Avoiding greenwash and the Triple Bottom Line Mark Stuart Head of Research The Chartered Institute of Marketing
Jun 26, 2015
Avoiding greenwash and
the Triple Bottom Line
Mark Stuart
Head of Research
The Chartered Institute of Marketing
Source: ASA, March 2009
2006 117 complaints about 83 adverts
2007 561 complaints about 410 adverts
2008 369 complaints about 264 adverts
Green motives?
• Only 17% of consumers trust businesses to do the right
thing when it comes to climate change
• 72% feel they should take the issue of climate change
more seriously
• 55% would like more independent assurances on what
companies are doing on the issue of climate change
Source: Climate Change and Brands/Future Foundation
Base: 1600 Adults 16+
Defra’s new revisions on green claims
Likely to include new areas such as:
• Misleading by silence
• Claims need to be within a wider context of reliable or
credible corporate approach (how far can that be
addressed?)
• Encouraging customers towards better behaviours
• Plain language
• Difference between on-product labelling, and advertising
CAP Code updates
• Absolute claims must be supported by a high level of
substantiation
• Comparative claims such as ‘greener’ or ‘friendlier’ can be
justified if the basis for comparison is clear
• Marketers must not suggest their claims are universally
accepted if a significant division of informed or scientific
opinion exists
Source: The good, the
bad and the indifferent,
The Chartered Institute
of Marketing
Implementing the Triple Bottom Line in a company
Source: The good,
the bad and the
indifferent, The
Chartered Institute
of Marketing
Internal opportunities
• Introduce flexible working patterns
• Switch to local suppliers
• Consider how products are packaged
• Have a sustainable sourcing policy
• Adopt a ‘reduce, re-use and recycle’
principle across your business
Benefits of the Triple Bottom Line
� Simultaneously drive better
economy and better world
� More motivated employees
� People, planet and profits
work together in virtuous circle
� Long-term financial planning
� Feeds back into Research and Development and innovation
� Doing the right thing because it is the right thing
The role for marketers
Source: The good,
the bad and the
indifferent: The
Chartered Institute
of Marketing
Green claims
• Be transparent
• Err on the side of caution
• Make labelling more explanatory
• Avoid phrases like ‘environmentally friendly’
• Be aware of implying a claim in imagery
• Reuse, reduce, recycle
Further information
• BRASS: http://www.brass.cf.ac.uk
• Futerra: www.futerra.co.uk
• Mobius: www.mobiusgreenprint.com
• Smart: Know-Net: www.cfsd.org.uk/smart-know-
net/links/full.htm
• The Chartered Institute of Marketing: www.cim.co.uk
The green iceberg
• 86% of customers say that when price and quality are
equal, linking with a cause would make a difference to
their purchasing choice
Source: The Marketer
• 93% of customers think businesses must be responsible
about their impact on the environment
Source: The Marketer
Four kinds of customer…
• Committed: knows what to do and does it
• Conflicted: knows what to do, but doesn't always bother
• Confused: doesn't know what to do, or how to make a
difference
• Cynical: doesn't know and doesn't care
Ten ideas for sustainable communication
1 big picture 6 optimism
2 technically correct 7 glory button
3 be cool 8 change is for all
4 belong 9 we need more heroes
5 only stories work 10 personal circle
Source: Futerra
Design the product or service well
Save the customer money
Communicate the benefits
Summary – 1
• Focus on the opportunities, not the risks
• Find win-win solutions
• Make different choices
• Change behaviours positively
• Make sure any claims are
provable, factual, accurate,
responsible and credible
Summary – 2
• Don’t sell it because it’s green – sell it because it’s good,
and also green
• You can use sustainability as a differentiator, if it
genuinely is sustainable.
• Not consuming more –
consuming differently
Green marketing in action
Ensure a sustainable ethic runs throughout the
company, to avoid customers being cynical about you
– Doesn’t have to be expensive
– Choose suppliers that share same values
– Make sustainable ethics part of the brand
Green marketing in action
Communications
– Work with a sustainable-minded agency
– Electronic communications not paper
– Use organic inks and recycled paper where you do use print
communications
– Use waterless printers
Green marketing in action
Getting customers to buy…
– Customers will only buy a green product when they are aware of
its social and environmental benefits
– And when they can see these benefits positively, compared with
your competitors
– The quality has to be equal to, or better than, competitors’ if it is to
have green differentiation
– Focus on local sourcing or fair trade
– The interest is there for any industry or product sector… It’s our
job to demonstrate the benefits to customers
“The real agent of change
for sustainable business
practices over the next
decade or so will be
communication.”
Source: The good, the bad
and the indifferent:
The Chartered Institute
of Marketing 2007
The Business Case for sustainability
• Reputation: reduce the risk of public disillusion, negative
press, brand damage
• Innovation: new solutions in Research and Development
• Competitive advantage: customers want to buy from, or
invest in, ethically-minded companies
• Cost savings: local sourcing saves transportation costs;
reducing usage and wastage lowers costs
• Companies that reduce their energy bill by 20% could add
the same amount to their profits as a 5% rise in sales
• Global sales of fair trade products
• 2005: £758 million 2007: £1.6 billion in 2007
• UK sales
• 2005: £195 million 2007: £493 milllion
• Marks & Spencer experiencing significant growth from its
eco-product categories in first half 2007
• Sources: BBC, Computing.co.uk