The tides are changing at the store everyone knows for its always low prices. Wal-Mart’s new “greener” mantra is reducing waste as well as prices.

Already on the shelves at more than 200 Wal-Mart stores are EcoLogo-certified BioSource Solutions cleaning products and Oxi Brite’s Greenline cleaning solutions, which have been developed in partnership with Wal-Mart.

Novozymes, world leader in bio-innovations, is also working with Wal-Mart to provide their suppliers with ways to improve their products. At a Thursday, Aug. 7, meeting in Bentonville, Arkansas, Steve Schotta’s Doing Business in Bentonville and Novozymes representatives helped Wal-Mart to go the “sustainable” mile. Wal-Mart is reportedly asking buyers to submit innovative “green” products for selection that fall into its new sustainability criteria. According to The Morning News out of Arkansas, the products up for selection must be able to tell a story that incorporates an environmental impact that consumers care about and understand. Click here for more on this story.

Lee Scott, President and CEO of Wal-Mart Stores, made a speech in January 2008 at the Wal-Mart U.S. Year Beginning Meeting that sets the tone for this recent action. In his speech, Scott says that Wal-Mart will require its global procurement, domestic importers and manufacturer’s of Sam’s Club or Wal-Mart private brands suppliers to demonstrate that their factories meet specific environmental standards, as well as social and quality standards.

Suppliers take note; “…we will only work with suppliers who maintain our standards throughout our relationship. So we will make certification and compliance part of our supplier agreements and ask suppliers to report to us regularly,” said Lee Scott.

Wal-Mart will be applying pressure on suppliers over the next few years to meet their environmental standards and will favor those that share their commitment to quality and dedication to sustainability.

This is certainly a company to keep your eye on. To read Lee Scott’s Year Beginning speech, click here.

This past July, outdoor apparel and gear company Timberland held a Stakeholder Conference Call on eco-labeling. The speakers included: Jeff Swartz, President and CEO of the Timberland Company (www.timberland.com), Joel Makower, Executive Editor of GreenBiz.com (www.greenbiz.com), and Mindy Lubber, Executive Director of Ceres (www.ceres.org)

We caught up with Joel Makower this week to talk about some of the eco-labeling issues that came up during this recent discussion.

Kate - There are hundreds of eco-labels in the marketplace: 308 at last count. One of the comments that kept coming up during Timberland’s stakeholder call is a need for standardization among the many environmental labels. How important would a standard be, given the rise in companies designing their own eco-labels?

Joel Makower - It would be very important, but I don’t honestly think it can be done. Each of the 300 or so eco-labels has its own approach, agendas, methodology, and levels of independence. Most can’t be compared apples to apples, or even fruit to fruit.

However, there could and probably should be some overriding principles for what makes a credible label, not the least of which is that standards be specific, transparent, and verifiable. That alone would go a long way toward warding off activists’ and consumers’ concerns, along with the concomitant charges of greenwashing.

Kate – Consumers are becoming more and more confused and suspicious of eco-labels. Is there something marketers can do to better promote “green” products?

Joel Makower - I think what makes consumers confused and suspicious are the marketing claims that go with many products. They tell us that “it’s easy being green” and that we can “save the earth” by making smart purchase choices. I think most intelligent people recognize that both of those claims are overblown, if not outright lies. And yet such hyperbole is all too common among green marketers.

I think marketers would do better to put their claims into context, leveling with consumers that the company recognizes that their environmentally better product is one small step consumers can take. And that the product itself is far from perfect, from an environmental perspective, but that its manufacturer is working to continually reduce its environmental impacts.

I think consumers can accept imperfection, and will probably embrace it, recognizing that just like them, companies are struggling with how to make changes. Which, in fact, is exactly what’s going on.

Kate – According to The Morning News out of Arkansas (article found here), Wal-Mart is looking for its buyers to submit products for selection that have an environmental impact that consumers care about and understand. They want their products to tell a story. What do you think about this approach?

Joel Makower - I think Wal-Mart is on the money. So much of marketing is storytelling, and it’s no different here. In fact, when it comes to sustainability, storytelling takes on an ever greater importance. That’s because sustainability involves, on the one hand, extremely complex, scientific, geeky stuff, about which even the experts don’t agree. But on the other hand, it’s about our bodies, families, and future. So, it’s head and heart. And you can’t emphasize either too much or you’ll lose much of your audience. Storytelling is the best way we know how to integrate head and heart, along the way making companies more transparent and, yes, more human.
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Check back for more conversations with Joel as he gets ready to launch his newest book “Strategies for the Green Economy” later this fall.

The recent release of the Competition Bureau’s report on environmental guidelines has generated good discussion around the need to clamp down on “greenwashing” but ends up providing fewer deterrents for greenwashers then acting as a reiteration of old guidelines.

In the Competition Bureau report Environmental claims: A guide for industry and advertisers, best practices for users of ISO 14021 (Type II environmental labeling or self-declared environmental claims) are provided for use in the Canadian marketplace.

