March 10, 2010

Clearly it's good business to be green these days.  Environmental stewardship can benefit your company's brand, your workforce's morale, and your bottom line to boot, since customers will pay a premium for green products.   However, too many companies rush into 'going green' without giving enough thought to details, strategy, and the bigger picture goals of what they are trying to achieve. Here are the top five mistakes that companies make when trying to go green:

1. Assuming that 'green' is going to cost an arm and a leg

Too many businesses hesitate to consider environmental policies because they assume that the green option is always going to be more expensive than the alternative.  While this is true in some cases (renewable energy), there are plenty of examples where making environmentally responsible business decisions can actually save money for your business.  Examples of this include going paperless, finding ways to reuse/recycle materials in operations and production, finding green tax breaks, and facilitating green commuting options for your workforce (carsharing, public transit, telecommuting).  'Sustainability' is ultimately about making more efficient use of resources, and cutting waste is not only good for the earth - it is good business.  If you are strategic about how you do it, your business can save money by going green.

2. Underestimating your customers' ability to smell B.S.

The biggest gripe I have about companies who try to 'go green' is when they underestimate customers' critical thinking skills and ability to smell B.S.  Just because your new product comes in green-colored packaging or uses the word 'eco' or 'organic' in it doesn't make it environmentally responsible, and your customers know this.  Expect them to read labels, ask questions about materials,  and use the internet and compare your product with competitors.  If you don't have anything substantially environmentally responsible to say, don't bother trying to greenwash.(Please take note 'eco' bottled-water companies!)

3. Assuming that beige packaging, the word 'organic' and/or a green leaf logo are what you need

See point #2.  Symbolic 'green' gestures are no longer good enough. Every company with a green mission these days tries to flaunt their green credentials with green leaf logos and beige packaging, from greenwashers to the legitimately green. There is now such an onslaught of this empty symbolism that is becoming trite and meaningless.  A better business decision is to differentiate your company with a unique brand identity, and take time to convey your mission and green credentials to your customers with labels, packaging and strategic marketing.  A great example of a company that gets this is Method. This fun, brightly colored household-cleaning product brand is wedded in the minds of consumers with both style and eco-friendliness -- without ever relying on cliché green leaf logos or beige packaging.

4. Overestimating your customers' time and attention spans

The polar opposite to the above problems is overestimating how much time and energy your customers have to research and understand your green offering.  As I mentioned in point #2, your customers are not stupid, but they also have lives and they don't have the time and energy to spend hours analyzing your carbon footprint and your products' lifecycle.  If you don't actively market and EXPLAIN your company's legitimate green initiatives - no-one is going to know about them.  Don't assume that because your business is doing the right thing, people are just going to naturally find out about it -- you need to tell consumers and market your green initiatives (thoughtfully of course).

5. Thinking that unless you can make everything 100% green and beyond reproach, there is no point in calling attention to your company's green credentials.

This is a problem I am seeing more and more in the marketplace, as customer backlash to 'greenwashing' becomes more rampant.  Many companies who have legitimately green products and responsible manufacturing practices are now afraid to call any attention to themselves for fear of being called a 'greenwasher'.  What these companies need to understand is that the benefits of touting legitimate eco credentials are far greater than the risk of being called a greenwasher by a few cranks online.  Now that anyone can publish anything online, there are always going to be critical people out there with a chip on their shoulder or far too much time on their hands who might attack your company.  However, if your green policies are solid, and you are transparent with your communication - detailing green goals, policies and challenges online - supporters will rally to your side, and attacks from internet trolls should easily roll off your company's back.  Just be careful to be totally transparent and not make false claims about your product, as this could really jeopardize consumer goodwill and come back to haunt your business. (An example of this is when aluminum bottle manufacturer Sigg let it leak that their bottles had BPA in them - 3 years after they started marketing their bottles as BPA-free).

Join the conversation ( 9 )

• Evelyn Lee, AIA, LEED AP [BD+C] 1 year 10 months and 15 days ago

  

  Jill - Great post. If the saying is true and Green is the New Black, businesses are going to have to dig deeper and really ingrain sustainability into their culture to avoid any backlash. At the same time, being sustainable isn't a hard thing to do - as long as you keep transparent about what you really are and are not doing.

