Through innovation in waste collection and our manufacturing processes, Essity has been able to bring sustainable solutions to the UK marketplace including the world’s first paper towel recycling service and the capability to recycle used takeaway paper cups (both hot and cold drinks) and turn them into new paper products.
In addition, Essity is currently investing in our manufacturing site in Prudhoe, Northumberland where we are building a state-of-the-art recycled paper facility that will further improve our capability to make new paper products from recycled paper.
Find out more about our approach to sustainability…
Reusable Choices
Offering consumers more choice when it comes to environmentally friendly products is something we have placed a lot of emphasis on in recent years. In the UK, we have introduced reusable period underwear and reusable incontinence underwear to the market under our Bodyform and TENA brands respectively.
Reducing Waste
In 2022, Essity introduced the UK’s first coreless toilet tissue – Cushelle Tubeless – with no cardboard core. Not only does this reduce waste but it means that the roll of toilet tissue is longer which reduces packaging and ultimately means less delivery trucks on the road.
Tork PaperCircle – the world’s first paper towel recycling service – means paper towels that would have previously ended up in landfill, are now being recycled and turned into new paper products. In addition, our ability to recycled takeaway paper drinks cups is helping to reduce the volume of disposable cups that end up in landfill.
All six of Essity’s manufacturing sites in the UK are working towards achieving zero waste. In recent years we have been able to provide UK farms with bedding for animals using a by-product that would have previously gone to landfill.
Find out more about resource efficient production…
New Materials
Essity is committed to achieving 100% recyclable packaging by 2025 with all packaging made from a minimum of 85% renewable materials.
In our medical products range we have recently introduced Leukoplast Eco, our eco-friendly, sustainable dressings made from at least 90% natural and renewable materials. Leukoplast Eco’s backing material is made from natural, sustainable bamboo fibre whilst the wound pad is made from 100% plant-based material (corn starch).
Find out more about responsible sourcing…
Clearer Communications
Finally, Essity is committed to clearer communications on our packaging and in our advertising to help consumers make informed choices, both before and after purchase, that are better for the environment. For example, on our Cushelle brand we have introduced an on-pack QR code which provides consumers with immediate access to all of the information and detail behind the making of the products.
Discover more about our responsible marketing…
Section 8
Conclusions
“Essity will continue to try to learn from our customers and play our part in working towards a more sustainable future for everyone.”
Kevin Starr,
Country Manager, UK and ROI
Some of the results drawn from our research are alarming: one in three people are living below the Green Line, unable to afford to live in a more sustainable way, while around half of our respondents feel they cannot make the environment their primary consideration when deciding which goods or services to buy or use.
But our results also show that even as the crisis hits their pockets there is still a strong desire among many people to continue to try to do things that will help the environment. There seems to be a growing understanding that some of the steps people can take, like trying to reduce energy use or change the way they buy food, drink and household products can actually help them to save money. In addition, the sustainability premium, the extra amount that many are prepared to pay for more environmentally friendly goods and services has actually increased over the past year.
Our findings also show that many consumers want businesses and policymakers to do more to help them help the environment, by changing the way products are made, packaged and recycled, or by taking action to promote green energy and sustainable transport.
If consumers are still ready to try to help the environment in difficult times, what more will manufacturers, other businesses and government now do to help them to live more sustainably? For our part, Essity will continue to try to learn from our customers and play our part in working towards a more sustainable future for everyone.
Section 9
Methodology
The Green Line report is based on independently conducted research carried out on behalf of Essity by OnePoll between January 24 and January 26 2023. The total sample was a nationally representative group of 2,000 adults living in the UK.
For more information visit essity.com
