Dentsu Inc. has been conducting the "Consumer Survey on Carbon Neutrality" regularly since 2021, with the "Sustainability Promotion Office" and " Dentsu Team SDGs" – which drive sustainability projects across the Dentsu Group – serving as the survey organizers. In May 2023, the latest 10th survey results were announced, based on a sample of 1,400 people aged 15 to 79 nationwide.
Following up on our 2022 article, this piece features an interview with Dentsu Inc.'s Yuu Hayashi, a project member who conducted the survey. We discussed key findings and changes in consumer awareness over the past year.
Rising prices are squeezing household budgets. Consumers are taking a hard look at price markups.
Q. Mr. Hayashi, we also spoke with you about a year ago when the 6th survey results were released. Have there been any significant changes over this past year?
Hayashi: Since the 6th survey, each subsequent survey has shown a growing resistance among consumers towards bearing the additional costs associated with achieving carbon neutrality. This time, however, the results were the most pronounced yet.
Hayashi: Regarding the survey question asking how much additional cost for essentials like food, clothing, housing, utilities, and medical expenses people are willing to bear to support national and corporate carbon neutrality efforts, the percentage of respondents who said "prices could be raised by 6% or more per month for each expense" decreased compared to a year ago.
This survey also examined "tolerance for burdens arising from carbon neutrality promotion." When asked about acceptable burdens for advancing carbon neutrality across 46 items, many respondents indicated relatively high tolerance for items like "24-hour operations at convenience stores ending" or "your favorite amusement park closing one hour earlier." However, significant resistance was observed toward financial burdens such as "your usual ramen increasing by 1,000 yen" or "Water bills rising so much they impact household finances, forcing cuts elsewhere" showed strong resistance. This reflects consumers' sentiment that a decline in convenience is preferable to rising living costs.
Hayashi: I believe this stems from a sense of urgency—amid rising electricity and food prices, people feel they simply cannot afford further increases in living expenses. The survey results largely reflect this prevailing sentiment.
Q. So, while people recognize the need for carbon neutrality, they find it difficult to accept further cost burdens amid rising prices?
Hayashi: Over the past year, awareness of the term "carbon neutral" has remained largely unchanged. While the term itself has become more familiar, the percentage of people who correctly understand its meaning has stagnated at around 20%. This suggests that not many consumers truly recognize the necessity of carbon neutrality as something directly relevant to their own lives.
Q. For a time, carbon neutrality was frequently reported in the news. Has the wave of information subsided?
Hayashi: A major factor, from the consumer's perspective, is that few new topics have emerged. In 2020, then-Prime Minister Suga declared Japan's aim to achieve carbon neutrality by 2050. Furthermore, setting the target to "reduce greenhouse gas emissions by 46% compared to 2013 levels by fiscal year 2030" in 2021 had a significant impact. Amidst this, various initiatives using hydrogen energy were also widely reported.
However, since then, the impression is that there hasn't been much carbon neutrality-related news reaching the general public. On the other hand, the national government, local governments, and companies continue to undertake various challenges. Perhaps a disconnect has emerged between the government/corporate sector and the general public.
Dentsu Inc. Yusuke Hayashi
Q. So, will carbon neutrality progress going forward?
Hayashi: Carbon neutrality will undoubtedly continue to advance. However, I feel the concept itself has become somewhat less clear. The original impetus was global warming becoming a serious problem. To solve this, reducing emissions of greenhouse gases like carbon dioxide and achieving a decarbonized society were established as a shared global goal.
The understanding was that carbon neutrality meant not just aiming for decarbonization, but doing so while maintaining economic activity and fostering technological development and innovation. For example, using hydrogen instead of fossil fuels as an energy source creates new markets. Technologies to absorb or adsorb emitted carbon dioxide are also emerging.
However, Russia's invasion of Ukraine has introduced energy security concerns, leading to global issues like energy distribution imbalances and price surges. Carbon neutrality has now become entangled with such geopolitical considerations. The reality that progress is being made under these circumstances is not easily conveyed to the general public, widening the gap in understanding between citizens and governments/corporations.
Nevertheless, if we continue on this path, global warming will only accelerate. As European regulations are likely to tighten further, Japan must establish its own policies and initiatives and actively promote them globally.
Will business opportunities for carbon neutrality emerge from late 2023 to 2024?
Q. Can carbon neutrality become a new business opportunity for companies? Or is it difficult to create opportunities unless consumer awareness changes?
Hayashi: While consumers are certainly important, they aren't the only partners for companies in advancing carbon neutrality. It's crucial to collaborate with all stakeholders—including shareholders, financial institutions, government agencies, employees, and NPOs—to move forward.
If business opportunities are to emerge from the circumstances surrounding consumers, I believe it will likely be from the latter half of 2023 into the following year. Around that time, an interim report called the Global Stocktake is expected to be released. This report will assess the progress made on the commitments under the Paris Agreement, based on reports from the Intergovernmental Panel on Climate Change (IPCC) and other sources. Depending on the content of this report, I anticipate a shift in the prevailing global sentiment. Discussions between nations, government decisions, and corporate actions will enter a new phase. Coupled with this shift in the global atmosphere, I believe consumers' sense of crisis will also intensify.
Q. The "Consumer Survey on Carbon Neutrality" has now reached its 10th iteration, a significant milestone. Are there any perspectives you'd like to explore more deeply in future surveys?
Hayashi: Until now, the survey has primarily focused on a macro perspective, examining broader consumer awareness, including carbon neutrality recognition rates. Going forward, we want to move closer to consumers and investigate what motivates each individual to engage with carbon neutrality.
Currently, while companies are communicating the facts, many are struggling with how to deliver impactful information that can actually drive behavioral change among consumers. As a company skilled in communication, we want to leverage our diverse insights to explore how these facts can be translated to resonate more effectively with consumers.
While this survey revealed areas where understanding of carbon neutrality remains limited, we are not pessimistic, thinking "that's why carbon neutrality isn't progressing." If the bottleneck lies in consumer understanding, we believe we can overcome it by identifying the obstacles and addressing them. Rather than needlessly stoking alarm, we think more people will actively commit to carbon neutrality if they feel, "This situation is problematic, but with the right efforts, we can make a difference."
This survey shows that amid persistent price hikes, the additional cost burden from carbon neutrality is becoming increasingly difficult for consumers to tolerate. Nevertheless, considering the future of the planet and humanity, we must advance carbon neutrality. Companies must engage in careful communication with end-users and promote initiatives that encourage consumers themselves to consider how they can participate.
The information published at this time is as follows.
Since joining the company, I have been in the marketing field, primarily working in the areas of government, public affairs, and social issues. I am also a member of Team Dentsu SDGs.
