Green Collar Economy to Feature at Singapore’s National Sustainability Conference

The Green Collar Economy and Environmental Up-Skilling are the two themes for the inaugural Singapore National Sustainability Conference on July 29-30.

The two-day conference is jointly organized by the Office of Environmental Sustainability at the National University of Singapore and the Workplace Research Centre at the University of Sydney.

All registered delegates will receive a complimentary copy of Ken Hickson’s iconic book The ABC of Carbon.  Hickson is one of the keynote speakers at the conference and has become a leading consultant on climate change and sustainability in the workplace.

Details on the program and registration are found on the National Sustainability Conference web site.

BP’s Brand Hyprocrisy

The Beyond Petroleum positioning of BP may have been little more than hundreds of millions of dollars spent in greenwashing.

According to The Power Grid column in yesterday’s New York magazine, BP’s investment in hydrogen, wind, solar, and biofuels amounts to just 6 percent of its overall capital expenditures.

While this is certainly a significant amount in terms of dollars (or pounds) spent, it pales in comparison to what BP spends annually on oil exploration and production.

And this does not include, writes John Heilemann, “the tens of millions of dollars that BP has spent on lobbying against safety regulations, even as it’s compiled the most abysmal safety record of any major oil company.”

One key point in the article: safety violations by BP over the past five years totaled 760, as compared to only one for Exxon Mobil.

As we wrote yesterday, media monitoring firm General sentiment calculates that BP has lost $1 billion in brand value since the Gulf Oil spill.

It’s not the fact that BP had an accident that makes this brand suspect; it’s the manner in which they have tried to pass off blame and responsibility that bothers most.

Add to the above the 700,000 “friends” who have signed on to one of the three Boycott BP pages on Facebook, and you have a brand that is approaching free fall.

Sadly, the BP Board doesn’t seem to get this yet. By the time they do, it will be too late. (Another reason why Marketing needs to be brought into Corporate Boardrooms.)

The tombstone for the BP brand is being readied, and the graveyard of Enron, WorldCom, HIH Insurance, and myriad others awaits.

National Green Brands Forum

The third annual National Green Brands Forum, produced by 3 Pillars Network, will be held in Melbourne on 17 June.

Over 80 small business and corporate executives are expected to attend and hear speakers from Unilever, Origin Energy, Australian Paper, Cadbury, SENSIS, Orange Power and other organisations discuss creating innovation, value, and authenticity through marketing sustainable brands.

“There’s a very real concern across Australia about doing the right thing, communicating it in the right manner, and conveying it in a credible way,” conference produce Cheryl Samarasinghe told me yesterday in a phone conversation. Thus, the conference program has been designed around sharing of world-leading marketing strategies, the latest directions from the Australian Competition and Consumer Commission (ACCC), and an introduction to Australia’s National Carbon Offset Standard.

For new players, businesses and marketers entering the green marketing space, this looks like an excellent forum for learning new tools, best practices, and how to avoid having one’s marketing efforts come across as mere greenwashing.

Program and registration details are available online, and there is also an event blog for those who want to preview some of the key issues that will undoubtedly be discussed and debated at this industry leading event.

Earth Day Turns 40 Next Year

Hard as it is to believe, next year will be the 40th anniversary of Earth Day, first celebrated in the USA on April 22, 1970.

That event, conceptualized as a nationwide grassroots demonstration on behalf of the environment, drew over 20 million participants at thousands of schools and local communities.

Today, while environmental concerns are a global phenomena with widespread grassroots support, a universal respect for our planet’s fragile environment and a deep-seated sense of sustainability are not yet what anyone could call natural human traits or tendencies.

However, there can be little doubt that the momentum for sustainable business practices and individual actions is escalating. Here are some statistics and data that I have come across recently worth sharing with you:

• there are 63 millions consumers in the USA eating organics, driving hybrids, and ordering fair-trade coffees. This represents 30% of the American market, a group which has proven willing to spend a good premium (usually over 20%) on clean, green products over non-sustainable alternatives.
• Baby Boomers and Millennials are twice as likely to associate their own personal values with companies and brands (that’s good for Green Marketing initiatives).
• Perceptions of environmental, ethical, and social stewardship are the fastest growing contributors to conssumer brand values (Z+ Partners).
• The market for “all natural” cleaning products is over $100 million per annum and is escalating rapidly (Forbes.com)
• Sales of organic and all natural products have increased 18% to 25% per year for five consecutive years.

