Energy Efficiency Tips

Jacquelyn Ottman

J. Ottman Photo

Jacquelyn Ottman is the nation's foremost expert on green marketing and eco-innovation.

At age four, her siblings called her “Junkie Jacquie” when she dragged home treasures from the neighbor’s trash. Today she's on a mission to help businesses develop and market profitable new products and services that can help consumers lighten their own impact.

After spending over a decade in major NY advertising agencies learning the marketing ropes from the likes of Procter & Gamble and Ralston Purina, in 1989 Jacquie Ottman founded J. Ottman Consulting, Inc. and pioneered green marketing. Her goal: apply her finely-honed consumer packaged goods skills, her creative bent for dreaming up new products, and her strategic instincts to the toughest issues involved in meeting consumers' needs sustainably.

She and her colleagues have helped more than 60 Fortune 500 businesses and various U.S. government labeling programs, including U.S. EPA's Energy Star and the USDA's new USDA Certified Biobased label, develop concepts for exciting new products and strategies for communicating with green consumers while minimizing the risk of backlash.

A Respected Sustainability Leader

Ottman is a founding co-chair of the Sustainable Brands conference, at which she has given several keynote addresses. She is also the founding co-chair of the Sustainable Business Committee of the Columbia Business School Alumni Club of New York, and its wildly successful "Making Green from Green Certificate Series", now in its third  year. She sits on the Advisory Boards of the Centre for Sustainable Design (UK), and the Center for Small Business and the Environment. The former co-chair of the NYC chapter of O2, the global network of green designers and marketers, for seven years she chaired the jury of the American Marketing Association's Special Edison Awards for Environmental Achievement.

The Author of Four Books

She is the author of the newly released, The New Rules of Green Marketing: Strategies, Tools, and Inspiration (Berrett-Koehler (U.S.), Greenleaf Publishing (U.K.), February 2011, which has been named by the University of Cambridge (U.K) as a top 40 Sustainability book, and by Ecolibris as a top ten green book. Previous books include Green Marketing: Opportunity for Innovation, 2nd edition (McGrawHill, 1993), hailed as "the definitive text on the subject." She keeps the business community abreast of her learning on her blog, Jacquie Ottman's Green Marketing Blog, and numerous business publications, as well as on Twitter, LinkedIn and Facebook.

A Sought-After Speaker and Educator

Jacquie is a sought-after keynoter at conferences in North America, South America, Europe and Asia, and at corporate forums run by Johnson and Johnson, 3M, Philips Electronics and GE, among many others. She also gives highly interactive and engaging webinars, workshops and master classes in venues around the world, including on-site and online workshops and webinars designed to help participants profit from the learning in her new book.

In 2004, she created the IDSA-endorsed Design:Green eco-design educational initiative. Underwritten by an EPA Innovation Grant, with additional support from Philips Lighting, the American Hardwood Association, Herman Miller and Aveda, the groundbreaking initiative more than met its ambitious goal of jump-starting education in eco-design and green marketing for thousands of practitioners and students in the U.S. and around the world.

A graduate of Smith College, she received her formal business training at NYU's Graduate School of Business Administration. An expert in creative thinking, Ottman earned the Creative Education Foundation's highest certification for facilitating creative problem-solving.

Ethical Economist Hazel Henderson Interview

Tuesday, November 19, 2013 by

I spoke with Dr. Hazel Henderson, a true icon and visionary in the world of corporate responsibility and ethical economies. Dr. Henderson is a world-renowned futurist, evolutionary economist, a worldwide syndicated columnist, as well as a consultant on sustainable development, and author of 10 books including the award-winning Ethical Markets: Growing the Green Economy. Also she was one of the co-editors of The UN: Policy and Financing Alternatives. Hazel is the founder and editor-in-chief of Ethical Markets Media (USA and Brazil) and the creator and co-executive producer of its TV series. Her editorials appear in 27 languages and in 200 newspapers around the world, and she has received many honorary doctorates and awards.

Hazel has recently released a publication entitled “Mapping the Global Transition to the Solar Age: From Economism to Earth Systems Science” from the UK’s Institute of Chartered Accountants of England and Wales (ICAEW) and Tomorrow’s Company. It will appear soon in the US from Cosimo Publications, NY.

I am in full agreement with Wisdom Network's Pamela Davis who stated “Hazel Henderson has her finger on the pulse of the economic transformation that can and must happen if we are to move forward together in prosperity in the 21st century. Her down-to-earth solutions are at once brilliant and simple enough for all of us to understand and implement.”

From the first time Hazel and I met many years ago, I have counted her as a friend. She has been a mentor to me and a consistent supporter in the growth of GreenMoney over the last 20 years. I am pleased to share this extensive interview with the still very active Dr. Henderson who recently celebrated her 80th birthday. 

CLIFF:  Will you share some of the highlights from your career with us. How are things in the business world different than you thought they would be by 2013? Are we on the way to creating a responsible economy that is not dependent on exponential growth and that works for more people?

HAZEL:   First of all, Cliff, I want to remind us all that 80 is the new 60! My physician tells me that my biological age is 60 – so I’m going with this! I work out and swim every day, eat mostly raw vegetables and fruits, local and organic from our farmers market here in St. Augustine, where I’m standing (in the accompanying photo) by our Champion Tree donated to our Ethical Markets Library during our Spring retreat in May 2013 by Terry Mock, co-founder of the Champion Tree Project International and the Sustainable Land Development Initiative. 

As to highlights, I would say my most intensive learning experience was serving in Washington, DC as a science policy wonk from 1974 until 1980 on the Technology Assessment Advisory Council for the US Congress Office of Technology Assessment (OTA), on the National Science Foundation’s RANN Committee (Research Applied to National Needs) and on the National Academy of Engineering’s Committee on Public Engineering Policy (COPEP). It was an all-male world, and I recall being asked by my fellow advisors to OTA at the first meeting in Room 100 under the dome of the Capitol if I would please go and get coffee for us! Yet, the intellectual challenge was exhilarating. I remember riding the private train under the Capitol with many members of Congress and Senators who served on Science and Technology committees; testifying before the Joint Economic Committee on the need to set up what became the Congressional Budget Office (CBO). Back then, Office of Management and Budget (OMB) would bring the President’s budget over in a truck and dump these documents at Congress, where we had no staff assigned to digest the budget and offer our own review of its priorities! Today, CBO has become almost too powerful an arbiter – scoring all legislative proposals as well as those of the President.

I then wrote my second book, The Politics of the Solar Age, published by Doubleday in 1981, downloading all I had learned about the contesting special interests, lobbying and forces shaping our national policies on energy, transportation, agriculture, trade, taxation, military and foreign policy. I saw the fight begin as the fossil fuel and nuclear power sectors pushed to preserve their subsidies, how US auto companies had also colonized congressional committees with perks, campaign donations and populated scientific panels with their intellectual mercenaries. I realized how hard it would be for the “Solar Age” economy I envisioned to emerge. Indeed, as we now know, renewable energy companies still face an uphill battle with fossil fuels and their annual global subsidies of over $500 billion, the coddling of the inherently unsustainable nuclear industry, protection of favored agribusiness, etc. I remember at one of our OTA meetings in the late 1970s, James Fletcher, who became head of NASA told us that if similar subsidies had been given to solar, wind, energy efficiency, geothermal and other technologies, we in the USA would have already been powered 100% by renewables! This set me on my future path.

A recent highlight was receiving the blessings of Verena Schumacher, widow of my late friend and mentor E. F. Schumacher, to name our over 6000-volume Henderson-Kay-Schumacher Library. This helps keep Schumacher’s flag flying in the USA. He wrote the Foreword to my first book, Creating Alternative Futures (1978), and I still teach occasionally at UK-based Schumacher College.

Click here to continue reading this interview on Green Money Journal.

 

Hazel Henderson on the design revolution from Katie Teague on Vimeo.

Six Reasons Why I Love the Green Festival

Tuesday, November 5, 2013 by

Green FestivalWhen the organizers of the Washington, DC Green Festival approached me this past spring about becoming their regional director,  I wondered if an event like this still resonated with consumers. Even though the event is widely recognized as the nation’s premier sustainability event, I asked myself if there was enough demand for an actual event in today’s age of virtual this, "there’s an app for that” and hash tags becoming part of our ever day lexicon.  Especially in a sector where green events have come and gone. Well, I found out that the resounding answer is YES! If my experience in September is any indication, while technology may have taken on a prominent place in our daily lives, there is absolutely a place in consumers’ lives for good, old fashioned face-to-face events.  We crave community and in-person interaction now more than ever. Technology hasn’t lessened the demand for this type of interaction. In fact, it’s quite the opposite.  It has increased.  People want to talk with others, gather information and look someone in the eye while doing it.  They want to touch and try out products, taste samples and see for themselves what resources are available to them.  Most importantly they want to be part of a like-minded community and participate in that community.

As my colleagues working on the San Francisco Green Festival gear up for the last event of the year November 9 & 10 at the San Francisco Concourse Exhibition Center, it seems like a good time to  reflect on some of my favorite elements of the Green Festival.

1.       At its core the Green Festival message is about celebrating what is working in the community and providing consumers easy-to-use, actionable solutions they can take home with them and implement right away. Whether it be delicious vegetarian recipes from  Washington Post Food Editor Joe Yonan’s new book ‘Eat Your Vegetables’  to DIY ways to repurpose furniture courtesy of Habitat for Humanity, to tips on bike commuting, composting, gardening, energy efficiency and so much more, there truly is something for everyone.  Kids too.

2.       The opportunity to connect with and learn from inspirational businesses, organizations, nonprofits and other like-minded individuals who believe in making a difference, leaving our planet in better shape then we inherited and finding ways to live an eco-friendly life.  The Festival routinely features well-known, national change agents like Ralph Nader or Amy Goodman, as well as locally-based leaders like Bernadine Prince, co-founder and co-executive director of FRESHFARM Markets, yoga teacher Faith Hunter of Embrace DC, who lead free yoga classes all weekend long in the Yoga Pavilion  and Fashion Fights Poverty, which curated a green fashion show .

3.       The event talks the talk and walks the walk.  Organizers actively encourage attendees to bike or take alternative transportation to reach the Green Festival. Anyone who bikes to the Festival receives free admittance.  Over 90% of waste generated by the Festival is diverted from landfills. There is even have a dedicated team of volunteers who sort through the trash making sure nothing is missed.

4.       As consumers are increasingly interested in where their food comes from, who prepared it and how it was made, that evolution has been reflected in the programming at the Festival. Food as a topic was addressed from every angle imaginable from the control of food production by a handful of large companies, to vegan baking tips from ‘Cupcake Wars’ veteran Doron Petersan, to growing gardens and food in small spaces, to leading area farmers markets and nonprofits showcasing how they are making it easier for consumers to have access to fresh, healthy and local foods.  Exhibitors offered healthful options for mom’s and mom’s to be, fair trade chocolates, juicing and smoothies, raw foods, and organic products just to name a few.  There were panels on how food creates opportunities for conversation about the environment and more.  Food is such an integral part in allowing us to live full lives, and there is so much going on behind the scenes that the average consumer has no idea about, so it’s important to provide opportunities to entertain, educate and inspire change all under one roof.

5.       The creativity and diversity of the exhibitors and sponsors.  They ranged from larger companies like Ford Motor Company test driving their fuel efficient vehicles and Equal Exchange Fair Trade Chocolates sampling and selling their tasty chocolates to small mom and pops like Karmlades selling environmental friendly cleaning products that smell wonderful and clean naturally without chemicals. I fell in love with one-of-kind scarves from a local clothing designer that were designed in the DC area and made with bamboo, an eco-friendly and super soft material.  Other exhibitors whose creativity caught my eye included a woman who used old scarves, jackets and other materials to make home goods, including a pillow made out of a World War II Army uniform, as well as the exhibitor who made bags, wallets and iPad covers out of old football and basketballs. Talk about reusing and recycling!

6.       Organizers are committed to reaching out to the community and making the event accessible to everyone. Complimentary tickets to the event are handed out at events throughout the area, can often be found online and through special social media promotions.

