From recycled plastic credit cards to insect-based pet food and biodegradable shoes, sustainable and eco-friendly products have swept across consumer markets in recent years, writes Financial Times (Nov. 28, 2020). In the four years to 2019, only 16% of consumer goods products in the US were marketed for their sustainability, yet they accounted for more than half of the sector’s growth.
This proliferation of a huge range of green and eco-friendly goods has worried regulators and prompted questions about whether sustainability claims are always truthful or clear. “There is a lot of activity but some of it is very superficial and some of the product or packaging claims are actively misleading,” says a Unilever exec. The rise in sustainable goods was prompted both by consumers who want brands that have a strong purpose and by investors.
At the same time, a generational shift has taken place. An NYU research study found that “the younger the household, the more likely they were to buy sustainability-marketed products.”
As sustainable products have moved into the mainstream, labels and credentials have proliferated. Canada’s Eco Label Index has counted more than 450 certification schemes. The EU said it was “concerned that this surge in demand for green products and services could incentivize some businesses to make misleading, vague or false claims.”
Some popular terms, such as “biodegradable,” lack widely accepted definitions, while others can be misleading. One example is packaging that is “recyclable” but requires specific local facilities that are not always available. A growing number of products claim to be made from recycled “ocean plastic,” even though no system exists to remove plastic waste from the sea at scale.
Classroom discussion questions:
- What OM functions are involved in meeting sustainability goals?
- What does the term “corporate social responsibility” mean in relation to this article? (Hint: see p. 194 in your Heizer/Render/Munson text)