No wonder marketers see Green as the “New Black” for today’s shoppers!

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Is Green the “New Black” for Women Shoppers?

As stated in the previous blog post, Green Marketing is no passing fad. In fact, to some observers, including me, Environmental Marketing looks like the New Black for women shoppers.

According to a recent study by the marketing consulting firm Frank About Women, one-quarter of all products in a woman’s shopping cart are environmentally friendly. (Note: this is data from the USA, unfortunately our shopping carts here in Australia have no current way of achieving such lofty green levels.)

The study also shows, according to an article in Ad Week, that “women are less likely than men to scoff at ecological concerns.” Most importantly, “if they feel they are getting a comparable product with green benefits, 69% are game to buy it.”

Another study, being released this week at the Good and Green Marketing Conference, will reportedly show that 80% of adult women in the USA believe very strongly that individuals can affect the environment, but that almost 60% believe that they are personally not doing enough to protect it.

It’s no wonder why Procter & Gamble has announced it will embark on a multi-brand initiative in the USA to educate and encourage consumers (read: women) to “make sustainable choices.” Called Future Friendly, this new platform from P&G includes a line of “green” Pampers disposable diapers and a pledge to provide 4 billion liters of clean drinking water in the developing world.

Modeled on previously successful initiatives in Canada and the UK, P&G is attempting to differentiate itself by claiming their existing products use less waste, energy and packaging, rather than by creating new “green” brand extensions. P&G is targeting its loyal customer base, hoping these consumers will be more likely to remain with their trusted brands if these are shown to be sustainable products.

“We are targeting the mainstream consumer - rather than the ‘environmental’ consumer - who does not want to give up on the brands that they like, but wants to use them in a sustainable way,” explained Glenn Williams, a P&G official, in the Financial Times.

While P&G is a late entrant to the green household products market, the company is sending a clear message that corporations must adopt sustainable practices in order to stay competitive. Of course, P&G also has a bottom-line target for this program, which reportedly includes placing 30 million of the company’s sustainable products into U.S. households by the end of next year and achieving total sales of $50 billion in sustainable products by 2012.

Interestingly, this “future friendly” program from P&G was announced (at the Clinton Global Initiative) while the U.S. Chamber of Commerce is voicing opposition to the climate change legislation before Congress. It appears that P&G, unlike the U.S. Chamber of Commerce, understands the need to align their business practices – and their brands – with the growing environmental concerns of consumers.

P&G also understands that Green Marketing is the New Black for women shoppers in America.

Green Marketing Messages Not Getting Through To Green Consumers

A new survey from Grail Research reveals that 85% of consumers are either unaware of, or cannot recall, the green messages and green programs from companies considered to be at the forefront of sustainability initiatives.

Importantly, the research study also showed that consumers rely on product labels (63%) and word of mouth (45%) as their primary sources of information about green companies and their products. Advertising (38%) and corporate web sites (18%) are well behind as sources of information regarding green credentials.

Released in late September,  The Green Revolution report is based on a nationwide survey of U.S. consumers.

Key findings include:

· 84% of consumers currently purchase at least some green products.

· Price is the main reason cited (69%) by non-green consumers for not purchasing green products.

· Green consumption has penetratged all demographic segments, but the majority of green consumers are married women with no children under 18 in the home (57%).

· The vast majority (93%) of consumers feel that a company’s “greenness” is at least somewhat important to their purchase decision.

Most importantly, consumners expect green products to be on par or superior to their non-green counterparts with regards to safety (72%), healthiness (70%), quality (66%) and price (65%).

Significantly for marketers, across all product categories almost all consumers who buy green expect to remain green. Plus, those who don’t buy certain categories of green products intend to do so in the future.

It certainly looks like green is the “new black.” This is no passing fad.

What do you think? Add your comments below.

