After President Joe Biden took office, the potential impacts that the new government could have on the tissue industry were discussed, specifically the potential effects of the new carbon regulations.
The new administration has not yet presented a clear and decisive view on the matter and any analysis still falls under the category of “speculation”. However, according to Fisher International, it is believed that it is always better to prepare for the new scenarios that may present themselves in the future.
Consumers have the habit of making their purchases based on factors such as performance, value, emotional attachment, among others, and, for some time now, the purchasing behavior of these people has also started to include concern for the environment – a trend that it is also affecting the business and manufacturing sectors through ESG initiatives. An important question to be raised in this regard is whether increased climate regulation will create trade-offs at the consumer level.
To try to determine whether the American tissue industry can really be threatened by the new carbon legislation, it is necessary to understand the level of impact for the consumer. More and more people are looking for companies that align their social values (including minimizing the carbon footprint) and shopping, and these criteria are especially popular with younger generations, such as millennials and Gen Z, who represent the first consumers with considerable purchasing power in history making decisions based on environmental factors.
The new government is likely to bring about some changes in the United States’ climate change policy, which could also lead to an increase in the number of states that decide to join California in implementing systems that regulate carbon emissions and with respect to possible regulation of climate change, it is extremely important that the pulp and paper industry is aware of what may happen in the future, especially in the context of the younger generations, who are more likely to make investment decisions.
Read the full article and explanatory graphics on the Fisher International website.