Pop into any supermarket today and you can't fail to be struck by the number of labels making claims about the social and environmental attributes of a range of different products. Organic, Fairtrade and FSC Certified — "eco-promises" are made about a range of issues in advertising, in store promotions and on products themselves.
For consumers this can be confusing. Which issues are most important? And which labels can they trust?
For companies the issue of communicating the social and environmental attributes of their products can be just as complicated. What issues should they be highlighting? How can they best communicate to consumers? And how can they ensure that "eco-promises" align with broader business objectives?
Forum for the Future, the UK-based sustainable development charity, has teamed up with Business for Social Responsibility (BSR), the global business membership organization that specializes in corporate responsibility, to answer these questions.
Their new report,
Eco-Promising: How to Communicate Credibly About Your Products, provides an invaluable how-to guide and examples for companies wanting to make environmental claims about their products and services. The report also reviews the history of eco-promising and highlights the challenges facing companies in communicating their efforts – including the rising possibility of a consumer backlash due to confusion.
The benefits of effectively communicating such promises include:
Improved risk and operational management
Enhanced reputation and competitiveness
Increased sales
Opportunities to shape the regulatory framework
According to Tom Berry, Head of Retail at Forum for the Future, "It's not just about slapping a label on a packet. Understanding the true environmental credentials of your products and communicating these to consumers can be a source of innovation and competitive advantage."
"Doing this is challenging," explains Ryan Schuchard, Associate in BSR's Environmental Research & Development team and lead author of the report, "because environmental standards are emergent and companies often lack meaningful supply chain data. Leaders are investing in better information systems internally and among their peers and suppliers."
Eco-Promising is sponsored by PepsiCo and SC Johnson and is available to download from www.bsr.org and www.forumforthefuture.org.uk.