April 18, 2011Sustainability 2.0:Current trends at the confluenceof social media and CSR“We follow our customers, and so, ...
Social networks are changing sustainability reporting & stakeholder engagementSustainability 2.0 framework                ...
Coca-Cola, Starbucks and Disney topped the Zumer/SB Insights 2011 index       Top 10 in the Zumer/SB Insights Sustainabili...
82% of CSR professionals to increase Facebook investment in 2011Current Facebook activities                               ...
Twitter will the #1 source of sustainability news by 2015Sustainability presence on each social network (current / future)...
Companies use YouTube to generate positive feedback and dialoguePercent of companies creating their own YouTube content:  ...
The manufacturing and auto sectors have high sustainability blog ratesIndustries with high percentage1) of sustainability ...
Videos, idea innovation and education are growing rapidly on CSR websitesZumer’s five pillars of a comprehensive CSR/susta...
Conclusions and case studiesConclusions:                                                                                  ...
About us and contact detailsAbout us:                                                                                For m...
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Sustainability 2.0 - The Confluence of Sustainability and Social Media


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We analyzed the activity of Fortune's 50 most admired companies list on the three major social networks and supplemented those findings with interviews from almost 50 of the world's largest brands. Together, these pieces create the most complete look available today at the intersection of social media and sustainability.

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Sustainability 2.0 - The Confluence of Sustainability and Social Media

  1. 1. April 18, 2011Sustainability 2.0:Current trends at the confluenceof social media and CSR“We follow our customers, and so, not surprisingly, we’reinvesting in our social networking activities” – VP,Sustainability, U.S.-based consumer electronics companySustainability 2.0 is a joint offering from Sustainable Life Mediaand Zumer Advisory Services, which uses targeted researchand specialist insight to explore solutions to the biggestsustainability reporting and communications challenges. Thisresearch report is intended to help corporate sustainabilityexecutives navigate the opportunities and challenges related tothe confluence of social media and sustainability. Executive Summary 1
  2. 2. Social networks are changing sustainability reporting & stakeholder engagementSustainability 2.0 framework Executive summary The integration of social media and sustainability is creating new business opportunities: New Business Opportunities •  31 of the 45 executives we spoke with confirmed that social media and sustainability are at the forefront of their strategies to drive customer loyalty, Sustainability & Reporting retention and conversion. Companies are using sustainability-themed social media to win new customers and keep existing customers. •  76% of sustainability professionals interviewed believe that their investment in Facebook Twitter sustainability-themed social media will help gain market share, increase the size of the overall market, or, ideally, both. The confluence of social media and sustainability is supercharging business Sustainability performance in three core sustainability functions—reporting and 2.0 t compliance; stakeholder engagement; and operational efficiency: men Blogosphere YouTube •  We found that reports are getting shorter and more interactive. On average, g ag e 60% of companies studied are including videos in their sustainability reporting n er E and 2/3 of companies generate content for their corporate YouTube channel. CSR The average sustainability report has reduced in length by more than 25% hold website during the past four years. Stake Marketing & Communications •  Social media is impacting the way leading corporations are planning and executing their business practices.  As an example, companies have been able to increase internal recognition of their sustainability goals, on average, by 10-15% through the use of Facebook, Twitter and YouTube. This is resulting in greater compliance with energy, waste and water efficiency strategies. Executive Summary 2
  3. 3. Coca-Cola, Starbucks and Disney topped the Zumer/SB Insights 2011 index Top 10 in the Zumer/SB Insights Sustainability 2.0 index What sustainability professionals said about their peers: !"#$%&()"*+Rank Company Facebook Twitter YouTube Blogosphere CSR Website Fortune ranking •  “We really like what Coca-Cola is doing at the moment. They are the most1 Coca-Cola 1 4 11 18 4 10 progressive company in the Food and Beverage industry in terms of their social2 Starbucks 2 2 12 28 1 26 media.” – Vice President , Corporate Social Responsibility, U.S.-based fast-food3 Walt Disney 3 8 9 31 3 19 restaurant chain4 Google 9 1 1 2 44 2 •  “A couple of years ago we did some benchmarking of our CSR presence on5 Intel 15 23 4 10 10 31 social media platforms. Subsequently, we did a facelift of our CSR and then6 McDonalds 4 10 32 22 5 14 looked again at all of our peers across industries. Guess what, we felt that the7 Toyota 27 13 25 1 8 7 landscape was pretty bleak, and that we had an opportunity to stand out.” –8 BMW 5 43 2 5 24 22 Vice President, Sustainability, U.S.