I think the most powerful take away for me was that there continues to be a thriving community, whether they be consumers, speakers, businesses or nonprofit organizations, who are devoted and committed to creating change.  To steal an oft quoted phrase from Ghandi, the Green Festival gives me hope that we will be the change we want to see in the world.

Hope to see you at the San Francisco Green Festival!

A New Printer and a Greener World

Monday, July 22, 2013 by

My business needed a new desktop printer recently. My old HP color laser jet still worked, but had run out of 1 of its 4 inks. It refused to print without a new cartridge.

Normally, this requires a trip to Staples and parting with $150. This time, I thought about it. 

From a triple bottom line perspective, a printer has significant impacts. Like any business person, I look for the best lifecycle cost. I buy reliable equipment (thank you, Consumer Reports) and use it as long as possible. However, a green business considers additional factors, including ways to:

  • reduce energy cost and pollution. My old printer was an energy hog. My new one carries the Energy Star label. My electric bill will shrink a bit and I do a happy dance every time it does.
  • reduce paper cost and pollution - Minimizing paper use has both business and environmental benefits. I'd rather keep trees around to absorb carbon dioxide (and provide shade in this hot Florida summer!) than cut them down to make paper. Especially since the paper manufacturing process is one of the most toxic out there.  I also print double-sided, use recycled paper, and recycle all paper that passes through my business.
  • reduce ink cost and pollution. When I bought the color Laser jet, I didn't know about the $150 cost per ink cartridge. Shame on me for not asking. This time around, the cost per cartridge will be $10 - $15. They'll need to be replaced more often, but the cost per page will still be about half what it was. 
    I'll continue to recycle my ink cartridges. They don't degrade well, and recycling them keeps plastics and heavy metals out of landfills.
  • enhance productivity. Much as I'd love to go paperless, I'm not quite there yet. As a writer and editor - who writes and edits EVERYWHERE - paper is sometimes more practical than lugging my laptop. Scribbling ideas in the car while waiting outside my daughter's school or marking up copy at a teeny table over lunch - these places don't lend themselves to laptops. The new printer lets me work "my way," while moving my business in a greener direction.
  • reduce equipment needs. The new printer also has fax, copier, and scanner capabilities. This was an unexpected bonus that just made sense. Why have multiple machines - in my case, a printer and fax - when one will do? I will donate my old fax machine - 29 years old and still working - to someone who needs it. And where the fax machine once sat, I'll add a nice, big plant to improve both the scenery and the air quality in my office.

Why spill so much "digital ink" about a new printer? Because it's just one example of how you can turn a seemingly mundane business decision into a strategic one, with both immediate and long-term busines benefits. The next time you are in the market for business equipment - stop and assess the greener alternatives!

 

Alison Lueders is the Founder and Principal of Great Green Editing. She creates content for green businesses and enterprises in the health, education and nonprofit arenas. She is a graduate of Harvard College and received her MBA from MIT. She earned her Bronze seal from Green America in 2013 and Platinum-level recognition from the Green Business Bureau in 2012. She can be reached at info@greatgreenediting.com and at 813-968-1292.

 

5 Ways to Increase Energy Sustainability Within Your Business

Monday, May 20, 2013 by

If you're a business owner, you understand the need to cut costs as often as possible in order to promote growth and profit within your company. For every dime saved from spending on one aspect of your business, another can be further increased. For example, saving money on your electric bill each month could put that money into your marketing budget for continued growth. What can be done around the business in order to promote saving money on energy and promoting sustainability?

1. Lighting - As your business may stay open for hours at a time, you could be utilizing a great deal of energy just in lighting alone. Although fluorescent tubes and CFL bulbs are prevalent in many locations, what else can be done? 

  • Spending less than $25 for motion sensing light switches can prevent rooms from wasting power when no one is in them.
  • Solar Energy kits that cost less than $200 can power some of the lighting within the establishment.
  • Dimmer switches can be used to dial back lighting that may be too bright for the area

2. Computer Equipment - Contrary to the beliefs of some techs, computers do not need to be turned on all day and night. In fact, this constant use can impact a computer in a number of negative ways. Cooling fans and computer hardware have a finite lifespan. For each hour spent turned on, the computer system is one hour closer to needing repair. Your servers are the only thing that should be operating constantly.

3. Solar Arrays - Although this could be an expensive investment depending on your energy needs, your business could benefit from tax credits and subsidies for implementing solar power developments. If you are able to install the panels yourself, your business could slowly build an array one panel at a time in order to save a great deal of money on the installation costs as well as the electric bill of the facility. Over time, your business could generate 100-percent of the power it needs in order to conduct day-to-day operations.

4. HVAC Systems - Keeping your establishment comfortable for your customers and staff can improve business relations and productivity. Using products such as Insuladd paint additive can help keep the costs of running heating and cooling units down as they promote thermal barrier technology. Essentially, this adds a layer of insulation to your walls within the paint. Energy efficient cooling and heating appliances such as a Haier air conditioner and an EdenPure heater can decrease these costs as well while providing a comfortable atmosphere.

5. Reduce Electronics - In a small business, is it realistic for everyone to have his or her own printer? Even a device that is unused such as a printer is pulling power while it's turned on. Sleep mode on monitors is still draining power as well. By reducing your appliance load to only necessities, you can save on the amount of power that is wasted by unused and idle hardware.

Although you don't have to invest thousands of dollars to create a 100-percent sustainable power method from solar arrays, there are many ways you can reduce the spending on energy costs while promoting a more eco-friendly atmosphere. The investments you make now for sustainable methods within the business will help your growth in a variety of ways. Investigate other methods of improving efficiency within the workplace and give a boost to other aspects of your business.

About the Author:

Ken Myers is an expert advisor on in-home care & related family safety issues to many websites and groups. He is a regular contributor to www.gonannies.com. You can get in touch with him at kmyers.ceo@gmail.com

Magic, Minneapolis, LOHAS & Ted.

Friday, May 17, 2013 by

While most LOHASIANS gather in Boulder, Colorado yearly for the international LOHAS Forum, LOHAS came to Minneapolis this week as  kindred business spirits chatted over glasses of organic wine and uniquely delicious appetizers.

Uniquely delicious is exactly what LOHAS is. A nearly $300 billion market psychograhic that unites the powerful  consumer force that's made recycling,hybrids, organic food, energy-efficient lighting and more mainstream—LOHAS is all about experience.

That's what you get at the LOHAS Forum June 18 - 20th as progressive, earth-and life-changing business leaders gather to inspire and get inspired.

As a pioneer in green and wellness marketing, I was one of the first marketers to begin speaking LOHAS in the mid '90s. I've been fluent ever since, bringing this unique brand of experience, passion and positive change to organizations like Green Mountain EnergyUtne ReaderThe Organic Center and more.

Having known LOHAS president, Ted Ning,  for more than a decade, I can tell you with certainty that he is a passionate force for change. His level of commitment, innovation and dedication to all things experiential is part of the alchemy of LOHAS. So join me and Ted at the LOHAS Forum. It's only once a year. And it's pure magic.

Lisa Proctor is the president and creative director of firefly180 marketinga Minneapolis-based branding and advertising agency that specializes in LOHAS marketing, wellness marketing, green marketing and renewable energy marketing.

 

From Growth Capitalism to Sustainable Capitalism: The Next 20 years of Sustainable Investing

Monday, December 3, 2012 by

By Joe Keefe, President and CEO, Pax World Management  (From the special 20th Anniversary issue of the GreenMoney Journal and www.GreenMoney.com )

Twenty years from now, we will have either successfully transitioned from our current economic growth paradigm to a new model of Sustainable Capitalism or we will be suffering the calamitous consequences of our failure to do so. Likewise, sustainable investing will either remain a niche strategy or it will have supplanted mainstream investing. This is the critical point we must embrace: sustainable investing can no longer simply present itself as an alternative to traditional investment approaches that ignore environmental, social and governance (ESG) imperatives; it cannot simply be for some people; it must actually triumph over and displace traditional investing.  

The current model of global capitalism - call it growth capitalism - is premised upon perpetual economic growth that must ultimately invade all accessible habitat and consume all available resources.[Footnote 1] Growth capitalism must eventually collapse, and is in fact collapsing, for the simple reason that a finite planet cannot sustain infinite growth. Moreover, the dislocations associated with this infinite growth paradigm and its incipient demise - climate change, rising inequality and extreme poverty, resource scarcity (including food and water shortages), habitat loss and species extinctions, ever more frequent financial crises, to name just a few - will increasingly bedevil global policy makers in the years ahead. The public sector is already experiencing a high degree of dysfunction associated with its inability to confront a defining feature of this system: the need for perpetual growth in consumption spurs a corresponding growth in public and private debt to fuel that consumption, which has roiled financial markets and sovereign finances across the globe. 

Meanwhile, the environmental fallout from this infinite growth paradigm is becoming acute. All of earth’s natural systems – air, water, minerals, oil, forests and rainforests, soil, wetlands, fisheries, coral reefs, the oceans themselves – are in serious decline. Climate change is just one symptom. “The problem is the delusion that we can have infinite quantitative economic growth, that we can keep having more and more stuff, on a finite planet.”[FN 2] The problem is an economic system that makes no distinction between capital investments that destroy the environment, or worsen public health, or exacerbate economic inequality, and those that are aligned with earth’s natural systems while promoting the general welfare. Under growth capitalism, a dollar of output is a dollar of output, regardless of its side effects; short-term profit is valued regardless of the long-term consequences or externalities. 

It is therefore discouraging that, in the U.S. at least, there is no serious discussion in mainstream policy circles about alternatives to the present system. Nor do I think there will be for some time given our current political/cultural drift. Political and economic elites, and the public itself, remain committed to growth capitalism, accustomed to “having more and more stuff,” for a host of economic, social and psychological reasons. As Jeremy Grantham has written, “[t]he problems of compounding growth in the face of finite resources are not easily understood by optimistic, short-term-oriented, and relatively innumerate humans (especially the political variety).”[FN 3] Our campaign finance system, wherein policy makers are essentially bought off by and incentivized to advance the very interests that stand to profit most from the current system, is no help. Making matters worse, large segments of the public do not even accept what science teaches us about climate change, or natural systems, or evolution, or a host of other pressing realities. The late U.S. Senator Daniel Patrick Moynihan once said that everyone is entitled to their own opinion but not their own facts. Today, it seems that a growing number of people, aided and abetted by special interests that stand to benefit from public ignorance, are increasingly opting for their own “facts.”

So, neither the public sector nor corporate and economic elites, as a result of some newfound enlightenment, seem poised to consider alternatives to the current system. To the contrary, their first impulse will be to resist any such efforts. This is the critical problem at the moment: while there is an array of powerful forces aligned against the type of sweeping, systemic change that is needed, there is no organized constituency for it. There are individuals and groups who support this or that reform, or who are focused on critical pieces of the larger puzzle (e.g., climate change, sustainable food & agriculture, gender equality, sustainable investing), but there is no movement, no political party or leader, no policy agenda to connect the dots.

That is a shame because there is a clear alternative to growth capitalism that has been articulated in recent years by a diverse body of economists, ecologists, scientists and other leading thinkers - including leaders in the sustainable investment community.[FN 4]

Although there is as of yet no unified theory or common language, let alone any sort of organized movement to speak of, what has emerged is essentially a unified vision, and that vision might best be described as Sustainable Capitalism.[FN 5]

Sustainable Capitalism may be thought of as a market system where the quality of output replaces the quantity of output as the measure of economic well-being. Sustainable Capitalism “explicitly integrates environmental, social and governance (ESG) factors into strategy, the measurement of outputs and the assessment of both risks and opportunities…. encourages us to generate financial returns in a long-term and responsible manner, and calls for internalizing negative externalities through appropriate pricing.”[FN 6] Essentially, business corporations and markets alter their focus from maximizing short-term profit to maximizing long-term value, and long-term value expressly includes the societal benefits associated with or derived from economic activity. The connections between economic output and ecological/societal health are no longer obscured but are expressly linked.[FN 7]

There is no question that growth capitalism must give way to Sustainable Capitalism. It’s as simple, and as urgent, as that. Over the next 20 years, the sustainable investing industry must play a pivotal leadership role in ushering in this historic transformation. We will need to connect the dots and catalyze the movement. Why us? For the simple reason that finance is where the battle must be joined. It is the financial system that determines how and where capital is invested, what is valued and not valued, priced and not priced. The sustainable investment community’s role is vital because the fundamental struggle is between a long-term perspective that fully integrates ESG factors into economic and investment decisions and our current paradigm which is increasingly organized around short-term trading gains as the primary driver of capital investment and economic growth regardless of consequences/externalities.

