Special Report: CSR & Green Marketing
August 2008
Welcome to the August 2008 Pearlfinders research into CSR and green marketing initiatives within the ten largest sustainable companies in the UK. This is our fourth report this year, following our research into the Sunday Times FastTrack 100, Premier League football clubs and the Tier One sponsors of London 2012.
Some say that no longer is it the right move for businesses to promote a product or service as simply better value than its competitors. Increasingly, B2C and B2B audiences are becoming aware of other issues affecting the products they buy - such as whether it’s recyclable, whether the working conditions of its factories are acceptable, and how deeply the environment is impacted by its production. For today’s consumer, the fact that you can buy a garment in Primark for a third of the price of its equivalent in Marks & Spencer is perhaps no longer enough to lure customers.
Or is this naïve thinking? Each morning on TV we’re presented with the doom and gloom hitting our economy, and predictions of an even worse outlook for the future. Is saving money on the price of a garment simply too hard to resist, now that there’s less in our purses? How important is ethical marketing in today’s economic climate?
It’s often noted that when times get tough, marketing is the first budget to be cut. We’ve been investigating how both green marcoms and internal socially-responsible initiatives are being affected, when the focus for shareholders may be moving back to short-term financial gains at the cost of long-term societal sustainability.
The companies featured in this report have invested time and money into becoming truly “sustainable”, and are most certainly in this category. We’ve investigated how they’re changing during the credit crunch, as well as how they’re promoting this side of their business - and bring you insights from decision-makers themselves. These ten UK companies are taken from the Global 100 - an analyst-compiled list of the world’s most sustainable FTSE listed firms, unveiled in Davos at each year’s World Economic Forum. Its methodology spans environmental, social and governance issues.
Our findings reflect the fact that businesses aren’t moving away from CSR and green marcoms at a time of economic change. A ‘sustainable’, ‘ethical’ or ‘responsible’ approach to doing business appears to be built into top-level strategic goals, and B2C and B2B marketing initiatives. It appears that being green is a state of mind and a way of working as a company; interacting on these initiatives with all stakeholders - from employees to shareholders to suppliers, no longer able to simply watch from the outside - enables engagement. In this sense, loyalty to brands grows, and green marketing truly works.
Pearlfinders brings you insights directly from decision-makers within Britain’s “greenest”.
British Land Company
British Land is a property investment company based in London and listed on the LSE, investing in prime, modern properties. It is currently redeveloping areas in London and Sheffield with an aim of “Enhancing the public realm and improving the lives of local people”. We’ve spoken briefly to the company’s Head of Business Group, who acknowledged the efforts the company’s made to ensure sustainability’s high on the agenda. To read the report click here
British Sky Broadcasting
Having turned “Carbon Neutral” by investing in clean energy technologies, BSkyB is rated as one of the UK’s most sustainable companies. Pearlfinders has spoken to the company’s Head of Environment - she’s told us agencies need to understand that “green” comms are an extension of the company’s internal and external environmental initiatives and need to resonate with the company’s wider business strategy. To read the report click here
BT Group
With BT consuming 0.7 per cent of the nation’s electricity, the company has to date reduced its carbon footprint by 58 per cent and set a target to achieve an 80 per cent reduction in its carbon intensity worldwide by 2020. The company is working towards its targets by reducing demand, buying low-carbon electricity and generating low-carbon energy. To read the report click here
Cable & Wireless
Environmental initiatives for Cable & Wireless are focused on energy conservation, recycling, waste management, water usage and reducing its greenhouse emissions. We’ve spoke to the company’s Director of Corporate Social Responsibility, who’s explained the current status of sustainability issues at the company during a period of corporate restructuring. To read the report click here
Capita
With clients in central and local government, Capita Group is a London-based FTSE100 company specialising in business process outsourcing. Pearlfinders discussed green strategy and marcoms projects with the company’s communications department, uncovering its approach to CSR strategy. To read the report click here
Centrica
In April 2007, Centrica launched British Gas New Energy, a subsidiary business focusing on low-carbon and energy efficient products and services for its customers. Rumours are rife that with soaring energy prices, British consumers will stop investing in initially costly green energy products and services. We’ve spoken to BGNE Head of Marketing, who’s talked about the company’s ongoing sustainability initiatives and what agencies should be doing to support these. To read the report click here
Diageo
Global drinks business Diageo invests in a range of community and environmental initiatives, such as ensuring the efficient use of energy, management of water and release of greenhouse gases in its manufacturing operations. Pearlfinders has spoken to both its Global Relationship Marketing Director and Director of Brand Communications, who’ve provided us with insight into exactly what the company’s doing surrounding sustainability, as well as what areas of these are communicated through B2C messaging. To read the report click here
HBOS
Nobody’s been hit harder by current market conditions than the financial services industry. HBOS is the UK’s largest provider of mortgage and savings products, employing 72,000 people across its group. The business became ‘Carbon Neutral’ last year, and published a Climate Change report earlier this month. Pearlfinders has spoken with a key decision-maker for the company’s green marketing and policy formation about how the company’s focusing on internal green initiatives this year, before communicating these to customers in 2009. To read the report click here
Johnson Matthey
Chemicals company Johnson Matthey boasts "rigorous" environmental policies, promoting its products as beneficial to the quality of life of people around the world. Last year it launched its "Sustainability 2017" initiative, which aims to embed sustainability into every aspect of the business. With the economic climate having shifted since its launch, Pearlfinders has spoken to the company’s PR Manager, who’s overseeing communications surrounding this initiative, to discuss how a changing business environment is affecting this ten-year plan. To read the report click here
Land Securities
Land Securities is a FTSE 50 commercial company, specialising in property investment, development and services. The group positions itself as "Committed to communicating effectively both internally and externally on all environmental issues". As a business it advises customers in the UK and US on how they can reduce energy usage, and utility bills. We’ve spoken with the company’s Environmental Director about the impact of the credit crunch on the company; he’s discussed how the company’s offer to improve clients’ energy efficiency actually fits in with the downturn in the current economic climate. To read the report click here