sustainable marketing is the future
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Sustainable Marketing is the Future
FutureM
October 24, 2012
Beth Zonis
@bethzonis #ecomarketing
Present
Climate change is very real. Freak storms are increasingly common. While there are water shortages in some regions, there are floods in others. In response, corporations are adopting sustainability practices, and products are marketed as "green," "eco-friendly," "environmentally friendly," and "energy efficient." What does it really mean to be sustainable? How can people determine which products are truly better and greener?
We have only one planet, but we're using the
resources of five or more
2 10/24/2012 Future M: Sustainable Marketing is the Future
Agenda
• Introductions
• Definitions
• Why Sustainable Marketing
• What do you need to know?
• What can you do to make a difference?
3 10/24/2012 Future M: Sustainable Marketing is the Future
Who we are
• Beth Zonis (moderator) - Eco Marketing
• Lisa Lillelund - Mango Networks
• Laura Koss - Federal Trade Commission
• Amy Cannon - Beyond Benign
• Mike Enberg - Basel Action Network
Future M: Sustainable Marketing is the Future 4 10/24/2012
Have you ever bought a product
because it was green?
Future M: Sustainable Marketing is the Future 5 10/24/2012
AMA uses sustainability language
Marketing is the activity, set
of institutions, and processes
for creating, communicating,
delivering, and exchanging
offerings that have value for
customers, clients, partners,
and society at large.
Future M: Sustainable Marketing is the Future 6 10/24/2012
Sustainability is environmental, economic and social
well-being for today and tomorrow
International Institute for Sustainable Development
Future M: Sustainable Marketing is the Future 7 10/24/2012
Everyone should do Sustainable Marketing!
Every marketing decision
can be optimized with
respect to profits, the
natural environment, and
human well-being.
Future M: Sustainable Marketing is the Future 8 10/24/2012
Extreme weather is increasingly costly
• 1980-1995
– 46 disasters > $1 billion in
damages
– Total losses: $339 billion
• 1996-2011
– 87 disasters > $1 billion in
damages
– Total losses: $541 billion
Future M: Sustainable Marketing is the Future 9 10/24/2012
National Geographic, September 2012
Corporations are doing something about it
81% of the world's largest
public companies that
report their greenhouse
gas (GHG) emissions data
and sustainability
strategies now include
physical threats and
disruptions from climate
change
Future M: Sustainable Marketing is the Future 10 10/24/2012
Customers care about sustainability
• Approx. 50% of people consider a company’s
environmental reputation as they make product
choices
• 50% of Americans can name a product that they’ve
chosen or dropped as a result of learning more
about a company’s environmental record (up from
20% in 2008)
• Millennials – the largest demographic group outside
of boomers – are 2x more likely to consider a
company’s environmental record before making a
purchase
Source: Green marketing stats that justify storytelling, Suzanne
Shelton, GreenBiz.com, August 2012
Future M: Sustainable Marketing is the Future 11 10/24/2012
Sustainability has short-term benefits
• Water and Energy Savings
• Increased Property Values
• Improved Employee Attendance
• Increased Employee Productivity
• Sales Improvements 5 Economic Benefits of Green Building, EcoWorld, August 2009
Future M: Sustainable Marketing is the Future 12 10/24/2012
Green roof on Boston City Hall
Sustainability is good in the long term too
Corporate Sustainability creates long-term
shareholder value by embracing opportunities and
managing risks deriving from economic, environmental
and social developments.
Future M: Sustainable Marketing is the Future 13 10/24/2012
Dow Jones Sustainability Index
As marketers we can make a difference…
… not just in promoting our
companies, products and
services – but in shaping
the conversation about
environmental and social
sustainability.
Sustainable Marketing, by Diane Martin and John
Schouten
Future M: Sustainable Marketing is the Future 14 10/24/2012
Today we’ll discuss
• Sustainability – What does it mean to you?
• The Green Guides – Can you back up your green claims?
• Green Chemistry – Do you know where everyday products come from and what’s in them?
• Electronic Waste – Where do your electronics go when you’re done with them?