The notion that sustainable investing can simply keep to its current trajectory - a few more assets under management here, a few more successful shareholder resolutions there, a few more GRI reports issued, another UN conference, an occasional victory at the SEC - and achieve what needs to be achieved on the scale required is, frankly, untenable. We need to be more ambitious in our agenda.

We will also need to take a more critical stance, not only advocating for ESG integration but against economic and investment approaches that ignore ESG concerns. We will need to consistently critique the notion that externalities associated with economic output are somehow collateral, or that financial return is sufficient without beneficial societal returns, or that markets are inherently efficient and self-correcting. We will need to unabashedly offer sustainable investing not as an alternative approach but as a better approach - as the only sensible, responsible way to invest.

I believe the sustainable investing industry will also need to align itself with a more explicit public policy agenda - while remaining non-partisan - and work with like-minded reformers to advocate for that agenda. For example, sustainable investors should be sounding the alarm about resource scarcity and advocating for a massive public/private investment plan in clean energy, efficiency technologies and modernized infrastructure.[FN 8] The age of resource scarcity and the need for efficiency solutions is upon us.[FN 9] At Pax World, we offer a fund - the Global Environmental Markets Fund (formerly the Global Green Fund) - whose investment focus is precisely that. Our industry needs to fashion such investment solutions, and I believe there will be opportunities to do so collaboratively as well as competitively.

I also feel strongly that the greatest impediment to sustainable development across the globe is gender inequality. Advancing and empowering women and girls is not only a moral imperative but can unleash enormous potential that is now locked up in our patriarchal global economy. Sustainable investors need to press the case that gender equality needs to be a pillar of Sustainable Capitalism. At Pax World, we also have a fund - the Global Women’s Equality Fund - whose investment focus is exactly that.

In my view, the sustainable investing community should also be advocating for public funding of federal elections, either through a constitutional amendment or, absent an amendment, through a voluntary public funding system. The notion that we can tackle any major public policy issue, let alone undertake the epochal transition to Sustainable Capitalism, while politicians and regulators are captive to the very interests they are supposed to regulate, is beyond naïve. We will not be able to reform capitalism if we cannot reform Congress. 

Finally, asset management firms like my own will need to find ways to craft new, more persuasive messages, launch new products, form new partnerships, and fashion new distribution strategies and alliances that are focused on lifting the industry as a whole, because a rising tide will lift all boats. Pax World has taken a step in this direction in launching our ESG Managers Portfolios, where many ESG managers and strategies are now available under one roof in one set of asset allocation funds. There is more to be done - together, as an industry. 

The times call for leadership. The transition to Sustainable Capitalism is necessary and urgent, as is the triumph of sustainable investing over investment approaches that effectively prolong and exacerbate the current crisis. Twenty years from now, our industry will be judged by whether we have met this burden of leadership. Our impact either will be dramatic or inconsequential. We either will succeed or we will fail. We should resolve to succeed, and to work collaboratively toward that end. 

 

Article by Joe Keefe, President & CEO of Pax World Management, headquartered in Portsmouth, NH. Pax World manages approximately $2.5 billion in assets, including mutual funds, asset allocation funds and ETFs, all of which follow a sustainable investing approach. Prior to joining Pax World, Joe was President of NewCircle Communications (2000-2005), served as Senior Adviser for Strategic Social Policy at Calvert Group (2003 – 2005), and was Executive Vice President and General Counsel of Citizens Advisers (1997-2000). A former member of the board of US SIF (2000 - 2005), Joe was named by Ethisphere Magazine as one of the “100 Most Influential People in Business Ethics” for 2007, 2008 and 2011, and in 2012 was recognized by Women’s eNews a one of “21 Leaders for the 21st Century, where he was the sole male honoree. 

You should consider a fund's investment objectives, risks and charges and expenses carefully before investing. For this and other important information, please obtain a fund prospectus by calling 800.767.1729 or visiting www.paxworld.com . Please read it carefully before investing.

Equity investments are subject to market fluctuations, a fund’s share price can fall because of weakness in the broad market, a particular industry, or specific holdings. Emerging market and international investments involve risk of capital loss from unfavorable fluctuations in currency values, differences in generally accepted accounting principles, economic or political instability in other nations or increased volatility and lower trading volume.

Distributed by ALPS Distributors, Inc., Member: FINRA            PAX002590 08/13

Footnotes:

[1] See, William E. Rees, “Toward a Sustainable World Economy,” Paper delivered at Institute for New Economic Thinking Annual Conference, Bretton Woods, NH, April 2011, p. 4.

[2] Paul Gilding, The Great Disruption, Bloomsbury Press, 2011, p. 186.

[3] Jeremy Grantham, “Time to Wake Up: Days of Abundant Resources and Falling Prices Are Over Forever,” April 2011 GMO Quarterly Letter.

[4] I am thinking of such writers and thinkers as Wendell Berry, Lester Brown, Paul Gilding, Herman Daly, Thomas Friedman, Paul Hawken, Richard Heinberg, Mark Hertsgaard, Amory Lovins, Hunter Lovins, Bill McKibben, Donella Meadows, Jorgen Randers & Dennis Meadows, James Gustave Speth and, of course, E.F. Schumacher. Contributions from the sustainable investing community include Steven Lydenberg’s Corporations and The Public Interest, Robert Monks’s The New Global Investors, Marjorie Kelly’s The Divine Right of Capital, and The New Capitalists by Stephen Davis, Jon Lukomnik & David Pitt-Watson. See also the work of The Capital Institute, www.capitalinstitute.org

[5] Credit Al Gore, David Blood, Peter Wright and the folks at Generation Investment Management for putting a stake in the ground and endeavoring to define and popularize this concept.

[6] “Sustainable Capitalism,” Generation Investment Management LLP, 2012, p. 2.

[7] This notion of Sustainable Capitalism is not unlike the concept of “shared value” s advanced by Michael E. Porter and Mark E. Kramer. See, “Creating Shared Value,” Harvard Business Review, Jan-Feb 2011.

[8] See Daniel Alpert, Robert Hockett & Nouriel Roubini, “The Way Forward: Moving From the Post-Bubble, Post-Bust Economy to Renewed Growth and Competitiveness,” © 2011, New America Foundation, www.newamerica.net

[9] See Jeremy Grantham, “Time to Wake Up: Days of Abundant Resources and Falling Prices Are Over Forever,” supra; See also, “Resource Scarcity and The Efficiency Revolution,” Impax Asset Management, www.impaxam.com

 

For more information go to- www.GreenMoney.com

 

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Video: EmPOWERing Education in Indiana with On-site Wind Turbines

Monday, November 19, 2012 by

Wind energy is revolutionizing science education. In Indiana, NativeEnergy is helping schools build wind turbines that provide hands-on learning opportunities.

Facing budget cuts, Indiana schools needed a new approach.

The answer was an everyday resource: the wind.

Harold Seamon, assistant superintendent, Northwestern schools in Kokomo: “We looked at the possibility of building a wind turbine for several years. After doing a number of projects—we purchased equipment to improve our energy efficiency and the environment in our buildings—we finally said, ‘It would really be neat if we could generate some of our own power.’”

But they couldn’t do it alone. They turned to Performance Services to help assess the wind energy potential. Performance Services is a design-build engineering and construction firm with experience in developing community scale wind projects in Indiana.

Together, they discovered more than enough wind and expected major energy savings. But the project was still too costly to be built.

Carbon financing from NativeEnergy sealed the deal.

Jeff Bernicke, president, NativeEnergy: “When NativeEnergy heard this project needed additional funding, we were excited to help. It has so many benefits for the students, the school, and the community. Not only does it provide a stable source of locally produced energy, but it’s also a real life, full-scale renewable energy learning lab for the students and faculty.

“Our customers are buying the carbon reductions that will happen over the life of the project. These are known as carbon offsets. When our clients such as AVEDA, Clif Bar, Ben & Jerry’s, REVERB, and Touring Green make this offset purchase, they are playing a critical role in making this project happen.”

Harold Seamon: “The combination of utility savings on the one hand and carbon offsets on the other made the project viable for Northwestern schools.”

Finally, the turbines were built, and the excitement was contagious. Students are now learning about renewable energy, and some are even earning college credit.

We celebrated the project on October 19 at Northwestern High School.

Principal Al Remaly rode with NativeEnergy and Performance Services to the school. Then, a school-wide event taught students about their turbine. The companies also shared career advice with students. People even had the opportunity to climb the turbine.

Today, the three turbines are generating power throughout Indiana. They will cut 4,800 metric tons of greenhouse gases per year.

>> Learn more about this project

 

About NativeEnergy
NativeEnergy is an expert provider of carbon offsets, renewable energy credits, and carbon accounting software. With NativeEnergy’s Help Build™ offsets, businesses and individuals can help finance the construction of wind, biogas, solar, and other carbon reduction projects with strong social and environmental benefits. Since 2000, NativeEnergy’s customers have helped build over 50 projects, reducing more than 2.5 million tons of greenhouse gases, and the company has over 4 million tons under contract. All NativeEnergy carbon offsets undergo third-party validation and verification. Learn more at www.nativeenergy.com.

Making Sense of the FTC Revised Green Guidelines

Wednesday, October 31, 2012 by

It only took them 20 years (The first Guides were issued in 1992), but then again, as the saying goes, every overnight sensation is twenty years in the making. Maybe the FTC Green Guide staff put in their 10,000 hours, but, at last, they nailed it. The revisions to the Green Guides, published on October 1, 2012, shows that the FTC is finally putting their foot down (both of them) about the term 'green', along with such related generalized environmental claims as 'eco-friendly' and 'Earth smart'.

While they are at it, they're advising against the use of any label, logo, seal or product name or image -- what I like to call 'daisies, babies or planets' --  that can imply any hint of environmental (or health) superiority without adequate scientific support. Because chances are such claims are nearly impossible to support, the risk-adverse will stay far away from suggesting same.

And just in time, too. Interest in green claims continues to swell despite tough economic times. As global population climbs to an unimaginable 9 billion by 2050, we'll no doubt find many more ways  for consumers to 'go green', with accompanying eco-language to boot (Will "Mars friendly" be next?) But for now, we're all still here. So hopefully there's still time to clean up the green marketing business so we can one day harvest the potential to lighten consumers' size-18 planetary footprint.

The lawyers at the FTC did what 'greening' requires everyone to do — to think holistically, acknowledging the need to back up environmental marketing claims with life cycle assessments. They obviously consulted with some smart ecologists and biologists because the revised Green Guides demonstrate a sophisticated understanding of sound science. The Guides don't explicitly state the science, but for us laymen, here's a quick crib sheet that can help you understand why they're saying what they're saying:

There's no such thing as a green product. Every product uses resources and energy and creates waste.
One attribute does not a green product make.  An Energy Star certified compact fluorescent light bulb has a tinge of mercury (and as such require a hazardous waste permit to landfill in quantities of five or more.) Organic strawberries grown in California and eaten in New York are responsible for creating so many greenhouse gases on the trip cross country we might as well eat berries conventionally grown in New Jersey. Paper made from sustainably-certified wood still needs to be bleached and / or otherwise processed with dangerous chemicals and shipped to Staples.

Should CFLs not be Energy Star qualified? Should strawberries destined to hit the road not be labeled organic? Should paper that's on its way to be bleached not be described as 'sustainable'? Definitely not! Let's simply be more specific, as FTC recommends, and not suggest they are totally 'green'. (More on this below.)

100% recycled content can be less 'green' than 10% recycled content.  Depending upon the nature of the recycled content and how far it must be shipped to a recycling center, environmental costs of shipping and other impacts can actually make a recycled product less 'green' than a virgin counterpart.
Natural is not necessarily green or more healthful. Arsenic is naturally occurring.

