e-mail and direct mailing co2 impact
DESCRIPTION
ENVIRONNEMENTAL IMPACT OF E MAILING COMPARE TO PAPER MAILING. WHO TO MEASURE THE C02 OF BOTH RESULTS OF SIMULATIONSTRANSCRIPT
What’s behind my m@ail?Comparative Analysis of Sustainability and
effectiveness of e-mail vs paper mailGaëtan Dartevelle, Managing Partner, Greenloop
Jacques Bruyneel, DM Consultant, bpost business
22/03/11
Common assumptions
1. Direct Mail generates more carbon footprint than digital
2. It’s better for environment to move to CRM paperless
3. Direct mailing is a waste of trees
What we believe by bpost
bpost approach with Greenloop
• STEP 1: a DM carbon meter = how to measure and reduce “your” direct mailing C02 impact; bpost is the first post & media to calculate LCA
• STEP 2: To compare the C02 for delivery of a mailing and an e mail
• Purpose: Advices to go for better green Direct Marketing
E-billing to save the trees and the earth?
http://www.digi.com http://www.greencitizens.net http://www.timewarnercable.com
E-billing to save the trees and the earth?
E-folders to save the trees and the earth?
“In 2 weken, 600.000 folders,
of 5.000 ton papier en 41.600 bomen bespaart”
E-catalogues to save the trees and the earth?
Source: www.e-leclerc.com
And the consumer?
38.000 bomen en 1512 ton C02 bespaar
And the consumer?
And the consumer?
Heel wat klanten (...)
vinden het niet kunnen
dat het bedrijf beslist
heeft om hun rekeningen
voortaan via e-mail te
versturen.
“ONGEVRAAGD
EN ONGEWILD”
luidt het.
Source: Het Laatste Nieuws 02/12/2010
0
50
100
150
200
250
300
350
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Bill
ions
em
ails
/day
Year
World email and spam traffic 2001-2010 Total emails send/day in bilions Total spam/day in bilions
Dematerialization «From atoms to bits»? 1995 - MIT professor Nicolas Negroponte
Sources: Radicati Group, 2010; Mcafee, 2009; UPU, 2009
0
0,3
0,6
0,9
1,2
1,5
1,8
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Bill
ion p
ost
lett
ers
/day
Year
World postletter traffic 2000-2009 Total of postletters per day in billions
Number of emails/day has increased dramatically over the last 10 years, but the number of post letters has only slightly decreased
ICT and PAPER usage
Sources: 1CEPI, 2010; 2Arnfalk, 2010
Production of paper & board in CEPI countries, quarterly trend
2000 - 20101
Conclusion2:
• Relatively small substitute effect
• Large complementary and generational effect
Resource extraction
Production Usage Waste
Environmental impacts of the ICT and paper industryBeyond CO2...
energy usage & GHG emissions
Effect on:
biodiversity
toxicity
energy usage & GHG emissions
biodiversity
toxicity
energy usage & GHG emissions
biodiversity
energy usage & GHG emissions
biodiversity
TOX
GHG
BIO
Sources: 1UNEP, 2010; 2Umicore, 2007; 3CSIRO, 2007
Rare materials Modern electronics contain up to 60 different elements1
800 laptops contain up to 1 kg of gold2
Intensive chemical refinement of materials
Water usage250.000 M3 water is used for 1 tonne of gold3
TOX
GHG
BIO
TOX
Impact on resource extraction
Logging of mature virgin forests 56% of all woodsources in EU are PEFC and FSC certified1
Homogeneous replanting for logging
Source: 1 CEPI, 2009
Impact on resource extraction
BIOBIO
GHGBIO
Recycled paper
40
Virgin fiber 60%
In Europe, only 15% of paper “raw material” comes from specific “thinning” (cutting of trees)
25% Waste of forest industry
50% Sanitary “thining”
25%Specific “thinning”
15% (= 25% of 60%) of paper “raw material” comes from specific “thinning”
25% of these virgin fibers comes from specific
“thinning”60% of paper production is
made of “virgin” fiber
“Use of paper” DOES NOT mean “forest destruction”
Even environmentalist say that there is nothing wrong in using timber (large or small trees) for paper production, provided the forest is
managed in a sustainable way
Source: 1Williams, 2004
Energy intense complex production81% of life cycle energy use during production phase1
Chemical treatment
GHG
TOX
Impact on production
Production of pulp & paperCO2 emissions have decreased by 42% per tonne of paper pulp since 19901
BleachingCOD used has decreased by 76.3% since 19901
Water usage
Impact on production
GHG
TOX
GHG
TOXTOX
TOX
Source: 1CEPI, 2009
Continuous energy use ICT GHG emissions are 2% of global total1
Global data centres GHG emissions comparable with those of The Netherlands2
GHG
Sources: 1Gartner, 2007; 2McKinsey & Co, 2008
Impact on usage
A non polluting ICT?
