The high cost of living is a global issue that is affecting people in developed and developing countries alike. The World Bank estimates that over 685 million people live in extreme poverty, defined as living on less than $2.15 a day. In the UK, the Trussell Trust reports that 2.1 million people have accessed food banks in the last year.
There are certain drivers that lead to inflation and have contributed largely to the increase in the cost of living crisis globally. According to Commetric, these include post-pandemic recovery (29%), the Ukraine-Russia conflict (25%), energy prices (21%), supply chain disruptions (17%), and staff shortages (8%).
The World Bank estimates that over 60% of households spend more than 30% of their income on basic needs. While, energy costs are the biggest expense for most people, accounting for over 40% of the average household budget in developed countries. So, this is one of the big concerns for governments and businesses. And they need to do more to communicate the cost of living crisis and help people come out of the extreme poverty lines.
Net zero and the cost of living crisis
The term “net zero” is used to describe a situation where the total greenhouse gas (GHG) emissions from human activity are balanced by an equivalent amount of removals from the atmosphere. This can be achieved either by reducing emissions to zero or by offsetting remaining emissions with GHG removals. In either case, the goal is to achieve a balance between GHG emissions and removals so that the atmospheric concentration of GHGs remains stable.
The concept of net zero emissions has been gaining in popularity as a way to address the global energy and cost of living crisis. In 2020, the World Economic Forum identified net zero emissions as one of the key challenges for global economic growth in the coming decade.
It is practically not possible for any single government or business to reach net zero emissions all alone. This requires combined efforts by all the stakeholders including the common public. Therefore, the role of communication and public relations in achieving net zero emissions is essential.
Public relations and communication are integral parts of the net zero goal, as they help in informing people about the benefits of reduced emissions while also building public support for the policy. In addition, public relations can help to create a sense of urgency around the issue and encourage people to take action. This includes creating and disseminating accurate information about the science of climate change, the potential impacts of climate change, and the actions that individuals and communities can take to reduce their carbon footprint.
The net-zero concept has a number of benefits for society. For example, it can reduce the need for expensive and polluting energy infrastructure, and it can help to address climate change. In addition, net zero emissions could lead to significant economic savings in the long term, as carbon dioxide costs more than other forms of energy.
How PR can intervene in communicating net zero
Public relations can play an important role in communicating the need for action on climate change and the transition to a net zero economy. PR can help to raise awareness of the issue and engage the public in debates about what needs to be done. It can also help to build support for policy changes and for businesses and organizations that are taking action on climate change.
PR can help to build public support for policies that promote a net zero economy. It can help to create awareness of the benefits of transitioning to a net zero economy and promote discussion about what needs to be done. PR can also help to raise public understanding of the challenges involved in achieving a net zero economy and the steps that need to be taken to make the transition.
According to Tom Watson, strategic communications and media relations are two of the significant types of public relations. Both of these types help to convey and convince responsible bodies and the general public to get involved in certain causes and challenges that are common for everyone. He also suggests that the goal of public relations is to achieve three things: understanding, influencing, and advancing a cause to the responsible bodies well in time. In this case, the goal is to achieve net zero emissions by involving every stakeholder to contribute a bit for the common good.
Public relations can help to achieve understanding by creating positive stories about the actions of certain causes. It can also help to build a good reputation for responsible bodies by promoting their work in a positive light. Finally, public relations can help to influence responsible bodies by convincing them to take action on certain challenges.
How inflation has influenced the media debate?
Inflation is one of the significant antecedents of the cost of living crisis. According to J.P. Morgan’s report, inflation is on a red circle and it is greatly influenced by the Ukraine-Russia conflict and supply chain crisis. As result, both food and energy prices have seen a steep upward trend. The media sector has since been a large debate, whereas, financial services remained one of the most prominent sectors in the inflation conversations.
Various sectors around the globe are in the inflation debate by share of voice (Source: Commetric)
These are the sectors around the globe that are in the inflation debate by share of voice. Financial services (42%), retail (20%). energy (17%), food and drink (16%), and technology (5%). Retail, energy, food, and drink are the sectors that have a direct impact on the cost of living crisis. Inflation has also been blamed on the global economic slowdown, which has led to a drop in demand for goods and services. As a result, prices of commodities have increased.
Financial services also have a significant impact on the cost of living crisis and it has been a large focus of the media debate involving communication and public relations. Along with the banks and conglomerates, the financial services including Goldman Sachs and Capital Economics also remained focused on the rise of inflation as part of their campaign of the media debate.
Who can address and influence net zero emission strategies?
There are three major stakeholders that can contribute, address, and influence the net zero emission strategies and these include governments, businesses, and the general public. Their involvement can not only help create a net zero environment but also will help to address energy prices, which has been discussed earlier to contribute 21% to the cost of living crisis globally.
- Governments need to set targets for net zero emissions and invest in green infrastructure as long-term projects. The governments can set short and long-term goals to make sure to integrate sustainable projects that must be based on renewable energy. Governments can contribute significantly to mega projects such as tree plantations and converting fuel power plants to solar, wind, or hybrid power plants to help mitigate burning fossil fuels that hugely influence the ozone and influence environment.
- Businesses need to decarbonize their operations and supply chains. Along with that, they also need to contribute to Corporate Social Responsibility (CSR) and try to reach philanthropic responsibility of Carroll’s pyramid of corporate social responsibility
- The general public needs to reduce their energy consumption and switch to cleaner energy sources. Along with that, they must contribute to tree plantation, be the force to change the world by influencing businesses to go for BCorp certification and force governments and businesses to adopt the Sustainable Development Goals (SDGs) to help reduce poverty and communicate the cost of living crisis.
These steps will help to reduce greenhouse gas emissions and address the cost of living crisis. By investing in green infrastructure and decarbonizing operations, businesses and governments can help to reduce energy costs for consumers. The public can reduce their energy consumption by taking steps such as improving insulation, switching to renewable energy sources, and driving less. Together, these measures will help to address the cost of living crisis while reducing emissions.
While net-zero strategies are important for addressing the cost of living crisis, they are not the only solution. Other measures such as increasing energy efficiency and developing renewable energy resources can also play a role in mitigating costs. It is important to continue working towards net zero emissions goals in order to mitigate the cost of living crisis and protect the environment. Continued progress will help to ensure a prosperous future for all.