Future M: Sustainable Marketing is the Future 15 10/24/2012
While we’re talking, please think about
• The value of sustainability to you and your
organization
• The stories you can tell
• What you can do to make a difference
Future M: Sustainable Marketing is the Future 16 10/24/2012
THANK YOU!
Beth Zonis
Principal and Founder
Eco Marketing LLC
www.ecomarketingonline.com
beth.zonis@gmail.com
617-501-9660
Future M: Sustainable Marketing is the Future 17 10/24/2012
Doing Well by Doing Good
Sustainability Initiatives
Enhance your Brand Reputation
Strategic Partnerships
Storytelling
Lisa Lillelund MANGO Networks - Sustainability Advisor
lisa@mangonetworks.com
www.mangonetworks.com
October 24th, 2012
“Today’s CEOs are more committed than ever to
creating a sustainable business.”
• 93 % of Global Compact
CEOs see sustainability as
important to their future
success.
• 72 % of executives cite
“strengthening brand, trust
and reputation” as the
strongest motivator for
taking action on
sustainability issues.
Source: UN Global Compact-Accenture CEO
Study 2010, 766 CEOs surveyed
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Measuring and Reporting
• Annual Sustainability Reports
• Carbon Disclosure Project
• Dow Jones Sustainability Index
• Global Reporting Initiative
(GRI)
• GHG Greenhouse Gas Protocol
21
Awards and Recognition
• Ranked 1st in the Dow
Jones Sustainability World
Index
• “Environmental Contributor
of the Year” Award for the
2010 Global Water Awards
22
Major organizations are focusing on Sustainability
and reducing emissions
23
Storytelling on the website
24
Transportation
Facility GHG Emissions
Sustainable Packaging
Zero Waste
Core product Milk
Sustainable Ingredients
Marketing
Water
Green Chemistry
Internal focus areas for Sustainability Initiatives
(c) 2011. Stonyfield Farm, Inc. All Rights Reserved
25
World’s biggest company
$ 135 billion in annual sales
Over 100,000 global suppliers
Environmental goals:
• Cut carbon emissions 25%
• To be supplied 100% by
renewable energy,
• Create zero waste
• Reduce energy use by 20-30% in
the 6,600 big-box stores
• 180 renewable energy projects,
second largest in the U.S. for on
site renewable energy production
26
Sustainability Product Index 15 Questions for Suppliers, with examples below
1. Energy and Climate: Reducing Energy Costs and Greenhouse Gas
Emissions • Have you measured your corporate greenhouse gas emissions?
2. Material Efficiency: Reducing Waste and Enhancing Quality • If measured, please report the total amount of solid waste generated from the
facilities that produce your product(s) for Walmart for the most recent year
measured.
3. Natural Resources: Producing High Quality, Responsibly Sourced
Raw Materials • Have you established publicly available sustainability purchasing guidelines for
your direct suppliers that address issues such as environmental, compliance,
employment practices and product/ingredient safety?
4. People and Community: Ensuring Responsible and Ethical
Production • Do you know the location of 100 percent of the facilities that produce your
product(s)?
27
.
Water
Recycling
Global musical artist and
producer will.i.am and The
Coca-Cola Company are
collaborating with other iconic
brands to inspire a global
movement with the launch of
EKOCYCLE™ --
Corporate Strategic Partnerships
28
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.
Corporate Strategic Partnerships
30
Strategic Partnerships
• $10 of your daily room
rate is donated back to the
Nature Conservancy
• A tree will be planted on
your behalf as part of the
Plant A Billion Trees
Campaign
• You will also receive a
15% discount for each
night of your stay
31
Corporate Citizenship Program
Achievement by the Numbers
• $ 1 M + dollars raised by employees
for our non-profit partners through
2010, including company match
• 1.3 M people impacted worldwide
since 2008
• 2,200 local water projects completed
WATER FOR PEOPLE
MERCY CORPS
AVINA
CHINA WOMEN’S DEVELOPMENT FOUNDATION
PLANET WATER FOUNDATION
32
Solar Now solarnow.org
Local Volunteer Opportunities
33
Slides designed with assistance from www.norvelljefferson.com
Thank You!
