Over the past few weeks, we have been conducting an informal poll on our website, on the challenges of green product promotion. A common theme we hear from our clients is that there is still resistance from their customers on paying premium prices for green products. We wanted to find out the reasons behind that resistance.

The conclusions were fascinating. Although responses to the options “it’s our first green product” and “our products are still behind on green credentials” were common, the leading response was “our company/ brand is not perceived as green which reflects on our product promotion”. This reinforces our core belief, that a company’s products cannot be seen as separate from its brand and CSR activities. End users will not believe the green claims of a company that is not backing those claims up with a total, transparent commitment to eco-effectiveness efforts, employees, environment and communities.

We’re following with great interest the green efforts of a number of car companies. Chevrolet have just announced that they will be attaching Ecologic labels to each of their cars, starting with certain brands in 2012. This label will contain information on environmental aspects related to vehicle manufacturing and assembly, fuel-saving features such as advanced engine technologies, aerodynamics, lighter weight components or low-rolling resistance tires, and how 85 percent by weight of the vehicle can be recycled at the end of its lifespan. We wonder how much this label will factor into end users’ decision-making process, or whether it’s simply a PR stunt? Chevrolet’s brand is not associated with environmental efforts, and they don’t seem to be integrating their green efforts into their overall brand.

Compare that approach to Tesla’s. Tesla is, of course, a higher-end brand. But they built their company from the ground up 100% focused on alternative fuel sources. The car has become a symbol for celebrities and wealthy individuals to strut their “green cred” while driving a top sports car. And business is booming for the company, despite car sales being down across the board. Not coincidentally, in 2011, Rolls Royce announced the prototype of its first electric car. However, they have not (yet) incorporated this into their overall brand.

We recommend that any green efforts, even pilot programs, should positively affect the overall company brand. Even if the message is “we’re trying something new!”, communication and transparency on a corporate level can have great impact, and support premium product sales.

It’s been ridiculed since it was developed as a concept. In 2006, George Monbiot wrote an article for the Guardian comparing it to the Church’s selling of pardons for sins in the Middle Ages. There are few objective standards of measurement, and no globally accepted certifications for it.

And yet, carbon offsetting remains a key focus of many industries’ environmental efforts. There has even been a push in recent years to get individuals to think about and take action to reduce their own personal “carbon footprint”. The big question that has been asked is, does this really do anything? Carbon emissions are only 2.5% of air pollutants, and only 1.7% is man-made. Even if every single person pays into a carbon offsetting program, will it have any effect on climate change?

However, one could argue, it’s not whether the carbon offsetting is doing anything directly. It’s about the awareness being raised that action needs to be taken. The marketing push that airlines are doing to promote their carbon offsetting schemes makes everyone who flies think about their effect on the world. Any awareness about pollution and its effect on climate change and the health of the planet results in an increased likelihood of positively modified behavior on the part of consumers. And if consumers are asking for, or expecting, these types of programs from the companies they patronize, those companies will be motivated to keep going with them.

The danger lies in getting stuck thinking that a carbon offsetting program is enough. It isn’t. It should be seen as a first step in the direction of product and process modification. For example, instead of simply relying on unregulated third party carbon offsetting for commercial airlines, the industry is actively investing in alternatives to reduce carbon emissions at source, i.e., by changing the makeup of avation fuel. In 2008, Virgin Atlantic flew the very first biofuel test flight, using 20% biofuel. And biofuels were approved for use, for up to 50% of the fuel mix of a commercial airplane’s fuel source, by the American Society for Testing and Materials in July 2011.

Carbon offsetting through external means might have been a way for industries to begin the process. But it should only be a beginning. We believe that in 20 years, carbon offsetting will be seen as having outlived its usefulness, because of process re-engineering. Hopefully, it will then be replaced by the positive footprint of Cradle to Cradle.

