DentsuConsumerNavigator:Sustainability2023Part2ofaNorthAmericanseriesUSvs.CanadaResponsesAugust2023NavigatorAboutthisstudyThisreportdigsintokeydifferencesandcommonalitiesamongUS-vs-CanadaviewsonSustainability.Itisacompanionpiecetoabroaderdentsureportthatexploredall-upNorthAmericanviewsonSustainability.•ThesurveywasconductedbydentsuviaToluna,anonlineresearchpanel.•AdministeredonMay30th,2023.•Distributedamongarandomsampleof1,000respondentsintheUSand600respondentsinCanada.•Distributedamongrespondents18yearsofageorolderandcontrolsfornationallyrepresentativepopulationsinboththeUSandCanada.dentsuConsumerNavigator–Sustainability2023Contents01ENxoercthutAivmeeSruicmanmRaerypoorftthe02KeyFindings:USvs.Canada03ASuttsittauidneasbTiloitwyard04PerceptionsofBrands05ImplicationsforMarketersdentsuConsumerNavigator-Sustainability2023NavigatorExecutiveSummaryoftheNorthAmericanReportYoungerNorthAmericansarebroadeningtheirdefinitionofThebottomline:NorthAmericanconsumerswantbrandstomakesustainability.sustainabilityaneasychoice.Adistinctpatternemergesinourdata:Boomersprimarily79%ofrespondentsagree:Businessesshoulddoabetterjobofemphasizeenvironmentalaspectsintheirdefinitionofmakingiteasyformetochoosesustainableproducts.sustainability,whereasyoungergenerationsadoptamorecomprehensiveperspectiveencompassingequityandeconomy.NorthAmericanconsumersexpectsustainablebrandstotakeactionbeyondtheir“carbonfootprint.”YoungerNorthAmericansaremorelikelytofeeltheirpersonallifeisaffectedbyenvironmentalchange.Tobeviewedasasustainablebrand,consumersexpectcompaniestotakeaholisticapproach:affordability,responsiblesourcing,Boomersarenotablylesslikelythanyoungergenerationstooperationsandproduction,andsupportingnaturalecosystems.acknowledgethatthestateoftheenvironmentaffectsfactorsintheirpersonallives,suchasphysicalandmentalhealth.NorthAmericanconsumersaretuningintobrands’communicationsbutwishforgreatertransparency.NorthAmericansseesustainabilityasequallyapublic,personal,andcorporateresponsibility.61%ofrespondentsreportthattheirpurchasesareinfluencedbybrands’communicationsaboutsustainability.However,71%alsoRespondentsviewindividuals(51%)asequallyresponsibleforagree:businessesarenotsufficientlytransparentabouthowtheirtheireverydayactionsasnationalgovernments(51%)andglobalpracticesaffectclimateandtheenvironment.businesses(47%)arefortheirpoliciesandpractices.dentsuConsumerNavigator–Sustainability2023NavigatorKeyFindings:USvs.CanadaAttitudesTowardSustainabilityPerceptionsofBrandsCommonality•Bothcountriesagreethatthestateofthe•BothcountriesexpectbrandstobuildDifferenceenvironmenthasfar-reachingeffects.sustainabilityandtransparencyintotheirbusinesspractices.•Canadiansprimarilyholdanenvironmental•Canadianshavehigherexpectationsforviewofsustainability,whileAmericansholdbusinessestobehavesustainablyandareabroader,moreholisticdefinition.lesssatisfiedwithhowbrandsarelivinguptothoseexpectationsthanAmericans.