In the food and drinks industry it has been observed that companies are reluctant to use existing and widely recognised green logos, such as the mobius loop, because using their own makes the brand more easily distinguishable for the consumer.
[14] In August 2008 the British ASA ruled that Shell had misled the public in an advertisement which claimed that a $10bn oil sands project in Alberta, northern Canada, was a "sustainable energy source".
Furthermore the ASA ruling stated "Defra had made that recommendation because, although 'sustainable' was a widely used term, the lack of a universally agreed definition meant that it was likely to be ambiguous and unclear to consumers.
Because we had not seen data that showed how Shell was effectively managing carbon emissions from its oil sands projects in order to limit climate change, we concluded that the ad was misleading"[15] In the United States the Federal Trade Commission issues the "Green Guides" (last updated 2012) - environmental marketing guidelines.
The Federal Trade Commission has recognised that these guidelines need updating, as for example they currently contain no guidance on carbon neutrality, or the terms sustainable or renewable.
In turn, products and services of green brands have recently been seen to have a perfectly inelastic demand because people are prepared to support and pay a higher price for a sustainable image.
[18] This information shows growing consumer demand of companies providing goods and services that preserve the environment and adopt a “green” approach to business.
In the study, environmental awareness was placed among the most vital product traits that consumers valued when purchasing, along with minimising toxic and hazardous substances, water preservation and recycling.
Because concern for the environment is now a pivotal element in consumer decision-making, studies have found that the demand for green brands is higher than ever before.
When supporting green brands, customers believe this determines their role in society and this gives consumers satisfaction that they are perceived as having an eco-friendly attitude.
The Body Shop is an example of a competitive green brand that succeeds through understanding and providing the consumer demand for eco-friendly products and their sound environmental performance.
[23] Green brands looking to secure their sustainable image within consumers minds must establish a philosophy that describes their use of renewable resources, minimising waste, supplying safe goods and services and "giving back to the environment".
[24] Where a clean and green image is communicated, brands should be associated with environmental claims that are truthful in how their business practices impact on the surrounding environment.
[25] It has been found that emotional strategies build brand loyalty very effectively because consumers feel they are helping preserve the environment through supporting sustainably made products.