Green brands
Encyclopedia
Green brands are those brand
s that consumer
s associate with environmental conservation and sustainable business
practices.
Such brands appeal to consumers who are becoming more aware of the need to protect the environment
. A green brand can add a unique selling point to a product and can boost corporate image
. However, if a company
is found or perceived to overstate its green practices its green brand may be criticised as greenwash
.
has led to an increase in green brands. In the food and drinks industry only 5 green brand products were launched in 2002, increasing to 328 in 2007 (Mintel global database).
of the packaging itself.
Companies may claim sustainable packaging
, recycled and/or recyclable material
, or reduce excess packaging. Packaging is of especially high brand importance when the packaging is part of the aesthetic appeal of the product and brand, as in the case of the cosmetics and toiletries sector. Packaging material may have to not only reinforce environmental credentials, but also communicate the high-quality and luxury image of the brand.
In Britain, the Advertising Standards Authority
(ASA) has warned consumers in mid 2007, that some "green" claims might not be authentic. The ASA stated that green claims have become noticeably more prevalent in advertisement, and has investigated and upheld several complaints regarding "unsubstantiated environmental claims". The ASA Director General has stated that "the ASA needs to see robust evidence to back up any eco-friendly claims".
The ASA in Britain has also raised concerns that as awareness about climate change
increase among consumers, the cases of unsubstantiated carbon claims (e.g. carbon emissions and carbon neutral
claims) rises. The ASA has upheld a number of complaints against energy companies, including Scottish and Southern Energy car manufacturers, including Toyota, Lexus
and Volkswagen
, and airlines, including EasyJet
, for misleading claims regarding carbon emissions and carbon neutrality.
Recent cases before the British ASA involved environmental claims such as "local". In December 2006 for example the ASA upheld a complaint against Tesco
, where the company advertised British products as "local", which the ASA ruled to be misleading because in this particular case the consumers were likely to interpret “local” as referring to their immediate surrounding region.
In August 2008 the British ASA ruled that Shell
had misled the public in an advertisement which claimed that a $10bn oil sands project in Alberta, northern Canada
, was a "sustainable energy source". The ASA upheld a complaint by the World Wide Fund for Nature
about Shell's advert in the Financial Times
. Explaining the ruling the ASA stated that "We considered that the Department for Environment, Food and Rural Affairs
(Defra) best practice guidance on environmental claims stated that green claims should not 'be vague or ambiguous, for instance by simply trying to give a good impression about general concern for the environment. Claims should always avoid the vague use of terms such as 'sustainable', 'green', 'non-polluting' and so on." Furthermore the ASA ruling stated "Defra had made that recommendation because, although 'sustainable' was a widely used term, the lack of a universally agreed definition meant that it was likely to be ambiguous and unclear to consumers. Because we had not seen data that showed how Shell was effectively managing carbon emissions from its oil sands projects in order to limit climate change, we concluded that the ad was misleading"
In the US the Federal Trade Commission
issues the "Green Guides" (last updated 1998) - environmental marketing guidelines. The guidelines give advice on the types of substantiation needed to support environmental claims, and give examples of claims that are to be avoided. The Federal Trade Commission has recognised that these guidelines need updating, as for example they currently contain no guidance on carbon neutrality, or the terms sustainable or renewable. The Green Guides do contain guidance on the term recyclable, recycled and biodegradable.
The marketing and brand building experiences of many American green brands was documented in the book The Gort Cloud by Richard Seireeni, 2009. The gort cloud
refers to the green community that provides support and a market to green brands.
Brand
The American Marketing Association defines a brand as a "Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers."...
s that consumer
Consumer
Consumer is a broad label for any individuals or households that use goods generated within the economy. The concept of a consumer occurs in different contexts, so that the usage and significance of the term may vary.-Economics and marketing:...
s associate with environmental conservation and sustainable business
Sustainable business
Sustainable business, or green business, is enterprise that has no negative impact on the global or local environment, community, society, or economy—a business that strives to meet the triple bottom line. Often, sustainable businesses have progressive environmental and human rights policies...
practices.
Such brands appeal to consumers who are becoming more aware of the need to protect the environment
Environment (biophysical)
The biophysical environment is the combined modeling of the physical environment and the biological life forms within the environment, and includes all variables, parameters as well as conditions and modes inside the Earth's biosphere. The biophysical environment can be divided into two categories:...
