The environmental issues have been rising to be the key driving forces of the markets in the current world hence bringing out sustainability as the common goal for producers and consumers. Every day, there is a massive consumer awareness for goods and services harmonizing with environmental conservation. Currently, there is a growing interest in sustainability among Indian consumers as they seek to buy products with less adverse effects on the environment and involve reasonable ethical standards. This is a substantial shift in the consumer environment, where environmentally friendly themes have become a primary competitive advantage.
Green Branding is the process of designing and marketing products with environmental characteristics, it is gradually finding its place in the growing environmentally sensitive marketplace in India. There has been a shift in consumer behaviour which has triggered an increase in the buying preferences of goods and services. Consumers choose products that have undergone sustainability in sourcing of raw materials, processing, and marketing, and therefore the importance of trademarks. Trademarks also come in handy for green brands as they ensure that the identity of the brands is well protected in the market. Prominent green brands in operation in India like the Tata Steel ‘Tata Pravesh’ doors and windows made from virgin material are 100% recyclable and Fab India’s organic and eco-friendly textiles and apparel illustrate how a trademark assists a brand in solidifying its promise towards green credential and hence, building consumer trust. In light of the developing environmentally sensitive market of India, the role of trademarks in the launching and management of green brands will become more and more pivotal in the coming years.
The Role of Trademarks in Green Branding
In today’s world, manufacturers and owners are fully aware of the value of trademarks and the rights that come with registering one. The protection granted by trademarks averts consumer confusion, ensures accurate identification by consumers, and instills trust in consumers about the brand’s products and services. Over time, labels have become increasingly important for showcasing a company’s dedication to sustainability and concern for the environment. The main purpose which the green brands serve is to highlight environment-friendly products and services in this market. These environmentally conscious consumers are categorized by an acronym called “LOHAS” which stands for “Lifestyles of Health and Sustainability.” But Green Branding can turn into something called ‘Greenwashing’ in which businesses fabricate or exaggerate claims about their attempts to look environment friendly. This can mislead consumers and offer an undue advantage to businesses that are not committed to sustainability. Trademarks are essential in today’s market when green claims exist to distinguish between true green items from those that are merely disguised as eco-friendly. Here’s how:
Consumer Trust and Confidence
A well-established trademark can instill Consumer trust—especially one that is associated with green certifications or standards. Products with well-known green trademarks have undergone environmental verification hence, consumers are more likely to identify and choose from such products.
Market Differentiation
A product stands out in a crowded marketplace with the help of a distinctive green trademark. Goods with well-known trademarks usually fetch higher prices due to their purported environmental benefits.
Regulatory Compliance
Certain environmental standards or certifications are linked to particular green trademarks. This ensures that products meet certain criteria. Businesses can avoid legal repercussions and fines by complying with regulatory regulations.
Legal and Regulatory Landscape for Green Trademarks in India
The Trade Marks Act, of 1999 protects various kinds of trademarks, including those associated with environmental or ‘green-branding’ claims. The Act does not define sustainability as a special category and no special provisions are there to verify the authenticity of sustainability claims. This loophole allows some organizations to portray their products as being sustainable when they are not. In the case of ITC Limited v. Nestle India, the court decision came which underscored the importance of transparency and accuracy in green branding and emphasized misleading claims. Due to such issues, it is only reasonable for India to adopt specific rules and policies akin to the EU’s Green Claims Directive or the UK Green Claims Code which already has a guide on sustainable marketing strategies. It is also recommended that some of the frameworks incorporated under the Trade Marks Act related to green trademarks, for instance, the third-party certification can assist enhance the integrity and legal recognition of green trademarks. Improving the legal regulation would also assist the ethical brands seeking environmental laws and also respond to some questions about Indian sustainability.
Case Studies of Indian Brands Embracing Green Branding
TATA Steel
The company’s focus is to reduce its carbon footprint through energy efficiency, reduction of waste, and efficient use of renewable energy. The CII’s (Confederation of Indian Industries) “GreenPro” Ecolabel highlights the company’s dedication to the environment through environment-friendly production methods and its role in promoting sustainable practices in the automobile shift.
