Earthenterprise Tool Kit - International Institute for Sustainable ...

EarthEnterprise Tool Kit
Over the last decade, subtle but momentous changes have occurred in the
values and purchasing behaviour of consumers, c o r p o ra t i o n s , a n d
governments. This subtlety, which is cascading into momentous change,
inspires the term “avalanche markets”. Like an avalanche, the adoption of
environmental and social criteria in purchasing decisions will dramatically
change the landscape.
In the past 20 years, the environment has become a priority concern for people,
at home and at work. The concept of sustainable development makes it clear
that environmental implications must be dealt with whenever economic
decisions are made. Learning how to do this — not just to adopt “green
washing” — takes time. After a few false starts, however, the avalanche is
gathering speed in consumer buying, corporate and government procurement
policies, and, indeed, in the emergence of the “green industry”sector.
These three markets — green consumers, green procurement, and green
industries — are the focus of this section of the EarthEnterprise Tool Kit. To
help entrepreneurs increase their ability to gain access to and serve avalanche
markets, it highlights strategic business issues and offers tools for coping with
them. Because “green”terminology is pervasive, we use it as the starting point.
Benefiting fully from the power and potential of these markets, however, means
moving beyond green add-ons and making a comprehensive commitment to
sustainable development.
To be successful in the green consumer market, today’s entrepreneur needs to
know what makes it tick: why it continued to grow in the midst of an economic
recession. The main barrier to growth in this market is credibility: consumers
are cynical about product claims and opportunistic pricing. As the dimensions
of the avalanche market become obvious, green, pace-setting entrepreneurs
will face competition from mainstream companies and competitive strategies
will be key to survival.
As corporations, governments, and other institutions seek to reduce their
impact on the planet, huge new markets are opening up.There are a number of
ways for an entrepreneur to react: by identifying and responding to green
procurement policies with existing products and services; by forming new
alliances among suppliers and customers to jointly address new needs; and, for
the proactive, by consulting with key policy decision makers and initiating
business relationships that help create new markets. (See pages 26-35 for a
description of some exciting opportunities in green procurement, as well as
information about the tools and contacts for gaining access to them.)
As the commitment to sustainable development takes hold, many nations are
developing and enforcing stricter environmental regulations. In turn, global
markets have grown significantly as both industry and governments seek new
AVALANCHE MARKETS
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