Commentary

Consumers Need More Green Awareness

According to the annual Ipsos Green Technology report, few technology purchasing consumers are aware of specific environmental policies and practices of technology firms, despite the efforts of companies and the accolades in the media. Though few are aware of specifics, environmentally friendly policies and programs are becoming more top of mind for U.S. consumers when making technology related purchase decisions.

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

Google

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:

  • 73% say an Energy Star rating would  influence purchase
  • 72% if the device doesn't drain energy when not in use
  • 67% if the manufacturer/retailer includes a free recycling program
  • 65% if the manufacturer uses environmentally safe materials
  • 63% if the manufacturer recycled or disposed of the product

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.

 

4 comments about "Consumers Need More Green Awareness".
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  1. Lynne Tierney from Nightly Business Report, November 3, 2009 at 5:07 p.m.

    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/

  2. Andrea Learned from Learned On, LLC, November 3, 2009 at 5:34 p.m.

    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.

  3. Andy Wright, November 3, 2009 at 8:05 p.m.

    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.

  4. Rodney Brooks from ToTouch One, Inc, November 4, 2009 at 1:27 p.m.

    Lack of awareness equal poor messaging to the target market.

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