Lately you will have you noticed increased talk about environmental initiatives, green products and services, recycling, global warming, climate change, green marketing, sustainability, eco-friendly products and so on.
Climate change legislation is on the table in the US; 190 countries will meet in Copenhagen in December to create a replacement for the Kyoto Protocol (expires in 2012); and an Emissions Trading Scheme (ETS) is being debated in Australia to reach balance between production and humanity (interestingly our polluters are our economic sustainers).
And while some critics are saying that green marketing is the latest trend, the political weight behind green agendas will create mainstream changes and opportunities.
So what does this mean for Australian businesses?
An ETS seems unavoidable in Australia. This will mean some form of taxing or penalty for heavy carbon emitters, but it will also create opportunities for businesses of all sizes to create green products and services that appeal to emerging markets both up and down the supply chain.
But while ‘green’ is becoming the new black there are some dos and don’ts to make sure you get it right and create a genuinely green offering.
Getting it right and avoiding the pitfalls
The Australian Competition and Consumer Commission (ACCC) has its eye on organisations making unsubstantiated or misleading claims of environmental friendliness (see http://www.accc.gov.au for more information). Products or services claiming green benefits can be very attractive for consumers and create competitive points of difference, but the ACCC wants them backed up by scientifically sound and truthful statements that do not “mislead or deceive consumers in any way”. False claims will cause reputation damage and create legal risks.
Here is the ACCC’s checklist for making environmental claims:
1. Avoid using terms like ‘safe’ and ‘friendly’ and unqualified pictures or graphics. At best they are unhelpful and encourage skepticism, at worst they are misleading
2. Spell out exactly what is beneficial about a product in plain language that consumers can understand
3. Link the environmental benefit to a specific part of the product or its production process such as extraction, transportation, manufacture, use, packaging or disposal
4. Make sure any claims you make about your product can be substantiated. Think about how you would answer a query regarding the environmental benefits you are claiming about your product. For example, what scientific authority could you use to justify the basis of your claim?
5. Explain how a product’s characteristic is beneficial to the environment. For example, explain that a phosphate-free product is less damaging in river systems because phosphate promotes algal growth which can clog up rivers
6. Avoid giving the impression that your product is completely environmentally benign if it is not
7. Use the claim only in an appropriate context or setting. For example, do not claim that a product is not tested on animals if it is a product that would never be tested on animals in any way
NB. It may also be a good idea to have your claims checked by a trade practices legal specialist to further reduce the risk of breaches to the Act. It may also be worth cross-checking claims against the international standard ISO14021 2000.
Green marketing benefits
On the up side, more and more people are prepared to take a stand against global warming and are seeking out genuinely green products. We are seeing new products and offerings from energy and fuel retailers, furniture manufacturers (Ikea in particular), banks, motor and transport companies, industrial, retail and IT sectors.
These organisations are treating their environmental commitment as a way of doing business rather than a marketing strategy. This commitment creates:
- Engaged employees and attractive HR opportunities
- Strong supply chain with like-minded partners (green partnerships)
- Increased enquiries, sales, repeat business, viral following and brand loyalty
- Reduced environmental impacts, improved legacies and cleaner business mentality
- Recouped investment through low cost implementation and ‘pay-back’ periods (especially with regard to water and energy saving measures)
When it comes to pricing, the majority of people at this stage are not prepared to pay more for green products, BUT when the cost is equal, the green products are taking preference.
Getting started
Here are some tips for preparing and conducting green marketing:
1. Do you homework – make sure there is a market for your products, ensure the scientific validation of your claims
2. Get your own house / business house in order – put in place sustainable practices, make sure all team members are walking the talk, show evidence of practices to support your green claims (see great resources via Brisbane City Council: http://www.greenheartcitysmart.com; visit the Environmental Protection Agency’s ecoBiz website: http://www.epa.qld.gov.au/environmental_management/sustainability/ecobiz_queensland/; or http://www.greeningaustralia.org.aufor excellent general information; and http://www.thegreenpages.com.au/ for sustainable products and services)
3. Verify your green statements – this may require legal advice (visit http://www.climatechange.gov.au for information on certifying your products and services)
4. Engage Market Savvy to plan and implement your green marketing activities, to differentiate and strengthen your brand (we offset our carbon emissions and conduct sustainable practices)
Hopefully this information has clarified some of the current green marketing discussions and shown you that there is much more to getting it right than putting a recycled symbol on your products.
For further reading, you may wish to search - carbon trading, the Carbon Pollution Reduction Scheme and the NGER Act.
This is a big topic, so for more information on promoting green products and services, please feel free to call me on 07 3899 8335.
Best wishes – Megan Walker