Innovative Black Carbon Certificates Fuel Traditional Cookstove Replacement

May 22, 2015

Recently, the Gold Standard Foundation, a leading standards organization for climate mitigation projects, launched a first-of-its-kind program to certify the reduction in black carbon emissions when traditional cookstoves are replaced with more efficient ones. While these certificates do not have monetary value in and of themselves, they have the potential to transform funding for cookstove replacement by providing donors with verified outcomes.

Black carbon or soot is generated from the incomplete burning of biomass – wood, animal dung or brush – as well as polluting diesel engines. It is second to carbon dioxide in its contribution to global warming. But, the detrimental impact of soot does not stop there. It also compromises water security for millions by accelerating glacial melt where it settles.

And worse, traditional cookstoves – responsible for up to 25% of black carbon emissions worldwide – are the primary cause of indoor air pollution for 3 billion people, causing the premature deaths of 4.3 million, including 500,000 children.* Not only does soot contribute to global warming, but a global health crisis too.

There has been a concerted effort by organizations such as the Global Alliance for Clean Cookstoves to replace traditional stoves with cleaner ones. Indeed, these programs have had success: since 2010, more than 20 million cleaner and more efficient cookstoves and fuels have been adopted by people in developing countries, largely in urban areas.

Yet, this effort has been hampered by a myriad of challenges, with cost being one of the most vexing. At $10-100 apiece, modern cookstoves are simply out of reach for many of the world’s poorest households.* Moreover, familiar benefits from such a purchase are often hard to put a value on, things such as time saved gathering wood or reduced risk of respiratory disease.

Cookstove replacement programs already attract financial support from carbon credits generated by reducing associated carbon dioxide emissions. But, current protocols neither quantify black carbon emissions nor measure its reduction. It is this gap that this certificate program seeks to fill.

And, by doing so, black carbon certificates have the potential to generate even greater benefits than carbon credits alone. Here’s how. These certificates:

• Attract funding from a wider range of sources given that they tackle issues beyond climate change including water security and human health. Donors could include governmental and non-governmental organizations, as well as multi-national corporations such as Unilever which already invests heavily in sustainable living initiatives around the world.

• Can generate greater premiums for associated carbon credits than otherwise would be expected because of the added benefit of certifying black carbon reduction too. Additional funding will accelerate stove replacement by subsidizing the purchase price and ongoing maintenance fees or distribution costs, especially in harder to reach rural areas.

• Provide a powerful signal to the market that demand for more efficient cookstoves is about to scale. To date, only 4% of traditional stoves have been replaced.* This leaves a massive market opportunity yet to be tapped and ripe for further innovation.

Reducing black carbon emitted from traditional cookstoves benefits human health and the environment. Though not a monetary instrument in and of itself, Certified Outcome Statements have the potential to accelerate cookstove replacement by attracting greater funding from donors that seek results-based outcomes. Replacement programs – certified to benefit both people and the planet – should ignite greater interest in this effort by all of us.

* Source: The Gold Standard Foundation


Growing Business Opportunities in Home Lighting, Heating

November 10, 2012

A ban on incandescent light bulbs took effect in the European Union last month, making more efficient lighting technologies — including compact fluorescent lightbulbs (CFLs) and light emitting diodes (LEDs) — standard across Europe. Such a milestone reminds us that market shifts — whether spurred by regulation or innovation — open up new opportunities for businesses to sell greener products and services to consumers.

Many of these emerging opportunities focus on efficient home energy solutions for consumers. Here are two that businesses should consider:

Next-generation lighting

The European Union isn’t the only region phasing out traditional incandescent lightbulbs. In 2007, the United States passed a similar regulation that effectively eliminates many of those bulbs by January of 2014. Initially, this mandate spurred demand for CFLs, likely from niche consumers willing to pay a higher price for an emerging technology that promised lower electrical usage and longer product life. But, since 2008, CFL purchases have declined each year, despite a precipitous drop in price.

Today, according to the U.S. Department of Energy, two thirds of the energy savings potential from CFLs has yet to be realized. As such, with the U.S. pulling out of the recession and consumers more willing to open their wallets, businesses have an opportunity to spur demand for next-generation lighting products.

