….”[earth] has, or had, a problem which was this: Most of the people living on it were unhappy for pretty much all of the time. Many solutions were suggested for this problem, but most of these were largely concerned with the movements of small green pieces of paper… which is odd, because on the whole, it wasn’t the small green pieces of paper that were unhappy…”
— Douglas Adams

The recent financial crisis has been a credit crisis, and in response the government and the Federal Reserve have taken an active role in increasing the money supply to manipulate business cycles. The surges and contractions of the business cycles cause fluctuations in the economy, and thus in employment. In this way these fluctuations are felt in every aspect of society. We take these cycles as a given. However, in Ecological Economics Herman Daly and Joshua Farley (2008) put forward an interesting idea: the fluctuations in the economy are caused by the design of the monetary system, and not by law of necessity. By decoupling business cycles from the circulation of money these ups and downs can be avoided.

Currently the worldwide money supply is tightly linked to investment cycles. Business has its natural cycles, but the linkage of these cycles to the money supply by means of lending and borrowing causes a self-reinforcing feedback loop: when investment goes down, spending goes down, causing a decrease in the money supply, which will further decrease investments, and so on. Daly and Farley have a novel proposition: ‘there is no reason why the monetary system must be linked with the private commercial activity of lending and borrowing’.

Let’s imagine a world where the monetary system is decoupled from the activity of lending and borrowing. Money will be treated as a public good that facilitates exchanges within the economy. The government can match the supply based on for instance, consumer price indexes. A beneficial side effect is that inflation will be easier to control. The reserve requirements of banks will be 100%. Banks will make money by charging for services they provide and by borrowing and lending real money instead of by creating it.

What effects will such a decoupling have? Currently, the financial sector has a disproportionate size compared to the real sector: the size of the real sector is roughly $30 trillion per year, whereas the trade in money, with no intervening commodity is almost $2 trillion per day. The financial sector should be in service of the real economy, and a decoupling of the money supply from investments will support this.

With investments recoupled to the real economy – making economic profit based on increased production capacity by means of investments- the focus on how to make economic rents will shift.  Currently profits are made by moving paper around. With the financial sector recoupled to the economic sector it will become more important to make profits in the real economy. Introduction of a 100% reserve requirement will bring investors closer to their investments. It is only make-believe, but it is interesting to think of what implications this will have for business. With rents primarily to be made in the real sector instead of the financial, how will this affect the organization and management of business?

The current design of the economy and its institutions, banks and business, make up a system that is unstable, unpredictable and uncontrollable. After the crisis in 2008 most agreed that things needed to change. Yet most has returned to business as usual. The necessity for change has not eroded. Exploring this possibility of decoupling the monetary system from private lending may be a perfect solution to many of our economic problems.

Based on:

Daly, H., & Farley, J. (2007). Ecological Economics. Principles and Applications. Dehli: Island Press.

The mainstreaming of green brings with it the need to segment audiences. As marketing efforts behind the Toyota Prius demonstrate, targeting messages to specific consumer groups can broaden appeal.

When launching the Prius in 2001, Toyota opted to target not the green-leaning drivers one might expect, but rather tech-savvy “early adopter” consumers. Featuring a beauty shot of a shiny new car parked at a stop light and illustrated by the provocative headline, “Ever heard the sound a stoplight makes?” an introductory print ad emphasized the hybrid car’s quiet ride (and specifically the fact that the motor when switched into electric gear did not idle at stoplights like combustion engines).

Putting primary benefits first, the key visual was a big, bold beauty shot of the car itself set off against a backdrop of the Golden Gate Bridge while the body copy explained the revolutionary technology.

Environmental benefits appeared at the top right corner of the ad in mouse print in the form of compelling statistics about the car’s fuel economy and emissions. To establish its green bona fides and get a buzz going among influential greens, a supplemental campaign, “Genius,” spotlighted the car’s lighter environmental touch and activist group endorsements.

Spiked gasoline prices subsequently triggered a new campaign highlighting the car’s fuel efficiency. Today, its distinctive styling makes the Prius —and its now extended family of members—a rolling billboard of one’s environmental values and forward thinking. A successful public relations campaign, including stunts like celebrities rolling up to the Academy Awards in a Prius, bestowed the car with a “coolness” factor the reason why, anecdotally, many people buy a Prius.

