The U.S. Green Confidence Index is Here!

Americans are skeptical of scams and price gouging, and they want viable green options. Their confidence in elected leaders and manufacturers on environmental responsibility is shaping the green marketplace. Until now, however, this confidence has been elusive to track.

Welcome to the U.S. Green Confidence Index. The Green Confidence Index gauges Americans’ attitudes and confidence in elected leaders as well as manufacturers on environmental responsibility. It also measures consumers’ own understanding of issues and willingness to make green purchasing choices.

This is the first comprehensive monthly tracking of consumer trends around environmental responsibility, information availability, and purchase history and intent. Earthsense is proud to conduct the Green Confidence Survey for this industry changing measurement.

Earthsense has collaborated with two leading companies to create the Index: GreenBiz.com and Survey Sampling International. GreenBiz.com produces industry research reports and events on the greening of mainstream business. (They published Earthsense’s paper, “The Corporate Reality of Consumer Perceptions,” in February.) Survey Sampling International powers the Index by supplying survey panelists, 2,500 of whom complete this tracking study online every month.

“Americans’ attitudes about how they view environmental problems and solutions are complex and dynamic,” says Joel Makower, executive editor of GreenBiz.com and chairman of Greener World Media. “For years, periodic surveys have tried to capture snapshots of those attitudes. By surveying monthly, the Green Confidence Index will reveal real-time shifts and nuances marketers don’t usually see.”

The Index is calculated using consumers’ responses in three areas:

• Responsibility: how leaders and institutions are perceived to be addressing
  environmental issues (weight: 40%)
• Information: the adequacy of information available to make informed decisions (20%)
• Purchasing: past and future purchases of green products (40%)

Initial Index Results

The Index was set at 100 in July 2009, so subsequent scores above 100 reflect positive trends, with the reverse true for those below 100. The inaugural report includes results from the first three months of surveying: the Green Confidence Index currently stands at 103.8, showing a modest upward trend largely due to “big ticket” purchasing.

Also, based on past and future purchase trends captured in the survey, initial results suggest that American consumers are ready to increase their purchases of environmental products and services as the U.S. economy emerges from recession, though premium prices for green goods remain a barrier for many.

Green Companies

In addition to the regular monthly tracking of attitudes and habits, the Green Confidence Index tracks Americans’ perceptions of companies: “What company, if any, do you think of as being ‘green’?” (This is an unaided question, meaning no list is provided. Respondents simply name companies that are front of mind.) In the September report, Clorox and Walmart loomed far ahead of other brands or companies, followed by (in alphabetical order) General Electric, Johnson & Johnson, Procter & Gamble, SC Johnson, Toyota, and Whole Foods. In all, more than 300 companies received at least one mention – though it was striking that 64% of consumers could not name a single green company. (We’re looking forward to seeing how much and how fast this will change.)

Who do You Trust?

The Green Confidence Survey delves into other questions useful for understanding the Index. An important one asks about the sources of information consumers use and trust when they “need information about environmental issues to guide decisions” about shopping, investing, and voting. The answer? They have little use for corporate blogs and websites, which were also deemed the least-trustworthy source of information. Friends, relatives, and colleagues were the highest-rated sources, with consumer ratings and reviews the second most-trusted source. “Social media plays a big role for companies looking to introduce new, green products to consumers. Since getting on the radar screen is often a huge hurdle for niche companies, anything that helps consumers share experiences – creating a “pull” rather than a “push” – will help a brand take root,” says Wendy Cobrda, president of Earthsense. “But there’s a flip side, of course: the Internet provides unprecedented connection to consumers who need nothing more than a Twitter account to broadcast a perceived right or wrong.”

The green marketplace is poised for growth as the recession rebounds, and the Green Confidence Index will be its barometer with monthly tracking to gauge real-time market shifts. The Green Confidence Survey is a companion to Earthsense’s Eco-Insights survey which is produced twice a year with coverage of 140+ products, 84 retail chains and 30,000 consumers. Eco-Insights data provide in-depth insights into the motivations and barriers that drive green adoption – along with information about consumers who want to get on board.

“Manufacturers and retailers are increasingly aware of the green gap, where consumers’ behaviors and purchases often lag behind intentions, due in part to marketplace confusion about what makes products green,” says Earthsense Chief Research Officer Amy Hebard. “As better information and clearer standards evolve, the Green Confidence Index will be a valuable monitor of progress in communications and how this translates into buying decisions.”

Want to learn how to subscribe to the Green Confidence Index and/or Eco-Insights? Head to earthsense.com or give us a call at 866.237.9108 / 315.579.0015.