INTRODUCTION

 Green market practices

Green marketing refers to the practice of developing and advertising products
based on their real or perceived environmental sustainability. Examples of
green marketing include advertising the reduced emissions associated with a
product’s manufacturing process, or the use of post-consumer recycled
materials for a product's packaging. Some companies also may market
themselves as being environmentally conscious companies by donating a
portion of their sales proceeds to environmental initiatives, such as tree
planting.

Green marketing is one component of a broader movement toward socially

and environmentally conscious business practices. Increasingly, consumers
have come to expect companies to demonstrate their commitment to
improving their operations alongside various environmental, social, and
governance (ESG) criteria. To that end, many companies will distribute social
impact statements on an ongoing basis, in which they periodically self-report
their progress toward these goals. Typical examples of ESG-related
improvements include the reduction of carbon emissions involved in a
company’s operations, the maintenance of high labor standards both
domestically and throughout international supply chains, and philanthropic
programs designed to support the communities in which the company
operates. Although green marketing refers specifically to environmental
initiatives, these efforts are increasingly presented alongside social and
corporate governance policies as well.

When a company’s green marketing activities are not substantiated by

significant investments or operational changes, it may be criticized for false or
misleading advertising. This practice is also sometimes referred to
as greenwashing, and the fines and negative press can be tremendous. For
example, on April 8, 2022, the Federal Trade Commission (FTC) made a
public announcement that it was issuing a $5.5 million penalty via its Penalty
Offense Authority to Kohl's Inc. ($2.5 million) and Walmart, Inc. ($3 million)
due to their deceptive environmental claims about rayon products. This is the
largest civil penalty in FTC history.

There are many incentives for companies that choose to engage in green
marketing. To begin with, a companies’ perceived commitment to
environmental causes is an increasingly important factor influencing many
consumers' spending habits.

 EXAMPLES OF GREEN MARKET PRACTICES

Starbucks is often cited as a leader in green marketing practices. The company has
invested heavily in various social and environmental initiatives in recent years. For
 example, in a 2018 report, Starbucks reported that it had committed over $140
million to the development of renewable energy sources.2 The company purchases
enough renewable energy to power all of its company-operated stores throughout
North America and the United Kingdom.

Similarly, the company has made investments in social impact projects through
initiatives such as the Starbucks College Achievement Plan. Through this project,
many U.S.-based Starbucks employees who work more than 20 hours a week on
average are eligible to receive fully-paid tuition to the online undergraduate degree
program offered by Arizona State University.4 This project, as well as similar
commitments in areas related to the employment of veterans, have formed an
important part of Starbucks’ green marketing initiatives.

From an investor's point of view, these kinds of green marketing initiatives can
prove essential in building and maintaining a valuable brand, particularly for
consumer-facing companies such as Starbucks. However, some critics argue that
green marketing can exacerbate the existing advantages of larger companies at the
expense of their small or mid-sized competitors.

After all, implementing robust social or environmental programs often involves

additional overhead costs. For large companies, these costs can easily be borne and
may even form part of the company’s existing marketing budget. For smaller
companies, however, the addition of these costs may significantly impair the
profitability or viability of the business.

 Advantages of green marketing practices

1. A company can enter new markets when it brings attention to positive
environmental impact: When a business shines light on the positive impacts their
product or service brings about they have the possibility of piercing new target
markets. For example, residents that never considered the idea of using solar power
might switch to solar panels if the information is clear, concise and targets their
needs. Green marketing advantages can also include highlighting sustainable
manufacturing practices, the use of eco-friendly and organic products within the
work office, composting and recycling at work, and carpooling to go to work

2. Gain more profit from green marketing: Sustainability is a key concern for the
millennial generation. They are willing to pay more for products and services seen
as sustainable or with a positive social impact. Customers are reassured when their
products are chemical-free and made with recyclable materials that do not harm the
environment. Green marketing and awareness campaigns help customers to make
informed choices potentially contributing to environmental causes. This is a major
asset, as conscious customers pay attention to the products they purchase and use,
and therefore will become more active in voicing your product, leading to an
increase in sales.
3. Green marketing brings a competitive advantage: When you choose green
marketing, you become seen as a conscious or responsible leader in your industry.
This is true even for customers that do not prioritize environmental issues.It also
creates a wider choice of marketing points that you can promote and discuss with
your customers, which go beyond traditional strategies such as having the lowest
price, durability and style. Focus on your product’s environmental and social
benefits instead of solely marketing the price and value.