Lisa Lillelund
MANGO Networks
Sustainability Advisor
lisa@mangonetworks.com
www.mangonetworks.com
978-590-9212
34
Laura Koss
Senior Attorney
Federal Trade Commission
OVERVIEW
FTC and Advertising Law
The Green Guides
• The Basics
• Claims
• Enforcement
SEC. 5, FTC ACT (15 U.S.C. §§ 41-58)
Tell the truth.
Have substantiation for:
• Express and implied claims.
Competent and reliable scientific evidence
GREEN GUIDES BASICS
How do consumers understand claims?
Apply to all forms of marketing claims
• Business to consumer
• Business to business
Not performance standards or eco-labels
GREEN GUIDES REVIEW
Public Comment
Workshops
Carbon Offsets/REC
• Green Packaging
• Green Buildings and Textiles
Consumer Perception Research
GENERAL GREEN GUIDES PRINCIPLES
Consumer perception controls.
Be specific.
Don’t overstate attributes.
Use clear, prominent qualifications.
QUALIFICATIONS SHOULD BE:
Clear
Prominent
Understandable
• Plain language.
• Sufficiently large type.
• In close proximity
TYPES OF MARKETING CLAIMS
General benefits, Certifications
Degradable
Compostable
Recycled content, Recyclable
Source reduction
Free-of, Non-toxic
Ozone safe/ozone friendly
Renewable energy, materials
Carbon Offsets
Refillable
FTC CONSUMER PERCEPTION STUDY
Internet study - Harris Interactive
• General (“green,” “eco-friendly”)
• Sustainable
• Renewable (“made with renewable
energy/materials”)
• Carbon neutral/Carbon offset
GENERAL BENEFIT CLAIMS - ORIGINAL GUIDES
Suggest wide-reaching environmental benefits.
Difficult to substantiate.
Avoid or qualify.
STUDY: “GREEN” OR “ECO-FRIENDLY”
52% - Product had specific green attributes.
• Made with recycled materials – 61%
• Recyclable – 59%
• Made with renewable materials – 54%
• Biodegradable – 53%
27% - Product had no negative environmental impact.
FINAL GUIDES – BEWARE GENERAL CLAIMS
“Highly unlikely marketers can substantiate all
reasonable interpretations of these claims.”
Marketers should not make unqualified general
environmental benefit claims.
QUALIFICATIONS – USE CAUTION
Environmentally Improved;
Now with 30% less plastic!
Clear and prominent.
Limit claim to a specific benefit(s).
Evaluate trade-offs
No negligible benefits
GENERAL BENEFIT CLAIMS
Example of recent action
“BAMBOO FIBER” TEXTILES – ENFORCEMENT ACTION
Actually rayon – Not environmentally friendly process
Not biodegradable
Credit: poorandpretty.com
DEGRADABILITY – QUALIFY UNLESS:
“Entire [item] will completely breakdown and return to
nature within a reasonably short period of time* after
customary disposal.”
*1 year for items entering solid waste stream
DEGRADABILITY
Unqualified degradable claims are deceptive for
products destined for landfills, incinerators, or
recycling facilities – products won’t decompose in a
reasonably short period of time.
NEW: CERTIFICATIONS/LOGOS/SEALS
NEW: CERTIFICATIONS/LOGOS/SEALS
Endorsements
Need substantiation
General environmental benefit claim
Clear and prominent qualification:
• Refers only to specific, limited environmental benefit
. GreenLogo For Environmental
Excellence
. ACME Paint’s Own GreenLogo
For Environmental Excellence
• Low VOCs
QUALIFYING A MULTI-ATTRIBUTE CLAIM
Virtually all products impact the environment. For
details on which attributes we evaluated, go to
www.123
DISCLOSE MATERIAL CONNECTIONS
A “connection between the endorser and the seller of
the advertised product that might materially affect the
weight or credibility of the endorsement.”
“TESTED GREEN” – ENFORCEMENT ACTION
Sold environmental certifications
Claimed Tested Green was the “nation’s leading
certification program”
FTC alleged Tested Green never tested any of
companies it provided with certifications, and would
“certify” anyone willing pay a fee.
NEW: FREE-OF CLAIMS
May still be deceptive even if free of a substance
Trace amounts may be okay
NEW: NON-TOXIC
“ . . . likely conveys that the [item] is non-toxic both for
humans and for the environment generally.”
