CSR - Greenwashing & Carbon: Consumers Just “Don’t Believe It”!

There are lots of businesses out there making some pretty impressive claims about the green credentials of their products and services. But how effective are these claims as part of the promotional mix? Is it just a case of greenwashing that most customers see through? A new report from the CBI provides some insights into what consumers think - and it raises some important issues for business. Its a cracking survey to provide some data nuggetts for students preparing for AQA BUSS4 too…

The Confederation of British Industry (CBI) says consumers do not believe businesses’ claims about energy efficient products. In a report out today (”Buying into it - making the consumer case for low carbon”), the CBI says businesses must do more to give consumers the right information to make informed choices about buying low-carbon products. The report is based on research carried out by IPSOS Mori, who surveyed 2,000 people in the UK.

The survey revealed that 83% of the public think businesses have a responsibility to tell their customers about energy efficiency, but only 16% trust manufacturers and even fewer trust retailers (9%) to be truthful about it.

The report has found three-quarters of the public do not think about energy efficiency when making the biggest purchase of their lives, a new home, but more than half (53%) do think about energy efficiency when buying a fridge. This reflects the success of the A-G white goods labeling system, which provides clear standardised information on the energy efficiency of white goods.

CBI director-general, John Cridland, said: “Consumers are often baffled when faced with a variety of low-carbon products on sale, each making different green claims.

“All too often we find that consumers are something of a Cinderella of the low-carbon economy. Unless we can get the public truly on board, then all the investment in new technology and all our low-carbon innovation will be for nothing.

“Businesses need to provide clear, consistent labelling that becomes a trusted universal standard with the public. The success of A-G labeling for white goods like fridges and washing machines shows that this kind of approach works.”

What role should government play here (AQA research bullet 6!) The CBI says a joint business-government taskforce should focus on building a mass market for low-carbon goods. They suggest measures such as running awareness campaigns, consistent labelling, staff training and using a common language to explain environmental features.