 GREEN MARKET PRACTICES ADOPTED BY COLGATE:

You recycle cans, bottles, cardboard boxes, yogurt containers, and so much more.
Yet until recently, there was no such thing as a recyclable tube of toothpaste.
Why? For starters, toothpaste tubes are traditionally made with a layer of aluminum
housed inside a sheet of plastic. To create a tube that could fit into existing
recycling programs, the metal had to go. Next, engineers had to figure out how to
convert the plastic—they focused on #2 plastic, aka high-density polyethylene
(HDPE)—into a material that would look and feel familiar. "HDPE, which is also
used to make milk jugs and Suavitel fabric softener containers, is very rigid, and we
needed to make it into a squishy, squeezable tube," says Greg Corra, Director of
Global Packaging Innovation & Sustainability. "People have been brushing their
teeth since they were 3 years old; we weren't going to teach them to squeeze a tube
in a new way. SSS" After five years of research, the innovation team figured out
how to accomplish this by using a combination of different grades of HDPE. "They
come together like plywood," says Corra. "The material is flat but squishy, and when
you chop it up you can melt it and reuse it." To dispose of the new tube, all
consumers have to do is toss it in with their regular plastics recycling. In the U.S.,
Tom's of Maine, Colgate Optic White, and Colgate Zero kids' toothpaste are already
being made with this new technology; by 2025, all of Colgate brand toothpastes
tubes will be recyclable. While we’re proud to have created this innovative
packaging, which was named as one of Time Magazine's Best Inventions of
2020, we aren’t keeping it to ourselves: the patent is now available to anyone who
wants to use it, including competitors. "We want to help make all tubes, by all
companies, recyclable," says Corra. In 2010, Colgate slashed the amount of
manufacturing waste headed to landfills in half—but we didn't stop there. We now
have 20 TRUE Zero Waste certified facilities across five continents - more than any
other company in the world. By 2025, the goal is for all of our global operations to
achieve this certification. Certification, which is awarded by the U.S. Green Building
Council, is only given to sites that manage to divert 90% of their waste from landfills,
energy waste facilities, and the environment, says Casey Mahalick, Colgate-
Palmolive Senior Technical Associate. To make that happen, each site must
analyze everything from the packaging of raw materials sent by suppliers to the
sustainability of finished consumer products. To find surprising sources of trash,
many Colgate plants have been engaging in "dumpster dives," says Mahalick. "You
gather all the waste generated on site for a day or two and sort through it to see
what's in there. It's a must-do because you need to know what you've been throwing
away." Between 2002 and 2019, Colgate figured out how to cut the amount of water
used to make products in half. Now the plan is to achieve Net Zero Water status at
all manufacturing sites by 2030. As with the Zero Waste initiative, the Net Zero
Water program will be monitored by the U.S. Green Building Council. To achieve
Net Zero Water certification, a facility must prove that 100% of the potable water it
uses is either returned to the source it was taken from (such as a well) or obtained
from an alternative source (like a rainwater catchment system) that doesn't impact
the local drinking supply. Reaching Net Zero Water is of utmost importance in
water-stressed regions, including Mexico, India, Brazil, and South Africa, says
Cecilia Coates, a Colgate-Palmolive Sustainability and Data Specialist. "We'll focus
on them first, then bring everyone else along," she says. We are simultaneously
partnering with nonprofits to provide 1 million people with access to safe water and
sanitation systems. "These are communities that are close to where we work and
where many of our employees come from," Coates explains. "We've been taking
water from the environment in these regions, so it's our way of giving back. It's part
of being a good neighbour." Colgate already knows a thing or two about conserving
energy and reducing greenhouse gas emissions; we’ve been named an ENERGY
STAR Partner of the Year for 10 years in a row. Next up: transitioning to 100%
renewable energy for all global operations by 2030. "There's a lot of excitement
about it," says Vance Merolla, Worldwide Director of Global Sustainability. We are
exploring a variety of strategies to harness green energy, from putting solar panels
on the roof of our buildings to purchasing energy from outside providers that sell
electricity generated by wind farms. At the same time, we’re striving to become
"Net Zero Carbon" in global operations by 2040. "It's a very new target, so we're still
mapping it out. But it means that we will compensate for or remove the equivalent
amount of carbon generated by all the energy we use—including energy consumed
by our operations and our employees commuting," Merolla explains. Becoming
even more energy efficient will remain an important piece of the puzzle. Staging
"energy treasure hunts" is one way that we have already been encouraging
employees to get in on the endeavor.

