The Clorox Company leverages sustainability for Growth
By-Ashley Braun
More green biz reporting from the Sustainable Brands '08 Conference.
Even the Clorox Company, with $4.8 billion in sales last year, has set out to get a piece of the proverbial green apple pie that the conscious American consumer is becoming. Recognizing that sustainable products are no longer a wee e-niche market, Bill Morrissey, VP of Environmental Sustainability at Clorox, described the company's extensive research on what motivates a consumer's interest in the environment.
From these efforts, four key areas emerged:
Personal protection -- What's going in me/on me/around me (and my family)?
Cost -- I save $$ by reusing/reducing consumption.
Status -- I let others know that I care about the environment.
Altruism -- I do it because it's the right thing to do.
Traditional environmentalists may squirm to hear it but good ol' altruism was the minority factor in driving environmental interest today. On the other hand, personal protection was the heavyweight that held the top rank. This aligned with another study's report that consumers identified more with "My Environment," which they perceived to be inside their control, as opposed to "The Environment," which they considered outside of their control.
With "health and wellness" and "environmental sustainability" representing the next two mega-trends on the rise, businesses can leverage themselves to these trends in two-and-a-half ways: By making existing brands more sustainable and by investing in new sustainable brands (internally or through acquisition). Morrissey went on about how Clorox is striving to do that with three of its brands:
Brita Water Filters, an existing Clorox brand, that concerns what goes "In Me."Burt's Bees Natural Personal Care Products, a newly acquired brand that goes "On Me."Green Works Natural Cleaning Products, an internally produced new brand that goes "Around Me."
First, Clorox jumped on the anti-plastic water bottle bandwagon by promoting Brita filters as sustainable alternatives to those bedeviled bottles (Clorox said, "Drink Responsibly"). With an added eco-twist to their marketing approach, one Brita TV ad shows someone running on a treadmill, trusty one-time-use plastic water bottle in view, while the words "30 minutes on a treadmill" flash across the screen. Next the phrase "Forever in a landfill" drove the message home as it appeared next to the plastic bottle.
Well, maybe not forever, but a one-thousand-year-decomposition time probably feels like forever to the average viewer. And with 60 million plastic bottles thrown away each day in the U.S., the Brita brand makes a great case for drinking "healthier, better-tasting water" with one Brita filter instead of the equivalent 300 standard bottles of water.
Still, one conference attendee asked why a take-back program for used Brita filters hasn't been established in the U.S. like it has in Germany. Morrissey responded vaguely that Clorox is "working on that as well," which goes to show that environmental sustainability is, of course, an ever-continuing process for any business or individual, and that you'll be hard-pressed to find a "perfectly green" product. Still, since Clorox/Brita launched this sustainable marketing effort, the brand has seen double-digit growth from previously flat to declining sales.
However, Burt's Bees comes pretty darn close to green product heaven, and Clorox knows it. Morrissey described Burt's Bees as "an environmental exemplar within our walls, and that's been very valuable." When Clorox acquired Burt's Bees late last year, Morrissey admitted their first goal was "not to screw up this business." Everyone in the audience got a chuckle out of that, to which Morrissey replied, "No, we're serious."
Leveraging sustainability for Burt's Bees is fairly simple considering their mission is "to make people's lives better every day NATURALLY." And they live by it. Embracing "The Greater Good Business Model," Burt's Bees takes the highest level of social responsibility by incorporating environmental and humanitarian concerns into their natural ingredients and product processes. In terms of marketing these natural lip balms and lotions, Clorox is trying to let its products speak for themselves because "sustainable practices yield sustainable results" -- which in this case, can mean growth and lots of it.
The final technique for leveraging Clorox in a sustainable market has been through its first new brand in 20 years -- Green Works natural cleaners. Concerning the "Around Me" environment, these products are described as "99% natural," biodegradable, not harmful to animal and aquatic life, non-allergenic, plant-based, and (deep breath) having transparent ingredients and recyclable packaging. According to a blind consumer test of Green Works cleaners against conventional cleaning products (some owned by Clorox as well), Green Works is reported to have performed as well as or better than the leading conventional cleaners. But I'm left to wonder, What exactly is in that 1% unnatural part of the cleaner, and is it harmful?
"This is a big deal for Clorox. We're the first major ... player to enter natural cleaning. What we hope to do is mainstream these products."
--Bill Morrissey, the Clorox Company In their attempt to mainstream these products, they twice had to delay launch to get it just right. Characterized as "powerful cleaning done naturally," Clorox is so convinced about the new Green Works brand that they have not only the Clorox logo on the label, but also U.S. EPA Design for the Environment accreditation for "environmentally preferable chemistry," and a vetting and endorsement by the Sierra Club, who also has their logo pasted on the label (although not without backlash from both its members and many other nonprofits for doing so).
So a bleach company is now in on the natural cleaners market; $6 million in the first three months in, in case you were wondering. But perhaps an even bigger surprise came during the Q & A session when Morrissey who -- unprompted -- started to protest that "bleach is a very sustainable product." I know my ears about fell off when he said that, and as he went on to explain further a simplified version of chlorine bleach's stain-fighting chemistry.
