Embracing Sustainability: A Crucial Shift in Consumer Behavior
Following the recent COP26 summit and in anticipation of COP27, the global spotlight on environmental issues continues to intensify. Governments, brands, and activists are leading public campaigns to raise awareness and drive action on climate change.
This heightened awareness is significantly influencing consumer behavior, impacting where they choose to shop and how much they are willing to spend. It is now more important than ever for businesses of all sizes, from large corporations to microenterprises, to prioritize sustainability practices.
The growing emphasis on addressing the urgent challenge of climate change is reshaping various facets of our lives, particularly commerce. Consumers are increasingly prioritizing shopping from sustainable and ethical brands, even amidst a cost of living crisis.
Recent research conducted by GoDaddy has revealed that 58% of consumers are more inclined to support small businesses with strong sustainability credentials. Additionally, 50% have actively made an effort to patronize small, sustainable businesses over the past year.
Challenges Faced by Microbusinesses
GoDaddy is committed to supporting microbusinesses in integrating sustainability into their operations to drive growth. Through our interactions with microbusiness owners, we have identified several challenges they encounter when it comes to sustainability.
Firstly, many microbusinesses lack the expertise needed to implement sustainable business practices effectively, making the development of a sustainability strategy daunting.
Secondly, the financial aspect poses a hurdle as transitioning to environmentally friendly suppliers and sustainable packaging can impact revenue. Microbusiness owners often face the dilemma of potentially losing customers to cheaper competitors if they raise prices to cover sustainability costs.
Lastly, many microbusinesses operate in spaces that are not entirely under their control, such as shared office spaces or client premises. This limits their ability to implement sustainable changes in their working environments.
The Business Case for Sustainability
Despite the challenges, embracing sustainability offers long-term benefits for microbusinesses. With 30% of consumers expressing their intention to exclusively support sustainable businesses in the future, investing in sustainability now can lead to increased customer loyalty and profitability down the line.
Small businesses often find themselves competing against larger enterprises with more resources. By adopting sustainable practices, smaller businesses can differentiate themselves in the market. Our research indicates that 42% of consumers are more likely to choose a small retailer over a larger, cheaper competitor if the small retailer demonstrates strong sustainability credentials.
As expectations for corporate responsibility rise, transparency and sustainability have become essential for businesses of all sizes. Microbusinesses have a unique opportunity to embed sustainable practices from the outset, setting themselves apart in the marketplace.
Empowering Entrepreneurs for a Sustainable Future
At GoDaddy, our mission is to empower entrepreneurs worldwide and create more inclusive opportunities for microbusiness owners. We understand the evolving needs of our customers and are dedicated to supporting them in adapting to changes.
We are proud to collaborate with remarkable entrepreneurs like Hannah Mills MBE, the most successful female Olympic sailor. Hannah’s initiative, The Big Plastic Pledge, aims to eliminate single-use plastics in sports through simple solutions, which has now extended its impact to small businesses. Together with Hannah, we have developed a micro-business toolkit to help entrepreneurs embrace sustainability and build a plastic-free future.
By integrating sustainability into their operations, small businesses can reduce their environmental footprint, operate ethically, and mitigate risks effectively. In addition to benefiting the environment, they also open themselves up to a larger customer base and increased revenue.
Commitment to a Sustainable Future
At GoDaddy, we recognize our global responsibility and are committed to reducing our greenhouse gas emissions. We have set a target to decrease our scope 1 and 2 emissions by at least 50% by 2025, with ongoing efforts towards a more sustainable future.
Learn More about Sustainability
Discover why 2 million small businesses believe that reducing their carbon footprint can make a difference in combating climate change.