NEW: RENEWABLE MATERIALS
Tell which material used; why renewable.
Qualify if entire product (less incidentals) is not made
with renewable materials.
Sustainable
Organic
Natural
NO GUIDANCE
http://business.ftc.gov/advertising-and-
marketing/environmental-marketing
MORE INFORMATION?
www.ftc.gov
877-FTC-help
lkoss@ftc.gov
Green chemistry as a business advantage
Amy S. Cannon, Ph.D.
Beyond Benign
www.beyondbenign.org
$
65
Chemists’ Roles in Environmental Problems
• Historically, synthetic chemists have not played a major role in the environmental movement.
• Green Chemistry identifies synthetic chemists as the key practitioners in identifying, developing, and implementing pollution prevention technologies.
66
Design Criteria
• Solubility
• Melting Point
• Glass transition temperature
• Mechanical Properties (Tensile Strength, Modulus, Elongation)
• Refractive Index
• Surface Tension
67
Design Criteria
• Solubility
• Melting Point
• Glass transition temperature
• Mechanical Properties (Tensile Strength, Modulus, Elongation)
• Refractive Index
• Surface Tension
• Toxicity
• Environmental Impact
68
Understanding Hazard
• Intrinsic nature of hazard
• Reduced hazard better than reduced exposure
• Unrelated hazards
Risk = Exposure x Hazard
69
Science education…
• Non-science majors science course: – Jam-packed with Environmental Science
• Chemistry major: – No requirements in a Bachelor’s program – No requirements in a Master’s program – No requirement in a Ph. D. program
*ONLY ONE UNIVERSITY IN THE U.S. REQUIRES ANY KNOWLEDGE OF TOXICITY OR ENVIRONMENTAL HAZARD!!!
*We are changing this: Green Chemistry Commitment (www.greenchemistrycommitment.org)
Green Chemistry is about…
• Shifting roles
• Design
• Understanding Intrinsic Hazard
• Changing education of chemists
• Reducing costs
• Enhancing performance
• Innovation
71
Green Chemistry is about…
Shifting roles
Design
Understanding intrinsic hazard
Changing education of chemists
• Reducing costs
• Enhancing performance
• Innovation
72
Reducing Costs
73
The cost of using hazardous materials
• Storage • Transportation • Treatment • Disposal • Regulatory Costs • Liability • Worker Health and Safety • Corporate Reputation • Community Relations • New Employee Recruitment
74
Environmental Regulations
75
120
110
100
90
80
70
60
50
40
30
20
10
0 1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
Nu
mb
er
of
Law
s
Environmental Regulations
76
AMFA ARPAA
AJA ASBCAA
ESAA-AECA FFRAA
FEAPRA IRA
NWPAA CODRA/NMSPAA
FCRPA MMPAA
120
110
100
90
80
70
60
50
40
30
20
10
0
EPACT FFCA CERFA CRAA
PPA PPVA IEREA ANTPA GLCPA ABA CZARA WRDA EDP OPA RECA CAAA GCRA GLFWRA HMTUSA NEEA
SDWAA SARA
BLRA ERDDAA EAWA NOPPA PTSA UMTRCA ESAA QGA NCPA
TSCA FLPMA RCRA NFMA CZMAA
NEPA EQIA CAA EPA EEA OSHA FAWRAA NPAA
FRRRPA SOWA DPA
WSRA EA RCFHSA
AQA
NAWCA
WQA
NWPA
MPRSAA ARPA
HMTA
FCMHSA
NHPA
WLDA FWCAA
FWA AEA
AEPA FIFRA PAA
FAWRA MBCA NPS WA
IA NBRA
AA RHA YA
TA FWCA
BPA
NLRA WPA
AQA FOIA
WRPA AFCA
FHSA NFMUA
BLBA FWPCA MPRSA
CZMA NCA
FEPCA PWSA
MMPA
ESA TAPA
RCRAA WLDI
APA SWDA
CERCLA CZMIA
COWLDA FWLCA
MPRSAA
CAAA CWA
SMCRA SWRCA SDWAA
Nu
mb
er
of
Law
s
1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
More environmentally benign than alternatives
Perform better than alternatives
More economical than alternatives
77
Safety
Performance Cost
Green Chemistry
78
Green Chemical Market by Region, World Markets: 2011-2020
79
Pfizer, Inc.: Re-design of Sertraline (Zoloft)
• Use of 140 metric tons/year of titanium tetrachloride
• Generation of 440 metric tons/year of solid titanium dioxide waste
• 150 metric tons/year of 35% HCl waste
• Need for 100 metric tons/year of 50% NaOH
• Dramatically reduced the number and volume of solvents used
80
Presidential Green Chemistry Challenge Award 2002
Warner Babcock Institute for Green Chemistry
81
Fabrication & Physical Testing,
Analytical Separations
