Good advice on products, market and environment, Danish Environmental Protection Agency

New paths to competitive advantage

Good advice on products, market and environment

This publication focuses on enterprises that have experience with developing, producing and selling cleaner products.

Some of these enterprises have prepared green accounts, implemented environmental management or have had their products ecolabelled.

There is no reason why enterprises that are about to strengthen their environmental work cannot start in a small way. They can begin by setting visible and realistic goals in specific areas. This provides experience upon which they can build, and time will then show how far the enterprise wants to go.

The important thing is thus to get started!

At Skanska Denmark, one of the enterprises mentioned in this publication, they say that environmental work is rather like eating an elephant - one has to do it in small bites. One can add that it is a good idea to investigate what is on the menu before one starts - and that it is not even sure that one has to eat the whole elephant.

Enterprises may want to strengthen their environmental work for many different reasons: For example, to save resources (and hence money), to save on environmental taxes, to meet present and future demands by the authorities, in order to avoid expensive insurance, out of consideration for their staff and the working environment, and to raise capital. And then there is the theme of this publication: The market, the customers and the company image.

The topic is relevant for all enterprises - also small and medium-size enterprises. Thus irrespective of the size and branch, it is always sensible to evaluate what role the enterprise is to play on the market for environment friendly products.

For use in this publication, a number of tips have been drawn up focusing on the market and environmental performance. Forty enterprises have been interviewed, and it is their own experiences with the market and environmental performance that are passed on here in a concise and concentrated form.

10 tips about the market and environmental performance

Concerted efforts on the environmental front should be viewed as a longterm investment in company and product image - and in a number of cases provide enterprises with a concrete competitive advantage.
Documentation of the enterprise's environmental performance signals trustworthiness and responsibility to consumers, procurers, the public, etc.
Ecolabels and other environmental information facilitate communication with consumers and in some contexts increase sales.
Environmental management and green accounts can be used in marketing aimed at professional customers, where they are important tools.
Be aware that documented efforts on the environmental front are increasingly being demanded in the product chain on the national and especially international markets.
Enter therefore into an open dialogue and cooperation with suppliers and professional customers. By exchanging experiences and systematized information, you can together find environmentally sound solutions for the whole product chain. This gives a strong market position.
Environment-friendly solutions may entail immediate additional costs for customers. Wherever possible, the enterprise should therefore focus attention on factors such as quality, durability, total costs and lifetime costs.
Exploit your environmental work actively in marketing and in external and internal communication. Be creative and tell stories about the products and the enterprise - remember, consumers do not necessarily want to hear about the whole environmental management system.
If the enterprise's market is expected to demand environment-friendly products in 2-3 years, it is a good idea to get started on environmental work.
Be aware that present customers may already expect that the enterprise's products are of a high environmental standard. Thus keep at the forefront of development!