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Peloton nudges the Finnish economy towards energy efficiency

Peloton is an initiative of Demos Helsinki with the support of
Finnish Innovation Fund Sitra.
what influences behavior?


                                                        Nudge
Peer Action         Education        Media Coverage
     Social norms                                      Subsidies
                    Status      Chance
   Convenience                           Legislation

Reduce        Offering    Marketing                 Regulation
Complexity                           Price
             Peer                             Perceived
 Perceived   Comparison Opportunity to        Price
 Convenience            Test
PRAGMATIST APPROACH TO THE FUTURE

             NAL
        NATIO
(IN TER)
 POL  ITICS
                      emission limits, price for carbon, subsidies,...



  Climate                     acceptance for                                  Low-Carbon
                              new regulation
  Challenge                                                                   Society
                   participation, social innovations, lifestyle changes,...

  CITIE
       S
  GRO , PEER
      UPS,
 COM
     PANI
          ES
hypothesis 1: focus on choices

1) Predisposing factors (knowledge, attitudes, norms) are – at least partially – conducive to a change
towards low-energy lifestyle.
90 % Finns think that climate change is a fact / 85% consider it a serious threat / 80 % ready to take
action

2) Finland #7 in per capita energy usage amongst OECD countries. Change of attitudes has not
significantly changed behavior. Energy consumption is rising, meat consumption is rising etc.

3) Pro-environmental actions are more important than values. Most campaigns manage to raise
awareness but do not translate into action. The focus of policies targeting behavioral change has
shifted towards deliberative and participatory measures.

conclusion: influence the choice environment
consumers/citizens make their decisions in.
(Demos Helsinki 2009, Eva Heiskanen 2011, Finnish Environment Institute 2009, WWF Living Planet Index 2010, IEA 2011)
hypothesis 2: focus on lifestyles

1) Both the interventions and research on consumers' energy-related behavior have
traditionally concentrated on direct energy use (heating, electricity, transport).
Needed reduction in energy consumption requires adoption of completely new
habits.

2) The outstanding research by Finnish Environment Institute (ENVIMAT)
highlights the key consumer questions: housing, transport, food.

3) Energy scarcity is less contested than debate on emissions. Energy use is
indicative of emissions.
(Demos Helsinki 2009: Gatekeepers changing consumers' behaviour in energy consumption)
Mistä suomalaisen hiilijalanjälki koostuu?
!"#$%&'()%$"(%*#+,'-%.''$/+0-$%'.%#%10--%*'-)0)$%'.2

            %%%3'4)0-5
              Asuminen



         %%%6+#-)/'+$
           Liikkuminen



                %%%1''&
                  Ruoka



        Kuluttaminen
      7'-)48/9'-

             Vapaa-aika
          %%%%%:(0)4+(

        Matkustaminen
      %%%%%%%%%%%%
      %%%%%%%%%%%%%6+#;(<



                                                                               ‹#›
                               Source: Envimat www.ympäristö.fi/syke/envimat
hypothesis 3: gatekeepers are key to
behavior change

1) Gatekeepers define the choice environments as they transform people´s needs
and desires into choices and decisions. They enable or deny access to low-energy
behavior. Peers and professionals close to the consumer do this in terms of energy-
related practices.

2) Previous research has considered legislators and green businesses as
gatekeepers for energy consumption. This view tends to underestimate the
complexity of the selling/purchasing process with its subtle factors leading to a
decision. Therefore only a small part of energy gatekeepers have understood that
they have this role.
(Demos Helsinki 2009: Gatekeepers changing consumers' behaviour in energy consumption)
gatekeepers change
                               the choice environment
                               Testing Products
                               and Services
      Peer Production

                                              Cooperation with
                                              Pioneers

Gatekeepers


                                                  More and Better
                                                  Products and
New Behavior                                      Services



               Better Choice           New Legislation
               Environment
WHO HAS A VESTED INTEREST?
[Peloton]
! Peloton is the main group in a cycling tournament. In Peloton the competitors
  cycle close to each other to save energy and to gather strength for a break-out.
! Peloton is a joint effort of Demos Helsinki and Sitra to boost new, greener
     tommi.laitio@demos.fi
     www.demos.fi
  economy.
how peloton works?

