1. Climate change: Consumers’ views
Jonathan Banks
Business Insight Director
April 18, 2007

2. Agenda Global consumer worries Great Britain concerns attitudes
behaviour

3. What is your biggest concern over the next 6 months?
Source: ACNielsen – Global Online Survey Nov 2006
Global results

4. What is your biggest concern over the next 6 months?
Note change on y axis scaling – and concerns in different order
More concerned about terrorism have to be less concerned about other things….
Shown in UK rank order.
UK debt levels
At the end of February 2006 the total UK personal debt was £1,174bn. The growth rate remains strong at 10.3% for the previous 12 months which equates to an increase of £100bn.
Total secured lending on homes in February 2006 was £981.8bn. This has increased 10.6% in the last 12 months.
Total consumer credit lending to individuals in February 2006 was £192.6bn. This has increased 8.7% in the last 12 months.
Total lending in February 2006 grew by £9.5bn. Secured lending grew by £8.1bn in the month and consumer credit lending grew by £1.4bn in the month.
Average household debt in the UK is approximately £7,796 (excluding mortgages) and £47,546 including mortgages.  Average owed by every UK adult is approximately £25,195 (including mortgages). This grew by ~ £200 last month.
Average consumer borrowing via credit cards, motor and retail finance deals, overdrafts and unsecured personal loans has risen to £4,131 per average UK adult at the end of February This has grown 52% in 5 years.
Britain's personal debt is increasing by ~ £1 million every four minutes.
Source: ACNielsen – Global Online Survey Nov 2006
UK results

5. Global Warming is my biggest/second biggest concern Top 20 countries
US = 26
Males report that they have heard or read something about the issue of global warming as much or more than females in 21 of these 24 selected countries (the exceptions are Thailand, India and United Arab Emirates)
Females express global warming as biggest/second biggest concern as much or more than males 67% of the time (32 of 48 cases)
Males attribute causes of global warming to ‘natural changes’ slightly more frequently than females, in these selected countries
People in their 30s and 40s in these countries were least often the ages groups who considered global warming as biggest/second biggest concern over the next 6 months (evident in 7 of 48 cases, or 15%)
People in their teens and 20s appeared to be the least informed about the issue of global warming in these selected countries.
People over the age of 40 most frequently stated ‘natural changes’ as the cause of global warming in these countries (12.5%; the exceptions were Japan, Korea and Thailand)
While respondents under 20 in Japan are the group who express most concern over global warming in the next 6 months, they are also the group least informed about it (61% have heard or read about it), or misinformed (see bullet point above). This draws attention to both the apparent opportunity and need to reach younger Japanese with accurate information on climate change.
The two countries in Phase I of Kyoto Protocol who have not ratified – Australia and United States – do not show evidence that their populations are least concened; Australians actually had the highest percentage of people who expressed global warming as their biggest/second biggest concern
Bottom countries:
China, South Korea, Czech, Lithuania, Poland, Russia, Hungary
Source: Nielsen Global Online Survey November 2006

6. Source: Nielsen Global Online Survey November 2006
Consumer Confidence Index: a large spread 100 = neutral; Global Average = 99; India 137; USA 108
Calculated on responses to:
Do you think job prospects in the next 12 months will be:
Do you think the state of your own personal finances in the next year will be:
Considering the cost of things today and your own personal finances, would you say at this moment the time to buy things you want and need is:
excellent (200), good (133), not so good (67), bad (0)
Excellent 200
Good 133.3
Not so good 66.6
Bad 0
Portugal: Very high rates of loans, specially for buy house, with the interest rising every month. But consumer loans are also increasing
Unemployment rates raising
Production flat
Factories closing and going to Eastern Europe,…
Government asking for  sacrifices. Small salaries compared with rest of Western Europe, and increases lower than the inflation rate
Few expectations for change the down cycle, although things are becoming a little better than 1 or 2 years ago.
Source: Nielsen Global Online Survey November 2006

7. Mostly up, most move slowly – some exceptions!
Our persoanl finances seem to need to be in resonably good order Portugal:Hi Jonathan, Nice to ear from you.   Yes, I have seen this numbers in the past and they seem correct, we are in a down cycle, due to: -          Very high rates of loans, specially for buy house, with the interest rising every month. But consumer loans are also increasing -          Unemployment rates raising -          Production flat -          Factories closing and going to Eastern Europe,… -          Government asking for  sacrifices. Small salaries compared with rest of Western Europe, and increases lower than the inflation rate -          Few expectations for change the down cycle, although things are becoming a little better than 1 or 2 years ago.   Only football is helping now Hopes it helps, António
Source: Nielsen Global Online Survey November 2006

