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Consumers Question Companies' "Green" Claims

Sept 5, 2008

Now that organic has become mainstream, vendors and manufacturers are looking to quantify just how "green" they are as a means to differentiate themselves from all the competing claims in the marketplace, The Denver Post reports.

In addition to reassuring customers products are pure -- through organic certification -- companies recognize the value of showing shoppers that they have healthful business practices, too.

Is a company truly "green," or is it a conventional business that makes green or organic products?

To separate the two, some professionals are revealing traceable pathways from farm and factory to store. This type of transparency -- an industry buzzword -- allows companies to highlight product purity and tap into a consumer desire to support ethical and sustainable business practices, says Ted Ning, executive director of Lifestyles of Health and Sustainability (LOHAS), the media division of Louisville-based online and catalog retailer Gaiam.

"It's a way of opening your kimono, showing that you have nothing to hide," said Ning, whose group publishes LOHAS Journal and presents the annual LOHAS Forum, held earlier this summer in Boulder.

"There are other values equated with the transfer of food practices of farmers, carbon footprints and soil health," he added. "People want to have more of a conversation with companies."

Out of 360 attendees, 80 percent were new.

To retain sustainability-minded consumers -- about 40 million shoppers whom Ning describes as strong evangelists of the philosophy -- some companies are preparing to answer such questions as, "Are the stones and metals in this jewelry mined in the most sustainable way?" "Do these farmers pay day laborers good wages?" "How many food miles were traveled getting products to market?"

"It's important to do a gut check on these alliances and find out who the good companies are," said attendee Julie Klein, director of environmental affairs for Vail Resorts.

When seeking proof to substantiate claims, consumers are met with a slew of stickers -- from the Energy Star and Kosher stamps to labels of the Organic, Fair Trade, and Soil associations.

"There has been an explosion of seals and certifications," Ning said. Product packages "look like a Girl Scout merit-badge sash."

To cut through marketing jargon and price wars, Whole Foods is highlighting its green practices.

"There's no way in the world that we win a price battle with Wal-Mart," said Michael Besancon, southwest regional president of Whole Foods Market who spoke to attendees at the sustainability conference. "So we have to continually raise the bar."

At Whole Foods, that means highlighting green practices. Stores will compost 52 million pounds of green waste annually instead of sending it to landfills. The company has also introduced its own badge to the green sash: Whole Trade. This stamp is affixed to products from companies that, among other things, meet wage and working condition standards for farm workers, and pay higher rates to growers.

The natural-products retail giant that swallowed up Boulder-based Wild Oats this spring also recently launched a "value tour" program that helps customers navigate the stores to find the best prices.

At Wal-Mart, a new three-person corporate responsibility team is making inroads with some manufacturers, one of which stripped boxes from tricycles to reduce waste; another has been asked to produce organic corn flakes.

Transparency is not a new concept. The presence of third-party organic certifiers on packages is an example of existing efforts. To obtain the organic seal, issued by the U.S. Department of Agriculture, products must be made from 95 percent organic ingredients. Now more consumers are also starting to demand better business practices.


Consumers Question Companies' "Green" Claims

Sept 5, 2008

Now that organic has become mainstream, vendors and manufacturers are looking to quantify just how "green" they are as a means to differentiate themselves from all the competing claims in the marketplace, The Denver Post reports.

In addition to reassuring customers products are pure -- through organic certification -- companies recognize the value of showing shoppers that they have healthful business practices, too.

Is a company truly "green," or is it a conventional business that makes green or organic products?

To separate the two, some professionals are revealing traceable pathways from farm and factory to store. This type of transparency -- an industry buzzword -- allows companies to highlight product purity and tap into a consumer desire to support ethical and sustainable business practices, says Ted Ning, executive director of Lifestyles of Health and Sustainability (LOHAS), the media division of Louisville-based online and catalog retailer Gaiam.

"It's a way of opening your kimono, showing that you have nothing to hide," said Ning, whose group publishes LOHAS Journal and presents the annual LOHAS Forum, held earlier this summer in Boulder.

"There are other values equated with the transfer of food practices of farmers, carbon footprints and soil health," he added. "People want to have more of a conversation with companies."

Out of 360 attendees, 80 percent were new.

To retain sustainability-minded consumers -- about 40 million shoppers whom Ning describes as strong evangelists of the philosophy -- some companies are preparing to answer such questions as, "Are the stones and metals in this jewelry mined in the most sustainable way?" "Do these farmers pay day laborers good wages?" "How many food miles were traveled getting products to market?"

"It's important to do a gut check on these alliances and find out who the good companies are," said attendee Julie Klein, director of environmental affairs for Vail Resorts.

When seeking proof to substantiate claims, consumers are met with a slew of stickers -- from the Energy Star and Kosher stamps to labels of the Organic, Fair Trade, and Soil associations.

"There has been an explosion of seals and certifications," Ning said. Product packages "look like a Girl Scout merit-badge sash."

To cut through marketing jargon and price wars, Whole Foods is highlighting its green practices.

"There's no way in the world that we win a price battle with Wal-Mart," said Michael Besancon, southwest regional president of Whole Foods Market who spoke to attendees at the sustainability conference. "So we have to continually raise the bar."

At Whole Foods, that means highlighting green practices. Stores will compost 52 million pounds of green waste annually instead of sending it to landfills. The company has also introduced its own badge to the green sash: Whole Trade. This stamp is affixed to products from companies that, among other things, meet wage and working condition standards for farm workers, and pay higher rates to growers.

The natural-products retail giant that swallowed up Boulder-based Wild Oats this spring also recently launched a "value tour" program that helps customers navigate the stores to find the best prices.

At Wal-Mart, a new three-person corporate responsibility team is making inroads with some manufacturers, one of which stripped boxes from tricycles to reduce waste; another has been asked to produce organic corn flakes.

Transparency is not a new concept. The presence of third-party organic certifiers on packages is an example of existing efforts. To obtain the organic seal, issued by the U.S. Department of Agriculture, products must be made from 95 percent organic ingredients. Now more consumers are also starting to demand better business practices.

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