******
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.
 

Many leading companies have realized that sustainability is good for the environment, their customers, and even the bottom line. Better still, by teaming up with other businesses for green initiatives, companies can achieve a greater impact. Through one recent collaboration, NativeEnergy’s Project Supporter Program, 25 brands are working together to reduce greenhouse gas emissions and help build renewable energy and carbon-reducing projects across the U.S.

These businesses—which include LOHAS companies like eBay, Green Mountain Coffee Roasters, EILEEN FISHER, Aveda, and Clif Bar—purchased Help Build™ carbon offsets to fund three projects.

The Iowa Farms Wind Project features the construction of two 1.6 MW wind turbines on family farms in northern Iowa. It’s expected to reduce about 9,000 tons of carbon emissions per year. Plus, it will provide power to about 5,200 nearby homes and an important source of income for the farm owners.

Project Supporters: Aveda, EILEEN FISHER, Clif Bar, Designtex, Touring Green, Reverb, Ben & Jerry’s

The Wewoka Biogas Project in Oklahoma powers a family-owned brick plant by using methane from a landfill. It captures and destroys the methane—a potent greenhouse gas—that would have been emitted otherwise. The discounted biogas also helps keeps the brick plant in business.

Project Supporters: eBay, Esurance, Designtex, Green Mountain Coffee Roasters, Eco-Products, Clif Bar, Brighter Planet, Reverb, Vital Choice, Touring Green, Presidio, College of the Atlantic

The Northeast Farm Separation Project in Pennsylvania cuts methane emissions on a family-owned dairy farm by separating volatile solids from manure. It also benefits farmers and helps reduce agricultural runoff.

Project Supporters: Ben & Jerry’s, The Brick Companies, Carlisle & Company, Comedy Central, RLP Capital, Credit Union Cherry Blossom Run, Pax World, and ABR, Inc.

Not only will these projects reduce greenhouse gas emissions—by a total sum of 400,000 metric tons—but they also help on a smaller scale by supporting local economies and family farms. So by participating, these corporate leaders have made a difference in the daily life of countless people.

The modern world is increasingly obsessed with consumption. We buy things we don’t need, which leads to waste. Fortunately, these companies prove that the corporate world is conscious of environmental issues and motivated to take action—on their own and collaboratively. In this case, success can even drive sustainability.

To learn more about the Project Supporter Program, visit http://www.nativeenergy.com/psp.html.

An business’ objection to sustainability could be a practical one, that there still is not strong business case. Or one might object that it is not business’ responsibility to take care of social issues, which would get us in ethical territory.

The first argument is getting weaker by the year. The second argument can be sidestepped by showing that there is a relevant business case for sustainability. To give some examples:

• Ray Anderson contended that his company Interface survived several economic crisis because of savings caused by sustainability programs
• GE’s Ecomagination products added US$12bn to the bottom line in 2006, with expectations of $20bn returns by 2010
• For every one-tenth-of-a-point increase in employee engagement at Best Buy, each Best Buy store increased profits by $100,000 a year per store
• 15% of U.S. workers are actively disengaged, Gallup estimates that this costs the economy about $328 billion
• Companies that are considered sustainability leaders are outperforming traditional stock by an average of 25 percent
• Philips made sustainability an integral part of the company in 2009, since then, its sales of green products increased to $11.85 billion, making up 39 percent of Philips’ total sales

Though these are tangible bottom line results, often sustainability is linked to stakeholder groups and intangibles that are not on the balance sheet. Nevertheless, according to thought leader Bob Willard, they have a direct influence on the bottom line, for example: `

• customers are very sensitive to the brand image of a company
• ‘green’ companies have less difficulty in attracting and retaining talent
• governments are addressing sustainability issues with policies– with a focus on sustainability businesses can actively anticipate or co-create legislation

Furthermore, sustainability is related to risk, such as

• erratic weather caused by climate change,
• the possibility of a price on carbon
• resource shortages in water, oil, food, and metals.

Although all of these issues might be difficult to quantify, and perhaps do not show up on the balance sheet, each sensible business person  must acknowledge that they compose material risks and opportunities to the bottom line. Added to that, it proofs that we are working with outdated business models, since they do not incorporate what is relevant to the organization.

