Unwillingness to Pay
Rethinking the Green Premium: How Trust, Not Price, Now Determines the Pace of Sustainability
Across Australia and New Zealand, consumers are sending an unambiguous message: sustainability is non-negotiable, but they no longer believe they should pay for it.
In a survey of 2,248 consumers, conducted by Stake and Palladium Insights, 65% of Australians and 63% of New Zealanders said businesses should absorb sustainability costs by reducing profits rather than passing them to customers. A further 74% of Australians and 66% of New Zealanders support government regulation if companies fail to act
These findings redefine the economics of sustainability. They show that the “green premium” model—charging consumers more for sustainable options—has reached the limits of public trust. What’s eroding is not interest, but belief.
The Sustainability Trust Crisis
Consumers’ environmental concern remains high. 77% of Australians and 79% of New Zealanders say they feel personal responsibility for sustainability. Yet only 43% and 38% respectively are willing to pay a higher price. Even here, average tolerance caps at 4–5%, and nearly half to three-quarters reject any premium altogether depending on the category.
The issue is structural: belief breaks at the point of purchase. When asked to trade off sustainability against price, taste, and quality, most consumers—except the most committed segment—rank sustainability outside their top fifty purchase factors.
The Credibility Deficit
Trust in business is uneven and often inverse to public expectations. Sectors such as energy and mining are viewed as most responsible for driving sustainability (80% and 79% respectively) but are trusted by only 19–21% of consumers. Even high-trust sectors like agriculture and healthcare score only 36–46%.
This creates what Stake calls a credibility risk premium: the additional effort, cost, and transparency required for firms in low-trust industries to maintain belief. In every sector, consumers expect business to internalise costs rather than externalise them through pricing.
Pricing for Proof
The research shows that willingness to pay more is largely symbolic. Across both countries, the median consumer’s maximum premium—around 4%—is insufficient to offset even modest cost increases. 47% of Australians and 55% of New Zealanders cite affordability as their main barrier. Yet 72% of indifferent consumers and 42% of resistors say they would reward businesses that reinvest profits into sustainability.
Trust, in other words, is conditional. It accrues not to messaging, but to fairness, transparency, and tangible evidence of change.
The Post-Trust Economy
The findings signal the emergence of a “post-trust economy,” in which belief is no longer granted through marketing but earned through design. Consumers expect systems that default to the right choice, pricing models that embed responsibility, and reporting that proves delivery over intent.
For business leaders, the strategic imperative is clear. The next phase of sustainability will be credibility-led, not purpose-led. Brands that treat trust as infrastructure—not reputation—will set the standard. Those that wait risk becoming structurally disadvantaged in a market that increasingly demands proof over promise.