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Can enhanced ESG measures lead to higher valuation, consumer support, and consumer value? ÃÛ¶¹ÊÓƵ Research believes so. ÃÛ¶¹ÊÓƵ Evidence Lab data shows that conscious consumption among Japanese consumers is growing steadily.
Second survey of ESG awareness among Japanese consumersÌý conducted
Following one in 2020, ÃÛ¶¹ÊÓƵ Evidence Lab conducted another ‘Japan ESG Consumer PulseCheck’ survey of 1,000 consumers nationwide. Given the high level of market interest in the previous report, survey questions were updated and time series analysis and overseas comparisons were added. Conscious consumption (i.e., taking into account environmental and social impacts) among Japanese consumers is growing steadily, led by Gen Z consumers. For consumption related companies, we think enhanced ESG measures will lead not only to higher valuations from investors and support from consumers long term, but also directly to corporate value.
Notable rise in the price premium for socialÌý responsibility
The results of this survey both confirm the increasing importance of environmental and social considerations as factors in making consumption decisions and also show a trend from the previous survey of willingness to pay higher prices for products that are eco-friendly and socially responsible. In particular, the average price premium for social responsibility rose from +7.7% in 2020 to +9.0% in 2021, and from +12.5% to +13.9% among young people. Consumers may be requiring more from companies in terms of their social impact with Covid.
Implications:Ìý ESG not just addressing risk, also important to corporate value
In the latter part of this report, we examine implications for related industries from various angles, including from the perspective of ESG-related efforts by individual companies and assessments of those efforts. In particular, we examine the retail industry, the foods industry, consumer products, smallÌý andÌý mid-capÌý stocks, and the financial industry.