I'm not necessarily a follower. But  I'm proud to announce that I've joined a cult. Cloud Cult, the indie band, originally from Minneapolis, that now lives on an organic, geothermal- powered Wisconsin farm.

At First Avenue a few nights ago, the venue where rock star Prince first came onto the scene—Cloud Cult played to two sold-out shows and put on a show that was pure magic.

Their new album Love, is beautiful, insightful, mystical, wise and takes listeners on an inner odyssey that is guaranteed to rock your world.

The band's label, Earthology, is committed to greening the music industry, offsets carbon from tours and developed the first 100% post-consumer recycled CD packaging in the U.S. 

As a leader in the LOHAS (Lifestyles of Health & Sustainability) space, and president of firefly180 marketing, I know the power of music as a vehicle for change.

Working with green artists that include John Denver, Kenny Loggins, Jack Johnson and the Dave Matthews Band,  I know that music speaks to the soul and touches the heart in ways that words alone can't.  Music and lyrics are the ultimate integrated marketing campaign. Songs become doors that open the mind to action. And for environmental artists, music can be a platform that becomes a springboard for change.

Cloud Cult doesn't just write and perform music. They literally shower the world with love.  Just like all of us in  conscious businesses. Although not all of us can sing and compose music, our voices are heard just the same.

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

Shelley Lotz has over 25 years of experience in the spa/wellness/beauty industry as an esthetician, educator, and business owner. She is a major contributing author of Milady’s Standard Esthetics Fundamentals, a core textbook for esthetician students. She started an institute of aesthetics and is also a Certified Sustainable Building Advisor. Contact her at lotz.shelley@gmail.com.

The book will be featured at LOHAS and Ted Ning is one of the book contributors, as the LOHAS philosophy is a key part of the green business movement. 

This is my first blog post for LOHAS and I’m happy to be here. I’ve been reading LOHAS newsletters for over a year now. I nodded in agreement so often that I jumped at the chance to join the conversation.

A focus on green business

While LOHAS covers many topics, my posts will focus mostly on green business. I am an MBA and spent many years in corporate America before leaving to start my own green business in 2011.

I believe that business can and should play a key role in the transition to a greener economy. Traditional big businesses have enormous financial and people resources at their disposal.  When they decide to move in a particular direction, they can do so with an impact that a small business can’t match.

Unfortunately, in my experience, big business's singular focus on quarterly profits conflicts with the vision, courage and patience necessary to reinvent themselves as truly sustainable enterprises.

So while I celebrate all businesses that move in a greener direction, I see smaller (and privately owned) businesses as leading the way for now. They have a nimbleness and a willingness to embrace change that larger businesses often lack. I suspect that until government mandates the changes necessary to move sustainable practices from optional to mandatory, certain business players will remain in the old, unsustainable model. In the meantime the rest of us need to charge ahead.

The sustainable business view from here

I also want to share the view from my current home in Tampa, Florida. Despite its moniker as the “Sunshine State,” Florida lags on policies ranging from renewable power standards to mass transit. One reason I read LOHAS is to keep up with developments in places like California and Colorado that are – ahem – ahead of Florida in this regard.

We have astonishingly beautiful natural resources in Florida. (That's a roseate spoonbill in the picture above.) From the Everglades to the Gulf beaches, there is “natural capital” here that needs to be protected. Not just because it’s pretty – although you’d think a state whose largest industry is tourism would understand its value. But because when the natural environment is healthy, so are the people – physically and economically.

Here are 3 challenges I’ve encountered as a green business owner. Which ones resonate with you?

Lack of awareness – when I say “green”, many people think I am referring to the color, or that I am describing myself as a newbie. (I’m not.) The topic of greener business is generally not on people’s radar here.

The schools educate kids about sustainability issues better than the mainstream media does for adults. Case in point: I asked a local publisher several years ago why his Florida business-focused magazine did not have a regular feature on green business. He replied that his readers (of whom I am one) weren’t interested in that. I find that stories about green business, green jobs and green learning programs are generally under-reported.

Fragmentation of effort – there is tremendous fragmentation and lack of coordination across green businesses, nonprofits and government agencies when it comes to efforts to go green. When I go to EcoFests, green business networking events and climate change conferences,  I am struck at how many well-intentioned people are struggling to do basically the same things. Imagine if all this effort and resource were consolidated and coordinated in an organized fashion. The whole impact could be greater than the sum of the parts.

Under-funding – too many businesses still see sustainable business practices as optional or a PR move. It’s long past time to invest in something more than recycling bins. To me, green business is a money-making venture for everyone.  Did you know that green jobs are the fastest growing sector in the economy?

The Good News

There is a lot going on under the radar. Last week I attended the 5^th Annual Sustainable Business Awards at the University of Tampa. 13 winners collected awards and applause for their “triple bottom line” approach to business. Their businesses ranged from LED lighting to community-supported agricultural farms to recycled air filters. With one or two exceptions, you probably wouldn’t recognize any of their names. But these are the business that will shape the future.

Opportunities in green business are limitless. As a business person, I see the need to reinvent our economy in a more sustainable fashion not just as a daunting challenge, but as a huge opportunity.  To make a good living while helping to save the planet  - what’s not to love?

What do YOU want to hear about?

So that’s LOHAS blog post #1 for me. Let me know your thoughts and tell me what you’d like to hear about in future posts.

