Consumer news and comment CCB 107

Two of the news items in this section highlight important trends – consumers are asking for more information on the environmental impact of the goods they buy, and indicating they are willing to pay more for green products. Does this reinforce the emergence of a new type of “green consumer”? Possibly, yes. However, if this is the case, new research by the Shelton Group in the USA suggests we should avoid jumping to wrong conclusions about the nature of green consumerism.

Their fascinating study of over 1,000 consumers who at least occasionally buy green products explodes several myths. The top five findings suggest the following:

1. Green consumers’ top concern is the environment. No, they are more worried about the economy.
2. Their main motivation in conserving energy use is to reduce their environmental impact. No, the real driver is to reduce bills and control costs.
3. They are all-knowledgeable about environmental issues. No, they are no more likely than others to understand the science behind climate change.
4. Green consumers fall into a simple demographic profile. No, those who buy environmentally friendly products aren’t easily defined by their age, income or ethnicity.
5. Children play a big part in influencing their parents to be green. No, only 20% of respondents to the survey said their kids encouraged them to be greener.

This study provides extremely useful insights into the minds of consumers. Those surveyed are actively engaging with the sustainability agenda, but their motives for so doing are not necessarily to “save the world”. Companies that want to capture a share of this market need to recognise this and respond accordingly.

The full results of the research can be accessed at www.sheltongroupinc.com.

How fair is the food sector?
In a bid to open up public debate on what is wrong with the current global food system, the Food Ethics Council launched an inquiry into food and fairness at the beginning of the summer, covering issues such as obesity, hunger and worker exploitation. The Food and Fairness Inquiry has been underway for three months now, with collation and analysis of the massive body of evidence that relates to social justice in food and farming well underway. The Inquiry is now embarking on the public phase of the project, which will involve a series of three hearings where the Inquiry Committee will hear evidence from, and debate the issues with, a selection of witnesses. The first of the hearings will take place on 16 September, and will focus on ‘Fair Shares’ – Inequalities in health and nutrition.’ Witnesses include representatives from Community Food and Health Scotland, Overseas Development Institute and Centre for Research in Social Policy.
Contact: Food Ethics Council
www.foodethicscouncil.org/foodandfairness

Redbull loses its wings according to new Grocery Eco Index
For the first time, analysts have calculated the carbon footprint of the UK’s shopping trolleys and ranked the leading grocery brands in order of their impact on the environment. Researchers devised a scoring system, which evaluated each product on a range of factors, including packaging and energy needs. The survey found that the greenest grocery item on the supermarket shelves is Persil laundry products, followed closely by PG Tips tea, Finish dishwasher tablets, Volvic water and Kellogg’s Special K breakfast cereal. The EnvirUP Green Index Report used 48 questions to cover all areas of environmental sustainability and the overall score was linked to an A to G grade, similar to the energy performance of domestic appliances such as fridge-freezers. The biggest ‘eco-villain’ was found to be Haribo sweets, which scored 72 points out of the possible 590.
Contact: EnvirUP
www.envirup.com

Study finds consumers want more green info at retail level
According to the ‘Green Scene’, part two of a series of mini reports from Miller Zell’s larger report, ‘Gone in 2.3 seconds: capturing shoppers with effective in-store triggers’, about 40% of shoppers say they are left wanting when it comes to green information at the retail store level. The report, which surveyed US shoppers, found retailers overall earned a D- for the quality of information on green products provided at the store level.
Members of the ‘Gen Y’ and ‘Millennial’ age groups were found to want more information than others. The report outlines how ‘Empty Nesters’ and ‘Baby Boomers’ cared less about having green information at the store level.
Contact: Miller Zell
www.millerzell.com

Three years to cut carbon emissions or rationing could be needed
Seventy years after wartime rationing was introduced, the Government may need to look to rationing again – this time of carbon rather than food – in the fight against climate change, warns a new report published by the Institute for Public Policy Research (ippr) on 9 September. ‘Plan B? The prospects for personal carbon trading’ argues that a trading scheme is not the best option for reducing carbon emissions (such as those from heating homes, from driving cars and from taking flights on holiday) as it is relatively expensive and would be difficult to implement. But it concludes that if at the end of the UK’s first carbon budget period in 2012, carbon emissions have not reduced, the Government will need to face up to the prospect of introducing personal carbon trading as a ‘plan B’. Unlike food rations during the war, carbon credits would be tradable, so people with small carbon footprints could sell their spare credits while others would need to buy extra credits to cover their extra emissions. Over time the quotas would shrink, in line with the need to hit emissions reduction targets.
Contact: Institute for Public Policy Research
www.ippr.org.uk

Study finds consumers ready to pay for electrical grid upgrades
Penn, Schoen & Berland Associates, a research and polling consultancy, released the results of the ‘2009 Green Power Progress Survey: A study of consumer demand for green power infrastructure, renewable energy & technologies’ on August 10. Chief among the findings is that while there is concern and confusion over the cost, Americans overwhelmingly agree that the nation’s electrical grid infrastructure should be upgraded to support new generation and further deployment of alternative energy technologies. According to the survey, Americans believe that addressing environmental issues and energy needs is a shared responsibility, and they support government mandates for utility companies to use alternative energy sources. However, confusion over costs is a key challenge; while there are indications that Americans are willing to pay more for infrastructure to generate energy from alternative sources, a sizable gap exists between what they think this will cost and what they say they are willing to pay.
Contact: Penn, Schoen & Berland Associates
www.psbresearch.com

FTC charges clothing firms with ‘bamboo-zling’ the public
Four companies selling clothing marketed as made from bamboo have been charged by the US Federal Trade Commission with deceptive advertising and marketing claims. The companies sold rayon clothing and textiles that the FTC said falsely claimed to use an environmentally friendly process, retained the natural antimicrobial properties of the bamboo plant and were biodegradable. The companies marketed the products under the names ‘ecoKashmere’, ‘Pure Bamboo’, ‘Bamboo Comfort’ and ‘Bamboo Baby’. While rayon can be made from bamboo, the textile is processed with a harsh chemical that releases hazardous air pollutants. Three of the companies – Sami Designs, CSE and Pure Bamboo have settled the FTC’s complaints, agreeing to stop making the false claims and to abide by the Commission’s Textile Fiber Products Identification Act and Rules. Litigation continues against The M Group and its principals.
Contact: Federal Trade Commission
www.ftc.gov

‘Sustainable’ palm oil campaign banned by ASA
A press campaign making environmental claims about Malaysian Palm Oil has been banned as misleading by the advertising regulator. The press campaign, run by the Malaysian Palm Oil Council (MPOC), made a number of claims, including that the product was the ‘green answer’ and that palm oil is the ‘only product able to sustainably and efficiently meet a larger portion of the world’s increasing demand for oil crop-based consumer goods, foodstuffs and biofuels’. MPOC also argued that the palm oil business had played an important role in the ‘alleviation of poverty, especially among rural populations’. Friends of the Earth and two members of the public complained to the Advertising Standards Authority (ASA) that a number of the claims made by MPOC were misleading and could not be proven. The ASA acknowledged that some Malaysian palm oil companies had sought certification from the Roundtable on Sustainable Palm Oil, but outlined that the scheme and the certification of biofuels in general was still the subject of debate.
Contact: ASA
www.asa.org.uk

Andrew Wilson is Managing Director at Corporate Citizenship.
Email Andrew to discuss all aspects of Corporate Citizenship’s work, in particular, research and assurance.
andrew.wilson@corporate-citizenship.com