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The Ethical Consumer - Canada - February 2020

OVERVIEW
What you need to know
EXECUTIVE SUMMARY 
The insights
The mindset is shifting: some forgo the basics in favour of ethical considerations
Figure 1: Importance of purchasing from ethical companies and willingness to pay more for products from socially responsible companies (% any agree), December 2019
Consumers expect integrity, compassion and transparency
Figure 2: Expectations of corporate responsibility, December 2019
Consumers question commitments to CSR
Figure 3: Brands only have social responsibility policies to make more money (% any agree), December 2019
The opportunities
Companies need not step too far from current actions to hold sway
Figure 4: Frequency of making purchases based on brand reputation for ethical practices, December 2019
Targeting the long game for Gen Z means thinking about the transition
Figure 5: Select attitudes on choosing ethically reputable companies, 18-34 vs overall, December 2019
Where possible, start the focus closer to home
Figure 6: TURF Analysis – Claims that would encourage purchase, December 2019
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Economic pressures will drive greater scrutiny
The issue of inclusion and diversity is personal for Gen Z
Young men and fathers are the least hopeful about the environment
MARKET FACTORS 
Economic considerations may have more of an impact this year
Consumers are feeling the pinch
Figure 7: Perception of financial health, January/February 2016-19
Figure 8: Monthly movement in selected components of the Canadian Consumer Price Index, seasonally adjusted, January 2015-December 2019
For the time being, price takes precedence above all
Figure 9: Factors influencing repeat purchases from a company, April 2019
Inclusivity and diversity will feel more personal to Gen Z
Immigration is literally changing the face of the nation
Figure 10: Distribution of foreign-born population in Canada, by region of birth, 1871 to 2036
The biggest impact is seen on Gen Z
Figure 11: Self-identification of ethnicity, by generation, June 2019
More diversity means a different face of mainstream Canada
Figure 12: I am part of mainstream Canada (% agree), by generation, January 2018
Young men and fathers more likely to feel hopeless about the environment
Figure 13: My individual choices have little impact on the environment (% agree), men 18-34 and fathers with under-18s at home vs overall, December 2019
Figure 14: Nothing can be done to save the environment at this point (% any agree), men 18-34 and fathers with under-18s at home vs overall December 2019
KEY PLAYERS – WHAT YOU NEED TO KNOW 
Waste reduction, a priority for the government and the people
The BPC sector helps sheds light on how products are made
Gen Z is at the helm
Canadians question brand motivation behind CSR policies
The future will be filled with loop-based systems
WHAT’S WORKING?
Eyes on waste reduction for both the government and the people
Consumers have hope and feel brand actions can make a difference
Figure 15: Attitudes toward the potential impact of change, December 2019
The federal government spotlights single-use plastics
Canadian grocers take on the challenge
Figure 16: SOBEYS, January 2020
And don’t forget that in some areas, it already pays to reduce waste
Clean in BPC illuminates how products are made and what’s inside
Figure 17: Ethical and environmental claims that would encourage purchase, women vs men, December 2019
Figure 18: Lush How It's Made: Eggplant Soap, February 2020
Figure 19: Lush Cosmetics North America Instagram post, January 2020
Figure 20: Sephora, June 2018
Gen Z is already there and making a real impact
Inspiring action in real life
Figure 21: TIME Instagram post, December 2019
The data confirms that the mindset is different for Gen Z
Figure 22: Top five most important values Canadians should have, Gen Z vs Millennials vs older generations, June 2019
WHAT’S A CHALLENGE?
Consumers question commitment
Brand efforts toward ethics aren’t seen as genuine by many
Figure 23: Brands only have social responsibility policies to make more money (% any agree), 18-34s vs over-35s, December 2019
Targets set for the near future are on the rise but still feel intangible
Figure 24: Microsoft Instagram post, January 2020
Figure 25: Levi Strauss & Co. Instagram post, August 2019
Figure 26: World Without Waste, January 2018
Keep it real and keep them updated
Figure 27: Frank And Oak Instagram post, January 2020
Figure 28: Frank And Oak Instagram post, January 2020
Walking the walk, consumers seen accountability at all levels
Figure 29: Brands only have social responsibility policies to make more money (% any agree), December 2019
WHAT TO WATCH?
