Building Consumer Trust in the Energy Market

2016 Energy Trust Barometer

State of Trust in UK Energy

3

63

51

31

28

28

12

46

43

14

22

30

6

Trust Matters.Percent who engage in each behavior based on trust

Behaviors for Distrusted Companies Behaviors for Trusted Companies

Refused to buy products/services

Criticized companies

Paid more than wanted

Shared negative opinions

Disagreed with others

Chose to buy products/services

Recommended them to a friend/colleague

Paid more

Shared positive opinions

Defended company

Bought shares

General Population

Source: 2016 Edelman Trust Barometer Q371-589. Thinking back over the past 12 months, have you taken any of the following actions in relation to companies that you trust? Please answer yes or no to each action. General Population, U.K., question asked of half the sample. Q377-380. Still thinking about the past 12 months, have you taken any of the following actions in relation to companies that you do not trust? Please answer yes or no to each action. General Population, U.K., question asked of half the sample.

most trusted content creators: #1

Friends and Family

most trusted media source: #1

Traditional Media

Bought shares

Industry 2012 2013 2014 2015 20165 yr.

Trend

Technology 71% 71% 74% 72% 69% 2

Food & Beverage 64% 68% 70% 68% 64% 0

Consumer Packaged Goods 55% 61% 63% 63% 59% 4

Telecommunications 51% 57% 57% 56% 52% 1

Pharmaceutical 49% 50% 52% 50% 47% 2

Automotive 55% 61% 64% 63% 45% 10

Energy 29% 37% 31% 37% 43% 14

Financial Services 29% 35% 37% 36% 41% 1220%

30%

40%

50%

60%

70%

80%

Source: 2016 Edelman Trust Barometer Q45-429. Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same nine-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population, U.K.

*From 2012-2014, Pharma included as subsector(Q61f-65f). **From 2012-2015, Pharma included as an industry sector (Q43-60). 2012-2014 data recalibrated as a sector.

2012 2013 2014 2015 2016

General Population

4

UK Energy Sector Trust Weak Trust in each industry sector, 2012-2016

Sector Trends:

48 Colombia48 Germany48 Japan47 S. Korea46 Australia46 S. Africa45 Ireland44 Argentina44 Poland43 Spain42 Turkey40 U.K.38 Sweden34 Brazil19 Russia

79 China77 UAE 75 India66 Indonesia65 Malaysia64 Singapore63 Hong Kong

56 Canada56 Mexico55 Italy53 France53 U.S.50 Netherlands

Utilities Trust:UK Utilities among Least Trusted GloballyTrust in the utilities subsector, General Population vs. Mass Population, 2016

Only 1 in 4 countries are trusters among

both the General and Mass Population

Source: 2016 Edelman Trust Barometer Q61C-65C. Now thinking about specific sectors within the energy industry, please indicate how much you trust businesses in each of the following sectors to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust), question asked of one-fifth the sample. General Population and Mass Population, 28-country global total.

51 Global

5

Trusters

Neutrals

Distrusters

53 Global83 China78 UAE 75 India67 Malaysia66 Indonesia65 Singapore63 Hong Kong

49 Colombia48 Australia47 Germany47 S. Africa46 Japan46 Poland45 Ireland45 Spain42 Argentina42 Turkey41 U.K.38 Sweden35 Brazil19 Russia

59 Italy57 Mexico56 Canada56 U.S.54 France50 Netherlands50 S. Korea

GeneralPopulation

MassPopulation

6

Informed 51 62 63 46 54 59 58 43 60 40Mass 42 54 55 38 49 54 53 38 57 44

Gap 9 8 8 8 5 5 5 5 3 -4

Gap5-91-4

0Below 0

Trust in energy sector, Informed Public vs. Mass Population

UK has Big Trust Disparity

Source: 2016 Edelman Trust Barometer. Q45-429. Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Public and Mass Population, across European countries.

Fran

ce

U.K

.

Spa

in

Ger

man

y

Irela

nd

Rus

sia

Pol

and

Italy

Net

herla

nds

Sw

eden

7

2013 2014 2015 201620%

30%

40%

50%

60%

70%

Sub-sectors 2013 2014 2015 20164 yr.

