Pitfalls of the Energy Transition Marketing
With the spotlight on sustainability, many companies are struggling to keep up with customer expectations, public perceptions, and the evolving regulatory landscape. This is particularly the case for energy companies, many of which have been under scrutiny in the process of the energy transition. On one hand, even the companies who are championing a positive change are at times accused of greenwashing, often by audiences who have limited knowledge of the basic principles of a sustainable society. On the other, a decline in marketers’ understanding of sustainability in recent years coincides with their increasing boldness when communicating about it as green becomes the “new gold.”
This is perhaps not surprising as the marketing of the energy transition is quite convoluted.
Although the energy issues are complex and continuously evolving, public discussions surrounding the energy transition appear binary. They often use “either”/” or”, or “us” vs. “them” narrative– e.g., “clean” vs. “dirty” energy; either e-cars or combustion engine cars; developed vs. the developing world. This dichotomous thinking is not helping, as it oversimplifies the complexities and hinders our ability to comprehend the nuances and impediments to progress.
The energy transition is often framed as a battle between renewables and fossil fuels, with proponents advocating for the complete abandonment of the latter in favor of the former. This oversimplified view ignores the realities of energy demand, infrastructure, and regional differences. These discussions often fail to recognize the potential for decarbonizing fossil fuels, overlooking the importance of technologies such as carbon capture and storage (CCUS) for example, needed to complement new energy sources. Fossil fuels continue to play a significant role in the current energy mix. A balanced transition acknowledges the need for cleaner fossil fuel technologies while promoting the growth of renewables.
Unfortunately, many public discussions fail to recognize that solutions to energy challenges exist along a spectrum of possibilities, requiring hybrid solutions and approaches. Neither is the energy transition a one-size-fits-all endeavor, as it has to be tailored to local contexts, resources, and socio-economic realities. What works in one region may not be feasible or effective elsewhere. It is not surprising that there are growing criticisms from the emerging global markets, suggesting that sustainability objectives are set by the Western countries to their standards, and do not sufficiently consider the needs of the non-Western world.
A lack of globally accepted sustainability metrics and standards for the marketing of environmentally friendly products is not helping either. Marketers are left with their internal standards and best practices which are yet to be defined. Thus, it is hard to avoid slipping into green marketing myopia or greenwashing. The many new shades of green marketing include “greenhushing” (deliberate downplaying of sustainability efforts), “greenshifting” (shifting the blame and deflecting responsibility onto consumers), “greenrinsing” (changing targets often before they are achieved), or “greenlighting” (highlighting specific features while obscuring the others), to name some.
In navigating the energy transition, dichotomous thinking only serves to impede progress and deepen divides. Misconceptions can cloud our understanding of the energy transition. While technology is a powerful driver of change, its successful integration into the energy transition requires contextual understanding and effective communication to garner stakeholder buy-in.
For that to happen, decoding the convoluted green marketing language is essential for fostering clear communication and understanding.
For over a quarter of a century, at the Bilateral Chamber, we have built meaningful partnerships, facilitated dialogues, and spearheaded initiatives that contribute to the global shift towards sustainable energy practices. Visit us at the US Pavilion at GET Congress 2024 and join us in this important endeavor.
Ivana Beveridge
Director of Strategy, Bilateral Chamber Energy Transition Committee
