Is ‘Greenwashing’ Really Affecting Consumer Behavior?

As consumers increasingly scrutinize business actions, they want to see transparent, more credible information on what companies are doing to meet ‘green’ claims. Product and service buyers now expect more information on what companies are actually doing to be environmentally and socially responsible. This has many out there discussing the growing problem of ‘greenwashing’ . But is greenwashing really affecting consumer behavior?

Despite the challenges of the current economy, consumer reports indicate general eco awareness is on the rise and the demand for environmentally friendly sustainable products and services continues to remains high. In fact, the 2009 Cone Environmental Survey found that attitudes toward environmentally responsible products remain strong despite a weak economy. The results reveal:

•    35% of Americans have higher interest in the environment today than they did one year ago

•    35% of Americans have higher expectations for companies to make and sell environmentally responsible products and services during the economic downturn; and,

•    70% 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.

According to BSR, a leader in corporate sustainability, businesses who engage in greenwashing are putting themselves at risk. In a recent report published in partnership with Futerra, Understanding and Preventing Greenwash: A Business Guide, people want products that they believe are better for the environment, but they are skeptical of messages when they come in the first person. When consumers recognize false or misleading information, they are likely to punish companies with less sales.

Leading businesses recognize the growth in eco awareness and are actually leveraging consumer knowledge to their advantage. BSR outlines eight areas that are becoming expected business sustainability practices for shaping and delivering claims about product environmental attributes.

•    Know your products’ biggest impacts
•    Be transparent
•    Bolster your claims with independent verification
•    Avoid making claims “in a vacuum”
•    Enable and encourage consumers to act
•    Understand your customers and target different market segments in different ways
•    Anticipate game-changing technology
•    Participate in the rule-making

At Taiga Company, we are excited by the fact that eco awareness across all demographics is on the rise, general consumer preference for greener products continues to be strong, and consumer expectations continue to drive the development of more competitive green products. As a sustainability consultant working with business and individuals to create a business sustainability plan or a more sustainable lifestyle, we encourage clients and friends to make a choice for ‘green’ at the cash register.