Nearly two-thirds of consumers will pay more for sustainable products, according to a new global report from KPMG.

The Me, my life, my wallet report found that almost three-quarters of consumers (74%) who feel sustainability is important are willing to pay more for sustainable products. Further, 64% of consumers want to understand the environmental impact before buying something and 38% actively seek companies that are proactively enacting a sustainable agenda.

The research highlights that retailers that do not meet their criteria for caring for society and the planet are being cast aside, while those that do are reaping the financial benefits.

Commenting on the findings, KPMG Australia head of retail, Lisa Bora said, “Consumers are increasingly voting with their wallets and leaving behind retailers that they perceive as being behind the times on ESG issues. The traditional gap between saying and doing – what we call the intent versus action gap – looks to be lessening. Nearly two-thirds of consumers who were actively concerned about environmental impact say they are prepared to pay more to ensure they were buying sustainably.

“The role and responsibilities of retailers in society is increasing in importance when it comes to sustainability. The impact of this means retailers need to act sustainably on everything from the procurement and sourcing of goods, through to the supply chain, partnerships and packaging. They need to ‘do good’ for the environment, but not position that sustainability focus as a premium cost to consumers. Above all, being transparent matters, and a clear roadmap to net zero emissions is central to market expectations and ensuring no greenwashing.”