David Steuer "Sustainability: Why Bother?"

Sustainability: Why Bother? David Steuer, VP, Client Strategy, Saatchi & Saatchi S July 27, 2009 CONFIDENTIAL, DO NOT DISTRIBUTE Please save trees by keeping this document electronic, or recycle.

Assess & Imagine Corporate Strategy Strategy diagnostic “North Star” goal-setting Strategy refinement Organizational Brand Strategy Strategy Brand positioning Organizational Lifecycle opportunity opportunity assessment analysis Sustainability Stakeholder Communication engagement strategy and Channel Strategies Implement & Personal sustainability Cause marketing Focus & certification Measure Design • LCA measurement/ reporting • Supply chain innovation Deliver End-to-End • Public Relations Sustainability Strategy and • Creative • Shopper marketing Implementation 2

Sustainability is much more than “Green” 3

SOCIETY, TECHNOLOGY, RESOURCES 7

Legislation is Mandating Change 8

$100 Billion Stimulating—Energy Sector 9

Social and Economic concerns are just as important to individuals as Environmental ones. Global shopper importance ratings: Social Economic Environmental Cultural Issues that affect Issues that affect Issues that affect Issues all members of how humans meet Earth's ecology, surrounding how society, including their basic needs, including climate communities poverty, violence, including change, manifest identity injustice, employment preservation of and preserve and education, health opportunities, natural resources, cultivate care, and labor and access to health carbon footprint, traditions and human rights care, and safe and conservation customs from housing generation to generation 59% 53% 58% 36%

Increased Consumer Demand Sustainability fast becoming mainstream, increasing from 12% to 36% in 2 years. 2007 2009 Pure Blues <1% Pure Blues <1% Core Blues 8% Core Blues 11% Dark 27% Blues Light Blues 68% Light 54% Blues Disengaged 19% Disengaged 11% 12

My Lifestyle is Blue Dreams of a world where she can ALWAYS buy sustainable products Core Blues Views sustainability is part of her identity Believes she is leveraging consumerism to participate in a larger cause Incorporates sustainable products into her life at all levels, from asparagus to shampoo to solar panels My Actions Are Blue …for Me, My Family, My Community and the Planet Possesses confidence and pride around her depth of knowledge and engagement in the world of sustainability Dark Blues Sees the regular purchase of green products as taking better care of her family Understands the environmental impact of some of her actions and teaches her children about it Considers herself a spokesperson for the mission of sustainability The Health and Wellbeing of My Family Comes First Believes in global warming and is intrigued by “going-green” Isn’t often familiar with the term “sustainability” Light Blues Has purchased the “low hanging fruit” like green cleaners, compact fluorescent light bulbs Needs to encounter green products at her regular retailer at an affordable price Sees sustainability as shrouded in mystery, and doesn’t think she’ll ever understand 13

Sustainable products are still the fastest growing sector Source: Datamonitor's Product Launch Analytics 14

Retailers are Challenging Manufacturers 15

Establishing New Standards and Measurements 16

…And Innovating for Competitive Advantage 17

Increasingly, They Are Using Their Position as the Sustainability “Gatekeepers” to Win the Voice of the Consumer. 18

Yet in almost all cases, sustainability is not top-of-mind in the store. Globally, 22% of shoppers think about sustainability when shopping. 91% of shoppers would like to be reminded more about sustainability while shopping.

Who can they trust to help them? Only 55% believe the media. Few (14%) trust themselves to determine actual sustainability of products. Only 19% believe they have enough information to evaluate sustainable claims. 20

48% of shoppers say that greater availability of sustainable products would increase their purchases – they struggle to find these options. 21

Do Something 22

Nothing: No Longer an Option 23

Nothing: No Longer an Option Distribute Manufacture Use Recycle Product Formulation Dispose Extract 24

WHAT’S YOUR STORY? 25

Across the globe, people want to feel like they are doing something to help. An altruistic feeling drives purchasing. Ranking of Reasons for Wanting to Purchase Sustainable Products: Feel like I’m helping 1 1 3 2T 1 1 1 1 Sends message to companies that we want better 6 3 6 2T 5 2 2 3 products Reduce packaging waste 4 2 2 4 6 7 3 4 Make my home safer 5 7 7 1 2 4 7 7 Save Energy 3 5 1 7 4 3 6 6 Save money 2 4 4 6 7 5 5 5 Teach children conservation 7 6 5 5 3 6 4 2 Q. What is your primary reason for wanting to buy sustainable products? Rankings based on % selecting each response of 7 options.

Consumer Values: Ways in to Sustainability 27

Consumer Values: Ways in to Sustainability 28

Focus Areas for Values Groups 29

Use TEN Transparency Engagement Networks 31

You can run, but you can’t hide. Nearly half of all shoppers (48%) strongly agree/agree with the statement: “I always research the products I buy on my own to evaluate how sustainable they are.” 33

Transparency: Addressed the Warning? 34

45% of shoppers say that more ingredient/materials information motivates them. 35

Transparency: Traceability at FindtheFarmer.com http://findthefarmer.com/details.php?lotCode=15JAN10&FarmID=12 36 36

Employee Engagement: Walmart Personal Sustainability Project Results • More than 500,000 Associates voluntarily adopted Personal Sustainability Projects • Over 19,000 employees quit smoking for $34 million in estimated annual savings • Almost 185,000 pounds of weight lost by Associates • 1,243,000 miles walked, swam, and biked • Created over 16,000 “Idea Groups” around Personal Sustainability • More than 4 million pounds of materials recycled 37

TEN Integrated: Frito Lay http://www.youtube.com/watch?v=XOraijjCHLA 38 38

Networks: Waste = Food 39 39

Networks: SVN (Sustainable Value Network) 40

Networks: NGOs 41 41

David Steuer "Sustainability: Why Bother?"

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David Steuer "Sustainability: Why Bother?" — Presentation Transcript