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An Evolving Consumer Mindset

According to research conducted by Better Homes and Gardens, there’s an estimated $300 to $600 billion market for green products and services. The demand for green is clearly growing. People want to feel good about their purchases. Primarily, they’re looking for goods that will help to lower their costs of living, but secondarily, they want to know that the production and distribution of their purchase had either a minimal negative effect on the environment or will have a lasting positive effect, such as increasing energy efficiency and reducing pollution.

“If you’re going to be generating products people want to buy, you’d better think about making those products as green as they can be,” says John Kinsella, a partner with Bellevue environmental consulting firm ERM. “There is now such a demand by customers for green products and services within the supply chain that you may actually gain market share from customers whose products are not yet green.”

Paton, Dean “Should your company go green?” Washington CEO 23 May 2008. 3 Sept 2008

Certain industries are already seeing a shift in consumer mindset in the direction of green. The real estate industry, for example.

“On the one-year anniversary of the Northwest Multiple Listing Service’s addition of green design search features to its property listings database, analysis shows that new environmentally certified (ECert) or green homes in King County sell in up to 18% less time and for 28-37% higher value per square foot.”

“Seattle Green Homes Market Hot” U.S. Green Building Council Green Home Guide 1 July 2008. 18 February 2009

Bottomline Advantages

Hoffman York has been partnering with energy efficiency experts for nearly 10 years. In that time, we’ve seen companies save as much as $1 million in annual energy costs by investing in a series of strategic energy efficiency projects [PDF]. Of course, this isn’t the average scenario, but it is an example of what can be achieved through dedication to energy efficiency. You’d be surprised at the energy cost savings that’s hiding in your existing facility, and how easy—and oftentimes affordable—it is to bring to reality.

In fact, more and more companies are finding that by making their facilities more energy efficient, they can “significantly reduce operational costs, enhance value and profits, improve employee productivity and satisfaction and optimize life-cycle economic performance.” This according to the U.S. Green Building Council’s Green Building Research.

Another interesting twist—there are companies that see energy efficiency as “business as usual,” and therefore, don’t think anything of the measures they’ve already implemented. Often, these companies fail to realize that the steps they’ve taken aren’t standard business practice for the rest of the business world. Furthermore, depending on what their competitors are doing, the energy efficiency steps they’ve taken could actually be a competitive advantage—especially to today’s more eco-aware consumer.

Let’s be clear here. We’re not in business to help anyone “greenwash.” That’s not what we’re about. We’re here to help organizations recognize the ways they’re already green, identify opportunities to be greener and help them gain a competitive advantage by promoting their honest efforts to be environmentally friendly.

“Greenwashing” is when a company or organization spends more time and money claiming to be green through advertising and marketing than it spends actually implementing business practices that minimize environmental impact.

A study released in mid-June of this year by the Natural Marketing Institute says that consumers are experiencing what it calls “Greenwashing whiteout.” NMI states:

“The future of the green movement will require a new level of sophistication and clarity as consumers increasingly discern between those companies that are truly sincere versus those that are perceived as participating for superficial reasons…Some companies who are doing relatively little with respect to CSR [Corporate Social Responsibility] are perceived as just as responsible as those spending millions of dollars incorporating sustainability into their businesses. Lack of credibility and trustworthiness will continue to cause confusion and blurring in consumers’ minds, and if it goes unchecked, could undermine the LOHAS [Lifestyles of Health and Sustainability] revolution currently underway.”

Blosser, Nic “Seeing through the greenwashing whiteout” Sustainable Industries 4 August 2008. 19 October 2008.

In “The Greenwash Guide” [PDF], Futerra Sustainability Communications, a green communications agency in the UK states,

“Greenwash is having an insidious, measurable, and potentially catastrophic impact. It’s actually quite simple: greenwash threatens the whole business rationale for becoming more environmentally friendly. [It] eats away at that market demand by confusing consumers and making them uncertain about buying green products. Eventually they’ll stop buying based on their green preferences altogether. Greenwash destroys the very market it hopes to exploit.”

In other words, greenwashing may work now, but in the long run, it won’t benefit any organization—green or not. That’s why it’s so important for the companies that are making honest efforts to be environmentally friendly to get their message out there. HY-brid is here to help.

Client:

Wisconsin Focus on Energy

Relationship:

Wisconsin’s energy efficiency and renewable energy initiative has a 7-year relationship with HY. To date, Focus on Energy has helped Wisconsin businesses and residents save approximately $193 million in energy costs.

Challenge:

The Focus on Energy program was piloted in WPS territory in 1999. By 2002, public awareness of Focus on Energy was at just 2 percent statewide.

Result:

By the end of 2008, public awareness of Focus on Energy had reached nearly 30 percent and it had won ENERGY STAR® Partner of the Year—for its seventh consecutive year. Contact us to see how we did it.

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Client:

Land and Lakes

Relationship:

Land and Lakes is an environmental services company in the suburbs of Chicago that’s been in business since 1966, doing everything from land purchase to recycling to composting to site development.

Challenge:

For 42 years, they’ve specialized in environmental services. To the people at Land and Lakes, this was business as usual. Their mission was to purchase and use land in the best interest of the community and the environment. What they didn’t realize is that it’s not necessarily standard business practice for the rest of the world.

Result:

Hoffman York showed Land and Lakes what a unique selling proposition they had and is now helping them communicate this competitive advantage. Contact us to see how we did it.

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Client:

Merillat Cabinetry

Challenge:

In early 2008, Merillat noticed their competitors were talking green. Hoffman York did a competitive analysis and found that not only did Merillat have a great green story to tell, they were actually greener than their competitors.

Result:

We helped Merillat identify their green competitive advantage, develop an environmental platform and communicate that to both internal and external audiences. Today, they’re a thought leader in green processes and products in the building products industry. Contact us to see how we did it.

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Client:

Milgard Windows & Doors

Challenge:

Milgard Windows’ entire line of premium replacement windows is ENERGY STAR qualified. In addition, they offer double-pane and triple-pane windows that are designed to provide the same level of efficiency for different climates. These climate-specific designs are estimated to be between 10 and 26 percent more energy efficient than ENERGY STAR requirements. Hoffman York helped them develop a naming strategy for their windows and market them via a mix of PR, collateral and print advertising.

Result:

Milgard’s awareness has increased and they received two top product awards at the 2008 International Builders Show. This is a unique honor for a product that’s sold as part of a package, and not individually. Contact us to see how we did it.