Creating Value from Sustainable Products: Insights from Deloitte Canada

Deloitte Canada’s inaugural consumer sustainability report, published January 22, 2024, explores how businesses can create trust and deliver genuine value in a marketplace increasingly driven by sustainability claims. The study surveyed both business leaders and Canadian consumers, highlighting key challenges and opportunities in sustainable product creation and marketing.

Rising Consumer Demand for Sustainable Goods

Despite economic pressures post-pandemic and rising inflation forcing Canadians to tighten discretionary spending, sustainability remains a priority for many. Notably:

• 62% of Canadians are willing to pay a premium of 20% or more for sustainably produced products and services.
• Consumers are consciously rewarding brands that uphold authentic sustainability promises, signaling a strong market trend toward green purchasing behavior.

Consumer Confusion and Skepticism Around Sustainability Claims

A critical challenge identified is the disconnect between brand intentions and consumer perceptions. The retail environment is saturated with sustainability claims, but:

• Nearly half of consumers (49%) express skepticism about the authenticity of green claims.
• Many brands underestimate the reputational risks linked to greenwashing.
• Consumers face frustration and confusion, struggling to evaluate the legitimacy of environmental certifications and sustainability statements.

The Cost and Complexity of Sustainable Product Launches

Businesses often encounter significant hurdles such as:

• Higher costs associated with sustainable production processes.
• Difficulty in quantifying and communicating the tangible benefits of sustainability initiatives.
• The challenge of aligning sustainability with business profitability.

The Importance of Purpose-Driven Products and Enterprise-Wide Strategies

Deloitte emphasizes that the most successful sustainable products are those embedded with clear purpose — products that resonate with both environmental impact and consumer values. Key approaches include:

• Operating with genuine sustainability purpose to create appealing and meaningful products.
• Employing a whole-of-enterprise approach integrating sustainability across operations, supply chains, marketing, and governance.

Building Consumer Trust through Transparency and Authenticity

To close the trust gap, companies should:

• Commit to transparent, authentic messaging free from exaggeration or misleading claims.
• Foster ongoing engagement with consumers to reinforce credibility.
• Recognize that trust is a de facto asset in the competitive landscape of sustainable product offerings.

Conclusion

Deloitte Canada’s report underscores that the future of successful sustainable products depends on building trust through authenticity, leveraging consumer willingness to pay for sustainability, and approaching sustainability as a core business strategy—not just marketing. Businesses that can navigate these complexities stand to gain lasting brand loyalty and competitive advantage in the Canadian market.

For more detailed insights, Deloitte Canada offers a full downloadable report [available here (PDF, 8MB)].

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