Firms face up to green challenge

Updated: 2011-12-06 07:57

By Cecily Liuand Zhang Haizhou (China Daily)

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Companies do more to address environmental concerns

LONDON - Britain's royal wedding boosted sales for toymaker Arklu, which created the Princess Catherine Wedding Doll in Kate Middleton's image, but the doll's excessive packaging turned off some consumers.

In response to the criticism, the company said the packaging of its next doll will be more modest to please environmentally savvy consumers.

"Our market research shows that consumers are increasingly unhappy with excessive toy packaging, and we are reducing the dimension of our next product's packaging by 33 percent," Managing Director Ian Harkin told China Daily last week.

The plastic used to package the Princess Catherine doll will be replaced with cardboard, because plastic is more carbon intensive to produce than cardboard. The new doll will be released in April.

Harkin acknowledges that the change could make the dolls appear less attractive, but he hopes Arklu's environmentally responsible practices will pay off.

The change in packaging may be a small one, but it highlights companies' efforts in recent years to be more environmentally friendly.

Arklu is just one of many businesses from every sector around the world increasingly vying for consumers' attention with "green" products, interactive campaigns and impressive carbon-reduction commitments.

Food and beverage companies such as Cadbury and Bacardi, who source cocoa beans and sugar cane from developing countries, have included "impact assessments" of their products on the economies and social welfare of sourcing countries in their annual reports for several years.

Even the rivalry between Coke and Pepsi has taken a green turn, with each trying to trump the other's lightweight plastic bottles made from plant-based materials.

"The ability for non-profit environmental groups to initiate changes has increased dramatically as more consumers hear about climate change through the media and look to those groups for information," said Paul McWilliams, partnership manager at GlobalGiving, an online marketplace that connects donors with grassroots sustainability projects in the developing world.

GlobalGiving provides a platform for corporate partners' employees to donate money, skills or time to projects that match these businesses' corporate social responsibility agendas. Corporate partners can then market the partnership to show customers that they are more environmentally friendly.

"Partnerships with recognized non-profit green organizations allow businesses to demonstrate their environmental awareness publicly, but we ensure that they remain accountable to their consumers and do what they say," McWilliams said.

Eco PR online

Businesses that talk about being environmentally friendly but don't implement green policies could be accused of "greenwashing", a form of spin that labels a company's policies or products as environmentally friendly.

"Rather than launching big campaigns, businesses may find communication more effective if they are honest with their consumers about material sourcing and genuinely think about what their consumers need," said Hannah Lane, senior counsel at the Shanghai practice of Ogilvy Earth, advertising agency Ogilvy & Mathers' global sustainability practice.

Patagonia, a California-based outdoor clothing company, partnered with Ebay last September to help its customers sell old Patagonia clothing items online.

"It was a brave thing for a brand to do, because they get no money from the reselling process. But encouraging people to use their clothes for longer and pass them on to others has strengthened Patagonia's brand image," Lane said.