Retailers are showing renewed interest in efficient bulbs. Ace Hardware, for example, recently declared Oct. 18 to be Annual Light Bulb Day to raise national awareness for CFLs and other lighting technologies. It also offered discounts on purchases to motivate foot traffic and drive sales.

Alternatively, Ikea has chosen to bypass CFLs: It plans to stock LEDs exclusively by 2016 because it believes the rapidly evolving technology will likely outperform CFLs in the near future. By picking a winner in the lighting category, IKEA generated a lot of buzz for its stores and interest in this emerging technology.

Utilities and utility regulatory boards are also spurring demand as they comply with state energy-efficiency mandates. For example, Efficiency Vermont, an organization authorized and funded by the Vermont Public Service Board to promote energy efficiency, launched a successful campaign to increase the use of CFLs. The campaign tackled the perception that CFLs were more expensive by advertising 99-cent bulbs available at participating retailers. It also created a sense of urgency (“good while supplies last”) to drive demand. The campaign was so successful that it doubled the number of CFLs sold per month.

Natural-gas home heating

Meanwhile, another home-energy opportunity is emerging: converting home heating systems from heating oil to natural gas. Not only would shifting to natural gas greatly reduce carbon emissions and improve local air quality, but — in most cases where gas lines are nearby — would also generate very positive returns for homeowners.

Technology innovation is precipitating this opportunity by unlocking vast amounts of natural gas in shale formations across the country. Many such formations are concentrated in the northeast, a region that historically has relied more on heating oil, partly because of the region’s limited pipeline capacity for bringing gas from the Gulf of Mexico. With natural gas supplies increasing, the residential price has dropped dramatically from its peak in 2005-2006.

Simultaneously, the residential price of heating oil has grown dramatically, providing even more incentive for households to switch to natural gas. In fact, according to the Energy Department, the average heating-oil-heated household now spends more than three times as much on heating ($2,298) as the average natural-gas-heated household ($724).

Of course, many of the developments in natural gas are the result of hydrofracking, a controversial extraction process. Many believe that hydrofracking risks contaminating aquifers used for drinking water, although the degree of risk is up for debate. And while greener fracking technologies are emerging, they haven’t yet reached commercial scale. Still, the benefits of shifting away from heating oil to natural gas may outweigh the costs.

If shale gas extraction continues, there are many ways that businesses can promote natural gas conversion to consumers. Certainly, energy companies can motivate their own customers to make the switch through the use of incentives. Utilities such as Con Edison are already helping to coordinate clusters of property owners to convert together, thereby lowering the upfront costs for individual customers.

Banks also can promote natural gas conversions by extending loans to help consumers make the switch. One such loan program by People’s United Bank covers the upfront conversion costs for Southern Connecticut Gas and Connecticut Natural Gas customers.

Market shifts in regulation and technology are enabling new opportunities to provide efficient home energy solutions for consumers. Many businesses are already starting to take advantage of this. Those that aren’t yet should take note: As the U.S. continues to emerge from the recession, consumer appetite for such solutions is only likely to increase.


How to Grow Consumer Attachment to Green Brands

May 10, 2012

Marketers work hard to create an emotional link between consumers and the brands those marketers promote. But that kind of attachment is not easily won and must be nurtured over time. Experts say one way to create that emotional link is by aligning a brand’s identity with the consumer’s sense of self; that is, with a person’s understanding of who they are and what they want to be.

But which sense of self are we talking about? The actual one based on how consumers perceive themselves today – or the ideal one based on who they aspire to be? Answering that question has profound implications for brands, including green brands, in terms of how they should build brand attachment with consumers.

Lucia Malär, an assistant professor of marketing at the University of Bern’s Institute of Marketing and Management, and several of her colleagues recently published an article in the Journal of Marketing that explores the relationship between the consumer’s actual and ideal sense of self. While this academic study did not directly address green brands, there are important lessons green marketers can take away from it.

According to the paper, consumers generally form greater emotional attachments with brands that align to how consumers view themselves, rather than what consumers aspire to be. For green brands this is not a trivial consideration — especially when you consider that, for many consumers, the notion of being green is a goal they aspire to.