-based food and beverage company9 General Electric 36 12 20 14 2 1610 Southwest Airlines 6 3 16 36 24 12 •  “Starbucks does a really good job. They are leading edge thinkers in every respect. They have pioneered this idea of fewer CSR measures. And, of course, Bottom 10 in the Zumer/SB Insights Sustainability 2.0 index their Twitter activities are far and away the best among consumer products companies.” – Vice President, Corporate Citizenship, UK-based high-street !"#$%&()"*+ retailerRank Company Facebook Twitter YouTube Blogosphere CSR Website Fortune ranking40 Nestle 29 40 39 35 24 34 •  “In the tech sector Intel has the best combination of social media and41 FedEx 38 41 36 23 31 13 sustainability. Hewlett-Packard and Microsoft are in the second tier. I have42 DuPont 38 36 38 21 38 49 never been impressed by Google or Apple.” – Vice President, Sustainability,43 Wells Fargo 35 39 42 17 40 39 U.S.-based enterprise services and software company44 United Parcel Service 34 38 33 49 20 3345 Goldman Sachs 38 43 46 8 42 8 •  “We have seen Citigroup as a leader in the Financial Services sector, but some46 General Mills 25 43 45 41 31 47 of the other companies—Goldman, Morgan Stanley, Berkshire Hathaway—47 Costco 17 43 43 43 44 21 have sort of thumbed their nose at sustainability. We’ll see if it catches up with48 Singapore Airlines 37 31 46 48 44 27 them” – Product Manager, Sustainability Marketing, U.S.-based financial49 JP Morgan Chase 38 43 46 45 35 18 services companies50 Berkshire Hathaway 38 43 46 33 49 3 Executive Summary 3
  4. 4. 82% of CSR professionals to increase Facebook investment in 2011Current Facebook activities What the professionals said:% of companies1) Of companies1) •  “I’m pushing for our Facebook profile to bewith a Facebook with a Facebook Post sustainability content 30% a little less product focused and a little moreprofile? 26% profile: sustainability focused. We need to make sure Facebook that our stakeholders aren’t hearing one profile Post wall videos 57% message through our larger corporate communications strategy and a different No profile message on Facebook” – Vice President, 74% Respond to wall comments 59% Sustainability, U.S.-based food and beverage company Allow wall comments 89% •  “As for Facebook, we don’t yet have a clear strategy. There is a lot more management required on Facebook and we don’t have theProjected Facebook activities internal resources” – Vice President, Corporate Social Responsibility, U.K.-based% of companies Projected annual US dollars $409 utilities companythat will invest in expenditure onFacebook initiatives sustainability $352 •  “Facebook is our social media base becausein 2011 & 2012? Facebook initiatives it’s where our customers are—the fastest 18% (2010-2014, million) $297 growing demographic on Facebook is 35-50 $259 $221 year old women” – Product Manager, U.S- Will invest in Facebook based household supply company Will not invest •  “We have a basket of product-specific Facebook accounts and Twitter accounts, but we’re not really sure how to use them in 82% unison and we have unused content” – Vice President, Sustainability, U.S.-based food 2010 2011F 2012P 2013P 2014P manufacturer1) Fortune 50 Most Admired Companies Executive Summary 4
  5. 5. Twitter will the #1 source of sustainability news by 2015Sustainability presence on each social network (current / future) What the professionals said:Q: How strong is your presence on each social network in 2011? How strong will it be in 2015? % change 2011-2015 •  “When I took over our sustainability communications, I didn’t want our messaging to ‘go dark’ between annual CSR reports. My first Twitter 2011 18% 73% 9% step was to develop our presence on social media, first through JustMeans and now +54% through Twitter. I’m confident that in 18 Twitter 2015 72% 22% 6% months Twitter will be the number one source of sustainability news. We don’t really use JustMeans anymore.” – Vice President, Facebook 2011 36% 45% 18% Sustainability, U.S. food and beverage company +32% •  “I think for Facebook, we have 12 product- specific accounts. Our problem, however, is Facebook 2015 68% 25% 7% that we’re not sure how to use them in unison. There’s a lot of unused content.” – Vice President, Sustainability, U.S.-based food and YouTube 2011 17% 46% 37% beverage company +24% YouTube 2015 41% 27% 32% •  “We don’t leverage our sustainability accomplishments on Twitter and Facebook. Those two platforms primarily serve as Company blog 2011 45% 18% 36% community-generated platforms” – Head of Community Engagement, U.S.-based consumer +4% electronics comapny Company blog 2015 49% 24% 27% •  “I’m using Twitter to tell our CSR and sustainability story” – Head of Corporate Social Responsibility, UK-based utilities company Strong Average Minimal Executive Summary 5
