The Living LOHAS 2 report, the latest research publication from the Mobium Group, a Melbourne based consumer research company has predicted $22 billion will be spent in Australia on green products by 2010¹. The key growth areas where projected spending is likely to go are sustainable building and renovation products, appliances, home wares and household cleaning products².

The study also found that consumers are becoming increasingly concerned and aware of corporate greenwashing, stating that 9 out of 10 currently treat green claims with scepticism and distrust. Mobium director Andrew Baker said “the extent of greenwashing over the past 12 to 18 months is seriously jeopardising the goodwill of Australian consumers to pay a premium for environmentally responsible products and services”³.

Green companies
Listed in the report are companies that consumers deem to be the most green. For the second year running The Body Shop came in on top, with Earth Choice, Westpac, Planet Ark and Origin Energy completing the top five⁴.

Consumers want more disclosure
Ross Wyatt, general manager of Net Balance Foundation, a business and sustainability think tank organisation, said that 64 percent of Australians are ‘very concerned’ about climate change. However he said that only one in 7 trusts Australian businesses when it comes to their claims and information about climate change.

Speaking at a recent Carbon Innovators Network event Mr Wyatt referred to a study conducted by NetBalance, stating that over 70 percent of consumers want companies to disclose more information regarding how their products and services contribute to climate change. According to the Mobium research, one way to reliably communicate a company’s or product’s green credentials is through credible third party verification⁵.

ACCC taking action
It is not just consumers who are beginning to be wary of false green claims either, the ACCC is coming down on companies it recognises as making false claims about their green credentials. Kate Norris from consumer advocate group Choice says “we have had the ACCC cases come down recently against Saab and V8 Supercars and that action is fantastic but it is also putting the spotlight on green claims... in the long run it should mean that claims get cleaned up and consumers can be more confident about them”⁶.

These trends, both consumer and regulatory, mean that companies recognising the value in green marketing must ensure they can back up what it is they are advertising. If they are unable to do so, more and more the implications on reputation and the bottom line will undoubtedly prove too great for them to consider making unsubstantiated claims.

Key findings from the Mobium report

• The natural, healthy and sustainable consumer products and services market has grown by more than 25% since 2007.
• 90% of Australians are concerned about climate change, but the impacts of climate change and claimed benefits of carbon trading are poorly understood.
• Whilst a majority of consumers want business to improve their environmental performance, 88% treat ‘green’ claims with scepticism and distrust
• Australians see credible third party verification by well-known, trusted organisations as the best way to distinguish between greenwash and genuine environmental claims.

(Source: Consumer Trends Report, Living LOHAS 2’ Mobium Group, 2008)

References