Lab
Microscopy & Surface Analysis
Lab
NMR Lab
Particle Size & Surface Characterization Lab
Met
al O
xid
e R
ese
arch
Lab
s
Organic & Polymer Synthesis
Lab
Biomaterials Lab
Thermal Analysis & Spectroscopy Lab
X
-ray
Lab
Environment & Toxicology
Lab
Multi-use Chemistry Lab
Beyond Benign
Ap
plic
atio
ns
and
Co
atin
gs
Res
ear
ch L
ab
…
WBI Executive Office Space
WBI Scientists Office Space
Learning Center
Cafe
Ch
em
ical
s &
La
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up
plie
s
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Nontoxic, Environmentally Benign Hair Coloring
Ultra Low Cost Non-Toxic Solar
Water Based Non Toxic Photoresist Cleaning Solutions
Increased Bioavailability for a Parkinson’s Disease Drug
83
Why Green Chemistry?
Pfizer Inc.:
Through our Green Chemistry initiative, which is grounded in Paul Anastas and John Warner's 12 Principles of Green Chemistry, we are dedicated to promoting the selection and use of environmentally preferable chemicals, eliminating waste and conserving energy.
It is integral to the way we do business and delivers sustainable, long-term profitability through safer more efficient processes; increased product yield that are compatible with protecting the environment; and the health and safety of our colleagues, customers, and the communities where we live and work.
http://www.pfizer.com/responsibility/protecting_environment/greener_processes.jsp
84
Amy_Cannon@beyondbenign.org
www.beyondbenign.org
www.greenchemistrycommitment.org
Thank you!
85
Sustainability Credibility 3rd Party Certification and Marketing
Mike Enberg
e-Stewards Enterprise Director
menberg@ban.org
Value of 3rd Party Certification
• Decreased Information Costs for Customers
• Increased Assurance of Consistent Quality
• Helps Instill Better Management and Practices
• Market Differentiation
87
Branded! by Michael Conroy
“The opportunity [is] to associate a company brand with systems of third-party independent certifications to show – in ways that are credible to a skeptical public – that the company is complying with the highest standards for social and environmental practices.”
88
• This is a business problem – happily, it is one with a solution.
• Your company, no matter how big or small, can make a global difference.
• There are tangible benefits in doing so.
Got e-Waste?
89
A.I.D.A.
How to engage companies and individuals in a sustainability marketing program.
Lesson Learned
91
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In USA: 80% delivered to “recyclers” or from unsubsidized collection events are exported
93
Exporting Harm
94
The Digital Dump 95
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And it comes from your desktop.
97
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In this complicated and risky world…
A clear need for
Awareness in the market that much of what is called
“recycling” is dumping by another name.
To identify, promote and support those companies that choose to recycle properly: An accredited, independently audited certification program that is
principled but practical A standard can provide companies and the public complete assurance
their spent electronics will not be dumped on developing countries
99
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• The e-Stewards Enterprise program recognizes and rewards companies, governments and organizations that choose to recycle their electronics responsibly.
• Engage the producers as well as the processors
• “Leaders Lead.”
e-Stewards Enterprise Program
101
3rd-Party, Independent Environmental Certifications
Risk Mitigation
Reward Maximization
102
e-Stewards Enterprises Today (partial list)
103
Kai Loeffelbein Unicef’s Photo of the Year 2011
The End-Product of 3rd-Party
Certifications
Change
104
What You Can Do
www.e-stewards.org
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