Green sells - Change Agent

Green sells

The Amazon rainforest is not the only green thing in Brazil

  • Emerging Markets January 2010

By Justine Doody

Along with India and China, Brazil is one of the great economic success stories of the twenty-first century. As its economy goes from strength to strength, environmentalists have been concerned about the potential damage done by a fast-growing society of consumers, eager to access the same benefits of economic achievement enjoyed by the industrialised world for decades. But with new data showing Brazilians more concerned than anyone about the impact of consumer behaviour on the environment, it looks like the rest of the world has no need to worry. In fact, the rest could consider following the Brazilian example when it comes to thinking – and buying – green.

According to Synovate research, 93% of Brazilians completely agree that environmental degradation is a major issue in the country, with a further 4% saying that they agree somewhat. Eighty-two percent think the environment in Brazil is too polluted, with 12% agreeing somewhat. And Brazilians carry their concern for the environment into their consumer spending. Synovate data shows that 49% of Brazilians believe that changing the behaviour of ordinary people is the best way to combat climate change, higher than the global average of 45%, and 54% of Brazilians surveyed bought green products in 2008. Almost 72% of Brazilians bought energy efficient devices in 2008, compared to a global figure of 60%, and 73% of Brazilians recycled, compared to a world average of 68%.

According to National Geographic’s Greendex, a survey of sustainable consumption across the world, Brazilians are the most likely of all consumers in the world to avoid buying environmentally unfriendly products, and along with Mexicans and Chinese, the most likely to say they buy environmentally friendly goods. 

Synovate Brazil’s Client Services and Practices Director, Jesus Caldeiro, agrees that consumers in Brazil are going green in all kinds of ways, and that businesses need to take notice. Caldeiro says ‘The population in countries such as Brazil, India and China are the most worried about environmental issues and the usage of products that don’t impact the environment in a negative way. However, out of these only Brazil has established a target of reduction of emissions.

Brazilians are looking for a more ‘alive’ environment. This reflects not only on the products they consume but places such as bars and restaurants are becoming greener, and adoption of LED technology is growing in big numbers in Brazil, along with ‘green technology’ products.’

James Locke, CEO of Enosis Global, a market development firm focussing on Brazil and the US, points out that environmentalism is hardly a new phenomenon in Brazil – Brazilians were aware of the benefits of sustainability long before the environmentalist drumbeat started elsewhere. Locke says: ‘The city of Rio de Janeiro has the largest urban forest in the world. Brazilians have been using bioethanol in their cars on a large scale since the 1970s, and one clear benefit has been the better air quality in the city of São Paulo. Brazilians are concerned about buying green because they are well aware of the derived benefits, not because of environmental damage.’

Locke says that what seems to be a change in consumer attitudes is in fact brought about by a change in the make-up of the consumer market: ‘The change in attitudes has not been recent. What is recent is that a larger proportion of the population has entered the middle class, thus with sufficient disposable income to make a choice among brands not solely based on price.’

Whether brought about by new behaviours or by upward mobility, as the economy grows, so does the appetite for green, and Brazilian consumers are ever more watchful of the green credentials of the companies they patronise. National Geographic’s Greendex shows consumers in Brazil are the most likely in the world to pay attention to stories about the environment – 68% of Brazilians follow environmental news. These well-informed consumers so far are not disillusioned with the efforts of companies to meet their sustainability criteria: Brazilians have more confidence in businesses’ environmental efforts than do consumers elsewhere, according to Greendex, with 41% believing that industries are working very hard to make sure their country has a clean environment, as compared to a global average of 22%.

Brazilian confidence in business has been strengthened by the fact that companies have already made an effort to fit in with the Brazilian emphasis on sustainability. Operating in Brazil since 1995, the American retail giant Walmart, for example, has gone to great lengths to create an environmentalist profile. It hosted a Sustainability Summit in the country in June 2009, which brought together suppliers, NGOs, government officials and other stakeholders to work on creating the ‘supply chain of the future’. The company trains its workers in sustainability issues and insists on not buying agro-products from deforested land.

Walmart’s proactive stance on sustainability fits in with observers’ advice to companies – to meet Brazilians’ standards, mere ‘green-washing’ is not enough. James Locke says ‘For companies seeking a green positioning in Brazil there are two attributes that must be met: credibility and relevance. Companies must show that their operations are green and socially responsible throughout the whole value chain. Being green should be a matter of principle and not a way to achieve premium pricing – it should be demonstrated throughout the whole value chain, not just as a statement or color on the packaging.’

Companies need to demonstrate a real commitment to sustainability, in global terms and as it affects the local environment in Brazil; Jesus Caldeiro says: ‘Messages with local content relate more to the Brazilian consumer. Deforestation, protection of some species, decontamination of water and recycling are hot topics that are being leveraged by local brands. Global brands should give a local twist to their global campaigns.’

For companies operating in one of the world’s fastest growing consumer markets, making a genuine effort at sustainable business practices could be not just good for the environment – it could also help to grow the bottom line.

 

For more about green consumers in the auto industry - covering Brazil and a host of other nations - check out In:fact from July 2009: Is ‘green’ set to drive the car industry?

 

 

 

 

 

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