With the continued evolution and expansion of the green movement, many companies are facing increased pressure from their business partners, vendors and their supply chain to provide meaningful data about the environmental impact of their products and services. While some businesses have reacted to this development by treating environmental sustainability as a compliance or risk management issue, some progressive and forward thinking companies have found a way to use environmental stewardship to their competitive advantage.
With mounting pressure from customers, some companies may actually need to expedite efforts to assess their environmental footprint – even in a down economy.
The Walmart effect
On July 16 2009, Walmart announced plans to develop a worldwide sustainable product index. As a first step, Walmart provided its top-tier US suppliers with a series of questions intended to evaluate the environmental footprint of those companies. Now Walmart is in the process of expanding distribution of the survey to each of its 100,000 suppliers around the world. The survey serves as an initial gauge for assessing the sustainability of suppliers; however, Walmart intends to use the sustainability data as a factor in purchasing and store placement decisions.
Not just interested in the sustainability of suppliers, Walmart has also convened a working group to tackle the issues of product stewardship and transparency. The retail giant’s Sustainability Consortium is tasked with developing a ‘Sustainable Product Index’, a labeling tool that will provide a rating about a product’s environmental footprint.
B2B marketers should stand up and take notice of this new development. The Walmart initiative is bound to be a game-changer for environmental transparency efforts worldwide.
Building an eco momentum
Even in the midst of significant global momentum, most businesses aren’t capable of being transparent because they simply don’t have the necessary data. Many companies don’t have the internal systems and controls in place to establish a reliable performance benchmark, while others are challenged by decentralised operations.
Due to its role as both the creative nucleus and public face of the company, marketing departments can play an integral role in building internal and external momentum for sustainability programmes.
The first step to implementing an effective environmental programme is to educate and engage internal audiences. Marketing professionals can help to build a case for sustainability and empower other employees to actively participate in decreasing the company’s overall environmental footprint.
In addition to playing a key role in educating internal audiences about the value and requirements of a sustainable workplace, marketers can also help to capitalise on those programmes with external stakeholders.
A distinctive corporate sustainability programme can be a powerful market differentiator and hook for strengthening and expanding relationships with existing customers. Sustainability is also a potent tool for reaching out to environmentally savvy prospects, so marketers should work in close collaboration with research and development divisions in their companies to ensure that sustainability is factored into the design of new product and services.
Greenwash-proof your messaging
It’s not enough to simply put a green ‘gloss’ on current products or practices. While it’s acceptable to explain how existing products or services can help customers reduce their own environmental impact, ‘green-branded’ options must have – or result in – a measurably smaller environmental footprint than their traditional counterparts.
Marketers have an important role to play in communicating those environmental benefits to external stakeholders. In some cases, fear of greenwashing accusations can prevent some companies from publicly celebrating their environmental efforts. But when it comes to sustainability, the best defence is a strong offence.
Although demand for increased transparency may increase awareness and investment, marketers can make a bigger impact by positioning environmental stewardship as branding opportunity.