  6. 6. Companies use YouTube to generate positive feedback and dialoguePercent of companies creating their own YouTube content: What the professionals said:66% of companies •  “We believe that there are many opportunities to bring CSR to life; one thing we“broadcast 10% focus on is leveraging the power of video to communicate our initiatives.” – Vice President, Sustainability, U.S.-based internet services companythemselves” 24% •  “For the moment our self-generated YouTube content is done on the cheap purposefully. We did not want our videos to feel over-produced. We are not trying to produce a slick video, in fact all the videos that you find on our CSR site are 66% unrehearsed. The idea is to catch people doing what they would already be doing, describing their day-to-day commitment to environmental and social responsibility.” – Vice President, Corporate Social Responsibility, U.S.-based fast- moving consumer goods retailer Yes No No You Tube channel •  “We’re looking for any kind of authentic way to communicate. There are certainly financial constraints as well, but we want to get the word out that we’re open toUser comments on corporate YouTube channels: discussion. YouTube is a great way to have conversations around the issues our stakeholders care about.” – Product Manager, U.S.-based household products95% of user companycomments are 3% 2%positive •  “We don’t yet leverage our sustainability accomplishments on YouTube; most of the videos you will find on our channel are consumer-generated.” – Vice President, Corporate Communications, U.K.-based retailer 51% 44% •  “YouTube gets at a specific audience of customers and bloggers. Our hope is that the message then disseminates more broadly because the CSR news-makers are posting information to more mainstream platforms like Facebook and Twitter. We use other platforms to get through to other types of stakeholders, like suppliers and NGOs.” – Vice President, Corporate Social Responsibility, U.S.-based consumer products company Very positive Positive Negative Very negative Executive Summary 6
  7. 7. The manufacturing and auto sectors have high sustainability blog ratesIndustries with high percentage1) of sustainability blog activity: What the professionals said: •  “We use each medium in a different way; blogs are useful to Average 44% 56% control content. We can discuss a range of things on our corporate CSR blogs, link to lots of other content and feel Automotive 75% 25% confident that it will get picked up by other blogs. The corporate blog is a safe space—you’re not out there in the Consumer electronics 100% big bad world, therefore it is good for pushing boundaries and discussing new topics.” – Vice President, Sustainability, Enterprise services 40% 60% U.K.-based utilities company Financial services 60% 40% •  “Our corporate blog is for all our corporate communications. We have a direct CSR blog, which is read FMCG 25% 75% by a lot of sustainability bloggers. Information on our CSR blog doesn’t live elsewhere.” – Vice President, Sustainability, Food and beverages 50% 50% U.S.-based fast-food restaurant chain Internet services 100% •  “We started our corporate blog about 5 years ago. The idea was that if other blogs are talking about us, we had better Manufacturing 100% get our side of the story out there as well. We have now found that blogging is a very good way to have a dialogue in Retail 33% 67% today’s world.” – Vice President, Sustainability, U.S.-based packaged consumer goods comapny Travel 67% 33% •  “Companies want to be very accessible –now they have the opportunity. I’ve seen some incredible collaborations % of companies with high sustainability blog activity where companies work directly with bloggers to produce great content, and because of the blog partnership it gets % of companies with low sustainability blog activity distributed widely.” – Greta Eagen, Sustainability blogger, FashionMeGreen.com1) Any company with over 3% overall blog comments relating to sustainability is defined as “high sustainability blog activity” Executive Summary 7
  8. 8. Videos, idea innovation and education are growing rapidly on CSR websitesZumer’s five pillars of a comprehensive CSR/sustainability website Development % companies % companiesPillars Description Attributes trend 2011 2010 Pros Cons Industry opinion (sustainability professionals) A Website •  CSR website linked to 94% 88% •  First point of contact for •  Can be buried within •  “Websites are becoming increasingly corporate homepage stakeholders searching for corporate websites competitive; hard to stay on top of trends”information Access to sustainability information Reporting •  Annual reports available 80% 78% •  Reports provide historic •  Reports can be opaque, •  “Reporting is essential. It’s more effort to not for download data and assessable metrics challenging to navigate report than to report these days.” B Videos •  Videos (on website, in 60% 44% •  Make sustainability •  Does not always •  “We have been using videos for communication reports, on YouTube) information digestible for reference most important from the executive team. It’s something we can Videos pertaining to CSR activities diverse stakeholder groups information put together quickly.” C Sharable content •  CSR content sharable to 42% 34% •  Enables rapid sharing •  Saturation of •  “We link to Facebook and YouTube. Maybe Facebook, YouTube and and spreading of CSR information; stakeholder Twitter next, although, we like to wait and see Share Twitter