Living unreasonably doesn't mean acting without good sense, yet it means living beyond the limits of acceptability or fairness.  However you interpret the meaning of the word… there are those bold dreamers out there attempting to make a real difference for people.  In a time when our future is uncertain and our present is tense, we can rely on courageous and compassionate entrepreneurs to lead us by living a life... Unreasonable!

A breakthrough, entrepreneurial accelerator called The "Unreasonable Institute" in Boulder, CO recently completed its 2012 selections of global entrepreneurs. The candidates are a diverse passionate group, that are out to create disruptive business models for breakthrough change.  This year the institute decided to crowdsource the votes to help company founders compete.  They must fundraise towards a modest goal of $10,000, serving as their entry into the 6 week summer program.  While 25 amazing startups and entrepreneurs have reached the threshold of capital needed for entry, many wonderful projects will unfortunately not make this years list.  The good news is, you can still help these bold ambassadors for change.   

One such project, I was personally inspired by is "The Green Desert," operating in a contentious and dangerous location better known for battles, prejudices and media storms.  The entrepreneur, Mohammed Salem, was a trained pharmacist in Palestine seeking to use the power of change as his medicine.  He has decided to focus his efforts on the forgotten Bedouin tribes of Palestine and East Jerusalem.  Salem represents the new eco-entrepreneur perfectly by focusing on a truly marginalized community of only 2,300 spread over 20 communities.  He is utilizing the power of positive capital investments for good to benefit people in their native environments.  

The Bedouin's need for energy is all too real.  So, by providing life-saving renewable electricity via solar, wind and biogas units it tackles this issue.  His model for The Green Desert, is to use local experts in renewable energy products to install units and train each community group.  The project even has the potential to use recycled materials to build local wind turbines and solar cookers.  Since over two-thirds of these communities are children, accessibility to cooking resources is crucial for their long term health.

The good news is that this project is already a functioning reality. It has made a great impact to over 500 homes being powered by pollution-free renewables, fueling the local communities.  Although Mohammed was unable to raise the initial $10,000 to enter the Unreasonable Institute this summer, you can still help!  You and other investors can provide helpful resources and connections inside your network to grow this worthy venture.  

In an area of our world rife with frequent battles, regular distrust and great instability it inspires me to know that people like Mohammed are out there living a life truly... Unreasonable!  

For more information about The Green Desert please contact founder Mohammed Salem at b_m_g_b@yahoo.com or click this link below:
https://marketplace.unreasonableinstitute.org/project/green-power

About the author:
Jared Brick is an MBA candidate in Sustainable Management at the Presidio Graduate School in SF, CA.  He is currently developing TraX Actions, a disruptive rewards platform to incentivize consumers and retail businesses to engage in sustainable practices.  Follow him on Twitter @jaredbrick or email him at: jared.brick@presidioedu.org for more details.  

Thanks for sharing!

The 2011 LOHAS Forum had Patagonia CEO, Casey Sheahan provide the closing keynote speaking on conscious leadership. Patagonia's success has sprung from a series of transformative moments in the work and home lives of its leadership team--from company owners, Yvon and Malinda Chouinard, to Casey Sheahan. Sheahan spoke to the challenges and opportunities he faces in running one of the most socially responsible companies in the world. Patagonia's mission and values have proven legendary in their power to effect positive change in modern apparel manufacturing. As a side benefit, 1% of Patagonia's sales are donated to small activist groups working to preserve the global environment. But for all the company's financial and reputational success, Sheahan showed that the company's growth accelerated even faster when it brought total awareness to to the full spectrum of its real-world impacts and extreme transparency to it's daily operations. Sheahan explained, "being green and being socially responsible are essential now, but it has become equally important to lead with mindfulness, compassion and soul. What's true in the macrocosm for companies is true in the microcosm for its leaders. There is no global transformation possible without personal transformation.