Printers; 6%
PCs and Monitors (excluding embodied
energy); 39%
Servers (including
cooling); 23%
Fixed-ine telecoms; 15%
Mobile telecoms; 9%
Produits postaux traditionnels;
63%
Source: Gartner – IT Vendors, Service Providers and Users Can Lighten IT’s Environmental Footprint, December 2007
IT carbon emission breakdown
• ICT sector’s current share of world greenhouse gas is 2% and it is expexted to more than double by 2020
Transport430 billion mail items send in 20091
Source: 1Arnfalk, 2010
GHG
Impact on usage
LandfillOnly 15% of global E-waste is recycled1
Yearly E-waste increase: 40 million tonner/year2
BIOTOX
Impact on waste
Quickly obsoleteIncreasing life span of phone from1 to 4 years decreases environmental impact with 40%3
BIOTOXGHG
Sources: 1Pike Research, 2010; 2UNEP, 2010; 3Umicure, 2007
Source: 1CEPI, 2009
LandfillPaper recycling rate in EU 2009: 72,2%1
Impact on waste
GHG
GHG
Comparing life cycle
ICT and paper: linear versus circular system
15% 72%
Comparing apples and pears?
ICT and paper: difference in functionality & usageCompare the
function: ‘send a
message’
The life Cycle analysis of a DM campaign
Resource extraction
Production Usage Waste
ICT life cycle
Use of rare materials 1 billion de GSM’s contains:
• 9 T palladium
• 24 T gold
• 250 T silver
• 4000 T cobalt
• 9000 T copper
Source: L’Echo, 2010
Use of rare materials Production of a 2 gram
micro-chip requires
1,6 kg fossil fuel
Source: McKinsey & Co.
Energy consumption
• Data centers CO2 emissions expected to grow from 80 megatons in 2007 to 340 megatons in 2020
• Data centers worldwide generate roughly half of that of the airline industry
• Rapid obsolesce
• Limited recycling
• Toxicity
Source: Williams et al, 2002
Reading a magazine with a clean conscience?Life Cycle Assessment comparison between an online magazine and its paper version
Two-way comparison:
• A 120 page magazine (Finnish)
• 11 editions per year
• 40 minutes average reading time per month
Online or paper: NO DIFFERENCE in terms of CO2 emissions
The Direct Mailing carbon meter
Number of Addresses & diffusion
The MAILING
Results
E mail carbon Meter
Purpose:
Calculating the CO2 emissions of sending
a typical DM by post and sending an comparable alternative
campaign via email
E mail Carbon Meter
Email DM campaign:
• 30.000 recipients
• 200 kb message
• 10 mandays of database & campaign design
• Reading time recipient: 1,52minutes
up to 15 sec.