content fatigue what happens.” D Commentary •  Stakeholders can post 26% 24% •  Creates a simple medium •  Can lead to negative •  “It can be hard to handle all the comments; but publicly viewable to hear from stakeholders comments / criticism it’s a nice idea.” Dialogue and commentary comments on CSR website Question & answer •  Stakeholders can post 28% 22% •  Companies can respond •  Risk of having questions •  “Q&A has been really useful for us. We can questions and receive directly to stakeholders’ not responded to respond to complaints immediately.” answers on CSR website CSR concerns Idea innovation •  Stakeholders to post 22% 12% •  Help companies crowd- •  Challenge for companies •  “The drive to idea innovation platforms will ideas on specific challenges source ideas to manage glut of ideas definitely continue.” E Gaming •  Gaming functionality on 14% 8% •  Give stakeholders a way •  Can take people away •  “Gaming is going to be the next big CSR website to have fun on CSR from serious CSR issues thing.” website Education •  Educational section(s) on 54% 36% •  Reach stakeholders •  Education and action •  “We’ve been doing this for a long time, will Engagement CSR website through knowledge sharing not always symbiotic certainly continue.” & best-practice sharing Volunteering •  Ability for stakeholders 12% 6% •  Way for companies to •  Can lead to management •  “This is a great idea. I’d love to make it to volunteer to contribute solicit help from challenges happen.” to specific initiatives concerned stakeholders Executive Summary 8
  9. 9. Conclusions and case studiesConclusions: Case studies Platform Case study Company Key findingsAs companies look to 2011, three trends will emerge Facebook •  Coca-Cola’s Live Positively campaign more popular1)  Continued and increased integration of sustainability and social media activity than PepsiCo’s Refresh Everything campaign by a margin of 71% to 29% in survey of over 600 Facebook users2)  The shortening and digitizing of sustainability reports •  Stakeholders indicated that they liked the gaming and education opportunities on Live Positively3)  Significant increase in sustainable social media investment Twitter •  Starbucks has used its Twitter feed to “enter peoples’ homes” – this is part of a larger strategy to shift Starbucks from a retailer of coffee and related products to a consumer packaged goods company •  Starbucks uses Twitter to help control users’ experience with its products outside of stores Investment in sustainable social media YouTube •  “Swagger Wagon” video by Toyota has over 8.3 Q: By how much do you expect to increase your company’s investment in sustainable social media in 2011? million YouTube hits. It blurs the line between traditional marketing and CSR. 36% •  The video is one of only a handful that use humor 83% of companies to in an effort to disseminate a larger sustainability increase investment in 2011 28% message Blogosphere •  In 2009 and 2010, Dell was criticized actively by the blogosphere for wasteful packaging and not removing PVCs from its products by the scheduled 12% date. In both cases, Dell was able to quell criticism 11% by actively engaging prominent bloggers and 7% explaining its plans to remediate the issues. 6% CSR website •  General Electric’s Ecomagination platform is at the forefront of next-generation CSR websites. Planned and developed with the help of GreenOrder the website includes polls, idea innovation, videos, +25% 20-25% 10-20% 0-10% No change Negative education and volunteer opportunities. Executive Summary 9
  10. 10. About us and contact detailsAbout us: For more information, please contact:Zumer Interactive, Inc – Zumer Advisory ServicesZumer provides leading corporations with research, strategy consulting and software- Jonathan Godsall, Co-Presidentas-a-service to improve the financial performance of their sustainability investments. Jgodsall@zumer.comWith offices in San Francisco, British Columbia and London, Zumer serves both Twitter: @ZumerIncglobal and local corporations seeking to uncover new business opportunities createdby the confluence of sustainability and social media. USA | 901 Mission Street, Suite 105 | San Francisco, CA | 94103 UK | 34b York Way | London, England | N1 9AB Canada | 180 Olive Street | Victoria, BC | V8Z 1B7 Sustainability Strategy Consulting San Francisco | 415.706.8054 London | 075.8029.2672 Victoria | 250.507.6567Sustainable Life Media, Inc. – SB Insights Thomas Miner, Executive ProducerSustainable Life Media is the leading producer of sustainable business conferences and thomas@sustainablelifemedia.comeducational events, with supporting products and services that include targeted e- Twitter: @thomasminerjrnewsletters, training, an online learning resource and community and more. Were hereto inspire and support innovation for sustainability by linking people with ideas and Corporate HQ | Sustainable Life Media, Inc. | 608 Burlingame Ave. | Burlingame,solutions that are creating positive change in the global business marketplace. California | 94010 San Francisco office | 602 20th Street | San Francisco, California | 94107 Corporate | phone: 650.344.9693 | fax: 650.240.1370 San Francisco | phone: 415.626.2212 | fax: 650.240.1370 Executive Summary 10