Can You Afford Not To “Go Green”?

The last few years have seen a dramatic increase in public eco awareness, specifically in ‘green’ consumer knowledge. This massive and sudden surge of information has created noticeable shifts in global social, environmental, and consumer expectations. Businesses realize they can no longer afford to not take notice.

“The fact that consumers continue to be interested in the environment and mindful of corporate efforts, even in the midst of a grueling recession, is evidence that this is more than just a passing trend,” says Jonathan Yohannan, Senior Vice President of Corporate Responsibility, Cone.

Leading businesses realize the strategic implications of these business sustainability trends:

1.    Competition is increasing: 2007 saw the largest increase in ‘green’ patent and trademark applications since 2000 , as businesses seek to attract the interest of the ‘green’ consumers.

2.    The dynamics of the market are changing: a recent consumer survey indicates buyer interests for sustainable products is increasing.
•    35 percent of Americans have higher interest in the environment today than they did one year ago.
•    35 percent of Americans have higher expectations for companies to make and sell environmentally responsible products and services during the economic downturn.
•    70 percent of Americans indicate that they are paying attention to what companies are doing with regard to the environment today, even if they cannot buy until the future.

3.    Product alternatives are more readily available: the shear number of alternative products and services available to consumers today is making the need for product and company differentiation more important.

4.    Consumer knowledge has expanded: greenwashing is a "failed corporate strategy" that consumers are increasingly quick to identify and condemn.

5.    Supply chains are aligning with sustainable businesses: economic pressures are redefining the relationships between buyers and suppliers. Leading companies are integrating sustainability concepts into their supply chains and suppliers are following suit.

At Taiga Company, we are aware of the pressures facing businesses today. In addition to economic challenges, consumers are raising their eco awareness and holding business accountable for their actions. As sustainability consultants, we view it as essential for businesses to seek out opportunities to improve their competitive position in response to consumer and market expectations.