•Americansmorereadilyincorporatesustainabilityintodailydecisionmaking•AmericansaremorelikelythanCanadiansandpossessagreatersenseofhopethantobeinfluencedbycommunicationsaboutCanadians.sustainabilityfrombrandsandhaveasetofgo-tosustainableproductsandservices.dentsuConsumerNavigator-Sustainability2023Commonalities&Differences:AttitudesTowardSustainabilityNavigatorCOMMONALITYTheUSandCanadaagreeontheenvironment’sfar-reachingeffects.BothCanadiansandAmericansbelievethatthestateoftheenvironmentiscontributingtolargescaleissuessuchasfoodandwatersecurity,immigration/refugees,andeconomicstability.dentsuConsumerNavigator-Sustainability2023NorthAmericansagreethatthestateoftheenvironmentishavinglarge-scaleeffects.WhileAmericanrespondentsareslightlymorelikelytoagreethatthestateoftheenvironmentisimpactingbroadissuesbothCanadiansandAmericansseeenvironmentattheintersectionofglobalissues.%Agree/StronglyAgree:“TheStateoftheEnvironmentandClimateisAffecting…”CanadaUSFoodandwatersecurity79%Theglobaleconomy83%Humanphysicalandmentalhealth77%Economicsecurity80%Migrationandtherefugeecrisis76%79%72%76%65%67%ShoppingHabitsThroughExclusivity&Convenience:CdeonntssuumCeornSseunmtiemreNnatvSigtautdoyr-Sustainability20238NavigatorDIFFERENCEDefinitions&experiencesofsustainabilityarenuancedbycountry.OursurveyfindsthatCanadiansholdamoreenvironmentally-focuseddefinitionofsustainability.Comparatively,Americansholdaslightlybroaderdefinitionofsustainabilitythatencompassesenvironment,equity,andeconomy.Beyondtheenvironment’sfar-reachingeffects,theconcernsthatrunclosertohomearemoreimmediatelyexperiencedbyAmericansthanCanadians.dentsuConsumerNavigator-Sustainability2023AmericansholdaslightlymoreholisticdefinitionofsustainabilitythanCanadians.Canadiansaremorelikelytoassociatesustainabilitywithtypicalenvironmentalissues,whereasAmericansaremorelikelytoassociatesustainabilitywithawiderrangeofissues,includingcommunity,economicsecurity,andwell-being.ActivitiesIncludedinConsumers’DefinitionofSustainabilityCanadaUSReducingconsumption&waste66%-4pts62%Usingrenewableenergy65%-3pts62%Lookingaftertheworld42%41%Beingconnectedtonature38%43%Lookingafteryourcountry33%34%Lookingafteryourcommunity31%37%+6ptsAddressingeconomicsecurity26%31%+5ptsAddressinghunger26%28%Addressingmentalhealth26%28%Addressingpoverty26%27%Addressingphysicalhealth24%28%+4ptsAddressingaccesstoeducation20%+3pts23%Addressingequity&civilrights18%+4pts22%Noneoftheabove77%%ShoppingHabitsThroughExclusivity&Convenience:10CdeonntssuumCeornSseunmtiemreNnatvSigtautdoyr-Sustainability2023Americansseeenvironmentalissuesshowingupinmoreimmediateandintimateways.AmericansaremorelikelythanCanadianstoclaimthatthestateoftheenvironmentisaffectingtheirhealth,wealthandwell-being.%Agree/StronglyAgree:“TheStateoftheEnvironmentandClimateisAffecting…”CanadaUSMylocalcommunity59%Myqualityoflife70%+11ptsMyphysicalhealthMymentalhealth60%Myjob/financialsecurity68%+8pts52%63%+11pts46%59%+13pts40%54%+14ptsShoppingHabitsThroughExclusivity&Convenience:CdeonntssuumCeornSseunmtiemreNnatvSigtautdoyr-Sustainability202311NavigatorDIFFERENCECitizens’dailyapproachestosustainabilityandsenseofagencydifferbypopulation.Adistinctpatternemergeswhenexaminingintegrationofsustainabilityintodailyhabitsandlevelsofhopefulnessforthefuturebycountry.OursurveyrevealsthatAmericansexhibitahighertendencytoprioritizesustainabilityintheirdailydecision-makingprocesses,accompaniedbyagreatersenseofoptimismtowardsthefutureofsustainability.Conversely,Canadiansdisplayalowerinclinationtoconsidersustainabilityintheireverydaychoicesandaremorepronetoexpressingconcernaboutthefuture.dentsuConsumerNavigator-Sustainability2023AmericansreportmoreoftenthinkingandactingsustainablythanCanadians.Whilemostrespondentsthinkaboutsustainabilitymoreoftenthanthreeyearsago,Americansaremorelikelytoclaimthatthefrequencyhasincreased.Agreatersharealsoranktheirdailylifechoicesashighlysustainable.ThiscorrespondstoAmericansplacingagreateremphasisoneverydaypeopletoadvancesustainabilitythemselves.RespondentswhosayhowoftentheyRespondentswhoanswered7/10orhigherwhenthinkaboutsustainabilityhasaskedtoratehowsustainabletheirlifechoicesincreasedinthepast3years.areonanaverageday.Onascaleof1to10,with1beinglowand10beinghigh.67%71%+11pts60%43%+22pts52%30%NorthAmericaCanadaUSNorthAmericaCanadaUSShoppingHabitsThroughExclusivity&Convenience:13CdeonntssuumCeornSseunmtiemreNnatvSigtautdoyr-Sustainability2023Thetrendbecomescrystalclearwhenlookingatspecificdailyactions.77%Acrosstheboard,AmericansaremorelikelythanCanadianstosaysustainabilityisakeyinfluenceonarangeofdaily14actions–fromwhotheyvotefortowhattheyeattohowtheytravel.%WhoSaySustainabilityFactorsIntotheFollowingChoicestoa“Large”or“ModerateExtent”CanadaUSTheelectedofficialsIvotefor34%56%+22ptsThefoodsIeat31%53%+22ptsThewaysinwhichItravel27%45%+18ptsThecausesIsupport/volunteerfor26%49%+23pts25%ThecarIdrive24%47%+22ptsTherecreationalactivitiesIenjoy23%44%+20ptsTheplacesIgo(i.e.restaurants,shops)23%22%46%+23ptsTheplacesItravel22%44%+21ptsTheclothesIwearThebeveragesIdrink18%45%+23pts17%45%+23ptsThejobIdo14%43%+25ptsThepeopleIhangoutwith14%41%+24ptsWhatIstudy/havestudiedinschoolorcollege12%42%+28pts40%+26ptsTheinfluencersIfollow38%+26ptsTheshowsorpodcastsIwatchorlistentoShoppingHabitsThroughExclusivity&Convenience:CdeonntssuumCeornSseunmtiemreNnatvSigtautdoyr-Sustainability2023AmericansaredecidedlymorehopefulaboutthefutureofsustainabilitythanCanadians.Thereisadistinctsplitbetweentheneighboringcountries’viewsofthefutureofsustainability,withAmericansmorelikelytoclaimtheyarehopefulvs.Canadians,whoexpressmoreworry.HowConsumersFeelAbouttheFutureWhenItComestoSustainabilityHopefulWorriedDon'tthinkaboutit15%18%14%42%35%54%43%+23pts51%28%NorthAmericaCanadaUSShoppingHabitsThroughExclusivity&Convenience:CdeonntssuumCeornSseunmtiemreNnatvSigtautdoyr-Sustainability202315Commonalities&Differences:PerceptionsofBrandsNavigatorCOMMONALITYBothcountriesfeelbusinessesshouldadoptsustainablepractices.BothAmericansandCanadianshavesimilaropinionsabouttheresponsibilitybusinessholdsregardingsustainability.Acrosstheboard,respondentsagreethatcompaniesshouldembracebestpracticesintheirapproachestosustainability.dentsuConsumerNavigator-Sustainability2023NorthAmericansagreebusinessesshouldactwithsustainabilityinmind.BothCanadianandAmericanrespondentsagreethatbusinessesshouldembracetransparencyandmakesustainablechoicesaccessibleandaffordable.