Healthy and Sustainable Living Consumer and Expert Perspectives from Asia

Webinar 11 December 2019 Introduction

Wander Meijer Sonalie Figueiras Karen Ho Anders Director Asia Pacific Founder and Head of Corporate and Lennartsson GlobeScan Editor-in-Chief Community Sustainability Country Sustainability Green Queen WWF-Hong Kong Manager IKEA

2 Methodology

Participating Markets, 2019 • Representative online samples of approximately 1,000 adults per market in each of 25 markets

• 7,000 people in Asia: , China, Hong Kong, S Korea, , Philippines and Indonesia

• Samples representative of online population, weighted to gen-pop census

• Online surveying between April and May 2019

3 Why Now?

4 Top concerns for Asian consumers

Seriousness of Global Problems, “Very Serious,” Asia* vs Average of 25 Markets, 2019

Environment/pollution 60 Shortages of fresh water 40 66 58

Climate change / global warming 59 Extreme poverty 40 62 58

Terrorism 56 Human rights abuses 38 67 55

Single-use plastic waste 55 Spread of human diseases 38 60 50

Air pollution 54 Not enough food to feed people 36 60 54 51 32 Corruption Mental health problems 62 40

Depletion of natural resources 47 Unequal treatment of women 29 62 40

Gap between rich and poor 45 State of global economy 28 Asia, average 52 36 of 7 markets Loss of biodiversity 42 Transnational migration 17 56 28 Global, average of 25 markets

*Includes China, Hong Kong, India, Indonesia, Japan, Philippines, and South Korea T1. For each of the following possible global problems, please indicate if you see it as a very serious, somewhat serious, not very serious or 5 not at all serious problem. Declining levels of trust across many institutions

Trust in Institutions, Net Trust*, Asia**, 2014–2019

80

Science/academic institutions UN 60 Fellow citizens NGOs National government Large charitable foundations 40 Global companies Press/media

20

0

*“A lot of trust” and “Some trust” minus “Not much trust” and “No trust at all” **Includes China, India, Indonesia, and South Korea. 6 Not all markets were asked in all years. Inclination to reward companies is increasing in Asia

Rewarding of Companies Seen as Socially Responsible, Asia*, 1999–2019

50 49 45 40 35 32 30 25 20 15 10 Rewarded 5 Considered rewarding 0

*Includes China, India, Indonesia, and South Korea. Not all markets were asked in all years. This question was previously asked using an in-person and telephone methodology. T7. Over the past year, have you considered rewarding a socially responsible company by either buying their products or speaking positively about the 7 company to others? Would you say you have...? Prioritize Healthy and Sustainable Living

Asia* vs Average of 25 Markets, 2019

Asia A major A large A moderate A small Not a priority priority priority priority priority

Priority of living living in a way that is good for you, good Intent 14 33 37 13 3 for other people and good for the environment

Average of 25 Markets

Priority of living living in a way that is good for you, good Intent 16 38 34 10 2 for other people and good for the environment

*Includes China, Hong Kong, India, Indonesia, Japan, Philippines, and South Korea Q12c. Compared with everything else that is happening in your life, how much of a priority is it for you to live in a way that is good for you, good for other people, and good 8 for the environment? Broad gap between intent and action in Asia and globally

Asia* vs Average of 25 Markets, 2019

A major A large A moderate A small Not a Asia priority priority priority priority priority Priority of living living in a way that is good for you, good 33 13 Intent for other people and good for the environment 14 37 3

Completely Mostly Moderately A little Not at all

Living in a way that is good for you, good for other people, 7 27 44 20 3 Action and good for the environment, all at the same time

Average of 25 Markets A major A large A moderate A small Not a priority priority priority priority priority Priority of living living in a way that is good for you, good 16 38 34 10 2 Intent for other people and good for the environment

Completely Mostly Moderately A little Not at all Living in a way that is good for you, good for other people, 6 31 47 14 2 Action and good for the environment, all at the same time

*Includes China, Hong Kong, India, Indonesia, Japan, Philippines, and South Korea Q12a. Thinking of your life overall (especially what you eat, what you buy, how you go from place to place and how you consume energy), to what extent do you think you are living in a way that is good for you, good for others, and good for the environment, all at the same time?; Q12c. Compared with everything else that is 9 happening in your life, how much of a priority is it for you to live in a way that is good for you, good for other people, and good for the environment? Fewer than one in ten respondents in Asia are fully enabled

Asia* vs Average of 25 Markets, 2019

A major A large A moderate A small Not a Asia priority priority priority priority priority Priority of living living in a way that is good for you, good 33 13 Intent for other people and good for the environment 14 37 3

Completely Mostly Moderately A little Not at all

Living in a way that is good for you, good for other people, 7 27 44 20 3 Action and good for the environment, all at the same time

Average of 25 Markets A major A large A moderate A small Not a priority priority priority priority priority Priority of living living in a way that is good for you, good 16 38 34 10 2 Intent for other people and good for the environment

Completely Mostly Moderately A little Not at all Living in a way that is good for you, good for other people, 6 31 47 14 2 Action and good for the environment, all at the same time

*Includes China, Hong Kong, India, Indonesia, Japan, Philippines, and South Korea Q12a. Thinking of your life overall (especially what you eat, what you buy, how you go from place to place and how you consume energy), to what extent do you think you are living in a way that is good for you, good for others, and good for the environment, all at the same time?; Q12c. Compared with everything else that is 10 happening in your life, how much of a priority is it for you to live in a way that is good for you, good for other people, and good for the environment? How?

