Articles, CSR, Economics

When thinking about sustainability, a few questions come to my mind time and again is – why are sustainable, green, environmentally products and services more expensive? Do they have to be? Do the economics of sustainability make sense for consumers? I don’t mean this from a “save the planet” perspective – environmental economics and the complicated valuation of human impact is a discussion for another day.

Think about some of these statistics presented by Jez Frampton of Interbrand at the opening plenary tonight:

• 95% of consumers say they would consider buying green products
• 25% actually do buy green products
• 45% purposefully don’t

Look at that last statistic. Why would a person choose NOT to buy a product that is better for the environment? Is there intent to destroy our planet? No – I would venture that consumers have been disappointed by green products – they have either performed worse and are more expensive. That is not a sustainable strategy – especially in our bleak economic times. Firms producing products and services must understand that consumers expectations are high. Recycled tissue shouldn’t irritate my nose. Environmentally friendly detergent must clean my clothes as well. It’s just not good enough to slap a “green” label on products and services and expect it to be a differentiator on its own.

To appeal with the masses, sustainable products and services MUST offer the same standards as other products. Quality, performance and price come first – sustainable, green, environmental friendliness are added benefits and eventually, should be a given. The economics of sustainability must align with a consumer’s personal economics and value. Some examples for sustainable experiences include:

1. Cleaning products made from all natural ingredients found in the home (baking soda and vinegar)
2. Small living spaces
3. Local, in season produce
4. Car sharing and car pooling

There are so many ways consumers can choose to be sustainable AND economical. Today, I rented a car to drive down from San Francisco to Monterey. I’d reserved a compact car for cost and fuel efficiency. The person at the counter told me I could get a hybrid car that was slightly larger, more comfortable and give me better the mileage than the compact – all for $4 more. It was a no brainer – the experience value of the hybrid far outweighed that of the compact car.

Sustainability simply must be sustainable economically to gain traction. Green energy must become cheaper, better and more available than fossil fuel energy. Green manufacturing must produce a quality product that rivals non-green product. Green service must be just as good as non-green service. There will always be a segment who can afford to choose sustainability – but to gain momentum with the general populous, the design of sustainable products and service must take into consideration consumer needs and expectations to service demand in a responsible way.