Eco isn't enough: why sustainability in retail must be affordable for all Retailers must make eco-friendly products affordable to all, bridging the gap between sustainability and cost.
By Dean Richmond Edited by Patricia Cullen
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur United Kingdom, an international franchise of Entrepreneur Media.
Despite making significant progress in their green efforts – with 51% of retailers now prioritising sustainable materials in their packaging, according to Deloitte's 2024 survey – there's still significant room for growth when it comes to eco-friendly consumerism, particularly in terms of improving access to environmentally friendly products.
Eco-friendly products and services are becoming increasingly important, with 75% of young people aged between 12 and 27 valuing sustainable practices more than brand names, according to social impact consultancy, DoSomething. Nevertheless, green products, services and efforts still tend to come with a price increase associated, which can serve as deterrent or even as a barrier to certain consumers. Even when this isn't the case, it can seem that way to consumers, with sustainability labels proven to influence buyers' price perception.
Retailers truly looking to increase their green impact must do more to challenge these difficulties, not only lowering prices on sustainable products wherever possible but also investing more into consumer education to show their audiences that buying green doesn't have to mean paying more – at least in the longer term. It's vital for the impact of planet-first practices and products to be put within reach of everyday consumers hit hard by the cost-of-living crisis and inflation in order for environmental initiatives to prove successful. This means not only improving financial accessibility – but improving access through clearer understanding too.
The green price tag: who's really paying for eco-friendly retail?
Retail is one of the world's largest carbon contributors, accounting for approximately 25% of global emissions. Most of these emissions stem from supply chains rather than in-store running costs, according to the World Retail Congress. However, the burden of going green often still ends on consumers' shoulders. This is particularly the case for sustainably produced goods, with PwC confirming that 80% of people will pay more for ethical products.
The issue is that such price hikes remain a barrier for many, creating an imaginary divide in the population: the virtuous consumers who can afford green products and the less green-focussed consumers who cannot. The guilt that can accompany resorting to cheaper yet less sustainably positioned resources could even tip those struggling with the cost of living into further poverty, which is not something that a socially conscious retailer would want to promote. More than just a question of economics, improving access to sustainable products also becomes a matter of ethical responsibility.
Beyond the affordability gap, there is also a division in consumer understanding, with Bain & Company revealing that despite 76% of consumers wanting to prioritise sustainable living, the majority don't know how. People are struggling to identify what sustainable choices look like when funds are limited, concerned that they cannot afford them. Brands need to step up to address this, acknowledging that pricing alone can constitute a form of accessibility – something that must become equal for all, especially when we're talking about something as vital as green products. To make sustainability viable in the long term, green initiatives must be available across all income brackets.
Breaking the green ceiling
The financial pressures of green consumerism already appear to be taking a toll, with the Sustainable Consumer report revealing that, compared to last year, fewer consumers are adopting eco-friendly lifestyles due to costs. 61% of those surveyed cited price as the primary barrier to adopting a green lifestyle, with Ipsos confirming that 44% of UK consumers feel sustainable products are out of their economic reach. The research company likewise reported that 39% of buyers feel confused about why greener options tend to cost more.
Whilst retailers can't always bear the brunt of additional production and packaging costs on the consumer's behalf, they do have a duty to be environmentally and socially responsible. And this means making sustainable choices accessible to all. Sustainability doesn't have to be expensive. A socially responsible retailer understands that a low-cost, sustainable choice should be just as accessible as high-cost options and, when this is not possible, they should be encouraged to find different ways in which to offset these costs for the consumer, such as offering higher-quality, longer-lasting sustainable options so consumers don't have to buy more.
Take our small-scale, family-owned business at Pets Corner, for example, where we have begun to bridge the divide between in-house practices and the sustainable practices of our customers by combining 100% renewable energy across all our stores with the best quality products on the market. Consumers might pay more initially in some cases, but their sustainable choices will last much longer – saving them money in the long term. In the end, then, it is us paying for the majority of our environmental contributions, through things like green energy, rather than these costs being transferred to the consumer by asking them to repeatedly make expensive purchases of items that won't last long.
Contributing to social accessibility in small ways like these is really important to us, as we believe that commitment to social improvement is just as important as supporting the environment. That's why Pets Corner goes above and beyond to give back to both, not only financing the Great British Litter Survey to clean up our natural world, but also restoring local woodlands for the benefit of the community. This is a clear example of how retailers can take financial responsibility for environmental initiatives, as they support communities rather than perpetuating perceived green inaccessibility for consumers. Not all green actions need to centre around the direct sale of sustainable products, though this can be helpful. It's all about making a difference through all available actions, including products but also through other charitable or community-oriented actions wherever possible, too.
Balancing green goals with social good
It's time we approached green consumerism from more than just a marketing angle. Eco-friendly packaging and green branding initiatives might attract the attention of younger, climate-conscious consumers. But it's not fair to ask buyers to pay more for these products without the long-term quality to back it up, particularly in light of the current cost of living. Likewise, it's not fair to request this without explaining the reasons why there may be higher chargers for green products and services, and without showing that as a retailer, you are also making green efforts and lifestyle changes of your own.
For more wide-angled impact, we have to tackle the social side of sustainability that's too often forgotten. In other words, retailers must balance environmental responsibility with social impact, recognising that ESG isn't just about sustainability but also people – supporting green choices in a way that's feasible for everyone.