By Amena Lee Schlaikjer

I spent my whole life wandering the globe as the daughter of an American diplomat, fascinated by different cultures and their different takes on similar things.  How the ‘French Fry’ transforms its shape, taste and cultural definition differently in America, France, The Netherlands, China and Japan.  How gifting for favours can be outright bribery in some places or a business necessity in others.  How health is either something you’re born with, are lucky to have, need to strive for, or is the simple balancing act of a set of routine steps.  It’s no wonder I found myself in the profession of insight marketing and innovation, digging for clues as to why people perceive and embrace things the way they do, and how companies can inspire people to make healthy, intelligent choices (well, at least the ones I try to work with).

Working with the Asia Pacific LOHAS group from one of the most dynamic (yet unhealthy and unsustainable) cities in China: Shanghai, I’ve had the pleasure to witness the unfolding of LOHAS in its early stages.  To grasp China’s take on LOHAS, it’s important to understand the cultural perspective of people’s interaction with their environment.   It is this personal vs. planetary relationship that dictates the level of concern, involvement and impact people will have towards change.  In theory, the Chinese attitude towards sustainability is a very ‘holistic’, symbiotic relationship where “me and my environment are One” based on traditional Daoist/Buddhist influences.  However, in practice, it is actually more ‘distanced’.  Consumers see the problems of the environment but are removed from them because they feel powerless and disengaged to make a difference, a responsibility that is believed to belong to the government.  However, they feel how the environment and strain of over-development has had its toll on health and hence, know they are a part of the equation.  One has to remember that , China’s population of young, influencing “me-focused” One-Child Policy working citizens (18-35 years of age) are coming into more wealth than China’s middle and upper classes has ever seen.  As the editor of LOHAS magazine (a China-based publication), Jane Yu, commented, “People never really consumed a lot here so it would be unnatural to get them to stop. The overall contribution to the environmental impact would be the same so long as that consumption behaviour is mindful.  Chinese values resonate much more with “loving yourself” first before you can think about your family and the environment.”     
     
Therefore, in comparing the attitudes towards Sustainability with other cultures, they are not Dominant (like America taking the lead in global initiatives), not Socalistic (like Europe where everyone has a say in how things are legislated), not Reverent  (like New Zealand/Australia where nature is in everyone’s backyard) nor Doomed (like in places at the edges of climate change seeing its drastic effects).  In China, that “Distanced” perspective, with the right education and mindfulness may revert back to the more traditional view of being Harmonized with one’s environment, and therefore, feel the need to change behaviour to respect that harmony. 

The guildelines, as crafted by LOHAS magazine, the leading authority on the definition of LOHAS in China are:
1) Love Yourself
2) Care for others
3) Concern for the planet

Very much in that order.  At the core of the awareness cycle, it’s all about “Am I making the right choices for me, my home and my family?” And these tend to be household decisions that are health-focused, something everyone can have control over and an insight that any company positioning themselves with a green message in China should consider..  “There may be milk scandals and bleached mushrooms in the market, but I, as a smart LOHAS consumer, will tend to consume something I know to be safe, rather than petition or lobby against the forces that be.”  This is a cynical marketplace, in constant fear of the safety and quality of products on shelves.  There’s disbelief in that something could be 100% organic:  more likely a false label in order to charge a premium.  They’d almost rather buy something that is 51% organic but honest with product labeling.  Consumers feel like they can only be cautious; and take small actions, like not using plastic bags, taking more public transportation, buying more plants for the household and conserving energy usage: most of which are already deeply embedded in the behaviour of most low-to-middle class Chinese as a way to save money and live healthy.  In conveying this mentality, companies have embraced “LOHAS” as a kind of stamp of approval.  Not a certifying authority on anything green, but a consumer-created “brand” or “badge” that says, “This product is going to make your life more stress-free.”  I’ve seen it used on the likes of everything from Dairy Queen brochures to healthy fast food eateries, from fashion retail outlets to spa treatments.  It’s an attitude.

That attitude doesn’t really get involved beyond a consumer choice into community activities that proactively try to promote environmental awareness and action.  The past 5 years has seen an increase in community volunteer organizations (HandsOn China is the largest of these, promoted mostly through CSR programs) though we’re at very early stages of consumer adoption into realms of social responsibility: like embracing Fair Trade, CSR, civil justice, volunteering and philanthropy.  It’s so early-stages that even awareness towards recycling or green packaging  are a “nice-to-have”, so long as the ingredients I’m buying are safe, natural and healthy.

The reality of it is just that some issues are out of people’s control, and as a Shanghai resident, I also feel this deeply. The air I breathe is horrendous, government programs to promote green feel propagandist, China’s necessary fast-growing economy to raise everyone towards a better standard of living (from a GDP-growth standpoint) is happening and it’s not slowing down.  Therefore, it’s impossible to be completely purest with an ideology towards sustainable practices (our economy is growing in the double-digits and two coal factories are built each week) or good health (I’ve tried raw food diets and vegetarianism in China…it’s really, really hard).  In essence, it’s about balance, social stability and just creating a happy, healthy home with the best educated choices I can make.  And in that sense, not too far off from the LOHAS consumer behaviour elsewhere in the world, just in earlier stages of awareness that is still “me-focused” with an infrastructure that is still learning about how invest in natural capitalism.  There are more sacrifices here around what’s available and what you’re able to have control over.
The practice of “balancing” one’s life and creating a happy home will soon evolve into a re-discovery of that harmonious relationship of the body with its surrounding environment, hopefully with a proactive ability to change things.  That moment will be a positive phase in tackling this as a global community.  For now, LOHAS in China is perceived as a trend.  A brand or lifestyle that promotes stress-free living and smart, trendy consumer choices (and let’s not forget, you have to consume to be LOHAS here).  A lifestyle that is modern, but about going back to traditional roots of being closer to Nature.  The point at which Chinese consumers understand that much of this personal stress experienced through the pressures of modernization and over-development are intrinsically connected to environmental stresses, is the day that everything clicks.

By Amena Lee Schlaikjer
Independent Wellness Innovator  www.the-wellness-works.com
Shanghai Manager of Asia-Pacific LOHAS   www.lohas-asia.org

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

I am in a unique position to view various market verticals and get some ideas on what are trends for various elements of LOHAS. Here are a few I think to be on the lookout for in the health and wellness space.

Happiness and Health

More of us will see happiness as key to achieving good health and vice versa. We will increasingly understand that happiness and health go hand in hand. There have been several studies indicating the connection between these two vital factors.

Mindful Living

Just think about the last time you ate your meal in peace. Mindful eating involves savouring every bite without distraction from electronics, whether phones or TVs. But this type of mindful living will also follow us through our everyday errands — mindful shopping, for example, means not overspending and buying only what’s needed to feel fulfilled at that moment.  Mindful Stress Reduction research has shown to be highly effective in teaching responsible in the health management, vitality and healing.