Malär et al. identify three attributes that have a significant impact on consumer attachment: the degree of product involvement, the level of consumer self-esteem and the propensity for public self-consciousness. Here are some thoughts on how these characteristics can help green marketers better engage consumers:

Product Involvement. The paper defines product involvement as a consumer’s engagement with a product, largely determined by how relevant consumers perceive that product to be in their lives.  Malär et al. observe that highly engaged consumers have a positive emotional attachment with brands that align to their actual sense of self, while less engaged consumers have positive attachment with brands that focus on consumers’ ideal sense of self.

At the same time, it’s not necessarily true that less eco-engaged consumers will respond positively to brands aligned to their ideal self. While consumers may be aspirationally green, they simply may not be familiar with the products that can help them achieve this aspiration.

Green marketers might first need to educate consumers about green brands before those brands can become relevant in their lives. One powerful tool is to communicate a goal-driven message around green products, while showcasing their actual use by people that consumers can readily identify with. That’s what Mitsubishi did when it created a demonstration program for electric car technology in the town of Normal, Ill.

Self-Esteem. Malär et al. say consumer self-esteem is an essential part of emotional brand attachment — as consumers seek out brands that reinforce or enhance their own perceptions of self worth. This means consumers with higher self-esteem have a positive emotional attachment to brands that reinforce their actual sense of self. At the same time, consumers with lower self-esteem have positive emotional attachment with brands that enhance perceptions of their ideal sense of self.

Given the relative newness of green as a branding category, it may make sense for green marketers to interpret self-esteem as a consumer’s confidence in their ability to make greener choices that are right for them. When engaging green-confident consumers, brands might therefore want to emphasize evidence that confirms the consumer’s self view.  For example, green brands should praise consumers for taking eco-friendly actions.

In contrast, when engaging less confident consumers, a brand may want to shape the perception of what it means to be a greener product, and to actively facilitate their purchase. Such brands might want to show consumers what they could achieve with these products, and provide a roadmap for them to get to their goals.

Patagonia provides a great illustration of this through its Common Thread Initiative.   While most companies market only new products, Patagonia launched a “Buy Less” campaign — to shape consumer perceptions regarding responsible consumption: reduce, repair, reuse and recycle. The campaign reinforces its point by actively facilitating the buying and selling of lightly-worm merchandise from Patagonia through eBay.

Public Self-Consciousness. Professor Malär and her colleagues identify public self-consciousness as a consumer’s awareness of how others perceive them. People with high public self-consciousness have a positive emotional attachment to brands that focus on consumers’ actual sense of self, while those with low public self-consciousness have a positive attachment with brands that focus on consumers’ ideal sense of self.

Green marketers should take advantage of this factor by providing ways for consumers to receive public accolades for eco-friendly behavior. One way might be to embed gaming elements such as badges, points and leader boards into networked products.

Reward companies such as RecycleBank and Practically Green have already made gamification a core part of their offerings. Moreover, car companies such as Ford and Nissan have begun to incorporate similar concepts into the dashboards of their hybrid vehicles to reinforce eco-friendly driving behaviors.

Alternatively, brands can encourage the use of social media apps, like the one Opower recently launched, can enable consumers to share and compare energy savings.

It’s interesting to note that, while Malär et al. address emotional brand attachment, they do not tackle rational brand attachment. But such an attachment can be an important brand driver for consumers — especially when products have a direct and measurable impact on the environment. As such, when it comes to green products, rational brand attachment has the potential to amplify the emotional.

One emerging example of how to cultivate rational brand attachment is the Obama Administration’s Green Button initiative.  This program will provide millions of consumers with access to their energy data. It might also spark the development of innovative ways to leverage that data, in an effort to motivate consumers to reduce their energy use.

Brand marketers face considerable challenges in establishing and nurturing brand attachment. Those attachments not only require an assessment of brand identity, but also exploring the mindset of the intended consumers — that is, how they actually perceive themselves today or ideally in the future. Green marketers can take advantage of this relationship by aligning their brands to the mindset that best promotes eco-friendly behaviors by consumers.