The methodology of Cradle to Cradle (C2C) has been around for several decades now, and although many people have heard of the circular economy concept, it is occasionally misunderstood. As Michael Braungart, co-founder of the methodology, himself emphasized at a talk at Erasmus University Rotterdam (RSM) last week – where ELCAMEDIA and other Cradle to Cradle partners were present – the focus isn’t about reducing waste to zero, or eliminating carbon emissions completely. A tree releases carbon emissions and waste; these are natural processes. The way to go is yes, to reduce the negative footprint, but importantly to increase the positive footprint of your products and processes as well. Cradle to Cradle basically serves as the change agent for this process. It results in companies such as Desso – a company that has fully integrated the C2C philosophy into its business model – developing carpets that actually clean the air. That carpet is then completely recyclable into new carpet. The waste becomes food.

Michael’s key question to the group was: how can we, as companies and societies, work together to create positive cycles, and do this faster? In addition to a business approach, it will require social, cultural, technical, scientific and engineering skills combined.

The fact that this discussion was happening in the Netherlands is no coincidence; the Dutch are leading the way, in both private and public sectors, on researching ways to implement eco-effective processes and products, irrespective of market competition. Michael gave the specific example of phosphate, which is a very rare and sought-after resource. The Netherlands is aiming to be the first country in the world to close the phosphate loop completely.

The key conclusion on how to increase the speed of Cradle to Cradle adoption was simple: communication. The more positive messages about real achievements and actual Cradle to Cradle case studies are communicated – and correspondingly the more “greenwashers” are rooted out and exposed – the more other communities and companies globally will recognize that this is not just a marketing hype but a logical economic alternative with great design, social and ergonomic benefits. The current economic situation should not, therefore, deflect from Cradle to Cradle, but instead serve as a powerful incentive to embrace it more. Desso, for example, has in the past 5 years gained market share everywhere and has seen profits increase every year – even right through the economic crisis. And with the cost of materials only expected to increase over time, it too is positioning itself for a bright future.

And there are many other case studies. The sooner people are able to understand the importance of quality innovation – and that it is mission critical – the more issues like premium pricing become irrelevant.

The conversation at Erasmus University was a pilot session, the first, we hope, of many discussions like this. It again strengthened our own mission and commitment as an environmental marketing communications agency with trained and certified Cradle to Cradle marketing consultants to help companies promote their Cradle to Cradle efforts and success stories, because every success story has a ripple effect that will spread.

The academic chair at the Rotterdam School of Management (RSM) Erasmus University, is entitled “Cradle to Cradle in relation to sustainable system innovations and transitions in theory and in practice.” Established in 2008 by Stichting Rotterdam Sustainability Initiative (RSI) it started operating at DRIFT in March 2009. Stichting RSI is an organization of government agencies (such as VROM) and leading private companies. Prof. Dr. Michael Braungart is the first appointee to the Cradle to Cradle chair.

ElcaMedia, the green marketing agency, announced today that it has won a prestigious platinum award from MarCom Awards USA in the category Environmental Marketing for its booklet outlining Cradle to Cradle marketing strategies & approaches and how to go green.

The booklet was created to help businesses understand how to take the first steps in developing a Cradle to Cradle marketing strategy. The introduction was written by Prof. Dr. Michael Braungart, co-founder of the Cradle to Cradle methodology, who personally worked with ElcaMedia to train their consultants on the Cradle to Cradle concept.

This award follows ElcaMedia also recently winning the Summit International Awards platinum award for the world’s first brochure to have received full Cradle to Cradle silver certification, the medium being the message.

Daan Elffers, Cradle to Cradle marketing consultant at ElcaMedia, comments: “Our inspiration for the booklet was simple. We wanted to help companies who are contemplating adopting green strategies for their business to think simply and proactively and to understand the immediate and long-term benefits of taking steps now.”

ElcaMedia is the first marketing company in the world to employ specially EPEA trained and MBDC certified Cradle to Cradle marketing consultants. The company’s core focus is developing and implementing sustainable corporate branding and concept development and advertising for environmentally responsible products and services worldwide.

To download a PDF of How to apply the potential of Cradle to Cradle for free, click here.