Nature As An Antidote

More people are looking at nature as an escape from noise, pollution and traffic and overall brain fatigue from the numerous stimuli we face daily that lead to stress. A recent study from Scotland claims that you can ease brain fatigue simply by strolling through a leafy park. The premise is that “grounding” the body to the earth’s surface stabilizes natural electrical rhythms and reduces disease-causing inflammation. Footwear companies such as Juil are using this concept for thier products and providing copper pressure points on your feet and ground you to the electromagnetic field of the earth. Its all about remembering to connect with the relaxing and energizing qualities Mother Nature has always provided.

Detoxing the home

For most, a new year means cleansing our bodies and getting rid of junk from our diets and kitchen cupboards. But detoxing in 2013 will also be about detoxing our homes and the environment around us. Consumers and brands are both turning to chemical-free and toxin-free products to use everyday. This means opportunities for green cleaning companies such as Method, Ecover and Seventh Generation.

Fitness Self-monitoring

In the past data was commonly equated with tech nerds. Today data is king and will go mainstream thanks to an increasing number of smartphone apps that help you easily store data on your own behavior via collection of wearable devices, from Nike Fuel to LarkLife, that do all the work for you.

Your Favorite Class Will Go Mobile

Mobile, portable classes are the wave of the future — thanks to the rise of beloved celebrity teachers who can’t be everywhere at once. Set up your iPad for a yoga class with the simulated feeling of individualized attention. Open up your laptop and decide what kind of class you’ll do that day — on your own time.  Providers include MyYogaOnline, GaiamTV and YogaVibes, Hotels, for example, are designing guest rooms to accommodate people doing yoga or cardio, or providing workout videos, while some airports, like San Francisco International Airport, even offer yoga rooms.

Healthy Hotels

In 2013 and beyond, what constitutes a true “vacation” will be redefined and “hospitality” will be rewritten. We’ll see an explosion of new “wellness everywhere” hotel chains and environments becoming more mainstream. In the past, gyms and spas have been positioned as mere amenities, but now these walls are being conceptually (and literally) broken down. Established hotel chains are re-branding around wellness and it’s not just about fitness. Customized food and beverage offerings (gluten-free and vegan menus) are becoming standard fare, and hotels are jumping into the juice-themed vacation frenzy.

Adult Playgrounds

Cities worldwide are trying to tackle obesity and overall inactivity by designing playgrounds for adults. These workout spaces are meant to eliminate cost and accessibility limitations and help adults get more active. In 2012, New York City opened its first adult playground and plans to create two dozen more.

Yoga Continues to Grow

Yoga booming – The latest “Yoga in America” study, released by Yoga Journal shows that 20.4 million Americans practice yoga, compared to 15.8 million from the previous 2008 study*, an increase of 29 percent. In addition, practitioners spend $10.3 billion a year on yoga classes and products, including equipment, clothing, vacations, and media. The previous estimate from the 2008 study was $5.7 billion.

Standing Desks

If research has shown us anything in 2012, it’s that sitting at our desks with poor posture is slowly killing us. As we head into the new year, experts at JWT predict more upright desk features for offices across the country. Companies like Ergotron have already created standing workstations with cart-like features.

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

Interested in reading a great case study on a triple bottom-line company? Read my company's blog on Burgerville, where we profile a company that is doing it right.  Their focus on people,  profit and planet has led to the creation of a full-time Chief Cultural Officer.  

Here's the article we posted recently on my website.

I've never been a fan of the fast food restaurant, but after abandoning being a vegetarian in my mid-20's, I just couldn't resist my childhood favorite: an old fashioned hamburger. Today, I find myself regularly buying those gourmet hamburgers from Whole Foods and throwing them on the BBQ for a fast dinner.  But instead of putting them on a bun, I tend to serve them on a bed of wild greens, mache or arugula lettuce. Yum.

On my company's website blog this week, we covered a profile about another restaurant that you've probably never hear of called Burgerville.  It certainly doesn’t have the name recognition or ubiquity of McDonald’s, Burger King, or any other well known fast food joint. But it has something that all the recognition and ubiquity in the world can’t give it: sustainability.

Burgerville got its start  in 1961 in Vancouver, Washington and has since spread to  39 restaurants in the Washington and Oregon area. Their objective isn’t just to expand –  they want to make the world a better place by selling burgers.

They use a number of green practices to do this:

1)      Source food locally. Nearly all of their ingredients are grown nearby and have that local flavor—like Walla Walla onions and Yukon Gold potatoes.

2)      Use seasonal offerings. Depending on the time of year,Burgerville mixes up their menu with seasonal offerings like strawberry milkshakes (from local strawberries) or hazelnut ice cream (from locally grown hazelnuts).

3)      Use alternative energy. In what can only be called a coup against conventional energy thinking, all Burgerville restaurants and their headquarters are completely powered by wind energy. They even let bicyclists use their drive-thru windows.

4)      Support sustainable farming. In 2004 Burgerville made the choice to only use range-fed beef raised without antibiotics.

5)      Support sustainable waste practices. In 2007 Burgerville made another green choice by implementing a composting program at all of their restaurants.

6)      Embrace green menu options. Burgerville makes great hamburgers, but they also have a lot of food offerings that focus on more earth-friendly options. Chicken burgers, fresh fish offerings,  veggie burgers, salads, and even sweet potato and asparagus are all menu items that offer alternative to the traditional beef-heavy fast food menus.

As a result of their conscientious practices, Burgerville continues to grow and expand, and is an asset to every community that has a restaurant.

Henry Ford said, “A business that makes nothing but money is a poor business.” Burgerville isn’t just making money: they are making jobs, strengthening local economies, creating new business models, and keeping the future intact. With a simple company policy of “fresh, local, sustainable” they are making the world a better place, one burger at a time.

For more info on the business case for having a sustainable business read this page of their website: http://www.burgerville.com/sustainable-business/the-business-case/

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

“We educate team members and consumers to sort their trash and not just ‘throw it away,’ because there is no ‘away.’”   - Tristam Coffin, Whole Foods Market

Abundance and waste. They are two sides of the same coin in America, and that goes for our food system, too.

According to Jonathan Bloom, author of Wasted Food, nearly 40% of all food produced in the United States gets thrown away before it is consumed, and the vast majority of that (97%) ends up in a landfill, where organic food waste is one of the main culprits in methane gas production – a major contributor to global warming.

Each year, 160 billion pounds of food – the equivalent of $250 billion per year – is wasted, enough to fill the equivalent of two Rose Bowls every day, said Bloom, who spoke at the Sustainable Foods Summit held recently in San Francisco, and produced by leading market research firm Organic Monitor.