%Agree/StronglyAgreewithStatementCanadaUSBusinessesshouldmakeinformationabouttheir77%sustainablepracticesmoreeasilyaccessible.81%Businessesshoulddoabetterjobofmakingiteasy77%formetochoosesustainableproducts.81%Businessesmakealotoffuturecommitmentsto70%supportthepreservationoftheenvironment,but73%don’ttakeenoughactioninthepresent.73%Businessesarenotsufficientlytransparentabout71%theiroperationsandhowtheirpracticesaffectclimateandtheenvironment.ShoppingHabitsThroughExclusivity&Convenience:CdeonntssuumCeornSseunmtiemreNnatvSigtautdoyr-Sustainability202318NavigatorDIFFERENCEPerceptionsofbrandresponsibilityandprogressaroundsustainabilitydifferbypopulation.Canadiansseenationalgovernmentasprimarilyresponsibleforadvancingsustainableagendas.However,Canadiansarehungrytoseemorecorporateaction.Respondentsexpressahigherbarforhowbrandsshouldbehaveandarelesssatisfiedwithbrandperformance.Comparatively,Americansdistributeresponsibilitymoreevenlyacrossnationalgovernment,everydaypeople,andglobalbusiness.Respondentsalsoreportseeingmoreevidenceofprogressamongbrands.dentsuConsumerNavigator-Sustainability2023Canadiansprimarilyplaceresponsibilitytoadvancesustainabilityonnationalgovernments,whileAmericansmoreevenlydistributeresponsibilityacrossgov’t,people,andbusiness.AmongCanadianrespondents,nationalgovernmentshasa9-pointleadoverthenextrankedentity.AmongAmericanstheraceiscloser,witha6-pointspreadbetweenthetop3entities:nationalgov’t,people,andbusiness.EntitiesMostResponsibletoAdvanceSustainabilityCanadaUSNationalgovernments46%59%+13ptsEverydaypeople50%51%Globalbusinesses45%48%Localgovernments37%33%Internationalcoalitions28%36%Localbusinesses20%22%Non-profitorganizations9%13%Philanthropists/donors5%11%ShoppingHabitsThroughExclusivity&Convenience:CdeonntssuumCeornSseunmtiemreNnatvSigtautdoyr-Sustainability202320However,CanadiansexpresshigherexpectationsofbusinessescomparedtoAmericans.77%Acrossthedata,moreCanadiansexpectbusinessestotakearangeofsustainableactions.Americansaremostlikelytoexpectbrandstosourceresponsibly,followedbyrethinkingoperationstoreducewasteandsupporthealthyecosystems.TheyareonparwithCanadiansinexpectingbrandstopromoteequityintheworkplaceandeducateconsumersonissues.Consumers’ExpectationsforHowSustainableBusinessesShouldBehaveCanadaUSMakesustainableoptionsmoreaffordable50%63%+13pts49%61%+12ptsReducetheircarbonemissionsSourceproductsinwaysthatsupporttheenvironment55%60%+5ptsRethinktheiroperationsandproductiontoreducewaste,toxicity,etc.52%60%+8ptsSupportthehealthofecosystems51%57%+6ptsUpdatetheirproductlinestooffersustainablechoicestoconsumers41%51%+10ptsRewardcustomerswhotakeactiontopreservetheenvironment49%+5pts44%Sourceproductsinwaysthatdonotcauseharmtoworkers48%+3ptsOffersustainableshippingoptions45%46%+3pts43%Encourageandsupportthesecond-hand/resalemarket37%43%+6ptsDonatetocharitablecausesthatsupportthetheenvironment34%40%+6ptsPromoteequityintheworkplace38%-1pts39%Produceeducationalcontentthatraisesawareness35%-3pts38%Noneoftheabove6%6%ShoppingHabitsThroughExclusivity&Convenience:CdeonntssuumCeornSseunmtiemreNnatvSigtautdoyr-Sustainability202321Canadiansarelesssatisfiedwithbrands’performanceagainsttheirexpectations.77%Americansaremorelikelytohavetheirexpectationsmetwhenitcomestosustainablebrandactivity,whileCanadiansarelesslikelytoratecompaniesfavorably.Howwellbrandsarelivinguptoexpectations,Top2BoxCanadaUSMakesustainableoptionsmoreaffordable51%67%+16ptsReducetheircarbonemissions48%65%+17ptsSourceproductsinwaysthatsupporttheenvironmentRethinktheiroperationsandproductiontoreducewaste,toxicity,etc.47%66%+19ptsSupportthehealthofecosystems47%59%+12ptsUpdatetheirproductlinestooffersustainablechoicestoconsumers