The Green Marketing Landscape: Ratings, Labels, and Certifications

GreenBiz.com is hosting a free webinar on October 15th featuring a panel of experts covering the topic The Green Marketing Landscape: Ratings, Labels, and Certificates.

With the field of Green Marketing in constant flux, many marketers are confused on how their organizations’ “green” marketing messages need to comply with changing customer expectations and legal requirements.

Moderated by GreenBiz.com executive editor Joel Makower, this webinar is designed to address “how to navigate the ins and outs of green marketing effectively and  legally in today’s world.”

Topics to be discussed include:

* How to avoid issues surrounding false or deceptive advertising allegations related to environmental or green messages.
* How to motivate mainstream consumers to make sustainable choices.
* The latest developments in green claims validation and product certification.

While this webinar will undoubtedly come from a U.S.-centric perspective, it should nevertheless be informative and useful to marketers around the globe.

For more details and to register for this free webinar, click here.

If you attend and want to share your thoughts, please add your comments below for all to read.

Understanding the Green Consumer — Part 3

In the last two blog posts we have discussed the six so-called Myths of Green Consumers and how these have been “busted” by the recent Green Living Pulse study of over 30,000 consumers in the USA.

Let’s now take a look at some of the key insights into the mindset of Green Consumers that this study has unveiled.

1. Green Consumers are more concerned about saving money than saving the planet. We can quibble over the extent of the word “more” all day, but the fact remains that most consumers care more about their own pocketbooks than about altruistic concerns for Mother Earth. The good news here is that marketing campaigns that combine messages about saving money while simultaneously helping to save the planet will win out over messages than focus on only one of these benefits.

Thus, a fuel efficient car not only saves the buyer money in reduced petrol bills, but also reduces his / her nation’s dependency on imported oil while also reducing his / her carbon footprint. This multiple benefit message has far stronger appeal to the Green Consumer.

2. Green Consumers are motivated by different wants, needs, desires, like and dislikes.No surprises here that there is no “one size fits all” marketing message that will motivate the buying behavior of Green Consumers. As in any strong marketing campaign, psychographic profiles are just as important as demographic profiles when determining what will motivate buying behavior. Simply labeling your product “green” or sticking some sort of industry accreditation icon on your packaging will not be enough to stimulate strong Green Consumer desires.

3. There are two Green Consumer mindsets. Actually, there are probably many Green Consumer mindsets, but the Shelton Group has decided to segment these into just two, which they call the Engaged Green Mindset and the Mainstream Green Mindset.

The Engaged Green Mindset consumer is “marked by optimism, extroversion and a propensity to try new things,” according to the study report. These consumers are “more likely to respond to themes of innovation and possibility” claims the Shelton Group.

Meanwhile, the Mainstream Green Mindset” consumer is reportedly “more pessimistic, introverted and apt to like things known and tried.” These consumers, say the report authors, will “respond to themes of security and reliability.”

While I cannot agree 100% with these descriptions, I would agree with the conclusion from the report that “green engagement is less about demographics and more about mindset.” Of course, that’s pretty much true for any successful marketing program, green or not.

The bottom line remains, whether you are targeting Green Consumers or not, understanding what motivates the buying behaviors of your prospective and current customers — combined with fully understanding their needs, wants, desires, likes and dislikes — is the only way to build a successful marketing program.

Understanding the Green Consumer — Part 2

We continue our discussion on the six so-called Myths of Green Consumers as supposedly “busted” by the recent Green Living Pulse study over over 30,000 consumers in the USA. See the previous post for the first of these three “myths.”

Myth #4. Green consumers fall into a simple demographic profile — the survey apparently found that “green consumers are not easily defined by their age, income or ethnicity.” Anybody surprised by that? Certainly not me. I have never seen any market research study that revealed any unified demographic profile for consumers who care about the environment. I would venture to say that an analysis of those who donate to the World Wild Life Fund, or even Greenpeace, could not be easily be defined by age, income or ethnicity. This would be a ludicrous myth if anyone, in fact, truly believed it.

