From corporate empires to small businesses, many companies are touting environmentally safe practices and products to gain the competitive edge.
While the notion of being a “tree hugger” or “eco-friendly” once may have elicited eye-rolling and warnings about rabid environmentalism by both the general population and business community, there’s been an about-face as consumers and business alike have increased their interest in all things green.
“Now we are seeing that environmental responsibility is in the direction of many organizations,” said Gary S. Mattes, president of Boomm Marketing and Communications in Westchester. “In the past this really wasn’t part of the process.”
A company like BP has dropped the “petroleum” from its name and has committed itself to better environmental practices, while airplane manufacturers extol the benefits of reduced carbon dioxide emissions and construction firms are producing more “green” buildings.
From transportation companies and developers to major fuel companies to commercial printers, it seems that nearly every industry has found ways to capitalize on green virtues.
What they have also found is that they have improved their bottom line.
Growing trend
“There is no question that this is a trend in the industry (marketing),” said Robert Brandt, CEO of Robert Brandt and Associates in Burr Ridge. “We have seen this pick up in the last 10 years.”
While many companies have been green for decades there has been a large increase in the last five years in consumer products that have been marketed as “green.” The Chicago-based Mintel International Group Ltd. estimated the green marketplace at more than $200 billion in 2006.
As issues like global warming and renewable energy have seeped their way into the public conscious through pop culture in films like The Inconvenient Truth, companies are more likely to tap into the heightened consumer sensitivity to these causes.
“As a marketing strategy it probably can’t be your lead selling point, but it definitely can be a point of difference,” said Brandt.
Leopardo Construction in Hoffman Estates has seen an increase in client demand for green buildings. The company has completed seven green buildings and has begun to educate potential clients on the benefits of building a green structure.
“Most of our environmental initiatives have stemmed from client demand,” said Todd Andrlik, director of marketing and public relations for Leopardo. “The green movement in construction is very high on consumers’ wish list.”
The National Association of Home Builders predicts that the green building market is expected to grow from $7.4 billion and 2 percent of housing starts to as much as $38 billion and 10 percent of residential construction activity by 2010.
The commercial market has seen an increase as well, as many companies want to occupy green buildings not only to offer a public image of corporate responsibility but also for the long-term potential savings.
Green buildings can cut energy spending by 20-50 percent, said Andrlik.
Andrlik sees it as a win-win situation for both parties in his company’s scenario.
“As with any smart business, we try and stay ahead of the industry trends,” said Andrlik. “We get public recognition for our leadership and responsibility and these buildings have a better environmental impact. Who doesn’t want that?”
Money savings
John Puscheck, CEO of Prager Moving and Storage Co. in Naperville, was looking for ways to cut costs and found that adopting a few environmental practices could achieve this and was simply “the right thing to do.” He branded it within his company and called it the “Moving to Green” project.
“From our standpoint, we use a lot of fuel,” said Puscheck. “One thing we could do was lessen our fuel use and help save money right away.”
Puscheck purchased generators that could help heat a truck at night without having to run it in idle. He has already installed these generators in some of his trucks and has found that the initial cost is quickly made up for in fuel savings.
He is also experimenting with the idea of switching to bio-diesel fuel to cut down on carbon emissions and to save money.
Puscheck discovered that once he took initial steps to going green he couldn’t help but look at all aspects of his business. He signed up with the city of Naperville as a partner in its renewable energy program where he pledged to use 12,000 kilowatts of power each month from wind farms in Southern Illinois. This is 25 percent of his company’s energy use.
“In the past I never looked at doing these things, but now that I have put a focus on it I am starting to see things everywhere,” he said. “We use energy-efficient light bulbs and have our employees turn off their computers at night. Those little things make a difference.”
Prager has also noticed that his current line of thinking includes whom he chooses to do business with as well.
“We switched our office cleaning company because we found one that uses environmentally safe products,” said Prager.
Consumer interest
Julie Philips, co-owner of Sir Speedy Printing in Naperville, said that consumer interest was the tipping point for her company to invest in a digital press that is environmentally safe and does not use hazardous chemicals.
“I’ve talked to numerous people in Naperville who have said that if it was a close quote between two companies and one was environmentally friendly, they would go with the environmental company,” said Phillips. “This press puts us in a new niche.”
Phillips said that she markets the virtues of the digital press for its quality, but also for its reduced environmental impact.
“The chemicals in this business are all regulated, but they are nasty stuff,” she said. “It is an extra cost to dump those materials, but some companies don’t always follow the guidelines.”
Phillips expects that reduced costs for waste removal and increased consumer reaction to the environmentally friendly press will make up for the large investment.
However, one issue that remains to be addressed is just exactly what it means to be “green.” While some industries have government regulations by which they must operate and the construction industry is monitored by a LEED certificate program that sets standards for green buildings, most other industries are not tracked as to how they use the term “green.”
Green washing
“The trend can become a slippery slope,” said Brian Davies, partner at Moveo Integrated Branding in Oakbrook Terrace. “If too many people start marketing themselves as green without proof points, it can appear disingenuous.”
Davies used the term “green washing” to describe this scenario. He suggested that the federal government will eventually have to come up with standards as did the Food and Drug Administration in the case of natural and organic foods, but as of now there are no government agencies monitoring these claims.
However, Davies believes that many companies are making this a big deal for the right reasons and that as consumers become more sensitive to the issue it will become a greater selling point in the future.
“In the past, consumers could not name a green brand and they saw them as inconvenient, but now people really are starting to make it a part of their personal agenda,” said Davies. “If they have a choice and one product is eco-friendly, why not go that route?”