45%68%+23ptsRewardcustomerswhotakeactiontopreservetheenvironmentSourceproductsinwaysthatdonotcauseharmtoworkers45%66%+21ptsOffersustainableshippingoptionsEncourageandsupportthesecond-hand/resalemarket45%63%+18ptsDonatetocharitablecausesthatsupportthetheenvironment44%59%+15ptsPromoteequityintheworkplace39%63%+24ptsProduceeducationalcontentthatraisesawarenessNoneoftheabove39%61%+22pts39%60%+21pts39%60%+21pts37%55%+18ptsShoppingHabitsThroughExclusivity&Convenience:CdeonntssuumCeornSseunmtiemreNnatvSigtautdoyr-Sustainability202322NavigatorDIFFERENCESustainabilityshapeseachcountry'spurchasejourneysuniquely.OursurveyrevealsanotabledisparitybetweentheUSandCanadawhenitcomestoholdingbrandsaccountablefortheirpromisesandmessages.IntheUS,thereexistsastrongercultureofactivelymonitoringbrands'sustainabilitymessagingandbusinesspractices,subsequentlyinfluencingpurchasedecisions.Moreover,AmericansaremorelikelythanCanadianstosaytheyhaveasetofpreferredsustainablebrandstheyrelyon.Thistrendcanbeattributed,inpart,totheprevalentconsumeristcultureintheUS.dentsuConsumerNavigator-Sustainability2023AmericansaremorelikelythanCanadianstoagreethattheyofteninvestigate77%brands’long-termcommitmentstosustainabilityandsourcingpractices.Agree:WhenIhearaboutabusinessAgree:Ioftencheckhowaproductmakingacommitmenttosupportthewasmadeandsourcedaspartenvironment,Ioftencheckinlatertoseeofmypurchasedecision.whetherthatcommitmentwasfulfilled.55%61%53%60%45%+16pts42%+18ptsNorthAmericaCanadaUSNorthAmericaCanadaUSShoppingHabitsThroughExclusivity&Convenience:24CdeonntssuumCeornSseunmtiemreNnatvSigtautdoyr-Sustainability2023AmericansaremorelikelythanCanadianstosaythatbrandedcommunicationsaboutsustainabilityhave“alot”ofinfluenceontheirpurchasingdecisions.Whilerespondentsoverallareclearlyinfluencedbybrandcommunications,Canadianstendtoclaimthatmarketinginfluencesthem“some”or“alittle,”whereasAmericansaremorelikelytobeinfluenced“alot.”HowMuchBrandCommunicationsAboutSustainabilityInfluencePurchaseAlotSomeAlittleNotatall16%18%15%23%28%20%28%31%37%29%+19pts36%NorthAmericaUS17%CanadaShoppingHabitsThroughExclusivity&Convenience:CdeonntssuumCeornSseunmtiemreNnatvSigtautdoyr-Sustainability202325Americansaremorelikelytofeeltheyhavesustainableoptionsinmostcategories.77%WhileCanadiansaremorelikelythanAmericanstosaytheyhavesustainableoptionsavailabletothematareasonable26priceintheenergysector,Americansaremorelikelytofeeltheyhavesustainableoptionsinallothercategories.%WhoSaySustainableOptionsAre“AvailableAtAReasonablePrice”inEachCategoryCanadaUSEnergyandutilities42%48%-6ptsHouseholdessentials55%+20pts35%Clothing/apparel34%53%+19ptsHealthandwellnessproducts32%31%51%+19ptsGroceries31%55%+24ptsDining31%29%51%+20ptsBeauty/personalcareEntertainment50%+19ptsElectronicsAuto45%+16ptsTravelRealestate24%42%+18ptsLuxury18%37%+19ptsShoppingHabitsThroughExclusivity&Convenience:18%CdeonntssuumCeornSseunmtiemreNnatvSigtautdoyr-Sustainability202317%36%+18pts13%32%+15pts33%+20ptsAmericansaremorelikelythanCanadianstosaytheyhave“go-to”sustainablebrands.77%Thereisa22-percentagepointdifferencebetweenrespondentsinthetwocountries.CanadiansWhoHave“Go-To”BrandsTheyAmericansWhoHave“Go-To”BrandsTheyTrustWhenItComestoSustainabilityTrustWhenItComestoSustainability37%41%37