Eco Risk And Reward

Record fuel prices and concern over climate change have many seeing red — and many brand marketers thinking green. A growing number of companies are considering wearing environmental responsibility as a badge of honor, in the form of a green logo — a move that’s rich in risk and reward.

Done well, an eco-logo lets a company claim due credit for good environmental citizenship. Executed poorly, it can backfire, drawing charges of green-washing (exaggeration of environmental claims).

And while there are no rules about what makes it acceptable to declare oneself green, much less worthy of a special logo for it, the intention to become environmentally responsible clearly isn’t the same as success. Confusing the two could hurt your brand — as illustrated by some recent high-profile forays into eco-branding:

• FedEx committed to hybrid trucks as a way to reduce its greenhouse gas emissions, only to be chastened when Business Week noted in October 2007 that “FedEx has purchased fewer than 100 hybrid trucks, or less than one-third of one percent of its fleet.”

• GE has put millions behind its well-known ecomagination campaign, touting technologies that truly do improve energy use and environmental sustainability. But it’s unclear whether the 8 percent of sales these products represent will be enough to withstand public criticism.

• Ford Motor Co., embarking on ad campaigns that promote energy independence and use of alternative fuels, has been accused of green washing by vocal activist groups who decry the automaker’s low overall MPG rankings.

General lack of agreement on what green really means is a major complication. Is it about reducing energy use? By how much? Or is one’s carbon footprint more important? Where does sustainability fit in? Ironically, the more green is used, the less it seems to convey anything specific.

The issue is further complicated by the lack of any U.S. code of green standards, which leaves self-appointed critics and activist groups free to set their own criteria — some reasonable, others less so — for evaluating corporate environmental programs and brands.

A green, sustainable brand — and any logo that represents it — must stand for something, and it’s the responsibility of the brand owner to communicate, clearly and concretely, what its eco-logo means.

One approach to making environmental claims tangible is adoption of an established seal of approval from a trusted third party, which has clearly set forth its judgment standards. The Federal Trade Commission has only just begun to define green-packaging guidelines. But U.S. industry standards are beginning to emerge, such as the EnergyStar logo for devices that use electricity frugally.

You’d think conveying green in business-to-business marketing programs, without all those fickle consumers to satisfy, would be fairly straightforward. However, as environmental scrutiny extends along the supply chain, your customer may need to show its constituents that they use green suppliers.

Obviously, there is a lot left to shake out, and, until clear guidelines are established, marketers who want to claim credit for bona fide advancements by developing a symbol or logo should consider the following:

• Avoid flimsy claims that stretch the truth or cannot be solidly backed up with tangible proof — proof that you can make public immediately.

• Consider that certification and a stamp of approval from a trusted government agency or other third party might be all the visual expression you need to proclaim your environmental commitment.

• If you opt for an eco-logo, make sure it’s distinctly different from third-party stamps of approval, to avoid customer confusion about your claims.

• Use a transparent process for measuring your brand’s environmental footprint, and make it freely available. If you can’t explain your process clearly and succinctly, you probably should not build branding around it.

• Ensure that partners and customers in your sales channel understand your position, how it will benefit them, and how they should portray it to their own customers.

Andrew Wood is vice president and director of marketing at Mintz & Hoke Communications Group in Avon.