KEY POINTS:
New Zealand can't rely on some "hazy glow" of advertising around its clean, green image to capture the sustainability-oriented consumer market, says a British retail expert.
Mike Barry, head of corporate social responsibility at Marks & Spencer, said at an Environmental Defence Society conference in Auckland last week
that evidence of commitment to sustainability had to be clear and provable.
Marks & Spencer, a major British food and clothing retailer, had in the past two years hitched itself to the green bandwagon with great success.
The company, with annual turnover of $21 billion and profit of $2.4 billion, had proven it could commit to sustainability without losing money.
Speaking by video link, Mr Barry said when Marks & Spencer began to launch its green initiatives a couple of years ago it was thought it might cost up to $80 million a year to implement.
"Within the first year we slashed that because of savings in areas like cutting back waste, and energy and water savings ... This year it was cost-neutral."
Mr Barry said Marks & Spencer had a five-year plan to deliver 100 commitments to deal with climate change challenges by 2012.
The company had importantly highlighted a handful of highly visible commitments which consumers directly experienced, and could then believe in the other 95.
They included a redeemable voucher-based clothing recycling scheme, and charging for plastic bags which had, to date, reduced their use by 77 per cent. Profits went to charities and projects supporting green initiatives.
Mr Barry said New Zealand as a country could similarly brand itself green but needed to keep the message simple and authentic.
New Zealand had the advantage of being a discrete country which managed its sea borders, and had a strong sense of national identity.
"We in Europe mentally imagine a great outdoors country with waterfalls, fiords and beautiful landscapes which pushes open the door to brand yourself green."
But New Zealand had to be true to its product with its own "proof points" of the country's commitment to sustainability, and transparency was critical.
"It has to be more than a hazy glow of an advert but scientifically proven."
New Zealand exporters could not rely on consumers' paying a price premium for sustainability.
"Companies have to absorb the cost."
Mr Barry said that in the past few years there had been an explosive growth in green and social issues in the UK. But about a quarter of British consumers were not interested because they were on a low income or lived on the poverty line.
Only about 10 per cent of the population was passionate about the issue, or what he called green crusaders.
Mr Barry said that while their numbers had doubled in the past couple of years, and might again, the most important groups were the middle groups such as the about 25 per cent of consumers who wanted sustainability made easy for them.
"They want to be able to make a difference but don't want to have to pay more or compromise on quality ... put it on a plate and we will buy it."
Another third were sceptical about whether what they did would make a difference on global issues.
"But if they are assured others will also come on board to make that difference then they will do it."
Mr Barry said when Marks & Spencer started out on its green journey it had been easy to pick obvious issues such as organic produce.
"But we can't cherry-pick any more ... We have to get on top of the issues we're not good at."
That challenge had helped make the company more innovative, he said. But once started, absolute commitment was required.
"You can't take your foot off the pedal."
