2022UKBrandSustainabilityBenchmarkReportNovember2022Food&GroceryIndustryUSINGDATAPROVIDEDBYI’mTim,thefounderofon-demandconsumerresearchplatformGlow.WearedelightedtobringyouthisinauguralESGbenchmarkingreportfortheUKFood&Groceryindustry.Investors,employees,customersandconsumerswanttoseemoreprogressintermsofsustainabilityinitiativesthatsupportpeople,theenvironmentandtheplanet.Brandsareincreasinglysharingtheircredentials,communicatingtheirmilestonesandpublishingperformanceagainsttheirESGandsustainabilitygoals.Andconsumersnowhaveaccesstomoresustainabilityinformationthaneverbeforefromavarietyofcontrolledanduncontrolledsources.Asaresultagrowingcohortofconsumersaremakingtheirownimpactbysheddingthebrandsthatdon’tmeettheirsustainabilityexpectations,andmovingtobrandsthathelpthemfeeltheyaremaking‘micro-differences’everyday.TimCloverGlowFounder&CEOThisreportaddressesthatchallengebyprovidingclearinsightintowhatF&Gconsumersexpectfrombrandsinthisarea,providessomerobustbenchmarkstoallowbrandstoassesstherisksandopportunitiesrelevanttothemandprovidespracticaldirectiononhowtooptimisecurrentESGprograms.ThereportleveragesGlow’suniqueSocialResponsibilityScore(SRS),adataproductthatismeasuringover500brandsintheUK,USandAustralia.Wehopeitwillhelpinformyourapproachtosustainabilitysothatyoucancreategreaterimpact.Thanksforreading,Welcome.SummaryExpectationsBrandsDriversCommunicationsResourcesTableofcontents.01.Executivesummary02.Consumerexpectationsarehigh03.Theleadingbrands04.WhatdrivesESGperception05.CommunicatingESGeffectively06.FurtherreadingSummaryExpectationsBrandsDriversCommunicationsResourcesStrictlyprivate&confidential.CopyrightGlow2022.HowtoreadthisreportSRSmethodologyandtiming.ThedatainthisreportcomesfromGlow’sproprietarySocialResponsibilityScore(SRS)diagnostic&brandtracker.SRSDataisfromApril-August2022,fromover16,000respondentsandtheirviewson102foodandgrocerybrands.SRSdataisfromanationallyrepresentativesampleofUKconsumersbasedonage,genderandgeography.Onaveragethemarginoferroris<3%,thoughforasmallnumberofbrandsmeasured(thosewithlowoverallbrandawarenessorthoserecentlyaddedtothesurvey)themargincanbeupto10%.TofindoutmoreabouthowSRSworkswatchtheexplainervideoatsocialresponsibilityscore.comSocialResponsibilityScore(SRS)Usesabipolarscaletomeasuresocialandenvironmentalresponsibility.Calculatedscoresarereportedasasinglenumber(range-100to+100)providingametricforeasycomparisonacrossbrands&time.SRSisunderpinnedby13driversacrossEnvironmental,SocialandGovernancedimensionsthatexplaintheoverallscoreandprovidebrandsdirectionforaction.SummaryExpectationsBrandsDriversCommunicationsResourcesThisresearchwaspoweredbyGlow.MarketAnalysisSegmentationConcepttestingConsumerprofilingBrandtrackingMarketingROItestingProducttune-upClientpitchesCommstestingStrategyGotomarketOptimisationSyndicateddataproducts.Glowprovidesconsistent,highqualitybenchmarkandperformancedatatosubscribers.Privatestudies.Glowhelpsbusinessesgrowbyprovidingactionableconsumerinsightsacrosstheproductlifecycle,fast.ESG/SustainabilityPerformanceSubscriptionESGbrandperformancediagnosticandtrackerthatidentifiesriskandsurfacesopportunity.Researchplatform.Glow’sstateoftheartresearchsoftwareacceleratesspeedtoinsight.glowfeed.comStrictlyprivate&confidential.CopyrightGlow2022.ESGactionisanecessity!Notanice-to-have.●9outof10consumersexpectbrandstobehaveresponsibly.●ImportancewillincreaseasGenZandMillennialsfeelmostpassionateaboutESG.●1in4consumerssaytheyswitchedbrandsrecentlybasedonsustainabilityperceptions.Sustainabilityleadersgrowfasterthanthoseperceivedaslaggards.