The Times, September 2010
There has been a massive shift in the number of consumers who think that the energy sector is doing enough to address environmental issues. 40% now think this is the case. In 2008, just 17% agreed. This is a question we ask of all sectors, and it is by far the biggest leap we have seen in any. Nearly all of the main energy brands have also seen a substantive upward lift in consumer rankings. None more so than once reviled British Gas. Overall impressions of the company on a scale of 1 to 100 are now pushing the half way mark at 49. This is a nine point rise in two years.
It is rare to see such substantive change in opinion over two years in any area. So what’s going on? Has the sector’s environmental activity really had such a dramatic impact? Well, yes and no.
The sector has launched a series of successful initiatives, and these have had an impact. But we need to look at the sector’s environmental performance within a broader context.
Back in 2008 most energy companies had increased domestic bills by between 10% and 15%. Customer service was in disarray – an Energywatch survey found that 97% of customers were dissatisfied with the response to their complaints. The sector was seen to be failing on its core business objectives and its reputation was at a low ebb.
Fast forward to 2010 and things are different. Energy prices have fallen over the past year – in some cases by up to a fifth. And while things are far from perfect, customer service has undergone a marked improvement.
It’s no coincidence that the rise in environmental rankings has come alongside this turnaround. Perceptions of how well companies are delivering their core services influences the way consumers feel about anything they might be doing on the environmental social front. Getting the core right has to come first.
But the influence on perception can go both ways. Once the fundamentals are in place, scoring with customers on the environmental front can bolster overall impressions of a company – and its overall place in consumers’ minds.
The energy sector currently has a real opportunity. The trust is there. As is the appetite for environmental action. Bold initiatives will ensure impressions of environmental performance keep rising. They’ll also help the reputation of the industry as a whole.
