HUL to Nestle, brands are using green marketing initiatives to woo buyers

Green is slowly emerging as a common marketing theme binding a host of brands -- from realty developers to oil companies. Industry experts say regulatory push and consumer maturity are driving this environment push. That and some real problems on the ground.

As the harvest season set in, the country’s capital once again found itself gasping for breath because of poor air quality. As a political blame game ensued, such environment disasters show the great opportunity that brands have to display their green leanings. It is not just a coincidence that around the same time, ExxonMobil took to Twitter to promote its natural gas as a clean energy option that helped improve air quality. “ExxonMobil provides a cleaner burning natural gas that can power everything from homes to industries while helping Delhi reduce emissions and improve air quality,” its 

tweet said. 

ExxonMobil is not alone to jump at the vast opportunity green awareness offers. The list is long and includes biscuit manufacturers, realty developers, cement makers, transport utilities as well as e-commerce platforms. 

Ashish Mishra, managing director for Interbrand, points out that till about a decade ago green branding in India was treated more as a photo opportunity, a tool to assuage the angst of affected communities or offset the inherent downside of a business. This, however, is changing. “Consumers are becoming more evolved and show a growing sense of responsibility. They say they want to associate with brands that are responsible and hence the narrative of green branding in India is changing,” he said. 

Research has proved that consumers are attracted by brands that stand for a purpose higher than profit making. And that is a global phenomenon. The fourteenth annual Accenture Strategy Global Consumer Pulse Research — ‘From Me to We: The Rise of the Purpose-led Brand’ — surveyed nearly 30,000 consumers from around the world last year to gauge their expectations of brands and companies. The study found that companies that stand for something bigger than what they sell, communicate their purpose and demonstrate commitment, are more likely to attract consumers and influence purchasing decisions which improves competitiveness. While unveiling the survey, Bill Theofilou, senior managing director, Accenture Strategy, had pointed out the pitfalls of not being seen at the forefront of the green movement: “Many companies have neglected to convey purpose due to complacency, lethargy or the fear of polarising people, which has allowed smaller players to rise.”

No wonder, companies that operate in grossly polluting industries are also using green branding in a bid to improve consumer perception about them. Dalmia Cement, for example, looks to turn into a carbon negative company by 2040. The company has been using its ‘Worlds greenest cement company with the lowest carbon footprint’ tag in most of its mass media communication. 

This holds true for ecommerce giants Amazon and Flipkart in India that are looking to phase out single-use plastic from their packaging. While Amazon has not weaved this narrative into its brand campaigns yet, the ecommerce platform is using its website and other online resources like blogs and its Twitter handle to speak about its green initiatives. Flipkart is doing something similar through the story section on its website.  

Mishra adds that along with consumer awareness, there is also a regulatory push behind such initiatives by brands. “Safety standards and compliance requirements are being tightened. A combination of regulatory push and more aware customers is playing a role in brands turning to green marketing in a more conscious and real way,” he says. 

As India inches closer to phasing out single-use plastic, green branding has made its way into the campaigns of many fast moving consumer goods (FMCG) companies. Hindustan Unilever (HUL), for instance, is running an initiative under its "Start a little good" campaign. The initiative focuses on water harvesting, water conservation and plastic waste management amongst other things. To be fair, green initiatives are not new from the company. The company has been at it for many decades now. In June, Nestle India helped install the Wall of Hope in Mussoorie, which has been constructed using 15,000 plastic bottles to encourage tourists not to litter.

"Mainstreaming of green and learning how to create profitable businesses out of environment-friendly initiatives is the only way forward,” says Mishra. He says Godrej Properties' project Godrej Air is a good example of green branding of this kind. “They introduced this project in Delhi, where air quality is poor, and this offering looks to address the air quality issue. Unless and until brands place environment at the centre of their business, green branding will continue to remain a peripheral thing."

But are consumers willing to pay the premium the so-called green brands seem to command? There is not much data on that but once brands that espouse a higher cause are able to convert casual consumers into loyal buyers green branding will likely become mainstream.