One of my most favorite talks from last year's LOHAS Forum was from futurist John Petersen. I had met John in Shanghai at a Chinese LOHAS Forum and was quite impressed with what he has to say. I asked him what exactly makes up a futurist and he told me his job is to look at all kinds of things - galactic movements, cultural shifts, sublte energies, economics - pretty much everything, and see if there are patterns and relationships. Past patterns are also indications of what is to be expected in the future and to be a successful futurist one cannot rule out anything that the general public may dismiss. Sounds like an interesting job description. I asked him how he uses his skills for employment and he told me that a variety of governments use his findings for a variety of things such as defense planning or disaster preparation. Singapore hired him to develop a 'Suprise Anticpation' project for thier country so they would be prepared for everything ranging from an invasion to upprising to even aliens landing. Because of his broad scope and perspective we thought it would be great to have him present at LOHAS. Here is a clip on part of his talk.

He brings into the climate change conversation a much larger perspective that cosmic rays which bombard the planet are the main reason for the shifts in climate and that we should expect more as sun spots are on the rise. He also states that the cosmic rays are causing mutations through subtle radiation. This can raise alarms or it can also explain the lift in consciousness throughout global society. Are we to become superheros or toxic avengers? Only time will tell.

Classical economics as a discipline can be traced back to the publication of Adam Smith’s The Wealth of Nations in 1776. It is no coincidence that economics as a science emerged in the Era of Enlightenment, or ‘Age of Reason’.

Coming from an era where religion and concern about the afterlife dominated the lives of people, during the Enlightenment people started to explain and understand their world from a rational standpoint. This resulted in a flourishing of scientific discoveries. As a result the worldview changed: instead of God as the primary goal and end, reason was now seen as the source of ultimate knowledge. This new worldview was causal, mechanistic and deterministic.

Classical economics resonates with these ideas: humans are seen as rational actors, and the movements within the economy can be understood, explained and predicted by causal theories and mathematical formulae. In the last twenty years these assumptions have been challenged: economic theories have not been able to predict, explain or prevent any of the economic downturns we have been through. The theories seem to be less applicable to an understanding of an increasingly complex reality.

In the last decades various perspectives have emerged that have affinity with this increased complexity: complexity theory and systems thinking. It seems as if we cannot understand reality by understanding separate elements. Meaning emerges from the interactions between different elements within a system and between systems. The relatively new branch ‘ecological economics’ is congruent with the new complexity and systems paradigm, and takes a break from the mechanical worldview: it does not accept the pre-analytic version of the world assumed by mainstream economics. Within classical economics parts of reality, like the social or ecologic reality are excluded for the sake of theory. The basic tenets of classical economics, rational thinking and the market mechanism, do not stand firm when tested in reality. The comprehensive systems worldview of ecological economics is much better equipped to do so.

For instance, the market mechanism is supposed to produce efficient prices. However, in reality we seldom find perfect markets, resulting in various kinds of market failures, such as externalities, public goods, dilemma of the commons, and monopolies. A near sacred belief in the organizing power of markets has brought the global ecology to the edge of. Ecological economics places the economy within the natural environment, thereby searching for solutions for the abovementioned market failures.

Another example: The assumed rationality behind peoples’ choices found many antagonists, such as Herbert Simon. As a sociologist and economist, he instead proposed a theory of ‘bounded rationality’. The economist Neva Goodwin contests that people make individual choices: as social beings, much of our behavior and choices are governed by our social environment. Ecological economics relates economic theory to social perspectives – coming to a theory of economics that is much more credible and in line with reality than the ‘rational choice’ perspective.

Ecological economics will, just as classical economics, not be able to predict the future. However, because it has a more realistic perspective, it will be better able to understand the current developments in the economy. Placing the economy in relation to social and ecological realities puts boundaries to the shapes the economy can take, especially its size. Ecological and social laws are taken into account within this economic paradigm. More importantly, it is better equipped for addressing the problems that the rational and market view have caused.

Recommended further reading:

Daly, H., & Farley, J. (2007). Ecological Economics. Principles and Applications. Dehli: Island Press.

Hawken, Paul. (1993) The ecology of commerce : a declaration of sustainability.

Marketing can make people eat McDonald’s hamburgers, wear shoulder pads, and buy that new laundry detergent even though the old one is fine. It basically compels masses of people to run along with the latest fad. If marketing is so successful in changing our lifestyles, why is it so difficult to use it to promote more sustainable behavior?

