Brands and Branding for Good Conference: Leslie Pascaud - South Africa 2010

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Leslie Pascaud, Added Value’s global director of Sustainable Marketing Practice, was in South Africa in October 2010 as one of the keynote speakers at the second annual Brands and Branding for Good Conference.

In this presentation, Leslie looked at the role of innovation in moving businesses forward to a more sustainable future.

For more information contact kate.wolters@added-value.co.za or visit www.added-value.com. More about the conference can be found at www.brandsandbrandingconference.co.za.

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Brands and Branding for Good Conference: Leslie Pascaud - South Africa 2010

  1. 1. Sustainable Innovation: The way forward <ul><li>Johannesburg, 13 th October 2010 </li></ul>
  2. 2. A year has gone by seemingly without a lot of progress… <ul><li>October 2009 Cape Town Conference on Biodiversity </li></ul><ul><li>600 international biodiversity experts from across the globe call attention to the threats of shrinking biodiversity </li></ul><ul><li>November 2009 Copenhagen </li></ul><ul><li>A disappointing conclusion to a two-year process: &quot; recognised &quot; the scientific case for keeping temperature increases below 2C but without concrete commitments to emissions reductions. </li></ul><ul><li>September 2010 New-York </li></ul><ul><li>World Business Council for Sustainable Development </li></ul><ul><li>No concrete plans established to meet the 2015 Millennium </li></ul><ul><li>development goals to end poverty </li></ul>Tensions between short term economic contingencies and longer term strategic interests create hurdles to global consensus. The world can't wait for governments to agree…
  3. 3. Yet at a more micro level, cumulated steps are driving real change <ul><li>China is investing $100 billion in &quot;ecocompensation&quot; </li></ul><ul><li>The signing of sweeping US financial reform into law: </li></ul><ul><li>A new law takes effect in 2011 obliging EU countries to reduce exposure to fine particles released by cars and trucks in urban areas by an average of 20% by 2020… </li></ul>
  4. 4. <ul><li>A planet that is increasingly &quot;hot, flat and crowded&quot; (Thomas Friedman) </li></ul><ul><ul><li>Growing connections between North & South </li></ul></ul><ul><ul><li>Growing connections between East and West </li></ul></ul><ul><li>Within companies, Marketers, environmental safety teams, procurement, R&D are having real conversations </li></ul>It's all about connectedness
  5. 5. Increasing recognition of the connections between sustainable pillars <ul><li>Captured in the South African concept of Ubuntu: </li></ul><ul><li>&quot;I am because you are. I can only be because the world around me exists.&quot; </li></ul>Ecological Environmental impact Economic Economic impact Socio-political Social impact UBUNTU
  6. 6. <ul><ul><li>Consensus on the need to reduce resource use: </li></ul></ul><ul><ul><ul><li>KKR Green Portfolio programme eliminates 160$ million in 2 years through energy reduction, recycling and other green practices </li></ul></ul></ul><ul><ul><ul><li>SAB use water footprinted to fully understand and address water impacts </li></ul></ul></ul><ul><ul><ul><li>OPower using peer pressure to change consumer behaviours </li></ul></ul></ul>Business and sustainable advocates: increasingly playing on the same team
  7. 7. Business and sustainable advocates: increasingly playing on the same team <ul><ul><li>A common goal: improve quality of life at the bottom of the pyramid </li></ul></ul><ul><ul><ul><li>4 billion low income consumers representing tremendous revenue generation potential .Meeting their needs, increasing their productivity and incomes, empowering their entry into the formal economy represents a staggering market opportunity. </li></ul></ul></ul>
  8. 8. Business and sustainable advocates: increasingly playing on the same team <ul><li>A desire to build stronger bonds of trust and confidence </li></ul><ul><ul><ul><li>To increase consumer loyalty </li></ul></ul></ul><ul><ul><ul><li>To reinforce supplier relationships </li></ul></ul></ul>
  9. 9. Developing new ideas for products and services through sustainable innovation Branding For Good South Africa Conference – 13.10.10 Confidential
  10. 10. Developing new ideas for products and services through sustainable innovation Branding For Good South Africa Conference – 13.10.10
