Green ideas take root in business

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Eco-friendly products, practices touted to gain favor and save money

For U.S. companies, going green has never looked so good.

In one of the most dramatic turnabouts in corporate America, previously
environmentally apathetic businesses of all sizes and in all industries
are rushing to portray themselves as Earth-friendly or touting the
eco-friendly aspects of their newest products.

Hardly a day goes by without announcements hawking the latest green
initiative, new store or design. Corporate executives are flocking to
green-marketing seminars. Even the Business Roundtable, a group of 160
chief executives of major U.S. companies, recently sounded the alarm
about the need to reduce greenhouse gases.

In Michigan, it’s playing out in everything from landscape services
selling special lawn-care programs to protect the watershed to
energy-saving skylights and refrigerated cases at a new Wal-Mart set to
open Wednesday in Livonia. A Grand Rapids firm has rolled out the first
trade-show exhibit system made of recyclable and renewable materials.

With rising numbers of consumers awakened to the threat of global
warming, being seen as green has become a competitive advantage, some
marketing experts say.

"It’s sort of sexy to be green," said Bonnie Carlson, president of the
Promotion Marketing Association. "Corporations are jumping on the
bandwagon because there’s a real positive halo attached to that
position."

At the same time, businesses’ environmental records face more scrutiny.
Climate Counts, a new nonprofit, has evaluated and ranked the
climate-change efforts of 56 large companies. Consumers can download
free pocket guides with the rankings.

The growth of green marketing

But image isn’t the only motivation. Green products often command
premium prices. And reducing energy usage helps companies save money.

In addition, companies in certain industries such as oil and gas hope
to stave off tough climate-change regulations by selling themselves as
environmentally conscious, said Thomas Lyon, a professor of sustainable
science, technology and commerce at the University of Michigan’s
business school.

Various industries are "now positioning themselves for a carbon-constrained world," he said.

U-M also has tapped into this market. Lyon heads the school’s Erb
Institute for Global Sustainable Enterprise, which offers a 3-year
program that allows students to earn a master of science degree from
the School of Natural Resources and Environment and an MBA.

"The challenge is to take something that is not naturally green and
make it into a green product," said Sun Yu, president of Berkley-based
Zen Design Group, which created a line of electronic toys that doesn’t
use disposable batteries.

Green marketing takes many forms, from traditional advertising to
sponsorships of environmental groups or events such as the recent Live
Earth concerts.

As it has spread, it also has become increasingly sophisticated. Gone
are the days when companies simply labeled themselves or their products
as green. Now, businesses must explain how they’re green and advertise
in multiple venues, not just television, said David Lockwood, research
director at Mintel, a Chicago market research firm.

"Green awareness has progressed to the point where there is skepticism," he said.

Lockwood and other marketing experts also warn that selling a product
based on its green attributes alone often doesn’t work. Ironically, to
be successful, companies also must offer some non-green value, such as
greater convenience or savings.

"The trick is to have products that are needed and to make them better," he said.

Companies’ claims checked

The rise of green marketing has raised concerns about greenwashing —
companies exaggerating their products’ eco-friendly attributes or
making misleading claims about their environmental efforts.

"There are more and more pressures for companies to start appearing
green," said Michelle Chan, Friends of the Earth’s program manager for
green investments. "Therefore, there are more and more promises."

But with technology, businesses could find it harder to get away with greenwashing than in the past.

The Internet makes it easy for dishonest ad campaigns to quickly gain
notoriety. And dozens of watchdog groups have sprung up to help
consumers discern who’s telling the truth.

These efforts could ensure that green marketing doesn’t lose its effectiveness and become a fad.

"If anything, it’s overwhelming, this wave of awareness," said Kert
Davies, research director for Greenpeace. "Hopefully, this sticks
around and is not just a phase."

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No Responses to “Green ideas take root in business”

  1. Going green is all the buzz – we are looking at ways to go green as well.

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