Compliance to certain provisions of the Competition Act, the Consumer Packaging and Labelling Act and the Textile Labelling Act is encouraged in this report, but only enforcement can provide real teeth. The Competition Bureau’s report provides useful guidelines for industry and advertising professionals but tends to be more bureaucratic and less useful to this audience.

While Canada is ahead of the United States, which has the Federal Trade Commission (FTC) guidelines, Europe and Australia both appear to have stricter enforcement in place. The Australian Competition & Consumer Commission (ACCC) launched legal proceedings this past winter against GM Holden Ltd for allegedly making false representations in numerous “Saab is Green” vehicle advertisements, claiming them to be carbon neutral. Norway has banned the use of any such claims in reference to vehicles.

TerraChoice Environmental Marketing submitted comments to the Competition Bureau and has testified in front of the FTC, making reference to the real dangers of greenwashing (the Six Sins of GreenwashingTM). Coincidence or not, both Bureaus soon afterwards issued their environmental claims guidelines.

While the Competition Bureau guidelines are useful, what we really need is enforcement of the laws already in place. For marketers and industry professionals, this will mean stricter adherence to environmental labeling standards. For consumers, it will mean a move toward a truthfully sustainable marketplace.

TerraChoice Environmental Marketing recently released its EcoMarkets 2008 Summary Report to the public and the results have to be shared. Here is a sneak-peek at some of the findings:

· Over $78 billion of purchasing power is represented in this study and the majority of survey respondents control at least half of their organization’s total procurement budget.

· Sixty-eight percent (68%) of North American organizations increased their green purchasing in the past 12 months and 91% of purchasers believe they will become more active green purchasers over the next two years.

· An overwhelming majority of survey respondents (72%) believe eco-labels contribute to better purchasing decisions.

· Purchasers identified the eco-labels they rely on most frequently to help make purchasing decisions. Results show that Energy Star (60%) and EcoLogo (27%) are the most frequently-used eco-labels.

The purpose of the EcoMarkets 2008 Summary Report is to inform our clients, partners and public audiences about the attitudes and practices of North American buyers towards environmentally preferable purchasing. The report is a public summary of research conducted in 2007 and 2008 in partnership with the North American Commission for Environmental Cooperation and with the Responsible Purchasing Network – a project of the Center for a New American Dream.

To get a free copy of the EcoMarkets 2008 Summary Report, email Melissa Peneycad at ecomarkets@terrachoice.com.

When we, at TerraChoice, released the report called The Six Sins of Greenwashingä last year, we never could have imagined the response it would receive. We soon became aware that the world was watching. And possibly even more significant was a distinct rumbling arising from the coverage that was streaming in. It appears our Six Sins study hit a nerve and was sparking dialogue about a growing skepticism around “green” products.

For those of you not familiar with our Six Sins report, we recently conducted an in-store survey of product-specific environmental claims found on 1,018 products from six North American retailers. A staggering number of more than 99 per cent of products surveyed were found to be sporting deceptive “green” marketing claims. We found patterns that helped us classify these false or misleading marketing claims into six categories (click here to view the report).

Since its release, GreenBiz.com has reported that the Six Sins study was one of the major environmental stories of 2007. Online coverage was astounding and radio and television was quick to follow. The global reach has been observed in articles published in India, Australia and across North America.People around the world are buzzing about products on the “green” market. This heightened interest in the environment has revealed consumer skepticism and savvy around environmental marketing claims. If left unchecked, this kind of distrust of environmental marketing claims has the potential to hurt the planet and the market share for truly environmentally preferable products. TerraChoice’s President and CEO Scott McDougall has termed this trend the “Seventh Lesson of the Six Sins.” Read more about the warnings issued from this seventh lesson in our latest issue of EcoMarketer and stay tuned for advice on honest and effective eco-marketing.

As temperatures gradually rise around the globe, some countries are leading the way in finding sustainable business solutions to help tackle the climate crisis.

Leaders from the government, corporate and not-for-profit sectors met in Canberra, Australia, this past May for the 9^th annual National Business Leaders Forum on Sustainable Development to talk about recent accomplishments and developments in green biz. The Honourable Kevin Rudd MP, Prime Minister of Australia, gave the keynote address at the Forum, where the aim was to accelerate uptake of sustainable practices and facilitate partnerships in this endeavour. (Notable speakers from previous forums include former Vice President and Nobel Peace Prize recipient Al Gore and renowned primatologist Jane Goodall.)  A keynote speaker at this year’s forum, President and Chief Executive Officer of TerraChoice Environmental Marketing Scott McDougall spoke about the threats “greenwashing” poses to business and environmental policy, but also about the opportunities this presents to marketers. 

“If greenwashing goes unmitigated, this will be a great loss for business and the planet,” says Scott. “There are, however, significant informative and honest environmental claims that marketers can use to continue building great relationships with consumers.”

To read more about the National Business Leaders Form, visit www.nblf.com.au, and click here for tips on how to avoid “greenwashing.”