About the Author

Alison Lueders is the Founder and Principal of Great Green Editing. She provides writing and editing services to green businesses and social enterprises that value high-quality content. She ensures that their content and communications – their business face to the world – are correct, clear and compelling. She is a graduate of Harvard College and received her MBA from MIT. She earned her Bronze seal from Green America in April 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.

Here at Compass Natural Marketing, a lot of folks ask us about resources for finding jobs and career opportunities in the $300 billion LOHAS market, i.e., the “Lifestyles of Health and Sustainability” market for natural, organic, eco-friendly, and socially and environmentally responsible products and services.

There are a lot of great companies and NGOs in the LOHAS market, from organic food to renewable energy and from yoga to green building. In fact, with significant growth in demand for natural, organic and sustainable products, according to the Organic Trade Association, the organic food industry is creating jobs at a much higher rate than the conventional food industry.

Here are some good resources below for finding jobs in the natural and organic foods and sustainable products industry, and for social and environmental mission based organizations.

Of course, if you identify companies you’d like to work for, check their websites. Often, the larger companies, such as Whole Foods Market, UNFI, Pacific Natural Foods, Earthbound Farm, and other brand leaders will have job postings on their own websites. Do some research of your favorite brands.

We welcome your comments and suggestions to add to the list.

Green Job Resources

Green Dream Jobs. You can search by level and region. Awesome resource presented by our friends at SustainableBusiness.com.
www.sustainablebusiness.com/jobs/

Here’s a great resource for sales, marketing, management and executive level jobs in the Denver/Boulder region, created by our friend and colleague Luke Vernon.
www.lukescircle.com

Also, GreenBiz has a great sustainable jobs board.
http://jobs.greenbiz.com

TreeHugger has green job listings.
http://jobs.treehugger.com

Sustainable Industries posts green jobs across the country.
http://sustainableindustries.com/jobs

Just Means job listings have a social mission and NGO focus.
http://www.justmeans.com/alljobs

Natural and Organic Industry Resources. A good compendium of industry resources.
http://naturalindustryjobs.com/natural-organic-foods.asp

Naturally Boulder is another resource for job listings in the Boulder/Denver region.
http://www.naturallyboulderproducts.com/news/#jobs

World Wide Opportunities on Organic Farms. Wanting a Peace Corps-like volunteer experience, but on an organic farm somewhere around the world where you can learn about organic agriculture? Feeling young and adventurous? Check out WWOOF.
http://www.wwoof.org

Green Career Guide job thread.
http://greencareerguide.jobthread.com

California Certified Organic Farmers, an excellent organization for organic producers, posts job listings.
http://www.ccof.org/classifieds.php#emp

ReWork:  Founded in 2011 by alumni of the Unreasonable Institute in Boulder, ReWork helps people find careers in values-based, socially responsible and sustainable businesses.
http://rework.jobs/talent

Hope this helps get you started. Happy green job hunting!

________________________________________________

Steven Hoffman is Managing Director of Compass Natural LLC, a full service marketing communications, public relations and business development agency serving natural, organic and sustainable business. Hoffman is Co-founder of the LOHAS Forum annual market trends conference, former Editorial Director of New Hope Natural Media’s natural and organic products trade publication division, and former Program Director of Natural Products Expo East and West. A former Peace Corps volunteer and agricultural extension agent, Hoffman holds a M.S. in Agriculture from Penn State University. Contact steve@compassnatural.com.

The sharing trend that became popular with Zipcar is likely to expand to other industries such as tools and baby gear as consumers readjust their spending patterns to focus less on conspicuous consumption and more on making thoughtful choices with their money, says one leading social forecaster.

In the improving but not yet booming economy of 2013, Patricia Aburdene, author of the New York Times bestseller "Megatrends 2000" and most recently "Conscious Money" (Atria Publishing; $16 paperback), predicts priorities and values will play a bigger role in shaping spending decisions.

"Key concepts like practical, quality, meaningful, simplicity, chemical-free, local and sustainable will be what encourages consumers to open their wallets," said Ms. Aburdene, who lives in Boulder, Colo.

For the most part, people are still feeling some financial stress brought on by the Great Recession that started in December 2007, which she says is fueling the popularity of sharing trends such as Zipcar, which allows members of its sharing network to reserve cars for personal use by the hour or the day.

The car-sharing niche created by Zipcar in January 2000 is already starting to see more competitors. Hertz, Enterprise and UHaul have come up with their own versions of short-term car rentals. Regional competitors such as City CarShare in San Francisco, Mint in New York and Boston; and I-GO in Chicago also are becoming bigger players.

"Car sharing is taking off because people are realizing how darn much it costs to own a car," Ms. Aburdene said, adding that car sharing is more of an urban phenomenon.

Other new societal demands and behavior that she expects will gain more traction are transparency, fair trade and third-party verification of products.

Just as the "Good Housekeeping Seal of Approval" helped consumers in past decades put their trust in a product, Ms. Aburdene says more shoppers will be drawn to seals of approval from groups like Greenpeace and the Rain Forest Alliance. "Those product seals will let consumers know the company is socially responsible and the consumer is making a difference in the world when they buy the product," she said.

Fair trade is another growing global movement that will affect spending, according to Ms. Aburdene. Fair trade products -- ranging from coffee to chocolate to wine -- sometimes cost more so that farmers are paid fairly for their efforts.

Gerald Celente, publisher of The Trends Journal in Kingston, N.Y., said he agrees with Ms. Aburdene's analysis of 2013 trends in general. But he says the majority of Americans are on a downward economic path and may not have the luxury of making socially conscious spending choices, especially when there are cheaper alternatives.

