EECA Consumer Monitor

1. EECA Research OverviewUnderstanding how consumers and businesses react to sustainability messages

2. EECA Consumer Monitor EECA’s Consumer Monitor is conducted via an online survey. Each week approximately 50 interviews are completed resulting in a quarterly sample size of n=763. Reporting is based on rolling monthly figures (12-month roll) to increase sample size per measure to around n=3,000, with a margin of error of ±1.8% at the 95% confidence interval.

3. Creating emotional commitment to using energy wisely delivers share of mind How do we get to the answer? • Tell me what your priorities are – what’s occupying your mind? • How much of a priority is each one really? • What are the things that stop you from giving as much attention to those priorities as you’d like?

4. ‘Using energy wisely’ has maintained its position as a middle tier attribute Q7a Now I’d like you to think about your life in general and the things that are important to you. Please tell us how much of a priority each of the following is to you, at this stage of your life… This quarter, those who feel using energy wisely is a core priority are significantly more likely to be aged 50-64 years old (20%), earn less than $50,000 pa (21%), while those who feel it is a priority they need to achieve are significantly more likely to be aged over 50 years old (34%). Top tier – mainly financial & family / home related Middle tier – more about me& my social needs Lower tier – things to think about if I have other things sorted! Base: All respondents n=594

5. Those ‘open to using energy wisely’ are still slowly moving into becoming ‘committed to using energy wisely’ ~ continuing trend Need to focus on targeting ‘ambivalents’ to make energy-efficient choices when faced with energy decisions in order to see a long-term shift

6. You’d be doing what you can to ensure we have enough resources in the future You’d feel you were doing your bit to save the planet You’d be setting a good example to your children / others You’d know you were doing the right thing (no need to feel guilty) You’d help preserve NZ’s image of being clean and green You’d have a consistently warm and comfortable home You would save money immediately You would save money in the longer term You’d feel more in control of your household spending The value of your house would increase The people in your household would get sick less often Your friends / neighbours would admire what you’re doing You’d have a more harmonious family life You’d feel more positive about your life It’s not just about different segments, but also about the balance of messaging around motivations

7. A slight shift in motivations can be seen, with those motivated by having ‘enough energy for future generations’ steadily declining & those motivated by ‘warm & comfortable home’ slowly increasing Q8a Which one of the following statements is most like you? Please choose one option only. I am most motivated to think about how I use energy by the hope that…

8. Barriers are still declining, while those who say ‘nothing’ stops them from using energy wisely are steadily increasing ~ fewer are facing barriers, regardless of their level of commitment Q61 What stops you paying more attention to ‘using energy wisely (i.e. how much I use and what types I use)’? • Since Oct-Dec 09 quarter, significantly fewer who are open to using energy wisely mention ‘not enough money’ and ‘things outside control’ as barriers, while significantly fewer ambivalents mention ‘not enough time’, ‘finding good info’, and net ‘it’s a hassle’ as barriers. Barriers are declining significantly amongst all commitment segments.

9. Not everyone is doing everyday actions ‘all of the time’– need to focus on increasing frequency of some Q5 Now thinking about the way you and your household use appliances, lights and your vehicle. How often does you household...? There is significantly more opportunity amongst ambivalents to increase frequency of ‘reducing appliance use’, ‘do everything you can to reduce moisture in home’, and ‘switching off appliances when not in use’. Maintain these actions Opportunity to increase frequency of these actions Increase awareness & remove any technical barriers Base: Excludes those who stated ‘not applicable’. / Significant differences compared to Jul-Sep 10 quarter.

