There's a growing school of thought that unfettered information about the environmental impacts of our world will smoke out the bad guys and help the good guys win.
I wish it were that simple.
I've just finished reading Ecological Intelligence, the new book by Daniel Goleman, whose 1997 bestseller, "Emotional Intelligence," helped broaden our thinking about what it means to be "smart." (It's not the IQ test, stupid.) Now, he's turned his sights on the environment -- specifically, the quantity and quality of information available about the environmental impacts of the things we buy. His highly readable book describes how the lack of good information belies the hidden impacts of our purchases -- the way they are sourced, manufactured, used and disposed of when they are no longer of use.
Goleman calls for "radical transparency," a term I've been hearing increasingly lately, one of those coinages that sneaks up on you en route to becoming a full-fledged meme. Goleman didn't invent the term -- it's been around for some time -- but it is a central theme of his book: the virtuous circle that develops when companies, voluntarily or not, lift the veil of secrecy to reveal the ingredients and sources of their products, enabling consumers to make smarter choices, thereby moving markets toward less-harmful products. That cycle, argues Goleman, can occur only when we fully exploit the full arsenal of technologies and human networks:
Psychologists conventionally view intelligence as residing within an individual. But the ecological abilities we need in order to survive today must be a collective intelligence, one that we learn and master as a species, and that resides in a distributed fashion among far-flung networks of people. The challenges we face are too varied, too subtle, and too complicated to be understood and overcome by a single person: their recognition and solution require intense efforts by a vastly diverse range of experts, businesspeople, activists — by all of us.
I can't argue with the premise, but my 20 years of watching the green marketplace leaves me, well, unsold.
Like Goleman, I am a steadfast believer in the power of transparency: The more we know, the smarter decisions we can make. But I'm more skeptical than Goleman about how willing and able consumers are to actually harness such information to make changes in the way they shop and live. At least, not at the scale and speed needed to transform the marketplace toward one that embraces sustainability, in all its many forms.
Here's what I see as the central flaw in Goleman's case: While he is correct in stating that the complexity and sheer number of products and manufacturing processes requires the collective intelligence of the global village, actual shopping choices are still made at the individual level. And it's here that saving the Earth often takes a backseat to simply saving the day.
It's been almost exactly 20 years since the first-ever survey of Americans' attitudes toward making green purchases, by an outfit called the Michael Peters Group, told us that a whopping 89 percent of shoppers said that they were concerned about the environmental impact of the products they purchased. And nearly as many -- 78 percent -- said that they were willing to pay as much as 5 percent more for a product packaged with recyclable or biodegradable materials compared with its conventional counterpart.
Since that August 1989 survey, dozens of market researchers have unearthed similarly tantalizing findings describing consumers' interest in aligning their purchases with their environmental concerns. But behind those impressive numbers are some conditionals that aren't always picked up. They sound something like this: "Yes, I'd happily pick the greener product -- IF it comes from a brand I know and trust, IF I can buy it where I currently shop, IF it is at least as good as the product I'm currently buying, IF it doesn't require me to change habits, IF it doesn't cost more, and" -- this last one is significant -- "IF it is somehow better -- for example, that it lasts longer, performs more effectively, saves money, is healthier for my family, or will be perceived by others as cool."
That's a pretty high bar to clear. The result is that while the research data haven't changed much over the past 20 years -- neither have most consumers' purchases.


















































































































Got hit with the anonymous bug, too
Last comment was from marketing consultant and author Shel Horowitz, www.shelhorowitz.com
Antoher bug: Your Captcha is inordinately difficult.
Great discussion! I don't
Great discussion!
I don't see you really at odds. Joel says the eco-friendly products have to show a clear advantage--but Couldn't that advantage be something idealistic like lower carbon footprint, especially if it's combined with, say, a health benefit from avoiding toxic chemicals?
Daniel puts a lot of faith in social media, particularly for the generation coming behind ours. And he's right. Social proof is in the process of leapfrogging in importance.
I find it interesting that Daniel looks to the Internet, considering he and I both live in the Northampton, MA area, which has very strong offline culture in favor of eco-friendly purchases. Offline cultures, too, can provide social proof.
