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For True Progress, Sustainability Must Be Accessible to Everyone

25/07/2024
Advertising Agency
Madrid, Spain
185
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DDB Spain's Cristiana Zito says brands have an opportunity - or even an obligation - to make everyday sustainability more attainable and affordable

I'm not usually one to have breakfast out, but recently I visited a café in Barcelona that opened in my working-class neighbourhood. An espresso macchiato and a cinnamon roll, both to go (the only available option), cost me almost 8 euros. The specialty coffee alone was more than three euros—more than double what a "de toda la vida" (a Spanish expression for common, everyday things) coffee usually costs.

A specialty coffee has a certified origin and a manufacturing process that is more responsible towards people and the environment. It also meets much higher standards of quality and sustainability, so it's entirely logical and normal that we pay more for it. But more than double? How many people can really afford that?

To get an idea, I looked at the public data from the city council and discovered that the income in my neighbourhood is less than 19,000 euros per year, which means people can only spend 52 euros per day in all one needs, including food, rent, transportation, clothes, etcetera.

While this is, of course, an average, we can assume that something as simple, small, and common as choosing a more sustainable coffee and paying three euros for it is not an option available to everyone—and probably not even to many. 

I don't want to delve into the salary debate in Spain or the price of specialty coffee, but I would like to reflect on the cost of sustainability: how much it truly costs and how many can afford it.

Research indicates that people are increasingly concerned about sustainability and want access to products and services that help them adopt more responsible habits, even if it means paying a bit more. However, the reality is that many consumers are being forced to cut back on sustainable products, despite their willingness to embrace them, because they simply can’t afford it.

In Spain, inflation in 2022 and 2023 soared to levels not seen in 40 years, with food prices increasing by up to 17%. As a result, the market for organic products, which had been steadily growing for years, has now stalled.

Many consumers report having had to give up buying sustainable brands and products, and nearly half are unsure if they'll be able to afford them again in the future. Even more concerning, the rise in prices has led sustainable options to drop in people’s list of priorities.

According to a study by Kearney, sustainable products can cost 75-85% more than traditional ones, and organic products in Spain can be up to three times more expensive, according to the OCU (Spanish Consumer Association). This price difference is often more than most people can afford or are willing to pay. These higher costs are attributed to production expenses, certifications, and lower demand.

This situation creates a negative cycle: high prices limit demand, causing prices to remain high or even increase, which ultimately diminishes the social or environmental impact of sustainable products.

To generate a real impact, sustainable consumption must become a large-scale phenomenon; without this, it remains just a positive habit. It's the kind of progress that, as Henry Ford used to say, needs to be accessible to everyone to be considered real progress.

In Spain, discount supermarkets have played a decisive role in the spread of organic products by offering the lowest prices. Today, two out of the three leading chains in eco-friendly product sales are discount stores.

One out of four Aldi consumers incorporate eco-friendly products into their shopping baskets, a figure significantly above the market average. These consumers are more likely to remain loyal to eco-friendly products despite inflation, which has allowed Aldi to maintain its market share in this segment.

The company has consistently worked towards becoming more sustainable and helping its customers do the same. Over a year ago, DDB launched its sustainability platform with an awareness campaign about the dangers of food extinction due to climate change. They continue to increase product variety and ensure accessibility, demonstrating their commitment to a more sustainable future.

Democratisation of more eco-friendly products does not apply to the food industry only.

Shifting to a sector I know quite well, like the automotive industry, they have been advocating for the transition to electric mobility for years. Despite genuine interest from drivers, electric car registrations still represent only about 5% of the total market due to structural and price barriers. The best-selling electric car costs around 41,000 euros (including state discounts), whereas the market's top-selling car is priced at around 13,000 euros.

This captures much of the situation but perhaps not the entire picture. Purchasing an electric car remains a pioneering choice, primarily limited to a small, affluent segment of the population. Although prices of electric cars are declining, the proliferation of intermediate solutions, such as hybrid vehicles or renewable fuels—being launched en masse by energy companies like Repsol—becomes crucial. These solutions might not represent the ultimate goal of energy transition, but their accessibility to many could significantly impact the environment.

When we think of sustainability, it's essential to move beyond a 'black or white' perspective and explore pragmatic solutions that are inclusive. In the end, why not embrace populism in the positive sense of the word - championing solutions that benefit the broader population?

People want to do their part, but they also rightly look to governments and companies to shoulder this burden. This presents brands with an opportunity, or perhaps even an obligation, to make everyday sustainability more attainable and affordable for everyone—something as easy as enjoying a good cup of coffee.


Cristiana Zito is head of strategy at DDB Group Spain  

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