Commentary

Lessons From The Green Room

The future came into focus on the National Mall in Washington, D.C., on April 25, but you had to be inside the tent to see it. Some 200,000 people gathered for a combination rally-concert-seminar for the 40th anniversary of Earth Day. The passion of environmental and political leaders melded with the music of legends like Sting and Bob Weir. But the real statement was being made backstage.

In the "Green Room," a hub for VIPs hosted by Earth Day Network and Future Friendly (the P&G sustainability brand), dozens of politicos, CEOs, and artists staged high-level forums on doing the right thing for our world.

In both formal and informal groups, they talked about how to tackle key issues of our day: creating green jobs, reducing climate/energy/CO2 impact, and saving rain forests and biodiversity in ways that could re-weave the fabric of corporations. This wasn't just talk about the latest green marketing campaign. The "Green Room" was the epicenter of the real action.

That's a metaphor for where we all need to go: beyond green to change as business. Rather than seeing green as a marketing opportunity, we have to invest in and embrace sustainability in all forms. That means the best marketing is actually driving the change, not simply attaching to it via a promotion. Effect marketing, not cause marketing.

Said another way, it's not a promotional gimmick or even a traditional brand campaign. It is a reflection of a complete corporate social responsibility effort, where the company is instituting change in its organization, networks, and the world. The onus is on change itself, not just how you can profit from the public perception of it.

Look at the Newsweek "Green Rankings," and you'll see which companies are truly embracing sustainability and which are simply marketing it. For example, General Electric has spent handsomely on improving its image via "EcoImagination." That campaign has created a whooping 94.30 "reputation rating" (100 is the best) but only a 38 green policies score (indicative of actual efforts). The gap is a liability until GE quantifiably reduces its footprint as much as its advertising suggests.

Contrast this with Wells Fargo, which walks more than it talks on sustainability. The bank has invested more than $5 billion in clean energy and construction since 2005, earning a 93.3 for environmental impact and 80.12 on green policies; yet it scores only 38.96 on reputation. The company has real upside potential from sustainability marketing; it's already leading the action.

Brand leadership is the next step in the green movement: putting the company at the epicenter of a cultural shift. That is the power position that will redefine brands as issues related to sustainability become paramount.

To do this, marketers have to commit their brands to social change itself.

For starters, that means looking at your entire portfolio to identify ways to revamp products for reduced environmental impact. Then you can educate consumers on the impact they can make by using them.

When the world's largest companies -- which happen to be the largest advertisers as well -- focus on educating and motivating consumers to make better choices for the environment, the impact will be staggering on two levels: (1) the sales needle will jump, and (2) others will follow suit as this action proves you can actually increase profits by doing the right thing.

Attributes, loyalty, and profits get tied directly to social change impact. That's a world beyond "buy this product and we will plant a tree for you" -- the spirit of most green marketing.

When millions of people use one of your products every day, fully linking social change and profit can move the world. The U.S. government now realizes this and the EPA is encouraging corporations to use their commerce engines for environmental preservation. Smart companies will embrace the opportunity to play quarterback on positive change in other arenas as well.

2 comments about "Lessons From The Green Room ".
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  1. Andrea Learned from Learned On, LLC, May 12, 2010 at 9:37 a.m.

    Great post, Michael. It's so obvious. Increase sales AND add to the "social proof" that integrating/committing to sustainability is beyond smart business! Is anyone interviewing the laggard corporations about what the heck is keeping them from moving forward with sustainability? They must be wallowing in shame - and perhaps their executive teams are hoping they can keep their heads down and retire before they really get called out on their lack of innovative thinking... But, at this point - they are running out of places to hide.

  2. Ray Ruzicka from Schupp Company, May 12, 2010 at 12:05 p.m.

    Ironic that P&G hosted this conference. My take is that their sustainability brands effort is simply a positioning exercise. When they continue to rely on trees to satisfy a demand for soft toilet paper...a demand which they help to create and foster...you have to question whether they are really trying to drive change.

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