The Rise of Green Consumerism: Is it a Fad or is it “Sustainable”?

Prepared by : Sunil SagarNilesh PachuriNitish SharmaMayur MahidharManish ShuklaPankaj MundraMoneet SaraswatParth Sri Narain Tripathi

Green Consumerism: The Evolution• It is defined as “the use of individual consumer

power to promote less environmentally damaging consumption, while still satisfying consumers wants and needs”

• Was in Europe since 1920 and was later gained attention by US in 1960’s and 70’s

• The birth of the modern green consumerism was boosted by the Brundtland report

• The challenge of sustainable development is to find new products, processes, and technologies which are environmentally friendly while delivering the things we want

The Fact File• Role of states, businesses, academia, NGO’s and

the consumers• Kyoto protocol, an agreement made under the

UNFCCC took an eminent step to reduce the emission of green house gases

• US government aimed to prevent the release of more than 500 million metric tons of carbon equivalent emissions

• Australian government adopted “Proactive Environmentalism” which agreed to limit its emissions to 108% of 1990 levels b/w 2008-12

Nike reuse a shoe

Walmart moves towards green consumerism• Increase the efficiency of its vehicle by 25% over

next 3 years and double efficiency in 10 years• Eliminate 30% of energy used in stores• Reduce solid waste from US stores by 25%• It has become the biggest seller of organic milk and

biggest buyer of organic cotton• And it tried to reduce electricity

consumption by compact fluoroscent

bulbs

Criticisms faced by nike and walmart • Nike faced issues at its indonesia plant and suffered

criticisms from US women’s groups and named among the ten worst international corporations

• Walmart faced issues like low wages and gender discrimination

• ‘Body shop’ also faced criticisms due to use of non renewable materials

• In green consumerism the focus is on the planet without compromising on profit, which leaves people more vulnerable to exploitation.

Green consumerism & perception • Growth of green consumer is 39%, which has

increased from 1 bln $(1990)-14 bln$(2005).• consumers in developed nations are more

environment conscious & also are ready to pay extra for green & organic products.

• While there is less awareness & willingness about green products in developing nations.

• Developing nations feel that ecological depletion is due to developed nations

• Consumers in developing nations look for value of money, so hesitate in buying expensive green products.

Organic Food• Organic foods are foods that are produced using

methods of organic farming – that do not involve modern synthetic inputs such as synthetic pesticides and chemical fertilizers.

• Vegetables, processed food , fruits grown through naturals means .

• Special farms has been developed in US for organic farming.

• Reason behind consumption of Organic food was, 30% increase in disease through vegetables grown by using pesticides.

• In a survey by NEETF which is conducted every year. It was found that public is not always aware of concerned about environmental issues.

• In another by Roper starch which publishes green gauge report, survey on consumer attitudes about environment & environmentally purchasing decisions.

• Following were consumer attitudes which were broke down in %

• 11% true blue greens• 5% greenback greens• 33% sprouts• 18% Grousers• 33% Basic Browns.

GREENWASHING • It is an act of disseminating disinformation by an

organization to present an environmentally responsible public image.

• For eg. ExxonMobil

Biggest Question : “Sustainability”

• Consumer always wants to MAXIMISE their utility.• LEADS to accomplishment of common goal –

Environment.• Ever INCREASING DEMAND of green products

with population and economic growth.o Sales of organic cotton triples ($900 million ’06 -

$2.6billlion ’08)

• Meeting rising demand with commoditizing the product and lowering price points.

• Trend translation to all products.

• Is Green Consumerism – actually GREEN…???– Ethanol a substitute of Gasoline.

• It is not the planet’s shortage but population , consumption, technology, and changing economy.

• Ironic trend – using technology for trade off b/w

economic development and environmental impact.• China known for bicycles – highest car sales –

bicycles become green product and trend reverses.• Penetration of green product to all strata of society

and all segments. (CHALLENGE)• Materializing buzzword – exploiting customer – NO

proper enforcing institution.

cont.…

• Feel of environmental responsibility but does not effect purchase criteria

• Green Product expensive than conventional product

• Governments role – subsidies.

• Recommendation – Innovation in agricultural and manufacturing process.

Thank You