This document discusses why sustainability is important for businesses. It argues that sustainability is about more than just being green - it also encompasses social and economic issues. Consumer demand for sustainable products is growing significantly. Retailers are challenging manufacturers to be more sustainable. Transparency, engagement, and networks are key ways for businesses to connect with consumers on sustainability values and priorities.

1. Sustainability: Why Bother?
David Steuer, VP, Client Strategy, Saatchi & Saatchi S
July 27, 2009
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2. 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

3. Sustainability is much more than “Green”
3

7. SOCIETY, TECHNOLOGY, RESOURCES
7

8. Legislation is Mandating
Change
8

9. $100 Billion Stimulating—Energy Sector
9

10. 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%

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12. 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%
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13. 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

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

15. Retailers are Challenging Manufacturers
15

16. Establishing New Standards and
Measurements
16

17. …And Innovating for Competitive Advantage
17

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

19. 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.

20. 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

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

22. Do
Something
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23. Nothing: No Longer an Option
23

24. Nothing: No Longer an Option
Distribute
Manufacture Use
Recycle
Product
Formulation
Dispose
Extract
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25. WHAT’S
YOUR
STORY?
25

26. 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.

27. Consumer Values: Ways in to Sustainability
27

28. Consumer Values: Ways in to Sustainability
28

29. Focus Areas for Values Groups
29

31. Use TEN
Transparency
Engagement
Networks
31

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33. 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

34. Transparency: Addressed the Warning?
34

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

36. Transparency: Traceability at FindtheFarmer.com
http://findthefarmer.com/details.php?lotCode=15JAN10&FarmID=12
36
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37. 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

38. TEN Integrated: Frito Lay
http://www.youtube.com/watch?v=XOraijjCHLA
38
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39. Networks: Waste = Food
39
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40. Networks: SVN (Sustainable Value Network)
40

41. Networks: NGOs
41
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