Who cares about the environment? Just about everybody these days. In fact, according to research from Natural Marketing Institute’s (NMI’s) LOHAS Consumer Trends Database™, 85% of U.S. adults say they care about protecting the environment – about as close as you get to consensus these days. And, according to Nielsen Online, buzz in the blogosphere on the subject of sustainability increased 50% in 2007 and 106% since September of 2006. While the conversation about subjects like global warming and fossil fuels is on the wane among Sustainability bloggers, hot topics include renewable energy/alternative fuels, packaging/plastics, LEED (Leadership in Energy and Environmental Design), simple living, Energy Star, corporate responsibility and green-washing.

Taking responsibility
The conversation on the Internet has matured, converging around issues such as sustainable agriculture and development. Demands for corporate responsibility are tempered by those advocating for personal responsibility on the environmental front in discussions about recycling, hybrid vehicles and unnecessary plastic packaging. While there is a collective sense that everybody could be doing more to help the environment, currently consumers are pushing back to companies to take the lead – 62% of consumers said companies should be doing more, while only 48% said that individuals should be doing more according to the newly released NMI U.S. LOHAS Study.

Leading the charge among dedicated Sustainability bloggers is the TreeHugger.com web site, which is more than six times more active than other environmental sites based on sustainability messaging. TreeHugger got a boost on two dimensions of engagement—time per person and unique audience—following its August 2007 acquisition by Discovery Communications. One of the benefits of a site like Treehugger is that it creates a sense of authenticity for its readers. Almost one-third of consumers do not trust mainstream news to report accurately on environmental news, and when consumers can speak directly to each other, this perceived bias is removed.

Tracking performance
Companies are being put under the microscope to detect any variance between green claims and green actions, with particular scrutiny devoted to natural resource companies, auto manufacturers, consumer packaged goods firms, electric/energy suppliers, retailers, food and beverage businesses, political entities, media outlets and financial services groups.

On the lookout
According to NMI, 77% of Americans do not think companies are genuine when they talk about the environment or society, and bloggers are on the lookout for tell-tale signs of green-washing such as contradictory actions, efforts incongruous with a company or industry, false or misleading comments, suspicious behavior and excessive publicity. For example, while some bloggers take Starbucks to task for giving lip service to fair trade issues, they praise Dunkin’ Donuts for adopting a “relatively demure” PR stance surrounding its 100% fair trade certification. It would seem that bloggers are looking for subtle messages with “show” rather than “tell” actions on environmental issues.

From banner to brand
Customer loyalty has long been the holy grail of marketers. Sustainability programs may prove to be the ticket to achieving that goal. On the corporate level, energy saving, recycling, green sourcing and ingredient selection earn sustainability credits in the public eye.

At the retail banner level, touting those activities will connect with consumers. A survey fielded by NMI revealed that 30% of American, 23% of European and 17% of Japanese consumers are "willing to pay 20% more for products made in an environmentally friendly and sustainable way." Any changes to product formulation or packaging stemming from a green concern should be featured prominently in brand communication. New product introductions or line extensions can be differentiated along the sustainability dimension as well, provided that they deliver the same functional benefits (i.e., performance) to consumers.

Everybody wins
One reason sustainability has demonstrated staying power, is that it’s good for everybody—the environment, community, employees, stakeholders, business and consumers. It preserves the environment for future generations, fosters efficient business practices that have the potential for reducing operating costs and promotes healthy lifestyles while satisfying the desire to give back to the community.

Manufacturers have seized the moment and the movement, introducing products like Clorox Green Works cleaners and Home Depot Eco Options, Compact Flourescent Lightbulbs (CFL’s), Tide Coldwater detergent, a re-designed Pampers line using 40% less material, and Nestlé water bottles made with less packaging. Retailers like Whole Foods, Aldi and Ikea have banished or started to charge for plastic bags. Safeway announced an ambitious plan to switch over its truck fleet to biodiesel fuel, removing 75 million pounds of carbon emissions from the air.

