 Better Late Than Never: Get Ready for Hot Green Markets in 2007 & 2008! “Better late than never” is doubly appropriate as I write this re-launch of the EcoMarketer newsletter. First, it applies to the newsletter itself. We launched EcoMarketer in 2004 as a way of sharing intelligence about environmental marketing within the TerraChoice family of clients. It’s been on the back burner for a while, but we’re back now, with a freshened look and a new biweekly short-and-sweet format. Better late than never (I hope). More importantly, “better late than never” describes the real traction in green markets. All of us that take environmental value propositions (EVPs) to market have been decrying the disappointing progress and lamenting the lack of follow-through on green purchasing policy. There’s plenty of reason to believe that things are finally changing – better late than never. Let me give you a few examples. This week we’re putting the finishing touches on our EcoMarkets 2007 market research. (Among other things, by the way, we are preparing a summary report for all of you.) This year we reached out to over 10,000 professional purchasers across the United States and Canada. Our respondents represented over $5 billion in annual spending! We learned some fascinating things:
- 60% of North American companies and government offices have either an informal or formal green purchasing policy in place. This represents a doubling in the last 18 months. (In both Canada and the United States, corporations are 10-15% more likely to have a green purchasing policy than are government offices.)
- Approximately 90% of respondents told us that they consider environmental factors at least occasionally consider environmental factors in their purchasing.
- 5% of respondents predict that in the next two years their organizations will be even more active in green purchasing than they are today.
In upcoming newsletters, I’ll drill into these findings in more detail. (Follow the link on the left to order a summary report.) Another example: With a whiplash-inducing speed, federal governments on both sides of the border are embracing green purchasing. In his January 24 Executive Order, for example, President Bush ordered that Federal agencies (among other things): - favor bio-based, environmentally preferable, energy-efficient, water-efficient, and recycled-content products in all purchasing;
- reduce the energy intensity of their activities (30% by 2015 over a 2003 baseline);
- support new renewable sources of electricity;
- reduce water consumption;
- favor plug-in hybrid vehicles; and
- purchase electronics that are rated according to EPEAT.
In Canada, both political and bureaucratic attention to environment is finding its stride. The good work of the Office of Greening Government Operations (OGGO) is rolling-out green purchasing tools and programs. The April 2006 Treasury Board direction on green purchasing is just now seeing early implementation in many departments. And, of course, the new environmental zeal of the Conservative party is generating (and/or building-on) public support and attention to heights that we haven’t seen in a decade. Better late than never, you might say. These are all terrific signals and they’ve been a long time coming. But the heat of these green markets creates pressure for us all as well. First, this level of intensity can’t last forever. Other priorities – political and public – will regain prominence. Until that happens we have two jobs: take advantage of the temporary lift to grow market share; and, encourage institutionalization of these purchasing trends so that as priority fades the systems remain. Second, the hot market will attract false green claims. The role of good science, EcoLogoM, and careful assertions are particularly important now. Notwithstanding these cautions, we’re heading in to an exciting couple of years! | 
