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SALT LAKE CITY — Going green has environmental benefits, but that is not what is driving most businesses' efforts to green up, says economist Bill Roth.
Roth, also a green business coach and author of "The Secret Green Sauce," believes green or sustainable business initiatives are about cutting costs, including energy costs, and reducing waste as well as gaining a better understanding of customer interests in a changing marketplace. He conducted a daylong "Green Builds Business" workshop Wednesday sponsored by the U.S. Hispanic Chamber of Commerce Foundation.
Consumers are now coming into your businesses expecting to find what they call green products.
–Bill Roth
"Millennials" born in the 1980s have money to spend and will buy clothing made from recycled bamboo because they think it's cool; moms, as caregivers, are interested in earth-friendly products that help them protect the health of the ones they love; "eco dads" want to create a legacy of learning for their children, Roth said.
Coolness, love and health are much more effective marketing points than saving polar bears, he said. While polar bears may benefit from green, sustainable business practices, "If you want to grow revenues, you don't talk about that."
A business that can demonstrate its greenness wins new customers and bolsters the enthusiasm of workforce and business associates at a time when the population as a whole is increasingly green.
On the consumer side, environmentally conscious "super greens," as Roth calls them, are willing to pay higher costs for products that are healthier, more sustainable or energy efficient — kind of like the early adopters who pay the highest prices for the newest electronics. But high-volume business success is accomplished when greener products achieve a price comparable to more familiar products that aren't as green, he said. "They don't have to be the lowest cost — just competitive."
Roth forecasts sustainable goods and services will grow to see $10 trillion in annual revenues globally by 2017.
All other things being equal, today's consumer will be swayed in favor of a business or product that offers visible evidence of its efforts to green up. "Consumers are now coming into your businesses expecting to find what they call green products," he said.
Businesses will also benefit by finding out what special interests and charities their customers align with and reaching out to those interests, because customers want both value and values.
"Give to charity," he suggested. "Which one? The ones your customers believe in."
Email: sfidel@ksl.com
