Building Consumer Trust in the Energy Market
2016 Energy Trust Barometer
State of Trust in UK Energy
3
63
51
31
28
28
12
46
43
14
22
30
6
Trust Matters.Percent who engage in each behavior based on trust
Behaviors for Distrusted Companies Behaviors for Trusted Companies
Refused to buy products/services
Criticized companies
Paid more than wanted
Shared negative opinions
Disagreed with others
Chose to buy products/services
Recommended them to a friend/colleague
Paid more
Shared positive opinions
Defended company
Bought shares
General Population
Source: 2016 Edelman Trust Barometer Q371-589. Thinking back over the past 12 months, have you taken any of the following actions in relation to companies that you trust? Please answer yes or no to each action. General Population, U.K., question asked of half the sample. Q377-380. Still thinking about the past 12 months, have you taken any of the following actions in relation to companies that you do not trust? Please answer yes or no to each action. General Population, U.K., question asked of half the sample.
most trusted content creators: #1
Friends and Family
most trusted media source: #1
Traditional Media
Bought shares
Industry 2012 2013 2014 2015 20165 yr.
Trend
Technology 71% 71% 74% 72% 69% 2
Food & Beverage 64% 68% 70% 68% 64% 0
Consumer Packaged Goods 55% 61% 63% 63% 59% 4
Telecommunications 51% 57% 57% 56% 52% 1
Pharmaceutical 49% 50% 52% 50% 47% 2
Automotive 55% 61% 64% 63% 45% 10
Energy 29% 37% 31% 37% 43% 14
Financial Services 29% 35% 37% 36% 41% 1220%
30%
40%
50%
60%
70%
80%
Source: 2016 Edelman Trust Barometer Q45-429. Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same nine-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population, U.K.
*From 2012-2014, Pharma included as subsector(Q61f-65f). **From 2012-2015, Pharma included as an industry sector (Q43-60). 2012-2014 data recalibrated as a sector.
2012 2013 2014 2015 2016
General Population
4
UK Energy Sector Trust Weak Trust in each industry sector, 2012-2016
Sector Trends:
48 Colombia48 Germany48 Japan47 S. Korea46 Australia46 S. Africa45 Ireland44 Argentina44 Poland43 Spain42 Turkey40 U.K.38 Sweden34 Brazil19 Russia
79 China77 UAE 75 India66 Indonesia65 Malaysia64 Singapore63 Hong Kong
56 Canada56 Mexico55 Italy53 France53 U.S.50 Netherlands
Utilities Trust:UK Utilities among Least Trusted GloballyTrust in the utilities subsector, General Population vs. Mass Population, 2016
Only 1 in 4 countries are trusters among
both the General and Mass Population
Source: 2016 Edelman Trust Barometer Q61C-65C. Now thinking about specific sectors within the energy industry, please indicate how much you trust businesses in each of the following sectors to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust), question asked of one-fifth the sample. General Population and Mass Population, 28-country global total.
51 Global
5
Trusters
Neutrals
Distrusters
53 Global83 China78 UAE 75 India67 Malaysia66 Indonesia65 Singapore63 Hong Kong
49 Colombia48 Australia47 Germany47 S. Africa46 Japan46 Poland45 Ireland45 Spain42 Argentina42 Turkey41 U.K.38 Sweden35 Brazil19 Russia
59 Italy57 Mexico56 Canada56 U.S.54 France50 Netherlands50 S. Korea
GeneralPopulation
MassPopulation
6
Informed 51 62 63 46 54 59 58 43 60 40Mass 42 54 55 38 49 54 53 38 57 44
Gap 9 8 8 8 5 5 5 5 3 -4
Gap5-91-4
0Below 0
Trust in energy sector, Informed Public vs. Mass Population
UK has Big Trust Disparity
Source: 2016 Edelman Trust Barometer. Q45-429. Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Public and Mass Population, across European countries.
Fran
ce
U.K
.