8. Source: Nielsen Global Online Survey November 2006
No correlation between consumer confidence and concern re climate change
high confidence
high global warming concern
140
high confidence
low global warming concern 0%
15%
Explain R squared
Cross hairs = global total: Cons conf 99, global warming 7% 50
low confidence
low global warming concern
low confidence
high global warming concern
Source: Nielsen Global Online Survey November 2006
Cross hairs = global total: Cons conf 99, global warming 7%

9. Do you think global warming is:
Aware of the issue: 96% % % % % %
QF1. Have you heard or read anything about the issue of global warming?
Source: Nielsen Global Online Survey November 2006
Base: Those respondents who are aware of the issue of global warming

10. Source: Nielsen Global Online Survey November 2006
From what you have heard or read about global warming, what do you think is causing it?
Source: Nielsen Global Online Survey November 2006
Base: Those respondents who are aware of the issue of global warming

11. A very serious problem? Caused by human activities?
caused by human activity 60
not very serious
caused by human activity 20 90
Base: Those respondents who have heard/ read anything about the issue of global warming, 23755/25408: Do you think global warming is... A very serious problem, A fairly serious problem, Not a serious problem, Not a very serious problem, Not at all a serious problem, Not sure.
QF3. From what you have heard or read about global warming, what do you think is causing it? Human activities like driving cars and burning fuel, Natural changes in the climate, Both, Don’t know 30
not very serious
not caused by human activity
serious problem
not caused by human activity
Source: Nielsen Global Online Survey November 2006
Cross hairs = global total: very serious problem 57% caused by human activity 50%

12. Consumer confusion “Salad options are less fattening”
“Organic is better for me”
“Organic pollutes the environment less”
“Organic production = lower carbon emissions”
“GM is bad for me”
“Nanotechnology is dangerous”
“Banning ads to kids will reduce obesity”
“I’m too busy to eat/exercise properly”
“Vegetarian options are healthier”
“I need to eat more fruit and veg, but:
an apple contains 4 tsp of sugar
a third of all produce contains pesticide residue
the fruit looks unappetising”
“If it’s cheap it must be rubbish”
“Moving food half-way round the world is wrong”
“Fair trade can only be a good thing”
Presented in SotN
Carbon emissions from NZ produced lamb/dairy lower than UK local.
Easy low production costs, shipping is very cheap and efficient way of moving things.
Flowers airfreighted from Africa to UK lower emissions than NL hot housed.
and it provides lots of employment (1m people) and export earnings.

13. Source: Nielsen Media Research
Retail advertising Whilst others changed their emphasis from price to quality, Tesco addressed sustainability...
Source: Nielsen Media Research

16. Which of these environment and related issues concerns you the most?
Source: Nielsen Homescan survey February 2007 – Great Britain

17. Climate change is the environmental issue that concerns me the most
Source: Nielsen Homescan survey February 2007 – Great Britain

18. Climate change is the environmental issue that concerns me the most
Source: Nielsen Homescan survey February 2007 – Great Britain

19. Climate change is the environmental issue that concerns me the most
North South
Source: Nielsen Homescan survey February 2007 – Great Britain

20. Organic is becoming a mainstream part of fresh and chilled categories, and still demonstrating strong growth.
% sales growth v 2005
+18%
24%
20%
21%
18%
12% 1%
11% 7%
+21%
Source: ACNielsen ScanTrack Grocery Multiples Total Store Read

21. “It’s worth paying extra for organic products”
The debate continues as to whether organic foods are worth a premium price. As an additional 500,000 people have decided they have a preference for natural foods, the same number have also decided Organic products are too expensive.
“It’s worth paying extra for organic products”
Source: ACNielsen Homescan Survey

22. Fairtrade publicity has been successful as 86% of people now claim to know what Fairtrade products are. However, we see less inclination from people to buy them and a general, though improving, perception that they are too expensive.
% respondents that agree
Source: ACNielsen Homescan Survey
October 2006 vs. November 2005

23. “I prefer to buy Fairtrade products”
Waitrose, Co-op and Sainsbury have high proportion of main shoppers that prefer Fairtrade.
“I prefer to buy Fairtrade products”
% respondents who “agree strongly” Indexed on All Households
Glass half full or half empty elsewhere? Fish where the fish are? Or target ASDA’s shoppers? Tesco sheer numbers mean they’ll have more in absolute terms
Source : ACNielsen Homescan Survey October 2006

24. Summary UK consumer (financial) confidence levels neutral
UK environmental concern:
low in absolute terms
but relatively high
No correlation between confidence and concern for environment
16-24s now expressing highest levels of concern
No major demographic skews (E’s lowest)
No great regional skews (TyneTees and SouthWest lowest)
Fairtrade and Organic continue to grow
but don’t always justify their premium
Waitrose, Co-op and JS main shoppers over-index