GREEN MARKETING PRACTICES ADOPTED BY NESTLE:

Nestlé recognizes the importance of developing healthier and more sustainable
product offerings. The company prioritizes nutrition, portion control, and responsible
marketing practices to promote healthier lifestyles and address public health
concerns. Nestlé continually innovates to meet consumer demands for sustainable
products, exploring ways to reduce sugar, salt, and artificial ingredients in its
offerings. Moreover, Nestlé is dedicated to promoting sustainable packaging
solutions and responsible disposal methods, aiming to minimize the environmental
impact of its products throughout their life cycle. By focusing on these three pillars,
Nestlé's sustainability strategy encompasses a comprehensive approach to address
the social, environmental, and economic aspects of its business. Through its
commitment to people, planet, and products, Nestlé aims to create shared value for
all stakeholders and contribute to a more sustainable future. Nestlé's sustainability
strategy is an ever-evolving journey, with ongoing efforts to continuously improve
and adapt to emerging challenges. The company's commitment to transparency and
accountability ensures its sustainability initiatives are measurable and aligned with
global sustainability goals. As we explore Nestlé's sustainability journey, let us delve
deeper into the specific initiatives and projects that showcase Nestlé's dedication to
creating a positive impact and driving sustainable change in the food and beverage
industry. Nestlé has implemented various water-saving technologies and practices
throughout its operations. By optimizing water usage, the company has significantly
reduced its water footprint. Nestlé actively collaborates with local communities and
stakeholders to support water resource management initiatives to protect and
preserve this vital natural resource for future generations. Nestlé recognizes the
importance of sustainable agriculture in ensuring the long-term viability of its supply
chain.The company supports farmers, helping them adopt sustainable agricultural
practices that promote soil health, biodiversity, and responsible land management.
Investments in research and development enable Nestlé to explore and implement
innovative farming methods that minimize environmental impact while ensuring the
quality and safety of raw materials. As part of its commitment to combat climate
change, Nestlé has taken significant steps to reduce greenhouse gas emissions.
The company has implemented energy-efficient technologies, transitioned to
renewable energy sources, and optimized logistics to minimize carbon footprint.
Nestlé actively seeks partnerships and collaborations to drive climate action,
contributing to global efforts to mitigate the effects of climate change. Recognizing
the environmental impact of packaging waste, Nestlé has made strides in
developing sustainable packaging solutions. The company focuses on creating
recyclable and biodegradable packaging materials, reducing reliance on single-use
plastics. Through collaboration with industry partners, Nestlé actively explores
innovative packaging technologies, seeking to drive positive change and promote a
circular economy in the food and beverage sector. Nestlé's sustainability journey is
characterized by its commitment to continuous improvement. The company
recognizes that sustainability is a dynamic process requiring ongoing innovation and
adaptation. Nestlé sets ambitious targets and regularly assesses its progress,
constantly seeking new opportunities to enhance its environmental performance and
contribute to a more sustainable future. By achieving these milestones in water
usage reduction, sustainable agriculture, climate action, and packaging innovation,
Nestlé sets an example for the industry, demonstrating that sustainable practices
can be integrated into the core business operations of a global food and beverage
company. As Nestlé continues its sustainability journey, the company remains
dedicated to pursuing innovative solutions, collaborating with stakeholders, and
striving for excellence in environmental stewardship. Addressing the global
challenge of waste management requires collective action. Nestlé collaborates with
governments, NGOs, and industry partners to develop innovative solutions that
minimize waste and promote circular economy principles. For instance, Nestlé
works with organizations like the Ellen MacArthur Foundation to drive the transition
towards a circular economy by rethinking packaging design, promoting recycling
initiatives, and minimizing plastic waste. These partnerships enable Nestlé to
contribute to global efforts in reducing waste generation and promoting sustainable
waste management practices. Nestlé recognizes the importance of engaging and
supporting local communities in its sustainability initiatives. The company
collaborates with community-based organizations, NGOs, and governments to
foster community development projects. Through initiatives like the Nestlé Cocoa
Plan and the Nescafé Plan, Nestlé works alongside farmers and communities to
improve livelihoods, provide education and training, and promote sustainable
agricultural practices. These collaborations empower local communities, enhance
social well-being, and contribute to the overall sustainability of Nestlé's supply
chain.

