Transparency gaps hinder consumer trust in sustainable products

Brands must address skepticism with clear and credible sustainability efforts.

Despite businesses increasing their focus on sustainability, a third of consumers remain hesitant to pay extra for sustainable products, according to a report by KPMG and GS1. Experts argue that transparency and authenticity are critical in bridging the trust gap and driving consumer commitment to sustainability.

Anna Lin, Chief Executive of GS1 Hong Kong, highlighted a notable shift in consumer attitudes over the years. "Last year, we found that 64% of consumers are actually willing to pay a premium for products being marketed or certified as sustainable," she said.

However, skepticism remains a barrier. Lin pointed out that in previous years, consumers expected rewards for making sustainable choices. She attributed this shift to increased awareness of environmental impacts, especially among millennials and Gen Z consumers who experience climate-related disruptions firsthand.

Anson Bailey, Partner at KPMG China, emphasised that trust is a major factor influencing consumers' purchasing decisions. "Consumers today are more educated and understand they need to play a part," he said. He warned that consumers have access to extensive information and can easily detect greenwashing or marketing spin.

"Brands need to be very open and honest with regards to their supply chains," Bailey stressed, noting that transparency in sourcing, production, and distribution is no longer optional. The demand for accountability is particularly pronounced among younger consumers who expect brands to take genuine action in reducing their environmental impact.

While cost remains a concern, Lin argued that sustainability initiatives do not necessarily have to lead to price increases. She cited examples of businesses using IoT devices and smart technologies to reduce food waste and energy consumption, which ultimately lowered operational costs.

Bailey added that sustainability is now a boardroom priority, with corporate leaders committing to net-zero and decarbonisation plans. "Sustainability is no longer just with the Chief Sustainability Officer; it's a boardroom priority," he said.