Greentailing

Greentailing
The value of the third party
May 01, 2009

Justin Doak

Being reasonably new to Austin, Texas, I had to practice a simple, yet effective, form of third-party validation a few weeks ago. The challenge? To find a great Thai restaurant on the South Side. Like any resourceful food junkie, I queued up the Zagat ratings for Austin, got their signoff and have since then revisited the restaurant four times. That is the power of a valid endorsement.

Third-party green rating systems—such as LEED and Smart Certification—are no different. They are mere endorsements from a recognized leader, verifying that the product in question is good, safe, clean, healthy, local and/or environmentally friendly.

I wish I had the luxury of time—and a large enough Rolodex—to phone an expert every time I was trying to determine whether the coffee I’m about to buy was grown on a sustainable farm or whether the space I’m about to lease scores well on energy performance—but I don’t. This is why our global market will continue to embrace the value of third-party platforms.

The list is ever growing: LEED, Fair Trade, USDA Organic, Energy Star, Cradle-to-Cradle, Smart Certification, etc. Certifying programs like these are becoming standards in the professional manufacturing, design and construction industries. The real impact, however, comes with consumer application. Today, such programs operate like slang, enabling folks to make quick, smart and safe consumer decisions.

As industry professionals, we often curse the challenges associated with moving through certification, but we are learning the value that third-party certification provides. According to the LOHAS (Lifestyles of Health and Sustainability) Consumer Trends Database, 66 percent of the general population is more likely to purchase an Energy Star-endorsed product, with 54 percent more likely to purchase a product with a recycled logo and 29 percent more likely for items that are USDA Certified Organic. In economic times like this, I don’t know a single company that can afford to give up this type of a competitive advantage.

As consumers, we catch ourselves cursing the premiums associated with these certified items, but are also quickly realizing the added value and impact that green products and spaces have on our health, safety and planet.

A prime example: prior to the Nutrition Labeling and Education Requirement passed by the Food and Drug Administration in 1994, we had no idea what we were putting into our bodies. Since then, we’ve had a complete transformation in the food industry. Those companies that embraced this new requirement excelled, as they recognized a market opportunity for healthier food that was lower in fat and sodium, and provided daily requirements of fiber, protein and/or riboflavin.

What Nutrition Labeling did for the food industry is what LEED has done for the building industry, and what Energy Star has done for performance. Next up is product—and several systems have emerged in the hope of establishing themselves as the de facto benchmark for sustainable products.

Will there always be a place in the market for third-party certification? Absolutely. Does it have value? Certainly. Will it cost more to a manufacturer, designer and/or builder? Yes, in some form. It may not be upfront capital costs, but it could simply rest in the cost of time associated with any learning curve, such as education, lifecycle assessments, waste audits, etc.

I wish we lived in a society where I could trust a company’s personal endorsement to my health and the planet, but with so many masters of marketing, I need to have a baseline, benchmark and/or third party to ensure that the purchase I’m about to make provides value in health, value for our planet and value in my dollar.

So how does one start? The first step is to research the relevant metrics used in your specific industry to measure and verify sustainability claims. How does your product or brand measure up? What are the appropriate formal rating systems and third-party platforms? Once you have this understanding, it will enable your organization to accurately assess and communicate the sustainable attributes of your product/brand along with its impact areas from a third-party, neutral perspective.

These market-specific programs are consensus- and/or research-based guidelines that literally spell out the expectations of future target groups. In short, these programs are the “North Star” for the design, construction and manufacturing world. Disregarding them is like dismissing a free market trends report. Embracing them is just plain smart business and risk management.

Emerging consumer types are motivated by social and environmental values and will reward you with commitment and brand loyalty. Are you ready to be transparent and tell the full story of your product or process? If so, the market is ready to listen.

Cheers,

Justin Doak
CEO, BlueBin
Send your green retail questions to justin@thebluebin.com.