These examples of Nestlé's collaborations and partnerships illustrate the company's

commitment to working with external stakeholders to drive positive change. By
leveraging collective expertise, resources, and knowledge, Nestlé expands the
reach and impact of its sustainability efforts. These collaborations enable Nestlé to
align its sustainability goals with global initiatives, foster innovation, and create
shared value across the entire value chain.
Moving forward, Nestlé remains dedicated to fostering strategic partnerships,
seeking new collaborations, and driving collective action to address complex
sustainability challenges. By working hand in hand with external organizations,
Nestlé aims to create a more sustainable and inclusive future where the principles
of responsible sourcing, waste management, and community development are
embedded in every aspect of its operations.
In the following chapter, we will delve into Nestlé's ongoing commitment to
continuous improvement and its proactive approach to innovation, highlighting
specific programs and initiatives demonstrating the company's dedication to its
sustainability journey.
Nestlé employs a robust framework to measure its sustainability performance
across various dimensions. The company utilizes key performance indicators (KPIs)
aligned with its sustainability goals and international standards, such as the Global
Reporting Initiative (GRI) and the Sustainability Accounting Standards Board
(SASB). By tracking and analysing data related to water usage, greenhouse gas
emissions, waste management, and other relevant metrics, Nestlé gains insights
into its environmental and social impact.
Nestlé recognizes the importance of measuring and reporting its sustainability
performance to ensure transparency, accountability, and continuous improvement.
This chapter explores Nestlé's approach to impact measurement and reporting,
highlighting the company's commitment to sharing progress, challenges, and future
target.

 LITERATURE REVIEW
S NO. AUTHOR TITLE OBJECTIVES FINDINGS

1. Magali Morel Green to show if consumers who

Francis marketing: consumers find already bought
Kwakye Consumers’ easily green eco-friendly
Attitudes products in their products and
towards Eco- supermarket and those who are
friendly if they are satisfied by
Products and available. these previous
Purchase purchases
Intention in were willing to
the Fast- repeat
Moving purchases.
Consumer
Goods
(FMCG)
sector

2. Mwangi Mary Adoption Of Determine The findings of

Mugure Green awareness, this study
Marketing extent of clearly depict
Strategies by adoption and that Kenya is
Fast Moving establish the not lagging in
Consumer challenges faced green concept
Goods by FMCG matters.
Manufacturers manufacturers in Kenyan
In Nairobi City Nairobi City industries 53
County. County, in are aware of
adopting green the green
marketing marketing
strategies. concept.

3. Manjeet Green The primary goal The study

Sharma, Dr. Marketing: A of the current concluded that
Seema Study of Eco- study is to consumers
Mahlawat Friendly investigate and bought goods
Initiatives analyse the with less
Towards environmental environmental
Green Fmcg effects and impact. To a
Products initiatives made certain extent,
by businesses in consumers are
India with willing to pay
reference to exorbitant
green FMCG costs.
items.
4. K Pradeep Consumers To investigate The findings
Reddy, perception on how consumers’ have
Venkatachalam green awareness of implications for
Chandu, marketing environmental businesses that
Sambhana towards eco- issues influences make durable
Srilakshmi, Elia friendly fast their preferences goods in terms
Thagaram, Ch. moving when shopping of Green
Sahyaja, and consumer for eco-friendly Marketing.
Bernard Osei goods goods, how Marketers
different types of urging people
customers, based to do the right
on their thing for the
knowledge of environment
environmental should give
issues and more
preferences for consideration
green products, to the
might be campaign’s
differentiated. overarching
theme and
messaging.