Myth #5. Children play a big part in influencing their parents to be green — surprisingly only 20% of respondents with children claimed their children encouraged them to be greener. I would have thought this figure to be slightly higher, but then it would also depend if the research restricted this question to those with children age 7 to 17. While my teenage boys are a factor in our household being better recyclers, our 18-month old daughter certainly is not! So the results will be a direct reflection on how the question was asked and the demographic profile of the respondents determined.

Myth #6. If people just knew the facts they would make greener choices — the survey results showed there was some slight correlation between respondents who answered “all of the science questions correctly” and those who “report participating in a significantly higher average number of green activities, such as driving a fuel-efficient car or lowering their thermostat.” But apparently those age 25-34 who correctly answered the science questions were less “green active” than some groups of older respondents.

What does this mean? Frankly, not much, other than many consumers who are actively green in their behavior may not be able to answer a handful of questions related to the science of environmental protection. And, of course, that educating consumers on the science behind the need for environmental conservation is probably a waste of time. What consumers need is to be educated on the benefits of making pro-environmental choices, not on the scientific proof that carbon is bad for the long-term sustainability of the planet.

If any marketers or advertising agencies are stereotyping Green Consumers based on these “myths,” then they need a whole lot more help than just the results of the Green Living Pulse study. They need a more solid education in marketing fundamentals, starting with our list of Recommended Marketing Books in the Howard Marketing Services Resource Center.

Please add your own comments on these so-called Myths of Green Consumers in the Comment Box below.

In our next post we will highlight some of the key insights into the mindsets of Green Consumers that this survey reveals.

Understanding the Green Consumer — Part 1

A new national study in the USA claims to “bust the stereotypes” of green consumers, but leads to me to ask a couple of key questions.

The first question is: how real were these stereotypes to begin with?

The second question relates to the proclamation by the company conducting this study that these are “six big myths long held true about green consumers.” Long held? “Green marketing” in its current form has only been around for a half dozen years or so. So any views in this field are not truly “long term,” at least not in my view. But perhaps I quibble?

More importantly, however, the Green Living Pulse study, one of four national consumer studies conducted annually in the U.S. by the Shelton Group, does provide some key insights into the mindsets of green consumers.

We will get to these insights in a subsequent post, but first here are three so-called “myths” of green consumers that this study claims to put right.

Myth #1. The top concern of Green Consumers is the environment — the economy (no surprise there) is by far the number one concern (59% labeled it their top concern), with the environment well behind at just 8%.

This “myth” is like saying people who take prescription drugs have the cost of medical care as their primary concern. I consider myself to be a Green Consumer, and yet would easily rank the healthy and safety of my family, women’s rights, and perhaps even our country’s education system above my concerns for the environment.

As a strategic marketer, I would never have jumped to the conclusion that the environment is the number one priority of everyone who occasionally or frequently makes purchases based on environmental concerns.

(Note: the study was conducted amongst the 77% of the U.S. population identified as green buyers in the most recent Eco-Insights study of 30,000 consumers.)

Myth #2. The main motivation of Green Consumers when reducing their energy use to save the plant — 73% of the respondents in this survey chose “to reduce my bills / control costs” with only 26% claiming this behavior is done primarily to “lessen my impact on the environment.” Again, no surprise here, especially with petrol prices being where they are.

Also, let’s not forget that there’s a “feel good” factor about turning off the lights at home, switching off unused appliances at the power point, and not make unnecessary trips in the car. But the key motivating factor for the large majority of people will always be the impact on their own household budgets.

Myth #3. Green Consumers are all-knowledgeable about environmental issues — just because almost half (49%) of the respondents chose the incorrect answer on a question related to the impact of CO2 on the ozone layer doesn’t prove much in my book, other than the fact that the entire spectrum of environmental issues is so complex and convoluted that I don’t believe there is anyone in the world who is all-knowledgeable about environmental issues.

For any marketer to believe such a concept about Green Consumers would be astounding, to say the least. That would be like a car marketer believing that all car buyers are all-knowledgeable about motor vehicles! This simply isn’t true, for even though I’ve purchased two new cars in the past year what I don’t know about cars could fill a text book!

We’ll look at the other three so-called “Green Consumer myths” in our next post.