Green Product Paradox: When Too Much Good Is Bad for the Environment

October 4, 2010

A common mantra in green marketing is that if you want the masses to buy your product, focus your messaging on more traditional attributes such as price, quality or service.  A product’s “greenness” is likely secondary for many mainstream consumers. For green marketers then, the holy grail may be to offer a product that is competitive on dimensions both traditional and eco-friendly.  This would result in the greatest number of products sold and greatest impact on the environment.

But, things are not always that simple.  Consider the scenario when an innovative green product spurs new demand across an entire product category, rather than just replaces the existing generation of products in market. Is the individual product still green if the aggregate impact of the category is greater than what it replaced? 

Take, for example, household lighting.  Most of us are aware that switching from incandescent to fluorescent light bulbs can result in a dramatic reduction in energy use.  But, overall adoption has been relatively modest in comparison to the potential market, likely due to the premium price commanded for the bulbs. 

Today, an even newer generation of lighting technology is on the commercial horizon.  Solid state lighting, described as a “souped up” version of the light emitting diodes (LEDs) that are commonly used today to illuminate electronic displays on alarm clocks and audio equipment, promises to provide lighting at a fraction of the energy used by today’s bulbs.  (“Not Such a Bright Idea”, The Economist, August 26, 2010)  Mass adoption of such technology could have significant implications for the environment given that 6.5% of the world’s energy is used for illumination.

In many ways, we should celebrate such technology fixes given their benefits to the environment.  For marketers, solid state lighting clearly has the potential to be one of those “holy grail products”. Yet, green products such as solid state lighting also present a paradox in that their adoption in mass might actually be detrimental to the environment. How could this be the case?  Well, according to J Y Tsao and colleagues at the Sandia National Laboratory, cheaper lighting that sips energy will likely increase overall demand and uses for light, and with it, overall energy consumption.  (J Y Tsao, et. al., “Solid-State Lighting: An Energy-Economics Perspective”, Journal of Physics D: Applied Physics, August 19, 2010)

The rationale? Today, Tsao et. al., contends that consumers underconsume indoor light – with current fixtures providing 1/10th of the illumination as ambient outdoor light on cloudy days and 1/60th of ambient outdoor light on sunny ones.  Tsao rationalizes that there is plenty of room to consume more – including in new ways that have yet to be thought of.

As evidence, Tsao et. al., models historical lighting use and adoption rates for new technologies – from gas lanterns to fluorescent bulbs – and extrapolates forward demand based on the amount of light produced (measured in lumens) and cost per lumen.

Historic trends clearly indicate that consumer demand greatly increased when cost dropped and other attributes – such as faster turn on/off and greater cleanliness – expanded lighting uses.  Extrapolating into the future, Tsao et. al., predicts that with solid state lighting, demand has the potential to increase10x by 2030 and with it, perhaps a 2x increase in energy use.  How paradoxical. 

It is important to note that the green product paradox is not isolated to LED lighting.  Increased demand for electric cars, for example, could result in a similar dilemma if the added electricity load needed to power the vehicles is generated using higher polluting coal.

As such, the green product paradox presents quite the challenge for a marketer.  For individual companies, such products can be both profitable and (at least appear) socially responsible.   It is only by looking at the forest from the trees – and perhaps a little into the future – does it become apparent that, in aggregate, such products may, paradoxically, have a negative impact.

A sustainable brand might try itself to mitigate any impact that its products may have.  But, this will only have broad impact if it ultimately compels competitors to follow suit.  Given this, marketers should recognize that a solution to the paradox may not lie within an individual company’s grasp.  Alternatively, it may take an industry consortium to make the necessary product changes or evolve consumer expectations.  Or, it may take collaboration across industries to have lasting impact.  In both examples cited above, a shift to lower-polluting sources for energy generation would mitigate an increase in demand for both products.

Overall, the green product paradox presents a difficult challenge for green marketers.  Doing good for the planet may not always be as a simple as motivating purchase of greener goods.  In some cases, it just might be too much of a good thing.


Green Brand Leadership: a Fish Story

August 16, 2010

The customer is always right – so goes the mantra of every sales rep from time immemorial. But, as we know, what customers want may not be best for the planet. For some brands, this presents a dilemma: how do you satisfy consumer needs while remaining eco-responsible?

