Mark Stuart Head of Research at the Chartered Institute of Marketinh

1. Avoiding greenwash and
the Triple Bottom Line
Mark Stuart
Head of Research
The Chartered Institute of Marketing

4. 2006 117 complaints about 83 adverts
2007 561 complaints about 410 adverts
2008 369 complaints about 264 adverts
Source: ASA, March 2009

5. Green motives?
• Only 17% of consumers trust businesses to do the right
thing when it comes to climate change
• 72% feel they should take the issue of climate change
more seriously
• 55% would like more independent assurances on what
companies are doing on the issue of climate change
Source: Climate Change and Brands/Future Foundation
Base: 1600 Adults 16+

6. Defra’s new revisions on green claims
Likely to include new areas such as:
• Misleading by silence
• Claims need to be within a wider context of reliable or
credible corporate approach (how far can that be
addressed?)
• Encouraging customers towards better behaviours
• Plain language
• Difference between on-product labelling, and advertising

10. CAP Code updates
• Absolute claims must be supported by a high level of
substantiation
• Comparative claims such as ‘greener’ or ‘friendlier’ can be
justified if the basis for comparison is clear
• Marketers must not suggest their claims are universally
accepted if a significant division of informed or scientific
opinion exists

12. Source: The good, the
bad and the indifferent,
The Chartered Institute
of Marketing

13. Implementing the Triple Bottom Line in a company
Source: The good,
the bad and the
indifferent, The
Chartered Institute
of Marketing

14. Internal opportunities
• Introduce flexible working patterns
• Switch to local suppliers
• Consider how products are packaged
• Have a sustainable sourcing policy
• Adopt a ‘reduce, re-use and recycle’
principle across your business

15. Benefits of the Triple Bottom Line
Simultaneously drive better
economy and better world
More motivated employees
People, planet and profits
work together in virtuous circle
Long-term financial planning
Feeds back into Research and Development and innovation
Doing the right thing because it is the right thing

16. The role for marketers
Source: The good,
the bad and the
indifferent: The
Chartered Institute
of Marketing

18. Green claims
• Be transparent
• Err on the side of caution
• Make labelling more explanatory
• Avoid phrases like ‘environmentally friendly’
• Be aware of implying a claim in imagery
• Reuse, reduce, recycle

20. Further information
• BRASS: http://www.brass.cf.ac.uk
• Futerra: www.futerra.co.uk
• Mobius: www.mobiusgreenprint.com
• Smart: Know-Net: www.cfsd.org.uk/smart-know-
net/links/full.htm
• The Chartered Institute of Marketing: www.cim.co.uk

21. Thank you
markstuart@cim.co.uk
www.cim.co.uk

22. The green iceberg
• 86% of customers say that when price and quality are
equal, linking with a cause would make a difference to
their purchasing choice
Source: The Marketer
• 93% of customers think businesses must be responsible
about their impact on the environment
Source: The Marketer

23. Four kinds of customer…
• Committed: knows what to do and does it
• Conflicted: knows what to do, but doesn't always bother
• Confused: doesn't know what to do, or how to make a
difference
• Cynical: doesn't know and doesn't care

24. Ten ideas for sustainable communication
1 big picture 6 optimism
2 technically correct 7 glory button
3 be cool 8 change is for all
4 belong 9 we need more heroes
5 only stories work 10 personal circle
Source: Futerra

25. Design the product or service well
Save the customer money
Communicate the benefits

26. Summary – 1
• Focus on the opportunities, not the risks
• Find win-win solutions
• Make different choices
• Change behaviours positively
• Make sure any claims are
provable, factual, accurate,
responsible and credible

27. Summary – 2
• Don’t sell it because it’s green – sell it because it’s good,
and also green
• You can use sustainability as a differentiator, if it
genuinely is sustainable.
• Not consuming more –
consuming differently

28. Green marketing in action
Ensure a sustainable ethic runs throughout the
company, to avoid customers being cynical about you
– Doesn’t have to be expensive
– Choose suppliers that share same values
– Make sustainable ethics part of the brand

29. Green marketing in action
Communications
– Work with a sustainable-minded agency
– Electronic communications not paper
– Use organic inks and recycled paper where you do use print
communications
– Use waterless printers

30. Green marketing in action
Getting customers to buy…
– Customers will only buy a green product when they are aware of
its social and environmental benefits
– And when they can see these benefits positively, compared with
your competitors
– The quality has to be equal to, or better than, competitors’ if it is to
have green differentiation
– Focus on local sourcing or fair trade
– The interest is there for any industry or product sector… It’s our
job to demonstrate the benefits to customers

31. “The real agent of change
for sustainable business
practices over the next
decade or so will be
communication.”
Source: The good, the bad
and the indifferent:
The Chartered Institute
of Marketing 2007

32. The Business Case for sustainability
• Reputation: reduce the risk of public disillusion, negative
press, brand damage
• Innovation: new solutions in Research and Development
• Competitive advantage: customers want to buy from, or
invest in, ethically-minded companies
• Cost savings: local sourcing saves transportation costs;
reducing usage and wastage lowers costs
• Companies that reduce their energy bill by 20% could add
the same amount to their profits as a 5% rise in sales

33. • Global sales of fair trade products
• 2005: £758 million 2007: £1.6 billion in 2007
• UK sales
• 2005: £195 million 2007: £493 milllion
• Marks & Spencer experiencing significant growth from its
eco-product categories in first half 2007
• Sources: BBC, Computing.co.uk