We still leave lights on unnecessarily, let water run, use plastic bags, drive our cars instead of using public transportation, buy clothes made of cotton that leached into soils in India and were probably manufactured using child labor, and so on. Marketing campaigns aimed at changing these behaviors have not been very successful. What causes this lack of success, and how can we harness some of marketing’s power to change behavior for good?

The first reason is, of course, money. Global advertising spending was $531 billion in 2011, and most of this hasn’t gone to campaigns advocating behavior change for sustainability. The second reason is a fundamental difference between the “products” that are being promoted, and the difference between public and private goods. Individuals are quite good at making decisions that are gratifying for themselves, but aggregated choices can compound into situations where everyone collectively is worse off. In other words, individual choices cause social dilemmas that lie at the heart of most environmental problems.

In an intriguing article, Peter Kollock analyzes various types of social dilemmas, but more importantly, he lists ways to solve them. People who aren’t completely selfish can be motivated to behave in the best interest of the community by stressing group identity. More strategic or egoistic actors are primed by group reciprocity – they want to do what others are doing. In other words, keeping up with the Joneses. Lastly, Kollock recommends structural, “change the game” solutions. People feel powerless to take actions to improve the environment because they see so little effect. Making it easy to identify people who act, and making results visible, are ways to overcome this barrier.

Isn’t this what traditional marketing campaigns do? Make you feel like you belong, or that you need just as expensive a car as your neighbor. In addition, marketing through social media channels is perfect for displaying the effects of compound behavior.

Marketing campaigns promoting sustainable behavior often focus on the problems they try to solve, such as climate change, plastic in oceans, child labor, and environmental degradation. The horrific images they show invoke a fight-or-flight response, in tandem with a guilt trip. No wonder the effect of these campaigns is limited. Perhaps they can learn from Kollock’s recommendations and traditional marketing strategies.

An oyster may not like that irritating grain of sand in its shell but it manages to transform it into a precious pearl. That's quite a feat. Just like beautiful roses growing out of smelly manure, or a delicate butterfly emerging out of a caterpillar.

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

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

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

Last week marked the first LOHAS Asia conference inspired and designed off of the LOHAS Forum. The event was held in Singapore and brought in a modest but enthusiastic crowd of 200 business people from Malaysia, Japan, Sri Lanka, India, Indonesia and China. I was fortunate to keynote and experience the excitement of the event first hand and was very impressed. I have been to many Asian conferences and they tend to be a mixed bag. Often events done by  Asian trade associations tend to be lecture style in format and seldom provide any interaction with the audience. Language barriers also add an extra challenge when discussing complex concepts. However this event was very different in design and style and extremely refreshing. In Singapore people speak English and have adopted western styles of thinking. Adam Horler, president of LOHAS Asia designed an interactive program that brought in high power speakers representing companies like Google and Six Senses Resorts as well as others who were local green specialists. LOHAS Asia and LOHAS USA are affiliate groups that work together to promote LOHAS awareness in both regions of the globe. LOHAS Asia has representatives in various countries in  Asia ranging from Japan and China to Thailand and Malaysia. Each contributes time to promote LOHAS Asia initatives in the region as well as maintain relations with LOHAS USA.

The sessions presented were a mix of green values, branding strategy, trends, design and LOHAS entrepreneurial initiatives that were informative and inspiring. Bobby Paterson, a former Scottish professional soccer player, introduced his Happiest app that helps measure a person’s happiness and provide rewards. Matthias Gelber, winner of the Greenest Person on the planet award by 3rdwhale in 2009 and Malysian resident, spoke passionately on the need to be aware of our actions and make changes in our lives for the planet. Another spoke on successful branding strategies that LOHAS companies could learn from. The most fascinating for me was Amena Lee Schlaikjer's talk on how LOHAS is entering the Chinese market and how it is positioned to provide access to stress-free living. With pollution, food scares, straining work force and cultural pressures pressing upon Chinese it makes sense that LOHAS can offer a path to a simpler and cleaner way of life.
 

