Enviable buying influence

An ecofriendly reputation provides a competitive advantage in the current environment

Companies that are considered more green than others in their sector have a competitive advantage over their rivals, with new research showing the majority of Australians consider the environment when making buying decisions.

The research, undertaken by furniture retail giant IKEA Group, shows that three-quarters of Australians are likely to be influenced by a company’s social and environmental practises when shopping.

Women, more so than men, are calling for organisations to take steps to help protect the environment, with 82 per cent of women and 68 per cent of men indicating that it is either extremely or very important for companies to protect the environment.

IKEA Group sustainability manager Stefano Brown, speaking at an event promoting the company’s sustainable products, said large international corporations must examine the policies that affect the environmental impact of the products they sell.

“IKEA has a team in Sweden that is working on developing a scorecard for sustainability,” Brown says. “We are trying to improve the way products are developed using sustainability principles.”

The aim of the project is to make improvements in company policy on issues such as environmental protection, green manufacturing practices, standard working conditions, child labour and health and safety.

There is room to make improvements in Asia in some of these areas, Brown says.

In particular, IKEA’s sustainability team is looking to improve conditions in China, which accounts for more than 20 per cent of global sales.

Retailers play an important role in promoting solutions for a sustainable life for consumers, Brown says.

IKEA has sold compact fluorescent light bulbs for the past decade and contributed to awareness of new energy efficient technology.

“Ten years ago, we sold millions of compact fluorescent light bulbs and created an interest in the product, now of course there is a legal obligation all over the world where traditional bulbs are now phased out,” Brown says.

“If every IKEA customer today, more than 170 million people, replaces one traditional 60 watt incandescent light bulb with a compact fluorescent bulb, the emissions saved would be equivalent to the emissions from 800,000 cars.”

BRW

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