With the planet’s population set to increase from 7 billion to more than 9 billion by 2050, it isn’t just a matter of increasing food production, but decreasing food waste as well as redistributing food to food banks. A number of grocers are taking steps to address this issue, including SuperValu, the third largest retailer in the U.S., which has achieved “zero waste,” or 90% diversion from the landfill, in 150 of its stores, said Michael Hewett, Director of Environmental and Sustainability Programs for Publix and a member of the Food Marketing Institute’s (FMI) Sustainability Executive Committee.

“As retailers pull cardboard, plastic, cans, etc., out of the waste stream, they are left with food,” said Hewett. “We must find ways to capture food before it goes bad and get it to food banks. From Ahold USA to Winn Dixie, grocers need to share best practices in a ‘pre-competitive’ way. That’s radical collaboration,” he said.

“Globally, one third of all food produced is wasted in processing, handling, storage, sale, preparation and cooking and serving of food,” said Amy Kirtland, Executive Director of Unified Grocers. Kirtland is working with grocers through the Food Waste Reduction Alliance, comprising members of FMI, Grocery Manufacturers Association and the National Restaurant Association, to divert and reduce food waste. Kroger is diverting organic waste to energy production, she said, while Hannaford educates children about food waste through a pilot composting project.

At Whole Foods Market, “We’re looking not for a ‘silver bullet,’ said Tristam Coffin, Whole Foods’ Energy and Maintenance Project Manager, so much as ‘silver buckshot,’ in that stores deal with food waste in region-appropriate ways.” For example, Whole Foods stores in St. Paul, MN, are working with a local farmer to divert food waste for hog feed; other stores work with farmers to supply food waste for compost. In Chicago, stores donate local produce waste to the Lincoln Park Zoo. “We educate team members and consumers to sort their trash and not just ‘throw it away,’ because there is no ‘away,’” he said.

With regard to donating food to food banks, the Bill Emerson Good Samaritan Food Donation Act, signed by President Clinton in 1996, helps reduce liability for grocers seeking to distribute food to food banks and the poor, said Claire Cummings, West Coast Fellow at Bon Appetit Management Co., a leading food service company working with universities and other institutions. “Our goal is to find ways to distribute 1 billion pounds of produce per year by 2015, and that includes making sure that food banks are prepared to take on additional capacity for donated foods ,” added Devi Raja, Director of Food Produce for Feeding America.

____________

Steven Hoffman, Co-founder of LOHAS Journal and the LOHAS Forum annual market trends conference, and former director of The Organic Center, has been involved in sustainable food and agriculture and the LOHAS market for more than 30 years. He 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 former Editorial Director of New Hope Natural Media’s natural and organic products trade publications and former Program Director of Natural Products Expo East and West, the world’s largest natural and organic products trade exhibitions. A former Peace Corps volunteer and agricultural extension agent, Hoffman holds a M.S. in Agriculture from Penn State University.

Author: Cissy Bullock, Awesome LOHASIAN and CEO LOHAS Asia

We’ve got some seriously good news for LOHAS companies, because if you’re working for a sustainable future of our planet as well as your bottom line, there is a new generation of investors looking to help you expand across the globe, improving the lives of even more LOHAS consumers. LOHAS companies are already seeing rapid growth. Success stories like Patagonia and the delicious Innocent Smoothies prove that mission-based companies with LOHAS values embedded at their core, make very attractive investments.

The rise of conscious capitalism,  whereby consumers, producers and investors assess economic decisions based on their impact on the triple bottom line of People, Planet and Profit, rather than just economic growth, is frequently cited as one of the megatrends for this decade. As part of this, more and more individuals are recognizing the benefits of Lifestyles of Health and Sustainability (LOHAS), and are seeking out more eco friendly, socially aware and sustainable products/brands to support a more balanced way of life. Take a look out of your window any morning before work, you’ll see more and more people walking, running and cycling; if they’re putting that much effort into their health, you can be sure that it’s not the only thing they’re consciously doing to improve their lives.

According to research by the Natural Marketing Institute (NMI), 56 million consumers in the US, a massive 18% of the population, are LOHAS consumers and the market is estimated to be worth USD290 billion. Across Asia – the worlds fastest growing consumer market – the LOHAS movement is spreading rapidly amongst cultures who have lived with health and sustainability values, and the importance of balance, in their hearts for centuries. LOHAS Asia was set up in response to this movement, helping good companies grow alongside the Asian LOHAS community.

16% of Asian consumers, approx. 300 million people, are LOHASIANS. Ask a resident of one of Tokyo’s bustling city streets what LOHAS stands for and 70% of them will be able to answer correctly. No real surprises, then, why Coca Cola chose Japan to test launch their ‘I LOHAS’ mineral water in their cornstarch, eco-crush PlantBottle.

Across the rest of Asia, awareness of LOHAS is growing, and in China alone, the number of LOHAS consumers is estimated to be 110 million. As environmental concerns escalate, such as those associated with the recent choking smog in Beijing that led one US embassy employee to famously tweet the message “Crazy Bad” in one of their daily air quality posts, health and sustainability will only become more important factors influencing individuals’ consumption choices.

Sustainable product innovation is being driven by the enormous market opportunity that exists with Asian consumers and increasing numbers of LOHAS entrepreneurs are responding with new and exciting market disrupting businesses. LOHAS Asia has members with a widely diverse range of products like Shokay, a yak down fashion brand which supports the herding communities which supply the fiber, to Saught who makes jewelry forged from old Cambodian landmines while supporting mine clearance programs, and eco-friendly household cleaning products made exclusively from soapnuts, called Soapnut Republic. Last year LOHAS Asia provided funding for Arterro, a sustainable art company.

The investment community is studying these exciting developments with interest, looking for conscious capitalists who are aligning purpose with profit. These investors recognize that good businesses make good investments, music to the ears of LOHAS entrepreneurs looking to scale their business, but concerned that the cost of investment is a lessening of the values upon which their company was founded.

With LOHAS companies looking for investment and LOHAS investors desperate to find the best opportunities within the market place, we put together the LOHAS Accelerator program, a business incubator that brings LOHAS companies together with an extraordinary team of cross-industry experts from Accenture, Google, Ogilvy & Mather, Silicon Valley as well as some of our own successful LOHAS entrepreneurs.

The LOHAS Accelerator team provides LOHAS companies with all the training, advice and support their business needs to develop a business plan into an investment winning pitch ready to present to venture capital funds.

LOHAS companies that are based in Asia, or have an Asian element of their business (supply, production, plans for expansion) can apply to pitch their business to our panel of LOHAS investors. Provided they can make a captivating business case, they could receive investment of anywhere between USD50,000 to USD10 million.

I spoke to one of the LOHAS Accelerators consultants, Chen Ley Ong, a triple-bottom line Silicon Valley angel and Cradle Fund mentor, "It's exciting to be a part of LOHAS Accelerator program because it brings forth the new wave of entrepreneurship – enterprises with a mission that benefit society and environment, i.e. social enterprises. The traditional business model is no longer a sustainable option. The LOHAS Accelerator program prepares entrepreneurs to shape and grow their enterprises in a healthy and sustainable manner."

