Businesses Reward Those Opting Out of Paper, Plastic

More than 60% of consumers have made a conscious effort to decrease the amount of paper mail they receive, while 41% bring their own bag from home when shopping, according to Corporate Research International, a market researcher. Now businesses are giving those who have yet to ditch the paper and plastic an extra nudge.

While bringing your own canvas bag to the grocery store or receiving your bills via email may seem like small gestures compared with, say, installing solar panels or buying a hybrid vehicle, they can have a significant environmental impact. If the average American household (which receives 19 paper bills and statements, and mails seven payments a month) went paperless, it would save 6.6 pounds of paper, 63 gallons of water and 4.5 gallons of gasoline each year, as well as prevent the release of 170 pounds of harmful greenhouse gases, according to the Pay It Green Alliance, a coalition of financial services companies aimed at reducing paper use.

Worried about the effects of petroleum-based plastic bags on the environment, both San Francisco and Oakland, Calif., have banned stores from providing them to customers. And Seattle is considering imposing a 20-cent fee per bag. Meanwhile, dozens of businesses across the country are offering customers incentives to leave the plastic and paper behind. Allstate (ALL) offers a 2% discount on insurance to clients in Colorado and Ohio who use paperless statements, while Whole Foods (WFMI), which stopped providing plastic bags to customers last month, offers a five- to 10-cent discount for each bag shoppers bring with them.

However, not all businesses are taking the nice guy approach. Some actually penalize customers for using paper and plastic. Discount grocer Aldi and home goods store Ikea charge five cents for each plastic bag they provide at checkout. "You're going to see a combination of carrot and stick on this, with more emphasis on the carrot," says Thad Peterson, vice president of sector strategy and solutions for Maritz, a marketing company.

Not only do these businesses get to monopolize on the good PR of the green movement, but they're also boosting their bottom line. After all, those paper bank statements and plastic bags cost money. "This is a case where they are saving money and also getting to say they're doing the right thing," says Michal Ann Strahilevitz, a marketing professor at Golden Gate University. "It's win-win."

Here's what retailers and other businesses are currently offering earth-conscious consumers:

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