"While they can have the best intentions, it's a stomach issue and a pocketbook issue. People are falling out of the middle class in huge numbers," said Mr. Celente, who forecast the popularity of gourmet coffee years before Starbucks became a household name and bottled water decades before Coke and Pepsi got into the business.

Mr. Celente, author of "Trend Tracking" and "Trends 2000" (Warner Books), said Ms. Aburdene's trend predictions for the new year refer mainly to a small segment of people in an affluent society, but do not apply to the masses of Americans struggling to make ends meet.

However, Ms. Aburdene has a pretty good track record of past predictions.

In "Megatrends 2000," which was published in 1990, when many economists warned of tough economic times ahead, she and co-author John Naisbitt instead predicted a booming global economy during the 1990s. The book also predicted the Pacific Rim would come to prominence in the 1990s, and it certainly did, with China and the economies of the Four Tigers (Hong Kong, South Korea, Singapore and Taiwan) expanding at explosive rates.

"When you look at the trends for 2013, the social trends have a very strong economic flavor to them," Ms. Aburdene said. "The way consumers can begin being conscious about money is to start by reflecting on their values and priorities so they spend money in ways that feel right to them."

First Published February 26, 2013 1:15 am by Tim Grant: tgrant@post-gazette.com

Two of today’s greatest megatrends, Conscious Money and Conscious Capitalism, are cut from the same financial cloth. And each of these innovative strategies flies in the face of conventional money thinking—which insists that human values should play no role whatsoever in financial decisions. That view is clearly incorrect. Values powerfully shape our choices (even if we’re unaware of it) and our behavior. Our choices and actions write the story of our lives—and our money lives. I’d go even further: positive values support us make better financial choices. Why? Because values engage the heart in the way that sound financial practices honor the head. When heart and head are in sync, our emotions are steady, our mind is settled, and our direction is clear—all of which enhance our ability to make good economic decisions.

Looking Forward – Relevance Achieved By Amy Domini, CFA, founder, Domini Social Investments ( Article from Fall 2012 - Special 20th Anniversary issue of GreenMoney Journal and  www.GreenMoney.com )

Looking forward ten, even twenty years, what will Socially Responsible Investing (SRI) have become? What will it have accomplished? What will the field look like? Today, I build a case for a good future. In a word, it will largely be marvelous.

Roughly 15 years ago, I spoke in Jackson Hole, Wyoming. It is a spectacular setting, one that makes a person proud to be in a great nation like ours, one that protects such places. Yet, as I reminded the audience that day, it had not been the public that had kept the Grand Tetons pristine. It was one man, John D. Rockefeller, who had purchased the land and given it to the nation.

This is the classic dilemma we in SRI struggle with every day. It is great that the Grand Tetons are a public treasure, but they became so on the backs of crushed labor forces, pollution and selfishness. One man made his money and then gave it away, but he set in motion the international oil industry, an industry that is robbing us of a climate, a future.

That day I challenged SRI to become relevant. Today, I can see clearly that it has. Over the next twenty years, the positions we have taken and the battles we have fought will lead to a universal understanding that what we have been saying, the way you invest matters, is absolutely correct. We will see our guiding principles integrated into the mainstream. We will be astonished at the acceptance and the impact that we have had.

How We Became Relevant - Performance Matters

Perhaps the most devastating argument we faced early on was the Modern Portfolio Theory (MPT). It argues that the previous “prudent man” idea of buying good stocks alone, created risk. Introduced in 1952 by Harry Markowitz, the original premise was simple: investors should focus on overall portfolio risk. Simply put, even if you love software, you still shouldn’t build an entire portfolio of software stocks. Astonishingly, this revelation won Mr. Markowitz a Nobel Prize in Economics and caused the entire financial services industry to argue that the individual risk characteristics of a company mattered little.

Against this backdrop, SRI seemed hopelessly old fashioned. We argue that each company, by virtue of the industry within which it operates, faces a series of risks that we label as risks to people or the planet. We then argue that taking too large a risk is not necessary and further, that it perpetuates an acceptance of these risks. Wall Street pundits stated with great authority, but with no basis, that our form of analysis flew in the face of Modern Portfolio Theory and so would fail. Our largest barrier was that, to use the vernacular, every smart person knew SRI was stupid.

The evidence proved otherwise. The MSCI KLD 400 Social Index has not only debunked the premise of MPT, but also shown that risk avoidance works. The index has outperformed -- and has done so with a lower standard deviation. Clearly, examining the risk of corporate behavior tells us something about a company that is useful to investors.

Why We Are Relevant – An Increase in Reporting

SRI practitioners have pushed for “extra-financial” data and have gotten it. At first, true comparative data on companies was extremely scarce in some areas of keen interest to the concerned investor. Any good researcher understands that the newspapers are a lousy place to start. The fact that we know that Apple sourced from Foxconn does not tell us what Hewlett Packard does. What is needed is data that is universally ascertainable, without the company answering a questionnaire (which allows them to self-define), and the data must be quantitative in nature, e.g. I don’t care as much about a statement that a company seeks diversity as I do about how many minorities have been hired.

Today, thousands of companies self-report. Whereas the one or two companies that issued Social Responsibility reports thirty years ago were real outliers, today it is so mainstream that Forbes magazine maintains a blog to follow them. Accounting giant PWC makes available the 2010 survey of CSR reporting on their website. The highlights: 81 percent of all companies have CSR information on their websites; 31 percent have these assured (or verified) by a third party. Their 2012 update contains examples of what to look for when writing (or reading) them.

