The number of green financial services products and options appearing in the market continues to grow. The most recent entry into the market is the latest direct product offering from Australian Insurance Holdings. IBuyEco is Australia’s first 100% carbon neutral car insurance. Partnering with Greening Australia, the IBuyEco policy will see 16 to 25 trees planted for each tonne of carbon emissions that are offset.
The company is also offsetting the emissions created by their Australian operation that has more than 500 employees. The positive response from staff to this initiative has been tremendous.
IBuyEco director Jonathan Kerr told Online Banking Review: “This is not just a special offer. IBuyEco is here for the long haul. The sum benefit to the planet is far bigger than just a promotion.”
Online is the main channel for arrangement and communication for IBuyEco. Kerr reveals that their customer base is spending more time on the website to research and learn about the product compared to other direct brands.
“The site is designed to provide good, in depth information”, Kerr explains. “The level of quoting and purchasing online for IBuyEco is similar to our other brands. However, these customers are seeking out deeper levels of information.” Kerr believes that there are opportunities to expand eco friendly initiatives into other product lines.
Other insurers are making tentative steps into green car insurance. Suncorp and GIO offer a 10% discount on premiums for hybrid vehicles. Both companies also include some environmentally friendly inclusions for Home & Contents insurance cover.
NRMA will offset 1 tonne of carbon emissions for free for Queenslanders who switch to NRMA Car Insurance between August and the end of January 2008. NRMA customers in other states can request that carbon credits be purchased through the New South Wales Greenhouse Gas Abatement Scheme.
One of the earliest green financial services players is community credit union mecu. Mecu offer a wide range of eco-friendlier options including the goGreen® home loans, car loans and car insurance. Westpac offers the Landcare Term Deposit, a Green discounts for Home Loan customers. BT, wholly owned by Westpac, offers socially responsible investments.
“We applaud anyone who does anything towards creating eco friendly products,” Kerr adds. He believes that the current options provided by other brands will continue to gain momentum and other wholly green products will emerge in Australia in the medium term.
The ACCC reports it will begin examining ‘green marketing’ claims in light of an increasing volume of complaints about ‘green’ products. Green compliance activities will be ramped up with a combination of business and customer education initiatives to ensure ‘green marketing’ claims comply with the Trade Practices Act.
Are green financial services products servicing a niche market or will similar products become main stream offerings for all Australian banks and insurers?
Thursday, November 29, 2007
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3 comments:
Don't believe the hype, it's a greenwash!
While it is hard to argue that green products are in and of themselves a bad thing, it is hard to believe that these products are anything other than a marketing ploy to sell products. The reality is that Australia generates ~1.4% of global emission and this is reducing as a relative proportion. If anyone is serious about solving the issue they would be better to invest the same amount the offset costs into a renewable energy fund that has potential to solve the global issue.
Don't believe the hype, it's a greenwash!
While it is hard to argue that green products are in and of themselves a bad thing, it is hard to believe that these products are anything other than a marketing ploy to sell products. The reality is that Australia generates ~1.4% of global emission and this is reducing as a relative proportion. If anyone is serious about solving the issue they would be better to invest the same amount the offset costs into a renewable energy fund that has potential to solve the global issue.
It's not really greenwash if at the end of the day it means that more emissions are accounted for through qualified schemes.
Yes, it does play to the heart of those concerned about climate change but it musn't be forgotten that every little bit counts.
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