Until Four Leaf, eco-labels were product based with limited uptake by suppliers due to the high cost of the necessary lifecycle analyses. Our eco-label is retail based and has been developed to meet a real consumer driven need in the marketplace, being the ability to easily compare the environmental friendliness of all competitive products and services. Research clearly indicates that consumers want to be empowered to make informed decisions across all product and service categories and support items which reduce their ecological footprint.
Innovative retailers who introduce our eco-label will drive a change in market forces towards greener products/services and their suppliers. They also exhibit their commitment to environmental sustainability and can obtain significant competitive advantage. In our worst case scenario model we assume that only those willing to pay extra for Greenpower will switch to a Four Leaf Eco-Label retailer. For the retail grocery industry this translates to over A$ 9.5 billion in Australian sales and £ 1.1 billion for the UK.
Implementation of the eco-label will provide additional incentive for suppliers to adopt environmentally friendly practices in their operations as they seek to attract more market share.
Our model is based on driving change through consumer behaviour. Research has clearly indicated that, within a 10% pricing differential, consumers WANT to buy environmentally friendly items. A Four Leaf retailer will gain additional market share through attracting this market - whilst suppliers will ultimately decrease their footprint...or their prices...to remain attractive to consumers. That environmental consciousness by consumers notably reduces with a significant differential in price is also good news for retailers as it safeguards their valuable home brand sales.
Right now, retailers have one major decision with respect to environmental consciousness.....the choice to lead or lag.
Why Now?
There is undisputable research that consumers want to be empowered to make decisions that help the environment. In the UK, environmentally friendly expenditure increased by 5% during 2009...in a recession!!
Most suppliers recognise that they will be forced to quantify their environmental impacts in the medium to long term and would welcome a low cost avenue of achieving this that may potentially avoid tighter government regulation.
As for the environment? What legacy will YOU leave future generations? Currently a window of opportunity exists to change our society from one based on mass production and consumption to that of sustainability and recycling. Will future generations of your family be proud of the actions you took...including your business legacy?
The extent of environmental deterioration is a hotly debated issue, but there is little doubt about:-
Depletion of resources: the crises of the here and now will pale besides the ones to come if you layer on top of food and fuel, the climate and looming natural resource scarcity crises on a planet of 6 billion, rising to over nine billion by 2050. Achim Steiner - UNEP Executive Director
Energy Crisis: The world is currently on an unsustainable energy path. United Nations Economic Commission for Europe2
Water Crisis: it is clear that urgent action is needed if we are to avoid a global water crisis. UN Economic Scientific and Cultural Organisation3
Impacts of industrialisation:continued GHG emissions at or above current rates would cause further warming and induce many changes in the global climate system during the 21st century that would very likely be larger than those observed during the 20th century. UN Intergovernmental Panel on Climate Change4
Detailed information about how these four issues are impacting on daily life is available here.
To date, the implementation of environmentally sound practices has been undertaken by a small number of proactive companies seeking competitive advantage through appealing to a niche market. Broad application of such practices has been limited by the financial cost involved with seemingly little economic return. Four Leaf will change this with the ability to mass classify products and provide consumers with the opportunity to support manufacturers and their products with a greener approach to business.
1. Achim Steiner, 2009. Speech at meeting of OECD Council. Paris. June 24, 2009. UN News Centre. 2. United Nations Economic Commission for Europe. 2006. Government Intervention now could alter world’s unsustainable energy path.(link) 3. UNESCO, 2009. Water in a Changing World, UN World Water Assessment Programme. 2009 4. Stott, P. 2007. Causes of past climate change and projections of future changes in climate. United Nations Intergovernmental Panel on Climate Change. Bonn Briefing, May 2007.