Sustainable is a moving target. Corn may be in plentiful supply today and able to be regrown year after year, but when water supplies wane, it may not be so 'sustainable' to continue to grow it, no matter how fast or how economically it can be converted into bio-plastics and biofuel.

So, green is a relative, rather than absolute, measure. The best way to determine relative greenness is a bona fide life cycle assessment covering all facets of a product's environmental impacts, from raw materials procurement straight through to disposal. This is duly acknowledged in the latest installment of the FTC Green Guides.

We are the next endangered species on the planet. The planet is not at risk, we are. (Yet another reason not to include images of planets in one's advertising or to make grandiose claims about saving it.) This is not a political issue, but an issue of our future, and particularly those of our kids' and their kids.

So it's incumbent upon every marketer, manufacturer, retailer, producer, and everyone else in the supply chain and their stakeholders to understand not just these Guidelines and ideally their scientific underpinnings, but to do what we can to make all green marketing work as it's supposed to.
We in industry -- and concerned consumers, too -- should get on the case of questionable green claims. In their infinite wisdom and thoroughness, the FTC provides lots of helpful information for marketers and to the public to make the process of reporting such claims easy. (The National Advertising Division of the Better Business Bureau can help too.)

Green marketing is just good marketing. As I've been saying for a while now -- and it is admittedly counter-intuitive, the best green marketing doesn't lead with a product's 'greenness'. The good news about many green(er) products these days is that, thanks to advances in design, materials and technology, they offer superior delivery on the primary benefits that consumers buy products for. So why not focus on those things instead of altruism and planets that don't need to be saved?

At a minimum, consider that environmental marketing, reflecting the planet itself, encompasses so many potential product-related attributes, organic, VOC, recycled, biodegradable, among them, as to render the term 'green' meaningless. Rather than confuse, even deceive, consumers intentionally or unintentionally with messages about 'eco-friendliness' and 'natural' (which in their infinite wisdom, the FTC refused to define) why not hone in on those green-oriented terms that a now mass market seeks via all its segmentary splendor: 'energy efficient', 'organically grown', 'water efficient', 'recyclable', among them, and render your marketing both relevant, targeted, and credible? (FTC would love you for being specific.)
Moreover, let's link those same 'green' attributes to the benefits they deliver to consumers. For instance, let's tout all things 'water efficient' as 'cost effective', and 'fuel efficient' as 'convenient (fewer fill-ups and the ability to drive in the HOV lane).

Does this mean we should not talk about 'the environment' at all?  Not in the least!  Consumers still want specific, well-documented and genuinely helpful environment-related information -- so let's include them in our marketing messages in its secondary or tertiary place in line with its importance on our customer's shopping list.

All of us environmental types like to talk about how, 'if we do our jobs right we'll put ourselves out of business'. Well, before we get run out of town for more greenwash and hogwash by a now enlightened FTC (and the Enforcement Division that stands ready to pounce) let's agree to put ourselves out of the 'save the planet' business and into the business of saving our customers some money, time, etc. in an environmentally sound way -- and make our marketing more legitimately green for our bottom lines, rather than our faces red with shame.

Jacquelyn Ottman is principal and founder of the New York City-based J. Ottman Consulting, expert advisers on green marketing to Fortune 500 sustainability leaders as well as several U.S. government labeling programs. The author of four books on the subject, her latest is The New Rules of Green Marketing: Strategies, Tools, and Inspiration for Sustainable Branding (Berrett-Koehler, February 2011).

 

Ted Ning is renowned for leading the annual LOHAS Forum, LOHAS.com and LOHAS Journal the past 9 years Ted Ning is widely regarded as the epicenter of all things LOHAS leading many to affectionately refer to him as ‘Mr. LOHAS’. He is a change agent, trend spotter and principal of the LOHAS Group, which advises large and small corporations on accessing and profiting from the +$300 billion lifestyles of health and sustainability marketplace.  The LOHAS Group is a strategy firm focusing on helping companies discover, create, nurture and develop their unique brand assets.  For more information on Ted visit  www.tedning.com


 

Slipping Green Through the Back Door

Tuesday, August 21, 2012 by

Laguna Niguel, CA — America is going green, but not the way environmentalists had planned it. The unlikely hero is none other than Corporate America, which is giving consumers the green whether they realize it or not. Why? Because it’s good for the customer, it’s good business, and let’s face it, as MGM Senior Vice President of Environment and Energy Cindy Ortega articulates, “It is also good for employee morale and retention — people want to work for companies who care about the world around them.”

 

"Over 70 percent of the wood we now sell is certified. But you won't find us advertising or promoting that fact," said Ron Jarvis, senior vice president of Environmental Innovation for The Home Depot. Photo by Mathew Wilson (Courtesy of Flickr).

Here’s a great example of this sales strategy as employed by The Home Depot: “Over 70 percent of the wood we now sell is certified. But you won’t find us advertising or promoting that fact,” said Ron Jarvis, senior vice president of Environmental Innovation for The Home Depot at its Atlanta headquarters. Jarvis was in Laguna Niguel recently to attend “Fortune Brainstorm Green,” a high level conference attended by many prominent green industry corporate and NGO executives.

“Our data shows that most customers will not pay extra for sustainable wood, and in some cases, they consider “green” wood a negative. We believe that FSC wood is the best way to go for both quality and sustainability reasons, so, most of the wood we sell in developing countries is FSC certified. We do believe in educating our customers and employees about sustainability, but at the same time the voice of the customer is always our top priority. Thus including FSC wood without charging a price premium is the right thing to do, and thankfully, due to our enormous volume and purchasing power, we can make this equation work business-wise,” Jarvis explained.

Jarvis’ competitors at Lowe’s also have a couple examples of this same premise. “There are multiple variations of a “green” consumer. In fact, according to the 2011 US LOHAS Consumers Trends poll, 83 percent of consumers identify with “green” at some level. However, the greenness of consumers changes with multiple factors, including the economy and available income, as well as age and generations,” said Michael Chenard, Director of Corporate Sustainability for Lowe’s at its Mooresville, NC headquarters. “Today, 100 percent of the bathroom faucets Lowe’s carries are WaterSense (low flow) certified, and that’s been the case for more than three years. Lowe’s also has more in-stock Energy Star-qualified appliances and lighting fixtures than any other major home improvement retailer.”

 

According to the 2011 US LOHAS Consumers Trends poll, 83 percent of consumers identify with "green" at some level. Graph by Natural Marketing Institute (NMI), 2009 LOHAS Consumer Trends Database.

Keeping with the theme of “going green through the back door,” shipping giant UPS is using sophisticated software and data to develop the cheapest, most fuel efficient way to move packages from point A to point B. These savings are passed along to the consumer, according to Scott Wicker, UPS’ chief sustainability officer at its Atlanta headquarters. Also in attendance at Fortune Brainstorm Green, Wicker said UPS is testing all types of fuel efficient vehicles in its massive fleet, including full electric, hybrid, compressed natural gas and liquefied natural gas, among others. Vehicles that operate out of central depots in large urban areas are the best prospect for going full greenfleet because of the range limitations of electric and other nascent technologies. “We also use telematics to monitor over 200 data points via satellite from our trucks, which helps us train the drivers in maximum fuel efficient driving techniques and ensure they are taking the shortest routes, not letting the engines idle excessively, among other factors,” Wicker said. Alas, out of over 100,000 vehicles, only about 2,600 are truly alt-fuel at this time. Wicker says that number will grow over time, but not surprisingly, cost will ultimately trump all other considerations.

 

 

UPS is testing all types of fuel efficient vehicles in its massive fleet, including full electric, hybrid, compressed natural gas and liquefied natural gas, among others. Photo by Schnaars (Courtesy of Flickr).

How about the clothes we wear? Levi’s is also employing the “going green through the back door” technique. “We are committed to the Better Cotton Initiative because we believe it can change the way cotton is grown around the world, positively impacting the environment and supporting 300 million people engaged in cotton farming around the world — without creating higher prices for consumers,” said Brianna Wolf, Manager of Environmental Sustainability at Levi Strauss & Co. “Last fall, we started blending the first Better Cotton harvest into Levi and Denizen products. To date, we’ve produced more than five million garments containing a Better Cotton blend.” However, you won’t find a label identifying clothing made with Better Cotton quite yet. “Participating brands are holding off on direct product labeling during this start-up phase, to allow supply to scale to meet demand. For now, we encourage consumers to learn more about Better Cotton and support brands who are integrating it into their product lines at bettercotton.org,” explained Wolf.

And what about that all-important cup of morning Joe? While many consumers are frustrated by Starbucks’ lack of recyclable cups, the company does take good care of its key suppliers — the coffee growers toiling in the fields of faraway places. “When someone buys a cup of our coffee, they probably don’t know that the beans are produced with social, environmental and economic best practices in mind. Our C.A.F.E. Practices coffee-buying program includes rigorous sourcing standards covering: fair wages and benefits; access to medical care and education; specific high standards for conservation and biodiversity; amongst other criteria.” said Kelly Goodejohn, Director of Ethical Sourcing for Starbucks. “For the past ten years we have partnered with Conservation International on C.A.F.E. Practices. Currently, 84% of our coffee is ethically sourced through this model. By 2015, 100% of our coffee will be third party verified or certified, ensuring that all the coffee we purchase has been grown and processed responsibly.”

 

 

By 2015, Starbucks vows to have 100% of their coffee be third party verified or certified, ensuring that all the coffee they purchase has been grown and processed responsibly. Photo Courtesy of Starbucks. 

Indeed, there are some case histories that bear out the thesis that mostly due to the economy, consumers simply have not embraced going green over the past several years. This is a bitter pill to swallow for green opinion leaders, but may explain why products like Clorox Green Works home cleaning products have gone straight up, then plunged back to earth with a resounding thud. Recall that Green Works was launched in 2008 with great fanfare, and zoomed to over $100 million in sales within two years. Inexplicably, sales started to drop off, and even a price reduction to parity with non-green competitive products could not revive Green Works. Adding insult to injury, general opinion of experts was that the Green Works products performed very well, and backed up the claims made by Clorox. This is worthy of mention because a number of green products have been rushed to market without proper testing, bringing a black eye to the movement when consumers felt snake bit by paying premium prices for products that did not live up to their hype.

“In the past, consumers have felt that purchasing green products would require some form of sacrifice — spending more money or an inferior design. Today, that has changed,” declared Joel Babbit, CEO and co-founder of online daily green news magazine Mother Nature Network (MNN). “Not only have prices become more comparable — but the associated savings in lower energy bills, water usage, and using lesser quantities that come with green products often result in a cost advantage. On the design side — as opposed to the clunky or boring approach so common just a few years ago — many of the most innovative and attractive products now entering the market are green.”

You can read more by Jennifer Schwab by following her blog, Inner Green.

 

 

4 Green Pinterest Boards Every Eco Conscious Person Should Follow

Monday, August 6, 2012 by

Pinterest may be the newest social media/bookmarking site that most college students are enamored with at the moment—after all it features tons of great fresh and trendy DIY crafts, recipes, and clothes—but the digital pin board can also be used for a greater purpose: teaching users how to live a greener lifestyle. Whether you're looking for inspiration to transform your home (or dorm room) into an eco-friendly haven or you're simply wondering what new clean technologies are in developments, Pinterest can help satisfy your curiosity. That said, below are some prime "green" Pinterest boards you should start following today.

Plants Anything Green Garden

One of the easiest ways to promote sustainability is to plant your own herb or vegetable garden in your backyard. But if you're unsure of where to start, what to plant, or how to construct beds for your plants, then this board can really help you out. With more than 78 fabulous pins that explain what perennial herbs are and how to construct a DIY self-watering planter for example, this particular board is loaded with tons of useful information for the eco-conscious. Just make sure to double click the images to re-direct you to the original location of the pin for step-by-step directions.