Our last round saw the successful investment of $100,000 in LOHAS Hub Member, Indosole, who craft a range of fashionable and functional footware from old motorbike tires, which are salvaged directly from landfills, sanitized, and then transformed by the Balinese community who make them. This investment has helped them transition to a larger production facility in Indonesia, allowing them to increase inventory, attract further investment and build their team of quality staff, brand awareness and sales.

“Application to the LOHAS Accelerator was one of the best business decisions I have ever made.” Kyle Parsons, founder of Indosole, “The process was smooth, comfortable and very supportive from start to finish. The LOHAS Accelerator gave me the ability to identify my business model and then put it into action with experienced and professional consultants from Accenture; and all for free! Fortunately for Indosole, we got the funding we needed to grow our business. Additionally, we gained a strategic partnership with a group of people who genuinely care and have the ability to take our business to the next level in SE Asia.”

These are truly exciting times for the LOHAS movement, the companies working for our planet as well as their profit margin and the consumers who are trying to live a little more LOHAS. The unique LOHAS Accelerator program links the new wave of social entrepreneurs to enlightened investors and the skills and experience of experts from some of the world’s top companies. If you are interested in learning more about the LOHAS Accelerator, either as a LOHAS business or a LOHAS investor, please contact Cissy from LOHAS Asia.

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

Whether you are a LOHAS company or a LOHAS shopper, you need to understand the megatrend of Conscious Capitalism—because it represents the larger economic context in which the critical trend of sustainability continues to unfold. If you are a values-driven consumer, you should learn how to identify a Conscious Capitalist company. Why? These are the firms you’ll most likely choose to patronize since they tend to espouse the same values that you do. As a company, you may want to measure your own standards against those of Conscious Capitalism. In this article, I describe what I call the three “Trademarks” of Conscious Capitalism.

The Stakeholder Model Conscious Capitalists embrace a philosophy of free enterprise that honors all the parties who contribute to the success of the enterprise. So, when leaders formulate corporate policies, they consider the interests of all “stakeholders”—employees, customers, suppliers, investors, communities, and ultimately the environment and the planet at large. By contrast, shareholder (or traditional) capitalists typically place the interests of investors over and above those of other stakeholders.

This is a critical distinction. But how does it play in business? Suppose a company’s sales and profits fall. That will probably displease investors. To make investors happy again, the company may decide to cut costs (aiming to increase profits) by laying off employees. Thus, the interests of investors supersede those of employees. That’s the Shareholder Model of capitalism.

Companies that champion the Stakeholder Model might well make another choice. For example, during the Great Recession, The Container Store (TCS) faced dwindling sales, like many other retailers. Yet the company, a prominent Conscious Capitalist, took a different path from that of traditional capitalism. Specifically, TCS adopted a “no lay-off” policy. But how, you might ask, was the company financially able to endure the continued cost of employee salaries at a time when sales and profits were slumping? The answer is balance. The Container Store found a new way to cut costs: it temporarily suspended matching contributions to employee 401K accounts. This policy proved far more acceptable to TCS staff than losing their jobs. And once sales again picked up, 401K matching benefits were back on.

As this example illustrates, the Stakeholder Model of Conscious Capitalism is neither vague, nor ideological. It holds clear operational implications for how a corporation is managed, how people are treated, and how a corporation can choose to generate economic value.

One might be tempted to assume that the Shareholder Model, i.e. putting investors first, delivers greater financial value to investors. In fact, traditional capitalists frequently make that very argument. But as you’ll see from the research cited in this article’s conclusion, Conscious Capitalists often outperform their traditional counterparts—in strictly financial terms.

A Purpose Higher Than Profit Despite their commitment to humanistic principles, Conscious Capitalists very much aim to earn solid profits. But unlike traditional capitalists, they do not consider profit to be the reason for their existence, or purpose. Instead, they choose a purpose that beyond the necessity of earning money, a “higher” purpose such as to “make a difference,” or “contribute to society” or to “sell products that foster good health and sustain the earth’s resources.” So, this Higher Purpose is the second trademark of Conscious Capitalism.

In fact, business always has a purpose beyond making money, specifically to fulfill some sort of unmet need. The heart of any commercial transaction is therefore to generate an exchange that is mutually beneficial. While capitalism celebrates the capacity to earn profit, it is purpose that infuses that profit with the profound mutuality and satisfaction.

A Commitment to Human Values In a world where people and companies alike are tossed about by a variety of intense and conflicting forces, we all need an inner compass to help us make the right choices, those that take us from where we are now to where we want to be in the future. In business as well as personal life, strong values supply the most reliable guidance and direction. The third trademark of Conscious Capitalism is a Commitment to Human Values.

Walk into any shop or store. Almost instantly you can get a very good read on the values practiced there. When values are lacking, you will almost certainly find a poor work environment, one that breeds boredom, gossip, and inattention to customers. On the other hand, when positive values are honored, it’s palpable. You feel and see it in the positive behavior of the staff.

The internet sales giant eBay, for example, is built entirely upon the value of trust. Early on, founder Pierre Omidyar posted this statement on the website: “We believe people are basically good.” Trust became the core of eBay’s policies and eBay technology reinforced that trust, so that considerably less than one percent of eBay transactions result in fraud.

What’s the Bottom Line?

            To the surprise of many, the Trademarks of Conscious Capitalism generate superior financial performance. Raj Sisodia, marketing professor at Bentley College and a co-author of Firms of Endearment with David Wolfe and Jagdish Sheth, studied 28 companies, including Google, Whole Foods, and Honda, whose managements fostered positive relationships with employees, customers, and investors. Over a ten-year period, the stock of these Conscious Capitalists soared 1,025 percent—versus 122 percent for the S&P 500. A second, decade-long study showed that public firms that are “great places to work” outperformed the S&P 500 by a very wide margin.

These studies show that when business possess the values, wisdom, and consciousness to appreciate that employees, customers, suppliers, and not just investors, contribute to the overall success of the enterprise, companies can achieve profound and sustainable success.

Patricia Aburdene is one of the world’s leading social forecasters and an internationally-renown speaker. She co-authored the number one New York Times bestseller Megatrends 2000. Her book Megatrends 2010: The Rise of Conscious Capitalism (EMBED Link for Megatrends 2010: http://www.amazon.com/Megatrends-2010-Rise-Conscious-Capitalism/dp/1571745394/ref=sr_1_2?s=books&ie=UTF8&qid=1353425143&sr=1-2 ), launched a business revolution. Patricia’s new book, Conscious Money: Living, Creating, and Investing with Your Values for A Sustainable New Prosperity, published in 2012, is a finalist is the Green category for the “Books for a Better Life Award.” Read Chapter one of Conscious Money at http://www.beyondword.com/consciousmoney/index.html. Patricia was named one of the “Top 100 Thought Leaders in Business Behavior” and serves as an Ambassador of the Conscious Capitalist Institute. Patricia’s journalism career began at Forbes magazine and she was a public policy follow at Radcliffe College, Cambridge, MA. Her website is patriciaaburdene.com.

