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Product companies and retailers can influence behavior by interjecting green as a considered attribute in the purchase decision. There are several ways to do so including the use of eco-labels, ratings, promotional benefits or green rewards tied to a loyalty program. Eco-labels and ratings impact consumer purchase decisions by providing relevant environmental information at the point of sale – and indirectly motivate greener product design and manufacturing decisions by making green a differentiating attribute.
Today, eco-labels are actively being used or under consideration by manufacturers, (eg, HP, Dell), retailer (eg, Wal-Mart, Home Depot) and government regulators. Moreover, several organizations have taken the lead in developing or aggregating green rating systems including Green Seal, Consumer Report’s Green Choices, the US EPA’s Energy Star and independent Better World Shopper. Moreover, sites like Alonovo allow users to filter products based on their own green values.
Product companies have the opportunity to green their products – including sourcing, use and disposal. Greening a product in the first place, of course, is the best way to reduce its environmental footprint. Companies are motivated to do so for a variety of reasons including increased consumer demand, pressure from partners across the supply chain and risk to the brand simply by being complacent.
One of the best examples is Wal-Mart. For example, it has identified $10 billion in potential savings simply by decreasing product packaging. It has also required its suppliers to reduce the environmental impact of the products that it sells (eg, more concentrated laundry detergent formulas reduce the use of energy for transportation) while expanding the market for others (eg, by selling fluorescent bulbs at lower cost under its own private label).
Due perhaps, in part, to Wal-Mart’s pressure and lead, Procter & Gamble has responded with a commitment to sell $20 billion worth of greener products over the next five years. It has also joined the Supply Chain Leadership Coalition, an industry organization that pressures suppliers to publish information on carbon emissions, to help it reduce the impact of its suppliers as well.
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