Green Buildings I Digg

Like the name suggests this board is filled with beautifully constructed sustainable buildings that the owner, Bidgette Meinhold, finds interesting. But we find her particular taste interesting too. If you're looking for some inspiration on how to design and construct your new eco-friendly home or you just want to know what some consumers in various parts of the world are doing to make their homes and businesses sustainable then become one of the 300 plus followers of this board.

Clean Tech

If you're interested to know what certain clean tech gadgets and tools universities are working on then this board would be essential to follow. While it allows users to get a better idea of what's in store for the future, it also has some great clean tech DIY tips that the average user can construct at home, such as how to turn your plants into a cell phone charger. Hopefully the owner Planet Forward continues to add to the 34 pins already featured on the board.

Green Lifestyle Consulting

Green Lifestyle Consulting, which like the name suggests is a board that is designed to help users live a greener lifestyle. The board is run by a wife-husband duo. There are so many different pins featured that they're organized into different categories, including: For the Home, Political Action and Ideas, Tips to go Green, and Raising Green Children.

LOHAS

And of course there is the LOHAS board that provides visuals of the various elements LOHAS embodies. For those who are visually inclined it may provide a clearer picture on how LOHAS sectors are connected and the best contexts to consider when explaining it to others or determining if one is LOHAS. Boards include personal develolpment, images of nature, food and energy efficiency to name a few.

An expert in the construction industry, freelance writer Kristie Lewis offers tips and advice on choosing the best construction management colleges. She also enjoys writing about green building practices for business and home owners. She welcomes any questions and comments you might have at Kristie.lewis81@gmail.com.

A Smart Way to Segment Green Consumers

Thursday, June 7, 2012 by

4 deep green sub segments (with source)When you target customers, it helps to know if they’re “dark green”, “light green” or “basic brown” in their attitudes, but, with so many green issues, products, and labels out there, it may be more relevant to your branding and communications to understand their personal green interests.

Ask: To which environmental organizations do members of our target audience belong (The Appalachian Mountain Club or Greenpeace)? Which types of vacations do they take (hiking or the beach)? Which environmental magazines and websites do they read or visit? (Sierra or Animal Fair?) Which types of products do they buy? (green fashions or energy-sipping light bulbs)? Which eco-labels do they seek out (“USDA Organic” or “Energy Star”)?

In observing green consumers over the past twenty years my colleagues and I have found that asking questions like these allows companies to distinguish between four subsegments, which we’ve dubbed “Resource Conservers”, “Health Fanatics”, “Animal Lovers” and “Outdoor Enthusiasts.” Of course, there are some overlaps among these groups, but discovering which subsegment your customers mainly fall into can sharpen your marketing. The following descriptions are generalizations, but they capture the spirit of each type of consumer.

Resource Conservers hate waste. (I should know. I am one.) Spot them wearing classically styled clothing, toting cloth shopping bags and sipping from reusable water bottles. Avid recyclers of milk jugs and Tide bottles, they drop off old electronics at Best Buy. They read news on-line to save trees, and are quick to re-use their Reynolds wrap. Ever watchful of saving their “drops” and “watts,” they install low-flow showerheads and compact fluorescent bulbs branded with EPA’s Energy Star and WaterSense labels. Shunning over-packaged products, they only turn on the lights when they have to, and they plug their appliances into power strips for easy shut-off when they leave for work.

Some ways to appeal to resource conservers:

1. Highlight the economical, long-lasting and reusability benefits of products.
2. Offer services that enable them to recycle, compost and save energy.

Health Fanatics worry about overexposure to the sun, fear pesticide residues on produce, and fret over contaminants in children’s toys. They apply sunscreen, scout out natural-food stores for the latest in organic foods, buy only natural cosmetics and pet care, and have switched out the toxic cleaning products for the non-toxic ones under the sink. They look for products marked with the “USDA Organic” seal of approval or EPA’s Design for Environment logo.They scrutinize websites like Michigan-based Ecology Center’s HealthyStuff.org and HealthyToys.org to get the skinny on toxic substances on products from school supplies to automobiles. Find them on the memberships rolls of Beyond Pesticides, Organic Consumers Association and to be regular readers of Natural Life Magazine.

Some ways to appeal to health fanatics:

1. Focus on organic aspects, health benefits, trust, transparency and natural ingredients.
2. Cross-promote with organic foods companies or a non-toxic cleaning product or sponsor a website like OrganicConsumers.org, or advertise in Natural Life Magazine.

Animal Lovers are likely to be vegetarian or vegan, belong to People for the Ethical Treatment of Animals (PETA), and boycott tuna and products with real fur. They look for products labeled as “cruelty-free”, Salmon Safe, or Dolphin-safe. They seek out synthetic handbags and faux fur jackets, and favor the faux-meat options at restaurants. They perk up to news stories featuring animals in need, from manatees and polar bears to strays in their neighborhood, and are likely to volunteer at the local animal shelter. Out of concern for marine life, they eschew plastic bags. Catch them reading Animal Fair Magazine and Veg News Magazine.

Some ways to appeal to animal lovers:

1. Conduct a cause-related marketing campaign through PETA’s Business Friends program or partner with the ASPCA.
2. Advertise in Animal Fair Magazine and PAWS magazine or online on WWF.org.

Outdoor Enthusiasts spend their free time camping, rock climbing, skiing, and hiking. They vacation in national parks and plan their next adventure using tips from Outdoors Magazine. Whether they’re purchasing Dr. Bronner’s Castile Soap to reduce the impact of washing dishes while camping, or toting reusable bottles like Kleen Kanteen to avoid littering the trail, they seek to minimize the impact of their recreational activities. When shopping, they look for FSC (sustainably harvested) labels on their products, are also likely to purchase outdoor gear made from recycled materials, such as Synchilla PCR (post-consumer recycled polyester) from Patagonia.

Some ways to appeal to outdoor enthusiasts:

1. Conduct a joint promotion with national parks or manufacturers of boots, reusable bottles, and trail mix snacks.
2. Advertise in Sierra Club magazine or online at Backpackers.com.

How do you segment your green customers? And how does that affect your marketing strategy?

 

***Jacquelyn Ottman is the founder and principal of J. Ottman Consulting, Inc., an expert advisers on green marketing to consumer product marketers and U.S. government labeling programs. She is the author of four books on green marketing, including the recently released The New Rules of Green Marketing: Strategies, Tools and Inspiration for Sustainable Branding (Berrett-Koehler, 2011).
Download a free chapter and get more information here. Excerpted from The New Rules of Green Marketing: Strategies, Tools and Inspiration for Sustainable Branding (Berrett-Koehler 2011) by Jacquelyn A. Ottman. 

 

Sustainability Trends for 2012: energy, water and employee engagement

Friday, April 27, 2012 by

Energy EfficiencyA quick review of sustainability trends reported on the internet shows (not surprisingly) that energy will stay a high priority. The focus is on alternative energy, energy efficiency  and solar energy. Within the green building movement, retrofitting buildings for sustainability is gaining momentum.

This poses a huge market opportunity for businesses. However, it helps if (local) governments create the environment that is beneficial for investing in clean energy. For rapid introduction of new technologies a so called ‘innovation system’- the needs to be in place. Innovation systems are networks of organizations that work together on diffusing new technologies. They are facilitated through entrepreneurial activity, knowledge development through collaboration with educational institutions, and knowledge diffusion through networks such as accelerators and business platforms. Governments can play pivotal roles in facilitating innovation systems.

A more recent trend is concern over water issues. Many places in the world don’t have access to enough water to meet agricultural, urban and industrial water needs. Large areas deal with droughts, and disruptive weather patterns caused by climate change  aggravate these issues.

Though this is important for business, especially in the food industry, it is even more important to governments. Water supplies are directly related to energy and food needs. The repercussions of water shortages in combination with an exploding world population cannot be underestimated – and may lead to water wars. Meriting this issue to be dealt with from a diplomatic point of view. For example: it is for a good reason that China does not want to leave Tibet: the country is the source of all the rivers in the region.

Thirdly, employee engagement is finally on the corporate agenda. Which is great, because the social side of the triple bottom line often gets little attention.  I often wonder why we have so few very successful cases for sustainability. In my opinion, engagement is the missing link – you can’t just roll out policies, or change light bulbs. Sustainability becomes a part of the organization when employees are engaged in the subject. Luckily for us, there is a strong business case for engagement, and links to sustainability within a company

Focus On Consumer Self-Interest to Win Today's Green Customer

Sunday, April 22, 2012 by

Eco-labels are an excellent way to enhance credibility for green marketing claims, but they are not without risk. While 28% of consumers look to green certification seals or labels to confirm that a product adheres to claims, these labels can also confuse. Happily there’s enough method within the madness for marketers to pave a way forward.
 
Eco-labeling challenges
More than 400 different eco-labels or green certification systems are now on the market. Questions such as which label is better, which product is safer for the environment and what does a label even mean are common questions that well-intended green shoppers may find themselves asking when trying to make an environmentally responsible purchase.
 
Confusion can arise from labels that certify too much or too little information. Some eco-labels focus on a single product attribute (e.g., recycled content), which keeps things simple but can inadvertently mislead consumers into thinking the product is green overall. Other labels look at several characteristics of a product or even a product’s entire life cycle; such multi-attribute certifications may raise questions about the credibility of a single-attribute certified product while also preventing easy comparisons.
 
Some products, such as electrical appliances, have a number of labels and certifications, while others, such as mattresses or flatware, have none. Another common reason for confusion is the discrepancy in the levels of rigor applied to some eco-labeling—some require independent, third-party verifications while others allow self-certification.
 
Here are some important criteria to consider when seeking the labeling most relevant to your brand:
 
Single-attribute labels
 Single-attribute seals focus on one environmental issue, e.g., energy efficiency or sustainable-wood harvesting. Before certification, an independent third-party auditor is typically required to verify that the product meets a publicly available standard.
 
Many single-attribute labels are sponsored by industry associations looking to defend or capture new markets. Others are sponsored by environmental groups or NGOs that want to protect a natural resource or further a cause. Two single-attribute labels with a global presence are the Forest Stewardship Council (or FSC) label, ensuring the sustainable harvesting of wood and paper, and Fair Trade Certified, ensuring that strict economic, social and environmental criteria were met in the production and trade of such agricultural products as coffee.
 
Voluntary U.S. government labels
Unlike in some countries, such as Canada, Japan and South Korea, the U.S. government has opted for voluntary single- rather than multi-attribute labels. (The private sector and not-for-profit groups hold sway in the area of multiattribute eco-labeling.) Outside of those associated with independent testing, the government-backed labels don’t involve fees. One of the most visible and influential labels is the U.S. Environmental Protection Agency’s ENERGY STAR (for which we at J. Ottman Consulting were proud to advise over many years).
 
ENERGY STAR promotes energy efficiency in more than 60 product categories, and almost 3,000 manufactured products now feature the ENERGY STAR label. In fact, according to the Natural Marketing Institute, in 2009, 93% of the American public recognized the ENERGY STAR label and 73% said they would be more likely to purchase products that carried that label.
 
Other EPA labels include WaterSense, SmartWay (transportation) and Design for Environment (safer chemicals). The USDA stewards the USDA Organic and USDA Certified Biobased labels (another J. Ottman Consulting client).
 
Multi-attribute labels
As the name suggests, multi-attribute labels examine two or more environmental impacts. Founded in 1989, Green Seal is the granddaddy of them all. It provides a seal of approval for a variety of products that meet specific criteria on a category-by-category basis. Products are reviewed annually for a fee. A few of the organizations whose products now bear the Green Seal certification include Wausau Paper, Clorox, Kimberly-Clark and Hilton.

If your green ads showcase the now tiresome images of babies, daisies, and planets, your messages will likely be irrelevant to mainstream consumers. Eco-imagery may have tugged at the purse-strings of “deep green” consumers, but their lighter green counterparts, who make up the bulk of the market, want to know how even the greenest of products benefit them personally. While the environment may be the underlying reason a product was created or upgraded, it will likely not be the primary motivation for consumers to choose your brand over those of competitors.
 