LOHAS Asia is designed around the LOHAS HUB Directory. The directory is free for companies to sign up however companies must take a pledge to integrate LOHAS principles or provide an initiative which they are to report on one year after registering. Once in the HUB companies can interact with each other and network. Consumers can search companies by country to find local companies that are pre-vetted. Not all companies who apply are accepted. This is all nice but the key element is that the HUB is a resource for Asian based investors interested in funding LOHAS startups. There is a tremendous amount of VC and angel capital that is ready to be injected with the caveat being that they must be a LOHAS company that is listed in the HUB. The LOHAS Asia team will present companies to investors. Those start up companies receiving funding will also go through a start up boot camp that will  be provided by Proctor & Gamble. Google will also provide a suite of tools and trainings for small business. Not a bad upside for signing up for free on the LOHAS HUB Directory eh?
 

LOHAS is still very new to many in the Asian region despite its massive proliferation. Many may have heard of it or seen a store promoting a LOHAS sale but rarely do they know what it really means. This was the purpose of the conference. After the conference not only did people understand it but wanted more or wanted to partake in expanding awareness. There is a lot of fertile ground for LOHAS in S.E. Asia and I look forward to future events. The next events are in Shanghai and Singapore. Stay tuned for details.
 

There is a new phenomenon occurring in our modern culture, known officially as the quantified-self movement.  Whether it be daily calories eaten, steps walked or even hours slept… we are becoming scientists within the "self" universe.
There are new findings about what shifts behavior change and so much of it focuses on the old adage of, what you measure matters.  Plus there are new modern tools to help us track and measure the data from our daily experiences. It allows us to plan, reflect and thus... change.  

 

Health and Fitness
We are beginning to witness the futuristic adoption of wearing body monitors to help us collect information. Products like the FitBit and Nike's new Fuel Band, can even tell you how much you are sleeping at night (due to a lack of movement activity).  The FitBit not only has wireless sync capability, but is now linked to Foursquare the largest mobile "check-in" site in the country.  Consider this, now you can track how many steps you took to walk to your local farmers market, and then share what you bought there with millions of people.  We are becoming data aggregators and sponsoring companies love us for it.  Partner companies can see our patterns to find new ways to incentivize us.  These new devices allow us insight into our own habit patterns and hold the promise of personal evolution.   

Lifestyle Goals
Have you played with your kids today, done yoga, walked your dog or simply felt compassionate today?  Well, Daily Feats, a new startup company based out of NYC (of all places), can help you track it all.  Their website and related mobile app allows you to set specific goals to meet a variety of personal lifestyle activities. Based on your personal preferences you can select hundreds of activities called "Feats" to track your lifestyle goals all in one place.  This model then provides you with a life score from 0-5, with 5 being a perfect superhuman-enlightened being (sadly I am only at 1.6, but just getting starting). With the ability to sign-in to this service via Facebook, Foursquare, email and now SMS text you can even link your "Feats" with friends online.  The SMS option is most powerful since over 97% of people read their texts (only 4% read emails now)… it is a proven new communication tool.

Conscious Living
This new trend gets into us … literally, it tracks what we eating daily and how it relates to our overall health. Start-up's like Dan's Plan use the motto, "Helping you achieve optimal health in a modern world"… with the emphasis on optimal and modern.  This platform allows you to collect data from a variety of new devices for capturing your ideal eating, restorative sleeping and enduring movement goals to reach an ideal.  Since, "our modern world fosters a lifestyle that leads to poor health," we have to take responsibility for it in our daily activities.   Real Mealz (currently in Beta) is another SF startup company that has realized if you simply cook more, you could be healthier. They have collected a spectrum of great organic recipes that help you include existing kitchen items and even take photos of your meals for nutritional analysis later on. All of this promises a life of greater awareness for the changes we seek within ourselves, our families and our greater impact on the world around us.  

Now is the time, as there are few valid excuses not to take action around your personal goals.  With the assistance of mobile apps, tracking websites, wi-fi devices and personalized support structures all around us I ask… so what will you measure?  

About the author: Jared Brick is an MBA business student from the Presidio Graduate School in SF.  He is currently developing a business model to track and incentivize reusables in the retail environment.  To learn more please email him at jared (at) traxactions.com or follow him on twitter: jaredbrick Thanks for sharing this article.

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.

What is the link between personal health and environmental sustainability? How do we link up our personal care with care for the larger world? Could the impetus for personal care have an effect on our perspective on the wider world? Within LOHAS, could we see this personal care, not as selfishness, but as the first step in reaching something larger than ourselves? Is personal care the first step in environmental consciousness? 