The Dalai Lama says kindness is his religion. Wikipedia says that a random act of kindness is: "…a selfless act performed by a person or persons wishing to either assist or cheer up an individual... There will generally be no reason other than to make people smile or be happier."

Being sexy means something is delicious, fun, delightful, it makes us feel good with a smile in our heart. Put that together with kindness, and we have the ultimate feel good action!

We first heard the saying practice random acts of kindness and senseless acts of beauty, many years ago when we were at Findhorn, the renowned spiritual community in Scotland. But there can be some confusion about this: perhaps the receiver of the kindness might not appreciate it, it might make them apprehensive or distrustful in some way. Sadly, this seems to speak more about the suspicious world we live in than about the nature of kindness. If there is such wariness then what is needed are more acts of kindness done by more of us, not less.

Perhaps it is the use of the world random that is misleading, and that it would be easier if we used the word spontaneous instead. Spontaneity means we are acting on an impulse, in the moment, freely; we are moved to do something for someone without any thought of receiving something in return. Such behavior is surely the ground of a healthy and joyful society, where we happily give of ourselves to help another and such an act is happily received.

Be generous. Give to those you love; give to those who love you, give to the fortunate, give to the unfortunate -- yes, give especially to those you don't want to give to. You will receive abundance for your giving. The more you give, the more you will have! -- W. Clement Stone

What stops us from acting this way? Invariably it is our own insecurities, lack of self-esteem and self-love, doubts and inadequacies. And the same qualities also stop us from being able to freely receive. If we feel unworthy then we believe we have nothing to give; if we don't love ourselves then we don't trust why someone would be kind to us. We fear that if someone gives without reason that they actually want something from us, or that they have an ulterior motive.

If we feel uncomfortable with generosity we can get stuck in uncertainty, fear or unworthiness. When we doubt ourselves we fall into an endless pit of self -denigration. When we appreciate the beauty of kindness it takes us out of such self-centeredness; it enables us to let go of self-centeredness and to freely reach out to each other. We can both give and receive. Such egoless moments are exquisite!

Giving spontaneously can have a remarkable affect on all those who come in contact with it. For instance, HuffPost blogger Arthur Rosenfield was in the drive-thru line at Starbucks. The man in line behind him was getting impatient and angry, leaning on his horn and shouting insults at both Arthur and the Starbucks workers. Beginning to get angry himself, Arthur chose to keep his cool and change the negativity into something positive. He paid for the man’s coffee and drove away. By the time he got home at the end of the day, he discovered he had started a chain of giving that had not only continued all that day but had been highlighted on NBC News and within twenty-four hours had spread around the world on the Internet.

Remember there's no such thing as a small act of kindness. Every act creates a ripple with no logical end. Scott Adams

Can you imagine a world where no one gave to each other? Where we all just looked after our own needs but ignored everyone else's? This would surely be a miserable place to live, for ultimately, whether spontaneous or planned, we cannot be happy without being kind, by giving and caring for each other.

Spontaneous kindness is essential to our wellbeing, it liberates us from self-obsession, selfishness, and isolation. True generosity is giving without expectation, with no need to be repaid in any form. This is the most powerful, unconditional, and unattached act of generosity, free to land wherever it will.

Being kind can be as simple as smiling. As Mahatma Gandhi said, Almost anything we do will seem insignificant, but it is very important that we do it.

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Many people underestimate the effects of work related stress but it can cause many detrimental issues. Stress can affect your job performance. This may even become a vicious cycle of more stress if you receive poor evaluations from your supervisor and/or you are passed over for promotions. Stress can also seriously impact your health. It is well known that stress weakens the immune system making you more susceptible to catching the flu and other diseases. It also puts you at a higher risk for cardiovascular disease. Work related stress can bleed over into other areas of your life too such as negatively affecting the relationship you have with your family and friends.

Reduce Stress Before You Go To Work

If you are already stressed out when you get to work, things that would normally not bother you at work may stress you out. Therefore, it is important to develop strategies for reducing your stress level before you get to work. 5-10 minutes of exercise can work wonders. Listening to your favorite music as you travel to work can also help a lot. You may want to learn some basic deep breathing yoga techniques and practice these a few minutes before you step into the workplace.

Define Your Job's Expectations More Clearly

Studies have shown that a significant source of stress in the workplace is due to uncertain job expectations. This type of uncertainty can prevent you from knowing if you have performed well on your job even when you are trying very hard to do so. The best way to eliminate this source of stress if to talk candidly with your supervisor and make sure that you clearly agree on what's expected from you.

Avoid Workplace Conflict

Interpersonal conflicts between co-workers is another significant source of job related stress. You can take steps to minimize these conflicts by being careful about how you interact with your co-workers. For example, you can avoid controversial topics of conversation such as political or religious issues. Also, while it is perfectly acceptable to joke around with your co-workers, be sure not to take the jokes too far as this could cause misunderstandings and hurt feelings.

Be Nice To Your Co-Workers

Building on the old adage, "You can catch more flies with honey," making a special effort to be nice to your co-workers can create a more amicable work environment with less stress. This does not mean that you have to fake it. Just make an effort to treat your co-workers with kindness and respect. Genuine compliments are remembered for a long time. Kind gestures such as bringing in fresh vegetables from your garden to share or perhaps providing fresh cut flowers for the break room or your co-workers' desks can also help create a pleasant stress free work environment.

Keep Your Workspace Well Organized

If your personal workspace is cluttered and disorganized, this will be a source of stress. The good news is you have control over this source of stress and you can remedy it yourself. If you use a computer at work, making sure your desktop and your file structure is organized will also help reduce stress.

Find Ways To Reduce Physical Pain

Physical pain in the workplace is quite common and can create mental stress without you even realizing it. If have a desk job, your chair may cause back pain, neck pain, and discomfort in other areas of your body`. You can reduce this pain by replacing your desk chair with one that is more ergonomic or perhaps just adjusting the one you have. Sometimes, changing the height or angle of your computer monitor can be very helpful. If you stand a lot on the job, make sure you have an ergonomic mat under your feet to reduce the pressure on your feet, knees, and hips. If your job entails repetitive motions, make sure you take enough breaks and/or determine if you can perform the same task with a slightly different motion. Eye strain is also common in the workplace. Occasionally re-focusing your eyes on a distant object can help minimize this problem.

Make the Most Of Your Breaks

This importance of this point cannot be over emphasized. Even if you only have a 15-minute break or a half hour for lunch, there are things you can do during that time that will greatly lower your stress at work. If your job is sedentary, try doing something physical on your breaks. If nothing else, take a brisk walk. If you can find the space, you can do some simple exercises. Find ways to de-stress and get totally away from your work environment, even if this just means going out to your car, closing your eyes, and listening to your favorite music. You may also want to find a simple respite a short distance away from the workplace such as feeding the birds or just walking a block and  filling your lungs with fresh air.