Who was pushing for this disclosure? It wasn’t civil society, it wasn’t Wall Street; it wasn’t government. It was a loose confederation of concerned investors who consistently pushed for greater and more standardized “non-financial” information.

Why We Are Relevant – An Increase in Regulation to Disclose

Regulators are beginning to expand on the data corporations are required to disclose. Remember, there was no God-given definition of the right way to report financials to investors. In 1932, when reforms to protect investors began, regulators looked at some of the pre-existing methods and evaluated them. This led to audited annual reports on income statements and balance sheets. It led to quarterly unaudited reports. These had, in the past, come to be viewed as important in judging the financial soundness of a corporation.

However, the regulators did not stop with accounting issues. Given that the 1930s were a period of high unemployment, the number of company employees was considered important, and so its disclosure became mandated. There is no reason that more robust social and environmental reporting shouldn’t be in the financial reports. We already disclose a company’s hometown, without companies complaining of the inappropriateness and burden of so doing.

The Initiative for Responsible Investment at Harvard University maintains a database of Global CSR Disclosure requirements. In it we find 34 nations are taking steps. In 2009, Denmark, required companies to disclose CSR activities and use of environmental resources. In 2010, the United Kingdom required companies that use more than 6,000MWh per year to report on all emissions related to energy use. Malaysia, in 2007, required companies to publish CSR information on a "comply or explain" basis. Regulators, recognizing the societal costs of less than full cost accounting, are moving in to mandate disclosure.

Mainstreaming - With this solid base, here come the “big boys”

Conventional asset managers and the academic community have brought SRI to the mainstream. I began by saying the future for SRI is marvelous. Consider a world in which every major financial asset management firm demands that its staff study the social and environmental implications of the investments they make and bases recommendations upon it.

But this has already begun. Consider MEAG, the American portfolio management branch of Munich Re. Their team buys only publicly traded bonds which then back the insurance the firm issues. They use ESG criteria to give their research the edge and to avoid risk. When I met with their research team, I found that they use several of Domini’s Key Indicators. No, we don’t publish the indicators. It also was not a coincidence. The two firms independently discovered the same indicators to be telling because they both use the same logic in approaching the issues. Or there is UBS Investment Bank, where analysts specifically address the social, environmental or governance risks of a company they are recommending.

Finally, look at the all-important realm of academia, where MPT began. Just three recent examples are telling:

The Impact of a Corporate Culture of Sustainability on Corporate Behavior and Performance by Professors Robert Eccles and George Serafeim, Harvard Business School. “… we provide evidence that High Sustainability companies significantly outperform their counterparts over the long-term, both in terms of stock market and accounting performance. The outperformance is stronger in sectors where the customers are individual consumers, companies compete on the basis of brands and reputation, and in sectors where companies' products significantly depend upon extracting large amounts of natural resources.”

Corporate Social Responsibility and Access to Finance by Beiting Cheng, Harvard Business School, Ioannis Ioannou, London Business School, and George Serafeim, Harvard Business School. “Using a large cross-section of firms, we show that firms with better CSR performance face significantly lower capital constraints. The results are confirmed using an instrumental variables and a simultaneous equations approach. Finally, we find that the relation is primarily driven by social and environmental performance, rather than corporate governance.”

An FDA (Food and Drug Administration) for Financial Innovation: Applying the Insurable Interest Doctrine to Twenty-First Century Financial Markets, by Eric A. Posner and E. Glen Weyl, Law School, University of Chicago. “We propose that when firms invent new financial products, they be forbidden to sell them until they receive approval from a government agency designed along the lines of the FDA, which screens pharmaceutical innovations. The agency would approve financial products if they satisfy a test for social utility …”

The Next Twenty Years

This article limits its scope to only one leg of the SRI stool. It does not discuss the growth of shareholder activism, which is vibrant. Nor does it address the mainstreaming of selling products with narrow and specific social purpose, also a burgeoning field. Rather, by looking at the application of social criteria to an investable universe alone, we see that barriers have been removed, and that now both a mountain of money, and the force of government and academia, will work with us and introduce our goals into mainstream investment thinking.

We know we can make money, government is increasingly with us, and academia is swinging our way. Now, the rapid acceptance of more robust and integrated accounting has done away with the last barriers. This brings us the assets to have impact. As society sees the full cost of traditional business behavior, SRI will be embraced as the single most important lever towards building a better world than the planet has ever seen.

Article by Amy Domini, who has worked for decades to advocate that financial systems must be used to create a world of universal human dignity and ecological sustainability. She authored or co-authored several books. Her most recent, Socially Responsible Investing: Making a Difference and Making Money, was published by Dearborn Trade in 2001. She writes on the topic frequently. Her articles have appeared on the Huffington Post, the OECD Observer, GreenMoney Journal and the Journal of Investing. She is a regular columnist for Ode Magazine.

Time magazine named her to the “Time 100 list of the world’s most influential people” in 2005. President Clinton honored her at the inaugural meeting of the Clinton Global Initiative, citing her role in making socially responsible investing a global trend. The Dalai Lama, during a Town Meeting on Ethics, heard her presentation and urged his audience to give it credence.

Ms. Domini works with high net worth individuals at the Sustainability Group in Boston; she also founded Domini Social Investments, LLC ( www.domini.com ), a no-load mutual fund family for socially responsible investors. Between the two firms, she manages roughly $2 billion in assets, all invested with environmental and social objectives in mind.