DM campaign:
• 30.000 recipients
• C5 size letter (3 pages)
• 10 mandays of database & campaign design
• (Reading time recipient: 1,52 minutes)
• Recycled paper
• From Antwerp to whole of Belgium
DM and E mail Carbon Meter
Results from DM Carbon Meter
Carbon emissions from paper DM: 9 grams/paper DM
Carbon emissions from email (1,52 Min):
(30 sec):
(15 sec):
5,6 grams/email DM
5,0 grams/email DM
4,8 grams/email DM
Simulating the effect of sending a typical DM and a typical email message
C02 EMISSION:
1 DM = 2,0 times email
Some testimonies
80% ongelezen
1 Post=7@
Simulating the effect of sending a typical DM and a typical email message
C02 EMISSION including
efficiency:
1 e mail=
3,7 to 4,3 times more C02 than 1 DM
But…volumes are not the same !
Worldwide1:
430 billions direct mailing
60.000 billions e mails (SPAM included)
Source: 1 Arnfalk, 2010
SPAM effect
Global CO2
email trafficup to 20 times post letter traffic1
Source: 1 Arnfalk, 2010
FACT: consumers receive 1.000 mass messages every week
200 TV ads
150 radio ads1000’s of ambient ads ...
20 e-mail ads
3 cinema ads
400 press ads/inserts
350+ outdoor ads
2+ DM pieces
Over 3.000 messages / day52 get your attention
4 are kept in mind positively
ROI of ads is part of the calculation
Source: Mindshare - Henley Centre (and TNS Media & Post survey)
But only one personal postal adres
Value of beta DM is the second best after cinemaCampaign recall % per category
Avg=67,4%
FACT: Paper Mailing generates a better content recall than e-mail
Paper mail has by far more effect on the long run
Direct mail is more effective throughout the media funnel leading to an 83% higher content recall rate compared to email
Received DM/Email
Recall DM/Email
Read DM/Email
Correct recall content
Paper mail
100%
100%
49
28
49
28
55
57
27
16
81
75
22%
12%
Source: Market research on 1800 customers, utility sector case
E-mail has a much stronger impact when combined with a physical mail
Received Opened Clicked Intentions
DM + E-mail
E-mail only
100%
100%
34
30
34
30
60
42
21
13
93
70
23
9
Source: DMix survey Mail order (2007)
113% 161% +255%
The future is about the integration of E&P
■ 70% of belgian companies integrate e-mail marketing in their mediamix
■ 66% of them declare to be satisfied of the objectives reached
In one of the pilots we ran with our customers, adding DM to email
multiplied by 4 the number of final orders1
+ 414%
7
29
E-Mail only DM + E-mail
1 IAB - E-mail Marketing Cookbook; 2 Study E loves P – Pilot Research
The power of Email (benchmark)
Source: IAB 2009
Belgian Benchmarks
25,70%
8,50%
33%
24,35%
6,76%
27,77%
Unique open rate CTR CTR/Open rate
2008
2009
Benchmark paper & e mail
Sources: IAB
■ Direct mailing Béta: 67,4■ e-mail open rate: 24,35%
■ Click: 6,76%
-5,25%
Effectiveness of e mail is decreasing
-20,47%
-15,85%
Consumers: Media preferences 2010Scores 6 & 7 on a scale of 7
Étude Market Probe – 2010 – bpost – 1000 interviews
Consumers: Media preferences 2010Scores 6 & 7 on a scale of 7
Étude Market Probe – 2010 – bpost – 1000 interviews
Advices for “green” Direct marketing
We recommend: (shortlist)
1. First of all: the commercial impact & ROI !
2. Use and test the best media-mix P + @ alternatives
3. Inform the recipients of your aim and actions
4. Be careful with green washing argument
5. Use valid arguments
Advices for “green” Direct marketing
With the DM Consultant of bpost
1. Calculate your carbon footprint for both types of media, paper & @
2. Advice to reduce your C02 impact
3. Use carbon offsetting whenever possible
4. Run a pilot calculation with bpost
“please consider the environment before printing this message”
“please consider the environment when forwarding, responding to, or printing this message” ?
BIOMIM GREENLOOP NV/SArue d’Alost, 7-11, 1000 BruxellesGaëtan Dartevelle, 0475/[email protected]
bpost, Jacques BRUYNEEL0476/[email protected]
Presentation available on “www.DMplaza.be”