Can retail lead on green products?

A retail push on green products? It might have seemed savvy when the economic going was good, but what does it mean today, asks Dax Lovegrove.

When times are tough,affordability steps into the limelight and sustainability can be pushed out of sight. Surprising then, that while some consumers and retailers content themselves with cheaper wins, others are pressing ahead with the move towards greener products and services.

Take B&Q. The UK’s largest DIY store has committed to phasing out the sale of controversial patio heaters, taking at least one environmental decision out of customers’ hands. It’s part of a wider commitment to have a sustainable product range in store by 2010.

Other companies are starting to take a systematic approach to looking after the natural capital they depend upon, such as fish, forests, water and soil. For example, Marks and Spencer (M&S), the bank MBNA, and other members of WWF-UK’s Forest and Trade Network are vigorously promoting the use of paper and timber products which are certified as sustainably sourced by the Forest Stewardship Council.

At times like these, you have to ask, what’s in it for them? With energy companies complaining that promotions around efficiency measures have had low uptake, and retailers asserting that there’s no way customers on tight budgets will pay a premium for green goods, what makes these companies so sure they’re setting a trend their customers will follow?

Professor Tim Lang, advisor to the Government on food security, thinks he has the answer. As he sees it, the need to be well-placed for the future is a major driver behind these efforts. Take, for example, Birds Eye’s push on pollock fish fingers. With cod stocks set to decline, it’s vital to open up taste buds to more sustainable options, Lang believes. He also thinks that more draconian measures, such as restrictions on energy-intensive farming practices, could force consumers to reconsider their diets, even before there are real curbs on the easy availability of meat, fish and dairy products.

Meanwhile, the initiatives taken by the likes of M&S, MBNA and B&Q are also perhaps a sign that market leaders are no longer simply waiting for their consumers to turn green and say, “This is what I want to buy.” Instead they are moving to a position where they can tell their customers, “You can trust us to put the right products on the shelves.” In other words, they are starting to remove flagrantly unsustainable choices from the menu.

And there’s a double advantage to be enjoyed by doing so. On the one hand, these businesses make themselves more resilient in the face of escalating carbon costs, resource shortages, and climate-related regulations. And on the other, they can use their environmental credentials as a powerful marketing ploy.

This is the crux of WWF’s recent report Let Them Eat Cake. In it, Unilever’s Santiago Gowland argues that the brands of the future will be those that make sustainability part and parcel of the way they do business – and make sure their clients know. Already, leading businesses such as IKEA and Adnams have joined Unilever and M&S in using sustainability to boost their brand. Meanwhile, more overtly ‘ethical’ operators continue to drive the market through campaigns such as The Body Shop’s “Nature’s Way to Beautiful” and the Co-operative Group’s “Good for Everyone”.

Innovative businesses are also responding to tightened purse strings with products that can help their customers save money – by cutting utility bills, for instance. With water prices bound to go up, the public is turning away from thirsty appliances – especially in regions that face increasing seasonal water shortages. And for them, perhaps, the ultimate ‘white good’ has already arrived: the waterless washing machine. Created by Sun Microsystems, it is selling with the tagline, “Being ecologically sound makes economic sense”.

Businesses that want to reap the benefits of pushing solutions – rather than awaiting consumer pull – don’t have to go it alone. Some are partnering NGOs such as WWF, while others are joining forces on promotions to boost the credibility of green products and services. Such initiatives must, of course, be founded on rock solid environmental commitments – because that, increasingly, is what the discerning customer requires.

Dax Lovegrove is Head of Business and Industry Relations at WWF-UK.

WWF-UK is a Forum for the Future partner.