●BrandswithahigherESGperformanceseebetterrevenuegrowth:a2pointsincreaseintheSocialResponsibilityScore(SRS)equatestoanextra1%pointinrevenuegrowth.●Consumersareswitchingtobrandswiththestrongestsustainabilitycredentialsattwicetherateoftheaveragebrand.●Perceptionsdiffersignificantlyacrossdemographicgroups,andbrand-levelunderstandingisrequiredtoidentifysuchdifferences.●Theyoungestandoldestconsumers(GenZandBoomers)arethemostsceptical,ratingbrandsonaverage16%lowerthanothergenerations.SummaryExpectationsBrandsDriversCommunicationsResourcesExecutiveSummary.Cleaningproductsandplant-basedmeatareleadingthepack.●Thetop3mostsociallyandenvironmentallyfriendlybrands,accordingtoUKconsumers,arecleaningbrandsEcoverandMethod,followedbyplant-basedmeatbrandBeyondMeat.●Thebestbrandshavestrongpositiveperceptionsacrossbothbuyersandnon-buyers,ensuringthereisn’tasustainabilitybarriertopurchase.●Theleadingbrandsareperceivedtobetwiceassustainability-focusedaslaggards.●Thetop20brandsshowcaseamixofcommitments,notonlytoenvironmentalissuesbutalsotosocialandgovernanceprograms.Whereyoucommunicatematters.●ESGmessagesprimarilyreachconsumersthroughnewsandmediacoverage.●Consumerswanttohearmoreatthepointofpurchase,particularlyviaproductpackaging.●PreferredESGinformationsourcesarehighlyimpactedbyage:oSocialMediaiskeyforGenZand,toalesserextent,Millennials.oOlderconsumers(Boomers)prefertraditionalnewschannels.4in10consumersarenotsatisfiedwiththeindustry’sperformance.●F&Gisranked#3of20industriesassessedforitscommitmenttosocialandenvironmentalresponsibility.●Despitethisstrongperformance,manyconsumersarenotsatisfiedwiththeindustry’sperformanceacrosskeyESGdrivers.○Nodrivermeetstheexpectationsofmorethan6in10consumers.○Lessthanhalfofconsumersaresatisfiedin3ofthe5mostimportantareas.○Theindustry’sbiggestopportunitytoimproveperceptionisbyaddressingkeyenvironmentalconcerns,including‘Reducingemissions&climatechange’and‘Respecting&protectingnaturalresources’,anddemonstratingstrongcorporategovernanceby‘Takingcareofsupplierwelfare’.Consumerexpectationsarehigh.02.ExpectationsStrictlyprivate&confidential.CopyrightGlow2022.Q:Howimportantisitthatbusinessesactresponsiblywhenitcomestosocietyandtheenvironment?[NETImportant]Consumersexpectbrandstobehaveresponsibly.TotalGenerationGenderIncomeAllAdultsGenZMillennialsGenXBoomersMaleFemaleUnder$75kOver$75k90%89%85%86%89%87%86%87%91%ofUKadultssurveyedbelievethatitisimportantforbusinessestoactresponsiblywhenitcomestosocietyandtheenvironment.Morethan1in3believeitisveryimportantforbusinessestodoso.87%Thishighexpectationisbroadlyconsistentacrossalldemographicgroups,thoughyoungergenerations,bothGenZandMillennials,showstrongerintensityoffeeling;ahigherpercentageofthesegroupsagreedthatitisveryimportantforbusinessestoactresponsibly.SummaryExpectationsBrandsDriversCommunicationsResourcesStrictlyprivate&confidential.CopyrightGlow2022.Source:1,3Glowvariousstudies2021,2PwCConsumerInsightsPulse,4McKinseyQuarterly,5BainHowSustainableBrandsAddValueSustainabilityisn’tjustagrowinginternalimperative.Consumersexpectmore.Consumersareincreasinglywillingtospendtoaligntheirpurchaseswiththeirvalues.Arangeofstudies,includingmultiplebyGlow,showcasethatattitudesandbehaviourarechangingforthebetterandprogressivebrandsarebenefitting.SummaryExpectationsBrandsDriversCommunicationsResourcesStrictlyprivate&confidential.CopyrightGlow2022.Source:Glow/NielsenIQUSHomescanSalesDataAnalysisNov2021ESGperceptionscorrelatewithbrandrevenuegrowth.GlowhasperformedanalysiscomparingSocialResponsibilityScorewithover$1TrninUSsalesdata(suppliedbyNielsenIQ)covering197brandsoverthreeyears.Whilstthedatawas‘noisy’,theanalysishighlightedthat:●AstatisticallysignificantrelationshipbetweenSRSandrevenuegrowthexists●A2pointincreaseinSRSovertheperiodequatedto1%pointhigherannualrevenuegrowthTheadditionofthisdatatothemanyotherstudiesfocussedonconsumerattitudesandbehaviourreinforcesthenotionthatESGperceptionsareincreasinglyimportanttomeasuregiventheirimpactonoverallbrandhealthandgrowth.2ptHigherSRSperformance1%HigherannualrevenuegrowthThisstudyfoundthatforevery2pointincreaseinSRSperformancebrandsgrewrevenuebyanextra1%peryearvstheaverage.=SummaryExpectationsBrandsDriversCommunicationsResourcesStrictlyprivate&confidential.CopyrightGlow2022.Sustainabilityinfluencesbehaviour;leadingbrandsaregainingtwiceasmanyconsumers.1in4consumerssaytheyhaveswitchedfoodandgrocerybrandsinthelast12monthsbasedonperceptionsofabrand’sESGcredentials.Furtheranalysisatabrandlevel,basedonthespecificbrandsthatconsumersclaimtheyhaveswitchedawayfromorinto,identifiednettESGdrivenswitching%sforeachbrand.Theresultsareclear-thebrandsperceivedtohavethebestcredentialsarebenefitingmostwiththetopbrandsreceivingtwiceasmuchshiftasaverageperformingbrands.Isyourbrandgainingorlosingcustomers?Q:Food&Grocerybrandswitchingbehaviourinthelast12monthsbasedonsocial&environmentalbehaviour.%switchingcustomers-nettofstarted/stoppedusingaspecificbrandbasedonESGcredentials/thoseawareofthebrandConsumerssaytheyhavestartedusingF&Gbrandsbasedonthebrand’sESGbehaviour.1in4Consumerssaytheyareswitchingintothetop10F&Gbrandsattwicetherateoftheaverage.X2%NettSwitchingConsumersSocialResponsibilityScore(SRS)SummaryExpectationsBrandsDriversCommunicationsResourcesLeadingFood&Grocerybrands.07.BrandsStrictlyprivate&confidential.CopyrightGlow2022.Q:Top&bottom5industriesbysocialresponsibilityscore,comparedtotheaveragescoreforallindustries.TheFood&Groceryindustryisoneoftheleadersinsocialandenvironmentalresponsibility.Thefoodandgroceryindustryisdeemedbyconsumerstobeoneoftheindustriesleadingthewaytoamoresustainablefuture.Itranksthirdof20industriesmeasuredinthisresearch,behindpharmaciesandsupermarkets&conveniencestores.ConsistentwithpreviousGlowresearchinboththeUKandothermarkets,SocialMediaPlatformsareviewedasthemostsociallyirresponsibleindustry.Rank%Difference(vs.averageofallindustriesmeasured)#3/20+55%ofthetop20mostsustainablebrandsaccordingtoconsumersareF&Gbrands.F&Gbrandsrepresentc.60%ofallthebrandsmeasured70%SummaryExpectationsBrandsDriversCommunicationsResourcesStrictlyprivate&confidential.CopyrightGlow2022.Consumershaveanopinionaboutyourbrand.IndividualconsumershaveavalidandclearopinionaboutbrandESGcredentials.Over7in10(71%)consumershadastrongopinionaboutthebrandstheywereawareof,withthetopbrandsperformingtwiceaswellasthebottombrands.ThedistributionofscorespivotsaroundanaverageSRSof38,withanelongatedtailtowardsthehigherscores.Thisindicatesthatafewbrandsaredoingexceptionalthingsintheareaofsocialandenvironmentalresponsibilitytoclearlydifferentiatethemselvesfromthepack.Source:SocialResponsibilityScorebybrandacrossFMCGbrands,perceptionbasedonbrandsconsumersareawareofFoodandGrocerybrandaverageSRS=387in10consumershaveapointofviewonyourESGcredentials.71%Thetop10F&Gbrandsscoretwiceashighlyasthelaggards.x2GenZandBabyBoomersaretheharshestcriticsscoringbrandsonaverage16%lower.