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Official Report 2017 Table of Contents

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Official Report 2017 Table of Contents FINLAND OFFICIAL REPORT 2017 TABLE OF CONTENTS ABOUT PG. 3 01 KEY INSIGHTS WHAT HAS HAPPENED DURING THE YEAR? PG. 5 BUSINESS LEADERS FOCUS MORE ON SUSTAINABILITY PG. 5 SUSTAINABILITY IS INCREASINGLY IMPORTANT PG. 7 THE WILLINGNESS TO PAY FOR SUSTAINABILITY PG. 8 THE TOP 3 MOST IMPORTANT SUSTAINABLE DEVELOPMENT GOALS IN THE NORDICS PG. 9 NORWAY, DENMARK AND FINLAND ARE CATCHING UP PG. 10 PEAK CONSUMPTION? PG. 11 02 CONSUMERS OUR FOUR BEHAVIORAL GROUPS PG. 13 BEHAVIORAL GROUPS PG. 15 BEHAVIORAL GROUPS - DEVELOPMENT 2013-2017 PG. 16 03 RANKING TOP THREE PG. 18 PLACE 4-10 PG. 19 INDUSTRY LEADERS PG. 20 INDUSTRY RANKING PG. 20 RANKING DEVELOPMENT 2013-2017 PG. 21 RANKING 2017 - FINLAND PG. 24 04 METHODOLOGY PG 39 05 ABOUT US PG 41 ABOUT 01 WHAT? 02 METHODOLOGY THE NORDICS´ LARGEST BRAND STUDY THREE-PART STUDY BASED ON THE FOCUSING ON SUSTAINABILITY OPINIONS OF 32 000 CONSUMERS Sustainable Brand Index™ is The Nordics´ largest brand Sustainable Brand Index™ is a three-part study based on two study focusing on sustainability. Based on 32 000 consumer quantitative survey studies and one qualitative study in the form of in-depth interviews. interviews, the study maps out and analyzes the areas of sustainability and brands from the consumer perspective. The Methodology 2017 Sustainable Brand Index™ consists of the following parts: • Sustainable Brand Index™ is a three-part study based on two quantitative survey studies and one qualitative study in • Evaluation and Ranking of Brands From the the form of in-depth interviews. Sustainability Perspective The quantitative studies were conducted through online 837 brands are evaluated and ranked based on the • interviews between November 2016 and January 2017. consumers´ perception of their work within the area of The qualitative study was conducted in February 2017. sustainability. • Every brand is evaluated by at least 1000 people. In total, 837 brands were evaluated by 32 000 people. • Mapping of the Sustainable Consumer Segmentations of sustainable consumers and what drives • The target group is defined as follows: The public – them to consume sustainably. Swedish, Norwegian, Danish and Finnish consumers, 16 years and older. • Development and Trends in the World Development and trends in the world that affect companies • The basis of the study is UN Global Compact’s 10 as well as the area of sustainable branding. principals about environmental and social responsibility. This is supplemented with an external definition focusing The study was founded in 2011 and is now carried out on the consumers’ perception of sustainability, meaning annually in Sweden, Norway, Denmark, Finland and The their expectations and demands on companies. Netherlands. • The selection of brands is based on the following factors: market presence in the concerned country, turnover & market share and general brand awareness. 03 WHY? THE TOOL FOR SUSTAINABLE BRANDING The aim of Sustainable Brand Index™ is to highlight and raise awareness about the value of sustainable branding. By motivating and inspiring, we help companies improve their work and encourage them to communicate. SUSTAINABLE BRAND INDEXTM IS Sustainable Brand Index™ concretises the result and gives CARRIED OUT BY THE INSIGHT companies tools to drive the sustainability work forward AGENCY SB INSIGHT through branding and communication. 3 PART 01 KEY INSIGHTS 01 KEY INSIGHTS 2017 01 WHAT HAS HAPPENED DURING THE YEAR? 2016 was a turbulent year in every way. Except the new Sustainable Development Goals and an increased interest in climate change, pure sustainability issues got less focus than previous years. World interest instead revolved around Brexit, Russian aggression, a continuing refugee crisis, extremist views and of course the US presidential election. BUSINESS LEADERS FOCUS MORE ON 02 SUSTAINABILITY The new Sustainable Development Goals have made companies and their leaders more aware of the challenges facing the world. We see an increased focus on sustainability among both management teams and boards. Climate change has been in focus due to new alarms about the Arctic and the ice sheets melting as well as extreme weather conditions in different parts of the world. Climate effects are also more visual and closer to each individual, making the matter more tangible and relevant. 