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The Business Case For Green Marketing of Building Products PDF Print E-mail
Written by Paul Nutcher   
Thursday, 20 August 2009 13:20

I'm often asked by potential clients to give them some business reasons, or the return on investment case, for taking a green marketing approach. So I gathered some of the most compelling reasons a couple of years ago from the many discussions I've had with colleagues and through my active participation in events hosted by the building and renewable energy industries. While this list is by no means comprehensive and is a little dated (circa. 2007), I think it can be a good starting point for the discussion about going green if your company has not already begun the process.

  • The largest “landlord” in the United States, the GSA (Government Services Administration), requires all new federal buildings to be built or renovated to the LEED-Silver certification levels. The entire country of Canada requires LEED certified construction, as well as a growing number of U.S. cities and school district. The state of Ohio now requires all public schools gain LEED certification.
  • The financial incentives for building owners to build green have never been so abundant since the passage of the Energy Policy Act of 2005, the Energy Independence Act of 2007, and more recently the federal stimulus package. Some financial incentives even provide tax credits or rebates to both the owner and the contractors installing more energy-efficient products.
  • Intangible benefits include: brand differentiation and perceived value, higher morale in contractors installing environmentally preferred products, and avoidance of negative publicity from special interest groups.
  • Many Fortune 500 companies already know, companies doing business internationally can be asked to verify their compliance with ISO 14000 guidelines, a family of requirements for an Environmental Management System (EMS) for companies as well as guidelines on labeling, performance evaluation, life cycle analysis, communication and auditing of products attributes and manufacturers.
  • The Sarbanes Oxley Act (2002) could mean companies will have to report any potential environmental liabilities on their balance sheets to shareholders, including CO2 emissions and especially when Cap & Trade legislation requires companies to off-set emission.
  • The pressure on smaller suppliers often comes from larger organizations, which are starting to require product innovations, documentation or eco-labels certifying the sustainable attributes of building products as a condition of continuing to do business with them.
  • The EPA has promised to step up enforcement of “greenwashing” claims by product manufacturers for the building industry, as the Federal Trade Commission and many states have already done to suppliers to the residential market.
  • The Polluter Pays Principle (1972) is loosely enforced but also remains a constant potential threat.

The LEED Green Building Rating System is the leading national benchmark for sustainable design, construction and operations of buildings. It is the way in which building teams take their environmental focus and they need products to fulfill their mandates from owners, governments regulators, and society. Manufacturers with documentation of their LEED Potential readily available to these busy professionals will gain the edge in today’s “green” marketplace. Call Green Apple Group today for a free consultation on how to start your green marketing program.

 

Green Apple Group, Sarbanes Oxley Act, LEED, green marketing, ISO 14000, CO2 emissions, Energy Policy Act of 2005

 

 

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