Spa
in
Ger
man
y
Irela
nd
Rus
sia
Pol
and
Italy
Net
herla
nds
Sw
eden
7
2013 2014 2015 201620%
30%
40%
50%
60%
70%
Sub-sectors 2013 2014 2015 20164 yr.
Trend
**Cleantech 60% 58% 62% 61% 1
Natural Gas 47% 42% 49% 48% 1
Mining - 45% - 47% -
Utilities 40% 35% - 41% 1
Oil 39% 39% 41% 38% 1
Pipelines - - 46% - -
Nuclear - - 42% - -
Industry Sub-sectors:UK Utilities Trust Off the Lows
Source: 2016 Edelman Trust Barometer Q61C-65C. Now thinking about specific sectors within the energy industry, please indicate how much you trust businesses in each of the following sectors to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal.” General Population, U.K., question asked of one-fifth the sample.**Asked as Renewables before 2015
General Population
Percent trust in various industry sub-sectors, 2013 - 2016
An Opportunity for Business
9
6357
51 48
67 6357
51
6369
62
47
51 48 45 41
55 53 4842
5561
56
41
NGOs Business Media Government
Business Most Trusted to Keep PacePercent trust, 2015 and 2016, and percent who trust each institution to keep up with the changing times, 2016
Informed Public
General Population
Trust2016
Trusted to keep pace
Source: 2016 Edelman Trust Barometer Q11-14. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale, where one means that you “do not trust them at all” and nine means that you “trust them a great deal.” (Top 4 Box, Trust), Informed Public and General Population, 27-country global total. Q441-444 Below is a list of institutions. For each one, please indicate how much you trust that institution to keep up with the changing times using a 9-point scale where one means that you “do not trust them at all to keep up with change” and nine means that you “trust them a great deal to keep up with change”. (Top 4 Box, Trust) Informed Public and General Population, 28-country global total.
Business in the lead
Trust2015
10
Purpose Builds TrustPercent who cite each as a reason for why their trust in business has increased or decreased
Source: 2016 Edelman Trust Barometer Q328-329. For which of the following reasons, if any, has your trust in each institution listed below increased over the past year? Q330-331. For which of the following reasons, if any, has your trust in each institution listed below decreased over the past year? General Population, 28-country global total.
Reasons Trust in Business Has Increased
Reasons Trust in Business Has Decreased
Produces economic growth
Contributes to the greater good
Allows me to be a productive member of society
Fails to contribute to the greater good
Lacks economic growth
No public services
59%
45%
40%
50%
39%
36%
General Population
Trust-Building Behaviors:Largest Gaps For U.K. Energy in Transparency, Leadership and Data Importance vs. performance of behavior in building trust in a company, in the U.K.
% Performanc
e
% Importance Gap
General Population
11
Source: 2016 Edelman Trust Barometer. Q335-440 How important is each of the following behaviors to building your TRUST in a company? Use a 9-point scale where one means that behavior is “not at all important to building your trust” and nine means it is “extremely important to building your trust” in a company. (Top 4 Box, Importance) Q346A-J How well do you think the energy industry is performing on the behaviors listed below. Use a 9-point scale where one means they are “performing extremely poorly” and nine means they are “performing extremely well”. (Top 4 Box, Performing) General Population, U.K.
Protects consumer data 87 61 26Ensures quality control 85 61 24Keeps me and my family safe 83 63 20Is transparent in reporting progress on company’s social responsibilities 78 49 29Makes my life easier 77 62 15Embraces sustainable business practices 78 54 24Has leadership that effectively represents the interests of all stakeholders 77 50 27Supports local charities and good causes 73 49 24Develops intellectual property 66 50 16Makes me feel connected to something bigger 59 47 12
12
Trust-Building Behaviors:
Tech Outperforms Where Energy ShouldGeneral Population
Source: 2016 Edelman Trust Barometer Q335-440. How important is each of the following factors to building your TRUST in a company? Use a 9-point scale where one means that action is “not at all important to building your trust” and nine means it is “extremely important to building your trust” in a company. (Top 4 Box, Trust) General Population, 28-country global total. Q344-348. How well do you think the [INSERT SECTOR BEING RATED] industry is performing on the behaviors listed below. Use a 9-point scale where one means they are “performing extremely poorly” and nine means they are “performing extremely well”. General Population, U.K.
