Eco-capitalism throwing up a new world of brand challenges
| publication date : | 2009-05-01 | |
| author : | Janice Spark | |
The 2008 energy crisis is forcing South Africa to catch up with eco-capitalist shifts across the rest of the planet, and fast. And there is much catching up to do – with oil prices widely predicted to hit $200 a barrel in the near future, the pressure to fundamentally alter mankind's energy consumption habits (and radically reduce pollution levels) is increasing exponentially. We are, in short, fast entering the world of eco-capitalism.
“There are many signs of the so-called Green Rush beginning in earnest,” says Spark. “FMCG brands are pushing to establish seriously green identities, while carbon trading, carbon off-sets and carbon emissions caps are becoming a core business reality across the board. South Africa is no different. With our energy crisis as an immediate and powerful context, businesses and brands across all sectors are re-gearing in terms of identity and the way they do business.”
From fast food to fashion, banking, investments and airlines, a strong green identity is now a basic pillar of 21st century branding. Vodafone, for instance recently formally announced its intention to halve its carbon footprint by 2020, amidst much PR fanfare, of course. And then there's adidas' GRUN collection, launched in 2008. The collection 'aims to better the environment by efficiently utilising natural resources by developing new products made entirely from recycled and natural materials', such as bamboo and hemp. The three brand pillars of the range are “Made From”, “Recycled” and “Reground”. The “Reground” range is fully biodegradable, even down to the zips, which adidas claims is a world first. To supporting the product range, adidas has teamed up with Dazed Digital to drive a 'guerilla gardening' campaign across London. Guerilla gardening has seen young culture jammers and social activists swapping their spray cans for gardening gloves to beautify urban areas – street style - via night time gardening!
Brand strategists are, however, going to have to re-think some basic assumptions, cautions Spark, citing the recent global controversy over biofuels as a key lesson.
“Historically, there has been, as the old adage says, no such thing as bad publicity,” Spark says. “In the world of eco-capitalism, however, some serious re-thinking will be required as to how to position brands over the long term - and the recent biofuels saga offers an important lesson. The sudden questioning as to whether biofuel production is in fact worsening global warming shows us that in the 21st century the status of brand hero also has the potential to become a serious liability, overnight, and particularly where fledgling eco-capitalist business models are concerned. People and organisations across the world are running for cover in an attempt to limit the reputation damage when it comes to biofuels, and strategists should be taking note. Today's environmental silver bullet can quickly become tomorrow's problem.”
According to Spark, 'over promise and under deliver' is likely to become a bedrock of eco-capitalist business and brand strategies, especially as more and more brands seek to blend their marketing and Corporate Social Investment (CSI) activities to create a sharpened 'green' identity.
“Pragmatic brands will throw their CSI weight behind strong environmental projects, but will also be very careful about assuming too much of a 'hero' posture in publicising these projects,” says Spark. “When the consequences of failure and / or scandal are so high, few will want to get caught in the full glare of public opinion. “
Corporate scandal is another aspect of eco-capitalism Spark predicts could well feature prominently in years to come. In 2008, Enron and WorldCom are the corporate scandal benchmarks which define the range of public expectations as to what major global corporations are willing to do to make more money.
“The quick and often ad hoc evolution of eco-capitalist business models – particularly carbon trading and off-set schemes - means that there is plenty room for confusion and interpretation, exactly the sort of environment that encourages dubious accounting and corporate practices,” says Spark. “The chances are strong that the standard of corruption set by WorldCom and Enron will be comfortably outstripped in the eco-capitalist future. Equally, we can expect the public outcry to be far louder than before, because the consequences of such actions will impact profoundly on all of us.”
So, whether it's laptops made of recyclable materials such as bamboo, massive 'carbon neutral' residential developments, guerilla gardening or socially conscious coffee, the global Green Rush is clearly already in full swing. And every day the oil price goes up, the global imperative behind eco-capitalism grows stronger.
“Environmental degradation, energy efficiency and sustainable production are universal issues,” concludes Spark. “Britain just experienced its biggest power failure in a decade, so South Africans should be aware that our issues are not unique. Indeed, these issues are going to colour the way global society lives and works in future years. It will be fascinating to see where we end up, and how brands and businesses go about responding to a new commercial and social context.”
