Sure, improving energy efficiency helps the bottom line, but it’s not enough to break into the burgeoning green market.

The sales are flowing instead to companies that embrace a variety of green or eco-friendly practices, products and services. Companies that commit themselves to sustainable programs because they’re ethically, socially, economically and environmentally the right thing to do are outperforming the market in terms of sales.

This message comes through loud and clear in a new market survey by Retail Systems Research (RSR) and the Retail Industry Leaders Association. Their survey defines winners as those whose sales growth exceeds 3% percent a year.

How did they do it? They’re cutting costs like everybody by investing in energy efficiencies to reduce electric bills and reduce greenhouse gas (GHG) and other air pollutants. But they’re also promoting environmentally sound practices within their companies, and they’re touting these green initiatives to their employees and customers.

The sales winners also work hard to project an image of corporate and social responsibility, according to the analysis provided by the survey researchers.

On the other hand, companies that only focus on cutting overhead expenses routinely fall short of the 3% sales-growth threshold. These companies are dubbed “laggards” in the survey.

Some comparisons:

• 45% of winners say green means reducing use of fossil fuels; only 11% of laggards agreed
• 64% of winners want their public image to say “we care,” while only 33% of laggards said so
• 50% of winners invest in reducing their carbon footprint; only 22% of laggards do, and
• 60% of winners push to limit energy usage in their supply chains; 44% of laggards do.

The RSR survey is available here.

This analysis dovetails nicely with another consumer survey that notes why winners are gaining sales while laggards fall behind. The North Carolina polling firm, Capstrat, reports that an overwhelming majority of consumers — 83% — value a company’s green image and make their purchasing decisions based on it. Click here for the news.

Tags: Capstrat, energy efficiency, greenhouse gases, Retail Systems Research