Suppliers warned against greenwashing

Last updated Tuesday, February 26, 2008 6:07 PM CST in Business

By Kimberly Morrison
The Morning News

    ROGERS - Consumers are seeing many products in stores with claims of being green. Compact this, concentrated that. This is green, that is ecofriendly.

    Yes, caring about the environment is more popular than ever. Consumers want environmentally friendly products, and businesses want to give it to them.

    Everyone wins, right? Not so fast.

    The rush to capitalize on a growing interest in going green has presented real problems to suppliers and consumers. From defining what green means to what's meaningful to consumers, a simple idea can get pretty complex.

    And these days, there's a lot of pressure on suppliers to go back to the drawing board with reduced packaging, innovative new products, elimination of wasteful materials and reductions in energy use at every step along the way.

    In some cases, it may just seem easier to slap a product with a big green label and call it a day.

    Leo J. Shapiro & Associates did some research on the connection between green, the consumer and the company, and found that manufacturers, retailers and others hoping to leap onto the green bandwagon with superficial sustainability claims should caution against "greenwashing."

    The firm and others shared with suppliers the many misguided and failed attempts to appeal to the earth-conscious consumer, such as greenwashing, at a sustainability conference hosted by Retailing Today at the John Q. Hammons Center on Wednesday.

    "The stakes are very high," said Art Angel, research director with Leo J. Shapiro & Associates. "If you find yourself tagged as greenwashing, your business is going to be tainted."

    Angel said the firm's research suggests that insincere attempts to go green could not only jeopardize a brand, but hurt other brands and spark consumer backlash. He warned against just dabbling in green products.

    "It's not part of your niche brand offering, it should be part of your corporate DNA," Angel said.

    The sustainability initiatives Wal-Mart Stores Inc. launched two years ago have suppliers scrambling to go green when just a few years ago, few knew what sustainability meant, much less how to apply it to their business practices. But a new direction for Wal-Mart means suppliers are along for the ride to help the Bentonville-based retailer meet its goals, which includes reducing packaging through the supply chain by 5 percent in five years.

    Those doing business with Wal-Mart hear a lot about sustainability from their client, but some suppliers still struggle with how to apply it.

    Kerry Bailey, director of retail at Menasha Packaging Corp./Retail Integration Institute, told suppliers that going green is more than a product with recycled or recyclable packaging or installing a few solar panels at the office.

    "Green is a Zen practice. It has to encompass everything you do," Bailey said.

    Wal-Mart is making sure of it, and it's giving suppliers added incentive to get on board with its sustainability initiatives. The retailer said it will reward innovative companies with favorable product placement, based largely on a scorecard system that began Feb. 1.

    The sustainability scorecard evaluates products based on nine metrics including package-to-product ratio, recycled content and transportation requirements.

    "The packaging scorecard says one thing - make an improvement," Bailey said.

    And consumers want to see that improvement in a way that is sincere and meaningful. Instead, they are seeing products appear on the shelves that aren't, such as self-certified green labels and standards, and unchecked claims, said Joann Hines, a packaging consultant and columnist known as the "packaging diva."

    "Your solution may not satisfy your customer," Hines said. "I'm not saying self-certification is bad, I just want you to realize that consumers may not understand or care."

    Some solutions work with consumers, and some don't.

    According to Leo J. Shapiro & Associates, 49 percent of consumers surveyed said they had purchased an energy-efficient light bulb in the last year, 62 percent said they'd purchased a product designed to conserve energy or protect the environment, and 16 percent said they purchased an energy-efficient household appliance.

    Despite the priority consumers have placed on environmentalism through their product purchases, the same enthusiasm doesn't translate into behavioral changes.

    The majority of consumers - 81 percent - say manufacturers aren't doing enough to conserve energy and protect the environment, according to the firm. But the same group of consumers surveyed, about 800 Chicago-area participants, said they don't want to disrupt their daily lives to go green, either.

    Reader Comments (3 comment(s))


    The following comments are provided by readers and are the sole responsibility of their authors. The Morning News does not review comments before their publication, nor do we guarantee their accuracy. By publishing a comment here you agree to abide by our comment policy. If you see a comment that violates our policy, please notify the web editor.

    BCR wrote on Feb 27, 2008 8:23 AM:

    " Energy efficient light bulbs... Would those be the ones that contain mercury? I read an article that said that Americans will use 5 billion of those little gems this year. Wal-Mart was the chief proponent of the use of the bulbs. What they didn't say was that each bulb contains 5mg of mercury. Not a lot, compared to the 500mg in a common thermometer. BUT, we don't throw 5 billion thermometers in the landfills every year. What is staggering is the fact that 5 billion CFL's will dump FIVE AND ONE HALF TONS of deadly mercury into our landfills. Did anyone think of that when they started pushing these? Thanks Wal-Mart. "

    international traveler wrote on Feb 27, 2008 1:59 PM:

    " WRONG BCR...WAY WRONG... Yes, they contain Trace amounts of Mercury. (So does your Tuna...)

    Americans WON'T be throwing away 5 Billion of these a year. Look at the life of these bulbs compared to a regular Incandescent bulb. The life of a CFL is 5 to 7 years. They also consum less energy, thus lowering your costs every month, and also reducing then power output of the Plant that makes the electricity.(Wich will lead to excess electricity, and will then be sold on the open market, and again, lowering your rate each month per Kilowatt Hour.) How do I know this?? Because this is my job, my category, my product. Wal-Mart made a big push, yes. Thank GOD someone did. All other Retailers started following their lead. The DOE did a feasability study, and it was then included in the energy bill Bush signed. Your "Panic Attack" about mercury only leads to more confusion. Recycle facilities do exist, and will expand in all areas before this LAW goes into effect in another year. Think about that next time you fix a tuna sandwich.
    "

    mikehog wrote on Mar 4, 2008 8:26 PM:

    " Traveler: I've already thrown 4 of them away this year. Is Walmart recycling these burnt out bulbs? Mercury is mercury whether it's a "trace" or 5 mgs. Sorry dude, but your fuzzy math numbers just don't add up.
    I am just jerking your chain. I actually like the new bubs cuz they don't put out as much heat as the old bulbs, But I did make the mistake of throwing 4 in the regular trash earlier before I realized they contained mercury "


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