Gap in importance of behaviors in building trust vs. percent who agree each industry is performing well against these behaviors, in the U.K.
Technology EnergyProtects consumer data 26 26Ensures quality control 15 24Keeps me and my family safe 20 20Is transparent in reporting progress on company’s social responsibilities 19 29Makes my life easier -1 15Embraces sustainable business practices 17 24Has leadership that effectively represents the interests of all stakeholders 17 27Supports local charities and good causes 18 24Develops intellectual property -6 16Makes me feel connected to something bigger -3 12AVERAGE GAP 12 22
13
50%
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rt
Compa
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hat I
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A compa
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A well
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lity
Electe
d officia
ls
Celebr
ities
Compa
nies I
don’t
use*
67 6153 46 39 46 40 34 30 26
7865 62 55 49 44 42 37 32 31
Every Voice Matters
Source: 2016 Edelman Trust Barometer Q598-609. Thinking about the information you consume, how much do you trust the information from each of the following authors or content creators? (Top 4 Box, Trust) General Population, 27-country global total, question asked of half the sample.
* Asked as “Brands I don’t use” in 2015.
Percent who trust information created by each author on social networking sites, content sharing sites and online-only information sources, 2015 vs. 2016
+11
General Population
+10
2015 2016
14
1519
10
1721
29
20 20
14
25
3128
3128
54
23 2327
1620
1720
14 12
27 2520
24 22 23
5 7 5 69
6
Employees Are Essential Advocates
Source: 2016 Edelman Trust Barometer Q610 Who do you trust MOST to provide you with credible and honest information about a company's financial earnings and operational performance, and top leadership’s accomplishments? Q611 A company’s business practices and handling of a crisis: Who do you trust MOST to provide you with credible and honest information about a company’s business practices, both positive and negative, and its handling of a crisis? Q612 Who do you trust MOST to provide you with credible and honest information about a company’s employee programs, benefits and working conditions, and how a company serves its customers and prioritizes customer needs ahead of company profits? Q613 Who do you trust MOST to provide you with credible and honest information about a company’s partnerships with NGOs and effort to address societal issues, including those to positively impact the local community? Q614 Who do you trust MOST to provide you with credible and honest information about a company’s innovation efforts and new product development? Q615 Who do you trust MOST to provide you with credible and honest information about a company’s stand on issues related to the industry in which it operates? General Population, U.K., question asked of half the sample.
Most trusted spokesperson to communicate each topic
Innovation effortsFinancial earnings & operational performance
Business practices/crisis handling
Treatment of employees/customer
Partnerships/Programs to address societal issues
Views on industry issues
Employees Most Trusted
General Population
Company CEO
Senior executive
Employee
Activist consumer
Academic
Media spokesperson
Source: 2016 Edelman Trust Barometer Q561-573 Thinking about businesses in your country, how important is it that they play a role in solving each of the following societal issues? Please use a nine-point scale where one means that it is “not at all important” and nine means that it is “extremely important”. (Top 4 Box, Importance) General Population, 28-country global total, question asked of one quarter the sample.
15
Connect to What Matters MostPercent who agree that each is an important issue for business to address
Improving access to education and training 84Addressing income inequality 83Reducing poverty 81Creating and maintaining a modern infrastructure 81Supporting human and civil rights 81Protecting and improving the environment 80Improving the access to healthcare 79Addressing climate change/global warming 74Addressing gender inequality 74Improving access to food, potable water and housing 73Maintaining geo-political stability 69Developing better solutions for immigrants, refugees and migrant workers 62
Five Takeaways
16
Trust
UK Energy Trust Low – But Past The Worst.
Advocacy
Find the Issues that Connect.
Actions
Transparency, Leadership and Purpose Build Trust.
Values
Solve Problems When Government Can’t.
Engagement
The Mass Population Matters More Than Ever.