. A green brand can add a unique selling point to a product and can boost corporate image
Corporate image
A corporate image refers to how a corporation is perceived. It is a generally accepted image of what a company stands for. Marketing experts who use public relations and other forms of promotion to suggest a mental picture to the public...
. However, if a company
Company
A company is a form of business organization. It is an association or collection of individual real persons and/or other companies, who each provide some form of capital. This group has a common purpose or focus and an aim of gaining profits. This collection, group or association of persons can be...
is found or perceived to overstate its green practices its green brand may be criticised as greenwash
Greenwash
Greenwashing , or "green sheen", is a form of spin in which green PR or green marketing is deceptively used to promote the perception that a company's policies or products are environmentally friendly.-Usage:...
.
Increase in green brands
Ethical consumerismEthical consumerism
Ethical consumerism is the intentional purchase of products and services that the customer considers to be made ethically. This may mean with minimal harm to or exploitation of humans, animals and/or the natural environment...
has led to an increase in green brands. In the food and drinks industry only 5 green brand products were launched in 2002, increasing to 328 in 2007 (Mintel global database).
Packaging
In the case of consumer brands packaging can be a key element in communicating a green brand. This is because packaging communicates information to the consumer at the point-of-sale, and because of the environmental impactEnvironmental degradation
Environmental degradation is the deterioration of the environment through depletion of resources such as air, water and soil; the destruction of ecosystems and the extinction of wildlife...
of the packaging itself.
Companies may claim sustainable packaging
Sustainable packaging
Sustainable packaging is the development and use of packaging which results in improved sustainability. At the end stage of design it involves increased use of life cycle inventory and life cycle assessment to help guide the use of packaging which reduces the environmental impact and ecological...
, recycled and/or recyclable material
Material
Material is anything made of matter, constituted of one or more substances. Wood, cement, hydrogen, air and water are all examples of materials. Sometimes the term "material" is used more narrowly to refer to substances or components with certain physical properties that are used as inputs to...
, or reduce excess packaging. Packaging is of especially high brand importance when the packaging is part of the aesthetic appeal of the product and brand, as in the case of the cosmetics and toiletries sector. Packaging material may have to not only reinforce environmental credentials, but also communicate the high-quality and luxury image of the brand.
Advertisement and marketing standards concerns
In Europe concerns have been raised that consumers might be confused or mislead as a result of a recent increase in green brands. Because green brands can add a unique selling point there is little consistency from brand to brand. In the food and drinks industry it has been observed that companies are reluctant to use existing and widely recognised green logos, such as the mobius loop, because using their own makes the brand more easily distinguishable for the consumer.In Britain, the Advertising Standards Authority
Advertising Standards Authority (United Kingdom)
The Advertising Standards Authority is the self-regulatory organisation of the advertising industry in the United Kingdom. The ASA is a non-statutory organisation and so cannot interpret or enforce legislation. However, its code of advertising practice broadly reflects legislation in many instances...
(ASA) has warned consumers in mid 2007, that some "green" claims might not be authentic. The ASA stated that green claims have become noticeably more prevalent in advertisement, and has investigated and upheld several complaints regarding "unsubstantiated environmental claims". The ASA Director General has stated that "the ASA needs to see robust evidence to back up any eco-friendly claims".
The ASA in Britain has also raised concerns that as awareness about climate change
Climate change
Climate change is a significant and lasting change in the statistical distribution of weather patterns over periods ranging from decades to millions of years. It may be a change in average weather conditions or the distribution of events around that average...
increase among consumers, the cases of unsubstantiated carbon claims (e.g. carbon emissions and carbon neutral
Carbon neutral
Carbon neutrality, or having a net zero carbon footprint, refers to achieving net zero carbon emissions by balancing a measured amount of carbon released with an equivalent amount sequestered or offset, or buying enough carbon credits to make up the difference...
claims) rises. The ASA has upheld a number of complaints against energy companies, including Scottish and Southern Energy car manufacturers, including Toyota, Lexus
Lexus
is the luxury vehicle division of Japanese automaker Toyota Motor Corporation. First introduced in 1989 in the United States, Lexus is now sold globally and has become Japan's largest-selling make of premium cars. The Lexus marque is marketed in over 70 countries and territories worldwide, and has...
and Volkswagen
Volkswagen
Volkswagen is a German automobile manufacturer and is the original and biggest-selling marque of the Volkswagen Group, which now also owns the Audi, Bentley, Bugatti, Lamborghini, SEAT, and Škoda marques and the truck manufacturer Scania.Volkswagen means "people's car" in German, where it is...