Part of being an effective environmental marketing agency is conducting ongoing, meaningful, primary research. Once a year TerraChoice surveys a wide sample of procurement professionals for an EcoMarkets report to determine the state of green purchasing and analyze year-over-year trends. The full EcoMarkets 2008 report is due out in June, but a few of the conclusions are available now. Here’s some of what TerraChoice found out in 2008:

• 31% of respondents indicated that at least 40% of spending is ‘green’ influenced
• 25% of organizations surveyed have formal green purchasing policies - up from 22% in 2007
• 72% of purchasers surveyed feel that ecolabels help purchasing decisions
• The single biggest factor that respondents said would facilitate more green purchasing is more training and education on how to buy eco-friendly products and services

This year’s EcoMarkets study surveyed 336 procurement professionals, with roughly half located in the US and half located in Canada. Stay tuned for the full report, which will appear on the Responsible Purchasing site. In the meantime, TerraChoice and the Responsible Purchasing Network hosted a webcast on May 28th with more of the study results discussed. A webcast video is available.

If you’re a procurement professional interested in participating in future studies, please contact the TerraChoice EcoLogo Procurement Think Tank at thinktank@ecologo.org.

The Greenwash Brigade hit the nail on the head recently with their commentary on a public radio interview with Seventh Generation’s Jeffrey Hollender. Namely: it’s extremely hard for consumers to uncover greenwashing on their own. If you’re knowledgeable on environmental issues, you can make reasonable guesses about when a marketing claim may be suspect. But trying to get specific environmental information about a product is exceedingly difficult.

First, there are so many things that go into whether a product should be considered environmentally friendly. How was it manufactured? How is it packaged? How was it transported? Is it recyclable?

Second, it’s difficult to find a credible source with information on a product’s environmental impact. Who is documenting this stuff? Are they trustworthy?

Interestingly, the topic fits well into a discussion TerraChoice’s Scot Case had with the Federal Trade Commission recently. The FTC is revamping its Environmental Marketing Claims Guidelines and is currently hearing testimony from experts as they deliberate. Scot was on a panel regarding the need for FTC guidance and made one critical recommendation. Since consumers are demanding proof of green claims, companies should be required to provide it – either with data and evidence on their websites or through third-party certification.

In others words, consumers shouldn’t be stuck with the burden of research. Companies should help make the information consumers need easily available.

Note: For your listening pleasure, there’s a recorded webcast from the FTC event mentioned above.

Just in time for Earth Day, GreenYour Media LLC has announced the beta launch of its new GreenYour.com site. Better than Googling, GreenYour.com lets consumers search for green product and lifestyle alternatives by category or keyword. Type in Green Your “Hair”, for example, and up pops facts on shampoo and hair dye as well as tips and product recommendations.

The new green search site is noteworthy for its comprehensive criteria in determining whether or not a product is eco-friendly. Green attributes are considered as well as green yield, which is defined as the ability of a product to help consumers reduce waste and environmental impact. Products are also considered green when they have been certified and labeled by a credible environmental organization. In other words, the folks behind GreenYour.com are looking to help clear up consumer confusion around ecolabeling and combat greenwashing by clearly identifying products that meet reliable environmental standards. In its list of credible standards, GreenYour.com includes EcoLogo, Green Seal, the EPA’s Energy Star program, USDA Organic, Greenguard and the Forest Stewardship Council.

GreenYour.com apparently has great plans for the future. Since it is built on an open-source content development platform, the creators of the site are clearly intending to make it accessible to outside sources for content contribution. According to the press release, “Next, we will introduce a range of interactive tools and partnerships.”

Oh, and GreenYour.com has a blog too. Welcome to the blogosphere.

First there was green marketing, and then there was greenwashing. Now the pendulum is swinging back again. According to a new study by Burst Media (via Green Daily), consumers are growing wise to green advertising claims. More than 20% of survey respondents said they seldom or never believe environmental claims in product ads, and two-thirds said they only “sometimes” believe.

So is consumer skepticism good or bad? Probably both.

Given the level of greenwashing in the market, it’s a good thing that consumers aren’t falling for every green marketing trick. However, the entire purpose of environmental labeling is to make environmentally-friendly choices available and apparent to the public. If consumers disregard all green advertising, it means many of them are foregoing potentially eco-friendly product alternatives. It’s important to bring clarity and transparency to ecolabelling… before consumers turn away altogether.

Fortunately, there are resources for consumers seeking a little truth in marketing. In addition to looking for accredited environmental labels like EcoLogo, consumers can visit (and contribute to) sites like the new Greenwashing Index. The Greenwashing Index aims to collect and publish examples of greenwashing in product ads. The site’s criteria for greenwashing covers a lot of the same ground as the TerraChoice “Six Sins of Greenwashing” report. For example, the site talks about ads that make green claims that are “vague or seemingly unprovable.” This matches up well with the Sin of Vagueness and the Sin of No Proof.

The more it’s possible to separate the green from the greenwash, the more consumers will buy green products when they hit the stores. Healthy skepticism is good. Giving up on green is not.