The dilemma can be quite daunting for a brand, especially if the eco-impact is caused by lifestyle choices consumers are long accustomed to. This challenge is only compounded when consumers are not yet aware that their very actions are having a detrimental effect – as no brand wants to be the bearer of bad news. Or, perhaps more challenging still, brands may find that the very behaviors and rituals that help define a brand itself turn out to perpetuate the very actions that are having a negative impact.

Whose responsibility is it to promote more sustainable consumer behaviors?

Many brands would say, it is the role of governments to regulate – and if they don’t, a corporate entity is not accountable for their failure to act. Others would say that it should be left to the discerning buyer. Should a brand itself take the lead? Some may argue yes. It is a demonstration of brand leadership, they say.

But, being out ahead of one’s customers may serve brands well only when their customers expect them to do so. Staking out a leadership position appeals to customers that want to know that they are doing good through the choices that they make.

Others may argue no. Brands sell products, not morality they might say. Worse, eco-responsible messaging may be antithetical to the experience a brand is trying to create. It is hard to enjoy pleasures guilt-free if one is constantly reminded of the impact that one is having on the planet.

But, regardless of where one nets out on this issue, one thing is clear: today, brands are increasingly left with little choice but to act – or react – whether or not their actions directly influence customer purchase decisions. Advocacy groups as well as individuals are leveraging the power of the media (and social media) to broadcast and amplify their voices to sway popular opinion.

Whether viewed as an opportunity to demonstrate leadership or take a defensive stance, it is likely that more and more brands will have to make such choices.

One example of such tension between brands and eco-decisions recently appeared in the New York Times Magazine article by Paul Greenberg, “Tuna’s End: The Fate of the Bluefin, the Oceans and Us.” (June 27, 2010), As Greenberg writes, Nobu, the internationally acclaimed sushi restaurant chain, faces a decision today over the selection of seafood that it serves.

The Atlantic Bluefin Tuna – a prized fish for sushi and sashimi – is now endangered. Continued commercial fishing may push it to extinction. Further, the timing of the BP oil spill in the Gulf likely exacerbated the situation by polluting one of two known breeding grounds in the Atlantic for these fish right as mating season was to begin.

Today, Greenpeace is pressuring Nobu – in large measure because it is a category leader – to no longer serve Bluefin to its patrons. Nobu has resisted. Nobu co-owner Richie Notar noted, “The Japanese have relied on tuna and other bounties of the sea as part of their culture and history for centuries. We are absolutely appreciative of your goals and efforts within your cause, but it goes far beyond just saying that we can just taken what all of a sudden has been declared an “endangered” species off the menu. It has to do with custom, heritage and behavior.”

Arguably, Nobu’s brand identity emanates from a careful balance of adherence to the tradition and ritual of sushi – its creation, its presentation, its consumption – and hip appeal: swanky ambiance, innovative food creations and celebrity ownership. Out of balance, the brand does not deliver on the experience consumers have come to expect.

With this balance in mind, Nobu has tried to stake out a middle ground by updating its menu with the following message: “Bluefin tuna is an environmentally threatened species. Please ask your server for an alternative”

Such a simple message informs patrons of the issue and then let’s each consumer make their own choice. Additionally, such phrasing invites a dialogue between the patron and server regarding food substitutes, though it is unclear as to how many patrons would be inclined to do so.

What Nobu has missed, however, is an opportunity to leverage this situation to evolve its brand appeal – keeping the balance between tradition and hip appeal while elevating each to the next level.

Nobu could find an alternative to Bluefin tuna and not jeopardize the brand, but arguably reinforce consumer perception of Nobu as hip and trendy. Greenberg asserts that what Nobu needs is a new substitute for tuna. As part of his research, he went searching for a Bluefin substitute and may have found one in a fish known as kahala. Arguably, Nobu is missing an opportunity to be one of the first to introduce kahala across its menus, reinforcing its trendy image.

Ironically, by introducing such a substitute, Nobu would not be breaking with tradition, but rather, returning to it, as Bluefin was not widely popular in sushi until just 30 years ago. It was nowhere to be found in sushi before 170 years ago.

