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harvard business review • november 2010 page 2 Don’t let your competitors control what “sustainable” means in your industry. Winning in the Green Frenzy by Gregory Unruh and Richard Ettenson Right now somebody, somewhere, is defining what sustainability means for your industry, business, and products. Almost everywhere you look—textiles, communications, agricul- ture, autos, high tech—green competition is shifting from a race to launch ecofriendly products to a battle over what constitutes a green product in the first place. The definition can vary from one industry, business, or prod- uct class to the next. But whatever your busi- ness, if you’re not engaged in the debate and in shaping the rules, you risk being assessed against sustainability standards you can’t meet. Worse, you may be left behind by a shrewd competitor that has strategically posi- tioned itself as a certified paragon of the new green ideal. Producing sustainability standards is a multi- player melee we call the green frenzy, because it is like a feeding frenzy in the wild—a tooth- and-claw competition among a growing pack of stakeholders including environmental activ- ists, think tanks, bloggers, industry associa- tions, consultants, and your rivals, all clamor- ing to establish and impose their own green standards. In the coffee industry, for example, more than a dozen standards currently compete, af- fecting everything from pesticide use to work- ers’ housing to bird friendliness. (Just one of these, the Rainforest Alliance sustainable agri- culture certification for coffee production, has some 100 criteria.) Each of the various stan- dards has a constituency working to define the benchmarks for “sustainable coffee.” Some are backed by nonprofits such as the Audubon So- ciety and TransFair, others by companies such as Starbucks and Nestlé. How should companies confront the green frenzy? As part of our research on green-prod- uct strategy (see “Growing Green,” HBR June 2010), we’ve developed a framework based on in-depth case studies and interviews with lead- ers in sustainability stakeholder groups. As we explain below, how you engage depends on your company’s capabilities, the competitive landscape, and, most important, the degree of sustainability standardization in your industry. COPYRIGHT © 2010 HARVARD BUSINESS SCHOOL PUBLISHING CORPORATION. ALL RIGHTS RESERVED.PDF Image | Winning in the Green Frenzy
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