MAKING “GREEN” WORK FOR YOU

Profitable Sustainability Strategies

for Small Business Owners

Anna M. Clark and Nancy SchneiderEarthPeople, LLC

Presentation OutlinePresentation Outline

• What is sustainability?

• Global trends affecting your business

• Greenprint for common-sense sustainability

• Save money through resource conservation

• Maximize digital marketing and social media

• How to avoid “greenwashing”

• New Consumer vs. Old Consumer

• Rewards!

• What is sustainability?

• Global trends affecting your business

• Greenprint for common-sense sustainability

• Save money through resource conservation

• Maximize digital marketing and social media

• How to avoid “greenwashing”

• New Consumer vs. Old Consumer

• Rewards!

Sus-tain-ab-il-i-ty, noun

1. Meeting the needs of the present without compromising the ability of future generations to meet their own needs.

2. Adherence to the “triple bottom line.”

3. The capacity to endure.

Sus-tain-ab-il-i-ty, noun

1. Meeting the needs of the present without compromising the ability of future generations to meet their own needs.

2. Adherence to the “triple bottom line.”

3. The capacity to endure.

Capitalize on Global Trends Capitalize on Global Trends

• Energy Security

• Energy Efficiency

• Renewable Energy

• Clean Technology

• Resource Conservation

• Energy Security

• Energy Efficiency

• Renewable Energy

• Clean Technology

• Resource Conservation

Trend #1-Overdependence on Fossil Fuels.The Cost of Oil Dependence

Trend #1-Overdependence on Fossil Fuels.The Cost of Oil Dependence

97%

“Improving America's oil security is the most significant near-term energy challenge the U.S. faces.”

- James Woolsey, Fmr CIA Director

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6

What Large Corporations’ Executives Are Saying…

What Large Corporations’ Executives Are Saying…

“We all know that oil is running out''. "We need to find alternative solutions and though we are aware of the alternatives - LPG, CNG, ethanol, electric and so on - we have to introduce these to the market,''

"If we don't do it now, we won't be ready in five years when oil may be prohibitively expensive. “

Volvo's head of product planning, Lex Kerssemakers

“We all know that oil is running out''. "We need to find alternative solutions and though we are aware of the alternatives - LPG, CNG, ethanol, electric and so on - we have to introduce these to the market,''

"If we don't do it now, we won't be ready in five years when oil may be prohibitively expensive. “

Volvo's head of product planning, Lex Kerssemakers

Trend #2 Energy Energy Generation Creates Pollution

Trend #2 Energy Energy Generation Creates Pollution

Over 80% of electricity generation relies on carbon-based fossil fuels.

Commercial Electricity DemandCommercial Electricity Demand

Money-Saving Opportunties

Trend #3 WaterWater Matters

Trend #3 WaterWater Matters

• Less than 1% of the world’s fresh water (about 0.007% of all water on earth) is readily accessible for direct human use.

• Agriculture is the largest consumer of freshwater: about 70% of all freshwater withdrawals go to irrigated agriculture. http://www.heraldtribune.com/article/20100113/ARTICLE/1131073

• Less than 1% of the world’s fresh water (about 0.007% of all water on earth) is readily accessible for direct human use.

• Agriculture is the largest consumer of freshwater: about 70% of all freshwater withdrawals go to irrigated agriculture. http://www.heraldtribune.com/article/20100113/ARTICLE/1131073

Source: www.water.org

An EPA Partnership ProgramAn EPA Partnership Program

http://www.epa.gov/WaterSense/spaces/ci.htmlhttp://www.epa.gov/WaterSense/spaces/ci.html

More Recognition Opportunities

The Reality:Living Beyond Our Means

The Reality:Living Beyond Our Means

There are only 15.71 global hectares available per person on a renewable basis. We are overshooting the Earth’s biological capacity by nearly 50%. To sustain present levels of consumption, we would need:

Source: http://www.myfootprint.org/en/

Opportunities:Efficient Companies Recoup $$$

• ENERGY STAR Partner of the Year award for 3 straight years for energy efficiency in 1,110 stores in 49 states and Puerto Rico, 15 supply chain centers, and Plano-based corporate home office

• Stores and logistics centers recycled: 87,000 tons of cardboard 8,700 tons of plastic hangers 5,000 tons of other plastic 13 tons of expanded polystyrene

Stores recycle 75% of their waste. Supply chain centers recycle between 80-90%. JCP saves millions of dollars per year through these efforts.