In the research I've done for my books, Principled Profit: Marketing That Puts People First, and my forthcoming eighth book, Guerrilla Marketing Goes Green: Winning Strategies to Improve Your Profits and Your Planet (co-authored with Jay Conrad Levinson), I found that consumers will indeed choose the better choice, the choice more in line with their values, all things being equal. They will even pay more for it. The challenge then becomes to make Green products as good or better than the choices that don't align with values, and then choosing the better one becomes a no-brainer. Examples abound, from organic food and bodycare to hybrid cars. The danger, I think, is if people find out they've been greenwashed (hybrids being an example), the new habits may not stick.
Reliable?
"It's been almost exactly 20 years since the first-ever survey of Americans' attitudes toward making green purchases, by an outfit called the Michael Peters Group, told us that a whopping 89 percent of shoppers said that they were concerned about the environmental impact of the products they purchased." - how reliable is this survey? Generally they can choose a target survey group which can radically alter the outcome.
In defense of Radical Secrecy
There’s a lot to be said for Radical Secrecy – just look how far it has got Apple! But even Apple has been persuaded to lift its corporate skirt by intelligent watchdog action from Greenpeace, through its green electronics guide.
The last thing we need is radical transparency because we simply can’t understand the information, as others have argued well above. What we do need is a back to basics approach where each link in the supply chain is held responsible for the health of consumers and the planet. We have the mechanisms to make this work: the law, regulation, education and watchdogs.
Instead of trying to persuade companies to publish data that can only be understood by someone with two brains, let’s work harder to improve the existing mechanisms, especially the watchdogs. Unfortunately, the teeth of most of our watchdogs have been blunted by a rich diet of “partnership”.
Transparency = eschew obfuscation (speak plainly w/relevance)
Agree companies should be more transparent but they must use clear, everyday language and address issues most relevant to their business and stakeholders.
The more companies are communicating, the more consumer DIStrust and confusion are growing. Example: "As Eco-Seals Proliferate, So Do Doubts"
http://online.wsj.com/article/SB123862823846680371.html?mod=dist_smartbrief
And companies must tell the whole truth, not just part of it or simply share anecdotes that do not reflect the business overall. Follow FTC Green guides and avoid the 7 sins of Greenwash, etc.
Ideally, standards for transparency should be industry-wide to ensure fairness among companies and deliver on consumer needs. Carbon Disclose Project targets only public companies...leaving private co's off the hook. Many assessments look only at top 100, 500...same effect.
CSR reports are getting longer and few consumers, let alone professionals, can digest all the information therein....much of it non-distinctive or nothing above status quo/regulations (e.g., ethics codes per Sarbanes Oxley, following environmental regs and labor/wage laws, producing safe food, etc). Materiality is key. Starbucks' CSR report does this very well.
Consumer certainly have a role to play - we must take the initiative to educate ourselves. The rising string of food recalls alone would seem to drive consumers to learn more about where there food comes from, and demand more transparency, regulation and improvement. Yet, consumer initiative seems low....
Melissa Schweisguth
twitter.com/fullcircsustain
thought
I have not read the book and if the design question focused on creating a regenerative, I can't see how radical transparency is going to have much of an impact. From a systems standpoint you need to find the acupuncture points in the system to create the needed shift.
p.s. I still think we need a revolution in design...
Gregor Barnum, Seventh Generation
Radical Transparency
Interesting discussion. A couple of points worth keeping in mind:
1) Information has a cost! For organizations to become "radically transparent" they will have to spend time and money to establish systems for the regular collection and analysis of relevant data. Moreover, beyond time and money, there is a cost in terms of business relationships. Any serious effort to convey the attributes of a product, service, company, whatever will require the participation of an extensive network of suppliers and vendors upstream and customers, distributors, etc. downstream. I can say from personal experience that requesting information across a typical network imposes significant burdens. Someone, somewhere has to bear the costs all along the way to create data and to do it again and again to maintain currency of accurate information.
2) Like others, I think that education has to go with information, although it is not the be all and end all for making information meaningful. I want to emphasize that education, though, is not a one-time deal. It requires a commitment to a constant effort because "new" consumers come into the market, information and values change over time, and people simply forget.
As with Joel, I have a certain amount of skepticism about the "success" of radical transparency in transforming the marketplace. More information is not necessarily better. It is hugely difficult to simultaneously engage producers to create and maintain high quality information across all products and all issues and consumers to incorporate all that information in their purchasing decisions. I'm more a fan of trying to figure out what's the minimum amount of information necessary for both business and consumers to make "good" decisions.
