Green Marketing: An Opportunity but Also a Responsibility

picBy: Daniel Fumero Lázaro

Year after year, we see our environment increasingly deteriorating. A recent study produced by the World Wildlife Fund (WWF) states that humans will need “two Earths” to support our lifestyles by 2030.  We are quickly draining the world’s resources. Therefore, the industrial and consumer goods sectors must therefore find ways to use energy and resources more efficiently, improve production processes, develop new technologies and continue to be innovative.

In recent years, the awareness towards preserving the environment has become part of society’s new values and trends. There are many sensitive consumers interested in the ecological value of products. It influences their purchasing decisions and consumer habits (buying recycled and organic items, recycling, etc).

As for marketing, this trend now represents an opportunity to gain advantages from the competition and get close to this market segment. Green marketing seeks to satisfy customer needs, and when corporate culture is based on environmental concerns, it is accepted by all company employees, regardless of their hierarchical level.

However, “green marketing” can be used irresponsibly by companies interested only in their image.

An example of this is found in cleaning and cosmetic products. Many companies may announce that they are “100 percent natural,” “energy efficient” or “organic” without a certificate or information that verifies what is stated on the label.  Also, major companies in the oil and gas industries rely on the use of symbols and environmental colors as a strategy to minimize what could be bad images of their activities. They may even promote Earth Day (April 22) to disseminate its supposedly ‘green efforts.´ These false examples are commonly known as “greenwash.”

For this reason, companies must act responsibly when taking the decision to adopt green marketing. It is not just propaganda. It must be a compromise that involves all staff. Green marketing must be part of the corporate culture, its values and objectives.

On the other hand, as responsible consumers, we must commit to support companies that are already identified with this social responsibility. In order to make buying decisions based on the characteristics the products actually have, we must demand rigorous and reliable information about the product’s origin and manufacturing, as well as the environmental improvements achieved.

Daniel Fumero Lázaro interns at Visibility Marketing Inc. He resides in the Canary Islands.

 

 

Chipotle Lists Climate Change as a Company Risk in its SEC Filing

chipotle sec filingToday is Earth Day. While whether or not we have control over climate change is still being debated, the fact that we are affected by how we treat Mother Earth is not.

When Chiptole listed climate change as a company risk in its annual 10K SEC filing, the language used served to downplay the risk. The “guacamole warning” stated that if weather events linked to global climate change continue, the availability of ingredients  used in certain products would result in Chipotle taking them off the shelves.

This statements opens up a climate change disclosure risk for other companies, driven by shareholders who can demand why climate change might not be a material risk. While Chipotle addressed the risk, many other companies do not and avoid using the words “climate change” as a whole. This practice is made possible by the SEC, whose disclosure requirements don’t demand transparency.

Companies should recognize that while climate change may be a difficult concept to address, litigation isn’t.  Failing to address this risk could leave them open to shareholder lawsuits. Companies should take appropriate action to prevent suits, starting with transparent disclosure.

Chipotle demonstrated both business and scientific sense to disclose the risk and addressed ways they could adapt.

Happy Earth Day! Do something good to make your “Mother Earth” happy.