• eNewsletters. (www.ConstantContact.com).

• Online Training Solutions such as Osmosis, an intuitive learning management software.

• eFaxing. (http://www.MyFax.com).

• FTP Portals. Learn more at: http://www.whatismyipaddress.com/ftp.

• Green Print. Free software download available at: http://www.printgreener.com.

Opportunities: The Web.5 Ways to Save Paper with the Web

Source: http://www.nurelm.com

Save Paper and Increase Sales with Digital Marketing

Old School New Approach

Junk Mail Facebook, Twitter

Hardcopy Newsletters eNewletters

Billboards Website

Twitter can turn your company’s customer service into a competitive advantage. You can save your customers and yourself time, money and frustration: a win-win!

Twitter can turn your company’s customer service into a competitive advantage. You can save your customers and yourself time, money and frustration: a win-win!

You can spot your customer-evangelists by keeping an eye on who retweets your posts most often!

You can spot your customer-evangelists by keeping an eye on who retweets your posts most often!

Social networking is where customers sell to customers!

Social networking is where customers sell to customers!

Digital Marketing is easier and cheaper!

Digital Marketing is easier and cheaper!

They are Free!!They are Free!!

You don’t target people similar to your customers --You don’t target people similar to your customers --

You can target them directly!You can target them directly!

Enables you to send your message only to people who care about your products instead of wasting money on people who don’t!

Enables you to send your message only to people who care about your products instead of wasting money on people who don’t!

Stress-Free Social Media

Maximize your online presence efficiently:

• Effective website• Blog twice per month• Use a newsletter service• Facebook page• Twitter• Media relations• Consult with a social media expert

Common-Sense SustainabilityCommon-Sense Sustainability

• Promote energy conservation in your PEOPLE

• Get an energy audit for your FACILITIES

• Recycle to handle waste in OPERATIONS

• Sell and or use healthy or eco-friendly PRODUCTS

• Replace costly advertising with social media to promote your BRAND

Green~wash Verb: the act of misleading consumers regarding the environmental

practices of a company or the environmental benefits of a product or service.

Green~wash Verb: the act of misleading consumers regarding the environmental

practices of a company or the environmental benefits of a product or service.

Risks: Well-intentioned consumers will be misled into purchases that do not

deliver on their environmental promise. When this happens, the consumer’s trust is misplaced and the potential environmental benefit of his or her purchase is wasted.

Competitive pressure from illegitimate environmental claims will take market share away from products that offer legitimate benefits, thereby slowing the spread of real environmental innovation in the marketplace.

The sustainability movement will lose the power of the market to accelerate progress towards sustainability.

Greenwashing will lead to cynicism and doubt about all environmental claims. Consumers will give up on marketers and manufacturers, and give up on the hope that their spending might be put to good use.

Risks: Well-intentioned consumers will be misled into purchases that do not

deliver on their environmental promise. When this happens, the consumer’s trust is misplaced and the potential environmental benefit of his or her purchase is wasted.

Competitive pressure from illegitimate environmental claims will take market share away from products that offer legitimate benefits, thereby slowing the spread of real environmental innovation in the marketplace.

The sustainability movement will lose the power of the market to accelerate progress towards sustainability.

Greenwashing will lead to cynicism and doubt about all environmental claims. Consumers will give up on marketers and manufacturers, and give up on the hope that their spending might be put to good use.

BEWARE!

BEWARE!

Market Predictions for 2011Market Predictions for 2011• 34 percent of people are more likely to buy

environmentally responsible products and 44 percent of consumers indicate their environmental shopping habits have not changed as a result of the economy. (Cone Consumer environmental survey 2009)

• Customers rule. Businesses will need to develop strategies that talk with their customers rather than at them.

• Greater reliance on technology is creating opportunities to reach customers beyond their immediate geographical sphere.

• In 2011 the gap will widen between businesses that have already started to implement environmental practices and those that have not.