Mike Brown
Brown and Wilmanns Environmental, LLC
Transparency - Is it the Leverage Point?
I appreciate the debate as well. My question is - what is the key leverage point for change? Joel's question about how transparency applies to green consumerism is a good one, and being in the training field, I have a strong belief that education in combination with transparency will over time affect our consumer habits.
However, is the leverage point for change 1) company practices, 2) government regulation (possibly around transparency), or 3) individual choices by consumers? Or something else?
I don't know the answer to the question, but I must cite here a book that we have recommended in our leadership classes called "Influencer, the Power to Change Anything." In it, Kerry Patterson writes that discovering small behaviors are key to change - from painting murals to stop grafitti, to single-stream cans for recycling to increase recycling. These small shifts allow radical differences in behavior on the part of many to occur.
So, is radical transparency on the part of companies' the key behavior - the leverage point? I don't know, but I can only imagine that even if it is just those "mavens and early adopters" of the Tipping Point who are paying attention, it could be enough to seriously change how consumers make those individual choices.
Thanks for a provocative article, Joel, and I look forward to reading the book, Dr. Goleman.
Aren't we having 2 separate discussions?
Whereas the focus of the original blog was whether or not full transparency will change buying behavior to the "greener side of things", Joel added the component whether or not consumers would actually buy green products, even if they were a bit more expensive, or not available at the main supermarket they go to, etc.
With regards to transparency, I am certain the "average consumer" will neither have the time nor interest to read all details of what's in the products they buy, how they were processed, where the ingredients came from etc. I'd suggest developing a rating system, which could be a combination of grades (1 to 6) or colors showing how "good" this product is in categories like carbon footprint, water usage, amount of waste created, end of life design etc.
And provide a link to all detail for those who want to dig deeper!
With regards to the purchasing decisions, I believe consumers will only switch towards truly green product once the environmental effect of the products has been quantified and calculated into the cost of the product.
Thoughts?
Wolf Liebchen
Owner, Green Wolf SCS
El Sobrante, CA
The Meaning of Transparency
A couple of thoughts:
1. Agree with Jim, data alone is not enough to make good decisions. You need context, science, judgment and time to digest and understand it all. More likely, you'll rely on others and hope they are doing the work for you - the 3rd party certifiers or your favorite network of trusted parties. The trouble is, no one really completely understands how the complex world ecosystem works. We know bits and pieces based on today's theories and analytical capabilities. We are especially weak at knowing what happens when "green" stuff scales up to meet global needs (e.g., corn-based ethanol).
2. Relying on twitters from assorted opinion-makers to make green decisions is scary. The herd follows celebrity and the best PR wins - with wild swings in what is considered the right thing to do this minute. I'm biased toward the scientific method - informed experts assessing data, trying to prove each other wrong and eventually drawing conclusions in informed public forums. Afterword, real world pragmatists try to figure out how to apply the findings. It's not quick, but it's the best we have.
3. The data you have is outdated the second you collect it. New data is appearing everywhere all the time. We can't collect it all and we can't absorb and analyze it all instantaneously. "Transparency" as such is a meaningless objective. At best, we can try to figure out when we know "enough" to make a temporary decision until we learn more.
4.Transparency vs property rights. Right now our system of reward for investing in product development is allowing proprietary information to be held confidential and controlled by the developer. Take that away by forcing companies to reveal to everyone what their products are made of, how they make them and to whom they market them will allow their competitors to get a free ride. It will stop innovation. And paychecks. We need a way to encourage people to invent better products and processes while ensuring that product stewardship is ongoing. I believe it is possible to characterize risk information without revealing business confidential information - - but it's going to take a lot of stakeholder work to make that happen. (To those who think patents are the answer, forgetaboutit - they are a joke in this flat world.)
6. The discussions we are having are good - we are opening our eyes and minds to more carefully consider life cycle and whole system (eco- and social) impacts of the things we do. But I remain skeptical that there is any one solution or approach "answer."
Georjean Adams, EHS Strategies, Inc.
Radical transparency
I think radical transparency cannot be achieved. First, business would have to embrace radical disclosure, not a turnabout we're likely to see. But let's say business tells all. The consumer, that mythical average person, almost certainly will suffer severe information overload and radical haplessness. So a rating agency arises somehow to simplify consuming and every product gets a number from 1 to 100, with higher numbers indicating...what? Smaller carbon footprint? Lower toxicity? How long would this list be? Who would write it? Next, a call for a second round of transparency. And so on. Instead, how about the example of Inteface?