Take a Professional Stress Management Course

Taking a professional stress management course can help you in a number of ways. Many people do not recognize the early signs of stress. A professional stress management course can help you learn to recognize the early signs of stress and deal with them effectively so they don't fester and grow into bigger problems. A professional stress management course can also help develop a custom plan to deal with your specific source(s) of work related stress.

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.

In the “better, but not booming” economy many predict in 2013, shoppers will focus more than ever on what they care about most deeply. So human values will increasingly shape their spending agenda. At the same time, new trends and priorities will inspire consumers to find new ways to take their values shopping. In addition to their abiding commitment to Health and Sustainability, values-driven shoppers will honor values like Transparency, Justice, Peace, and the more practical value of Frugality. Look for these trends to gain traction in 2013:

Non-violence Emerges as Top Value. In 2013 Peace and Non-violence will increasingly shape our financial choices. After the Newtown, CT massacre, a CBS poll found an 18-percent increase in people who favor tougher gun restrictions. This year powerful investors (i.e. the California teachers pension fund) have already sold weapons stocks. There are new consumer calls to boycott sporting goods stores that sell guns. In 2006, Walmart banned gun sales, but reintroduced them in 2011 to boost weak sales. “Boycott Walmart” initiatives now appear on Facebook.

Fair Trade Takes Off. Fair Trade (FT for short) consumers voluntarily pay a little bit more to endorse the value of social justice for farmers and artisans in developing countries. Result: Fair Trade is trending toward $5 billion global market. Fair Trade USA’s “Fair Trade Finder” mobile app helps consumers find FT products.

Third Party Verification Rules. Conscious shoppers favor products bearing a seal or certification from a reputable organization. LOHAS shoppers—80 percent of them—want trusted, independent sources to verify corporate product claims and 40 percent of all shoppers demand a seal or certification, reports a study by the Natural Marketing Institute.

Old-fashioned and Green Cleaning Products Rock. As green cleaners like Method, Seventh Generation, and Green Works gain market share over traditional labels, most mainstream cleaning brands (except Clorox and S C Johnson) still refuse to disclose chemical ingredients, despite pressure from consumers and activists. Meanwhile LOHAS shoppers enthusiastically embrace Grandma’s non-toxic—and ridiculously inexpensive—baking soda and vinegar. Great Recession helped us discover joy of frugality, but it’s unlikely we’ll abandon it as the economy picks up.

If there were a motto for 2013’s consumer spending mood, it might be: “Conspicuous consumption is gone for good; but discerning, values-driven spending never goes out of style.” Key words such as quality, meaning, simplicity, peace, economical, and local aptly describe the value propositions that will encourage shoppers to open their wallet in 2013. Time was, marketers asked, “Who is my consumer?” and defined consumer identity in strict demographic terms. But those who seek to build enduring relationships with LOHAS consumers must instead ask, “What are her values?” then cultivate a strategy for reaching said consumer by authentically embodying her values in all branding messages. 

________________

Patricia Aburdene is one of the world’s leading social forecasters and an internationally-renown speaker. She co-authored the number one New York Times bestseller Megatrends 2000. Her book Megatrends 2010: The Rise of Conscious Capitalism launched a business revolution. Patricia’s new book, Conscious Money: Living, Creating, and Investing with Your Values for A Sustainable New Prosperity, published in 2012, is a finalist is the Green category for the “Books for a Better Life Award.” Read Chapter one of Conscious Money. Patricia was named one of the “Top 100 Thought Leaders in Business Behavior” and serves as an Ambassador of the Conscious Capitalist Institute. Patricia’s journalism career began at Forbes magazine and she was a public policy follow at Radcliffe College, Cambridge, MA. Her website is patriciaaburdene.com.

[ Article form the special 20th Anniversary issue of the GreenMoney Journal (Fall 2012) and www.GreenMoney.com ]

The Next 20 Years of Sustainable Business

by Aron Cramer, President and CEO, BSR (Business for Social Responsibility)

Twenty years after the Earth Summit in Rio, and in this BSR’s 20^th anniversary year, we are both looking back and looking ahead. And as we reflect on the past 20 years, it seems that everything has changed…and nothing has changed. There are reasons to celebrate great achievements, but even more reasons to redouble efforts to achieve the tangible successes that are necessary to put the world on a genuinely sustainable path. Just recently there has been an unprecedented turnout by business and civil society at Rio+20, while at the same time the American Meteorological Society reports that freak heat waves in the US and fatal floods in Russia were likely caused by climate change.

Most businesses, and many other institutions, now recognize that we have in our hands the ability to create an economy that delivers dignified lives of comfort and opportunity for the 9 billion people we expect in 2050; an energy system that enables economic growth without irreversible climate change; and access to food, energy, water, and technology. Whether or not we turn this vision into reality is not just of interest to sustainability professionals, it is nothing less than the central challenge of the 21^st century.

There are indeed many great accomplishments that have been achieved since 1992. As sustainability enters the mainstream, we see that hundreds of millions of people have escaped poverty in the past generation, something never before achieved in human history. Most large multinational companies and countless small and medium enterprises (SMEs) all across the world have embraced sustainability. Consumers, investors, and governments have vastly more information than ever before to enable them to assess how business is performing on sustainability, allowing rewards for the best performers. Collaboration and dialogue between business, NGOs, and community organizations, once taboo, is now considered basic. Technology’s ability to connect us has created a global community unprecedented in human history. And where companies once saw corporate social responsibility (CSR) as a risk mitigation exercise, more and more understand sustainability to be the mother of all innovation opportunities. All this is great cause for optimism.

And yet, there are many, many areas in which, twenty years after the initial Earth Summit, progress is insufficient. Our planet continues to warm, with carbon levels nearing 400 parts per million, dangerously close to the point at which irredeemable changes will occur. We need only consider the thousands of record high temperatures in the early summer of 2012 in North America, capping the hottest year on record in the United States, to make the point. The International Energy Agency, hardly an alarmist organization, now sees serious risk of catastrophic climate change. Deforestation proceeds. Progress towards the Millennium Development Goals is inconsistent. The number of water-stressed regions in the world grows annually. And our measures of economic vitality remain tied to unsustainable levels of natural resource consumption. Governments have largely abdicated responsibility to take concerted action to promote low-carbon economic growth, wilting in the face of the global financial crisis. This litany makes clear that, by many objective measures, progress is far too slow – at best.

Without a change in course, the remarkable rise in living standards that have enabled countless people to live lives of dignity will either be halted or reversed.

But with new thinking, innovation, and collaborative action, we can transform our world, and turn the vision of sustainable, prosperous lives for nine billion people into a reality.