Avoid green marketing myopia
In other words, don’t commit the fatal sin of “green marketing myopia”. As my colleagues, Ed Stafford and Cathy Hartman of the Huntsman Business School of Utah State, and I point out in our much-quoted article, “Avoiding Green Marketing Myopia,” remember that consumers buy products to meet basic needs - not altruism.
When consumers enter a store, they don their consumer, not citizen caps. They are looking to find the products that will get their clothes clean, that will taste great, that will save them money or that will make themselves appear attractive to others. Environmental and social benefits are best positioned as an important plus that can help sway purchase decisions, particularly between two otherwise comparable products.
 
Quiet Green Marketing
Underscoring the primary reasons why consumers purchase your brand - sometimes referred to as “quiet green” - can broaden the appeal of your greener products and services way beyond the niche of deepest green consumers. Quiet green might also help overcome a premium price hurdle. So, focus communication for greener products on how consumers can protect their health, save money, or keep their home and community safe and clean. Show busy consumers how some environmentally inclined behaviors can save time and effort.
 
To be clear, this does not mean focusing exclusively on such benefits - to do so would be to go back to conventional marketing altogether. But focusing too heavily on environmental benefits at the expense of primary benefits will put your product in the green graveyard, buried under good intentions. Happily, thanks to advances in technology, many greener products these days do provide added value in the form of enhanced benefits.

Does your green product improve health?
Keep in mind that the number one reason why consumers buy greener products is not to “save the planet” but to protect their own health. Categories most closely aligned with health are growing the fastest and tend to command the highest premiums. Health messages can apply to a wide variety of product categories. Consider, for instance, a print ad for AFM Safecoat (that ran here in the U.S.) featuring 16 buckets of paint; 15 of the buckets are painted red and bear labels such as “Gorgeous Paints,” “100% Pure,” “Low Odor,” and “Sustainable.” However, the last bucket stands out in green and announces “The Only Paint that is Doctor Recommended.”
 
Does your product appeal to the style-conscious?
American Apparel was created as a brand that provides excellent working conditions for its employees and uses organic cotton. But, in 2004, when its “sweatshop free” label did not bring in the numbers that CEO Dov Charney was hoping for, he switched to promoting a sexy, youthful image for his company - complete with racy, controversial ads with young women. Three years later, the company has 180 stores and revenue estimated at $380 million. Sounds heretical? Keep in mind that the same sustainably responsible clothing is still being sold to consumers, together with all the same benefits to society and the environment.
 
Does your product save consumers money?
Many brands find that their green benefits neatly translate into something direct and meaningful to the customer, such as energy savings translating into cost savings. Ads for Sears’ Kenmore’s HE5t steamwasher state that it uses 77% less water and 81% less energy than older models. The headline grabs readers with the compelling promise, “You pay for the washer. It pays for the dryer.” In New Jersey, Marcal’s Small Steps campaign positioned the use of 100% recycled household paper products as an easy measure to take for the environment and save money.
 
Today’s consumers want to know the back-story about products and packages, so focus on primary benefits in the context of a full story that incorporates the environment as a desirable extra benefit. Better yet, integrate relevant environmental and social benefits within your brand’s already established market positioning, and you’ve got the stuff for a meaningful sale.


******
Jacquelyn Ottman is the founder and principal of J. Ottman Consulting, Inc., an expert advisers on green marketing to consumer product marketers and U.S. government labeling programs. She is the author of four books on green marketing, including the recently released The New Rules of Green Marketing: Strategies, Tools and Inspiration for Sustainable Branding (Berrett-Koehler, 2011).
Download a free chapter and get more information here.

Excerpted from The New Rules of Green Marketing: Strategies, Tools and Inspiration for Sustainable Branding (Berrett-Koehler 2011) by Jacquelyn A. Ottman.
 

Originally published in The Guardian, September 23, 2011.



How to Choose the Right Eco-label for Your Brand

Thursday, March 8, 2012 by
eco labels

Eco-labels are an excellent way to enhance credibility for green marketing claims, but they are not without risk. While 28% of consumers look to green certification seals or labels to confirm that a product adheres to claims, these labels can also confuse. Happily there’s enough method within the madness for marketers to pave a way forward.
 
Eco-labeling challenges
 More than 400 different eco-labels or green certification systems are now on the market. Questions such as which label is better, which product is safer for the environment and what does a label even mean are common questions that well-intended green shoppers may find themselves asking when trying to make an environmentally responsible purchase.
 
Confusion can arise from labels that certify too much or too little information. Some eco-labels focus on a single product attribute (e.g., recycled content), which keeps things simple but can inadvertently mislead consumers into thinking the product is green overall. Other labels look at several characteristics of a product or even a product’s entire life cycle; such multi-attribute certifications may raise questions about the credibility of a single-attribute certified product while also preventing easy comparisons.
 
Some products, such as electrical appliances, have a number of labels and certifications, while others, such as mattresses or flatware, have none. Another common reason for confusion is the discrepancy in the levels of rigor applied to some eco-labeling—some require independent, third-party verifications while others allow self-certification.
 
Here are some important criteria to consider when seeking the labeling most relevant to your brand:
 
Single-attribute labels
 
Single-attribute seals focus on one environmental issue, e.g., energy efficiency or sustainable-wood harvesting. Before certification, an independent third-party auditor is typically required to verify that the product meets a publicly available standard.
 
Many single-attribute labels are sponsored by industry associations looking to defend or capture new markets. Others are sponsored by environmental groups or NGOs that want to protect a natural resource or further a cause. Two single-attribute labels with a global presence are the Forest Stewardship Council (or FSC) label, ensuring the sustainable harvesting of wood and paper, and Fair Trade Certified, ensuring that strict economic, social and environmental criteria were met in the production and trade of such agricultural products as coffee.

Voluntary U.S. government labels
 Unlike in some countries, such as Canada, Japan and South Korea, the U.S. government has opted for voluntary single- rather than multi-attribute labels. (The private sector and not-for-profit groups hold sway in the area of multiattribute eco-labeling.) Outside of those associated with independent testing, the government-backed labels don’t involve fees. One of the most visible and influential labels is the U.S. Environmental Protection Agency’s ENERGY STAR (for which we at J. Ottman Consulting were proud to advise over many years).
 
ENERGY STAR promotes energy efficiency in more than 60 product categories, and almost 3,000 manufactured products now feature the ENERGY STAR label. In fact, according to the Natural Marketing Institute, in 2009, 93% of the American public recognized the ENERGY STAR label and 73% said they would be more likely to purchase products that carried that label.
 
Other EPA labels include WaterSense, SmartWay (transportation) and Design for Environment (safer chemicals). The USDA stewards the USDA Organic and USDA Certified Biobased labels (another J. Ottman Consulting client).
 
Multi-attribute labels
 As the name suggests, multi-attribute labels examine two or more environmental impacts. Founded in 1989, Green Seal is the granddaddy of them all. It provides a seal of approval for a variety of products that meet specific criteria on a category-by-category basis. Products are reviewed annually for a fee. A few of the organizations whose products now bear the Green Seal certification include Wausau Paper, Clorox, Kimberly-Clark and Hilton.
 
Other multi-attribute labels exist primarily for specific categories, such as EPEAT in electronics and Global Organic Textile Standards. Still others address specific areas of concern: for instance, the Carbon Trust’s Carbon Reduction label ensuring that the carbon footprint of a product has been measured and is being offset, and the C2C (Cradle to Cradle) label with its emphasis on material chemistry and toxicity. Walmart’s Sustainability Consortium promises to eventually deliver multi-attribute guidance in the form of a Sustainable Product Index.
 
Self-certification programs
 Issued by manufacturers to denote their own environmental and social achievements, self-certification programs do not carry endorsements or the credibility of an impartial third party. However, they do provide distinct advantages in controlling costs and providing flexibility in the type and amount of information provided to consumers. Some self-certification systems showcase labels obtained from government or third-party labeling. Companies that have their own self-certification include NEC Corp. (Eco Products), Sony Ericsson(GreenHeart), General Electric Co. (Ecomagination) and Timberland Co. (Green Index).
 
Independent claim verification
 Independent for-profit organizations, including Scientific Certification Systems, Oakland, Calif., and UL Environment, Northbrook, Ill., will verify specific claims for a fee. They will also develop standards in industries where none exist as well as certify products against standards developed by other organizations.
 
Environmental product declaration
 ISO, the International Organization for Standardization, describes three types of eco-labels: Type I: Environmental Labels; Type II: Environmental Claims and Self-declarations; and Type III: Environmental Product Declarations (EPDs). More often used in Europe and Asia than the U.S., EPDs provide detailed explanations of the full life-cycle impact of a product.
 
An excellent example is the EPD issued per ISO 14025 by Steelcase for its Think Chair, designed to fit the needs of consumers around the world. Displayed at the company’s website, Steelcase.com, the EPD shares the results of three life-cycle assessments (needed to accurately assess impacts in North America, Europe, and Asia), and describes the various certifications it has received from different countries around the globe.
 
A way forward
Considering an eco-seal endorsement or independent claim certification for your brand or products? Use these suggestions to avoid confusion and maximize the potential value of an eco-label for your brand/product.
 
1. Choose wisely
 Ensure that the organization behind the seal and its methodologies are credible. In particular, look to see that its standards have been developed in accordance with standards-writing organizations such as ISO and local bodies such as the American National Standards Institute or the British Standards Institute.
 
2. Be relevant
 With so many labels available out there, it is quite likely that your brand may qualify for more than one eco-label and product attribute. Thus, aim to promote the attributes that are most relevant to your brand. Also, remember to integrate your eco-labeling into existing brand platforms. GE’s well-known Ecomagination designation extends from the company’s longstanding “Imagination at Work” brand platform.
 
3. Educate
 Avoid consumer confusion by educating your consumers about the specific criteria upon which your eco-seal is based. When it comes to single-attribute labels, take care to communicate that only a specific product attribute is being certified and that the entire product is not greener as a result. For credibility’s sake, if appropriate, communicate attempts to extend the greening process to other product attributes.
 
4. Be transparent
 If you opt to self-certify, be clear that the label is your own. For example, SC Johnson’s GreenList label was recently taken to task for appearing to be the work of a third party.
 
5. Promote your eco-label
 Considering that many eco-labels are not widely recognized by the average consumer, help to create demand for your eco-label through marketing communication consistent with your seal’s own guidelines. The ENERGY STAR label enjoys strong awareness thanks largely to the promotional efforts of the many manufacturers whose products bear the label coupled with advertising. Be sure to look for opportunities to distinguish your commitment to your selected eco-label from competitors using the same label.
 
******
 Jacquelyn Ottman is the founder and principal of J. Ottman Consulting, Inc., an expert advisers on green marketing to consumer product marketers and U.S. government labeling programs. She is the author of four books on green marketing, including the recently released The New Rules of Green Marketing: Strategies, Tools and Inspiration for Sustainable Branding (Berrett-Koehler, 2011).
Download a free chapter and get more information here.

Excerpted from The New Rules of Green Marketing: Strategies, Tools and Inspiration for Sustainable Branding (Berrett-Koehler 2011) by Jacquelyn A. Ottman. 

LOHAS Trends 2012

Saturday, January 28, 2012 by

After reviewing the numerous trend articles out there and considering my own perspectives I have put together some that I think are relevant to LOHAS. Here are a few that I feel are relevant for the coming year:

1. Whiskey is for Drinking, Water Is for Fighting Over
droughtThe famous Mark Twain quote will become more prevalent in society as new realities of water scarcity will become better known to an ever growing global thirst.  Everyone will talk about it but few will do anything. Sadly, it may only start to take off if humanitarian crises hit close to home.  As we focus on our societal water use, it is an admission that climate change is our new reality and it is time to start managing the effects. The material risks associated with increased droughts and flooding will be among the most poignant effects of climate change. You may already be talking about this with the lack of snowfall around the country during the early part of this year.

2. Capitalism is Changing as We Know and it Should
Since the Industrial Age, businesses have built their wealth off of the extraction of natural resources. Unless businesses start to value and protect these resources, this cycle will have a devastating impact on the lives of our children and grandchildren.  Richard Branson echoes this sentiment and also believes it cannot survive in its current model. This can also cause potential ecoflation identified in 2008.  Many people have begun to realize that business as usual is no longer an option. What is an option is to reinvent capitalism and truly be a force for good in the world. Certification groups such as FairTrade and Benefit Corporation are working to use the power of business to solve social and environmental problems.  The changing economic scene provides unique opportunity for innovation and success in unconventional settings. The sky is the limit as new ways to do better business are taking root everyday.