%59%59%63%27ShoppingHabitsThroughExclusivity&Convenience:CdeonntssuumCeornSseunmtiemreNnatvSigtautdoyr-Sustainability2023NavigatorImplicationsforMarketers1.Leveragedistinctionsinattitudesandbehaviorstomake2.Meetconsumerswheretheyareintheirexpectationsofsustainabilitymessagingmoresalient.brands;thenexceedthoseexpectations.TailormessagingandmarketingHarnessthelinkbetweenagencyPrioritizetransparentandconsistentSeizetheopportunitytomeetrisingstrategiestolocalperspectives:andhope.ByemphasizingthemessagingandpracticestomeetUSCanadianexpectations.DespitebeingMarketersshouldadapttheirpositiveimpactthatindividualexpectations.Withthestrongerculturelessinfluencedbybrandedmessagingandmarketingstrategiesactionscanhaveonsustainability,ofholdingbrandsaccountableinthecommunicationsandhavingfewertoresonatewiththespecificmarketerscaninspireconsumersUS,consumersareactivelymonitoringestablishedsustainablebrands,prioritiesofeachmarket.Forandinstilloptimism.SharingsustainabilityclaimsandmakingCanadiansexpressastrongdesireforCanadians,emphasizingthepurchasingdecisionsaccordingly.Toincreasedcorporateactiononenvironmentalaspectsofsuccessstories,featuringrelatableresonatewithAmericanconsumers,sustainability.Thispresentsachancesustainabilityandshowcasinghowrolemodels,andprovidingpracticalbrandsneedtodemonstratetheirformarketerstoproactivelyproductsorservicesalignwithtipsandguidancecanallhelpcommitmenttosustainabilitythroughcommunicateanddemonstrateagovernment-drivenagendascanbeengageconsumersinadoptingclearandcrediblemessaging,backedbroadrangeofsustainablepracticeseffective.IntheUS,marketerssustainablebehaviors.Additionally,shouldconsiderabroaderapproachbytangibleactions.Bybuildingtrustandcommitments.ByaligningwiththethathighlightsnotonlymarketersshouldfocusonbuildingandcultivatingareputationforvaluesandexpectationsofCanadianenvironmentalsustainabilitybutasenseofcollectiveresponsibilitysustainability,marketerscancaptureconsumers,marketerscanbuildtrust,alsofactorssuchasequityandandsharedpurposetoencouragetheattentionandloyaltyoftheUSenhancebrandreputation,andeconomicimpact.individualstoseetheiraudience.establishastrongfootholdinthecontributionsasmeaningfulandCanadianmarket.impactful.dentsuConsumerNavigator-Sustainability2023AboutdentsuDentsuisthenetworkdesignedforwhat’snext,helpingclientspredictandplanfordisruptiveDentsuGoodfutureopportunitiesandcreatenewpathstogrowthinthesustainableeconomy.Takingapeople-centeredapproachtobusinesstransformation,weuseinsightstoconnectbrand,content,commerceandexperience,underpinnedbymoderncreativity.AspartofDentsuGroupInc.(Tokyo:4324;ISIN:JP3551520004),weareheadquarteredininTokyo,Japanandour65,000-strongemployee-baseofdedicatedprofessionalsworkacrossfourregions(Japan,Americas,EMEAandAPAC).DentsucombinesJapaneseinnovationwithadiverse,globalperspectivetodriveclientgrowthandtoshapesociety.Visit:group.dentsu.com;dentsu.com.Aspartofitscommitmenttoservingclientsinthebusiness-to-business-to-society(B2B2S)capacity,DentsuispleasedtoofferDentsuGood,asustainabilityaccelerator.Withateamofsubjectmatterexpertsandasuiteofconsultativeservices,DentsuGoodhelpsclientsscalesustainablesolutionsanddrivepurpose-drivenimpactinthesustainableeconomy.Visit:https://www.dentsu.com/us/en/solutions/good