TATA Motors
Tata Motors is at the forefront of producing eco-friendly automobiles to reduce the effect on the environment. The electric Tata Nexon EV was launched by Tata Motors as a part of the Green Branding campaign. Zero Emissions and Fuel efficiency have been highlighted in the car’s branding. The company’s marketing initiatives demonstrate dedication towards a sustainable future and establish Tata Motors as a pioneer in the environment-friendly automobile industry.
ITC Limited
ITC has adopted green branding through its commitment to sustainability across various business platforms like FMCG, hotels, and agriculture. The business promotes its “Sustainability 2.0” program intending to have a beneficial environmental effect. ITC is well-known for utilizing renewable resources in its paper and packaging segment and for its agri-business division, it focuses on sustainable agriculture methods. The “Well-Being Out of Waste” (WOW) initiative encourages recycling and further strengthens their environmentally conscious brand.
Godrej Group
Godrej’s key components of sustainability are incorporating energy efficiency, water conservation, and waste management into its corporate strategy. The “Good & Green” initiative by Godrej aims to achieve carbon neutrality, zero waste, and a positive environmental footprint by 2025. This is a prime example of green branding. The initiative has been widely promoted and hence, has become an integral part of the brand’s goodwill.
Hindustan Unilever (HUL)
HUL has made some organized efforts to enhance its packaging and reduce wastage. An initiative like “Project Sunlight” has been introduced that aims to make all plastic packaging recyclable or reusable and motivate a behavioural change amongst consumers towards responsible consumption. The company focuses on sustainable sourcing of raw materials and the products are produced in an environmentally responsible manner.
Future of Green Branding and Trademarks in India
Given that Indian consumers are becoming environmentally sensitive, the market of green branding and trademarks is expected to have strong growth. The latest example Dabur India Limited v. Emami Limited [i], demonstrates the significance of green branding as a lot of attention was paid to trademarks connected with natural and ayurvedic products. Trademarks will be at the center of creating the new generation of sustainable brands and the primary signal of quality and sustainable initiatives. Trademarks are crucial in helping brands build consumer loyalty in a world of competitive marketing strategies among brands. In the case of Patanjali Ayurveda Ltd. v. Masala King Exporters Trading Pvt. Ltd[ii], the Delhi High Court held that trademarks can act not only as a shield to the identity of the brand but must also ensure that sustainability claims are truthful.
Further innovations and legal changes are needed to set the ground for the sustainable development of the Indian economy. New legal rules for trademarks should address the issue of Greenwashing and ensure that the companies making sustainability claims will be held accountable for their actions and not misuse the laws for promotions. Some changes in law need to promote sustainability but should not let brands escape responsibility, so the changes in India’s market should be real.
Conclusion
Green branding remains prevalent in organizational management and marketing plans as India increasingly turns towards being environmentally conscious. Trademarks therefore have a very central role to play in this process of branding and adding value to brands associated with environmentally friendly activities. Thus, following this practice also helps the companies establish themselves, and gain an edge over their competition; at the same time, can manipulate a large number of consumers through their marketing strategies towards sustainability.
Thus, Green branding not only acts as the economic growth spearhead but also directs the way to environmentalism. Meanwhile, the companies that can navigate between sustainable development and trademark legislation will possess the key advantage and will be able to lead the market and drive change in Indian trade and commerce in a responsible manner.
[i] Dabur India Ltd. v. Emami Ltd., Delhi High Court, MANU/DE/2112/2019 (2019).
[ii] Patanjali Ayurveda Ltd. v. Masala King Exports Trading Pvt. Ltd., Delhi High Court, MANU/DE/1391/2019 (Mar. 18, 2019).
Author: Gyan Kaur and Adarsh Tripathi are students of Manikchand Pahade Law College, Aurangabad, Maharashtra