We engage with gatekeeper communities on a human level.
We use participatory future studies and design thinking
methods in two-day intensive workshops.

The workshops bring the competitors togethers. Companies
send people from every level of the organisation (altogether
20–25 participants). By raising awareness of all competitors
simultaneously, we create hunger to be the first in executing a
good idea. Low-energy future is tackled by creating ideas for
new products and services.

In 2009–2011 we have done workshops for instance for
parents of small children, hardware stores, lifestyle media,
HR, domestic travel and hospitality, food journalists, home
economics teachers, social housing and house managers.
Our aim has been to...
kickstart low-energy innovation and commercialisation in the most important consumer companies.

We have been successful in...
bringing new products and services out and adding value to old ones in most of the organisations we
have engaged with.
some results

•Biggest hardware store chain K-Rauta launched a a new
service concept for offering a full-service energy efficiency
home renovation. (understanding how comfort, ease and
savings can be linked with sustainability and profitable
business)
•Fastest-growing women´s magazine Olivia increased writing
on domestic travel and vegetarian cuisine. (understanding
sustainability as helping readers make better choices)
•Next generation travel agency Nopsatravels helping people
find local luxury. (understanding the unique value and
experiential potential in domestic travel)
•Fazer Food Services launched a climate-friendly/seasonal
lunch option. (branding climate-friendly cuisine as an added
value, not as opting out, emphasis on taste)
•Food services of the City of Lahti set themselves strict energy
conservation targets.
peloton innovation camp

In November and December 2011 we
organised 2 two-day startup camps for low-
energy business. Over 150 professionals
from various sectors worked voluntarily in 16
teams to develop better services and
products.

winning concepts
- Wasted Space: next generation real estate
firm utilising wasted and underused spaces
- Weego: car-sharing service
- Hyvikki: Rebranding food close to its last
date of purchase
- Powerhouse: app helping energy
companies reduce consumption peaks and
consumers to follow their usage
questions?

