Staying Ahead of the Challenges of Sustainable Consumption Local and International Perspectives

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1 Staying Ahead of the Challenges of Sustainable Consumption Local and International Perspectives Prashant Vaze, Chief Planning and Trade Practices Officer HKQAA Symposium May

2 1. About the Council 2. The Sustainable Consumption Challenge 3. Consumer Views 4. The Way Ahead 2

3 About the Council

4 Established in April 1974 Mostly funded by the Government The Consumer Council Ordinance Cap. 216 enacted in 1977 No commercial sponsorship/advertising Donation is subject to government approval 4

5 Functions of Council Collect, receive & disseminate information on products & services Conduct studies & advocacy campaign Be the Trusted Voice for CONSUMERS Handle complaints & give advice to consumers Establish code of practice with business sectors Present views to Govt policies of interests to consumers 5

6 Vision Council s Role & Objectives Be the trusted voice in striving for consumer betterment towards safe and sustainable consumption in a fair & just market Mission Act as advocate for consumer interests Facilitate constructive discussion & promulgation of pro-consumer policies See to empower consumers to help themselves

7 UN Definition of Sustainable Consumption & Production (SCP) SCP is a holistic approach to minimizing the negative environmental impacts from consumption & production systems while promoting quality of life for ALL Key Principles Improving quality of life without increasing negative environmental impact Decoupling economic growth from environmental degradation Applying life-cycle thinking Guarding against re-bound effect Our VISION Be the trusted voice in striving for consumer betterment towards safe & sustainable consumption in fair and just market 7

8 The Sustainable Consumption Challenge

9 Environment, Economy and Consumption Environment Renewable resources: timber, fresh water Nonrenewable resources: fossil fuels & metal ores Economy Production Consumption Land use changes: loss biodiversity Solid waste: filling of landfill sites Air emission: air quality & climate change Water pollution: poor water quality Source: based on System of Economic and Environment Accounting manual Figure

10 Climate change: CO 2 emissions Tonnes/ capita Carbon Dioxide Emissions in China Hong Kong Japan Singapore South Korea UK USA But given our warm climate (little heat need) and high population density (low personal transport needs), and sector mix HK s emissions are disappointingly high!! 10

11 HK s generation of wastes Kg/capita/day 3.00 Municipal Solid Waste Generation China Hong Kong Japan Singapore South Korea UK USA MSW production in HK: higher than our neighboring cities with comparable economy HK people produces 3,648 tonnes food waste daily Source: WHAT A WASTE - A Global Review of Solid Waste Management by the World Bank (2012) Source: Hong Kong Blueprint for Sustainable Use of Resources, The Environment Bureau

12 HK consumption of fish World Rank Country/region Fish consumption per capita (kg) 1 Maldives Hong Kong Korea Japan Singapore China Australia Canada US UK 19 HK is world s 7 th largest per capita consumer of fish based on FAO (2011) 12

13 Consumer Awareness & Attitude

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17 Study Methodology Questionnaire Survey telephone interviews conducted: attitudes, behaviour and purchasing 2. Cantonese-speaking Hong Kong people aged 15 to 64 Focus Group Discussions 1. 3 focus group discussions conducted 2. Cantonese-speaking Hong Kong people aged 15 to In-depth analysis on issues related to the Study enabled Sustainable Consumption Index 17

18 38% Concerned over the Environment 39% Concerned Impact of their Consumption on the Environment Young & medium age groups are more concerned the environment % Higher income group thought their consumption had bigger impact [ 值 ] 24 0 Very concerned/concerned Concerned a Little/not concerned at all

19 Strong consumers intuitive understanding of SC Stronger support for issues they face everyday Remote issues e.g. fair trade, animal welfares less concerned 19

20 Higher support Purchase / behaviour which save money (e.g. buy energy-efficient appliances, 78%) Credible information Simple to execute Lower support More expensive Require behaviour/ lifestyle change Take more effort/ planning 20

21 Behaviour practised more Less practised for those require more efforts Rooms to intensify SC behaviour 21

22 Benefits & Effectiveness Convenience to support actions Need Help to Convert Belief into Action 22

23 Conservation Behaviour Conserve water Pack uneaten food Recycle recyclable Older people although less concerned with the environment, more likely to recycle & pack uneaten food than younger one 23

24 2/3 Respondents keen to know more about product hidden attributes 24

25 Recycling behaviour: Do you recycle following materials? Paper 53.3% usually/always 24.7% sometimes 22.0% seldom/never Metal 33.4% usually/always 24.9% sometimes 41.7% seldom/never Plastic 48.2% usually/always 25.3% sometimes 26.5% seldom/never Glass 27.5% usually/always 22.0% sometimes 50.5% seldom/never 25

26 75% Large Majority prepared to pay price premium for more sustainable products Most true for consumers earning >$20,000 Least true of older & retired consumers 26

27 ½ Respondents usually purchased sustainable goods Except for younger consumers - they claimed they would pay more but LESS action taken 27

28 Top 3 Reasons for Action Environment protection (69%) Energy conservation (66%) Future generation (49%) 28

29 Top 3 Reasons for No Action Not enough info (56%) Too expensive (44%) Not easy to acquire (43%) Supply-side Factors

30 High proportion of respondents are prepared to support SC, BUT require More information Government to drive In line with lifestyle 30

31 Way Forward 31

32 Key Consumer Organisation Activities Internationally Building Energy Efficiency and Appliance Energy Efficiency and Lighting Sustainability of Food Recycle and Waste Green Lifestyle Environmental Certification * Future Focus of Consumer Council

33 Consumers Challenges for Citizen Responsibility: Make themselves informed of consumption impact on environment Take Action: Make purchases & take actions consistent with beliefs Lifestyle Change: Not merely simple & minor changes but take on more challenging changes

34 Consumer Council Challenges for Behaviour Change: Use communication channels to influence & educate SC behaviour of consumers International Coordination: Engage with consumer organisations to monitor global measures & to explore collaboration Communicate Consumer Viewpoint: Understand consumer priorities & concerns on SC issues & feed into stakeholders Alignment: Play as a partner to work jointly, or to support initiatives

35 Government Challenges for Synchronised Action: Require close actions amongst bureaux & statutory bodies Effective Planning: Scale up efforts in collecting, analysing & disclosing data Waste Disposal Infrastructure: Enable more easy deposit & collection of recyclable waste Targeted Product Charges or Subsidies: Influence consumer purchases through carefully targeted product charges or subsidies to drive SC choices Incentivizing More Energy-Efficient Purchases: Consider incentive or support schemes to encourage take-up of energy-efficient products School Curriculum: Encourage experiential learning & provision of information

36 Business Challenges for Sustainability Performance of Products: Provide high-quality, pertinent & trustworthy information; use of sustainability certification schemes Anticipation of Consumer Demand: Take proactive action to bring sustainable products to local market ESG reporting: Improve quality & level of disclosure to provide meaningful data on business performance

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