-16%SummaryExpectationsBrandsDriversCommunicationsResourcesStrictlyprivate&confidential.CopyrightGlow2022Source:SRSbybrandacrossFMCGbrands.Wheredoesyourbrandsit?Examplebrandsinthedistributionofscores.Theleadingbrandsscoreabove45andaredetailedonthenextpage.GenZmorescepticalGenZtendtohaveamoreunfavourableopinionofleadingbrands,ratingthemonaverage7pointslowerthantheaverageacrossagegroups,indicatingalevelofskepticismtowardseventhemostprogressivebrands.BoomershavelosttheirpatienceAttheotherendofthespectrum,Boomersgivebyfarthelowestscores(-9)tothebottombrandsindicatingahigherleveloffrustrationwithbrandsthataredraggingdowntheindustry.FoodandGrocerybrandaverageSRS=38ConfectioneryBrandSoftDrinkBrandWarburtonsGilletteSchweppesImperialLeatherMcCainColgateBen&Jerry’sKellogg’sNescafeLeadingbrandsL’OrealHouseholdCleaningBrandSummaryExpectationsBrandsDriversCommunicationsResourcesStrictlyprivate&confidential.CopyrightGlow2022.ThemostresponsibleF&Gbrands,accordingtoUKconsumers.Thetop20mostsociallyandenvironmentallyresponsibleF&Gbrandsaccordingtoconsumersspanarangeofcategoriesfromhouseholdcleaningandlaundryproductstoplantbasedmeat,coffeeandtoiletpaper.Themajorityhavestrongenvironmentalprogramsandseveralalsohaveafocusonspecificsocialorgovernanceaspects.Forexamplesupplierwelfare(PactCoffee),doingtherightthing(OneWater,WhoGivesaCrap)andhealth&wellbeing(Simple,Dove)Tofindoutwhereyourbrandstands,requestadatademoatsocialresponsibilityscore.comSummaryExpectationsBrandsDriversCommunicationsResourcesStrictlyprivate&confidential.CopyrightGlow2022.Q:Wheredoyounormallylearnaboutacompanyorbrand'senvironmentalandsocialprogramsandbehaviour?AsoneofthefirstgreenbrandsintheUK,itisperhapsnotsurprisingtofindthatEcoverisperceivedbyconsumersasthe#1FoodandGrocerybrandamongallthebrandswetrack,achievinganSRS57%abovetheF&Gindustryaverage.ThecorefocusforthebrandistheEofESG,withstrongmessagingandprogramsaroundcreatingproductsthatdonotharmtheenvironment,educationalprogramstomaximisethelifeofclothingandbottlerefillingprogramstoreduceplasticandpackaging.WhatpeoplelikeaboutEcover’ssocialandenvironmentalbehaviour:UsingnaturalproductstomaketheirproductsTheirwholebrandingisfocusedonbeingecofriendlyFemale/55-65yearsYorkshireFemale/18-24yearsEastMidlandsSpotlightEcover.TheyarefocusedonbeingsustainablewiththeirpackagingandofferrefillsoftheirproductsMale/25-34yearsEastAngliaSummaryExpectationsBrandsDriversCommunicationsResourcesStrictlyprivate&confidential.CopyrightGlow2022.Q:Wheredoyounormallylearnaboutacompanyorbrand'senvironmentalandsocialprogramsandbehaviour?StartedbytwofriendsintheUS,Methoddisruptedthecleaningcategorywiththeircombinationofboldpackaging,personalityandpurpose.TheirappealtoUKconsumersisclearwiththebrandtaking#2spotbehindsisterbrandEcover.Methodexemplifiespassionandpurposewithastrongmixofenvironmentalbenefits(plantbasedingredients,100%recyclableplastic),governancecommitments(greensourcing)andsocialinitiativesthatshowcaseyoungeco-changemakersandcelebratediversityandinclusionsuchasthe‘dragcleans’campaign.WhatpeoplelikeaboutMethod’ssocialandenvironmentalbehaviour:Producttesting,ingredients,packagingEnvironmentallyfriendlycleanerswhichworkwellFemale/25-34yearsWestMidlandsFemale/45-54yearsNorthernIrelandSpotlightMethod.NoanimalbasedproductsortestingFemale/55-64yearsSouthEastSummaryExpectationsBrandsDriversCommunicationsResourcesStrictlyprivate&confidential.CopyrightGlow2022.Q:Wheredoyounormallylearnaboutacompanyorbrand'senvironmentalandsocialprogramsandbehaviour?PaperproductbrandWhoGivesACrap’spunnytakeonbeinggoodforyourbumandtheworldisresonatingwithconsumers,enablingthemtotakethe#6positioninbrandrankingswithanSRS33%abovetheF&Gindustryaverage.Thoughoverallbrandawarenessisrelativelylow,thosewhoknowthemreallygettheircombinationofpurposeandsustainableproducts,eveniftheyaren’tcustomers.WhatpeoplelikeaboutWGAC’ssocialandenvironmentalbehaviour:Recyclingfocus&buildtoiletswheretheyareneededTransparentbusinesspracticesEnvironmentallyfriendlyproducts&give%ofprofittocharityFemale/65+yearsEastMidlandsMale/45-54yearsLondonFemale/25-34yearsEastAngliaSpotlightWhogivesacrap.SummaryExpectationsBrandsDriversCommunicationsResourcesStrictlyprivate&confidential.CopyrightGlow2022.Q:Wheredoyounormallylearnaboutacompanyorbrand'senvironmentalandsocialprogramsandbehaviour?Doveisanexampleofatop20brandthatfocusesonadifferentpartofESG,theSorsocialcontribution.Doveisbestknownforitsrealbeautyinitiatives,arangeofprogramsdesignedtopromotepositivebodyimage,self-esteem,diversityandinclusionamongstbothadultsandchildren.Theirworkwithyouthisincreasinglypertinentgivengrowingchallengesaroundmentalwellbeing,self-confidenceandbodyimageamongstthisaudience.WhatpeoplelikeaboutDove’ssocialandenvironmentalbehaviour:DefendingwomenandgivingthempositivityTheyaremakingnaturalproductsandencouragingbodypositivitywhichisgreatFemale/45-54yearsNorthWestMale/25-34yearsEastAngliaSpotlightDove.It’scampaignhelpingyounggirlsandwomenwiththeperceptionoftheirimage,beauty,andselfworthFemale/25-34yearsLondonSummaryExpectationsBrandsDriversCommunicationsResourcesTotalGenerationGenderIncomeGenZMillennialsGenXBoomersMaleFemaleUnder£50kOver£50kStrictlyprivate&confidential.CopyrightGlow2022.Source:SRSscorebydemographicsforeachbrand.Eventheleadingbrandshavespecificcohortsoffansanddetractors.Evenamongsttheleadingbrandsinthesamecategory,therecanbedifferencesinperceptionacrossdemographicgroups,makingitimportanttounderstandwhoyourfansare.Example:Weetabix&JordansCerealarebothstrongbrandsintermsofconsumerperceptionsofsocialandenvironmentalresponsibilitywithbothbeinginthetopquartileofbrandstrackedwithintheFood&Groceryindustry.Bothbrandshoweverhavedistinctgroupsthataredrivingorholdingbacktheiroverallperformance.JordansCerealhaveaspecificissuewithGenZconsumerswhilearestrongestwithBoomers.MeanwhileWeetabixisbyfarthestrongestwithMillennialsintermsofESGperception,butstrugglemosttoconvinceGenZandBoomers.435346464847424945TotalGenerationGenderIncomeGenZMillennialsGenXBoomersMaleFemaleUnder£50kOver£50kJordansCerealSRSWeetabixSRS434347454546432947SummaryExpectationsBrandsDriversCommunicationsResourcesStrictlyprivate&confidential.CopyrightGlow2022.PerceptionofESGisn’tabarriertopurchasefortheleadingbrands.TheleadingbrandsaremoreeffectivelycommunicatingtheirESGcredentialstoallconsumers.AnalysisoftheleadingSRSbrandsshowsthatthedifferenceinperceptionbetweenallconsumersandrecentpurchasersisfarsmallerforthesebrands.Example:Ecover,oneofBritain’soriginalecobrandsisrecognisedforitssocialandenvironmentalcontributionbycurrentbuyers,previousbuyersandnon-buyers.Incontrastthenewercategoryentrant,Reckitt’sBotanicalOrigin,performsfairlystronglyforcurrentandpreviousbuyersbutseesadrop-offinSRSof30%betweenpriorbuyersandnon-buyers(vs.8%forEcover).ThissuggestsBotanicalOriginmayhaveabarriertopurchasegivenit’slowersustainabilitycredentialsamongstthosethathaveneverpurchased.ConfirmationbiasisobservedintheperceivedESGperformanceforallbrands.Brandsthathavebeenpurchasedrecentlyreceivesignificantlyhigherscoresthanthosebrandspeoplehaven’ttried.Giventhebenchmarknatureofthedataproducedbythisprogramthiseffectiscancelledoutwhenassessingtherelativeperformanceofbrands.SummaryExpectationsBrandsDriversCommunicationsResourcesStrictlyprivate&confidential.CopyrightGlow2022.Eveninthecurrenteconomicclimate,wherethecostoflivingisasignificantconcern,socialandenvironmentalperformancestillmatters.Nowmorethanever,brandsthatwanttoretainandwincustomersneedtostandforsomething.Withpricesrisingacrosstheboard,evenwell-offconsumerswillbelookingforopportunitiestotradedowntosavemoney.Assuch,customersneedacompellingreasonwhytheyshouldn'tswapyourbrandforacheaperalternative.Alongwithquality,sustainabilityconcernsarelikelytobeakeyfactorconsumersconsiderinthiscontext.MikeJohnstonManagingDirectorDataProductsSummaryExpectationsBrandsDriversCommunicationsResourcesStrictlyprivate&confidential.CopyrightGlow2022.Areyoureapingtherewardsofchangingbehaviour?Areyouahead(orbehind)yourkeycompetitors?SummaryExpectationsBrandsDriversCommunicationsResourcesWhoareyoursustainabilityadvocates(anddetractors)?Areperceptionsabarriertopurchase?AreyoubenefittingorlosingfromESGledswitching?WhatdrivesESGperception.04.DriversStrictlyprivate&confidential.CopyrightGlow2022.Whatismostimportanttoconsumersdiffersbyindustry.Thereare13keydriversthatinfluenceconsumerperceptionofabrand’sESGcredentials.Thesedriversareconsistentacrossindustriesbutdifferentinimportancebasedonindustry.The13Environmental(E),Social(S)&Governance(G)drivershavebeendevelopedfrom18monthsofresearch,usingover100kdatapointsacross3marketsandhavebeenderivedfrominvestigationofover40issueareas.Thedriversenablebrandstoundertakedetaileddiagnosticsandactionplanning.SummaryExpectationsBrandsDriversCommunicationsResourcesStrictlyprivate&confidential.CopyrightGlow2022.ConsumerswantthemajorfocusfromF&GbrandsonEnvironmentalareas.3ofthe4environmentalissuesaredeemedtobeofthehighestimportancegroupforFoodandGrocerybrandstofocuson.Alongsidethesetwokeygovernancedriversarealsoofveryhighimportancetoconsumersinthisindustry.ThespecificdriversthataremostimportantinimpactingoverallESGperceptionforFood&Grocerybrandsare:●Doingtherightthing●Respecting&protectingnaturalresources●Reducingemissions&climatechange●Reducingplasticandmanagingwaste●TakingcareofsupplierwelfareTheexpectationsofconsumersareweightedtowardstheE(Environment)andG(Governance).Thisbalanceshiftsacrossindustrytype,butforfoodandgrocerybrandsitisclearthatfocusingonreducingenvironmentalimpacts,doingtherightthingandlookingaftersuppliersarekeydriversofindustryperformance.Understandingoverallindustryprioritiesandyourbrand’sperformanceagainstthemiscriticalfordevelopingoroptimisingESGstrategiessinceithighlightsthewayyoureffortswillbeassessedbyconsumers.SummaryExpectationsBrandsDriversCommunicationsResourcesStrictlyprivate&confidential.CopyrightGlow2022.Q:Foodandgrocerybrands(e.g.brandsthatproducefoodandhouseholdsupplies)meetmyexpectationswhenitcomesto.[driver]OneachESGissue,atleast40%ofconsumersarenotsatisfiedwiththeIndustry’sperformance.WhiletheFoodandGroceryindustryoverallisranked3rdbyconsumersintermsofESGperformance,andperformsatleast10%betteracrosseverydriverthantheaverageofalltheotherindustriesmeasured,therealityisthatitstillfallsshortofmanyconsumersexpectations.Consumersatisfactionwiththeindustry’sperformanceacrossthe13driversisonaveragelowerthanobservedinothermarketssuchasAustraliaandtheUS.InfactnosingledriverintheUKisdeemedtobemeetingexpectationsofmorethan6in10consumers,while50%orfewerconsumersaresatisfiedwiththeindustry’sperformanceacross3ofthe5mostimportantareas.Particularareasofopportunityfortheindustryarethoseimportanttoconsumersandwhereperformanceislow,specifically●Respecting&protectingnaturalresources●Reducingemissions&climatechange●TakingcareofsupplierwelfareHowevergivenhowlowperformanceis,thereisalsoclearlyanopportunitytoleadinregardsProtectingWildlife&Ecosystemswithintheindustry.6in10consumerssatisfiedwithindustryperformanceHalfofconsumerssatisfiedwithindustryperformanceSummaryExpectationsBrandsDriversCommunicationsResourcesStrictlyprivate&confidential.CopyrightGlow2022.TheopportunityistounderstandhowyourbrandisperformingineachkeyareaofESG.Example:BrandAisaleaderinthecategoryandthiscanbeseenbythestrongoverperformanceagainsttheindustrybenchmark(greenring)acrossanumberofthedrivers.WhencomparingtocompetitorBrandB,wecanseetheyhaveasignificantopportunitytoutilisethispositionofstrengthinanumberofareas,butinparticularinrelationto‘’Reducingemissions&climatechange’and‘Actingwithtransparency&honesty’wheretheirstrongoverperformanceiscoupledwiththeircompetitor’sunderperformance.BrandABrandBSource:ActualF&GbrandSRSdiagnosticdataanonymisedduetocommercialsensitivitySummaryExpectationsBrandsDriversCommunicationsResourcesStrictlyprivate&confidential.CopyrightGlow2022.Areyouleadingthewayinyourindustry?SummaryExpectationsBrandsDriversCommunicationsResourcesDoyouknowwhichissuesconsumersexpectyourindustrytoaddress?DoesyourcurrentESGstrategyalignwiththeseissues?Whereareyourcompetitorsfocussed?Areyouahead(orbehind)competitorsintheseareas?CommunicatingESGcredentials.06.CommunicationsStrictlyprivate&confidential.CopyrightGlow2022.Consumersareincreasinglyinclinedtoconsidersocialresponsibilityandsustainabilityvalueswhenchoosingbrands.Thismeansbrandsbothhavetowalkthetalk,andcommunicatethosevalueseffectivelyintheirmarketing.PhilBenedictusCEOBenedictusMediaClimateCommsChampion2021SummaryExpectationsBrandsDriversCommunicationsResourcesStrictlyprivate&confidential.CopyrightGlow2022.CurrentsourcesofESGinformation.Themostcommonplaceswherepeoplelearnaboutbrands’ESGinformationareinthenewsandmedia,productpackagingandadvertising.ThisisnotthefullstoryhoweverasthewaytheycurrentlylearnisdifferenttohowpeoplewouldprefertogatherESGinformation.Q:Wheredoyounormallylearnaboutacompanyorbrand'senvironmentalandsocialprogramsandbehaviour?SummaryExpectationsBrandsDriversCommunicationsResourcesStrictlyprivate&confidential.CopyrightGlow2022.PreferredsourcesofESGinformation.Whenitcomestohowpeopleprefertolearnaboutcompanies’ESGefforts,Productpackagingjumpsfrom2ndspotto1stindicatinganopportunityforbrandstoleveragepackagingspacemoreeffectivelytocommunicatetheirESGprograms,forexamplethroughtheintegrationofQRcodesthatlinktomorein-depthexplanations.Socialmediadropsasapreferredchanneloverall,thoughthisisnottrueforalldemographicgroups.Q:Wherewouldyouprefertolearnaboutacompanyorbrand'senvironmentalandsocialprogramsandbehaviour?SummaryExpectationsBrandsDriversCommunicationsResourcesStrictlyprivate&confidential.CopyrightGlow2022.PreferredsourcesofESGinformationbyagegroup.Q:Wherewouldyouprefertolearnaboutacompanyorbrand'senvironmentalandsocialprogramsandbehaviour?TotalGenZMillennialsGenXBabyBoomersProductpackaging33%News&mediacoverage30%Advertising24%Instore(physicaloronline)20%Company/brandwebsite20%Generalsocialmedia19%Friends/family13%Company/brandcommunications13%Company/brandsocialmediaactivity12%Eventsandconferences4%50%+higherthanaverage20%to50%higherthanaverage20%to50%lowerthanaverage50%+lowerthanaverageSummaryExpectationsBrandsDriversCommunicationsResourcesGenZandtoalesserextentMillennialshaveagreaterpreferenceforreceivinginformationacompany’sESGeffortsviasocialmedia(generalorcompanyspecific)aswellasfromfriendsandfamily.ThiscontrastswithBoomerswhoarelesslikelytowanttoreceiveinformationviasocialmediaandhaveagreaterinterestinthisinformationcomingfrommoretraditionalnewsoutlets.GenZarealsolesslikelythanotheragegroupstobelookingforESGinformationonproductpackaging.Strictlyprivate&confidential.CopyrightGlow2022.MeasuringconsumeropinionforCadburyissupportingprogramoptimisation.Asaleaderintheircategoriesandacorporatebrandwithapurpose(“therightsnackfortherightmomentmadetherightway”)thatputsESGelementsatthecoreofwhattheydoasabusiness,GlowpartneredwithMondeleztoembedSRSwithintheirmeasurementandinsightframework.TheworkconfirmedconsumersseeCadburyasaleaderwithintheircategoryonESGissuesandpinpointedareasofstrengththatdrovethisoutperformance.Howeveritalsorevealedaninterestingandimportantelementregardingtheimportanceofmaximisingconsumerunderstanding.AspartoftheSRSdriveranalysisconductedwithGlow,theawarenessof6keyESGprogramsrunlocallyandgloballybyCadburywasassessed.Thefindingswereclear;SRSwas94%higherforpeopleawareofanyofthebrand’sESGprogramscomparedwithpeoplewhoweren’tawareofany.MoreinformationcanbefoundaspartoftheCadburyCasestudyontheGlowwebsiteGlow’sESGprogramhasprovideduswithfreshandpowerfulinsightsintoconsumerperceptionsofourESGperformancethatwillinfluencenotonlyourprogramcommunicationsstrategybutalsoourinvestmentapproach.DionBroganSeniorConsumerInsightsManager,ANZAwareofatleastoneofthebrand’sESGrelatedprogramsAwareofnoneofthebrand’sESGrelatedprogramsAverageforthisbrandSocialResponsibilityScoreSummaryExpectationsBrandsDriversCommunicationsResourcesStrictlyprivate&confidential.CopyrightGlow2022.Areyoutellingyourstoryeffectively?SummaryExpectationsBrandsDriversCommunicationsResourcesStrictlyprivate&confidential.CopyrightGlow2022.Areyoucommunicatingthejourneyorthedestination?Areyoutellingyourstoryintherightplaces?Areyourconsumersactuallyawareofyourprograms?DoawareconsumersappreciateyourESGefforts?Furtherreading.08.ResourcesStrictlyprivate&confidential.CopyrightGlow2022.SocialResponsibilityScore.Glowprovidesdata,researchservices,toolsandtemplatesthatcanhelpyoubetterunderstandyourESGrisksandopportunitiesacrossarangeofstakeholders.Discovermore-visitsocialresponsibilityscore.comRequestadatademoatsocialresponsiblityscore.comSummaryExpectationsBrandsDriversCommunicationsResourcesSRSTrackerSRSDiagnosticSRSSnapshotWhichproductisrightforyou?Datathatsupportsyouwhereveryouareonyoursustainabilityjourney.HowSRSWorksWatchthe90secondexplainervideoStrictlyprivate&confidential.CopyrightGlow2022.Resources.PleasefindbelowadditionalresourcesthatmayhelpinspireandsupportyouandyourbusinessonyourESGjourney:CadburyCasestudyHowCadburyusedGlow’sESGdiagnostictohelpgatherinsightsonitsESGprogress.UKSupplierSurveyIndependentFood&GrocerysuppliersurveywithafocusononESGelementsintheirrelationshipswithretailersCatalystMultiplepiecesofdataandanalysisonconsumerattitudestoarangeofsocialandenvironmentalissuesfromaprogrampoweredbyGlow,Cintandothers.Ifyouwanttofindoutwhatconsumersthinkofyourbrand’sESGperformance,requestadatademoatsocialresponsiblityscore.comMcKinseySustainabilityRemainsTopPriorityforConsumersandGroceryCEOsNielsenIQUSconsumerhealthandwellnessdatarelevanttoF&Gbrands.TheBusinessofPurposeCuratedESGstatstosupportthereasonswhyanESGfocusisgoodbusinessstrategy.SummaryExpectationsBrandsDriversCommunicationsResourcesglowfeed.com
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