Green Wash: The cost of claims and do consumers care?


12:44 AM Thu 5 Feb 2009 GMT
'Costing more than regular products, 'green' items are the flavour of the month in most industries - but in tough times, consumers don''t seem to value such claims.' .
The green ethic is all pervasive in the supermarket, in the automotive industry and gradually, it is creeping into boating. But do consumers care? New research states that nine out of 10 do not trust eco-claims. But the ACCC certainly does and is coming down hard on brands and manufacturers whose marketing claims stretch the truth.

The consumer watchdog, the Australian Competition and Consumer Commission, is committed to investigating cases of potentially misleading green advertising, or 'green washing' as it has become known.

The organization has warned other businesses to 'err on the side of caution' when spruiking their green credentials and ACCC chairman Graeme Samuel said more companies were being checked after the ACCC's recent actions against Saab, EnergyAustralia and Origin Energy.

It recently released guidelines explaining the Trade Practices Act as it applied to green marketing. 'We are now starting to experience over-selling and under-delivering, and potentially misleading conduct,' Samuel said.

Consumer group Choice is also shining the spotlight on those exaggerating their eco-credentials, as a 'particularly obnoxious' form of marketing deception. If the morality of the issue doesn't force companies into compliance, maybe the penalties will? Companies found guilty of 'greenwashing' face fines of up to $1.1 million.

But while ad agencies and brand managers feel they've hit upon the 'next big thing' in USPs (unique selling propositions), research has found that consumer skepticism and tighter budgets mean green products are no more appealing than their competitors.

The study by design firm, Blue Marlin has found that concern over the environment does not necessarily translate into sales.

Being environmentally responsible was one of the least important drivers, according to the findings of the survey. Even among supposedly 'green consumers', only a small proportion said they are motivated by environmental product claims.

Overall, two thirds of respondents said environmentally friendly products were overpriced, rising to 72 per cent among families with children.

Mobium Research also confirmed this trend. Its study last year measured the attitudes of 1700 consumers and found that the number of people who said they were willing to pay a 25 per cent premium for a product that was 'made in an environmentally friendly manner' had fallen from half in 2007 to a third.

It also found that almost nine in 10 consumers distrusted green claims.

In the marine industry, the US is leading the charge, with boat shows boasting 'Green Zones', showcasing products and processes that espouse eco-themes.

Green boating guides are popular in the US. - ..


Such displays feature eco-friendly boats and products, including hybrid boats, electric outboards and non-toxic, biodegradable boat soaps, engine additives and waste disposal.

Engine manufacturers compete on the same turf, each touting its own technology and ticks of approval with European, US and local EPAs, vying for a slice of consumer conscience.

There are also myriad lists of 'green boating tips' doing the rounds, such as recycle old lead-acid batteries and monofilament fishing line, prevent fuel spills, use an autopilot and replace that old outboard. You could even eat responsibly-harvested seafood and feel the green!

www.miamiboatshow.com/dbcenter/greenboating.aspx

Exide Technologies market a specialist range of marine batteries. According to Denis Dwyer, marketing director Asia Pacific, the brand has always been proactively involved in the recycling of batteries 'long before it ever became 'eco-friendly', 'green washing' 'enviro-friendly' or other current moniker being used for the responsible recycling of valuable resources.

'The Exide manufacturing facility in Elizabeth, South Australia has been using recycled polypropylene for battery cases and recycled lead for many years and trademarked the 'Black is Green' slogan to describe the recycling of all colours of polypropylene battery cases into new black battery boxes.

'This follows the commitment to capture spent batteries from the market and subsequently then crush and smelt the spent products to regain the polypropylene and lead. This all happens at our company owned smelter in Wellington NZ to service Australia and NZ. In fact, we are the only battery company in Australia and NZ to own and operate our own smelter for the purposes of recycling lead acid batteries.'

As Dwyer explains, the lead starting battery industry is one of the most responsible. 'It has been estimated that over 90% of batteries sold each year in Australia, are captured for recycling and contribute to keeping our environment cleaner. The very fact that so much lead (60K+ Tonnes PA) is recycled , prevents that same amount being mined below the ground . Exide is the only Australian manufacturer using recycled polypropylene to produce new cases but the balance of the recycled material is reused in the plastics industry for other uses.