I'm constantly amazed
I'm constantly amazed by how smart people can be... if given information, enough time to discover that information and embrace the lesson for themselves.
My in-laws always chuckled at my left-leaning, recycling ways. So, I've been amazed with time and exposure to more information, how some of the in-laws are slowly migrating towards environmentally sound and healthier behaviors. It took many different sources of information for them to embrace the change for themselves.
It's one small example. But my point is that we do ourselves a great disservice if we assume that consumers are too dumb to sift through the information.
Radical Transparency
Surely the parallel here is nutritional information on food? It has taken some years for it to start to drive consumer behavior (and in many cases it still doesn't). Something else is clearly also needed to get people to buy the healthy choice, even when they can afford it.
That does not mean that you should not put information on the product, however. It has to be a start point - a necessary but not a sufficient condition to get people to change. I don't think radical transparency will be a complete solution because in too many purchasing situations, people don't want to have to think. But it is a start.
Time Vs. Transparency
People want to do the right thing. But, we are talking about America where the right thing and "what I want" are not always alligned. We want it all. I found it validating to know that we don't only want it to be "green" but we want to know it does everything and more, otherwise we have a great excuse to just keep doing what we do. There is a movement, but in my estimatiion, it is just a bit more than a fringe. Time is part of the problem. We don't have a lot of it. Change not only takes having the facts, it takes digesting them to create a different action. Information on its own is just information. Time is what is needed to process.
I am wondering and I am hoping people will comment about the best way to get radical change. I believe that cost is the ultimate decision maker. The fact is that what we pay does not really relate directly to cost. If the true carbon cost was part of the product cost, I believe then and only then would real decision making start to be alligned with green decision making. So, my question is whether the converstaion about carbon trading and capping can be worked such that this is what happens. I am just now looking into the Environmental Product Declarations and if these can be related to ultimate carbon output and cost, then it seems that it may be a way to go forward. I am really not sure, but this type of transparency is what I believe is necessary. I don't think people have the time, education, or interest to know everything about they purchase. And to be honest, being in the manufacturing side of things, it really is not good for business. If we let everyone know every detail of what we put in our products and how we process, revealing it takes away the competitive adavantage. We just have to feel good that ther is some standard out there which can give us a final assessment we can trust.
Rosanna.cavanaugh@locknpop.com
Agreed (cont)
I think the thing that bothers me the most is that I see that, as a society, that we are capable of handling a mess of data efficiently and the how we handle that data is going to be in our pockets in the future.
This kind of product being produced at MIT is an example of the competitive market will be like in the future where the average citizen has access to commercialized science, and they will be able to make decisions based upon that science.
To connect this to my previous post, the data going into an LCA is overwhelming. (Unfortunately I am inexperienced at this---I want the experience) The more eyeballs examining a process the higher validity the process has in being "green". Once the LCA is complete, it serves as a basis of product improvement and market leadership when products like this hit the shelves and catalogs of stores. It is no longer a question of if it is going to happen. It is a matter of when.
Please feel free to respond to this. I am just diving right into a conversation clueless.
Aaron
Transparency Matters
Anything related to green footprints in consumables and non-perishable things is going to catch the attention for a class that is much educated on green benefits and sya more transparency on adopting nature ingredients and so on.
We can metaphorize it with restraunt industry. You are able to see the transparent kitchen and you find clean staff, clean area and clean food in prepareation. So you aer confident and enjoy your hygenic food. It was a great revolution as we all know.
Thanks for such a discussion as more read it more they are concerned about green anyways.
radical transparency isn't enough...
Joel, it's an interesting discussion between your blog and Daniel's response. As an entrepreneurial business (ethics led & ecologically commited) we've changed an existing product package (bottled water) to introduce one that is fundamentally better (Aquapax - a pure mineral water in a paper carton 'bottle') based on the ecological impact and the protection the pack offers for the contents within.
Fact is it's a difficult sell to consumers based on a 'package change' which isn't in the consumers mind set and without having a massive budget to try and overcome the status quo.
Our most telling challenge is the resistence of the larger retail buyers to put something on their shelves which they haven't already seen elsewhere on another shelf.
To my mind, the governments of the world need to back up their eco-rhetoric and incentivise lower carbon technologies across the board based on tax breaks which will enable 'greener products' to reduce their selling prices to the consumer. This action will help overcome buyer resistance, encourage trial, lead to greater market awareness and ultimately industry changes which benefit the wider environment.