She holds the Chartered Financial Analyst designation and received her B.A in International Economics from Boston University. In 2006, Ms. Domini was awarded an honorary Doctor of Business Administration from Northeastern University. In 2007, she received an honorary Doctor of Humane Letters from the Berkeley Divinity School at Yale. Ms. Domini is a past trustee of the Church Pension Board at the Episcopal Church (U.S.A.). Among others, she is also a past Board member of the Governing board of the Interfaith Center on Corporate Responsibility, the National Community Capital Association, and the Social Investment Forum.

For more information go to- www.GreenMoney.com

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Communicating the benefits of “biobased” content, the world’s newest ecological marketing term, is often tricky. Biobased represents all of green marketing’s traditional challenges — including greenwash — but has additional, unique challenges all its own. Happily, strategies and a credible third party label now exist.

Opportunities For Biobased Products and Packaging
There are many reasons for a business to use biobased content instead of traditional petroleum-based ingredients in their products, including:  it helps grow the farm economy, promotes energy independence, and helps manage carbon impacts, providing a useful hedge against potential future carbon taxes. Finally, biobased agricultural and other renewable material can mitigate petroleum’s wild price fluctuations, supply disruptions and geopolitics.

From an image and marketing perspective, a shift to biobased content can enhance reputation with stakeholders, including risk adverse investors. It can boost sales in the B2B and B2C sectors, as well as support and enhance many types of ‘green’ claims. Let’s look at these in more depth.

Selling opportunities are growing in the federal, commercial, and consumer markets. In the U.S., for instance, the federal sector will benefit from an Obama executive order signed in March 2012 to double the amount of biobased purchases.

Initial market research suggests consumer willingness to purchase biobased products and packages. Research commissioned by Genencor in 2011 suggests 40% of Americans are ‘aware of’ the term biobased and 77% will ‘definitely’ or ‘likely’ buy comparable biobased products.

In the consumer sector, biobased content can halo a brand.Coke’s new partly sugarcane-based PET ‘PlantBottle’ (with ‘up to’ 30% bioplastic), reinforces the brand positioning of Coke’s health-oriented Dasani bottled water and Odwalla juice brands. PlantBottle is now being licensed from Coke by H.J. Heinz for its iconic ketchup brand. An image of the bottle is below.

In 2010, 83% of U.S. adults identify with ‘green’ values, with various segments expressing their own reasons for likely interest in biobased. For instance, the LOHAS (Lifestyles of Health and Sustainability) segment represents the deep green consumers who take a holistic approach to all things sustainable and green; Naturalites look for organic food, natural personal care, cleaning and pet foods; Conventionals conserve natural resources; and status conscious Drifters who like to be seen carrying cloth shopping bags and driving a Toyota Prius. (Source: The Natural Marketing Institute).

Together, these consumers fuel a $290 billion U.S. market for natural products, renewable energy and more benign household products. Well-known brands that actively incorporate biobased content include Ford, Seventh Generation, Stonyfield Farm, and Procter & Gamble’s Gillette ProFusion and Pantene brands.

Marketing Challenges of Biobased

1. Unfamiliarity. Consumers don’t know the meaning of ‘biobased’. The term is not in the dictionary and is limited to scientific, engineering and B2B usages. USDA, which introduced a “USDA Certified Biobased Label” in early 2011, defines biobased as made from agricultural materials, forestry and marine based sources; so, even a well-informed consumer needs to learn that biobased products come from more than soy and corn.

2. Risk of Greenwash. Because biobased is unfamiliar but sounds ‘green’, consumers can infer such environmental benefits as “natural”, “renewable” and “biodegradable” which may or may not be the case depending upon the product. Benefits that are too easily and often incorrectly implied or overstated increase reputation risk.

Green marketing lessons of the past still apply. As Mobil learned the hard way, in the early 1990’s, their Hefty trash bags which were marketed as ‘photodegradable’ (although not called biobased) were pulled from the market after seven state attorneys general sued saying that the bags would disintegrate (i.e., break down into small fragments under the influence of heat and/or oxygen) but not degrade in landfills for which they were intended and advertised. (See the recently revised FTC Green Guides for further detail.)

3. Science. The ASTM D6866 scientific test standard upon which the USDA Certified Biobased label is based, helps define ‘biobased’ and accurately measure content.  Even with this credibility, results present communication challenges. Because the test measures biobased content as a percent of total carbon content, minerals and water are excluded. This can make comparisons difficult between products that contain minerals and water versus those with only biobased ingredients.

4. Red flags. Despite its many benefits, biobased content raises some red flags among some segments of consumers. For instance, some biobased products could compromise performance;  a case in point, the first Sun Chips ‘compostable’ bag made from corn-based PLA bioplastic had to be withdrawn because it was noisy; PLA manufacturer Natureworks quickly reformulated.

Also, some consumers take issue with biobased materials made from genetically altered crops (as is the case with most corn and soy grown in the U.S.), or are concerned about the effect agriculturally-based content may have on food prices.

Some may also question the sustainability of the harvesting practices. Finally, some consumers are concerned that biobased ingredients are imported rather than domestic, thus representing carbon impacts associated with transporting the materials from distant shores, or steal business from domestic farmers.

5. Confusion and misinformation. Still, many consumers — and even product marketers — mix up the terms ‘bio-based’ and ‘bio-degradable’. Both these properties are absolutely independent. Biobased refers to the origin of a material and biodegradable refers to the end-of-life. Biobased does not mean a material is biodegradable and vice-versa.

