Why should I buy eco?

A new brand of carbon neutral car insurance has been launched on the UK market. Ibuyeco joins the likes of CIS and Climatesure in providing car insurance policies with carbon offsets. It’s a positive sign that public interest is now sufficient to justify the creation of another brand and it will hopefully increase the demand in the category.

However, it is a shame that with their name and product offering, they are clearly still targeting their services at the environmentally conscious minority.

Look below the surface and ibuyeco is simply an online insurance broker, who find you a competitive quote from a third party provider and add on some carbon offsetting, provided by the Carbon Neutral Company.

The trouble is, that as ibuyeco is basically selling two separate things – insurance and carbon offsets, it’s not clear what their brand really offers. With no background information or product innovation, the brand has no real value in itself, other than the benefit of combining two transactions in one and allowing those who wish to claim, “I buy eco!” Personally, if I don’t buy into the organisation itself and there is no clear service benefit, I would rather shop around for the best insurance quote, and then offset the emissions from a provider of my choice as a separate transaction.

What the market really needs is for an insurance company to use carbon offsetting as an integral part of its package, included in the price, and with the benefits clearly communicated. The offering would have more integrity and appeal to a wider audience. If the difference in price between two trusted suppliers is small, and one includes carbon offsetting as standard and the other doesn’t, many customers would happily choose the carbon neutral option and feel good that they had done something positive for the environment. However, it’s unrealistic to expect many people to be interested in paying extra to offset their carbon emissions unless you can clearly show how it benefits to them.

This blog is supported by Scamper - The pioneers in Sustainable Brand Strategy

Virgin Blue going Virgin Green

The aviation industry is often criticised for its contribution to global warming. Increasingly low airfares encourage more air travel for both holidays and business. Concerned travelers are now taking action by offsetting their own carbon emissions through companies like Climate Care. But many are now asking whether the airlines themselves should take responsibility for their emissions rather than leaving it to the consumer to deal with.


Virgin Blue, Australia’s low cost internal airline, implied that this was going to happen in a recent campaign that renamed the airline as Virgin Green and stated that Virgin Blue is going Carbon Neutral. Closer inspection reveals that this is sadly not the case, but it is also clear that it is more than just a publicity stunt as the airline is pursuing a number of strong strategies to reduce its environmental impact.

• Virgin Blue is the first airline in Australia to offer customers the opportunity to neutralise their emissions. The money earned through this will be contributed towards projects dealing with forest activities, energy efficiency measures, waste diversion and renewable energy.

• The carbon emissions generated by the crew and the staff on business travel will be offset.

• The airline has joined 800 other companies in the Australian Greenhouse Challenge Plus Program to measure, monitor and report on overall emissions with the goal of reducing them every year.

• Virgin blue has decided to apply special “green” paint on 70 aircrafts, as part of a major new investment in environmentally friendly cleaning and maintenance technology.

• Virgin Blue also claim to have the most fuel efficient airline fleet in Australia.
  

Although not perfect, Virgin’s approach is clearly a step in the right direction and a milestone in the aviation industry. However, it is disappointing that the airlines are still not prepared to take responsibility for the carbon emissions of their aircraft by offsetting the emissions for all passengers. Considering that it only costs about AUS$1.50 to offset a passengers flight from Brisbane to Sydney, it could surely be included as part of the ticket price.

Virgin Blue have clearly recognised the growing level of public concern about environmental issues and the value that taking a lead on these issues can add to their brand, but they need to show firmer commitment to tackling carbon emissions before they can justify calling themselves Virgin Green.

This blog is supported by Scamper - The pioneers in Sustainable Brand Strategy