5 01 IMPLICATIONS FOR COMPANIES Rarely in history have there been so many issues in the world to address for businesses. You have every possibility to be a part of the discussion about Trump, Putin, refugees, extreme right-wing winds or climate change. There are now sides to choose and positions to take, and consumers expect you to do just that. To read more about the Sustainable Development Goals Click here 6 01 03 SUSTAINABILITY IS INCREASINGLY IMPORTANT For quite some time now, debates and discussions in society have been marked by concerns at a macro level. Brexit shook the markets, both in the UK and in the Nordic countries. The Russian aggression, the US presidential elections as well as the refugee crisis and the strong right-wing winds have been occupying people's minds the most. Therefore, we see that our indicator on how often people discuss sustainability falls slightly this year. It is thus less talk about sustainability issues. This is not something to put too much weight on, as it is due to other issues having gained ground. Meanwhile, the indicator on the impact of sustainability on purchase decisions continues to increase. More people than ever think of sustainability in the purchasing situation. These figures do not imply that consumers are consistently acting sustainably in every decision they take, but it indicates that interest and aspirations continue to increase. THE % OF CONSUMERS WHO DISCUSS SUSTAINABILITY: 80 % 70 % 63% Sweden 60 % 56% Finland 50 % 51% Norway 50% Denmark 40 % 2014 2015 2016 2017 THE % OF CONSUMERS WHO SAY THAT SUSTAINABILITY IMPACTS THEIR BUYING DECISION: 40 % 36% Sweden 35 % 33% Denmark 32% Finland 30 % 25 % 25% Norway 20 % 2014 2015 2016 2017 7 01 04 THE WILLINGNESS TO PAY FOR SUSTAINABILITY In this year's study, we have developed a new way to measure the willingness to pay for sustainability. We have interviewed consumers about various everyday situations, such as eating lunch. We then tested where they draw the line money-wise when paying a price-premium for sustainability. The proportion of consumers who are paying 10% more for a sustainable alternative is quite high in all Nordic countries. Between 33% and 41%. The study then shows that the limit to paying is somewhere around a 25% price- premium. In that case, only around 20% of consumers are ARE actually choosing to pay more. These figures also rhymes ”MORE THAN 33% relatively well in size with our Smart consumer group, the WILLING TO PAY 10% MORE FOR group that we consider to be the future sustainable SUSTAINABLE PRODUCTS" consumer (see more in the consumer chapter). SWEDEN NORWAY DENMARK FINLAND WILLING TO PAY.. 10% 41% 33% 35% 39% more 25% 20% 21% 20% 22% more 8 01 05 THE TOP 3 MOST IMPORTANT SUSTAINABLE DEVELOPMENT GOALS IN THE NORDICS GOAL #1 GOAL #2 GOAL #3 SWEDEN NORWAY DENMARK FINLAND https://sustainabledevelopment.un.org/?menu=1300 9 01 06 NORWAY, DENMARK AND FINLAND ARE CATCHING UP For the first time, we now see a clear sign that Norway and Finland are gaining on Sweden in terms of the consumer development level within sustainability. Denmark has long been well-developed but more polarized, meaning that consumers in general have been divided into two major groups; those who care a lot about sustainability, and those who do not care at all. The clearest sign that Norway, Finland and Denmark are now walking the same way as Sweden did in 2012-2013 is that there is a notch in the curve of the Sustainable Brand Index score. The score drops more sharply in these countries in 2017. The reason is not that people are more negative, but rather that they are less comfortable about speaking their minds on the performance of brands. Consumers realize that they simply do not know enough to have an opinion. This makes them take a step back and wait for more information. This is why we see a negative trend, the same as seen in Sweden around 2012-2013. AVERAGE SCORE SBI TOTAL ALL COUNTRIES 60 % 44% 40 % 32% 31% 20 % 26% 0 % 2011 2012 2013 2014 2015 2016 2017 Sweden Norway Denmark Finland 10 01 07 PEAK CONSUMPTION? Perhaps we are now getting closer to a real understanding among consumers about "Peak Consumption". They seem to begin to realize that increased or excessive consumption is something negative. An indication of this is the fact that we see a continued decline for brands that in different ways symbolise consumption. The clearest examples of this include IKEA in Norway and Denmark, Clas Ohlson in Sweden and Asko in Finland. At the same time we see examples of more circular services, primarily second-hand services like Blocket and Tradera in Sweden, gaining ground among consumers. Another sign that people are becoming more aware of sustainability is that the traditional "bad" sectors (fuel, aviation, cars and travel) see a continued increase in the proportion of negative consumers. 11 PART 02 CONSUMERS WHO IS THE SUSTAINABLE CONSUMER? We have extracted a number of patterns by studying how consumers act in different situations and cross analysed this with the underlying structures of their attitudes. From these patterns, we have identified four behaviors that consumers show in relation to sustainability and companies. 02 OUR FOUR BEHAVIORAL GROUPS 01 EGO Ego is usually a man with strong views about how society functions, or at least how it should function. He DO NOT CARE ABOUT has traditional values. His greatest interests are his own SUSTAINABILITY existence, things happening in his own country, the local community, and of course the local sports team.
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