Where We Need To Go

If we are to build on the successes of the last twenty years, we need to change course. The task ahead is no longer about defining the challenge; it is about meeting the challenge. We don’t need more roadmaps; we need to move faster towards the destination.

The path forward is fundamentally different than the one we have traveled over the past two decades. In the first decade after the original Earth Summit, the time when BSR was founded, the primary challenge was to raise awareness in the business community about why sustainability was a crucial and legitimate topic for the private sector. In the subsequent decade, energies were directed less to awareness raising, and more to the integration of social and environmental strategies into business strategy and operations. For the decade ahead, integration remains crucial. Companies have made great progress in the past two decades, and we have been proud to play a role in that. There is considerable room to go further, and we write about that elsewhere in this article.

But a new decade brings a new approach. More substantial progress, however, depends on change not only inside individual companies, but also within entire systems. The era of the hermetically sealed, vertically integrated company is long gone. Every business, in every part of the world, operates within a web of systems: economic, cultural, political, and natural. Every business in every part of the world relies on networks of suppliers, customers, and investors. Even the most innovative companies won’t capture the potential of their efforts if these systems disregard sustainability. And as much as we value best practices, we also know from the past two decades that even the most creative experiments and demonstration projects are not going to meet the scale of the challenge.

So the solutions we need to achieve our goals must also be systemic. A genuinely sustainable economy depends on four inter-related elements: (1) the operational systems in which companies act; (2) the markets that shape the way investments are made and value is defined; (3) the stakeholder world that holds great promise, and (4) the world of ever more empowered individuals and connected communities.

   •     Truly Integrated Business Models: Business decision-making does not currently integrate environmental, social, and governance (ESG) factors into investment calculations. Fifteen years after John Elkington popularized the triple bottom line, very few companies have actually integrated this model into their economic valuations. Whether or not financial markets change the game, there is an opportunity for companies to get smarter about the intangible assets that increasingly make or break their success. While some companies are experimenting with economic valuations that include elements like carbon, we have not yet seen widespread adoption of economic models that place a value on ecosystem services, community goodwill, or the risk of stranded assets. It is now widely agreed that these things have value; our task for the next decade is to get more precise about what the value is, and how to measure it. The Natural Capital Declaration that 57 companies signed at Rio+20 is a good start down this path.

   •     Financial Markets That Promote Long-Term Value: Despite the Great Recession, public markets focus as intensely as ever on short-term returns. Shares in publicly traded companies in the United States are held for an average of seven months, down from seven years two generations ago. Markets allocate capital with great effect, and the challenge ahead is to maintain the best aspects of market flexibility while reducing the relentless pressure of short-termism. Financial innovation, which was blamed for the crash in 2008, can also be parlayed into new mechanisms that help create long-term value. Integrated reporting, integration of non-financial risks and opportunities into definitions of fiduciary duty, the creation of “L shares” as proposed by Al Gore and David Blood, as well as other mechanisms will create a virtuous circle in which companies are rewarded for taking the long view, and investors are cushioned from the risks of excessive short-term thinking. And there is little doubt that there is also the need to restore trust in our financial system if the “real economy” is going to thrive.

   •     New Frontiers of Collaboration: The past 20 years introduced the concept of collaboration among companies and an increasingly powerful network of NGOs around the world. The next 20 years will see the lines between for-profit and not-for-profit organizations blur substantially. A world of dialogue between organizations defined by whether they are for-profit or non-profit may be drawing to a close. Can we imagine a world in which every enterprise is a social enterprise? A world in which every NGO thinks about market solutions to the world’s most pressing challenges? How will companies collaborate when every individual has a megaphone bigger than those available to the world’s biggest NGOs 20 years ago?

   •     The Empowered Individual: The next ten years will continue to put more and more information and autonomy into the hands of individuals and self-forming groups. The demise of business models relying on big businesses selling to passive mass audiences will accelerate. More and more information will be available to individuals. The “internet of things” and widespread sensors will make the invisible visible. Advances in biotechnology will provide quantum leaps in our understanding of how the world around us, and our choices as consumers and citizens, affects our health. These changes can – under the right circumstances – be a net positive for sustainability. And it is undeniably the case that companies will need to adapt to a world of truly radical transparency.

At BSR, we want to see a world with a truly inclusive economy that enables all people to meet their needs, shape their futures, and achieve their potential. We want to see a world that values and preserves natural resources so that future generations have the same – or better – opportunity to thrive. We see a world where economic health – for individuals and for nations and enterprises – is measured not by the quantity of consumption, but by the quality of life that economic activity delivers. And we want to see a world in which public policy and markets create the incentives and rules that make it possible for businesses that point in this direction to thrive. Companies that embrace this challenge will be the ones to achieve the greatest success…and the ones who create a world of which we can be proud.

The road ahead needs greater emphasis on systemic solutions like those I describe here. If real progress is made in these areas over the next twenty years, we will have done a great deal to accelerate… and will have more reasons to celebrate.

Article by Aron Cramer, President and CEO, Business for Social Responsibility (BSR) (www.bsr.org ). Mr. Cramer is recognized globally as an authority on corporate responsibility by leaders in business and NGOs as well as by his peers in the field. He advises senior executives at BSR’s nearly 300 member companies and other global businesses, and is regularly featured as a speaker at major events and in a range of media outlets. Under his leadership, BSR has doubled its staff and significantly expanded its global presence. Mr. Cramer is co-author of the book Sustainable Excellence: The Future of Business in a Fast-changing World, about the corporate responsibility strategies that drive business success. He joined BSR in 1995 as the founding director of its Business and Human Rights Program, and opened BSR’s Paris office in 2002, where he worked until assuming his current roles in 2004.

Previously he practiced law in San Francisco and worked as a journalist at ABC News in New York. He has expertise in integrating sustainability into business strategy, human rights policies and practices, and stakeholder engagement.

For more information go to- www.GreenMoney.com

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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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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.

>> Download the 2012 LOHAS Forum CO₂ Report

The annual LOHAS conference is one that I look forward to. LOHAS is an acronym for lifestyles of health and sustainability. It refers to the substantial market for products and services, ethically delivered, for consumers especially concerned about wellness and corporate responsibility. It is the market at “the Intersection of Personal and Planetary Heath,” as Gwynne Rogers of the Natural Marketing Institute put it.

LOHAS attracts the friendliest assemblage of conferees I have encountered. Perhaps it is all the yoga and healthy eating that makes attendees so cordial. Perhaps it is their determination to make the world a better place. Often when people advocate “change,” what they mean is the other guy should change. At LOHAS, the notion of change is often aimed at oneself.

LOHAS features talented business leaders like Kevin Rutherford, CEO of Mrs. Meyers, and Kim Coupounas, co-founder of GoLite, sharing insights. Douglas Gayeton, author of the Lexicon of Sustainability, is using the power of words to “activate change and transform societies.” His vehicles include billboards, social media, pop up shows, and PBS short films.

