From Greenwashing to Believeable Green Branding

1. From Greenwashing to Believeable Green Branding Peggy Simcic Brønn, BI

2. January 2007

3. Top 10 Green Brands, WPP Landor Associates – Most Green Whole Foods Wild Oats Trader Joe’s Toyota Honda Sub Zero Ikea Body Shop GE Aveda Automotive: Toyota Lexus Ford General Motors BMW Petroleum and Energy: BP Exxon Mobil Chevron Royal Dutch Shell Chevron Texaco

4. Public Eye Global Bridgestone Corporation Ikea Group Trafigura Beheer B.V. Public Eye Swiss Novartis Ruag Holding Xstrata Public Eye Positive Coop Eosta Marks & Spencer

5. “GREEN MARKETING” OF 1980’S AND 90’S: PHASE I • Type of advocacy advertising • Raised profile of environmental issues

6. BACKLASH TO GREEN MARKETING • Media loved attacking firms showing off their green image • UK’s “Green Con of the Year Award” • Basic philosophy - selling • 65% of consumers agree business only use to sell • Volume of messages only creating more doubt and confusion

7. Greenwashing 1. the dissemination of misleading information by an organization to conceal its abuse of the environment in order to present a positive public image 2. the information so disseminated

8. Greenpeace’s Greenwashing detection kit • The "greenwash" tag applies to any corporations that use the media to make environmental claims about one or more of their cleaner products, while continuing "business as usual" practices which rely, for example, on large amounts of natural capital, are energy intensive or inefficient, or which involve production and release of toxic chemicals.

9. The term is now used to refer to a wider range of corporate activities, including, but not limited to, certain instances of environmental reporting, event sponsorship, the distribution of educational materials, and the creation of "front groups." (Business Ethics)

10. BA's concern about climate change "nothing but greenwash and spin".

11. Green Advertising and Green Public Relations (Nakajima 2001) • Are pervasive and misleading • Sometimes outright lies • Provide society with a distorted view of corporate environmentalism • Block access to more full and objective information • $500 million to $1 billion spent on green PR in US annually • Most filtered through PR firms

12. How Business Misleads Us to Create a Greener Image (Nakajima 2001) • Third-party endorsement • Research for hire • Funding anti-environment organizations and right-wing think tanks • Targeting children and education system • Industry coalitions promoting inaction (Global Climate Coalition created by Burson-Marsteller)

13. How We are Misled cont’d • Forwarding the idea that helping the environment will result in lost jobs and economic turmoil • Shifting the blame • Focusing on positive sides of industry (Monsanto claims RoundUp saves endangered species) • Attacking environmentalists • Partnerships with NGOs such as environmental groups (sitting on boards, fund raising, funding conferences, funding joint publications) Is Big Business Buying Out The Environmental Movement?by Philip Mattera, Good Jobs FirstJune 5th, 2007

14. US: Green group attacks oil giant on climate research by Alison Benjamin, Guardian UnlimitedSeptember 26th, 2007 • "ExxonMobil invests millions of Euros funding thinktanks and lobbyists committed to blocking internationally agreed policies to combat climate change whilst at the same time spending major sums on advertising designed to present itself as an environmentally responsible company." • In the ads, Exxon claims to be reducing its greenhouse gas emissions. But FoE Europe said data from the company's corporate citizenship report showed Exxon's CO2 emissions increased by 8.7m metric tons from 2003 and 2006.

15. Beyond Propagandaby John Kenney, The New York TimesAugust 24th, 2006 A former advertising executive realizes he created one of the greatest greenwashing campaigns of all time. • Advertising is a funny business. You get to help shape the personalities of huge companies. Most often it's for cellphone service or credit cards or fast food or paper towels. Rarely are you faced with whether you ''believe'' in a product or service. This was different. This was serious. I believed wholeheartedly in BP's message, that we could go -- or at least work toward going -- beyond petroleum.

16. The least credibile source for environmental information is an ad by a major company (Iyer and Banerjee 1993) • 58% of environmental ads contained at least one misleading or deceptive claim (Kangun et al. 1991) • . . . If advertisers continue to misuse their power in promoting false ecological claims, then its power to mitigate the imminent crisis will be diminished (Fisk 1974)

19. Green Minority Green Concern Green Evolution Green Bandwagon Green Con Sophisticated Green Ethical Consumer PANIC Early 1980s 1985 1989 1990 Early 1990s 2007

20. “GREEN MARKETING” - PHASE II • Whole company must be behind effort • Credible green products • From genuinely green companies

22. What does being a green brand really mean? • Is it saying you are so? • Is it donating money to organizations that are ‘green friendly’? • Is it creating internal communication campaigns urging your employees to use paper and other materials properly and wisely? • Is it using your brand as a platform to educate and teach your consumers on what this issue is about?

