The “Green” Investment Trap

I know many of you remember our discussion a couple of weeks ago about how many companies are investing and trying to go ”green.” The skeptic in me came out and said that I don’t believe that these companies really do believe in what they are promoting, but rather are going with the new trend. Everywhere we look now there is an “organic” stamp on everything from apples to make up and even gum…not sure how gum can clarify as organic… ?

Whether you want to believe it or not, being green, sustainable, and buying organic is a new TREND and it is what everyone is trying to be a part of so that they are not the outsider. How many companies out there are promoting themselves as being environmentally friendly and going green, yet they have not changed how much paper their employees print, or the lightbulbs in their offices, or even promoted a recycling program at their offices? I’m willing to bet that it is a big chunk of them!

O.K. enough of my own personal opinion, let’s go and list some facts down.

1. According to the LA Times, green investing has been quite volatile if we look at the WinderHill Clean Energy Index or the S&P Energy Index. Just two and half years ago the WinderHill Clean Energy Index closed the year 70% down, compared with the 34% that the Dow Jones was down. In 2008, S&P Energy Index lost 35.9%

2. The New York Times in October 2009, cited Green Technology investments a big Plummet. In California alone green technology investments fell 61/% in 2009!

3. Remote Revolution.com said it best in this direct quote: ” Still, I have noticed that there are several companies who produce “green” goods and who suggest that they are doing their part to reduce waste, recycle, give back, etc. simply because of their process. They are missing the other half of the equation—the half that is essential when calculating just how environmentally heroic these organizations are.  They are focusing on the greenness of the output and missing the importance of the input—the workers and the duties they perform. A company that looks past this issue is not green and is far from progressive.”

Even though I believe that many consumer lifestyles will change in California tremendously within the next decade, it is very hard for me to believe that the rest of the United States will comply and start carrying about not only our nation, but our world. I’m also very much still on the side that the majority of the companies are promoting being green and investing in green technology simply because it is a trend and because they do not want to lose out on any money that this boom will create for them, but do not whole heartedly believe in actually making a change or bettering the world.

by Juliannabb

GREENWASHING - HOW TO DETECT IT

On the one hand more brands, companies and industries focus on being increasingly sustainable and green by aligning their marketing efforts to reflect their sustainable efforts. One the other hand, taking a closer look at some of these companies will show you that they are actually greenwashing. What is greenwashing and how can you detect if a company greenwashes?

Greenwashing describes "the deceptive use of green PR or green marketing in order to promote a misleading perception that a company's policies or products (such as goods or services) are environmentally friendly." In other words, companies that greenwash tend to spend more money on making their advertising appear green than actually focusing on reducing the impact on the environment through their actions. 

Here is an example of potential greenwashing by Comcast. Comcast offers customers the option of receiving their bills online by enrolling in the Ecobill service, instead of receiving paper bills. Their slogan is "Save Paper. Save Trees". This alone sounds really good, but then Comcast  utilizes tremendous amounts of paper for their direct marketing campaigns. It appears that many companies today try to be more sustainable, however they do not transfer their efforts to all parts of their business operations (just yet). This contributes to an inconsistent green message, which could then lead to greenwashing accusations.

What can you as a consumer do to avoid greenwashed products and detect greenwashing? Here are some tips:

• Look for Green Certification from reputable and credible industry organizations
• Try to identify the original manufacturer. 
• Generic terms such as "environmentally-friendly" or "earth-smart"are not certified to provide you with any specific information to compare them to other products. 
• Be aware of any contradictory terms, such as "green" pesticides
• Take a look at the Greenwashing Index website online. This website allows people to rate marketing campaign based on their authenticity. 

Let us know if you encountered any greenwashing and share you thoughts!