Trend

**Cleantech 60% 58% 62% 61% 1

Natural Gas 47% 42% 49% 48% 1

Mining -  45% -  47% -

Utilities 40% 35% -  41% 1

Oil 39% 39% 41% 38% 1

Pipelines  -  - 46%  - -

Nuclear  -  - 42% -  -

Industry Sub-sectors:UK Utilities Trust Off the Lows

Source: 2016 Edelman Trust Barometer Q61C-65C. Now thinking about specific sectors within the energy industry, please indicate how much you trust businesses in each of the following sectors to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal.” General Population, U.K., question asked of one-fifth the sample.**Asked as Renewables before 2015

General Population

Percent trust in various industry sub-sectors, 2013 - 2016

An Opportunity for Business

9

6357

51 48

67 6357

51

6369

62

47

51 48 45 41

55 53 4842

5561

56

41

NGOs Business Media Government

Business Most Trusted to Keep PacePercent trust, 2015 and 2016, and percent who trust each institution to keep up with the changing times, 2016

Informed Public

General Population

Trust2016

Trusted to keep pace

Source: 2016 Edelman Trust Barometer Q11-14. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale, where one means that you “do not trust them at all” and nine means that you “trust them a great deal.” (Top 4 Box, Trust), Informed Public and General Population, 27-country global total. Q441-444 Below is a list of institutions. For each one, please indicate how much you trust that institution to keep up with the changing times using a 9-point scale where one means that you “do not trust them at all to keep up with change” and nine means that you “trust them a great deal to keep up with change”. (Top 4 Box, Trust) Informed Public and General Population, 28-country global total.

Business in the lead

Trust2015

10

Purpose Builds TrustPercent who cite each as a reason for why their trust in business has increased or decreased

Source: 2016 Edelman Trust Barometer Q328-329. For which of the following reasons, if any, has your trust in each institution listed below increased over the past year? Q330-331. For which of the following reasons, if any, has your trust in each institution listed below decreased over the past year? General Population, 28-country global total.

Reasons Trust in Business Has Increased

Reasons Trust in Business Has Decreased

Produces economic growth

Contributes to the greater good

Allows me to be a productive member of society

Fails to contribute to the greater good

Lacks economic growth

No public services

59%

45%

40%

50%

39%

36%

General Population

Trust-Building Behaviors:Largest Gaps For U.K. Energy in Transparency, Leadership and Data Importance vs. performance of behavior in building trust in a company, in the U.K.

% Performanc

e

% Importance Gap

General Population

11

Source: 2016 Edelman Trust Barometer. Q335-440 How important is each of the following behaviors to building your TRUST in a company? Use a 9-point scale where one means that behavior is “not at all important to building your trust” and nine means it is “extremely important to building your trust” in a company. (Top 4 Box, Importance) Q346A-J How well do you think the energy industry is performing on the behaviors listed below. Use a 9-point scale where one means they are “performing extremely poorly” and nine means they are “performing extremely well”. (Top 4 Box, Performing) General Population, U.K.

Protects consumer data 87 61 26Ensures quality control 85 61 24Keeps me and my family safe 83 63 20Is transparent in reporting progress on company’s social responsibilities 78 49 29Makes my life easier 77 62 15Embraces sustainable business practices 78 54 24Has leadership that effectively represents the interests of all stakeholders 77 50 27Supports local charities and good causes 73 49 24Develops intellectual property 66 50 16Makes me feel connected to something bigger 59 47 12

12

Trust-Building Behaviors:

Tech Outperforms Where Energy ShouldGeneral Population

Source: 2016 Edelman Trust Barometer Q335-440. How important is each of the following factors to building your TRUST in a company? Use a 9-point scale where one means that action is “not at all important to building your trust” and nine means it is “extremely important to building your trust” in a company. (Top 4 Box, Trust) General Population, 28-country global total. Q344-348. How well do you think the [INSERT SECTOR BEING RATED] industry is performing on the behaviors listed below. Use a 9-point scale where one means they are “performing extremely poorly” and nine means they are “performing extremely well”. General Population, U.K.

