Melbourne holds the key to advancing ethical consumption in Japan!

Recently, Dentsu Inc. announced the results of its "Ethical Consumption Awareness Survey 2020" (hereafter, this survey) ( release here ). Previous installments in this series introduced what ethical consumption is, consumer awareness and trends regarding ethical consumption in Japan, and key points for companies undertaking such initiatives.

In this final installment, we examine how to respond to the ethical consumption intentions revealed by this survey, drawing on examples from Melbourne, a leading city in ethical consumption.

<Table of Contents>
▼Melbourne Achieves Carbon Neutrality
▼ Cross-Industry Partnerships Boost Renewable Energy Choice Through Point Services
▼ Local Government, Businesses, and Charities Collaborate on " " : Tackling Food Loss Prevention and Local Production for Local Consumption
▼How to Build Conviction in "Price" and "Product Benefits"?

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Melbourne Achieves Carbon Neutrality

I currently reside in Melbourne, Australia, where I am researching social issues and social entrepreneurship within the cultural industries at a local graduate school. Melbourne, surrounded by greenery and rich in artistic flair, is renowned as one of the world's most livable cities. It is also one of the cities that began tackling emissions causing climate change early on, setting an ambitious goal in 2003 to achieve net-zero carbon emissions by 2020.

Since 2012, the city has pursued initiatives to power Melbourne City Council-operated buildings, related operations, and seasonal events with renewable energy. By offsetting the remaining carbon dioxide emissions that couldn't be reduced, the city has achieved carbon neutral certification every year (※1).

Trams running throughout the city will soon operate solely on renewable energy, and businesses are also working to choose more environmentally friendly buildings and 100% renewable energy. A 2016 survey of citizens conducted by the government agency Sustainability Victoria found that 80% of people want to take action on climate change, and 87% believe local governments should take action, indicating a high level of ethical awareness among citizens (※2).

In this way, Melbourne—where local governments, businesses, and consumers each engage in ethical consumption from their respective positions—offers various useful hints for Japan as it works toward ethical consumption.

Melbourne's landmark, St. Paul's Cathedral.

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Cross-industry point services encourage renewable energy choices

This survey revealed a gap between consumers' current perceptions and their expectations regarding the level of ethical consumption initiatives across industries. The results indicate that the energy/infrastructure sector—including electricity, thermal power, and water supply—faces the highest consumer expectations for future initiatives in the Japanese market. Within this sector, consumer intent to use renewable energy is particularly high.

Furthermore, while many consumers express interest, many have no purchase experience. The energy/infrastructure sector is also identified as needing to provide triggers and reasons for consumers to shift towards ethical consumption.

Conversely, when moving to Australia and selecting an electricity/thermal power provider, I noticed renewable energy options were readily available. Australia is currently undertaking a national transition from fossil fuels to hydrogen, with private energy companies and my university investing heavily in research projects (※3).

For example, Origin Energy, a leading company in the energy sector, actively incorporates renewable energy. It is highly popular due to its high service quality and has committed to phasing out coal-fired power generation by 2032 (※4).

As part of its corporate strategy, Origin Energy has joined the major supermarket chain Woolworths' "everyday rewards" points system. Monthly payments accrue points, and campaigns offer points when signing up for Origin Energy contracts.

Accumulated points can be used at over 10 partner companies within the same points system, including Qantas Airways, Big W (a major household goods brand), and BWS (a beverage brand). Among Australia's major supermarkets, Woolworths is particularly proactive in contributing to local communities and tackling food waste, collaborating with various companies. This makes it easier for ethically conscious consumers to choose renewable energy when selecting an energy company.
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Local governments, businesses, and charities collaborate to tackle "food loss prevention" and "local production for local consumption"

This survey revealed that, in addition to "renewable energy," "food loss prevention" and "local production for local consumption" were the areas where people showed particularly high awareness, empathy, and willingness to act.

Food loss is also a serious problem in Australia, where we see examples of companies working alongside local charities and other groups, in addition to local governments.
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● Collecting food and plant waste for composting
Rules vary by municipality, but in my area, alongside landfill (burnable waste) and recycling, households are provided with compost bins for collecting food and plant waste. Additionally, compost bins are installed in community parks, and the resulting fertilizer is used in community gardens, creating a well-established system.

In Japan too, increased home cooking during the pandemic seems to have drawn attention to home compost bins. However, I also hear concerns about finding uses for the resulting fertilizer. Therefore, for "food loss prevention," wouldn't it be easier for more people to participate if local governments took the lead in establishing systems?

Illustrations on the compost bins show what is acceptable. While cooking, you sort your waste by referring to these illustrations.

●Collaboration between charities, farmers, and businesses
As mentioned earlier, major supermarket Woolworths partners with three hunger relief charities to collect surplus edible food from hundreds of stores. They implement food loss countermeasures by providing over 20 million nutritious meals annually free of charge to homeless individuals, refugees, and visa holders who lost their jobs due to the pandemic (※5). Additionally, they collaborate with local farmers to use leftover food as animal feed or farm compost. Promoting such partnerships between organizations expands opportunities for consumers to indirectly contribute to solving social issues like food waste and hunger.

FareShare, Australia's largest charity kitchen. Volunteers rescue food using refrigerated vans (left photo) and prepare nutritious meals in the kitchen (right photo). They enhance nutritional value by adding vegetables grown on FareShare's own fields, providing these meals free of charge to people experiencing food poverty for various reasons (※6).

● Strong Awareness of Local Food Consumption
In Melbourne, three major markets consistently offer locally grown vegetables, meat, and seafood, creating frequent opportunities to consciously choose locally produced goods in daily life. Major supermarkets also prominently display Australian-produced ingredients. Some local governments maintain community gardens, and signs reading "SUPPORT LOCAL" are frequently seen throughout the city. When consumers consciously choose local products—whether food, daily necessities, or goods from any industry—and prioritize local production for local consumption, it positively impacts environmental, social, and cultural aspects.

(Left) A value pack of locally grown vegetables and fruit. At Prahran Market. (Right) Signs seen at community-rooted shops and along the streets.

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How to build consumer confidence in "price" and "product benefits"?

This survey revealed that consumers' satisfaction with both "price" and "product benefits" is crucial for purchasing ethical goods. Since perceptions vary, here we highlight a specific example of an energy company that satisfied the author on both fronts.

● Price considerations
When selecting an energy provider, Origin Energy's Basic Plan (where 25% of electricity comes from renewable sources and 100% of gas is natural gas energy) showed an annual price difference of AUD 20–30 (approx. ¥2,000) for a single-person household compared to plans from other providers not using renewable energy.

Additionally, the site clearly displayed how much prices would increase if renewable energy was set to 50% or 100%. It also allowed detailed customization, such as installing solar panels on the residence. This system enabling gradual adoption of renewable energy according to budget, combined with the previously mentioned points system, contributed to a sense of satisfaction regarding pricing.

● Innovations in "Product Benefits"
For consumers choosing renewable energy based on its environmental benefits, here are two services designed to enhance satisfaction. First, Origin Energy displays energy usage on its app every two hours, allowing users to see real-time fluctuations in their bill amount linked to that usage.

Second, the "Origin Spike Program" rewards users who achieve energy-saving goals during peak demand periods called "SpikeHours." Users earn points by exceeding targets, redeemable for PayPal cash or gift cards (※7).

The SpikeHours notification emails encourage cooperation to reduce grid load as the transition to renewable energy progresses. I believe that when companies effectively deliver services to ethically conscious consumers, and consumers actively participate in the services offered by companies, the combined actions of both parties contribute to securing economically viable energy sources with lower environmental impact.

This time, based on this survey, we introduced overseas examples from select industries. As covered in previous installments, consumer demand for ethical products and services is expanding globally. Every business activity can significantly contribute to achieving the SDGs and realizing a sustainable society. While the challenges addressed by local governments, companies, charities, and consumers differ based on their respective roles, organizations sharing a common purpose must collaborate across boundaries and national borders.

＜References＞
※1 Climate Change Mitigation Strategy to 2050, Melbourne together for 1.5℃ [Government Report]
https://www.melbourne.vic.gov.au/sitecollectiondocuments/climate-change-mitigation-strategy-2050.pdf
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※2 Sustainability Victoria [Government Website]
https://www.sustainability.vic.gov.au/
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※3 JETRO (2020) Survey on the Hydrogen Industry in Australiahttps://www.jetro.go.jp/ext_images/_Reports/01/82b3276826014c69/20200042_02.pdf

※4 Origin Energy sustainability and renewables [Company Website]
https://www.originenergy.com.au/about/sustainability.html

※5 Woolworths Sustainability [Company Report]
https://www.woolworthsgroup.com.au/icms_docs/195782_2020-sustainability-report.pdf

※6 FareShare [Company Website]
https://www.fareshare.net.au/what-we-do/

※7 The Origin Spike program [Company Website]
https://www.originenergy.com.au/spike/

【Overview of Ethical Consumption Awareness Survey 2020】
・Target Area: Nationwide Japan
・Respondent Criteria: Men and women aged 10 to 70
・Sample Size: 125 individuals per gender/age group, totaling 1,000 respondents weighted to reflect population demographics
・Survey Method: Online survey
・Survey Period: November 18–25, 2020
・Research Agency: Dentsu Macromill Insight, Inc.
*Percentage composition (%) is rounded to the second decimal place, so the total may not always add up to 100%.