1

Emily Kucakalic

Group head of Brand and External relations, AGL

There is no doubt that awareness surrounding environmental impacts associated with a consumer lifestyle is growing. In recent times this has been supported by extensive media coverage and political debate, and a growing number of topical events have sprung up, such as the Carbon Solutions Forum. This is resulting in consumer action; in the energy sector this is evidenced by the increase quarter on quarter, year on year, in the uptake of a green energy option.

Consumers are increasingly driving change, not only through the demand for environmentally friendly products and services, but also by demanding sustainable business practices. Corporate social responsibility (CSR) is increasingly driving company investment and strategy and has resulted in the emergence of a number of ‘green’ products and services.

The emerging concern for the consumer is whether those products and services live up to their promise. While demand is growing for green alternatives, so too is scepticism about those alternatives. Consumers do care when a company goes green, but they want visibility of the actions undertaken, to know that a concerted, strategic and commercial investment in the cause has been made.

The next phase of environmental awareness will be consumers looking to lift the corporate marketing veil to see for themselves whether the claims stack up. It falls to the companies to educate the consumer and to be open and transparent about the process that enables their green promotion.

Companies who make a commitment, who can demonstrate that they are making a difference and who are offering a real alternative, will be rewarded by the consumer. Those companies that are looking to capitalise with a ‘green wash’ will lose in the long-term. This movement is not a fad. Any company in it for the long-term cannot afford to tarnish their reputation with a marketing gloss that has little substance.

2

Francesca Boase

Account director, Corporate Affairs, Porter Novelli

Most Australian consumers consider green credentials mandatory, so the first question posed to a company announcing its commitment to ‘going green’ is most likely to be “what took you so long?”.

As a nation of consumers we’ve experienced a multitude of environmental initiatives: less plastic, less paper, lower carbon emissions, more recycling, more water saving... we’re showing green fatigue. Terms like ‘astroturfing’ and ‘slacktivism’ appear regularly in commentary about green branding, which highlights increasing levels of public distrust, disingenuous corporate behaviour and consumer disengagement.

According to Quantum’s 2008 AustraliaSCAN research, 67 percent of Australians agree that it’s more important that brands deliver good quality and value than support charities and good causes, which is a growing trend (58 percent in 2006 and 62 percent in 2007).

That’s not to say that green credentials don’t hold sway for some segments of Australian consumers, particularly the 55 percent who are switched onto the environment. Consumers who care, care deeply.

Engagement with this segment needs to have relevance, resonance and cut-through, which can only be achieved through a commitment to ongoing dialogue from the company and genuine support throughout the business.

PR can play a vital role in meeting great ‘green’ expectations, most of which have impact beyond just consumers. Engaging with key stakeholders (including media, state and federal government, interest groups and the general public) to support green credentials requires consistent, accurate information and a degree of transparency that can’t be achieved through advertising and marketing alone.

It ain’t easy being green, but when environmental considerations are considered a mandatory part of business by a multitude of stakeholders, the value of commitment to sustainability should not be underestimated.

3

Michael Kiely

Michael Kiely is a climate change communications consultant.

‘How Green Is My Customer?’ Not very, it seems, when you consider how they vote with their arses. Australians spend $500 million a year on toilet paper. But only $20 million on recycled paper.

Despite this, everyone wants to be green – corporations and governments especially, because they think that the consumer and taxpayer has apparently gone green. Or at least they say they have. Market researchers have been to see them and they took their word for it. More than 90 percent of Australians now believe climate change is a problem, and the same percentage feels their impact on the environment is excessive, says Galaxy Research. The researchers also found that 25 percent say they are ashamed and embarrassed.

But not enough to change their spending patterns: 80 percent say they choose products primarily on price. Given that the customer is spooked by climate change, the numbers of GreenPower customers are growing only 15 percent per year.

What customers say about their ‘greenness’ and what they actually do is very different. Customer behaviour tells us that consumer driver number one is price and number two is convenience. Coming in at number three is brand values, which includes self-image, sense of belonging and social status (a subset of all three is environment). The ABS reported in 2006 that the adoption of environmentally friendly behaviour is motivated by convenience.

We live in a consumer society. So a consumer society solution to an environmental crisis would look something like this: buy something… cool… easy to understand… convenient… dispose of the problem.

This will not remain the case forever. The Kiely consumer colour guide formula looks like this:

Depth of Green =      Consumer Benefits
____________________________
                Level of Anxiety

When the Climate hits the fan, there will be many willing buyers. But will the shops be open?

4

Andrew Lewis

Managing director, Anthem!

I don’t get it. We are all told that we should be surfing the green wave together, but are we really being true to this?

Or are companies using this green wave as pure marketing hype with little substance.

As an example I recently read an article on the new Cascade Green beer. Does anyone really believe that a beer can be green? And shouldn’t we expect our multinationals to be leading the way with carbon neutral practices? The website also uses the copy: “The Cascade Brewery is set in the lush Tasmanian countryside. It’s a beautiful place to brew beer…” but the beer is made downtown! So the marketing hype may not be totally believable. 

I feel that if the consumer is to follow, then companies should show responsibility. Generally, companies are not environmentally sustainable, but they can be responsible. For example, if Cascade was truly responsible, why would the company not come clean and say that it is taking steps to treat the environment responsibly across all of its brands and production facilities?

Most consumers do care and will do their bit to go green (just look at the phenomenal success of Ian Kiernan’s Clean Up Australia campaign), but they’re also sceptical when companies blatantly jump on the bandwagon with little substance. 

Companies need to be totally believable when riding the green wave. They will gain the trust of the consumer, and you build brands on trust.

Show active responsibility and the consumer will follow!

5

Julian Lee

Marketing reporter, the Sydney Morning Herald and author of 'How good are you?'

They do. But the jury is out to what extent. People love to tell you that they care, that they love a company that is kind to its workers – or rather those of its offshore suppliers – and to the environment. But when all is said and done, they are looking for performance, quality, convenience and, last and by no means least, price. Research consistently shows that about 10 percent of people – the deep greens – will pay a premium for a green or ethically-sound products or services. The rest of us have yet to be convinced of the value of going green. That figure in itself should not be read as a measure of whether or not the consumer cares, but rather as a guide of their intentions. These are the early adopters and they will be followed by the rest of us; quite when that will be is the subject of much strategising and, yes, guesswork. 

I know companies are becoming increasingly wary about stepping into this space. They are fearful that no matter how much due diligence they undertake their well-intentioned efforts to do the right thing might be labelled ‘greenwash’ because they failed to take into account the effects their activities might have on the nearby nesting grounds of the lesser spotted bull thrush. Yet if they hold back and sit tight then the consumer might judge that they are not ‘doing anything’ when it comes to the environment and judge their brand harshly as a result. Yes it’s a question of damned if they do, damned if they don’t. And if no one does anything, that early adopter curve will remain right there on the graph, travelling in an upward trajectory, but worryingly low.