Sustainability without customer involvement? A blind spot in ESG efforts

ESG efforts are often driven by legal regulation – but the customers are left out

For many companies, ESG is primarily about complying with regulations such as the CSRD. As a result, their focus tends to be on internal processes, CO₂ footprint reduction, and compliance—rarely on understanding or addressing customers’ needs and behaviors.

 

Customers are often excluded from ESG strategies because: 

1. Their behavior is inconsistent and difficult to manage
   Consumers frequently say one thing and do another. While they may express a desire for sustainable solutions, they often choose the cheapest, most convenient, or most familiar option instead.
   For example, our analyses show that pension customers want green investments—but not if it compromises their returns, particularly as they approach their retirement age. Similarly, many homeowners express a desire to renovate their homes for energy efficiency but ultimately prioritize new kitchens or other improvements instead.
   In general, many consumers operate with a kind of “compensation logic,” where sustainable behaviors like recycling justify less sustainable choices like taking long-haul flights.
2. Insights can be difficult to act on
   What happens if customers demand sustainability standards that a company cannot—or does not wish to—meet?
   Suppose an analysis reveals that customers expect 100% fossil-free energy supply or completely plastic-free packaging—how should a company respond?
   According to our research, Danes overwhelmingly believe that responsibility for sustainable development lies with businesses and politicians, not consumers. This fear of unrealistic expectations can discourage companies from involving customers in their ESG work.
3. It’s not a regulatory requirement
   Current ESG reporting requirements primarily focus on companies’ own sustainability efforts—not how they engage customers. Consequently, internal initiatives and compliance are prioritized, while customer and consumer engagement remains a blind spot.

 

The solution: Moving from good intentions to real action

Despite the challenges, our experience shows that involving customers pays off. It makes ESG work more relevant, strengthens reporting, and ultimately creates stronger, more credible companies.

Here are three crucial steps companies can take to better integrate the customer and user perspective into their ESG efforts:

1. Understand the real behavior gap
   Data and insights into actual consumer behavior—not just attitudes—are essential. Our work with organizations like Modstrøm and the Copenhagen Institute for Futures Studies shows how companies can map the gap between what people say and what they actually do. We’ve also highlighted why proximity and visibility are key to encouraging sustainable consumer choices.
2. Create ESG reports that reflect reality and enhance reputation
   Many ESG reports focus narrowly on internal efforts and measurable goals. However, without understanding actual consumer behavior, these reports risk offering a misleading picture of real-world impact. At Epinion, we draw on our expertise in sustainability research to help companies identify hidden blind spots and deliver ESG reporting that is more complete, realistic, and actionable. This not only improves external reputation but also strengthens employer branding.
3. Design sustainable choices to feel like the default
   When sustainability becomes the easy choice, behavior changes naturally. Our work with behavioral design has shown how companies can meet consumers where they are—not where we wish they were.

 

Is your ESG strategy and reporting based on real-world behavior?

A sustainable transformation can only succeed if it includes the people who will live with it. By combining behavioral insights with strategic ESG work, companies can create solutions that people actually use—and ensure that ESG reporting becomes more accurate, credible, and action-driven.

Would you like to ensure that your ESG strategy is not just well-intentioned but actually effective—and properly documented? Let’s talk about how we can help.