Due to increased stakeholder power and regulation, greater transparency, global warming, scarcer and costlier resources, and increasing populations, the focus on sustainability is here to stay and will only intensify over time. As a result, the private sector is following the lead of the United Nations and various sustainability-oriented governments and NGOs. lLeading organizations use a core set of tools to develop a sustainability self-portrait and help them manage for excellence. Doing good is unlikely to cost shareholders.--- Only 2% of the studies reviewed showed that managers who dedicate corporate resources to social contribution impose a direct cost to shareholders.
Volvo 's head of product planning, Lex Kerssemakers, said &quot; we all know that oil is running out ''. &quot;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 ,'' he said. &quot;If we don't do it now, we won't be ready in five years when oil may be prohibitively expensive.'’*
Some facts about waste: Every year we fill 11,942 miles of garbage trucks full with garbage. The average American employee consumes 2.5 cans of soda each day at work. BUT the beverage industry uses 46% less packaging in 2006 than in 1990 even with a 24% increase in sales. Almost 1/3 of the waste generated in the US is packaging. In 2008 Paper and Paperboard made up 31% of municipal waste. Plastics were 12%.
Nature is capital. There is nothing that we ingest, consume, wear live in or drive that didn’t come from the Earth. 90% of natural resources extracted from the Earth is wasted, ending up on factory floor.
The Penney Idea was adopted at JCPenney's first company convention in Salt Lake City in 1913. It was one of the first US business code of ethics, which include the objective &quot;To test our every policy, method, and act in this wise: &quot;Does it square with what is right and just?“ JCP’s ethics code is still in place. It’s CSR dept is an extension of this same ethos. As Jim Thomas explains his role, “My job is to be the conscience of the organization.” Think of it as ethics on a global scale.
US Offices create 12.1 trillion sheets of paper Per Year . A typical business office produces about 1.5 lbs of waste paper per employee per day. The average American attorney uses one ton of paper every year . Paper usage is rising by around 20% every year, with the average office worker using approximately 50 sheets of paper every day in the typical office. BUT … If you were to eliminate office paper from your waste stream, you can cut your waste bill by 50% or more. eNewsletters- Creating electronic versions of newsletters, magazines, and newspapers can drastically reduce the amount of paper thrown away every day. Useful link: Constant Contact – Provider of eNewsletter templates. w ww.ConstantContact.com Online Training Solutions Useful link: Osmosis – An intuitive learning management software. eFaxing vs. Paper Faxing Useful link: MyFax – Send and receive faxes via email. http://www.MyFax.com FT P Portals – FTP enab les companies to download/upload large files online. This helps eliminate printing an shipping costs. Useful link: File internet Protocol – Definition of how an FTP tool works. http://www.whatismyipaddress.com/ftp Green Print Useful link: GreenPrint – Fr ee software download. http://www.printgreener.com
More than 100 million trees are destroyed each year to produce junk mail.* http://www.articlesbase.com/environment-articles/top-15-shocking-facts-you-didnt-know-about-office-paper-waste-461807.html#ixzz1BDq8UyNA Under Creative Commons License: Attribution
The best part about going green is you get to become a part of a community of like-minded business owners who share your values. Many will end up becoming your customers.
The LOHAS or Lifestyles of Health and Sustainability Segment are the greenest of the green. At 19% of the market, LOHAS believe in the connectivity of the planet’s health and their health and use products and services that support their beliefs. Typically they are married, educated middle-aged females. Active at home and in their communities, they consider themselves stewards of the planet and are leading edge as early adoptors of green technologies. They are more loyal to companies that mirror their values and are influential in their communities and circle of friends. The flipside is that 71% will boycott a company whose practices they do not like. Distrustful of paid media, they consult the Internet and social forms of information. Naturalites foremost want a healthy lifestyle and are concerned about chemicals and toxins in the environment. They are 15% of the population and do things like purchase organic food - not for the environment, but for themselves and family, use no VOC paints and natural cleaning products. They see themselves as committed sustainability advocates, but really they are not as dedicated to green purchasing as LOHAS or even Drifters, the next category. Naturalites are the least likely to be college educated, and have the lowest income. Half live in the South and are more likely to be African-American. Cleaning services, dry cleaners, house painters and even restaurants should think about including this group in your marketing. Drifters, the largest group at 25%, are driven more by trends than a true belief system to be environmentally friendly or sustainable. They are younger and concentrated in coastal cities, unlike LOHAS, they have not yet established their values and ethics with their lifestyle choices. They are easily influenced by the media and not as likely to do their own research. But eager to pitch in, they recycle, use CFL light bulbs, shop at Whole Foods, but again aren’t serious about it. Drifters tend to have have a moderate income and larger household sizes with 1/3 having children under 18. Conventionals are the second largest segment. They are the practical ones. They are ones that will spend more money on ENERGY STAR appliances to save money on the electric bill, they recycle, reuse things to reduce waste and pinch pennies but not as motivated to buy organics or do other health related things as the LOHAS or Drifters. Usually they are males in the mid-to-late 40s with the highest income level of all the groups, and 25% of them are retired. Unconcerneds actually do represent the remaining 17% of the market. Demographics of the group are generally younger males living in the South with slightly below-average incomes and lower education levels.