Success Strategies for Marketing Biobased Products and Packaging

To market biobased products and packaging with impact, relevance and credibility consider the following strategies:

1. Promote uniformity to let consumers compare biobased content by adhering to ASTM D6866. Disclose the source of the biobased content and dsitinguish between content that applies to product and package. Understand implications of grammatical constructions of ‘made with’, ‘made from’ and ‘made of’.

2. Follow FTC Green Guides (in the U.S.) and other applicable country guidelines when making environmental marketing claims of or related to biobased content. The recently updated FTC Green Guides provides specific guidance for such terms that biobased products can support such as ‘biodegradable’, ‘compostable’, and ‘renewable’.

Despite obvious consumer associations of biobased as ‘ecofriendly’, avoid what FTC describes as ‘generalized environmental benefit claims’.  Avoid images of ‘planets, babies and daisies’ that could imply the product is greener or contain more biobased content than in fact.
Make sure to portray environmental benefits from a total life cycle perspective.

3. Support claims with the USDA Certified Biobased label and other applicable biobased certifications to underscore credibility. Educate consumers on the meaning of ‘biobased’ and the underlying basis for the label.

4. Consider additional complementary sustainability-related certifications as appropriate. For instance, many products qualify forBPI’s Compostable, USDA Organic, U.S. EPA’s Design for Environment, and the independent Green Seal certification labels. The same is true for certification schemes in a number of other countries.

5. Carefully research and address consumer ‘red flag’ concerns. Reassure about performance and specify product applications.

Jacquelyn Ottman and Mark Eisen are colleagues at New York City-based J. Ottman Consulting, Inc., expert advisors to industry and government for strategic green marketing. They advised the U. S. Department of Agriculture on the launch of the USDA Certified Biobased label during 2011 and are now working with labelers on capturing the value of their participation in the program.

Jacquie Ottman is the author of The New Rules of Green Marketing: Strategies, Tools and Inspiration for Sustainable Branding (Greenleaf Publishing U.K., 2011). Mark Eisen is the former environmental marketing director at The Home Depot.

Additional Blog Posts on this Topic:

• USDA Certification Raises Bar for Biobased
• The Rise of the Biobased Economy - and Why Brand Owners Need to Develop a Strategy in 2012

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 21^st 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.

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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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The field of sustainability has evolved from a small niche of environmentalists into a transdisciplinary field that spans from local agriculture to global business. Today, people around the globe are much more aware of the problems facing mankind and the planet as a whole. The population is estimated to grow to nine billion by 2050, an increase that will only further strain our planet's natural resources. In these universities, teachers and students are committing their careers to developing the principles and practices that will allow the human race to achieve a sustainable future.

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

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.

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 radical shift is happening in the marketplace—consumers are increasingly basing purchasing decisions not just on value, but on their values.

As I describe in my book, The New Rules of Green Marketing: Strategies, Tools and Inspiration for Sustainable Branding (Berrett-Koehler; February 2011), now more than ever, consumers of all stripes are demanding that the brands they buy and the companies that make them, share their own personal social and environmental values.

Consumers are increasingly seeing businesses as linchpins with the resources and the incentives to address pressing societal needs (and this is especially so when government is seen as falling behind or inadequate in this regard.) This perception is changing the rules of the road for marketers who must respond quickly or risk being left behind by offerings viewed as more authentic and committed to sustainability.

As I detail in the book, new rules are being written by consumers for manufacturers and marketers.

1. Values guide consumer purchasing. Historically, consumers bought solely on price, performance, and convenience. But today, how products are sourced, manufactured, packaged, disposed of - and even such social aspects as how factory and farm workers are treated - all matter. This green consciousness is not confined to the younger generations. Over half of Baby Boomers consider themselves socially conscious shoppers. That’s 40 million green boomers who choose to organize, pluck resource-conserving products from the shelves, boycott products of companies that pollute, and “pro-cott” the products of companies that give back to the community.

2. Life Cycle considerations are important. Today’s consumers are doing more than just checking prices and seeking out familiar brand names. They turn over packages in search of descriptors that reflect a panoply of environmental and social issues that can impact a product throughout its entire life cycle. In the same breath, consumers can look for products that are at once, “pesticide free” “fair trade” and “sustainably harvested.” Representing a sea change in the history of promotion, marketers need to move beyond sheer product benefits in their messages and tell the whole story behind their offerings.

3. Manufacturer and retailer reputation count now more than ever. Not all greener products have ecolabels or green claims emblazoned on them. Many consumers defer to manufacturer and retailer reputations as a defacto eco-label. Consumers are asking, “Who makes this brand? Did they produce this product with high environmental and social standards?” That’s one reason why S.C. Johnson is quick to remind us that they are “A Family Company”, and why CEOs such as Tom Chappell (Tom’s of Maine), Gary Hirshberg (Stonyfield Farm) and Yvon Chouinard (Patagonia) maintain high profiles.

4. Businesses are their philosophies. It used to be that companies were what they made. International Business Machines. General Foods. General Motors. Now, businesses and brands are what they stand for. San Francisco-based Method’s innovative line of household cleaning products uses design, fragrance, efficacy, and environmental and personal safety to make cleaning a positive experience for the individual and the environment. Their “People Against Dirty” campaign” featured on the methodhome.com website and their equally empowering “Say no to (laundry) jugs” campaign supporting their new 8X concentrated laundry detergent in waste-free squirt bottle equip consumers with the wherewithal to make a difference.

