The global shift towards sustainability is one of the most pressing challenges of our time. As we move towards a greener economy, the role of consumers in driving change cannot be overstated. Consumer behavior, particularly in relation to environmental sustainability, is a crucial lever for encouraging businesses to adopt more eco-friendly practices and offer sustainable products and services. However, while many consumers express concern about environmental issues, various obstacles prevent them from fully engaging in sustainable consumption. This includes a lack of clear, accessible information about the environmental impact of products, the prevalence of misleading green claims (greenwashing), and factors such as cost, availability, and the convenience of sustainable options. In this context, it is essential to examine both the challenges consumers face and the ways in which policy, business initiatives, and digital innovations can empower them to make more informed, sustainable choices.
The Growing Concern of Consumers about Environmental Issues
The global community is confronted with interconnected crises such as climate change, pollution, and the loss of biodiversity. Addressing these issues requires coordinated efforts across various sectors. While policymakers often focus on supply-side measures, such as transitioning to renewable energy sources and regulating industries, demand-side actions—those that engage consumers in sustainable behavior—are equally important. Research has shown that with the right infrastructure, policies, and technologies in place, consumer behavior can play a pivotal role in achieving substantial reductions in greenhouse gas emissions. Some estimates suggest that by 2050, demand-side measures, including changes in sectors such as food, housing, and mobility, could lead to a 40-70% reduction in emissions. This represents a significant, untapped opportunity to address climate change through consumer-driven actions.
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Consumer concern about environmental issues is widespread, as evidenced by the 2024 OECD survey, which found that the majority of consumers (68%) across 18 countries expressed concern for the environment, with 74% stating that environmental protection was important to them. Furthermore, 60% of those surveyed indicated they were willing to make sacrifices to protect the environment. These concerns, however, often translate into action only to a limited extent, primarily due to various obstacles in the marketplace that make sustainable consumption challenging. Despite growing awareness, a significant gap remains between consumers’ environmental concerns and their actual purchasing decisions.
Barriers to Sustainable Consumption
One of the primary reasons consumers fail to act on their environmental concerns is the lack of clear and reliable information about the environmental impact of products. Consumers often find it difficult to differentiate between genuinely sustainable products and those that make misleading or unsubstantiated claims. Greenwashing, or the practice of making deceptive environmental claims, is a significant challenge in this regard. A recent investigation by the International Consumer Protection and Enforcement Network (ICPEN) found that 40% of the green claims on e-commerce websites were misleading. The 2024 OECD survey confirmed this, with most consumers expressing skepticism about the credibility of environmental claims made by brands. Many consumers believed that brands claiming to be environmentally friendly were not necessarily more sustainable than those that did not make such claims.
Further complicating matters is the confusion surrounding eco-labels and environmental terms. Many consumers struggle to understand the meaning of terms like “recyclable,” “carbon neutral,” and “recycled,” and may also have difficulty distinguishing between legitimate third-party certifications and those that are self-declared or fictitious. This lack of understanding can lead to the “halo effect,” where consumers assume that a product with one environmentally friendly feature is entirely sustainable, even if other aspects of the product or its production process contradict that assumption.
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Beyond misleading claims, the cost and availability of sustainable products are major barriers to sustainable consumption. While many consumers express a desire to choose environmentally friendly options, they are often deterred by higher prices or the limited availability of such products. For example, research has shown that price remains a dominant factor in consumers’ decision-making, often outweighing environmental considerations. Additionally, the lack of affordable, convenient, and accessible options for product repair or reuse further limits consumers’ ability to engage in sustainable consumption. The perception that sustainable products are often more expensive and less convenient to obtain is a significant obstacle to making greener choices.
The Role of Policy in Overcoming Barriers
Effective consumer policies are essential for addressing the obstacles that prevent consumers from choosing more sustainable products. One of the key areas of focus has been tackling greenwashing, which not only misleads consumers but also undermines the trust in genuine sustainable products. To combat this, many jurisdictions are implementing policies aimed at ensuring that environmental claims are clear, accurate, and substantiated. These measures include laws that specifically target misleading environmental claims, third-party certification schemes, and business guidelines to promote transparency.