• 34 percent of people are more likely to buy environmentally responsible products and 44 percent of consumers indicate their environmental shopping habits have not changed as a result of the economy. (Cone Consumer environmental survey 2009)

• Customers rule. Businesses will need to develop strategies that talk with their customers rather than at them.

• Greater reliance on technology is creating opportunities to reach customers beyond their immediate geographical sphere.

• In 2011 the gap will widen between businesses that have already started to implement environmental practices and those that have not.

Points to Ponder*

• Green has become Mainstream and Cool.

• Green consumers are strongly influenced by the recommendations of friends and family, and trusted 3rd parties.

• Values guide consumer purchasing. Historically, consumers bought solely on price, performance and convenience.

• Consumers don’t necessarily need to own products; services can meet their needs, sometimes even better.

• Green inspires innovation that result in better consumer value, enhanced brands, and a stronger company.

• Manufacturer and Retailer reputation count now more than ever.

• Green is beyond saving the planet.

• The brands consumers buy and trust today educate and engage them in a meaningful conversation through a variety of media , especially websites and online social networks.

Checklist• To which generations do our consumers belong and what are the

unique ways in which they express their environmental and social concerns?

• To what extent do environmental issues affect the way consumers engage with our brand and the products in our category in general?

• What are the top environmental, ethical and social issues of concern to our Consumers? Stakeholders? Employees? Suppliers? Retailers? Community?

• What is our top environmental risk?

• What are our competitors’ key sustainability-oriented initiatives?

• What opportunities do we have to grow our sales and enhance our image through greener products and green marketing campaigns?

Consumer Groupings*

•

Your TargetRepresentsof the Market.

83%

*Source: New Rules of Green Marketing by Jackie Ottman

Ask• Which segment(s) do our consumers fall into?

• What are the most significant environment-related interests of our consumers? Health? Saving Resources? Animals? Local environment?

• What motivates our consumers? What appeals to them in regard to actions you could take?

• What can you do to align your business with your customers beliefs, values and actions?

• Is there anything you are doing that could cause your customer to stop patronizing your business, or even boycott your business?

Think Global, Act Local

• Small to medium businesses generally fit into the new “local-vore” mind set.

• Additional opportunities to source from/to local businesses.

• Reinvests in the local community

Staying Ahead of the CurveProactive Sustainability Helps Your Company Make

Positive Changers Before Mandates

Staying Ahead of the CurveProactive Sustainability Helps Your Company Make

Positive Changers Before Mandates

On January 7, 2011 the EPA announced a new rule for manufacturers of 19 additional HPV chemicals. Manufacturers must conduct testing on the health and environmental effects.

On January 7, 2011 the EPA announced a new rule for manufacturers of 19 additional HPV chemicals. Manufacturers must conduct testing on the health and environmental effects.

Questions to ask

The downside of inaction…The downside of inaction…

Waste of money, time, resources.

Customers are smarter and talking to each other.

Unprepared for mandates and regulations.

Corporate misdeeds are costly to companies—if people find out.

Waste of money, time, resources.

Customers are smarter and talking to each other.

Unprepared for mandates and regulations.

Corporate misdeeds are costly to companies—if people find out.

RewardsRewards

Earn publicity with the local, regional or even national media Uniquely differentiate yourselves from competitors Attract the interest of top job candidates Attract consumers in the rapidly-growing green marketplace Transform your company into industry leader Reduce operating costs Create brand distinction and recognition Create significant competitive advantage Enhance employee satisfaction Become preferred vendor in green supply chains Build credibility with stakeholders Attract investors

Earn publicity with the local, regional or even national media Uniquely differentiate yourselves from competitors Attract the interest of top job candidates Attract consumers in the rapidly-growing green marketplace Transform your company into industry leader Reduce operating costs Create brand distinction and recognition Create significant competitive advantage Enhance employee satisfaction Become preferred vendor in green supply chains Build credibility with stakeholders Attract investors

*Harvard Business School study by Joshua Margolis and Hillary Anger Elfenbein

Sustainability is sometimes defined as “doing well by doing good.*

For More Information on How to Make Green Work For You,

Contact EarthPeople:

For More Information on How to Make Green Work For You,

Contact EarthPeople:

http://earthpeopleco.com/

1-800-597-6892