Thus, shifting away from Bluefin and offering consumers a tasty substitute could actually enhance Nobu’s reputation for seeding new trends while maintaining close adherence to the tradition of sushi.

In this case, what is good for the brand may actually be good for the planet.


Shopping for Green Online

March 4, 2008

An Interview with thepurplebook Founder Hillary Mendelsohn

With the exception of a few select product categories, growing consumer interest in green has not yet translated into substantive changes in purchase behavior by mainstream consumers.  Like many nascent categories, green faces many barriers to widespread adoption. 

In many ways, product adoption in the green space is a classic chicken and an egg problem: uncertain demand leads manufactures to limit the number of products they launch.  Limited products and product choice, in turn, curtails demand.  However, this only tells half the story as there are many reasons why demand is limited. 

Even with those receptive to a green message, marketers are challenged by low familiarity with green products.  This, in turn, hampers consumers from effectively navigating the category as well as making informed purchase decisions.   

Where do consumers turn for credible information today?  Product companies?  Not necessarily, as consumers are increasingly skeptical about green marketing claims.  Fellow consumers?  Uncertain, as their peers are likely to have equally limited experience with green products.  

Can consumers rely on standards?   Perhaps.  Standards have been adopted in certain categories and many more are on the way.  Yet, rollout of new standards takes time; familiarity with what existing ones mean (i.e., how green is green?) is still limited.    

Instead, consumers today may turn to credible third party sources for guidance.  One such source is the recently launched thepurplebook green, a complete guide to green shopping online.  With an extended following already, thepurplebook series enters the green market with significant brand awareness…and credibility as a reliable source for online shopping information.  Indeed, just weeks after launch, thepurplebook green is planning a second printing.

thepurplebook_image.gif

Recently, I had the opportunity to speak with thepurplebook Founder Hillary Mendelsohn.  We discussed growing consumer interest in the environment, the role that purchases play for consumers to express their convictions on green and the role that thepurplebook green plays in facilitating green purchases.  Here is what she had to say: 

MG: Does consumer concern for the environment translate into increased purchase of green products? 

HM: Purchasing power holds two powerful acts for the consumer.  First, purchasing green allows the consumer to feel better about his/her choices and particularly for personal care products, food and household items there are positive health-oriented reasons  to make such purchases.   

Second, other than voting, this is the consumer’s strongest voice to the corporations at large.  Purchasing green holds corporate America more accountable for creating green options, and ultimately having greener practices internally. 

For both of these reasons, the ‘voice’ that purchasing green gives the consumer has and will continue to increase the sales volume of green products. 

MG: What types of green products do consumers purchase?   

HM: Consumers are purchasing based on their lifestyles.  Young families are focused on greener/healthier cleaning, food and personal care items.  Older consumers are building or remodeling green.  The overall theme is that people are beginning to care about shopping more responsibly and are looking for ways to make better choices.   

It is the job of thepurplebook green and those of us that care about this concern to point them in the right direction. 

MG: Are consumers purchasing green products or brown products that are now greener? 

HM: The answer is both.  But the victory lies in the fact that they are making the effort to make better choices.  We must educate, create standards and make sure products do not lack in quality, style or cost too much.  If we can show consumers that they do not have to compromise on quality, taste or price, we can have everyone purchasing green. 

MG: What was the origin of the book?  Did it evolve out of a passion for green or a business opportunity similar to your other books or a little of both? 

HM: I knew very little about being green prior to starting this book.  I was happily writing online shopping guides when one evening, a friend invited me to see a screening of An Inconvenient Truth.  I sat in the darkened theater thinking about how I had contributed to this huge problem, and the legacy my children will inherit.   

Then I thought, if I were to become part of the solution instead, what would that look like?  Being an online shopping expert, I went to the web to see what I could find as far as earth-friendly fare was concerned.  It was slim pickings and hard to find anything at all. 

I thought, if I apply my skill set and focus exclusively on green product, I will educate myself, and create a book that might help make being green easier for others.  That said, I am a business professional, and what I have discovered, is that green makes sense and makes money – they are not mutually exclusive.   

