Professional Documents
Culture Documents
Green Marketing
Green Marketing
What is it?
Using claims about a product's
environmental "friendliness" in order
to promote the product
Examples of “green” advertising
claims?
biodegradable
compostable
recyclable/recycled
environmentally safe
ozone friendly
Why do companies use it?
Research shows that consumers
prefer--and are willing to spend more
money on--products they perceive as
environmentally safe
More than half of American
consumers have purchased a product
because of a label that said it was
environmentally safe or
biodegradable
Are there problems of deception
with “green” claims?
Keyes Fibre Company's claims for Chinet
disposable tableware
• biodegradable
• compostable in municipal solid waste
composting facilities
• Recyclable
In fact, according to the FTC
• Won’t degrade in landfill
• Few municipal composting facilities
• No facilities accept it for recycling
Why are consumers fooled by such
claims?
consumers generally can't tell
whether a product will do what the
advertiser claims
• degrade in a landfill
• not deplete the ozone layer
even if the claims are true, it may
not be evident for five, ten, fifty or
more years
As a result of concerns about
growing use of such claims, the FTC
issued Guides for the Use of
Environmental Marketing Claims
What do the Guides cover?
Any way in which a message can be
received
labeling
advertising
promotional materials
Any form a message can take
words
symbols
emblems
logos
depictions
• ozone safe
• ozone friendly
• contains no CFCs
are deceptive if the product contains
any ozone-depleting substance
Problem: all ozone is not alike:
ozone layer in upper atmosphere is
necessary to prevent sun's harmful
radiation from reaching earth
ozone at ground level forms smog
• can cause serious breathing problems
"ozone safe" products should not
harm the atmosphere at either level
Green Power
Green marketing heavily used in
electricity generation/marketing
What is green power?
electric power that is
• generated by renewable resources
• less polluting than fossil fuels and
nuclear power
What types of power are “green”?
Wind
Bioenergy
Geothermal energy
Solar power
Hydroelectric power
Why is green power attractive to
consumers?
Electricity generation is largest industrial
polluter in US; currently produces:
two-thirds of the annual U.S. emissions of
sulfur dioxide (main cause of acid rain)
30 percent of the nitrogen oxide emissions
(stress forest ecosystems; combine with
organic compounds in sunlight to form
smog)
40 percent of carbon dioxide emissions
toxic-metal emissions (mercury and lead)
nuclear waste.
What are the “dirtiest” energy
sources?
Coal
Oil
Nuclear power
Natural Gas
What are the green power options?
1. Green Pricing
Consumers do not have to change their
electricity provider
Customers choose to pay a premium on
their electricity bill to cover the extra cost
of purchasing clean, sustainable energy
As of March 2003, more than 300
electricity providers in 32 states have
implemented green pricing options or
announced plans to do so
Green Mountain Power’s Coolhome,
Coolbusiness
2. Green Marketing
Sale of green power in competitive
markets; consumers have option to
choose among suppliers and service
offerings
• like choosing long-distance telephone carriers
As of October, 2003 green marketing was
available in nine states
• all in the northeast except Texas
• not in Vermont
3. Green Tags
Tradable Renewable Certificates (TRCs)
represent the environmental (non-power)
attributes or benefits of renewable electricity
generation
consumer pays for the benefit of adding clean,
renewable energy generation to the regional or
national electricity grid
provides same environmental benefit as
purchasing green pricing or green marketing
product
provide “green” option for people in states
where green pricing/marketing not available
Consumer Protection Issues in
Green Power
When power flows from the
generator to your house, electrons
get mixed together on the wires
• You can't specify which electrons you
get
• you can't know for sure if they are being
generated by "green" power sources
A number of mechanisms have been
established to avoid consumer
deception
1. Voluntary certification
Green-e
Establishes consumer protection and environmental
standards for electricity products, and verifies that these
products meet the standards.
Standards include:
50% or more of the electricity supply comes from one or
more of these eligible renewable resources: solar, wind,
geothermal, biomass, and small or certified low-impact
hydro facilities
if a portion of the electricity is non-renewable, the air
emissions are equal to or lower than those produced by
conventional electricity
there are no specific purchases of nuclear power, and
the product meets the Green-e new renewable requirement
2. State standards