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It Pays to be Green: 9 in 10 Filipinos willing to pay for sustainable brands

MANILA – Committing to sustainability might just pay off for consumer brands in the Philippines and may give them an edge over the competition especially in the Philippines, according to the latest 2015 Nielsen Global Corporate Sustainability Report.

Close to nine in 10 (86%) of Filipino consumers in the survey said they are willing to pay extra for products and services from companies who stand for positive social and environmental impact.

This is a four point increase from last year. In comparison, the global average for those willing to pay more for sustainable brands is 66%, which is up 55% from 2014.

And good deeds don’t go unnoticed, Nielsen continued. Sales of consumer goods from sustainable brands have grown more than 4% globally in the past year while those without grew less than 1%.

“More exposed to the stress in the environment and its effect to the community, consumers are trying to be responsible citizens and they expect the same from corporations,” says Stuart Jamieson, managing director of Nielsen in the Philippines.

“When it comes to purchasing, they are doing their homework. They are checking labels before buying, they are looking at web sites for information on business and manufacturing practices, and they are paying closer attention to public opinion on specific brands in the news or on social media,” he explains.

Most Filipino consumers in the study found TV ads to be fairly influential, with 43% saying that TV ads highlighting a company’s commitment to positive social and/or environmental impact shape in their purchase decision.

What influences them the most, however, is health and wellness benefits with 7 in 10 (74%) admitting to being swayed to purchase. Completing the top three sustainability purchasing drivers for Filipinos are brand trust (77%) and fresh, natural and/or organic ingredients (74).


A company’s commitment to the environment has the power to sway product purchase of around two-thirds of consumers surveyed in the Philippines (64%). Commitment to either social value or the consumer’s community are also important (each influencing 62% and 60% of respondents, respectively). At the same time, 60% of consumers claim that environmentally friendly packaging also heavily influences their purchase decision.


Retail data backs up the importance of these influencers. In 2014, 65% of total sales of consumer goods measured globally were generated by brands whose marketing conveyed the commitment to social and/or environmental value.


“Commitment to social and environmental responsibility is surpassing some of the more traditional influences for many consumers,” says Jamieson. “Consumer-goods brands that fail to consider this run the risk of falling behind.”


But while marketing good deeds is encouraged and expected by consumers, he stressed that authenticity and credibility are essential.  “The emphasis must be placed on demonstrating good deeds rather than self-serving promotion. ”


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