• Dani Glaser 1 year 10 months and 17 days ago

  

  Excellent article and I particularly like the first point. It is very important to change the mindset that green is more expensive.

• Peter Martin 1 year 10 months and 21 days ago

  

  You say it in your first para, but as a complement to #1 it is worth re-iterating that, so long as all those other factors are soncerely and honestly met, there is not reason not to make a *** of money more (extra or defending sales) then one would be procrastinating.
  
  For the life of me (OK, I am a bit of a fan) I cannot fathom why more designed-in reuse does not exist yet on our shelves.
  
  The consumer is not dumb, and likes deals. If they get something they would not otherwise get... on top of what they are firstly buying... they will 'get it'.

• Lauren Mattegat 1 year 10 months and 23 days ago

  

  That is a great list about going green! I agree that some companies are pushing it too much and not telling us what is green about what we're buying, where as some companies have been green for years and don't really mention it. I feel that businesses could really learn from this article!
  
  One of the companies I do work for has been doing green practices for years, you can find out how they're going it on their website here:
  http://www.capcatchers.com/Capcatchers_Gone_Green_s/48.htm
  
  Some of the ways capcatchers.com is working to ensure the longevity and health of our planet include running their factory and offices off of solar power. Capcatchers also uses all natural and recycled materials in their products. The Capcatcher Bottle Opener also promotes recycling with an easy way to catch the bottle caps and recycle them once it is filled up!

• Jennifer van der Meer 1 year 10 months and 29 days ago

  

  Jill - great post an particularly want to say #4 - overestimating people's time - is the most overlooked, particularly for the brands that already are walking the walk but actually don't know how to talk the talk.
  
  Green will never be a mainstream lifestyle if it remains so incredibly complicated. I shouldn't have to do 6 hours of research to find thebest baby crib or laundry detergent.
  
  At the other extreme current ratings systems and third party certifiers make it too simple, and not transparent. "just trust us, this product gets an 8/10."
  
  We need to utilize all of these great new social location and media technologies to tell the stories of these brands in a way that is truthful, meaningful, and compelling.
  

• Caleb Bushner 1 year 10 months and 30 days ago

  

  Great post. I couldn't agree more re: the need for authentic messaging--'green' claims need to match 'green' actions. If an organization's words aren't in line with actions it will only be a matter of time until our low search cost, networked information world will bring such discrepancies to light anyway.
  Point #5 is an observation I often find myself making: we'd not get very far if we couldn't say/do anything until it was 'perfect'. What we need instead is openness and two-way conversation between organizations and 'the public' regarding the places where progress has been made AND the places where it's been harder to achieve.
  It would seem that, once doing the 'right' things, the key is to get the right level of the right information to the right people. No small feat, but quite an exciting (and important) challenge.

• MCKENNA ROWE 1 year 10 months and 30 days ago

  

  With regard to #1, businesses need to take a look at the overall long terms savings that initial investment brings, as well as the incentives/rebates provided by state/federal govt for going green. For example, I updated my water heater to a tankless, energy-efficient model. Not only will this save me a lot of money and energy in the long run, it gave me more room in the recording studio. I also will be receiving a tax write-off of $1500. So the initial investment really pays off for a lot of these things.

• NURHAILY TUEY 1 year 10 months and 30 days ago

  

  Smooth marketing might work at first, but it will always come back to bite you in the end. Better to work out the kinks and go to market with a sound product than deal with a much more costly PR disaster when the truth does eventually come out. Just as in life, honesty is the best policy in business, particularly when talking about going green.

• Kevin Dallis 1 year 10 months and 30 days ago

  

  Great article and advice. Going green, like any consumer-facing initiative, is all about authenticity. Without a genuine goal and honest approach, consumers will always see right through you. Having said that, there are few ways to build rapport with customers more quickly or effectively than to take the leap, go green, and stay honest. Well said.