10. Strongly disagree Agree Strongly agree Disagree Neither More agreed peer pressure would make them consider making better energy-efficient choices & pay more attention to energy use Don’t know Q95 I’d now like you to imagine that your family, friends or colleagues began doing more things to save energy or water and overall began making more energy efficient choices. Thinking about how this may influence you, how strongly do you agree or disagree with the following statements? % respondents Random sample Oct-Dec n=594

11. Recall of The Energy Spot & things done as a result continue to build significantly since the campaign began Q76 Have you seen any ‘Energy Spot’ advertisements featuring this presenter in the last month? (You may have seen one or a number of different episodes.) / Q76b Have you seen any Energy Spot advertisements featuring this presenter at all? Q80a As a result of seeing ‘The Energy Spot’ advertisements, have you or others in your household done anything to improve your energy use? (This can be anything - big or small.) In Oct-Dec 10, those who have seen the campaign at all are significantly more likely to be aged between 20-29 years old (80%) and living at home (85%).

12. EECA Business Monitor • EECA’s Business Monitor is conducted via telephone 1-2 times a year. • The sample compromises around 200 interviews with Business decision makers in regards to Energy Management. • Quotas are set for company size, but result are reported weighted to reflect the NZ Business population.

13. Customer relationships & reputation continue to be of highest priority to businesses Q6 When thinking about how your organisation operates and its strategic priorities, please tell us how strongly each of the following factors feature in your overall business decision-making? Followed by sustainability of business, business profitability, and productivity. Tier 1 Corporate image Tier 2a Business longevity Tier 2b Image in community / corporate culture / financials Tier 4 Energy / environment Percentage in green significantly higher than 2009 Percentage in red significantly lower than 2009 *Based on n=31 top-up sample in 2009 Base: All businesses: Oct ‘09 (n=617), Jun ‘10 (n=200)

14. Segmenting people according to their commitment to energy management identifies a small segment who WANT to do more & a significant segment who are ambivalent (i) • Just over a fifth (21%) are already committed to energy management. • They are already giving it 18% of their attention – significantly higher than average. • One in ten (11%) are identified as a potential target audience – open to energy management. This is a decrease on the 2009 result (15%). • They want to give it around 5% of their attention but are able to give it only 0.3% – almost none. • 35% are ambivalent about energy management – they could be more interested in the future, but right now it’s not a major priority for them. • Just over a quarter (26%) do not prioritise energy management, an increase of 6 points in this segment since 2009. Base: Oct ‘09 (n=617), Jun ‘10 (n=200)

15. Profiling Energy Management commitment segments… Base: n=42 Base: n=22 Base: n=71 Base: n=52 Note: Significance testing done at 95% confidence, testing how different this segment is from the rest of the sample. Subgroups have small base sizes, results indicative only. Base: Commitment segments Jun ‘10

16. A small number of committed businesses & those open to energy management would like to focus more on energy management, commitment to community & productivity Q11a Is there anything in that list of priorities that you feel your business should focus more on than it currently does? Resourcing, strategic barriers and knowledge barriers prevent the majority of businesses from paying energy management more attention Base: Commitment segments Jun ‘10

17. If considering implementing projects, most cite cost savings as a reason for doing so Q13 What are some of the reasons for implementing or planning to implement projects with regard to improving you use of energy resources? Nearly half mentioned better energy management (49%), improved customer relationships (49%), and better working environment (48%) as reasons for implementing or planning to implement energy use improvement projects. Significantly more food production sector (76%) Significantly more food production sector (86%) Significantly more belong to an association (46%) Significantly more food production sector (57%) Significantly more tourism sector (38%), belong to an association (27%) *Note: Subgroups have small base sizes, results indicative only Base: All businesses: Jun ‘10 (n=200)

18. Summary

19. To remember • People have different drivers and motivations when it comes to Energy Management and sustainable behaviour • Both Consumer and Businesses • About one third of consumers and businesses are already committed or open to “using energy wisely / energy management” • They “just” need reinforcement that they are doing the right things • For all others we need to link “using energy wisely / energy management” to more tangible outcomes • A warm, comfortable and healthy home for Consumers • Customer relationships, reputation, growth and profitability for Businesses • Easy to do actions / communications and/or legislation changes are other main tools to change their behaviour

20. Thank you for you attention!Horst Feldhaeuser, Research DirectorHorst.Feldhaeuser@synovate.com