Meanwhile, “Starbucks proves that a global company serving 50 million people per day can turn a proactive approach to sustainable sourcing and operations into a strategic and profitable part of its brand. And Timberland’s attention to quality, passion for the environment and society, and commitment to transparency has helped earn a strong customer following willing to pay its premium.

5. Nearly everyone is a corporate stakeholder. A reflection of the growing social consciousness that exists among today’s consumers, corporate stakeholders are no longer confined to just customers, employees, and investors; today, publics of all stripes are now corporate stakeholders including environmentalists, educators, and children - even the unborn. For instance, the astronomic rise in cause-related marketing efforts, now refined to a science helps business such as Starbucks and in turn, their enlightened customers support people living with AIDS in Africa.

6. Authenticity. It’s not enough to slap on a recycling logo or make a biodegradability claim. Brands viewed as the most genuine integrate relevant sustainability benefits into their products. That’s why HSBC and Stonyfield Farm aim to reduce the carbon impacts of their corporate operations. Their industry-leading track record for managing their carbon footprint (which we at J. Ottman Consulting advised them on) undergirded HSBC’s Effie award- winning “No Small Change” green marketing campaign which empowered consumers to reduce their own carbon footprint, in line with the bank’s own experience.

*** 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 her.

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

A 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

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.

Wal-Mart, McDonald's, Coca-Cola, Sprint, KFC, Shell, Chase, Ford, Staples, CVS and the long list goes on.  These larger than life brands immediately conjure up images and thoughts of our past experiences that have either helped or hurt these companies perception regarding sustainability.  

Image courtesy of Yum Brands

Of the ten companies above, 100% are doing something around sustainability issues related to their respective industries.  Some are improving energy, some reducing waste, some have take-back programs, some are are even developing products for the eco-conscious consumer. Whatever the companies are doing, a larger issue is hiding just under the surface… trust!  

We have all felt and witnessed corporate green-washing, but is this simply the beginning of the change process, we all have to start somewhere, right?  Corporate sustainability and CSR are poised to be the next evolution of business trends, similar to how IT changed the game. How can we know that these companies are sincere, committed and really able to transform their impact?  Should we care or shop elsewhere?

A tougher issue many of us already know, is that the base product lines of these companies don't exactly help people or the planet. There are health studies, insider videos, user testimonials, advocacy groups and other opposing groups asking us quite directly 'not' to support some of these companies.  Are these  really the opposite of the shop local movement, considering others in our community are employed there? 

So, what's a good socially responsible citizen to do?  More over, what is a newly socially responsible corporation to do, when they have the realities of their industry and various product lines to transform?  

Here is a fast recap of just some of the eco-positive moves BIG companies are undertaking: 
1. CVS is rewarding consumers for bringing reusable bags with their Green Bag Tags 
2. Sprint has a new line of eco-friendly mobile phones with less environmental impact.  
3. Ford is releasing an electric vehicle on the way called the Focus Electric.  
4. Staples is directly crediting shoppers for taking back used ink cartridges.
5. KFC has released the first ever reusable side container in the fast food industry (just don't tell the SF Soup Company) 

Hopefully this corporate sustainability trend will continue and grow until the "S" word is removed and sustainability is just part of doing good business, that serves the triple bottom line. I guess we will have to call this LOHA then?   

If you want to read more about what the world's largest companies are doing please pop over to triplepundit.com and do a search for any company.  Some news is positive, some negative and some down right controversial, but all of it interesting and forces us to question our beliefs.  

Jared Brick is completing his MBA in Sustainable Management at the Presidio Graduate School in SF.  He is working on creating the first ever reusables tracking platform, rewarding consumers everywhere in their retail experiences.  Follow the journey at traxactions.com or on twitter: traxactions
 

With carbon footprint and energy independence on everyone’s minds, many marketers are looking to capitalize upon their product’s biobased content. But not all biobased claims are alike. The scientific rigor of an ASTM standard combined with the credibility of the USDA raises the bar for the industry and makes the USDA Certified Biobased label a new source of competitive advantage within the consumer and government procurement markets for brand owners who make the effort to get their biobased products certified.

What is “Biobased”?

There is no Webster’s definition of biobased. So, marketers have tended to define it loosely or link it to perceptions of biobased as anything biological, living, natural, renewable or even biodegradable. Some do not reveal the amount of, or basis for, claiming biobased content, making comparisons difficult. This can even represent greenwash when biobased content levels are insignificant. Many questionable biobased claims have emerged, including several official-looking logos with no third party backing. With over 25,000 biobased products on the market, clearly there’s a need to clear up the confusion.

The USDA Certified Biobased label introduced one year ago this month now helps to level the market for biobased claims by providing a clear definition and an internationally recognized test standard backed up by the credibility of the USDA. Over 500 products have already been approved to use the label, and applications in the pipeline for at least 400 more. (See our previous post for more detail.)

Not just any biologically derived product or package can qualify for the label. Certified products must meet three key criteria:  they meet the definition of biobased as written into the 2008 Farm Bill, they contain minimum levels of biobased content set forth by the USDA and verified by the ASTM D6866 test standard (minimums are determined on a category by category basis and are pegged to performance and other criteria), and they represent alternatives to petroleum-based materials introduced after 1972. So, products that were on the market before 1972 made from natural fibers or forestry resources such as cotton tee shirts, office paper, or a 2 x 4 made of pine would not qualify. And neither would products whose biobased content did not meet minimum levels. (See http://biopreferred.gov for more details.) 

