New research into the circular economy has found that almost half of Australian consumers are willing to pay extra for a product that was made using sustainable practices.
The study from app comparison site GetApp found that 49 per cent of consumers are willing to pay more for products they perceive to be sustainable, and that 78 per cent of consumers think that recycling could be one of the most effective ways to stimulate the circular economy.
Which is kind of new given that we heard for quite a few years that consumers have good intentions but that these don’t necessarily extend into their pockets.
Unfortunately, the survey found that just 13 per cent of the 1013 participants in the survey actually knew what “circular economy” meant.
Even worse (but maybe not surprising given our “lost decade” of adversarial government intervention to stop sustainability) the survey found that the level of awareness of the circular economy concept in Australia is low compared to other countries such as the Netherlands, where one in three people are familiar with the concept.
Andrew Blair, analyst at GetApp Australia said the results revealed that consumers expressed dissatisfaction with company actions to reduce waste, and that it is vital that companies educate their consumers about what they are doing to be more green.
“On the other hand, consumers positively conveyed that companies have a sincere belief in the need to implement practices aligned with the circular economy, albeit at a company cost.
“There is a division of consumers willing to pay more for products produced through circular economy principles. Therefore, companies looking to make their mark in the sustainable products market must think carefully about their marketing approach by informing their customers and raising awareness about the circular economy.”
However, businesses should be wary to jump on the green messaging to soon.
A new report from Mobiquity reveals that almost half of Australian banks are at risk of greenwashing. This comes as the Australian Competition and Consumer Commission last week announced a crackdown on false environmental claims.
The research found that 43 per cent of Australian banks aren’t measuring ESG impact effectively against their sustainability targets – and, most worryingly, highlighted that approximately half of all banks are skipping ESG reporting entirely.
Gustavo Quiroga, general manager for Mobiquity in APAC said: “For the banking sector to truly show its contribution in creating a positive impact, standardised and consistent reporting on ESG targets will require implementation, along with the need for regulation on when and where such reports are delivered and held. This will help bypass the reporting complexity challenges that the industry is currently facing.”
It looks like going green will take a radical rethink of our economic practices – particularly, our consumption.
In Europe, the EU Parliament has approved a new law set to come into full effect by 2024 to force Apple to introduce a single charging port for most electronic devices. (Looks like we’re not the only ones frustrated with this.)
The first law of its kind in the world, the reform passed with a huge majority in the European Parliament to make USB-C connectors used by Android-based devices the standard across the bloc.
It will also apply to laptops from 2026.
Shares in EU semiconductor manufacturers STMicro and Infineon spiked immediately after the vote.
And in more news on the technology front, there’s a buzz growing in the industry as digital twins are set to revolutionise the built environment. Or so the hype would have us believe.
Procore, a global provider of construction management software, is the latest company to announce a partnership with smart infrastructure and real estate provider Willow, to offer digital twin solutions for customers.
The partnership allows Procore, which has had more than one million projects run through its platform, to offer a more streamlined digital record system, from construction to operations.
Willow’s digital twin software WillowTwin, transforms data into a virtual replica of a building, allowing users, including Transport for NSW, to improve operational efficiency, reduce costs, and improve sustainability management and Internet of Things (IoT) Operational Technology security across their facilities.
We recently spoke with digital twin specialist Paul King from infrastructure engineering software company Bentley Systems, who said in The Fifth Estate’s podcast that digital twins are pretty much revolutionising the built environment industry, helping designers and engineers make better choices about building design and maintenance.
And Willow chief executive and co-founder Joshua Ridley said the trend is set to transform the sector.
“We believe digital twins will transform the built environment,” he said.
He said the partnership with Procore was an opportunity to deploy the technology faster throughout the industry.
“Unfortunately, the survey found that just 13 per cent of the 1013 participants in the survey actually knew what “circular economy” meant.”
> This is a strange comment. It presumes that there is one globally accepted definition of ‘circular economy’ and that most participants simply didn’t know what it was or answered incorrectly. But there isn’t any one definitive definition of circular economy. I’d bargain that even sustainability professionals – experts in the field itself – would provide definitions that are equally as diverse and ‘incorrect’.
“There is a division of consumers willing to pay more for products produced through circular economy principles. Therefore, companies looking to make their mark in the sustainable products market must think carefully about their marketing approach by informing their customers and raising awareness about the circular economy.”
> Talk about coming to the wrong conclusion! This is precisely the exact opposite of what survey results suggest. What the results reveal is that companies merely need to greenwash in order to make more money from consumers. People are willing to pay more for the appearance of sustainability, without actually understanding the concepts. No need for companies to “raise awareness” – just apply the veneer of “circular” to a product or service and people are willing to pay more for it.