First survey of ESG awareness among Japanese consumers conducted
UBS Evidence Lab has done its first Japan ESG Consumer PulseCheck survey of 1,000 individuals. Results show higher-than-expected awareness of conscious or ethical consumption that considers environmental or social factors. Awareness is high especially among Generation Z consumers that will underpin future consumption—digital natives strongly connected through social media. For consumer-related companies, enhanced environment, social, and governance (ESG) policies are not only likely to improve investor sentiment. They may also improve long-term support from consumers. We expect the importance of ESG issues to grow.
Majority 'willing to pay more for eco-friendly/socially responsible products'
There were only a few selective surveys in this area in Japan and the UBS Evidence Lab Japan ESG Consumer PulseCheck survey confirmed not only higher awareness of ESG and SDGs following COVID but willingness to pay more for eco-friendly/socially responsible products, especially among Generation Z , which is likely to attract attention. Price premium was 8% on average and over 12% among Generation Z. It is surprising the added value of eco-friendliness / social responsibility is so high in Japan, where price consciousness is always high. If consumer businesses enhance ESG, they may gain room to raise prices