Translating Biobased Content Into Marketing Benefits

The label, with its sun, sea and crops motif was designed to help communicate that biobased products can be derived from the sea or forests — not just grown from plants. For transparency, it requires that the exact percentage of biobased content be listed on the label for the product and/or package. Thus, marketers are provided with a level playing field and consumers have an easy way to identify legitimate biobased products, as well as to compare and trust in their stated content levels.

Marketers can use the label to support a range of benefits including energy independence, alternatives to petroleum, carbon cycle management, enhanced farm and rural economies, and green jobs. Related and specific product environmental benefits as applicable, including renewable, biodegradable, natural, or compostable, must be supported and substantiated with scientific evidence.

Credibility is key. Proprietary formulas safeguarded. The price is right.

The USDA Biobased certification process is administered by Iowa State University, an independent third party. Only accredited independent laboratories conduct testing. Since the certification only measures carbon content, no proprietary formulas have to be disclosed. Unlike most other certifications, there is no upfront fee, licensing or royalties, so even the smallest businesses can take advantage of the program. Only a $500 lab test is required — a small price to pay for a potentially big competitive advantage.

Seventh Generation leads the pack.

Seventh Generation has already certified over 35 of their household and personal care products; their motivations: to promote transparency, to avoid greenwash, to allow consumers to make side by side comparisons, and to change the way the industry talks about “natural”. In the words of Julia Walker, Associate Scientist of Seventh Generation, “Our consumers want to know where their products originate without being “greenwashed.” The USDA Certified Biobased label enables us to disclose the percent renewable carbon in our products, telling consumers how much carbon comes from plants versus petroleum. The credibility of the method will give consumers the confidence they deserve to make conscious choices about their purchases and the products they bring into their homes.”

Jacquelyn Ottman and Mark Eisen are colleagues at New York City-based J. Ottman Consulting, Inc. They advised USDA BioPreferred on the launch of the USDA Certified Biobased label during 2011 and are now working with labelers on capturing the value of their participation in the program. Ms. Ottman is the author of The New Rules of Green Marketing: Strategies, Tools and Inspiration for Sustainable Branding (Berrett-Koehler, 2011), named a Top 40 Sustainability book by Cambridge University.

Mr. Eisen is the former environmental marketing director at The Home Depot.  They are co-authors of “The Rise of the Biobased Economy — Why Brand Owners Need a Strategy in 2012.”

Copyright © 2012 J. Ottman Consulting, Inc.

Ask businesses why they don’t tout green achievements more often, and their answer will likely be fear of greenwash.

Before you let such fears deter you from making investments in sustainable technology or promoting your green achievements, consider how difficult it is for any advertiser to gain consumer trust.

Consumers have always been skeptical of advertising. Take the food industry, for example. Food brands have long been under government scrutiny for their advertising claims. Today, companies are getting smeared for overpromising health benefits, leaving consumers confused about what’s actually true. But we don’t call that “food wash.”

As I write in my book, The New Rules of Green Marketing, skepticism is so rampant in all industries that consumers trust each other more than they trust brands, ads and media messages in general. That’s one reason social media is soaring right now.

Skepticism is par for the course. Besides, a little skepticism is good – it keeps us on our toes. The now “Wild West” green marketplace will mature. But as is the case for many established industries, the potential to screw up will always be there.

So, proceed with caution. But for the sake of the planet and your business, do proceed. The following strategies will help you avoid greenwash and gain competitive advantage in the process:

1. Walk your talk.

Thwart the most discriminating of critics by visibly making progress toward measurable goals. Being proactive in responding to the public’s concerns and expectations starts with a visible and committed CEO. That’s because CEOs can create an emotional link between the company and its customers. Empower your employees, too. Educate them on environmental issues and the specifics of their company’s processes so they can fuel authentic communications about your company’s green initiatives.

2. Be transparent.

Provide access to details about your products and corporate practices, and continuously report on your progress. In the future, disclosure of environmental impacts may be required by law. Get a jump on competitors and regulators—and score some points with consumers—by voluntarily disclosing as much as possible. During this process, don’t hide bad news. Acknowledge your weaknesses and explain how you’re proactively trying to improve.

3. Don’t mislead.

Be specific, prominent and comprehensive so as not to confuse. Consumers may claim to know what commonly used terms such as “recyclable” and “biodegradable” mean, but they can be easily mistaken—creating risk for unsuspecting sustainable marketers.

The best advice for green marketers is to adopt specific standards for disclosure of green initiatives and to follow the FTC Green Guides or other appropriate government guidelines. If possible, consult with lawyers who specifically address green claims.

4. Enlist the support of third parties.

Let stakeholders in on the steps you’re taking, and educate the public on how they can help. You can also align positively with third parties that perform independent life-cycle inventories, certify claims and award eco-seals. Certifying your product under appropriate eco-labels lends credibility to environmental messages. When choosing eco-labels, be sure to choose wisely based on how relevant the label is to your brand image. If your product has multiple eco-labels, make sure the standards for each do not conflict with one another.

5. Promote responsible consumption.

It’s one thing to design a product to be greener, but you can’t minimize impact throughout the total product life cycle unless consumers eventually use and dispose of your product more responsibly. Enlisting consumer support for responsible consumption is a sure-fire way to build credibility and reduce risk. Products can be designed to make it easier for consumers to minimize resource use. In turn, people will appreciate your efforts to make responsible consumption more manageable.

******

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.

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
The 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”
There 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
Hybrids 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 billion 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