Only when we approach our selves with care and compassion, can we direct that care and compassion to the larger world. This is the essence of the LOHAS philosophy. How do we go about personal care with the right attitude, that it is not purely selfish? By perceiving our personal care as something intrinsically connected the wider world, our personal care is no longer a selfish concern, but instead the beginnings of environmental consciousness. When caring for ourselves personally, we see how this person is not something separate, but nature itself and so the compassion we direct to ourselves is directed to nature itself.

When we meditate, when we do yoga, which we give or receive massage, we are engaging with our natural surroundings, getting out of our heads and into bodies, which channel our attention to the natural world. When we follow the breath, the obsessions of the mind and naturally disconnected culture begin to fall away. Through the breath, we see how the mind is connected to the body, how our self is connected to a larger society and how the fate of our culture is closely tied the fate of nature.

As we observe the the care and compassion we expend on ourselves, we can see that same care and compassion leaving the permeable boundaries of the self and entering the larger world. Since everything is connected, the decision we make about whether to enhance our personal health has implications for the wider world.

Tom’s of Maine can make the toothpaste more natural, but they can’t force consumers to turn the water off when they brush. Coke can make the bottles recyclable, but only consumers can drop them in the blue bin. Sun Chips can make the bags compostable, but only consumers can see that they get to a composting pile instead of a trash can.
 
Communications can fill this gap. With life cycle risks escalating over time, green marketers must now educate their consumers on how to use and dispose of their products responsibly. And empirical evidence suggests consumers are willing to listen to these messages. Use the following tested strategies to engage your consumers.
 
Provide feedback.
The now familiar dashboard feature on Toyota’s Prius provides real-time information on the fuel efficiency being attained by the electric motor and combustion engine. Prius owners report trying to best their previous mileage achievements on successive tries, and they even try to beat each other.

Use peer pressure.
The software company OPower provides electric utilities with software that helps provide comparative information on electricity usage. The program measures efficiency by sending customers “smiley faces” when their performance exceeds that of neighbors. This simple software was responsible for generating sustained reductions of energy usage by 2% in a 2008 test by the Sacramento Municipal Utility District.

Make it fun.
Incentives and rewards can help too. RecycleBank, for one, does a fine job of educating consumers through the use of games. SmartPhones are also making new information accessible to consumers. Phone applications that check a product’s eco-credentials are becoming especially popular, turning shopping into a new educational experience
 
Make the intangible tangible.
Motivate consumers to use and dispose of products more responsibly by using compelling visuals to better communicate their impacts. The chart from Procter & Gamble (I added the “You are Here”) was intended for businesspeople, so it might be a tad technical, but I think you’ll get my point. It shows the energy impacts throughout various life cycle stages for several product categories, including laundry detergent, shampoos and diapers, among others.


 
If you follow the line that stands out like the Empire State Building, you’ll see that the key energy-related impact of laundry detergent is not related to the production process or supply chain transportation; the main impact is the energy it takes to heat the water. I’m sure you’ll agree that a visual like this combined with additional information-let’s say costs and climate change impacts—could be instrumental in getting consumers to turn the dial down to cold.
 
******
 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.

from The New Rules of Green Marketing: Strategies, Tools and Inspiration for Sustainable Branding (Berrett-Koehler 2011) by Jacquelyn A. Ottman.
 
This post was originally published July 14, 2011 on TriplePundit.com.

Since 2009, sales of products containing Fair Trade Certified ingredients have resulted in more than $3.4 million in premiums to support the development of farming communities around the globe.  These products, like ice cream, bottled beverages, snack bars and baked goods, contain a combination of Fair Trade Certified ingredients and ingredients for which Fair Trade standards do not exist (like milk, eggs and flour).

Under the revised Ingredients Policy, which applies to all food and personal care products, only products that contain 100% Fair Trade Certified ingredients may bear the full Fair Trade Certifiedlabel. Products containing at least 20% Fair Trade Certified ingredients will now bear a new Fair Trade Certified Ingredients label.

