Will retailers and brands pay a steep price for greenwashing?

Environmentalism was already on the rise before the novel coronavirus pandemic, but a recent study indicates that since the pandemic, consumers are even more driven by environmental concerns. Do you think that most retailers are engaged in good faith efforts to reduce their environmental impact, or is greenwashing commonplace?

Environmentalism was already on the rise before the novel coronavirus pandemic, with more retailers taking public, environmentally conscious stances. A recent study indicates that since the pandemic, however, consumers are even more driven by environmental concerns and retailers will take a hit if they ignore the phenomenon.

Seventy-two percent of respondents to a survey by research firm GWI said, as of July 2020, that sustainability was more important to them because of COVID-19, Inc. reports. Thirty-nine percent listed a poor environmental record as one of their top purchasing concerns and it was one of the top three factors determining customer behavior. A study by IBM found 60 percent saying that they would change shopping habits to reduce environmental impact. More than 70 percent said they would pay a premium for brands that are sustainable and environmentally responsible.

The article suggests that retailers can beef up their environmental bona fides with customers by:

• Joining one of the many organizations dedicated to addressing environmental and corporate responsibility issues;
• Making the management of environmental goals a responsibility for a board member, committee or appropriate associate(s);
• Attending virtual or physical events pertaining to environmental issues.

It is not so clear, however, that pandemic-era shopping trends have been in keeping with customers’ avowed dedication to environmentalism.

At the start of the pandemic, concerns over potential transmission of the virus via contact with a contaminated surface (which were later proven mostly unwarranted) and the desire for customers to get in and out of stores as quickly as possible led to a proliferation of pre-packaged goods in grocery stores. Single-use plastic bags, which had been banned in many U.S. municipalities, also experienced a resurgence in use with some cities suspending plastic bag taxes.

The number of shipping boxes consumed by customers likewise expanded dramatically as customers were pushed to use e-commerce at an unprecedented rate beginning in March of 2020.

Surveys also indicate that customers are growing suspicious of retailers’ attempts to brand themselves as eco-conscious and skeptical about retailers making good on their environmental commitments.

• Your Retail Business Will Suffer If You Don’t Embrace Environmental Consciousness Now – Inc.
• Will the coronavirus change how we use plastic packaging? – RetailWire
• How do retailers and brands overcome consumers’ ‘green’ skepticism? – RetailWire