Why Green Equals Profit During the Credit Crunch

When it comes to all things environmental, size certainly matters. As the CEO of a data management company, I give thanks daily not to have the headache of coming to terms with the Carbon Reduction Commitment (CRC), the UK's new mandatory carbon trading scheme targeting large businesses and public sector organizations.

Kudos to those who are grappling with the ins and outs of carbon trading, however. We’re all counting on you if ‘Eco-Team GB’ is to save at least four mega-tonnes of carbon dioxide by 2020. With industry of all kinds contributing an estimated 55 per cent of the 500 million tonnes of carbon dioxide the UK currently produces annually, I believe it is incumbent on all of us – business owners big, medium and small alike - to explore the best ways of transitioning to an energy-efficient, low carbon economy.

At a time when many of us are striving to decrease our adverse environmental impacts, if we’re not careful there can often be a disconnect between laudable aspiration (ie. be greener) and finding the practical, sustainable, cost-effective means by which this can be achieved. Add the current ‘credit crunch’ into the equation and anyone in business could be forgiven for succumbing to the siren song of temptation by swapping ‘carbon maturity’ for that one-off deal or balance sheet ‘quick fix’ which could alleviate pressure on over-stretched budgets, the manifold effects of declining consumer confidence and/or the need to maintain ROI.
Continuing to fight the good, green fight has arguably never been harder. Or, conversely, more important. Whilst I don’t pretend to be a font of all green knowledge, I hope the following might provide some handy hints for fellow SME owners likewise trying to be socially and environmentally responsible during what are the toughest market conditions seen for almost two decades.

Let’s begin with some general office housekeeping tips – albeit with a twist. No/low-cost green initiatives that SME’s might like to consider implementing include:
· Behavioural measures (encouraging staff to turn lights and equipment off when not in use; adjusting heating controls; organising car pools; recycling etc);
· Structural upgrades (installing better insulation, double glazing and the like);
· Using more energy-efficient technologies (long-life bulbs, electronic equipment and boilers; switching to green energy providers, as examples).

‘All fine in theory,’ I hear you say. Well, the key to success lies, I believe, in the implementation of these energy-saving measures. Or more precisely, providing sufficient ownership and incentive. I’m proud of the fact that my employees, for example, have shown leadership on the ‘greening’ of our offices by devising and implementing their own guidelines and procedures by which our energy- and supply chain efficiencies could be maximised. What’s more, they’re enjoying the process because not only are very real savings being reported monthly (benefiting our bottom line and the environment alike), but added incentives in the form of small bonuses, additional leave time, community service and training opportunities are rewarding their ongoing commitment.

Good environmental practices should be good business, after all. Changes in the wider regulatory environment aren’t limited to the aforementioned CRC, either. For SME owners and marketers, in particular, an array of data handling issues are looming large on the horizon which have considerable implications for both the environment as well as how we interact with our customers. The new Consumer Protection from Unfair Trading Regulations 2008 (CPUT), for example, promise fines of up to £5,000 or two years in prison for companies who ‘continue to make persistent and unwanted solicitations by telephone, fax, email or other remote media except in circumstances and to the extent justified to enforce a contractual obligation’, while Information Commissioner Richard Thomas and Wellcome Trust director Dr Mark Walport’s recent Data Sharing Report contains far-reaching recommendations for where, how and when personal data is collected, stored and exchanged by UK organisations.

The connection between customer data and the environment may not seem apparent at first glance, but if a database indeed powers your company’s marketing and/or brand management activities, keeping it clean and up-to-date is not only important, it’s now a legal necessity. So in order to ensure better targeted datasets, make substantial cuts in overall mail volumes (both direct and online), save money and – last but not least – enjoy considerable environmental benefits by avoiding the unnecessary production of DM and promotional items, you might like to try my suggested data management ‘Top Five’ :

· read up on your responsibilities by familiarising yourself with the above-referenced regulations (the Direct Marketing Association’s Code of Practice is also a good place to start);
· regularly clean your databases of deceaseds, gone-aways (people who have moved house or job) as well as Mail Preference Service (MPS) and Telephone Preference Service (TPS) registrants using commercially available suppression files;
· ensure transparency by publishing your company’s policy on how you intend sharing data with third parties for marketing purposes (in all probability, this will also soon be a legal requirement);
· integrate your multi-channel marcoms (research undertaken by B2B Marketing and Royal Mail has demonstrated that campaigns with strong, integrated brand activity deliver response rates of 60 per cent plus above the norm – not to mention save resources); and
· unlike some Government agencies, don’t leave a laptop containing sensitive information on a train or lose data discs in the post. The Information Commissioner’s Office is threatening to impose substantial fines for every person affected by data losses, so any breach could prove to be very expensive indeed.

At a time when outdated and unwanted B2C and B2B marketing materials are cumulatively consuming upwards of 4.2 million trees and costing UK companies an estimated £50 million per annum, by implementing any/all of the above, you’ll succeed in not only enhancing your company’s green credentials but also increase client loyalty/retention rates and profitability. What’s more, you will be able to plan beyond the current downturn knowing that your marketing missives haven’t suffered the worst DM death possible: ending their short lives as expensive and environmentally damaging landfill.

Like that hair care advertisement of yore once promised: It won’t happen overnight, but it will happen. We have the technology and know-how, folks. What we need now is the management will and stamina to see out the bad times and make being eco-friendly and ISO 14001-compliant (we’re still striving for this!) synonymous with profitable – to the benefit of SME’s, consumers and the environment alike.