Sustainable marketing shows consumers that an organization takes environmental and social responsibility seriously. Yet, marketers must use careful language to avoid greenwashing.
From greenwashing accusations to pricing hurdles, common sustainable marketing challenges force organizations to prove their environmental claims while maintaining a competitive advantage.
As many consumers expect brands to embrace environmental protection and social justice, many organizations have adopted sustainable marketing strategies. For example, marketers might promote their brands' renewable energy usage, recycling programs or partnerships with local organizations. Although this strategy can help brands connect with environmentally and socially conscious consumers -- especially millennials and Generation Z -- it introduces challenges into marketing plans.
Marketers should understand the top sustainable marketing challenges, which are greenwashing and bluewashing, measurement, pricing and quality, and greenhushing.
1. Greenwashing and bluewashing
Sustainable marketing can lead to reputational damage if marketers make false claims about their organizations' effects on the environment or society. False environmental claims are known as greenwashing. False claims about organizations' effects on social issues are known as bluewashing -- a term that plays on greenwashing and refers to the blue colors of the United Nations' flag.
Modern consumers have grown wary of greenwashing and bluewashing and are quick to publicly call them out.
Modern consumers have grown wary of greenwashing and bluewashing and are quick to publicly call them out. These accusations can result in legal penalties, like multimillion-dollar fines, and bad press, including viral social media posts that portray organizations in a negative light.
Greenwashing and bluewashing can be intentional. For example, Volkswagen once created and installed software to cheat on U.S. federal emissions testing. Yet, they can also be unintentional.
For example, a fictional beverage company promotes its products as plastic-free after switching to plant-based bioplastic bottles. Despite the company's honest attempt to make its products more sustainable, the marketing team forgets to account for the bottle cap, which is still made from conventional plastic. Although less malicious than the Volkswagen example, this, too, is greenwashing.
To help organizations make sustainable marketing claims responsibly, marketers can adhere to the following principles:
Reliability. Support claims with documented, scientifically sound evidence.
Relevance. Promote major sustainability improvements rather than highlighting minor ones. For instance, an oil company shouldn't create a green marketing campaign around its use of energy-efficient appliances in its offices.
Clarity. Avoid vague terms and use precise language that consumers can understand. For example, instead of saying eco-friendly, say made with 80% recycled materials.
Transparency. Openly share production methods, supply chain information and limitations. For instance, a personal care brand should let customers know if recycling options for their shampoo bottles only exist in specific regions.
Accessibility. Make key sustainability information, such as details about a product's carbon footprint or sourcing methods, readily available at the time of purchase.
2. Measurement
Consumers want organizations to back up sustainability claims with data, but they often struggle to measure this data due to its complexity. Organizations affect the environment and society in complex ways, including direct and indirect greenhouse gas (GHG) emissions, energy and water usage, and waste -- all of which brands should track if they want to substantiate their claims.
GHG emissions. Organizations that burn fossil fuels to power offices and manufacture products release harmful GHGs, such as carbon dioxide (CO2) and methane, into the air. Brands that want to promote low or reduced GHG emissions in their products and operations must measure their scope 1, scope 2 and -- depending on their size and geographic location -- scope 3 emissions.
Scope 1 includes direct emissions, such as those from company vehicles and manufacturing processes. Scope 2 includes indirect emissions from purchased electricity, heat and cooling. Scope 3 emissions include all other emissions in the organization's value chain -- from upstream activities, such as sourcing raw materials, to downstream activities like waste disposal. This scope requires advanced calculations, so many regulatory bodies don't require organizations to report them or limit reporting to large enterprises.
Brands typically measure CO2 emission reductions in kilotons. Third-party auditors and carbon accounting tools can help them track emissions accurately.
Energy and water usage. Organizations consume energy in various forms, such as natural gas and electricity, to power their operations. They might also consume water for cooling systems, product manufacturing and restroom facilities.
To measure usage of these resources, organizations can implement energy management software, third-party audits and smart meters -- devices that track energy or water usage in real time. Organizations typically measure energy consumption in kilowatts per hour and water usage in cubic meters or liters.
Waste. Companies can generate a lot of waste, including office materials and hazardous byproducts from manufacturing. To support claims of waste reduction, organizations can work with third-party auditors and implement waste management monitors and tracking tools. Regulators and auditors typically measure waste by weight, such as tons or kilograms.
3. Pricing and quality
Due to the materials, processes and certifications they require, sustainable products usually cost more to produce than other products. As a result, many brands pass the extra costs on to the consumer, making pricing less competitive.
To avoid exceedingly expensive products and services, organizations can consider the following best practices:
Limit overhead costs, such as business trips and large office spaces.
Offer sustainable products at different pricing tiers, not just at the luxury pricing level.
Consider sustainability-linked loans that offer favorable terms for organizations that meet certain criteria, such as renewable energy investment.
However, even if organizations implement these practices, their products might still cost more than their competitors' offerings. In this case, marketers can focus campaigns on differentiators, such as superior product quality or lasting potential.
Additionally, they can use social media and influencer marketing strategies to educate consumers on their organization's environmental or social differentiators. These strategies can generate brand loyalty, where consumers are willing to pay premium prices to a brand that shares their values.
4. Greenhushing
Greenhushing is when marketing teams stay quiet about sustainability due to a fear of being called out for greenwashing. This practice has become more prevalent as greenwashing accusations and regulatory scrutiny intensify. Many CEOs and chief marketing officers fear backlash if they don't hit their sustainability goals or accidentally use the wrong terminology in campaigns.
Greenhushing can reduce some risk, but it puts organizations at a competitive disadvantage to those that promote their sustainability initiatives more effectively. Consumers prefer brands that align with their values, so concealing efforts to combat climate change or social injustice can be detrimental.
To overcome greenhushing, marketing teams can collaborate with legal and sustainability professionals in their organizations to create sustainable marketing best practices and guidelines. These guidelines might include starting with small goals, collecting empirical data about their sustainability initiatives, avoiding vague terminology and candidly admitting mistakes.
Tim Murphy is site editor for Informa TechTarget's SearchCustomerExperience and SearchContentManagement sites.