Demos Helsinki
http://demos.fi/english
http://www.peloton.me/in-english/

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Peloton in English

  • 1. Peloton nudges the Finnish economy towards energy efficiency Peloton is an initiative of Demos Helsinki with the support of Finnish Innovation Fund Sitra.
  • 2. what influences behavior? Nudge Peer Action Education Media Coverage Social norms Subsidies Status Chance Convenience Legislation Reduce Offering Marketing Regulation Complexity Price Peer Perceived Perceived Comparison Opportunity to Price Convenience Test
  • 3. PRAGMATIST APPROACH TO THE FUTURE NAL NATIO (IN TER) POL ITICS emission limits, price for carbon, subsidies,... Climate acceptance for Low-Carbon new regulation Challenge Society participation, social innovations, lifestyle changes,... CITIE S GRO , PEER UPS, COM PANI ES
  • 4. hypothesis 1: focus on choices 1) Predisposing factors (knowledge, attitudes, norms) are – at least partially – conducive to a change towards low-energy lifestyle. 90 % Finns think that climate change is a fact / 85% consider it a serious threat / 80 % ready to take action 2) Finland #7 in per capita energy usage amongst OECD countries. Change of attitudes has not significantly changed behavior. Energy consumption is rising, meat consumption is rising etc. 3) Pro-environmental actions are more important than values. Most campaigns manage to raise awareness but do not translate into action. The focus of policies targeting behavioral change has shifted towards deliberative and participatory measures. conclusion: influence the choice environment consumers/citizens make their decisions in. (Demos Helsinki 2009, Eva Heiskanen 2011, Finnish Environment Institute 2009, WWF Living Planet Index 2010, IEA 2011)
  • 5. hypothesis 2: focus on lifestyles 1) Both the interventions and research on consumers' energy-related behavior have traditionally concentrated on direct energy use (heating, electricity, transport). Needed reduction in energy consumption requires adoption of completely new habits. 2) The outstanding research by Finnish Environment Institute (ENVIMAT) highlights the key consumer questions: housing, transport, food. 3) Energy scarcity is less contested than debate on emissions. Energy use is indicative of emissions. (Demos Helsinki 2009: Gatekeepers changing consumers' behaviour in energy consumption)
  • 6. Mistä suomalaisen hiilijalanjälki koostuu? !"#$%&'()%$"(%*#+,'-%.''$/+0-$%'.%#%10--%*'-)0)$%'.2 %%%3'4)0-5 Asuminen %%%6+#-)/'+$ Liikkuminen %%%1''& Ruoka Kuluttaminen 7'-)48/9'- Vapaa-aika %%%%%:(0)4+( Matkustaminen %%%%%%%%%%%% %%%%%%%%%%%%%6+#;(< ‹#› Source: Envimat www.ympäristö.fi/syke/envimat
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  • 11. hypothesis 3: gatekeepers are key to behavior change 1) Gatekeepers define the choice environments as they transform people´s needs and desires into choices and decisions. They enable or deny access to low-energy behavior. Peers and professionals close to the consumer do this in terms of energy- related practices. 2) Previous research has considered legislators and green businesses as gatekeepers for energy consumption. This view tends to underestimate the complexity of the selling/purchasing process with its subtle factors leading to a decision. Therefore only a small part of energy gatekeepers have understood that they have this role. (Demos Helsinki 2009: Gatekeepers changing consumers' behaviour in energy consumption)
  • 12. gatekeepers change the choice environment Testing Products and Services Peer Production Cooperation with Pioneers Gatekeepers More and Better Products and New Behavior Services Better Choice New Legislation Environment
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  • 14. WHO HAS A VESTED INTEREST?
  • 15. [Peloton] ! Peloton is the main group in a cycling tournament. In Peloton the competitors cycle close to each other to save energy and to gather strength for a break-out. ! Peloton is a joint effort of Demos Helsinki and Sitra to boost new, greener tommi.laitio@demos.fi www.demos.fi economy.
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  • 17. how peloton works? We engage with gatekeeper communities on a human level. We use participatory future studies and design thinking methods in two-day intensive workshops. The workshops bring the competitors togethers. Companies send people from every level of the organisation (altogether 20–25 participants). By raising awareness of all competitors simultaneously, we create hunger to be the first in executing a good idea. Low-energy future is tackled by creating ideas for new products and services. In 2009–2011 we have done workshops for instance for parents of small children, hardware stores, lifestyle media, HR, domestic travel and hospitality, food journalists, home economics teachers, social housing and house managers.
  • 18. Our aim has been to... kickstart low-energy innovation and commercialisation in the most important consumer companies. We have been successful in... bringing new products and services out and adding value to old ones in most of the organisations we have engaged with.
  • 19. some results •Biggest hardware store chain K-Rauta launched a a new service concept for offering a full-service energy efficiency home renovation. (understanding how comfort, ease and savings can be linked with sustainability and profitable business) •Fastest-growing women´s magazine Olivia increased writing on domestic travel and vegetarian cuisine. (understanding sustainability as helping readers make better choices) •Next generation travel agency Nopsatravels helping people find local luxury. (understanding the unique value and experiential potential in domestic travel) •Fazer Food Services launched a climate-friendly/seasonal lunch option. (branding climate-friendly cuisine as an added value, not as opting out, emphasis on taste) •Food services of the City of Lahti set themselves strict energy conservation targets.
  • 20. peloton innovation camp In November and December 2011 we organised 2 two-day startup camps for low- energy business. Over 150 professionals from various sectors worked voluntarily in 16 teams to develop better services and products. winning concepts - Wasted Space: next generation real estate firm utilising wasted and underused spaces - Weego: car-sharing service - Hyvikki: Rebranding food close to its last date of purchase - Powerhouse: app helping energy companies reduce consumption peaks and consumers to follow their usage

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