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(China Daily/Agencies)
Updated: 2009-05-02 09:36

Eco-friendly, sustainable and ethical are words that have become part of the permanent lexicon of manufacturers and retailers in recent years.

From the smallest 500-square-foot shop to the mass chain with 1,000-plus stores, companies are looking for ways to lower their carbon footprints, conserve energy, identify ethical sourcing partners and educate consumers about the benefits of saving the planet, and consumers themselves are becoming more interested in the topic as well. According to a survey by WSL Strategic Retail, 55 percent of consumers buy organic products, up from 49 percent a year ago.

Many companies are making investments that will lead to cost-saving efficiencies. A healthy regard for the environment has become part of many firms' identities, from Patagonia to Wal-Mart. For others, such as the Gap, eco-sensitive products and ethical sourcing is part of the culture, something that employees have come to expect and consumers increasingly demand.

Sylvie Benard, director of environment at Louis Vuitton Moet Hennessy, says the idea of environmental initiatives being more expensive than traditional methods is not necessarily true, adding that maintaining environmental efforts in the downturn makes economic sense. "The message that the environment costs a lot has passed," she says. "It has really evolved."

Benard notes that LVMH will maintain its investments this year in everything from boutiques that consume less energy to carbon audits to water measurement. These investments will ultimately lead to cost-savings for the group.

To companies wondering whether they can maintain their commitment to the environment in the midst of an economic crisis, she says: "We must not stop everything because the financial situation isn't as good as we would hope. These are resources that will one day disappear. They are irreplaceable. No matter what the financial situation or the social situation, we have to continue to tackle that."

A stricter regulatory landscape, such as Europe's Registration, Evaluation, Authorization and Restriction of Chemicals, which came into force last year, is prompting some companies to jump on the green bandwagon. Businesses must respond to new obligations, economic crisis or not. Some government policies see green as the route to recovery. The French Ministry of Ecology is working on developing a label for eco-friendly products by 2011 and possibly lowering the value added tax on products deemed eco-friendly.

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