I do hope this book is wildly successful, as that will mean people are adopting change and I have done my part. 

MG: Who is your target audience?  What beliefs do they hold about the environment?  What are their demographics?  Are they consistent with their behavior? 

HM: The beauty of this book is that it is meant for the eco-neophyte as well as the eco-savvy.  There is education and information for those who want to learn more and great resources for those who already know why they are making  better choices but can’t find the product.  There isn’t a demographic, but rather those wanting a greener lifestyle.   

The idea isn’t to exclude anyone, but to include everyone open to making greener choices whether it is their first or someone who lives dedicated to the greenest lifestyle possible.  This is doable for everyone.  The more we encourage choice and change, the more people will adopt greener lifestyle habits. 

Consistency lies within the consumer having good experiences with green products.  Once they have found good products, they do stick with them. 

MG: How should merchants approach you for inclusion in the book?  What is the criteria for inclusion? 

HM: Any merchants who wish to be considered for inclusion in thepurplebook Green, can log on to www.thepurplebook.com and submit their site for inclusion.   

Our criteria includes the following:  You must be able to complete the transaction online using a secure server, the site must be reasonable to navigate, customer service policies must be clearly stated and fair and a phone number is required for all sites. 

MG: How do you determine how green a company is?  Do you use a ratings system?  

HM: We have familiarized ourselves with all of the certifications currently used and have tried to glean a working knowledge of what is and isn’t green.   If we have questions, we contact the site and we do our very best to deliver consistent, quality information to our consumers. 

If we question it, or a site is not completely green but has a substantial green offering, we let the consumer know that too.  We are all trying to just to do better than we were yesterday, and need to keep that in mind and not judge too harshly. 

This is a relatively new area and we all have much to learn.  No one knows it all – yet.  All of the sites listed in the book are exceptional or they would not be there; however, we do make a special acknowledgement for those sites that also package and ship green.


Green May Be Ho-Hum for the Holidays, But It’s Here to Stay

December 12, 2007

So far, this holiday season has seen a rather muted push on green by retailers, both in terms of the products they sell and the messages they communicate to consumers.  Marshal Cohen, Chief Industry Analyst at NPD Group, recently suggested that such lack of enthusiasm by retailers reflects waning interest in green.  Cohen stated: “It’s basically a card that a lot of people played while it was hot and trendy…and it got overplayed.”  

Indeed, early signs suggest that retailers left their Birkenstocks home for the holidays.  While most retailers are taking steps to green their operations and supply chains, few have taken steps to green the shopping experience.  Reuters recently reported that retailers such as Target, Wal-Mart and J.C. Penney recognized green as a trend but does not have plans to promote green merchandise this holiday season  (Barneys is apparently a notable exception).  A spokesman for J.C Penney added: “It’s something that is growing in importance with the customer…[but it’s in] its early days.”  

But, could it be the case that after so much hype early in the year, the green trend has faded just as it was getting off the ground? 

Marketing Green believes just the opposite: as a trend, green is just getting started.  Quite simply, the apparent lack of enthusiasm shown by retailers this holiday season reflects the fact that we are still early on the adoption curve.  Here’s why: 

Green products popular today are not necessary gift ready.  Green products that have been adopted by the mass market – including compact florescent light bulbs and hybrid cars – may not make the best stocking stuffers.  Moreover, unlike organic foods, clothes made from organic cotton have not been adopted by the mass market yet.  As such, it is not surprising that we do not see a sudden surge in demand for these items this season. 

Consumers may not equate green with spreading holiday cheer.  When it comes to giving a gift that is overtly green, consumers may worry that they may be perceived by friends and family as the Grinch.   While social norms are changing, being green today is still in many regards a personal virtue rather than societal expectation.  As such, gift-givers may fear that giving a green gift may be perceived by recipients as politicizing the holidays.   

Retailers fear being accused of greenwashing.  Today, few standards are in place to determine how green is green.  Without them, retailers are left to their own devices to determine what is eco-friendly – and, as a result, are left exposed to criticism by outsiders who may think otherwise.  As such, many retailers today are focused more on greening their internal initiatives than greening specific products. 