3. Blurring the Differences Between “For-Profits” and “Non-Profits”
nonprofit forprofitThere has been a surge of entrepreneurs providing innovative business solutions with the purpose of “doing good”.   In these tumultuous times when unemployment is high, many are turning their backs on the job fairs and putting their efforts into creating new businesses that fill needs such as TaskRabbit, and Viatask.   Non-profits will incorporate more for-profit business models into their programs. There is a strong growth in social entrepreneurialism globally and this will increase with the emergence of new solutions for world issues. Groups like the Social Venture Network, Sansori and Unreasonable Institute will increase to provide resources for start ups. Social enterprises will encompass the very definition of business and 2012 will be an important year.

4. Gamificating Your life
Expect and increase in the game addiction methods to make a world a better place this next year. Game and point system rewards programs such as My Recycle Bank , My Energy and Greenopolis will see newcomers such as Ecobonus that rewards points to green and organic shoppers. More smart apps will provide LOHAS shoppers and energy efficiencies for homes and automobiles. 

5. Evidence Based Sustainability
Proof of sustainability will be emphasized more than ever as businesses will seek cost effective measure to reduce bills and be a good environmental citizen. Purchasing departments will be requiring vendors to document how they address sustainability issues within their own businesses will become more commonplace. As facilities and businesses increasingly operate in a more sustainable manner, they will turn to "dashboard" systems to help measure, manage and report progress.

6. We'll All Want to Plug in to Plug-in Hybrids
plugin hybridHybrids are not new but the latest improvements in technology will allow them to be more affordable to the average consumer. If electric cars like the Nissan Leaf and Chevy Volt are the trail-blazers, plug-in hybrids could be the game-changer the auto industry has been seeking. The prospect of a car that can travel distances of up to 40 miles using electric power before switching to a gas engine for longer journeys promises to overcome the biggest objection to electric cars - the fear the battery will run out mid-journey.  Design also looks exciting. We only need to look into BMW i8 roadster concept and visualize where this might take the car industry in near future. The high profile Vauxhall Ampera and Toyota Plug-in hybrid will create a lot of buzz this year and assuming the cars offer reasonable performance they could quickly become the default option for green-minded motorists and cost-conscious fleet operators

7. More Fun with Sharing Stuff
Sharing will not only be a part of social media but of reality. Considerations of downscaling due to financial, lifestyle reasons or social pressures will increase in sharing the excesses of the past decade as we become more conscious of what we have that we don’t use that others can borrow. Rent Stuff, Loanables and Rent Stuff Easy allow you to do exactly what they say.  A while back Sharable listed eight ways to share your stuff. That's about few of those thousands of ways of giving your stuff (or money) away for charity. Couchsurfing connects travelers with people who offer their homes as an economical place to stay. Rising oil costs will put pressure on transportation and the demand for shared and public transportation. Transportation share programs such as Zipcar, Bixi or Bcycle will increase. In four years the number of registered users have gone up from less than one million to more than four million. By carpooling, shared trips have gone up from less than three million to almost eight million.
 
8. Responsible Profitability Attracts Attention
Responsibility has been strongly associated with greater profitability, equity and asset returns, and shareholder value creation. But that’s no longer good enough. Today, the bar is being raised; success is itself changing. Companies are beginning to be judged against a whole new set of criteria by customers, governments, communities, employees, and investors. They’re already saying, so you made a profit. Yawn. Did you actually have an impact? Did what you do have a positive, lasting consequence that was meaningful in human terms? Several studies have provided evidence suggesting that betterness yields greater equity returns, asset returns, and profitability. This not only makes sense for those who are mission oriented but also for risk management.  One recent study found firms that score strongly in terms of corporate social responsibility (CSR) find that their cost of equity capital financing is consistently lower than firms with weaker CSR track records. Responsibility fuels outperformance because it is risk management: better insurance against adverse future events.

9. Emphasis on Corporate Culture
Successful startup companies such as Method, Zappos and New Belgium Brewery are all preachers of their unique culture developed around their workplace. They preach not to chase the profits but to chase the dream. Engaging employees as a collective of ideas and not compartmentalization is a new form of corporate structure. It is not just about the fun office parties and surroundings but understanding the larger mission of the company and empowering employees. Creative agencies and culture builders have seen the need to train and educate companies on these emerging traits that are attractive for the young new work force.

10. Natural Disasters Will Continue
Expect your homeowners insurance rate to rise in 2012 as weather related damages cost $70 natural disastersbillion in U.S. economic losses in 2011.  All the indicators on climate risk are pointing the wrong way.  The financial and human cost of extreme weather and climate-related disasters is on an unmistakably upward trend. Meanwhile, our energy infrastructure remains as risky as ever with the Fukushima disaster following the BP oil spill in highlighting how fragile our energy supplies really are. It is a safe bet that 2012 will again be marred by a large-scale environmental tragedy of one form or another. Meanwhile, sensible businesses and policymakers will start taking climate adaptation more seriously.

References for these trends are:
Ecopreneurist.com
Taombo.com
Greenbiz.com
Huffington Post
PR Newswire

Are there any missing? Let me know what others trends you forsee for 2012 and LOHAS.

 

Ted Ning is renowned for leading the annual LOHAS Forum, LOHAS.com and LOHAS Journal the past 9 years Ted Ning is widely regarded as the epicenter of all things LOHAS leading many to affectionately refer to him as ‘Mr. LOHAS’. He is a change agent, trend spotter and principal of the LOHAS Group, which advises large and small corporations on accessing and profiting from the +$300 billion lifestyles of health and sustainability marketplace.  The LOHAS Group is a strategy firm focusing on helping companies discover, create, nurture and develop their unique brand assets.  For more information on Ted visit  www.tedning.com

Netflix Subscribers See Red, But Video Streaming Is All Green

Monday, September 26, 2011 by
When Netflix CEO Reed Hastings raised prices dramatically to discourage use of mail-in DVD service in favor of internet streaming, all holy hell broke loose with both customers and investors. The company has lost nearly half its market value since July and nearly one million customers have abandoned ship. 

Netflix Envelopes



Amidst this fury, I began thinking about Netflix as a customer and as a environmental advocate. My conclusion is that while Mr. Hastings probably needs some brushing up on his bedside manner or maybe should attend charm school, his edict is a blessing for the green world. Alas, Blockbuster, R.I.P., and as much as I like popping a couple of those little red envelopes filled with my favorite films into my brief case so I can view them anytime or anyplace, this practice as well needs to end.

Logic prevails when analyzing the Netflix situation. Think about the amount of fossil fuels burned by thousands upon thousands of SUVs with well-meaning suburban mom and 60 pound kid aboard, driving in traffic to the video store to grab the latest new release of Twilight or Justin Bieber's Never Say Never. Or more recently, the U.S. Postal Service trucks and vans, filled with hundreds of thousands of those red envelopes, transporting them across the nation to the mailboxes of America -- and back. It is impossible to estimate the amount of fuel needed for this logistic. 

Enter video streaming. From a green perspective, this is a brilliant way to save gazillions of gallons of fuel, and deliver movies to Netflix customers in real time. And while I feel badly for our continually shrinking U.S. Postal Service, the elimination of the red envelopes will save untold amounts of fuel and emissions since delivery and pickup is no longer part of the equation. Admittedly, the tens of thousands of computers, servers and televisions that will be used to view the streaming movies still create quite a bit of ambient heat. However, from a sustainability standpoint, the score is streaming one, delivery/pickup zero. Not to mention, Netflix will increase its profit margin by saving many millions on packaging, postage and handling.

A United States Postal Service truck seen in Carson City, Nevada. Photographed by Coolcaesar on December 24, 2005.
A United States Postal Service truck seen in Carson City, Nevada. Photographed by Coolcaesar on December 24, 2005.



A recent story on Gigaom quoted an NRDC study showing that streaming is vastly more energy efficient than other forms of movie watching. Netflix believes in this so deeply that it is splitting the company into two separate entities, probably in secret hopes that the DVD delivery side will be phased out. (The new "hard copy" DVD delivery and return side will be called Quickster.) 

There will be some losses of jobs at both the Netflix warehouses and USPS, which again, I feel badly about. The overall result however speaks for itself: streaming video is way, way greener than any other way to watch a film. So, my sustainable friends, our recommendation is that you forget about the Great Netflix Controversy, cancel your Quickster subscriptions, and take the streaming-only portion of the subscription service. Here is another case where going green is not only the smart and environmentally conscious choice, but also good for the company. We like it, and Netflix will, too.

Follow Jennifer Schwab on Twitter: www.twitter.com/SCGreen_Home

Green Marketing Q&A with Seri McClendon, CLEAN Agency CEO

Thursday, July 28, 2011 by

The 2011 Green Brands Survey recently found that consumer interest in green products continues to increase and has expanded across categories – from personal care, food and household products to automotive, energy and technology goods. Companies across all sectors are rolling out new and or improved products touting eco-friendly attributes. With such a varied selection of products making green claims, how does one make an educated decision on the best products for their family and lifestyle? Seri McClendon, chief executive officer of CLEAN Agency, shares insight on this issue.

Seri McClendon

What are businesses doing to meet consumer demand for eco-friendly products and services?

Sustainability has become a key business issue for consumer product companies. They recognize that in order to remain competitive they must shift to meet the changing demands of consumers and of the environment. To do this, businesses are taking a critical look at their supply chains and determining how they can produce better products that have a reduced impact on the environment and can still deliver on their brand promise. Some of the ways this is being done include responsible raw material sourcing, more efficient manufacturing processes and reduced, reusable or recyclable packaging materials to cut waste to landfills. Companies are also beginning to highlight such innovations on their product packaging to promote their commitment to environmental stewardship and gain loyalty from like-minded consumers.

When shopping for green products, what should consumers know about “greenwashing” and how can they evaluate eco-friendly product claims?

Greenwashing has received a lot of attention lately as more and more businesses try to capitalize on the growing consumer interest in green products. Greenwashing refers to deceptive marketing used to promote a misleading statement or perception about a product, policy or service.  The first step in making smart purchase decisions is to educate yourself before heading to the store. GreenerChoices.org is an excellent resource for consumers that want to learn more about specific product claims and their meaning. The site provides independently researched, unbiased information on product safety, health and nutrition, updated label claims and other related topics.

Certification labels from reputable environmental organizations can also help consumers choose sustainable products. The Environmental Protection Agency, for example, provides Energy Star certification for energy efficient home appliances and the Design for the Environment label for high performance, cost effective and environmentally-friendly cleaning products. Responsible consumer product companies like Seventh Generation, Patagonia and Aveda also document and substantiate product claims on their web site.

How can consumers further drive sustainability efforts of their favorite brands?

Be vocal! Let the brands you patronize know how you feel about their products and their efforts towards becoming more sustainable. Share feedback on a company’s web site, comment on news stories written about sustainable innovations of your favorite brands and leverage the power of social networking sites like Facebook and Twitter to let companies know what you want from their products and services.

ABOUT SERI MCCLENDON

Seri McClendon is the CEO of CLEAN Agency. She is an industry veteran with more than 22 years of marketing experience. Seri formed CLEAN, an integrated agency serving the sustainable business sector, from her passion for environmental studies, policy and science. She holds a Masters degree in Geography with an emphasis in Industrial Ecology and a BA in marketing. Seri is a member of The USC Center for Sustainable Cities Advisory Board and was recently recognized as an Outstanding Woman in Environment and Energy Efficiency by the 2011 Women in Business Awards. 

Downsizing -- A Thousand Square Feet Per Person, A New American Standard

Monday, June 20, 2011 by

Let's face it, the Great Recession has not been a plus for the green movement overall. Most ordinary Americans are still sympathetic to the cause, but their willingness to spend even a penny extra for environmentally friendly products has been dampened by four dollar gas, five dollar cereal and loss of equity in their homes.