Waste not, want not: giving less-desirable food a new life
Refreshing the image of shelf-stable or frozen foods as a way to tackle food waste
Apps point consumers toward food expiration dates
Figure 30: How to Flashfood LIKE A MOTHER, September 2019
Hydrogen power is now a real thing
Looking ahead, circular closed loop systems will be the norm
THE CONSUMER – WHAT YOU NEED TO KNOW 
Some 70% Canadians consider themselves conscious shoppers
Shoppers’ behaviours are shifting, increasingly favouring ethics
Consumers expect integrity and compassion from corporations
Consumers vote with their wallets and won’t support harm or dishonesty
Canadian pride counts
CONSUMER INTEREST IN BRAND ETHICS
Brand behaviours matter, as 70% claim to be conscious consumers
Figure 31: Importance of moral/ethical behaviours from companies, December 2019
Figure 32: Importance of purchasing from ethical companies and alignment of personal and brand values (% any agree), December 2019
Brands symbolize the identity of Gen Z and Millennials
Figure 33: It is important that a company's values match my own (% any agree), 18-44s vs 45+, December 2019
Gen Z and Millennials need proof
Figure 34: Everlane Instagram post, September 2019
Fathers are also looking for a personal connection
Figure 35: It is important that a company's values match my own (% any agree), fathers vs overall, December 2019
Figure 36: #TakeTheTime | 5 Dads. 5 Weeks. | Dove Men+Care, May 2019
IMPACT OF BRAND ETHICS ON SHOPPING BEHAVIOUR
Shopping behaviours are shifting
The basic factors outweigh brand reputation for ethical practices – for now
Figure 37: Frequency of making purchases based on brand reputation for ethical practices, December 2019
Some are willing to make the trade-off for more ethical choices
Figure 38: Select attitudes on choosing ethically reputable companies, December 2019
Those who often shop based on reputation are the main sway opportunity
Figure 39: Select attitudes on choosing ethically reputable companies (% any agree), often vs sometimes purchase based on brand reputation for ethical behaviour, December 2019
For some sectors, start with labelling, as it is easy and obvious
Figure 40: Kettle Brand Sea Salt Potato Chips (Panama), January 2020
Figure 41: Sephora, June 2018
Taking inspiration from a refresh: spotlight on Adidas Futurecraft.loop Shoe
Figure 42: [FUTURECRAFT.LOOP] – Made to Be Remade, April 2019
Figure 43: [FUTURECRAFT.LOOP] – Long Documentary, April 2019
Figure 44: Adidas Instagram post, November 2019
18-34s are the most inclined to forgo the basics in favour of ideals
Figure 45: Frequency of making purchases based on brand reputation for ethical practices, by age, December 2019
Figure 46: Select attitudes on choosing ethically reputable companies (% any agree), 18-34 vs overall, December 2019
Lifestage is a factor, companies must think about the transition
Figure 47: Chuck Taylor Renew Canvas, July 2019
Figure 48: Converse Instagram post, January 2020
Fathers are on-board, though need proof, as they’re doing homework
Figure 49: Select attitudes on choosing ethically reputable companies (% any agree), fathers with under-18s at home vs overall, December 2019
Figure 50: LEGO Instagram post, October 2019
Chinese Canadians will pay more and are more apt to switch
Figure 51: Select attitudes on choosing ethically reputable companies (% any agree), Chinese Canadians vs overall, December 2019
Encouraging better choices with tech will resonate
EXPECTATIONS OF CORPORATE RESPONSIBILITIES
Consumers expect companies to act with integrity and compassion
Figure 52: Expectations of corporate responsibility, December 2019
A significant gap exists between men and women under 45
Men under 45 likely less inclined to hold expectations
Figure 53: Repertoire analysis of brand/company responsibilities chosen, men 18-44 vs overall, December 2019
More category engagement leads to greater attentiveness for women
Figure 54: Expectations of corporate responsibility, men 18-44 vs women 18-44, December 2019
Collaborative efforts may improve efficiency in connecting with women 18-44
Figure 55: P&G Presents: When We Come Together, an Interactive Super Bowl Party, America’s Choice, February 2020
Figure 56: Birchbox Instagram post, October 2019
Addressing privacy appeals to Boomers
Figure 57: Select expectations of corporate responsibility, consumers aged 55 or older vs overall, December 2019
Assuaging concerns is fast becoming a necessity
DEAL BREAKERS
Remember, a good portion of consumers are considering values
Consumers won’t support harm or put up with dishonesty
Figure 58: Expectations of corporate responsibility, December 2019
Companies that lean into the mess fare better than those that do not
Figure 59: Vogue Italia Instagram post, January 2020
Figure 60: Le sacamos el aire a las Lay's. ¡Miren lo que pasó!, June 2019
Personal alignment matters to Gen Z women
Figure 61: Would stop purchasing from a brand/company if it supports a cause I disagree with, women 18-24 vs overall, December 2019
Inclusivity is a must when connecting with Gen Z women
Figure 62: Lyft Instagram post, June 2019
Fair pay is a priority for LGBTQ+
Figure 63: Would stop purchasing from a brand/company if it does not pay its employees a living wage, LGBTQ+ vs overall, December 2019
INTEREST IN CLAIMS
Oh Canada! Consumers are motivated by our home and natural land
Figure 64: Claims that would encourage purchase, December 2019
Figure 65: TURF analysis – claims that would encourage purchase, December 2019
Focus on Made in Canada to sway Boomers
Figure 66: Local and Canadian-related claims that would encourage purchase, over 55s vs overall, December 2019
Tapping into local pride matters to Quebecers
Figure 67: Motivated to buy products with “locally made” claim, Quebec vs overall, December 2019
Figure 68: It is important that a company's values match my own (% any agree), Quebec vs overall, December 2019
Figure 69: Caffé Bene Instagram post, December 2019
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Consumer qualitative research
Abbreviations
Terms
APPENDIX – TURF ANALYSIS
Methodology

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