While interest in green may wax and wane, marketers must remember that we are still in an early adoption cycle for green.  Regardless of how successful this season is for green, as a trend, green is here to stay.  In fact, there are five global influencers that will ensure that as a trend it grows, spreads and matures.  

Changing physical environment.  While the melting of the ice caps may still be an abstract concept for most, consumers are beginning to experience erratic weather patterns that are likely – though not certainly – being caused and/or exacerbated by global warming.   Indeed, Oxfam recently reported that weather-related natural disasters have increased four-fold over the past two decades while geologic-related ones (eg, earthquakes, volcanoes, etc) have remained steady.   Such visible signs will likely increase and intensify with time, providing a constant reminder that something in our world is not in balance.   

Increasingly concerned consumers:  In the US today, consumers have a high awareness of climate change as an environmental concern, but arguably relatively low awareness of the severity of its impact – especially on the poor who are least responsible for its cause but most vulnerable to its adverse affects.  As Hans Verolme, Director of Global Climate Change Programmes for World Wildlife Fund stated, “There’s no escaping the facts: global warming will bring hunger, floods and water shortages.”

Marketers should be prepared that such a realization may cause a sea change in how American consumers view the brands that they purchase.   Americans may be voracious consumers, but they do not like to do so at other people’s expense.  As a consumer issue, therefore, climate change mitigation may be similar to enforcing fair labor laws or worker safety practices  – it is just what you do or risk a backlash from consumers. 

Leadership by business: Some may find it surprising that many global corporations are strong proponents of action on climate change.  Indeed, 150 leading companies – including US multinationals Coca-Cola, GE, Nike, Johnson & Johnson and Sun Microsystems – have already signed a communique on climate change and presented at the UN conference this month in Bali that calls for legally binding targets for carbon emissions. 

So why would global companies lead the charge?  Corporations know that mandates on carbon emissions are inevitable.  The sooner government acts to set acceptable carbon emission levels, the faster business can respond and plan for the future – by modifying capital investment decisions or commercializing new products, for example.  

Moreover, once global emission caps are put into place, standards will be developed within each product category that determine how green is green.  Without standards today, companies decide for themselves to what level they should green their products.  In this situation, the burden is on the consumer to decide how competitive products stack up while leaving well-intentioned companies vulnerable to greenwashing accusations by critics that disagree with their claims. 

Where standards have emerged though, green products have taken off.  One great example is the creation of the Leadership in Energy and Environmental Design (LEED) certification that set standards for green buildings.  The result: 20% growth in green buildings in 2005, followed by 30% growth in 2006.    

Watchdog role of Non-Governmental Organizations (NGOs):  In many ways, NGOs serve as watchdogs for industry on environmental issues.  Today, such organizations enjoy increasing clout, fueled by increased membership and financial backing over the past few years.  More than ever, NGOs are flexing their muscle by challenging corporate activities that they deem as destructive to the environment or deceptive to consumers.   

Interestingly, even companies that are viewed as leaders on green do not get a pass by NGOs when activities are deemed inconsistent with their competitive positioning on green.  For example, despite (or as a result of) earmarking a combined $70 billion toward green investments and loans, both Bank of America and Citigroup were recently the target of a grassroots campaign by Rainforest Action Network to the fact that these banks also fund coal-fired plants, a primary contributor to global warming.    

Today, consumers can also serve as watchdogs as well by rating corporate green activities through sites such as Greenwashing Index, Do the Right Thing and Climate Counts.    

Involvement by governments: Today, there is growing global support for action on global warming.  Signs of this momentum are perhaps nowhere more prevalent than in the US and Australia – two countries that have long been holdouts for global action.  Over the past couple of weeks, there has been a sea change in Australia, as Kevin Rudd, the newly-elected Prime Minister, signed the Kyoto accord as one of his first acts of government.  Moreover, the US Senate Committee on Environment and Public Works voted last week for an ambitious 70% reduction in carbon emissions by 2050.   

So, marketers should take note.  Early signs are that green may not bring holiday cheer to retailers. Nonetheless, green marketers should remain steadfast.  Though consumer focus on green may fluctuate, green as a trend is here to stay.  Five key influencers will not only ensure that is the case but accelerate its growth over time.   


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