11 Experts: Corporate Sustainability Leaders 2019 , Patagonia, and IKEA Are Most Recognized Global Leaders

% of Experts, Total Mentions, Unprompted, 2019

Unilever 37 Patagonia 27 IKEA 13 Interface 9 Natura 8 Danone 7 Nestlé 6 Marks & Spencer 5 Tesla 4 BASF 3 Apple 2 Question: What specific companies do you think are leaders in integrating sustainability into their business Procter & Gamble 2 strategy? Please enter a maximum of 3 companies in the spaces provided.

| 12 Experts: Corporate Sustainability Leaders 2019 Unilever, Patagonia, and IKEA Are Most Recognized Global Leaders

% of Experts, Total Mentions, Unprompted, 2019

Improve 1B+ lives; halve Unilever 37 enviro footprint; double the Patagonia 27 business IKEA 13 Interface 9 “In business to save our home planet” Natura 8 Danone 7 Nestlé 6 “A better life for the many people” Marks & Spencer 5 Tesla 4 BASF 3 Apple 2 Question: What specific companies do you think are leaders in integrating sustainability into their business Procter & Gamble 2 strategy? Please enter a maximum of 3 companies in the spaces provided.

| 13 Main barriers both in Asia and globally

Barriers to Improving Lifestyle to Be More Healthy and Sustainable, Total Mentions, Asia* vs Average of 25 Markets, 2019 Asia Average of 25 Markets

Too expensive 45 49 Not enough government support 41 47 I'm not sure how 30 27 I like the way I live now 25 25 Inconvenient 25 18 Not enough business support 24 31 Other people not doing it 23 21 Won't make any difference 23 18

Not enough NGO/charity support 21 22 Leadership I don't have time 18 16 Convenience Motivation Don't trust what I read/hear 14 18 Cost I'm not personally concerned 11 9 Information

*Includes China, Hong Kong, India, Indonesia, Japan, Philippines, and South Korea. Q13. What is preventing you from living in a way that is good for you, good for other people, and good for the environment? Please select 3 things from 14 the following list in order of importance, with 1 being the most important, 2 the second most important, and 3 the third most important. Main Drivers - Analysis

Drivers of a Healthy and Sustainable Lifestyle, Individual Actions/Attitudes,

15 Main Drivers - Analysis

Drivers of a Healthy and Sustainable Lifestyle, Individual Actions/Attitudes,

16 Where to help Asian consumers

Drivers of a Healthy and Sustainable Lifestyle, Individual Actions/Attitudes,

17 Actions and Enablers

Helpfulness of Actions to Enable Healthy and Sustainable Living, “Very Helpful,” All Sectors, Asia*, 2019

Products/services that last a long time 33 Protecting privacy of personal data 33 Eliminating harmful ingredients 32 Affordable products/services 30 Open about impacts of products/services 30 Reducing impacts on climate change 29 Informing on how to live healthier 29 Reducing negative environmental impacts 28 No energy/materials wasted in operations 28 Investing in science/R&D 27 Same price for socially/env. friendly products 27 Treating employees fairly 27 Informing on living in env. friendly way 27 Products/services Advocating for better policies/behaviors 23 Operations Communications/advocacy Third-party certification 22

*Includes China, Hong Kong, India, Indonesia, Japan, Philippines, and South Korea. Q17. Now I would like to ask you how [INSERT SECTOR] can help you live in ways that are good for you, good for other people, and good for the environment. 18 Please rate each of the following actions as very helpful, somewhat helpful, a little helpful, not very helpful, or not at all helpful… The Generation Gap

By Age, Asia,* 2019

Brand Loyalty Motivated Brand Loyalty Motivated by Frequency of Feeling Feel Guilty about Negative by Being Part of Movement Bigger Making Positive Impact in Stressed or Anxious Impact on the Environment than Myself Community/World All of the time Strongly agree A great deal Most of the time Somewhat agree A great deal A fair amount A fair amount

Total 8 19 27 14 34 48 16 40 56 22 40 62

Gen Z 13 21 34 20 36 56 21 44 65 29 42 71 (18-24) Millennial 9 20 29 17 36 53 20 40 60 27 39 66 (25-44) Gen X 7 18 25 12 34 46 15 38 53 21 41 62 (45-54) Baby Boomers+ 4 18 22 8 30 38 9 35 44 13 37 50 (55+)

*Includes China, Hong Kong, India, Indonesia, Japan, Philippines, and South Korea.

19 Consumer Segmentation

Healthy and sustainable Healthy and sustainable Asia, 2019 lifestyle lower priority lifestyle higher priority

Higher

Practicals 42%

36% Aspirationals

Advocates

22% Lower consumerism

Less social/ More social/ environmental Sustainable Living environmental concern concern 20 Consumer Segmentation

Healthy and sustainable Healthy and sustainable Asia, 2019 lifestyle lower priority lifestyle higher priority

Higher consumerism

Practicals 42%

36% Aspirationals

Advocates

22% Lower consumerism

Less social/ More social/ environmental Sustainable Living environmental concern concern 21 Conclusions

• Increasing concerns on the environment in Asia

• Good level of Intent to live Healthy and Sustainable Lifestyle

• Much less action

• Several barriers

• Desire for a more Healthy and Sustainable Lifestyle – especially strong among younger generations

• What Now? And How?

22 Discussion and Q&A

Sonalie Figueiras Karen Ho Anders Founder and Head of Corporate and Lennartsson Editor-in-Chief Community Sustainability Country Sustainability Green Queen WWF-Hong Kong Manager IKEA China

23 Thank You [email protected] www.globescan.com

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