Consumers Need More Green Awareness

[Rodney Brooks]

Consumers Need More Green Awareness
Jack Loechner, Nov 03, 2009 04:15 PM

According to the annual Ipsos Green Technology report, few technology purchasing consumers are aware of specific environmental policies and practices of technology firms, despite the efforts of companies and the accolades in the media. Though few are aware of specifics, environmentally friendly policies and programs are becoming more top of mind for U.S. consumers when making technology related purchase decisions.

While consumer awareness is low, tech companies are being praised for their environmental activities by others. A recent story from Newsweek ranked Fortune 500 firms based on policies and programs put in place to lessen the overall environmental impacts of their business processes and product consumption. Among CEOs, academics, and environmental experts, green ratings were dominated by well known technology firms, in part for their leadership in reducing emissions, removing toxic substances and reduced energy consumption.

Mike Bellmont, Senior Vice President with Ipsos MediaCT, said "... a lot of work has been done to build and institute environmental policies and processes (by tech companies), but the information still needs to reach consumers in terms they can relate to."

44% of consumers did not associate any technology brand tested with having green or environmentally friendly business practices in 2009 compared to 2007, when 55% did not associate any technology companies. Even Apple and Microsoft, the greenest rated consumer firms, were only associated with environmentally friendly business practices by fewer than one in four consumers.

Perceived Environmental Friendliness of Technology Brands by Consumers
% of Consumers Perceiving as "Green"
Brand 2009 2007
Apple 24% 18%
Microsoft 21 19
Google 21 n/a
Hewlett Packard (HP) 21 19
Dell 20 19
LG 18 6
Sony 17 13
Kodak 16 14
Source: Ipsos Green Technology Study, October 2009; Base: US respondents owning/using tech device with Internet access

Highlighting the lack of consumer awareness, only 7% of US consumers associated Intel with having environmentally friendly business practices or policies, though well known by environmental experts for policies of renewable energy, a focus on energy efficiency of their products, and reducing waste and use of toxic materials.
The survey results show that the proportion of consumers who claim they investigated or considered the environmental aspects of their purchase remains low overall, with fewer than half saying they considered these issues in their most recent purchase. Consumers remain more inclined to consider the environmental impact when purchasing big ticket items, such as automobiles and large household appliances.

Environmental Considerations When Purchasing (% of Respondents Purchasing Category)
Purchase Category Considered Environment Did Not Consider Environment
Automobiles 49% 51%
Large HH appliance 48 52
Television 36 64
Printer 36 64
Computer 34 66
Digital camera/camcorder 30 70
Cellphone 25 75
Small HH appliance 26 74
MP3 player 23 77
Game console 20 80
Source: Ipsos Green Technology Study, October 2009

Technology purchase decision analysis shows that consumers are impacted most by environmental policies and features which claim to reduce energy consumption - and therefore the overall cost of use.
Bellmont notes that "... nearly three out of four consumers claim that devices that are ‘Energy Star' efficient, and devices that do not drain energy, would influence their purchase decisions." Additionally, environmental practices that would influence the consumer in the purchase decision include the following responses:
• 73% say an Energy Star rating would influence purchase
• 72% if the device doesn't drain energy when not in use
• 67% if the manufacturer/retailer includes a free recycling program
• 65% if the manufacturer uses environmentally safe materials
• 63% if the manufacturer recycled or disposed of the product

Base: All US respondents who have owned/used tech device and have Internet access

Though, while 67% of respondents reported that free electronic recycling programs offered by the manufacturer/retailer would influence their purchase decision, only 38% said they are aware of these programs and only 8% say they have taken part in these programs.

Bellmont concludes that "One in three consumers say they are willing to pay more for a green positioned product, so these perceptions can positively impact the bottom line for companies in the technology sector... "

For more about the Ipsos Green Technology Report, please go here http://www.ipsos-na.com/news/pressrelease.cfm?id=4561&wt.mc_id=....