'There are two other smelters in Australia that accept junk batteries and recycle the polypropylene and lead, so along with our facility , lead acid starting batteries including those used in marine applications, would be among the highest percentage of recycled goods right up their with glass bottles(26%),paper (45%),aluminium cans (55%)and tyres (26%).'

There is also a second tier of battery recycling that can also be weighed against the current push of replacing internal combustion engines with battery powered electric to gain a smaller carbon footprint. 'This may be slower within the marine markets, but is even there today with electric motors used for steerage and the popular bass fishing,' says Dwyer. 'However the current focus is all about electric vehicles (EV). Again this is not new to the battery industry that has been supplying recyclable battery power for years in the forklift industry, thereby creating a lower carbon emission for each user.'

Dwyer says that the green ethos is extremely important to Exide and prominent in its consumer marketing, with the recycle and 'Do Not Bin It' logos encouraging consumers to recycle responsibly.

'Exide plans to work with the Australian Battery Industry Association(ABIA) , government bodies and the battery reseller market to continuously improve the reclaim rate to ensure batteries remain a recycling imperative and a 'green' choice for consumers.'

It's a realm of high energy and diesel fuel consumption, but Australia's boat builders are certainly doing their part to embrace green principles, while perhaps not marketing their initiatives at the forefront.

Riviera says it's quietly going about reducing its carbon footprint and those of the boats it produces by reducing emissions through the development of closed- moulding technologies, introduction of composites that help reduce weight in boats and adopting more efficient engine and drive train technologies such as pod drives.

'We encourage owners to add desalinators rather than carry heavy water loads, further improving boat efficiency,' says Denby Browning, media manager, adding that the company last year won a Gold Coast City Council Award for excellence in water conservation. 'We catch and utilise rain water, we recycle water and we have adopted recycling of paper and packaging.'

Marinas too are taking up the challenge, with the introduction of the Low Carbon Marina Initiative - a national, voluntary certification program for marinas, yacht clubs, boat clubs, slipways and other associated industry operators across Australia.

The vast dry stack facility at the Gold Coast City Marina now sports and $80,000 rain water collection system and wins major environmental award for the marina. - Triple triumph for marine industry in business excellence awards. - Click Here to view large photo



Marinas participating in this program reduce the impact their operations have on the environment and are able to promote their marina as one that is part of the solution for climate change. This is a marketing strategy to enhance a participant's public image, as well as laying the groundwork for the marina industry to prepare for future legislation on climate change.
The MIAA and the Carbon Reduction Institute anticipate a 20% reduction in overall greenhouse levels from the marina industry by 2015 through the Initiative.

Operator of a Low Carbon or Carbon Neutral Marina are eligible to use the Low Carbon Marina Initiative logos and collateral.

Soldiers Point Marina, the country’s first certified carbon neutral marina. - ..


Since its introduction last year, Superior Jetties has been certified as 'LowCO2', as has Bellingham Marine and Soldiers Pt Marina, 2007 Marina of the Year, was the first to be certified 'NoCO2' under the Low Carbon Marina Initiative. It was totally rebuilt to world-class standards and was required to undergo a comprehensive carbon footprint analysis with the Carbon Reduction Institute, and a subsequent implementation of customised carbon reduction strategies and the purchase of certified carbon credits.


Home grown green boating in the form of a hybrid vessel by Solar Sailor. - ..


Over at Honda Marine, Chris Schultz reports it is the only company to have 3-star ratings for all of its engines, 'therefore it is obvious that being 'green' is important to Honda'.

'I personally agree with the comments in the report that being green does not translate into sales but that is not why Honda has such a strong focus on being green. Our company philosophy is based on 'leaving blue skies for our children', since Mr Honda founded it in the late 1940s. This shows that whereas many companies (in all industries) are only giving lip service to the green movement, we at Honda are really doing something about it. This philosophy stretches into all aspects of our business - solar, electric/hybrid vehicles, discontinuation of any two-stroke motorcycles, power equipment, marine or indeed engines of any kind.'