5. Gunjan Influence of To study the this study will

Srivastava Green awareness level focus on
Marketing on of the consumers environmental
buying towards Green awareness,
behaviour of Products, to corporate
the study consumer image, product
Consumers of perception customization,
Selected towards green and ethical
FMCG advertising, To implications are
Products, with recognize the all facets of
Special factors motivating green
Reference to consumers to advertising that
Delhi NCR purchase green have a
products, To beneficial
understand impact on
relationship consumer
between green
environmental purchases.
concern of
customers and
their perception
towards green
products, To
analyse till what
extent consumers
are ready to pay
higher price for
green product in
comparison to
regular
conventional
products
6. Mr. Vijay A Study of To find out the The level of
Sampatrao Green factors, awareness
Phalke Marketing Of responsible for about green
Fmcg the gaps in marketing and
Products In awareness in green FMCG
Relation To semi urban products is
Semi Urban consumers, To considerably
Consumers study the factors high of
influencing in consumers in
buying behaviour Semi Urban
of semi urban Area of Sangli
consumers in District, The
relation to FMCG demand for
products in FMCG
general and products is
Green FMCG considerably
products, To increasing and
study the therefore the
perception of size of market
Semi Urban for green
Consumers about FMCG
04P’s of FMCG products in
Green Products Semi Urban
to find out the Areas in
gap regarding increase in its
adoption and size by an
expectation to average of 8 %,
adopt them, To The companies
suggest the have low level
measures that, of reach to
would meet semi consumers in
urban Semi Urban
consumers’ Area of District
expectations and Sangli, Present
improve efforts in
adoptability of respect of
Green FMCG Promotion and
products. The Physical
suggestions shall Distribution is
be for all the not satisfactory
stakeholders as compared to
the
expectations of
Consumers
and Retailers in
Semi Urban
Areas in Sangli
District, There
is a need to
create
Bondage with
Youth in this
area as they
are the
consumers of
Today and of
the future
7. Akash Deepak Green To examine the there is lot of
Agrawal and Marketing: impact of various advantage of
Manoj Das Sustainable components of using IPO
Marketing working capital grading
Strategy like account therefore it
receivable, should be
account payable, catered to the
inventories days masses.
and cash Knowledge of
conversion cycle IPO grading
on return on total should be given
assets, To to the investors
examine the so that they
impact of firm can take an
size measured by informed
natural log of decision. IPO
sales on return grading
on total assets knowledge
should be
disseminated to
masses in the
form of
newspaper
articles

8. Abhishek GREEN To study the The study

Kumar Singh MARKETING: factors of sudden shows that
A Study Of increase in OTT consumers
Consumer channels have a strong
Awareness viewership during positive attitude
And lockdown period towards Green
Preferences in India. To Marketing.
In India With highlight the environmental
Special major challenges issues.
Reference To for cinema hall Consumers
Fmcg owners due to agreed that in
Products changing habits future more
of digital viewers consumers
due to dynamic would prefer
watching organic
experience? products
Understand
which of the
companies are
more popular
among the
customers
9. Pratibha K. Green The primary The findings
Thakur Marketing and objective of this from this
Consumer study is to research
Purchase evaluate the showed that
Intentions For influence of the intention to
Fast Moving green marketing purchase green
Consumer on purchase was perceived
Goods In intention for as being
Kathmandu FMCGs in incremental
Kathmandu. given the rise
in personal
education
levels

10. Dileep Kumar Does Green The objective of The findings

M. Marketing this study is to indicate that
Works With examine the more than
Consumers? causal direct relation
relationships of between green
green marketing marketing in
on brand brand
perception and perception and
buying behavior buying
of Malaysian behavior, the
consumers in the moderating
context of retail actor have a
consumer stores high influence
in Northern on the green
Malaysia marketing in
brand
perception and
buying
behavior.