I applaud Clorox's efforts to clean a little greener, but if that means exposure to a chemical that "can cause irritation of the eyes, skin, respiratory and gastrointestinal tract" as well as "severe corrosive damage" to those areas when met with high doses, as the Agency for Toxic Substances and Disease Registry reported, I have to scratch my head in doubt. The words "can be fatal" on the side of a bleach jug just don't seem to jive with my (and I would think most people's) idea of a product being "more sustainable than everyone thinks." Perhaps he should have stuck to talking about Green Works instead of trying to make bleach sound green.
At least Morrissey did acknowledge the inherent unsustainability of Clorox's GLAD plastic baggie line. Well, we'll give 'em the benefit of a doubt. Maybe Clorox reuses them.
Source-Sustainable Business Conference
http://gristmill.grist.org/story/2008/6/13/1438/13955
Is It Really Green?
From-Grist-The Environmental News Company
Laundry detergent made from flowers! Cars that don't pollute! Potato chips fried in organic oils! These days, everything seems to be marketed with an eco-spin -- even products that are notoriously bad for people and the planet. So are companies truly seeing the green light, or are they just greenwashing?
If green is the new black, then greenwashing -- the practice of putting an eco-friendly spin on a not-so-eco-friendly product or company -- is the new gray area.
Do you have to devote all your time to investigating every company's corporate record to figure out who's really making change and who's just talking a good game? Fortunately, no. Here are a few red flags to watch for, and a few tips for shopping smarter -- put them together, and you can feel more confident about choosing products that really make a difference.
Buyer Beware: Greenwashing's Red Flags
The official U.S. organic label
Vague claims. Words like "natural," "green," "eco," "nontoxic," and even "biodegradable" don't mean much on their own. They're easy to slap on a product, and they're not currently regulated. Look for more concrete terms like "organic" and "recycled," which are overseen more closely by the federal government and can be verified with a symbol on the package. (And note that "recyclable" just means you might be able to recycle the product in your community, while "recycled" actually means the company has already incorporated some amount of recycled materials in the product.)
Pretty packagingMore and more products, especially cosmetics and household cleaners, are adopting a "natural" look, eschewing the bright colors of old and replacing them with a cleaner, softer design. Is your laundry detergent really made from flowers, or has it simply added 1 percent flower oil to its chemicalicious mix? Read the ingredients to find out.
Nontransparency
If a company doesn't have the space on its product to explain its green claims, it should make the information available on its website or through its customer service department. Look for a phone number or web address on the package -- if you can't find it, or if it's hard to track down more details once you contact the company, there's something fishy going on.
Big promises. If it sounds too good to be true, it probably is. Can you really make up for a year's worth of driving by paying a carbon-offset surcharge when you buy a car? Can a biodegradable diaper really biodegrade if it's smooshed into a deep, dark landfill? (Doubtful, and no.) Companies want to ease your mind with such promises -- but try not to make purchases based on emotions. Instead, learn as much as you can about the realities behind the claims.
Buyer Be Smart: How to Choose Eco-Wisely
Look for certification. There are a few trustworthy certifications out there that, while not perfect,
are reliable. Use them as your guide. Look for the federal government's Energy Star designation (over to the left) on appliances and electronics; the USDA organic seal on food and cosmetics; Green Seal (and, in Canada, EcoLogo) on household cleaning products; and the Forest Stewardship Council logo on wood and paper products. (Beware of the Sustainable Forestry Initiative label, which was concocted by the timber lobby.)Think about how you buy, not just what you buy
Green products can be great, but the choices you make when you buy any product can be just as important when it comes to lessening your impact. Some tips: buy in bulk to reduce individual packaging; when you buy a product or package that's recyclable, make sure it's actually recyclable in your area (and make sure to actually recycle it!); buy durables instead of disposables (things like rechargeable batteries and reusable mugs); and always think carefully about whether you really need the item in the first place.
Trust your gut
If a company is making green claims that seem counterintuitive, approach with caution. Car companies and oil companies are great examples of industries that are eager to convince the world they're "green," through ads with happy children or logos with puffy clouds -- but meanwhile, they keep manufacturing low-mileage vehicles and plunging ahead with damaging resource extraction. These are polluting industries, and it will take more than token gestures to clean up their act. While their green leanings should be encouraged, consumers shouldn't lose sight of the big picture.
Do your research
Sometimes you've got to make a decision while standing in the grocery aisle, but if you have time in advance or if you're considering a bigger purchase -- like a car, washing machine, or TV -- it pays to do some digging before going to the store. Sites like Consumer Reports' GreenerChoices.org, Greenercars.org, and the Electronic Product Environmental Assessment Tool (EPEAT) can help you make sense of manufacturers' claims on big-ticket items; the Environmental Working Group and Responsible Purchasing Network have helpful information on smaller items like cosmetics, cleaners, and food.
Sources:
This article originally mentioned a Today show appearance scheduled to happen on Tuesday, Jan. 29,
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