The statement on the company's website reads: 'Honda recognizes that the preservation of natural resources is not only a corporate responsibility but also an important company fundamental. Reducing the burden on the environment at every stage in a product's life cycle - from research and development through manufacture, sale, usage, and disposal - is at the core of Honda's corporate culture and philosophy.'

So dedicated is Honda to incorporating green principles into its manufacturing at every stage, it has an entire section expounding its credentials and commitment. (world.honda.com/and then click on 'Green'.)

Company founder, Mr Soichiro Honda was dedicated to 'water cleanliness' and other measures. The company adopted the policy of manufacturing only four-stroke outboard engines back in 1964. Mr Soichiro Honda gave the following directive to Honda staff:

'Two things are most important: If they are not reliable, people's lives can be endangered. Second - water cleanliness. What will happen to our oceans, lakes and rivers if all that exhaust gas mixed with oil gets pumped into the water? I don't care if everyone else is making two-strokes - Honda has to make four strokes.'

Schultz believes that in the future, substantiated green credentials will encourage or force governments and consumers to think green. 'In the tough economic times the green aspect may not be strong but as the economy recovers it will become more so.'

The Haines Group, manufacturer of Haines Signature and Traveler boats and exclusive distributor for Suzuki engines, says that while the company aims to incorporate practices and principles that are definitely enviro-conscious, boating by its very nature has an impact on the planet.

'It is fair to say that the only true way to be 100% green when boating would be to dust off the oars and sails,' observes marketing manager, Martin Beeson. 'Which would be similar to asking commuters to take the bike to work rather than the car. A good theory but for the many such as I who commute long distances (55kms) it is not safe, practical or if I am honest physically possible. While our mode of transportation is always a choice, I would also not choose to row to Moreton island or sail to an off shore fishing spot just as I would not cycle to work.

'So our decision is really to lessen our environmental impact by making informed choices.'

With boat building the process of manufacturing both fibreglass, aluminium and poly boats has an environmental impact.

'Tinnies use an immense amount of energy to press and weld their hulls, fibreglass has styrene emissions, the new process developed by The Haines Group of closed moulded fibreglass production called RIVALETM (resin injected vacuum assisted low emissions) has reduced styrene emissions to virtually zero and material wastage considerably. As a result the consumer benefits from a stronger, lighter and more consistent hull or component part.

'Many of our boats are also foam filled to give additional floatation, we have chosen to use a closed cell foam which has benefits of not absorbing water but also vastly reduces emissions from this process.

'Saving and recycling water during any manufacturing process is a given in the environment/climate in Australia. In terms of manufacturing we are given choices as to what material we use and there is an environmental trade off with some.

'However the better quality materials often have the best environmental credentials and the new processes always take the environmental impact in to consideration. Therefore it is an informed choice by most manufacturers. As we strive for quality in our manufacturing at The Haines Group and firmly believe we make the best boats possible, by doing this we have seen the result in Wacol is less environmental impact.

Then there are engines. 'You can choose an outboard that clearly uses less fuel and burns that fuel cleanly such as an EFI 4-stroke'.

As Beeson explains: 'Older technology is guilty of dumping excess fuel and oil in to the water out of the exhaust pipe or burning it in a cloud of smoke. Not adding oil to your fuel by choosing a 4-stroke also lessens the impact on the environment.

'As most people know a 2-stroke lubricates 'as it goes' by burning oil with fuel at 100:1 at best, a 4-stroke lubricates with oil in the sump of the engine which can be disposed of responsibly during servicing. As for noise pollution, it is obvious to all who camp at the ski lakes or live on the waterways that not disturbing (or sneaking up on) the wild life is certainly not possible with the older technology outboards!'

From a marketing perspective, Beeson has found that these features do give the boats and engines green credentials, but he says 'the majority of consumers seem to be interested in the benefits to them rather than the environment. As a manufacturer we have a duty to the planet not to destroy it but it does seem that being more environmentally friendly is a secondary benefit to the consumer.

'So our marketing will continue to focus on the benefits to consumers, such as less fuel, less fumes, less noise, lighter, stronger, better value, more reliable, better resale.'




by Jeni Bone


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