Historically, marketers developed products that met consumers’ needs at affordable prices and then communicated the benefits of the brand in a memorable way. Today’s Sustainable marketing creates demand through credible, values-laden communications that offer practical benefits while empowering and engaging consumers in meaningful ways. One can no longer view people as mere “consumers” with a never ending appetite for stuff, but how your product or service can improve the life of the person that buys it without harming the lives of others or the environment. Education is also an important piece of sustainable marketing; educating your buyers to the whys of your product, service and actions.
Even Whole Foods, a national chain, runs a program to source local products.
Making Green Work For You!
MAKING “GREEN” WORK FOR YOU <ul><li>Profitable Sustainability Strategies </li></ul><ul><li>for Small Business Owners </li></ul>Anna M. Clark and Nancy Schneider EarthPeople, LLC
Presentation Outline <ul><li>What is sustainability? </li></ul><ul><li>Global trends affecting your business </li></ul><ul><li>Greenprint for common-sense sustainability </li></ul><ul><li>Save money through resource conservation </li></ul><ul><li>Maximize digital marketing and social media </li></ul><ul><li>How to avoid “greenwashing” </li></ul><ul><li>New Consumer vs. Old Consumer </li></ul><ul><li>Rewards! </li></ul>
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 <ul><li>Energy Security </li></ul><ul><li>Energy Efficiency </li></ul><ul><li>Renewable Energy </li></ul><ul><li>Clean Technology </li></ul><ul><li>Resource Conservation </li></ul>
Trend #1-Overdependence on Fossil Fuels. The Cost of Oil Dependence “ Improving America's oil security is the most significant near-term energy challenge the U.S. faces .” - James Woolsey, Fmr CIA Director ñ ñ 97%
What Large Corporations’ Executives Are Saying… <ul><li>“ 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,'' </li></ul><ul><li>"If we don't do it now, we won't be ready in five years when oil may be prohibitively expensive. “ </li></ul><ul><li>Volvo 's head of product planning, Lex Kerssemakers </li></ul>
Trend #2 Energy Energy Generation Creates Pollution Over 80% of electricity generation relies on carbon-based fossil fuels.
Trend #3 Water Water Matters <ul><li>Less than 1% of the world’s fresh water (about 0.007% of all water on earth) is readily accessible for direct human use. </li></ul><ul><li>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 </li></ul>Source: www.water.org
An EPA Partnership Program <ul><li>http://www.epa.gov/WaterSense/spaces/ci.html </li></ul>More Recognition Opportunities
The Reality: Living Beyond Our Means Source: http://www.myfootprint.org/en/ 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:
Opportunities: Efficient Companies Recoup $$$ <ul><li>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 </li></ul><ul><li>Stores and logistics centers recycled: </li></ul><ul><li>87,000 tons of cardboard </li></ul><ul><li>8,700 tons of plastic hangers </li></ul><ul><li>5,000 tons of other plastic </li></ul><ul><li>13 tons of expanded polystyrene </li></ul><ul><li>Stores recycle 75% of their waste. Supply chain centers recycle between 80-90%. JCP saves millions of dollars per year through these efforts. </li></ul>
<ul><li>eNewsletters. ( www.ConstantContact.com ). </li></ul><ul><li>Online Training Solutions such as Osmosis, an intuitive learning management software. </li></ul><ul><li>eFaxing. ( http://www.MyFax.com ). </li></ul><ul><li>FTP Portals. Learn more at: </li></ul><ul><li>http://www.whatismyipaddress.com/ftp . </li></ul><ul><li>Green Print. Free software download available at: </li></ul><ul><li> http://www.printgreener.com . </li></ul>Opportunities: The Web. 5 Ways to Save Paper with the Web Source: http://www.nurelm.com
Save Paper and Increase Sales with Digital Marketing 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! Social networking is where customers sell to customers! Digital Marketing is easier and cheaper! They are Free!! You don’t target people similar to your customers -- 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! Old School New Approach Junk Mail Facebook, Twitter Hardcopy Newsletters eNewletters Billboards Website
Stress-Free Social Media <ul><li>Maximize your online presence efficiently: </li></ul><ul><li>Effective website </li></ul><ul><li>Blog twice per month </li></ul><ul><li>Use a newsletter service </li></ul><ul><li>Facebook page </li></ul><ul><li>Twitter </li></ul><ul><li>Media relations </li></ul><ul><li>Consult with a social media expert </li></ul>
Common-Sense Sustainability <ul><li>Promote energy conservation in your PEOPLE </li></ul><ul><li>Get an energy audit for your FACILITIES </li></ul><ul><li>Recycle to handle waste in OPERATIONS </li></ul><ul><li>Sell and or use healthy or eco-friendly PRODUCTS </li></ul><ul><li>Replace costly advertising with social media to promote your BRAND </li></ul>
Green~wash Verb: the act of misleading consumers regarding the environmental practices of a company or the environmental benefits of a product or service. <ul><li>Risks: </li></ul><ul><li>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. </li></ul><ul><li>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. </li></ul><ul><li>The sustainability movement will lose the power of the market to accelerate progress towards sustainability. </li></ul><ul><li>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. </li></ul>BEWARE!
