Posts Tagged ‘go green’

Sustainable Industries offers up 9 trends in 2009

Sustainable Industries magazine has just issued its top 9 trends for 2009. They are not posted online, so I’ll summarize them here. (If you’re not a subscriber yet, consider becoming one.)

  1. Smart grid takes off: “Though the term ‘smart grid’ is somewhat fluid and encompasses a range of technologies—from so-called smart meters to home area networks—analysts and industry insiders seem to agree the time is at hand for many such technologies to be widely implemented.”
  2. Year of the carbon market: “At a time when U.S. unemployment rates are reaching levels not seen in decades, the carbon market is likely to go on a hiring blitz in 2009.”
  3. Green building sets the code: “While 2007 and 2008 proved big years for the widespread adoption of building standards by major cities—including Los Angeles, Boston and Seattle—the coming year is expected to bring even more.”
  4. Banks for the new economy: “With the collapse of giant financial institutions in the third quarter of 2008, some industry experts are predicting a bigger push toward a community-based model of banking and investing in 2009.”
  5. Green jobs hiring blitz: “The West Coast, with its state renewable portfolio standards, the California Solar Initiative, massive wind power plants and strong venture capital presence, is well-positioned to lead the growth of the green-collar job sector.”
  6. Tapping into water conservation: “While some companies are already viewing water as the next oil—and are starting to prepare s if the world is approaching ‘peak water’—2009 will bring a new wave of water conservation efforts among U.S. organizations.”
  7. Get on the bus: “Simply put, Americans think life is better when they have the option not to drive.”
  8. Solar’s future luster: “Despite what could be a rough 2009—or at least a rough first quarter of 2009—analysts remain optimistic about the (solar) industry’s long-term future following the ITC extension and a new administration stepping in to Washington, D.C.”
  9. ‘Go green’ goes down: “(B)ecause the media and its consumers have matured a bit in relation to what they view as truly ‘green,’ companies need to stretch much further to garner attention for their environmental initiatives.”

Overall, the trend report suggests an economy that will continue to transform itself in the face of a deep recession. Progress may slow some next year, but sustainability is no passing fad.

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Putting sustainability values ahead of market signals

At the risk of over-simplifying, I see most businesses falling into one of two camps when deciding whether and how to “go green.” I’ll call one the market camp and the other the values camp

The market camp consists of businesses whose green decisions are driven by whether there is market opportunity or customer demand for green(er) products or services. These businesses tend to be product focused. In other words, if green can sell, then they’ll produce it. Otherwise, forget it. They can’t stay in business producing things few customers want.

Businesses in the values camp decide to go green because they believe it is the right thing to do environmentally and socially. They tend to be operations focused. In other words, green operations are capable of only producing green products and services. If they find themselves to be ahead of mainstream marketplace demand, so be it. Financial success can’t come at the expense of environmental or social damage.

So how might businesses in these two camps react to results of a national survey on green issues recently conducted by an ad agency in Knoxville, Tenn.? 

Among other things, the survey found that many people remain confused about what “green” is and the “green market” is far from mature.

 

(H)alf (49%) of respondents said a company’s environmental record is important in their purchasing decisions. But that number dropped to 21% when consumers were asked if this had actually driven them to choose one product over another. And only 7% could name the product they purchased.

 

 

Not only that, the study found that about 26% of Americans (mostly affluent, white, middle-aged males) fall into a demographic called the “Never Greens.” These are skeptics who either “don’t care or are not interested” in sustainable or green products.

The market camp, which represents the majority of businesses, will probably look at this data as reason to become more conservative in deciding whether or how fast to go green. When so few buying decisions appear to be made on the basis of a company’s environmental record and such a large percentage of Americans couldn’t care less about green products, where’s the market or financial incentive to produce green?

I’d wager the values camp will remain undaunted by these findings. They will continue business as usual because the option of not being green doesn’t exist for them. They will focus on the minority of potential customers who today make buying decisions based on the environmental practices of a company and the sustainability of their products and services. And they will do what they can to educate others about the importance of sustainable consumption habits.

So do you and your organization fall into one of these camps, or someplace in between? For me, a perfect world consists only of the values camp, although as a business owner and marketer I certainly understand the importance of listening to the market. Unfortunately, the market has failed to send adequate signals to businesses to behave and produce sustainably. As a result, we’ve depended far too long on fossil fuels, depleted far too much of the earth’s resources and produced far too many good and services for a minority of affluent humans who already have too much.

As the survey reveals, most people aren’t guided by sustainability principles in their buying habits. Businesses in the values camp don’t take that as a signal to relax. They see it as a reason to re-double their commitment to sustainability. And that gives me hope.

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