Gap in importance of behaviors in building trust vs. percent who agree each industry is performing well against these behaviors, in the U.K.

Technology EnergyProtects consumer data 26 26Ensures quality control 15 24Keeps me and my family safe 20 20Is transparent in reporting progress on company’s social responsibilities 19 29Makes my life easier -1 15Embraces sustainable business practices 17 24Has leadership that effectively represents the interests of all stakeholders 17 27Supports local charities and good causes 18 24Develops intellectual property -6 16Makes me feel connected to something bigger -3 12AVERAGE GAP 12 22

13

50%

My frie

nds a

nd fa

mily

An aca

demic

expe

rt

Compa

nies t

hat I

use

Emplo

yees

of a

compa

ny

A compa

ny C

EO

A jour

nalis

t

A well

-kno

wn onli

ne pe

rsona

lity

Electe

d officia

ls

Celebr

ities

Compa

nies I

don’t

use*

67 6153 46 39 46 40 34 30 26

7865 62 55 49 44 42 37 32 31

Every Voice Matters

Source: 2016 Edelman Trust Barometer Q598-609. Thinking about the information you consume, how much do you trust the information from each of the following authors or content creators? (Top 4 Box, Trust) General Population, 27-country global total, question asked of half the sample.

* Asked as “Brands I don’t use” in 2015.

Percent who trust information created by each author on social networking sites, content sharing sites and online-only information sources, 2015 vs. 2016

+11

General Population

+10

2015 2016

14

1519

10

1721

29

20 20

14

25

3128

3128

54

23 2327

1620

1720

14 12

27 2520

24 22 23

5 7 5 69

6

Employees Are Essential Advocates

Source: 2016 Edelman Trust Barometer Q610 Who do you trust MOST to provide you with credible and honest information about a company's financial earnings and operational performance, and top leadership’s accomplishments? Q611 A company’s business practices and handling of a crisis: Who do you trust MOST to provide you with credible and honest information about a company’s business practices, both positive and negative, and its handling of a crisis? Q612 Who do you trust MOST to provide you with credible and honest information about a company’s employee programs, benefits and working conditions, and how a company serves its customers and prioritizes customer needs ahead of company profits? Q613 Who do you trust MOST to provide you with credible and honest information about a company’s partnerships with NGOs and effort to address societal issues, including those to positively impact the local community? Q614 Who do you trust MOST to provide you with credible and honest information about a company’s innovation efforts and new product development? Q615 Who do you trust MOST to provide you with credible and honest information about a company’s stand on issues related to the industry in which it operates? General Population, U.K., question asked of half the sample.

Most trusted spokesperson to communicate each topic

Innovation effortsFinancial earnings & operational performance

Business practices/crisis handling

Treatment of employees/customer

Partnerships/Programs to address societal issues

Views on industry issues

Employees Most Trusted

General Population

Company CEO

Senior executive

Employee

Activist consumer

Academic

Media spokesperson

Source: 2016 Edelman Trust Barometer Q561-573 Thinking about businesses in your country, how important is it that they play a role in solving each of the following societal issues? Please use a nine-point scale where one means that it is “not at all important” and nine means that it is “extremely important”. (Top 4 Box, Importance) General Population, 28-country global total, question asked of one quarter the sample.

15

Connect to What Matters MostPercent who agree that each is an important issue for business to address

Improving access to education and training 84Addressing income inequality 83Reducing poverty 81Creating and maintaining a modern infrastructure 81Supporting human and civil rights 81Protecting and improving the environment 80Improving the access to healthcare 79Addressing climate change/global warming 74Addressing gender inequality 74Improving access to food, potable water and housing 73Maintaining geo-political stability 69Developing better solutions for immigrants, refugees and migrant workers 62

Five Takeaways

16

Trust

UK Energy Trust Low – But Past The Worst.

Advocacy

Find the Issues that Connect.

Actions

Transparency, Leadership and Purpose Build Trust.

Values

Solve Problems When Government Can’t.

Engagement

The Mass Population Matters More Than Ever.