Step up, speak out: What consumers want from boards on climate and sustainability

They say the only constant is change – and 2025 is certainly proof. The latest Better Futures report from Kantar, in partnership with the Sustainable Business Council, offers clear signals for boards navigating climate, cost of living and trust challenges.

Now in its 16th year, Better Futures highlights what social and environmental issues really matter to consumers and delivers critical insights for directors operating in an increasingly dynamic and uncertain environment.

This year’s launch acknowledged the complex landscape that businesses must navigate – a true polycrisis. That includes the politicisation of sustainability, the rising cost of living, significant youth emigration, and the surpassing of global temperature thresholds beyond 1.5 degrees Celsius. These forces have created an uncertain operating environment for business – one that requires boards to prioritise climate change alongside other pressing issues.

Understanding what matters to New Zealanders is more important than ever. And the report shows that, despite these pressures, consumers continue to hold the line on sustainability.

What consumers care about

New Zealanders have maintained consistent attitudes towards environmental and social concerns, including climate change. Many believe they can make a difference and are prepared to invest time and money to support companies that do good. Directors can capitalise on this by ensuring their organisations meaningfully engage stakeholders and act on climate risk.

Social issues continue to dominate the top of the Better Futures rankings – the cost of living, access to affordable healthcare, protection of children from abuse, mental health and the impact of social media all rank high.

This is a timely reminder that climate change does not exist in a vacuum. It both influences – and is influenced by – broader social issues. Environmental concerns also remain high, with waste management, pollution, microplastics and conservation sitting alongside climate action in the minds of New Zealanders.

The public continues to expect businesses to step up and take responsibility for their environmental and social impacts. But short-termism won’t cut it. Better Futures reveals many consumers worry that businesses engage in these issues solely for commercial reasons – and find the way they communicate their commitments confusing and sometimes dishonest.

Directors have a key role in ensuring the strategic commitment of their organisation to managing climate risk is genuine, and that progress, not just perfection, is reflected in the organisation’s narrative.

People v planet

Unlike their own household behaviour, consumers tend to judge businesses more by their social behaviour than their environmental record. This is particularly true among younger New Zealanders, who assign equal importance to both environmental and social responsibility when evaluating a business.

For directors, this means recognising that meaningful action on both fronts is essential, with authenticity being key to ensuring these actions are credible and genuine.

A business’s desire to keep up with competitors can accelerate sustainability momentum. Better Futures evaluates 20 major New Zealand brands on sustainability performance and finds transparency and advocacy are more effective than promotional messaging. Speaking up on social and environmental issues – and being open about challenges as well as progress – builds trust.

Boards can leverage this dynamic. A proactive, transparent approach to climate and sustainability can enhance brand perception and inspire internal change. And the ‘keeping up with the Joneses’ effect can be a useful tool to push further than competitors.

Authenticity and advocacy

Hippocrates had it right – first, do no harm. To improve performance on sustainability issues, businesses should focus first on minimising social and environmental harm. Consumers expect companies to help manage the cost of living and make a meaningful contribution to relevant social impact issues.

They also expect organisations to speak out. Better Futures confirms that people want businesses to take an active voice, especially on climate change. Boards must respond to this call. Leading from the front means showing the public what good looks like.

What directors must do next

Better Futures is the sustainability pulse check for Aotearoa. Understanding consumer concerns, attitudes and expectations is crucial to ensuring businesses stay relevant.

By taking meaningful and authentic action on environmental and social fronts, directors can support their businesses to navigate the future successfully. The key is to be proactive, transparent and aligned with consumer values.

The commercial implications of these insights are significant. Directors must lead with a clear vision and commitment to sustainability, ensuring their strategies resonate with the evolving expectations of consumers and contribute to a net-zero future for Aotearoa.