, and airlines, including EasyJet
EasyJet
EasyJet Airline Company Limited is a British airline headquartered at London Luton Airport. It carries more passengers than any other United Kingdom-based airline, operating domestic and international scheduled services on 500 routes between 118 European, North African, and West Asian airports...
, for misleading claims regarding carbon emissions and carbon neutrality.
Recent cases before the British ASA involved environmental claims such as "local". In December 2006 for example the ASA upheld a complaint against Tesco
Tesco
Tesco plc is a global grocery and general merchandise retailer headquartered in Cheshunt, United Kingdom. It is the third-largest retailer in the world measured by revenues and the second-largest measured by profits...
, where the company advertised British products as "local", which the ASA ruled to be misleading because in this particular case the consumers were likely to interpret “local” as referring to their immediate surrounding region.
In August 2008 the British ASA ruled that Shell
Royal Dutch Shell
Royal Dutch Shell plc , commonly known as Shell, is a global oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the fifth-largest company in the world according to a composite measure by Forbes magazine and one of the six...
had misled the public in an advertisement which claimed that a $10bn oil sands project in Alberta, northern Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
, was a "sustainable energy source". The ASA upheld a complaint by the World Wide Fund for Nature
World Wide Fund for Nature
The World Wide Fund for Nature is an international non-governmental organization working on issues regarding the conservation, research and restoration of the environment, formerly named the World Wildlife Fund, which remains its official name in Canada and the United States...
about Shell's advert in the Financial Times
Financial Times
The Financial Times is an international business newspaper. It is a morning daily newspaper published in London and printed in 24 cities around the world. Its primary rival is the Wall Street Journal, published in New York City....
. Explaining the ruling the ASA stated that "We considered that the Department for Environment, Food and Rural Affairs
Department for Environment, Food and Rural Affairs
The Department for Environment, Food and Rural Affairs is the government department responsible for environmental protection, food production and standards, agriculture, fisheries and rural communities in the United Kingdom...
(Defra) best practice guidance on environmental claims stated that green claims should not 'be vague or ambiguous, for instance by simply trying to give a good impression about general concern for the environment. Claims should always avoid the vague use of terms such as 'sustainable', 'green', 'non-polluting' and so on." Furthermore the ASA ruling stated "Defra had made that recommendation because, although 'sustainable' was a widely used term, the lack of a universally agreed definition meant that it was likely to be ambiguous and unclear to consumers. Because we had not seen data that showed how Shell was effectively managing carbon emissions from its oil sands projects in order to limit climate change, we concluded that the ad was misleading"
In the US the Federal Trade Commission
Federal Trade Commission
The Federal Trade Commission is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act...
issues the "Green Guides" (last updated 1998) - environmental marketing guidelines. The guidelines give advice on the types of substantiation needed to support environmental claims, and give examples of claims that are to be avoided. The Federal Trade Commission has recognised that these guidelines need updating, as for example they currently contain no guidance on carbon neutrality, or the terms sustainable or renewable. The Green Guides do contain guidance on the term recyclable, recycled and biodegradable.
The marketing and brand building experiences of many American green brands was documented in the book The Gort Cloud by Richard Seireeni, 2009. The gort cloud
Gort cloud
The gort cloud is "a vast, largely invisible and growing 'community' that sieves, measures and exchanges information on environmental products and services." "The community includes NGOs, government agencies, certifying groups, academics, eco-tech specialists, business alliances, green media...
refers to the green community that provides support and a market to green brands.
See also
- Ethical consumerismEthical consumerismEthical consumerism is the intentional purchase of products and services that the customer considers to be made ethically. This may mean with minimal harm to or exploitation of humans, animals and/or the natural environment...
- GreenwashGreenwashGreenwashing , or "green sheen", is a form of spin in which green PR or green marketing is deceptively used to promote the perception that a company's policies or products are environmentally friendly.-Usage:...
- Triple bottom lineTriple bottom lineThe triple bottom line captures an expanded spectrum of values and criteria for measuring organizational success: economic, ecological, and social...
- Sustainability brandSustainability brandSustainability brands are products and services that are branded to signify a special added value in terms of environmental and social benefits to the customer and thus enable the differentiation from competitors...
- Dixon GolfDixon GolfDixon Golf is an eco-friendly golf company located in Tempe, Arizona. They are the manufacturers of three different recyclable golf balls, as well as apparel made from eco-friendly or recyclable products.-Earth:...