23. Consumer Extremes (Kilbourne 1995) • Anthropocentric reformist • Green advertising seen as ecologically useful providing benefits to the consumer and ecology • Ecocentric radical • Green advertising is an oxymoron, advocating green consumption is advocating more consumption – the only Green product is the one not produced

24. Landor Associates ImagePower Green Brands Survey • Consumers don't understand "Green" when it comes to companies & brands. • Consumer may be interested in Green, but can't identify it. Sixty-six percent of the American population can not identify the steps a company can take to make itself more Green. • Does the packaging make the brand Green? Only fourteen percent of "Green Motivated" say producing environmentally safe products is what best describes a Green brand. • The study also found brands with green logos and/or natural packaging (i.e. Origins, The Body Shop and Kiehl's) rose to the top in the green rankings. • Green Consumers will buy brands they do not consider Green. • In the Fast Food category, the perception of not being Green does not prevent even the "Green Motivated" individuals from purchasing the products. • Consumers will also buy in Automotive & Petroleum / Energy industries regardless of brands' "Non-Green" image.

25. Sustainable Communication • ’. . . Working towards a world where humankind can preserve rather than dominate nature’ (McDonagh 1998) • Ecological sustainability as a focal point • Moving society from hyper-consumption to sustainable consumption • Demands restructuring of business, government and economy • Without considering these things the viability of green branding and sustainable communication becomes a problem (Kilbourne 2004)

26. Environmental Activity in Marketing Strategies, Structures and Functions • Level of greeness: • Not environmentally active • Slightly environmentally active • Environmentally active • Communication Strategy • Objective • Executional framework • Message elements • Consumer benefits • Driving forces

27. Agencies Doing Their Part

28. ISO 26000 Proposed Draft Section on Stakeholder Identification, Engagement and Communication • Communication is a means of providing transparency to stakeholders and is therefore a key part of all social responsibility activities. Communication also takes the form of reporting. Image and reputation issues are a part of this communication process. • There is a need for transparency, accountability and preferably standardization in reporting and other communication with internal and external stakeholders.

29. Cont’d. • Standardization in ‘terminology’ applied by corporate communication can be very helpful, although specific organizations or countries might require communication tailored to their particular needs. • The commitment of (senior) management should be visible. • IABC is partnering with ISO to work on project.

30. Needed • More rigid ethical and environmental standards • Must encompass production, consumption and disposition • Transforming the consumption process the most difficult challenge • Focus on where humans fit in nature and political reform • Near at home and dear to heart

31. Nye regler for markedsføring:- Disse miljøordene er nå forbudt • Bruk av utsagn/opplysninger, symboler og/eller merkeordninger i markedsføringen, som gir inntrykk av at virksomheten tar særlige miljømessige hensyn, eller at produktet har slike særlige egenskaperDen nærmere avgrensningen av hva som er en miljøpåstand beror på en skjønnsmessig helhetsvurdering av selve markedsføringen, hvor blant annet ordlyd, layout på påstandene og bildebruk vil kunne få betydning.Bruk av skjønnsmessige uttrykk som f.eks. ”miljøvennlig”, ”grønn” og ”ren” vil etter ombudets oppfatning alltid utløse kravene for hva som er en miljøpåstand.

32. Exaggerated Claims • ToyotaPrius: ”Verdens mest miljøvennlige bil” • Opel: ”Miljøvennlige motorer” • Peugeot: ”… den kraftfulle og miljøvennlige Hdi turbodieselmotoren …” • Suzuki: ”Salgs- og miljøvinneren” • Smart: ”Prøv verdens mest miljøvennlige og morsomme bybil…” • Toyota: ”Verdens reneste dieselmotorer” • Saab: ”… miljøvennlig turbodiesel…”

34. Three V’s of Environmental Marketing • Visibility - amount of information • Virtue - actual behavior of organization • Verifiability - allowing access to information

35. Corporate Communication and the Environment • Is perceived as reliable if: (David Bernstein) • Claims are based on past and present performance and are easily proved • The firm undertakes independent assessed audits and releases results • Improvements are measured against objectives • Commitment to environmental performance is at the board level • Environmental policy includes educating workforce • Style avoids extravagant language

36. 1. ASK: What are we making (product or service? Green or not?) How are we making it? Who are we working with? 2. ASK: how can we make…our passion and vision relevant and engaging? our consumers into advocates? How can we empower consumers to make a difference by providing them with education, infrastructure, events and experiences? • ASK: How to ensure that our approach is viewed as authentic? Transparent? Are all stakeholders aware of our intentions and progress? Is our vision embedded into the fabric of our company? 4. ASK: How can we inspire consumers? What technology and partners do we need to gain access to? 5. ASK: What would it take to achieve zero environmental impact and still meet our consumers’ needs? Can we make consumers more “responsible”? Achieving “zero” environmental impact will only come about if changes in consumer behavior can be made; engaging websites that engage consumers in more responsible forms of behavior

37. Conclusion • Accusations of greenwashing are stronger than ever and should be taken seriously. • The environment is an extremely difficult subject. • There seems to be a general atmosphere of panic. • Consumers need guidance and help. • Firms must show evidence of honest and credible behavior. • Green branding/corporate communication is necessary and useful in promoting environmentally-oriented consumption behavior.

38. THANK YOU FOR YOUR ATTENTION