Keep up the good work.
Neil T (waterguy)
Agreed
Let's face it. Times need to change. Secrecy has undermined our ability to be sustainable and ultimately erodes corporate-community trust. I cannot trust companies like Monsanto because of the secrets they kept regarding GMO products, even though I understand their role in developing a sustainable world future. I say this knowing that there are consequences of releasing information, but what are the consequences if business is performed as normal? Readers of this blog should know automatically.
The radical change in being open is that it can tap into the power of trained experts, i.e. college students, who can provide consulting services free to any organization who is willing to undertake this form of open sourcing. For example, traditional LCAs have questionable levels of accuracy and take long periods of time to perform. Questions exist in how does the expert define the boundaries of a system for LCA? How accurate is that data? In all practicality, the scoping of a system may never reflect the full interaction of a product across its life cycle. What happens when data is released to the public for experts to examine?
The students in this one example provide services of education, organizational operational improvement, and increased the goodwill between to supposedly adversarial groups. In this one scenario, it makes business sense. After the examination, secrecy can be reestablished to protect trade secrets.
All Change is local, and takes literacy plus a reason to care
Jen – I couldn’t agree more that its our social webs that are the cauldron for – and will accelerate the consequences of -- our individual decisions. One clarification – GoodGuide does enter this web in a powerful way – it lets you send an email blast to all your friends about what you’ve learned about products.
Jim – I admire your pioneering work in moving transparency into the sustainability arena, and couldn’t agree more about the need for education and making the stakes clear.
This has gotten me quite interested in eco-literacy, both for students and within companies. But tell me –what do you see as effective ways within companies to changing long held habits – the stake?
Dan Goleman
Ecological Intelligence
Transparency + Literacy + Stake = Change
Now I'm appropriately logged in. Sorry for the confusion.
Jim Hartzfeld
Managing Director - InterfaceRAISE LLC
Transparency + Literacy + Stake = Change
Sorry, thought the last post would append my signature.
Jim Hartzfeld
Managing Director
InterfaceRAISE, LLC
Transparency + Literacy + Stake = Change
Joel, as you know I wouldn't call myself an expert on consumer behavior, but this thread sounds a lot like what we have learned at Interface about working to change our own culture and interact with customers in the B2B sales world of carpet. Transparency is a great step in developing your own understanding of the issues and creating credibility, but is insufficient to drive change without knowledge of what to do with the information (literacy) and what benefit will it will deliver (stake).
In 1996 when Paul Hawken and I drafted Interface's first sustainability report, we sought radical transparency even creating a "centerfold" graphical layout. It created amazingly warm responses from everyone (except our internal legal counsel), but few knew what to so with it. Likewise in a factory setting when you start sharing all kinds of data with all your employees, they may have no idea what to do differently without some education (literacy) and why should they go through the thinking effort to change long held habits (stake).
Therefore, InterfaceFLOR tries to accelerate change in our industry by leading on transparency through web reporting, Environmental Product Declarations, etc., educating our customers about the impacts of their purchasing decisions and constantly describing how our approach to sustainable design delivers better (not just greener) solutions to them in terms of aesthetics, waste, appearance retention, etc.
I am a strong proponent of transparency as a key element of change, but recommend clients add education and a personal stake to the equation to really accelerate change.
Joel, Dan, let me know if you think I'm all wet.
Best,
Jim
Community-led transparency
Having read Goleman's book and having had the opportunity to challenge some of his thinking in person, I’d argue that actual shopping choices will increasingly be made at the collective level. Yes, our history and experience as consumers in a consumer-based culture has focused on the needs of the self, the needs of the family, before the needs of the community. But the potential for all of these social technologies lies not in the technology itself, but in the collective conversation we can now have at the point of purchase, and the point of use. I don’t think Good Guide even begins to scratch the surface here.
Case in point – buying a good bottle of baby sunscreen. Yes, it would be helpful to know about ingredients, toxicity levels and full disclosure life cycle impacts are of my baby’s sunscreen. But I get that information from social conversations, local parenting groups offline, online discussions boards, and the social networking platforms of today. Being able to point to a vetted data source will help our conversations be based in reality, rather than fear or myth-making, but the actual behavior shift to a better product, a product more good, is happening in these social spaces.
It is in the promise of the socialization of shopping and use behavior that we can begin to imagine how the individual, formerly selfish consumption decision becomes a collective conversation and action.
-jen van der meer