Using Green Credentials to Win More Business

Environmental claims can be a powerful marketing tool. Consumers today have an increased awareness of the environmental impact that goods and services have and with government environmental regulations constantly increasing, in five or ten years it will be the expected norm that environmental sustainability initiatives are part of core business. Therefore in order for companies to differentiate themselves and be seen as industry leaders, it is important to take the opportunity now to maximise your brand mileage and market your green credentials.

Green credential claims have been coming in a wide range of forms, including statements about environmental sustainability, recycling, energy and water efficiency or the impact on animals and the natural environment. Companies are increasingly using environmental claims in an attempt to differentiate themselves and their products from the competition. Five years ago marketing agencies specialising in "green campaigns" were practically non-existent, now companies have their choice of specialists marketing in this area.

Green credentials will not only give you a bigger market share but will also have the added benefit of attracting quailty staff, reducing utility bills and improving your brand reputation. While the industry is in infancy, there are also many community, industry and government awards and funding available to help businesses develop and promote green credentials.

A green marketing campaign is useless though if you are not being truthful. Green washing, the practice of companies disingenuously spinning their products and policies as environmentally friendly, is now becoming so common place that the Australian Competition and Consumer Commission (ACCC) has created guidelines around how you can market your green credentials. Green Marketing and the Trade Practices Act published in 2008 declares, "Firms which make environmental or 'green' claims should ensure that their claims are scientifically sound and appropriately substantiated. Consumers are entitled to rely on any environmental claims you make and to expect these claims to be truthful."

All claims should be clearly and accurately explained and should:

• be honest and truthful
• detail the specific part of the product or process it is referring to
• use language which the average member of the public can understand
• explain the significance of the benefit
• be able to be substantiated
• avoid using terms like 'safe' and 'friendly'

False or misleading information can lead to the ACCC fining companies up to $1.1 million and up to $220,000 for individuals, or penalise companies with injunctions, adverse publicity orders, corrective advertising orders, community service orders and ancillary orders of various kinds.

Being genuine about your claim will not only keep you out of trouble with the ACCC but it should also be an extension of your current company policies. Marketing your green credentials will only work if they are proven. Educating your customers on what you are doing to protect the environment and why will also enhance your campaign, overcoming the 'so what' factor. Additionally, give your customers the opportunity to participate in your environmentally friendly claim, personalise the benefit, this will also help lead to your success.

A simple example of this may be deciding to no longer use plastic bags. Firstly, you need to ensure that none of your business practices contradict this decision, e.g. you still receive plastic packaging from suppliers. Promote to customers why you are choosing to no longer supply plastic bags, e.g. they take over 1000 years to break down in the natural environment and finally praise customers for no longer using plastic bags and feed into their belief system reinforcing their green decisions.

When developing a green marketing strategy apply the same rules as with all marketing strategies. It must support your business plan, have clear objectives and identify measurable outcomes. A documented strategy allows you to deliver on your promises, track progress and maintain momentum. Key considerations may include:

• What are you trying to achieve by undertaking a green strategy?
• What are your key measures?
• Are you truly a sustainable company? What changes will you need to put in place and will this affect your business model?
• What research have you done to support your claim? What can be measured and demonstrated?
• What is the best way to promote your claim?
• Will your team and key stakeholders support your claims and live by your policies?

Winning more business in any industry is always a tough job. Differentiating your company by using genuine green credentials is a great way to be noticed but should only be done with genuine intent.

By Holly McCarthy, GreenBizCheck