11. Wong FuiYeng Green The main As

& Rashad Marketing: A objective of this environmental
Yazdanifard Study of paper was to issues continue
Consumers’ determine the to affect human
Buying study of green activities,
Behavior in marketing and it’s society is now
Relation to sustainability on regards them
Green the environment with much
Products and companies concern. Most
as well as the firms have
tools and started using
marketing mix of sustainable
green marketing. development
framework
which is known
as green
marketing and
most of the
organizations
have
acknowledged
green products
which are
environmentally
friendly.
12. R. Shrikanth, Contemporary To discuss the The findings
D.Surya Green need for Green emphasize that
Narayana Raju Marketing - marketing in India today situation
Brief from different being both
Reference To perspectives, To green and
Indian study the present consumer
Scenario scenario and friendly is the
potential of only mantra for
Green marketing long term
in India. success.

13. Hari Lal Green One of the As the demand

Bhaskar Marketing: A biggest problems for green
Tool for with the green products
Sustainable marketing area is undoubtedly
Development that there has exists, Green
been little attempt Marketing
to academically provides an
examine opportunity to
environmental or the companies
green marketing. to increase
their market-
share by
introducing
eco-friendly
products.

14. Vaishali Sethi, Determinants To develop and Psychographic

Ridhima of purchase standardize the factors
Sharma behaviour questionnaires to significantly
towards green measure the affect
fmcg products factors affecting consumers’
selection of perception of e-
resorts, To advertising in
evaluate the terms of
underlying factors information
for resorts value,
selection and to trustworthiness
open new vistas and
for future entertainment
researches. value.

15. R. Sivakam, Green To study the It has been

Sumita Kumar Marketing: consumer observed
Towards perception about through the
Responsible Green FMCG process of data
Consumption products, To collection and
segment the interaction
consumer into amongst
various shades of respondents
Green., To irrespective of
understand their age that
buying motives in there is wide
purchase of spread
Green FMCG awareness on
Products environment
protection. The
respondents
have also
positively
asserted that
they are aware
of eco-friendly
products that
are made
available to
them
16. Dr. M. GREEN To study the level The researcher
Veeralakshmi, MARKETING of awareness of concludes from
Dr. B.Revathy PRACTICES customers of the findings of
IN INDIA mobile banking, the study that
To assess the consumerism
customers among the
perception customers in
toward various the study area
components of is only a
mobile banking developing
services, To phenomenon.
identify the
factors motivating
for using mobile
banking services.

17. Umang Effect of To understand Findings of the

Agrawal, Green the relationship study indicated
Mohammad Marketing-Mix between the that only green
Salman Ansari on green marketing- price and
Consumers’ mix of the promotion have
Intention to marketers and a significant
Purchase green FMCG relation with
Green Fast- purchasing the green
Moving intention of the purchase
Consumer Azamgarh intention.
Goods consumers, to
(FMCG): An estimate the
Empirical degree to which
Evidence green marketing-
mix influences
the Azamgarh
consumers’
green FMCG
purchasing
intention, To
analyze any
difference among
the gender in
response to the
green marketing-
mix and their
behaviour

18. Ms. Shalini Analysis Of To assess the The study has

Thapa, Ms. Green consumer found that
Shikha Verma Marketing As awareness Green
Environment towards green marketing is a
Protection marketing and its tool for
Tool: A Study application as protecting the
Of Consumer Environment environment for
Of Dehradun Protection Tools, the future
Studying generation, it
consumer has a positive
attitude towards impact on
green marketing environmental
as Environment safety.
Protection Tools,
To assess the
role of Green
marketing in
bringing change
in consumer
buying behavior.
19. Shilpa Green The main By the following
Bhagwat Marketing : objective of this research it can
Consumer study is to know be concluded
Buying the respondents that
Behaviour To buying behaviour Shopkeepers
Procure Eco- to procure green have
friendly product, to knowledge
Products identify the level about
of knowledge Consumer/
about green Customer
products and its Behavior.
impact.

To study the
20. Satvir Kaur Sustaining reasons why The finding
Environment green revealed that
with Green marketing consumers
Initiative: A adoption is were aware of
Conceptual important to the green
Study of business product and
Green firms, Discuss irrespective of
Marketing the initiative their age, they
Practices in taken by the preferred to
India business firm buy green
towards green products
marketing in because these
India, To products were
explore the eco-friendly. It
challenges in also showed
Green that most food
marketing items were
faced by purchased on
business firms. the basis of
green followed
by health
products.