On the other hand, a positive by-product of all this is a lot less enthusiasm for what used to be part of the American dream: a McMansion of your very own, and the extra cars, boats and even planes that went along with this be-careful-what-you-wish-for icon. I know many successful boomers who are now moping around their 8 to 12,000-foot monuments to capitalism (many of them rendered in classic McMansionesque Tuscan style architecture) wondering what to do with the unused acres of space. "The Brady Bunch house seems like a shack compared to the dream of the typical middle class homebuyer/builder," said New York copywriter Jenny Lazar in an email to me on this subject. Indeed, her point is well taken, what used to be considered a large house is of modest dimensions by today's standards.

This is not meant to pass judgment on a long-standing tradition and part of the American Dream as we used to know it: a large, spacious home featuring huge foyer, high ceilings, many bedrooms and bathrooms, giant dining room and eat-in kitchen, multi-car garage, and more. Instead, this is to point out that perhaps America's long-standing love affair with this type of -- not very green -- home has finally run its course?

I can think of a number of successful friends who live in houses of this description. Surprisingly, many of them are empty-nesters or have only one or two children, which is hardly enough to fill a home with six to ten bedrooms. Other than the several times per year that they host major parties, community events and/or charity functions, they just aren't getting the value out of their super sized abodes. And a lot more often than you'd think, these homeowners are saying, "boy, if I could get out of this place whole, I'd like to sell it and downsize to a smaller house..."

Why do they want out? Usually, it's not only the unused space, but the carrying costs. Heating, cooling, cleaning and maintaining huge homes is an expensive proposition. Not to mention, the property taxes. The care and feeding of a large home is a big responsibility that seemingly never ends.

Indeed, magazines like DWELL, and websites such as Inhabitat.com -- both leaders of architectural style and design - showcase smaller homes for families of up to four members. Usually these are in the 1,000 to 3,000 square foot range, built with fully sustainable materials and state-of-the-art energy efficient HVAC systems. Real ecological living spaces. Upon considering this trend versus the longer-standing bigger is better, Sierra Club Green Home.com proposes a new industry standard that balances our longtime desire for lots of space with the current and future need to downsize: one thousand square feet per inhabitant, max. So, a family of four would get up to 4,000 square feet, a childless couple would have 2,000 feet or less, and so on. Sorry, pets don't count as people (although my personal bias is that having a large dog in a very small space is not healthy for the animal).

No doubt hardcore environmentalists will think this plan is too liberal, but I believe we have to start somewhere and we have to be realistic about the ability to change long-standing philosophies overnight. Perhaps ultimately downsizing should mean 750 or even 500 square feet per inhabitant? For now, however, in this first incantation, I think the 1,000 feet per person proposed by Sierra Club Green Home makes sense.

One small problem presents itself in all this: what do we do with the multitude of huge homes that are on the market now and will be even more plentiful once the downsizing trend catches fire? Indeed, McMansions in most major cities can be bought for hundreds of thousands if not millions less today than at the peak of conspicuous consumption, 2007. This probably won't change given the dynamics of the market. Think about it, the older empty nesters increasingly want to voluntarily downsize, for sustainability among other reasons. And to their credit, the new, younger generation of successful people don't seem to want the huge homes. They are gravitating toward the smaller, hipper, more sustainable structures featured in DWELL and Inhabitat.com. Which is great for sustainability in general, as these younger opinion leaders are setting a new standard for what is considered "making it" in American business.

Overall, too many McMansions on the market could be viewed as a positive. How they will be absorbed by the marketplace overall is an issue, but in general, we see a very real possibility that downsizing may become "the new black" in terms of what's considered chic, hip, cool AND sustainable. And that's a good thing overall.

Does your current living arrangement meet the measuring stick? We want to know, let us hear from you, thanks!

 

Follow Jennifer Schwab on:

Facebook: www.facebook.com/sierraclubgreenhome

Twitter: @SCGreen_Home


50 Great Ways to Go Green In Your Dorm Room

Friday, April 1, 2011 by

dorm chairMoving into a dorm room can be a tumultuous experience for many college students, especially those unused to such close-quartered communal living. While many things about life will change when they finally move into a dorm, one thing can stay the same — a commitment to living green. There are tons of ways students can make their cramped life greener and get even more out of their college experience. Here are just a few ideas to get you started on your green dorm living.

Shopping

These tips will help you to outfit your dorm room with everything you need while still staying green.

1.     Buy furnishings locally. If you’re going to college far from home, buy your furnishings locally instead of hauling them with you. It’ll save on gas and still give you access to everything you need. Some stores, like Bed, Bath and Beyond, may give you the option of purchasing remotely and picking up at your destination so you don’t have to move a thing.

2.     Shop at resale stores. Not everything for your room has to be brand new. You can be green and save money by shopping used.

3.     Browse Freecycle. Why pay for what you can get for free? Use sites like Freecycle to pick up great stuff for your dorms at little to no cost.

4.     Buy organic cotton sheets. Organic cotton and other natural fibers like bamboo are incredibly soft, durable and don’t require any pesticides to produce.

5.     Look for natural fibers. When shopping for blankets, rugs and towels look for natural fibers. They’re more environmentally-friendly, even though they may cost more to purchase up front.

6.     Get a plant. A plant will not only help your room feel more homey, it will help to clean the air as well.

7.     Look for recycled paper products. When buying paper towels, toilet paper or printer paper, opt for recycled materials.

8.     Avoid disposable furniture. While it might seem like a bargain, cheap, particle-board furniture won’t last and will only end up in a landfill. Higher quality furniture will be a better investment for you and environment in the long run.

9.     Buy things that will last you beyond the dorms. When purchasing things for your room, look for those that will work if you decide to move into an apartment later. That way you won’t have to spend money and resources when you get out.

10. Look for environmentally friendly storage solutions. This can mean getting canvas or metal baskets or looking for plastic bins that are made of recyclable materials.

11. Find or make reusable shopping bags. Don’t bring home loads of plastic bags. Instead, invest in some nice reusable ones. Or make your own.

12. Skip heavily packaged items. Unless it’s something you really, really need, avoid purchasing items that come with way too much packaging. It’s wasteful and will be a pain to deal with once the item is unpacked.

Appliances

From fridges to air conditioning, use these tips to save on energy when it comes to appliances.

13. Look for Energy Star appliances. When buying a mini-fridge or microwave for your room, always do your research to find the most energy efficient models.

14. Use compact fluorescent bulbs. Replace those incandescent and halogen lights with compact fluorescents instead.

15. Turn off your computer when you’re not using it. It saves energy and will help your computer to get a much-needed break. If you don’t want to turn it all the way off, at least make sure it’s sleeping or in power-down mode.

16. Watch out for energy vampires. Chargers for phones, computers and the like suck up energy even when not in use. Use a power strip you can easily turn off to help reduce their impact.

17. Pay attention to the chill factor in your fridge. Keeping your fridge out of the sun and regularly checking its thermostat can help it use less energy over time.

18. Get rid of the AC. Most older dorms don’t have built in AC, but some do allow window units which can be big energy hogs. Forgo the AC if you can handle it, or only switch on to help you sleep or study rather than leaving it on all the time.

Cooking and Eating

Waste less and conserve more when it comes to cooking and eating with these ideas.

19. Avoid plastic water bottles. Instead of stocking up on plastic bottles of water, get a reusable, filtered pitcher. You’ll save tons of plastic from being wasted.

20. Kick the packaged snack habit. Instead, purchase snacks that aren’t individually packaged. Fresher snacks are greener and healthier to boot.

21. Find low-energy methods of cooking. Cooking in a rice cooker, toaster oven or crock pot can mean making delicious meals with much less energy.

22. Buy reusable silverware and plates. Instead of going with the disposable kind, invest in some nice cups and plates you can store and reuse in your room. If you’re worried about breaking glass, go for a recyclable plastic instead.

23. Reuse plastic grocery bags. Don’t throw out perfectly good plastic bags. Use them as liners for your garbage cans or find a number of other great uses for them.

24. Eat smart in the cafeteria. Only take what you know you can eat and avoid using a tray if you don’t have to in order to keep your diet and dorm greener.

Community

Dorm rooms are the perfect place to get close to others and spread your green ideas.

25. Start a club. Want to get the word out about greening the dorms? Start a club on campus to promote activism.

26. Go communal. Instead of having your own fridge or microwave, share with others in your dorm when possible.

27. Green your move out. Don’t simply throw out items when you move out of the dorm. Donate them to a resale store or give them to new students.

28. Share with your roomie. There are numerous items that can be shared between you and your roomie, saving space and materials.

29. Get others interested in your cause. Talk to others on your floor about being green. Post flyers and posters to help them understand just what you’d like to accomplish.

30. Talk to administrators about green ideas for the dorms. There are loads of ways to make dorms greener, and many ways that your college can start being environmentally friendly. Talk to them about your own ideas, you might just see change.

31. Embrace the small space. Living in the small space isn’t the worst thing in the world. It will help you use and waste less, appreciate what you have more.

Green Clean

Give some of these ideas a try to keep your dorm room and yourself clean while still remaining green.

32. Forego plug in air fresheners. They might make your room smell better, but they’re not good for the environment. Clean up your room instead or use natural air fresheners.

33. Do laundry in cold water. It will save on the energy used to heat water and will get your clothes just as clean.

34. Purchase earth-friendly toiletries. Toiletries can be full of harmful chemicals, so reduce your exposure by purchasing those that are better for your body and the earth.

35. Clean your room naturally. Ditch the harsh bleaches and chemicals for cleaning. Instead, choose products that are green or natural to tidy up with.

36. Take shorter showers. It might be nice to luxuriate in long showers, but you’ll be wasting loads of water. Instead, keep it short and sweet.

37. Get all natural flip flops for showering. Kick the plastic flip flop habit and go for natural materials instead.

38. Turn off the faucet when brushing your teeth or washing your face. Be kind to the earth by turning off the tap when brushing your teeth or washing your face.

39. Buy chemical-free detergent and fabric softeners. There are several brands out there that make great chemical-free detergents. These options are better for the environment and will leave your clothes wonderfully clean.

Saving and Recycling

Try out some of these tips to ensure your time in the dorms leaves as little impact on the health of the earth as possible.

40. Recycle class materials. Don’t just toss out old notes and papers from class. Put them in the recycle bin instead or use them as scrap instead.

41. Make your own. Rather than going out to buy decorations for your room, make your own using items you already have. There are numerous ideas out there you can use.

42. Never leave the lights on. Keeping the lights on when you’re not in the room is just plain wasteful. Always turn them off when you and your roomie are out.

43. Upcycle old items. Something might not be useful on its own anymore but can be nice when upcycled. Use these ideas to make your dorm room nicer.

44. Take old soda cans and bottles to a recycling center. If you’re like many students and have an addiction to caffeine, you probably have a few soda cans and bottles hanging around. Instead of tossing them out, recycle them.

45. Recycle boxes or invest in reusable containers for moving. Dorms can be pretty wasteful places when students are moving in and out. Do your part to reduce this by recycling and reusing anything you can.

46. Store instead of shipping. Instead of shipping your items back and forth between home and school when you go home for summer, store them locally.

47. Insulate windows. This can help use less energy when both heating and cooling your room.

48. Read online instead of printing. When possible, read your assignments online instead of printing them all out.

49. Buy rechargeable batteries. Devices like remotes and game controllers run through batteries pretty quickly. Instead of simply throwing them out, get some rechargeable ones instead.

50. Print on both sides of paper. When allowed (some professors don’t like it) print on both sides of the paper to use half as much.

For more tips visit Onlineclasses.org

 

Ted Ning is renowned for leading the annual LOHAS Forum, LOHAS.com and LOHAS Journal the past 9 years Ted Ning is widely regarded as the epicenter of all things LOHAS leading many to affectionately refer to him as ‘Mr. LOHAS’. He is a change agent, trend spotter and principal of the LOHAS Group, which advises large and small corporations on accessing and profiting from the +$300 billion lifestyles of health and sustainability marketplace.  The LOHAS Group is a strategy firm focusing on helping companies discover, create, nurture and develop their unique brand assets.  For more information on Ted visit  www.tedning.com