To use the ingredients label:

a) 100% of the ingredient commonly associated with a product must be Fair Trade Certified.  For example, a chocolate bar must contain 100% Fair Trade Certified cocoa.

b) For any individual Fair Trade Certified ingredient used in the product, 100% of that ingredient must be certified.  For example, if a product contains Fair Trade Certified vanilla extract, all of the vanilla extract in the product must be Fair Trade Certified.

c) The product must contain at least 20% Fair Trade Certified content in total, and all ingredients that can be Fair Trade Certified must be Fair Trade Certified, if the ingredient is commercially available.

In the case of single-ingredient products, like tea and coffee, Fair Trade USA will continue to require that 100% of the product be Fair Trade Certified.

“The revised Ingredients Policy reflects our organization’s commitment to include more farmers and workers in the Fair Trade model, and our desire to raise the bar for certification transparency. It’s designed to offer more Fair Trade farmers the opportunity to sell their products into the global market, enable more companies to make a meaningful impact through responsible sourcing, and accurately communicate to shoppers the social and environmental benefits of purchasing Fair Trade Certified products.” – Paul Rice, President & CEO of Fair Trade USA

The draft of the policy is open for public comment for the next 60 days. To view the complete outline of the policy, visit http://www.fairtradeusa.org/certification/producers/ingredients.

To comment on the new Ingredients Policy, please send an email toMultipleIngredientPolicy@fairtradeusa.org

Recently I was asked to present a compelling "business case for sustainability."  It is a common question innovative business students are attempting to answer inside the Presidio MBA program for Sustainable Management.  At first, I thought I would bring up all the great evidence and case studies that already exist for proving why businesses need to move in this direction… then something occurred.   

I started to think about all the grand evidence that exists in the world and how little it actually impacts our decisions.  Consider the overwhelming "evidence" out there on the following topics.  Cigarette smoking, global warming, alcohol abuse, fast food health impacts, obesity, exercise and fossil fuels for energy … the list goes on and on.  There are mountains of data that "prove" the case for or against these societal issues and thus "prove" the case for a better way. Yet in the end, some people simply refuse to believe strong data, clear evidence or compelling arguments and continue their old ways.   

But this post is not about them, it is really celebrating you, the online LOHAS community.  It is about how you should be applauded and hailed as the "embracers" of sustainability and health.  The way you live, shop and support new markets is your achievement, hopefully to be imitated, as it is the highest form of flattery.  

A recent study by MITSloan shows that "embracers" are leading their industry and not waiting for  a core of sustainability to be included sometime in the future … they know the future is now.   This thinking is paying off and the "laggards" or cautious adopters are thus falling even further behind.

There are many others out there that are not working as hard as we are, to find the best sustainable solutions for our modern living and in business.  They can be considered "laggards", the people we feel we have to "prove" that sustainability works and that they should adopt it.   Now I am certainly a believer of sharing best practices, but proving that health and sustainability are important … really?  Mother nature designed us to think and find the best solutions for our own survival, we are in the process of our own evolution now and I am not sure proving our case is the best use of our time and energy.  

Clearly, you are the innovators and early adopters, the people on the front lines of our very evolution, pushing for change, not waiting for it arrive or be handed to us.  You are seeking out solutions every day to the very ills of our way of life and not willing to settle for conventional thinking, standard products or disconnected living.  Each time you spend money, you are considering larger impacts, each time you vote you are planning our collective future, each time you invest you are creating a new markets.  

The best part is that the world is finally listening, societies are paying attention, communities are shifting.  Your innovative thinking and bold actions are getting noticed all the world over.  You are bucking the trends, you are going against the grain and you are the exception to the rules.  Forget having to "prove the case", continue to live your lives your way and let that be your shining evidence to the world.  

The MITSloan report identifies seven best practices that "embracers" share:
    1.    Move early
    2.    Balance long-term vision with short-term impact
    3.    Drive sustainability philosophy from both the top-down and the bottom-up
    4.    Don’t make sustainability a silo
    5.    Measure in whatever way you can
    6.    Remember the intangible benefits
    7.    Communicate your expectations

I congratulate you for listening to your true gut instincts, your breakthrough mind and most importantly your compassionate heart. I look forward to shaking your hand at the June 2012 LOHAS conference in Boulder.   

Jared Brick is a current student at the Presidio Graduate School in San Francisco. 

You can follow him here:
http://twitter.com/jaredbrick