Consumers count
Shoppers weigh in with a contribution as well, buying organic and opting for locally-grown foods to avoid energy used for shipping from distant places. Simple things like turning off the lights and electronics when not at home, lowering thermostats, taking a canvas bag to the store, driving hybrid cars, car pooling, using public transit or joining car-share clubs like Zip Cars, patronizing eco-friendly dry cleaners to avoid toxic chemicals, and diligently continuing efforts to reduce, recycle and reuse all help the Earth and help consumers feel good about themselves.

LOHAS living
LOHAS stands for Lifestyles Of Health And Sustainability, and describes an integrated, rapidly growing market for goods and services that appeal to consumers whose sense of environmental and social responsibility influences their purchase decisions. NMI estimates the U.S. LOHAS consumer market of products and services to be $209 billion – sold across all consumer segments.

The five LOHAS segments as defined by NMI include:

• LOHAS (19%)—active environmental stewards dedicated to personal and planetary health. These are the heaviest purchasers of green/socially responsible products and the early adapters who influence others heavily.
• NATURALITES (19%)—motivated primarily by personal health considerations. Tend to purchase more LOHAS consumable products vs. durable items.
• DRIFTERS (25%)—while their intentions may be good, DRIFTERS follow trends when it’s easy and affordable. They are currently quite engaged in green purchasing behaviors.
• CONVENTIONALS (19%)—pragmatists who embrace LOHAS behavior when they believe they can make a difference, but are primarily focused on being very careful with their resources and doing the “right” thing because it will save them money.
• UNCONCERNED (17%)—either unaware or unconcerned about the environment and societal issues mainly because they don’t have the time or the means – these consumers are largely focused on getting by.

Integrating the NMI LOHAS segmentation model with Nielsen consumer panel data provides a unique window into the shopping purchase, location and lifestyle behaviors of key targets to better understand how consumers are engaged in sustainability today and monitor how that is trending overtime across the fast moving consumer goods categories.

Early indicators
If you’re looking for LOHAS marketing impact, look to these focus areas where consumers have already made a difference: natural and organic foods, alternative transportation [hybrid vehicles], energy efficient appliances, green building products, eco-household products, natural personal care products, renewable power, socially responsible investing, vitamins, minerals and dietary supplements, healthy lifestyle attitudes and media patterns.

A quick glance at the NMI LOHAS segmentation scheme shows differentiated consumers, shopping and buying behavior. For example, the NATURALITES segment is comprised typically of lower income families who are more likely to live in rural environments. Their channel choice reflects their socioeconomic grounding, and they therefore shop in lower-cost channels such as dollar stores and supercenters. In contrast, the LOHAS and CONVENTIONALS segments over index to the more upscale warehouse club channel. Retailers can use this information to modify store formats and in-store signage, add new services and adjust assortment to expand natural or organic lines.

Buying behavior differences among the segments are also revealed. The LOHAS and CONVENTIONALS segments exhibit greater incidence levels in the yogurt category with an annual penetration of 81% and 77%, respectively, compared with 72% for NATURALITES and 71% for UNCONCERNED. Likewise, the wine and vitamins categories also show a higher LOHAS consumer purchase incidence. Manufacturers should understand the exact composition of their target segment and consider potentially repositioning their advertising message, rationalizing their product portfolio and modifying packaging and labels to better appeal to their key targets.

Checks and balances
Except for a few ardent environmentalists, consumers apply a personal litmus test to their eco-friendly purchase equation. For example, in the Global Packaging and Environment Report, Nielsen researchers found that 90% of consumers who cited recyclable bags and packaging as a key driver of store choice would be willing to give up an aspect of packaging if it meant helping the environment. According the report, almost 50% would dispense with stackable/storable packaging and 48% with convenience packaging. On the other hand, factors such as hygiene and protection were not negotiable.

Conservation obligation
While it may have taken some time, consumers get the environmental message. Caring for the planet is everyone’s concern and everyone’s obligation. From where we live to what we eat, from where we shop to what we drive, responsibility for preserving and protecting the planet is in our collective hands as employers, employees, consumers and shoppers. Corporations – retailers and manufacturers – can either dial up their environmental activities, get ahead of the game and use it as a strategic platform, or find themselves subject to informal boycott as consumers patronize more eco-friendly options. The choice is yours.