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The Incentive-based Approach to Sustainable Living: A Win-Win for All

Gilad Regev. . #climatehero Empowering people to take climate action as each one of us matters August 4, 2023

In the wake of escalating #environmental concerns, there is an increased focus on #sustainable living. However, one recurring challenge is the perceived high cost of #sustainability. When sustainable choices come at a premium, and less #ecofriendly alternatives are discounted, making the right choice becomes difficult for the average consumer. The solution may lie in a shift in approach - incentivising people rather than penalising them for making sustainable choices. This is a win-win situation where individuals are rewarded for their eco-friendly efforts, and companies and countries alike recognise the long-term value in making sustainable choices more appealing to the general public.

Understanding the Power of Incentives Incentives are a powerful tool for motivating individuals to make positive changes. If we consider the principles of behavioural economics, humans are more likely to respond to rewards than punishments. Therefore, when it comes to promoting sustainable living, an incentive-based approach can be incredibly effective. One shining example of this approach is the Kora rewards hub, a platform that rewards users for their sustainable actions.

The Kora Rewards Hub: A Game Changer Kora is more than just an app; it's a movement that aims to make every individual a #climatehero. It measures and rewards climate-positive actions, thus empowering individuals to see the impact of their efforts. This approach is a stark shift from the overwhelming narrative around climate change, where individuals often feel powerless. With Kora, every small action counts, and every user is a part of the solution. By providing a direct reward for every sustainable action, Kora is harnessing the power of behavioural economics to drive change. For every 100 grams of CO2 reduced, users earn one Kora token. These tokens can then be spent in Kora's marketplace of sustainable products and services, all available at discounted prices.

Kora's Impact on Sustainable Choices Kora's reward system is more than just a feel-good factor; it's a motivating force for sustainable action. Users report that they walk and cycle more and drive less after installing the app. This change in behaviour is not born out of the fear of penalties but the lure of rewards. Moreover, Kora will also making a significant impact on consumer behaviour at the point of sale. It allows brands to make their products carbon neutral when users of Kora's app purchase discounts with their tokens. These tokens can then be used to offset the carbon footprint of the product that has been purchased. This unique approach will create a ripple effect in the market, encouraging both consumers and brands to make more sustainable choices.

The Power of Collective Action: Companies and Countries While individual actions are crucial, collective action is the key to tackling environmental problems on a larger scale. When companies and countries alike begin to see the value in incentivising sustainable choices, we can expect to see significant shifts in consumer behaviour.

Companies Leading the Charge Prominent companies like HubSpot and WordStream by LocaliQ are already recognising the potential of incentivising sustainability. For instance, Hubspot has implemented a comprehensive sustainability strategy that nudges its customers towards more sustainable product lines. Similarly, Wordstream has launched a series of sustainability campaigns in alliance with social media influencers, leading to an uptick in sustainable purchasing patterns.

Countries Making a Difference It's not just companies; countries are also recognising the value of incentivising sustainable choices. For instance, #portugal has recently launched a new National Rail Pass, enabling people to take as many regional train journeys as they like for just €49 a month. This is a clear example of making sustainable choices more appealing to the general public. Similarly, in #germany, the 'Deutschlandticket,' priced at €49 a month, has led to a 25% rise in passengers on regional services, showcasing that the incentive-based approach works.

The Long-term Value of Incentivising Sustainable Choices While the initial investment in incentivising sustainable choices might seem high, both companies and countries must realise the long-term value of this approach. As more people adopt sustainable practices, the demand for sustainable products and services increases, eventually leading to a decrease in their cost. Furthermore, the positive environmental impact of these changes cannot be quantified in monetary terms alone.

Moreover, adopting an incentive-based approach towards sustainability can also lead to a competitive advantage for companies. By taking the lead in this space, companies can attract environmentally conscious customers, thus gaining a significant edge over competitors.

Conclusion: A Call to Action Incentivising sustainable choices is not just a smart strategy; it's a necessity for our planet's future. Companies and countries must recognise this and act accordingly. And with platforms like Kora leading the charge, it's easier than ever to reward individuals for their sustainable actions.

By recognising the opportunities and building a portfolio of sustainability rewards, companies and countries can drive consumer demand, accelerate their sustainability strategy, and build sustainability markets - all for the good of individuals, society, and the planet. So let's shift the focus from penalising unsustainable choices to rewarding sustainable ones, and together, we can create a brighter, more sustainable future for all.

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