Market Predictions for 2011 <ul><ul><li>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) </li></ul></ul><ul><ul><li>Customers rule. Businesses will need to develop strategies that talk with their customers rather than at them. </li></ul></ul><ul><ul><li>Greater reliance on technology is creating opportunities to reach customers beyond their immediate geographical sphere. </li></ul></ul><ul><ul><li>In 2011 the gap will widen between businesses that have already started to implement environmental practices and those that have not. </li></ul></ul>
Points to Ponder * <ul><li>Green has become Mainstream and Cool. </li></ul><ul><li>Green consumers are strongly influenced by the recommendations of friends and family, and trusted 3rd parties. </li></ul><ul><li>Values guide consumer purchasing. Historically, consumers bought solely on price, performance and convenience. </li></ul><ul><li>Consumers don’t necessarily need to own products; services can meet their needs, sometimes even better. </li></ul><ul><li>Green inspires innovation that result in better consumer value, enhanced brands, and a stronger company. </li></ul><ul><li>Manufacturer and Retailer reputation count now more than ever. </li></ul><ul><li>Green is beyond saving the planet. </li></ul><ul><li>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. </li></ul>
Checklist <ul><li>To which generations do our consumers belong and what are the unique ways in which they express their environmental and social concerns? </li></ul><ul><li>To what extent do environmental issues affect the way consumers engage with our brand and the products in our category in general? </li></ul><ul><li>What are the top environmental, ethical and social issues of concern to our Consumers? Stakeholders? Employees? Suppliers? Retailers? Community? </li></ul><ul><li>What is our top environmental risk? </li></ul><ul><li>What are our competitors’ key sustainability-oriented initiatives? </li></ul><ul><li>What opportunities do we have to grow our sales and enhance our image through greener products and green marketing campaigns? </li></ul>
Consumer Groupings * <ul><li>Your Target </li></ul><ul><li>Represents </li></ul><ul><li>of the Market. </li></ul>83% *Source: New Rules of Green Marketing by Jackie Ottman
Ask <ul><li>Which segment(s) do our consumers fall into? </li></ul><ul><li>What are the most significant environment-related interests of our consumers? Health? Saving Resources? Animals? Local environment? </li></ul><ul><li>What motivates our consumers? What appeals to them in regard to actions you could take? </li></ul><ul><li>What can you do to align your business with your customers beliefs, values and actions? </li></ul><ul><li>Is there anything you are doing that could cause your customer to stop patronizing your business, or even boycott your business? </li></ul>
Think Global, Act Local <ul><li>Small to medium businesses generally fit into the new “local-vore” mind set. </li></ul><ul><li>Additional opportunities to source from/to local businesses. </li></ul><ul><li>Reinvests in the local community </li></ul>
Staying Ahead of the Curve Proactive Sustainability Helps Your Company Make Positive Changers Before Mandates <ul><li>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. </li></ul>
The downside of inaction… <ul><li>Waste of money, time, resources. </li></ul><ul><li>Customers are smarter and talking to each other. </li></ul><ul><li>Unprepared for mandates and regulations. </li></ul><ul><li>Corporate misdeeds are costly to companies—if people find out. </li></ul>
Rewards <ul><li>Earn publicity with the local, regional or even national media </li></ul><ul><li>Uniquely differentiate yourselves from competitors </li></ul><ul><li>Attract the interest of top job candidates </li></ul><ul><li>Attract consumers in the rapidly-growing green marketplace </li></ul><ul><li>Transform your company into industry leader </li></ul><ul><li>Reduce operating costs </li></ul><ul><li>Create brand distinction and recognition </li></ul><ul><li>Create significant competitive advantage </li></ul><ul><li>Enhance employee satisfaction </li></ul><ul><li>Become preferred vendor in green supply chains </li></ul><ul><li>Build credibility with stakeholders </li></ul><ul><li>Attract investors </li></ul>*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: http://earthpeopleco.com/ 1-800-597-6892