Another crucial aspect of policy involves providing consumers with accurate, easily accessible information about the environmental impact of products. This can be achieved through product labeling, consumer education campaigns, and industry self-regulation. However, policymakers must also be careful to avoid overwhelming consumers with excessive information. Clear and concise information that highlights the most relevant environmental impacts of products is essential for enabling informed decision-making.
In addition to combating greenwashing, policymakers are also focusing on broader issues that impact sustainable consumption, such as product durability, repairability, and safety. For example, policies that encourage product repair and outlaw planned obsolescence can help extend the lifespan of products and reduce the environmental impact associated with their disposal. The “right to repair” movement, which allows consumers to repair products rather than replace them, is gaining momentum in many countries and can play a crucial role in promoting a circular economy. Such policies, when combined with measures to increase the availability of affordable and convenient sustainable products, can create a more sustainable marketplace for consumers.
Some jurisdictions have adopted a whole-of-government approach to promoting sustainable consumption, involving coordination across multiple policy areas. These measures include public-private partnerships to improve product design, recycling, and reuse, as well as policies that make sustainable products more affordable and accessible. By taking a comprehensive approach to sustainable consumption, governments can create an environment where consumers are empowered to make greener choices.
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The Role of Businesses and Digital Technologies in Facilitating the Green Transition
Beyond policy interventions, businesses also have a critical role to play in promoting sustainable consumption. Many companies are responding to increasing consumer demand for sustainable products by adopting more sustainable business practices, such as designing products that are durable, repairable, and recyclable. The OECD’s updated guidelines for multinational enterprises emphasize the importance of providing safe, durable, and environmentally friendly products, as well as raising consumer awareness about the environmental implications of product use.
In response to the growing interest in sustainability, many businesses are launching programs to encourage the sustainable use of products and prevent premature disposal. For example, companies in industries such as apparel, footwear, and electronics are developing programs that extend the life of their products through repair, refurbishment, or reuse. Additionally, some businesses are adopting “design with second life in mind” principles, ensuring that products are designed for longevity and can be reused or recycled at the end of their life cycle.
Digital technologies also have the potential to facilitate the green transition by providing consumers with the tools and information they need to make more sustainable choices. For example, online resale markets, which allow consumers to buy and sell second-hand products, can be supported by digital tools such as verified reviews, buyer protection schemes, and quality certifications. These digital services can help consumers feel more confident about purchasing second-hand or refurbished products, which can reduce waste and promote a circular economy.
Furthermore, digital tools such as smart meters, predictive maintenance features in connected devices, and digital product passports can assist consumers in optimizing their energy use, maintaining products for longer, and making more informed choices about the sustainability of the products they purchase. In 2024, the European Union introduced new legislation requiring products sold in the EU to have a digital product passport, which provides consumers with reliable, comprehensive information about the sustainability characteristics of products.
While digital technologies offer significant benefits, they also pose potential environmental challenges. The environmental footprint of e-commerce, including the impact of product returns and the energy consumption associated with digital infrastructure, must be carefully considered. As the digital transition accelerates, it is essential to balance the benefits of digital tools with their environmental costs to ensure that they contribute positively to the green transition.
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The green transition presents both significant challenges and opportunities for consumers, businesses, and policymakers alike. While many consumers are concerned about the environment and are willing to make changes in their consumption habits, they face numerous barriers, including misleading green claims, a lack of accessible information, and issues related to the cost and availability of sustainable products. To address these challenges, effective policies, business innovation, and the responsible use of digital technologies are essential. By ensuring that consumers have access to accurate information, promoting sustainable business practices, and facilitating the use of digital tools, we can empower consumers to make greener choices and drive the transition to a more sustainable economy. Ultimately, the success of the green transition depends on the collective efforts of all stakeholders to create a marketplace that supports sustainable consumption and fosters a more environmentally conscious society.
Source : Organisation for Economic Co-operation and Development ( OECD )
InfoCons – European Organization for Consumer Protection and Promotion of Programs and Strategies , a full member of the World Organization Consumers International , founding member of the Federation of Consumer Associations , and member of ANEC .