Copyright © 2010 REACHLaw Environmental Ltd. All rights reserved.

Ecolabelling Workshop:

Marketing Sustainable Companies & Green Markets

Frederik JohansonCEO | Partner REACHLaw Environmental Ltd.

Sustainable Business & Green Markets

Eco-labelling & Green Markets

Case : Tourism Sector

Recap :A “Green” business...

Incorporates principles of reducing its environmental impact

Supplies environmentally friendly products and services Is “greener” than its competitors Has a strong sustainability and “Greening” commitment

when making e.g. business decisions. Sees a competitive advantage in being “green”

What is driving companies to become more “Green” and Sustainable? Limited growth opportunities due to unsustainable operations

is forcing some companies to revert their attention on the environmental and sustainability issues E.g. GHG emission reduction requirement drives companies to

invest in Cleaner Technologies Climate change has become the most significant environmental

risk targeted for tough global regulatory control

Limited material resources are driving companies to be more “material efficient”

...cont’d

Governments / Communities are tightening the requirements for waste, packaging material, chemical exposure and pollution prevention, natural resource usage

Stakeholders that are concerned and very conscious about environmental issues: Investors and financial institutions ( ref. e.g. DJ sustainability

index ) Insurance companies NGO’s General public, consumers

“Peer pressure” from competing companies

This translates to:

• Companies / organisations have to start implementing sustainability and greening measures into company operations

• Realization that becoming sustainable and green is not just about costs, it is also about new business opportunities

Sustainable Business & Green Markets

Eco-labelling & Green Markets

Case : Tourism Sector

The ”jungle” of Eco-labels

Today there are more than 330 different Ecolabels globally in over 40

industry sectors...

More than a 1 000 EU Ecolabel licences have been awarded “The Flower”.

“The Flower”.

Distribution of EU Ecolabel licences• 37% Tourist accommodation services• 11% All-purpose and sanitary cleaners• 9% Textile products• 43 % Paper products, electronics, non-

hazardous chemical products, ...

Ecolabelling and Green Markets

Ecolabels are a Driver of Customer choice: • An effective way of informing customers about the

environmental impacts of selected products.

• Enables consumers to choose between products that are more sustainable and products that are less sustainable.

• An eco-label makes the customer more aware of the environmental impact of the product.

…cont’d

Ecolabelling promotes economic efficiency:• Ecolabelling is generally cheaper to implement than

complying with regulatory controls. → By empowering customers and manufacturers to make

environmentally supportive decisions, the need for regulation is kept to a minimum.

• Beneficial to both government and industry.

Ecolabelling stimulates market development:• Market moves towards greater environmental awareness,

especially for consumer products

…cont’d

Encouraging continuous improvement:• A dynamic market for Ecolabelled products encourages

corporate sustainable commitment

Promoting certification:• An environmental certification program is a seal of approval

which shows that a product meets a certain Ecolabel standard.

• Provides customers with visible evidence of the product's sustainability → Educational role for customers and promotes competition among manufacturers.

General practices for marketing of ”The Flower”• Avoid mixing the marketing for Ecolabelled products

and unlabelled products

• Keep to the truth: Do not claim that Ecolabelled products are without environmental impact

→ Ecolabelled products just have less impact on the environment than most similar products

• Avoid “Greenwashing”

Ecolabel visibility to the customers

Marketing tools:• In your print & web information• On your packaging• On the product• ....

...cont’d

Marketing channels:• In your advertising• Public relations and advertising• Fairs and promotion events• Employee communications• Social media...

Ecolabel “branding” of a company• The whole point of seeking for the Ecolabel is to

create a “brand” out of it for your company

The only way that the Ecolabel can benefit a company is to really put effort on the marketing

Real competitive advantage

“Greenwashing is a term describing the deceptive use of green marketing in order to promote a misleading perception that a company's policies or products (such as goods or services) are environmentally friendly” - Ref. Greenpeace

Greenwashing

How to avoid “Greenwashing”: Tips & Tricks1. Highlight your product’s practical benefits (e.g. energy savings

in money over time) and only after that communicate its environmental claims..

2. When competing against similar products, how you communicate its "green" benefits and its relationship to the environment is important... (case-by-case dependent)

3. Transparency: It is not what a company says, but what it does not say about its products that most affects its brand image, be transparent and don’t lie or exaggerate..

→ Implement a Communication strategy for reporting sustainability information openly (e.g. Corporate Social Responsibility Reporting )

The ultimate way to avoid Greenwashing is to:

1. Stick to certified Ecolabels for your Products & Services, and;

2. Raise the relevant eco-awareness of the consumer

Trends: Be Aware, Paradigm Shift Approaching...

“Trend drivers”Product Cost and Quality

Rapid population growth

Consumer willingness to act

Rise in number of global middle- and lower income consumers

Global Regulatory changes

Financial incentives

Raising of Consumer Environmental awareness

Limitation of available resources and eco system

Business opportunities are significantly reduced for non-sustainable companiesConsumer ability

and power to actOnly sustainable products and services survive..

Today

The near future

“The leading businesses of the future will be those whose core business directly addresses global challenges.”

– CEO World Business Council for Sustainable Development (WBCSD)

Customer Targeting

• In the short run:

Consumer groups with high environmental awareness and ability and willingness to act...

• In the long run:

Be sustainable and the consumers will turn to your products & services, they have no other choice...

Sustainable Business & Green Markets

Eco-labelling & Green Markets

Case : Tourism Sector

Why Sustainability and Ecolabelling is becoming important for the tourism sector• The accommodation service sector (hotels, resorts, ...) is a

major consumer of resources and products. • Daily consumption of water and power (Active 24 / 7 / 52)• Consumption includes land, construction materials , furnishings,

cleaning supplies, food and equipment.

• This massive ongoing use of products and resources calls for a need for green and sustainable actions to be taken

→ Opportunity to differentiate yourself by promoting sustainable development

Examples of actions taken to create sustainable Tourist accommodation services

• Create and abide by Low Carbon policies• Promote and invest in Clean Technology• Promote sustainability changes in the supply chain• Invest in environmental education / awareness raising• Increase sustainability know-how in the tourists• Promote Marketing activities like Ecolabels to make the brand

stronger.

Example approach from a hotel to offset GHG emissions

“Customers have the opportunity to make contributions toward small amounts of clean renewable energy. Though this turn-key solution, the guests can positively impact the environment during their stay and reduce their greenhouse gas emissions for US 1.00 $ per night”.

Example: Offset your personal / company emissions via the CarbonFund

Source: http://www.carbonfund.org

Thank You for Your Attention

Address

REACHLaw EnvironmentalKeilaranta 15FI-02150 Espoo, Finlandwww.reachlawenv.fi

Contact

Frederik JohansonCEO | PartnerTel: +358 (0) 400 595918frederik.johanson@reachlawenv.fi

Copyright © 2010 REACHLaw Environmental Ltd. All rights reserved.