  11. 11. <ul><li>Who Will Ride The Next Wave? </li></ul><ul><li>Electric Vehicle Service provides e.g. BetterPlace </li></ul><ul><li>Car sharing services e.g. Zipcar, Autolib </li></ul><ul><li>Different forms of transportation from Peugeot Mu </li></ul>Sustainable innovation: winners and losers <ul><li>Business Opportunity Seized </li></ul><ul><li>&quot;Conservative J.D.Power and Associates forecasts that hybrid car sales will be more than triple by 2015&quot; (April 2010) </li></ul><ul><li>Business Opportunity Missed </li></ul><ul><li>&quot;General Motors decides to shut down Hummer, the brand of big sport utility vehicles that became synonymous with the term gas guzzler, after a deal to sell it to a Chinese manufacturer fell apart!&quot; (April 2010) </li></ul>
  12. 12. <ul><li>Who Will Ride The Next Wave? </li></ul><ul><ul><ul><li>Water-soluble tablets </li></ul></ul></ul><ul><ul><ul><li>Air to water machines </li></ul></ul></ul><ul><ul><ul><li>Water conservation businesses </li></ul></ul></ul><ul><ul><li>&quot;…water productivity improvements across regions and sectors around the world could cost…about $50 to $60 billion annually over the next two decades. Private-sector companies will account for about half of this spending. Many of these investments yield positive returns in just three years.&quot; McKinsey Quarterly 2010 </li></ul></ul>Sustainable innovation: winners and losers <ul><li>Business Opportunity Seized </li></ul><ul><li>Deutsche Bank reports that water filters have experienced double digit sales growth over the past two years. (Green Biz – April 2009) </li></ul><ul><li>Business Opportunity Missed </li></ul><ul><li>Bottled water sales declined 6% in 2009. Coke's Dasani Brand sales were down 19%. Nestle's water brands were the only ones in the food and beverage division to experience sales declines in 2009. </li></ul>
  13. 13. The future of innovation is… sustainable
  14. 14. Hybrid organisations pursuing new forms of blended value: both financial and social returns on investment
  15. 15. Starbucks Betacup
  16. 16. Unilever: hygiene education
  17. 17. Sustainability in South Africa
  18. 18. South African consumers DO care <ul><li>Globally </li></ul><ul><li>Growing awareness of ethical and green issues in SA: </li></ul><ul><ul><li>Increasingly part of the global community </li></ul></ul><ul><ul><li>Technological advances and ethical journalism 'speeding' awareness </li></ul></ul><ul><li>Locally </li></ul><ul><li>New forms of SA culture emerging: </li></ul><ul><ul><li>'Afrostrocracy', </li></ul></ul><ul><ul><li>'Wholesome Heroes' </li></ul></ul><ul><ul><li>Not just a higher LSM phenomenon </li></ul></ul>
  19. 19. A range of sustainable attitudes and behaviours Eco Warriors Read green reports and magazines. Follow companies that are leading the charge. Ethical Badging Choose ethical to be chic Community Warriors Take a stand against inequality. Seek to give back to the community that helped them. Culture Jamming Critique corporate governement missteps and hypocrisy <ul><ul><li>We need more trees in our environment because our air is so polluted and there are people who still cut trees. Black Female, JNB , 18-25 </li></ul></ul><ul><ul><li>Load shedding is an environmental issue . Black Female, JNB , 18-25 </li></ul></ul><ul><ul><li>I try to preserve the environment, don't print everything, recycle paper. Black Male , JNB , 18-25 </li></ul></ul><ul><ul><li>I would rather adopt, why bring another child into this world when you can help another poor child that was just thrown away. I feel very strongly about that. I just hope my wife doesn't feel to strongly against that. White Male, Cape Town, 18-24 </li></ul></ul>
  20. 20. South Africa today: a ramping up of green and socially responsible initiatives
  21. 21. Sustainable innovation in SA: looking to the future and building on strengths <ul><li>Entrepreneurship built from hardship </li></ul><ul><li>Environmental tourism </li></ul>
  22. 22. Sustainable innovation in South Africa: looking to the future <ul><li>Recycling and reuse </li></ul>
  23. 23. The difference between innovation and sustainable innovation? Includes an impact assessment up front Dials down the fluff, dials up reality Greater importance is given to stakeholders/opinion leaders The process is more iterative to ensure product/service reality delivers on objectives We take a slightly different approach to consumer input to avoid over-claim and address sensitivity to greenwash 1 2 3 4 5 Branding For Good South Africa Conference – 13.10.10 Confidential
  24. 24. Thank you For more, contact Leslie Pascaud [email_address] or visit www.added-value.com Sign up for our Branding for Good News at www.added-value.com/Source/Newsletters

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