While consumer awareness is low, tech companies are being praised for their environmental activities by others. A recent story from Newsweek ranked Fortune 500 firms based on policies and programs put in place to lessen the overall environmental impacts of their business processes and product consumption. Among CEOs, academics, and environmental experts, green ratings were dominated by well known technology firms, in part for their leadership in reducing emissions, removing toxic substances and reduced energy consumption.
Mike Bellmont, Senior Vice President with Ipsos MediaCT, said "... a lot of work has been done to build and institute environmental policies and processes (by tech companies), but the information still needs to reach consumers in terms they can relate to."
44% of consumers did not associate any technology brand tested with having green or environmentally friendly business practices in 2009 compared to 2007, when 55% did not associate any technology companies. Even Apple and Microsoft, the greenest rated consumer firms, were only associated with environmentally friendly business practices by fewer than one in four consumers.
Perceived Environmental Friendliness of Technology Brands by Consumers | ||
| % of Consumers Perceiving as "Green" | |
Brand | 2009 | 2007 |
Apple | 24% | 18% |
Microsoft | 21 | 19 |
21 | n/a | |
Hewlett Packard (HP) | 21 | 19 |
Dell | 20 | 19 |
LG | 18 | 6 |
Sony | 17 | 13 |
Kodak | 16 | 14 |
Source: Ipsos Green Technology Study, October 2009; Base: US respondents owning/using tech device with Internet access |
Highlighting the lack of consumer awareness, only 7% of US consumers associated Intel with having environmentally friendly business practices or policies, though well known by environmental experts for policies of renewable energy, a focus on energy efficiency of their products, and reducing waste and use of toxic materials.
The survey results show that the proportion of consumers who claim they investigated or considered the environmental aspects of their purchase remains low overall, with fewer than half saying they considered these issues in their most recent purchase. Consumers remain more inclined to consider the environmental impact when purchasing big ticket items, such as automobiles and large household appliances.
Environmental Considerations When Purchasing (% of Respondents Purchasing Category) | ||
Purchase Category | Considered Environment | Did Not Consider Environment |
Automobiles | 49% | 51% |
Large HH appliance | 48 | 52 |
Television | 36 | 64 |
Printer | 36 | 64 |
Computer | 34 | 66 |
Digital camera/camcorder | 30 | 70 |
Cellphone | 25 | 75 |
Small HH appliance | 26 | 74 |
MP3 player | 23 | 77 |
Game console | 20 | 80 |
Source: Ipsos Green Technology Study, October 2009 |
Technology purchase decision analysis shows that consumers are impacted most by environmental policies and features which claim to reduce energy consumption - and therefore the overall cost of use.
Bellmont notes that "... nearly three out of four consumers claim that devices that are ‘Energy Star' efficient, and devices that do not drain energy, would influence their purchase decisions." Additionally, environmental practices that would influence the consumer in the purchase decision include the following responses:
Base: All US respondents who have owned/used tech device and have Internet access
Though, while 67% of respondents reported that free electronic recycling programs offered by the manufacturer/retailer would influence their purchase decision, only 38% said they are aware of these programs and only 8% say they have taken part in these programs.
Bellmont concludes that "One in three consumers say they are willing to pay more for a green positioned product, so these perceptions can positively impact the bottom line for companies in the technology sector... "
For more about the Ipsos Green Technology Report, please go here.
Consumers may not be researching how "green" a company is before making a purchase, but a story we just aired shows that executives are considering their environmental impact -- particularly the costs involved. That would put companies and consumers on the same path -- both wanting less impact. http://www.pbs.org/nbr/site/features/special/green-options_home/
It may be that we are in an early stage of the consumer transition to more eco-awareness - but I see it coming. Consumers are certainly aware that "green" is already a "trend," so know they SHOULD be looking for Energy Star and the like. As more companies get smart about communicating their various sustainability-focused practices to their customers - consumers will appreciate being more informed and will start to name those noticeable brands as the leaders in "green." At this point, some consumers will dig for that sort of information, but the masses will take in whatever they see in ad campaigns. I read of a related survey earlier this year and it showed that the big brands that did the most communicating about sustainability (Walmart anyone?) were already "known" for it, even as quite a few other brands were really doing a better job or had been at it for a bit longer. There's huge cost-savings opportunity for companies in "resource efficiency" according to Paul Hawken and Ray C. Anderson (among others), but I also see huge opportunity in learning to communicate the how and why of it all.
Ratings are key in making companies accountable. I guess it's more relevant for some than others with regards to consumer interest in their corporate responsibility strategy. Petrol, manufacturers etc will have much broader focus and exposure than computer chips from the general public. Although I can understand that their target audiences may be beginning to make choices based on eco-ratings.
I've just blogged about a recent Time survey and CSR at brandhabits.net.
Lack of awareness equal poor messaging to the target market.