Executive Summary

The markets for green and ethical goods form only a small percentage of total consumer expenditure, yet significant niche markets, particularly Fairtrade goods, are growing exponentially. The demand for ethical production and greater corporate responsibility is being channelled more effectively through consumer boycotts and more sophisticated campaigning by protest groups. Pressures from within commerce for more accountability and openness are evident in the rise in non-financial reporting schemes, which are allowing more transparency and monitoring of production — a prerequisite for ethical production. These two parallel movements, while short of transforming consumer markets, are creating conditions for a major revision in eco-friendly patterns of consumption.

In many senses, the emergent trend towards a convergence of the environmentalist and commercial agendas is replacing the focus on change through consumer boycotts alone. The consumer research conducted for this report demonstrates that price imperatives continue to win out as the key consumer purchasing factor. In effect, consumers are also turning away from green alternatives in markets as diverse as those for cars and detergents, because manufacturers have failed to develop products that can compete on price in the mainstream market. Consumers may wish to use their cars less and even purchase greener alternatives, but they are unwilling to pay excessively more to do so.

The influence of government legislation is crucial in advancing greener solutions; under the current Government, significant progress has not been possible, as legislation has been soft-pedalled in both transport and retailing. The Congestion Charge in London has demonstrated the legislative possibilities to curb negative environmental impacts, but the move was not backed by the Government. Moreover, successive planned increases in fuel tax have been withdrawn. In the retail sector, the Government has relied on voluntary agreements to regulate supermarkets' control of food production and has not taken strong action to break supermarket monopolies.

In many respects, trends in the holiday market exemplify some of the challenges of advancing the green and ethical agenda beyond the markets now recognised as very successful, e.g. Fairtrade produce. Despite numerous attempts, green and ethical 'labelling' or branding in the holiday market have not caught on. Individual companies that place long-term sustainability at the heart of their operations have been far more successful. These companies are able to incorporate eco-friendly aspects — such as community development and pollution-free activity — and establish a longer-term approach to profit and development. At the same time, these factors are finding growing favour with consumers who are looking for quality and are increasingly sophisticated and wiser to the negative impacts of mass tourism.

The success of Fairtrade demonstrates the potentially huge demand for ethically-sourced food and other produce. In larger service markets, green and ethical considerations will be advanced in the future by the growing trend towards this convergence around key concepts of sustainability for both profit and development.

Price:	£ 799.00 GBP ex VAT (£ 938.83 GBP inc VAT )
Publication date:	28 Feb 2005
Licence period:	365 days

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