And this year, as in previous years, marketing experts, like Suzanne Shelton of the Shelton Group, dissected the “green market” and offered useful counsel on how to attack it. For example, inspire don’t educate. Don’t make the problem seem so big an individual can’t do something about it.

Personal conviction is the trump card at LOHAS, and it this seems to explains the abounding goodwill at the conference.

The conference was held in Boulder, Colorado, which is one of those supremely livable small cities and thus an appealing destination. We were there just before the forest fires arrived. The Mountain West is dry country and, to my thinking, increasingly vulnerable to climate change.

This year, as in previous years, NativeEnergy was the carbon offset sponsor, providing offsets from our signature Help Build™ projects to balance the greenhouse gas pollution from conference-related travel, lodging, and operations.

>> Download the 2012 LOHAS Forum CO₂ Report

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

Pizza, beer, ramen noodles—yep that about sums up the diet of a typical college student these days. Short on both cash and time, students take what they can get in the way of sustenance, no matter how bad for them it really is. The more we learn about nutrition and our bodies, the more we realize just how damaging habits such as these are. Sure, it's likely that these are only temporary routines that will eradicate themselves upon graduation, but there's a chance they won't. And then what are we left with? A society of out-of-shape, malnourished individuals eating themselves into an early grave.

Luckily, knowledge is indeed proving powerful as more and more students and individuals everywhere are taking a stand against this less than beneficial trend. One example of this is the Real Food Challenge in which numerous students are participating.

Serving as both a campaign and a network, the challenge's main mission is to increase the procurement of, and therefore availability of, real food on college and university campuses everywhere. They have set a national goal to hit 20% real food by 2020, which will hopefully then make waves for the food industry as a whole, as it's obviously not a problem on just the college level.

What is "Real Food"?

It's believed that presently less than 2% of our nation's food economy consists of "real food"—a problem that must be corrected if we hope to see any real change as a society. But what exactly is this "real food" about which everyone's talking?

Known as other names as well such as "slow," "local," or "green," real food is food that is humane, local, ecologically sound and fair. It is not artificial in any way and generally makes a trip straight from the farm to plate. There is no intricate processing involved, it's just good old fashioned nourishing sustenance—a far cry from the processed junk that makes up so much of our diet these days.

How Does the Challenge Work

From the development of college farms, fair trade initiatives and "Farm-to-cafeteria" programs, many institutions of higher learning are making conscious changes for the future. Currently, the challenge's organizers have coordinated informational summits, trainings, and campus visits to spread awareness of their cause.

Currently, over 360 schools across the country are participating, and as student leaders and campaign directors continue their efforts that number is only expected to grow. While it may not seem like the participants are doing much, taking the time and investing the effort to get the word out is what needs to happen at this point. People have to first be informed before they can make smarter decisions—and that's the primary driving force behind this initiative's organizers.

Getting the next generation of leaders and policy makers involved is crucial to making and long-term, substantial change, hence the importance of starting this on the college front.

Lauren Bailey is a freelance blogger who loves writing about education, writing, and health. As an education writer, she works to provide helpful information on the best online colleges and courses. She welcomes comments and questions via email at blauren 99 @gmail.com.

The environmental problems we face as a society are so vast. How can we personally connect with these problems? By getting out of our heads and returning to the body, we can see that body links us with the world outside ourselves. We need to turn off the televisions sets and turn off our minds and feel the connection we have with the world around us. There is a problem right now in the world and it is our duty, right now, as human beings to address this problem.

The climate change crisis is really an opportunity to truly connect with the world around us, an opportunity to enhance our mental health by stepping out of alienation and aimlessness. For too long, we have been disconnected from our bodies, each other and our environment, but now, mindfulness in the present moment provides a road to connect outside ourselves to this crisis we all face. The present moment is a highway to connection. Only here and now we can we connect outside ourselves because the past and future are mere concepts. Only here and now, can we disregard assumptions rooted in the past so we can contend with future challenges.

And what are those challenges? Climate change imperils our future right now, but that future can be salvaged if we all work together. Being present right now carries high stakes for the health of our environment and for a our mental health. We do face a crisis of meaning in our culture and the solution to that crisis is combating climate change. If life today has meaning, that meaning is fueled by the existential crisis that climate change is becoming. If we are protecting the earth’s sustainability for future generations, then our life has meaning because we are acting in connection with others and the natural world that has made all our lives possible.

And what about the LOHAS revolution? The LOHAS revolution shows us that the climate change crisis is not just a moral, political and intellectual crisis, but a spiritual and emotional one rooted in connectedness. For too long, we have been cut off from other people and the world that surrounds us. More than just political change, Lifestyles in Health and Sustainability require a change in consciousness, a change in how we perceive the relationship of our self with the world.  Sustainability is more than just a set of policies, it is a spiritual principal that colors life with meaning. LOHAS is a means of using the climate change crisis as an engine of spiritual renewal. It is an opportunity to lift up our society from despair, nihilism and isolation and become immersed in connectedness and responsibility.

LOHAS Asia, the sister organization to LOHAS USA, is thrilled to announce that the first round of the LOHAS Asia Funding Initiative has resulted in investment in US based LOHAS company, Artterro. Artterro produces eco art kits for children, and following three rigorous rounds of assessment by a funding panel in Singapore, Artterro was selected to receive investment to help it grow to the next level.

What Is The LOHAS Asia Funding Initiative?

The LOHAS Asia Funding Initiative has been created to achieve the following:
1. To fill the gap in traditional funding models to provide a much-needed link between investors and entrepreneurs that meet the demands of the LOHAS consumer in Asia
2. To accelerate the development of small, sustainable businesses that meet the needs of the LOHAS consumer, and who – through their success – have the capacity to drive industry-wide change
3. To demonstrate the viability of triple bottom-line business to the wider investment community
4. To promote sustainable consumption in Asia by supporting the provision of a wider choice of price competitive, sustainable and aspirational LOHAS products.

LOHAS Asia’s Funding Initiative combines access to funds of up to US$10 million in growth capital per company with ongoing marketing, technology and strategic planning mentoring and support from a number of the world’s leading corporations. The Initiative is targeted at for-profit LOHAS companies from all over the world who have a clear Asia strategy (supply, production or distribution) and a minimum of one year’s trading revenues.The funding panel, made up of finance, branding, technology, retail experts and entrepreneurs, chose Artterro because it represents a strong example of a for-profit company strongly underpinned by LOHAS values.

“Artterro is exactly the kind of company that we wish to see funded to be able to grow to the next stage of their business. They are a business founded on solid LOHAS values, with adherence to triple bottom line principles. We wish to be able to show that integration of social justice and environmental protection into a company’s operations can yield normal returns to the investor community. Being LOHAS should not be an excuse for poor profitability and sub standard quality of goods and services, but can actually yield greater profits versus business-as-usual and deliver products and services that can compete with any company in the market. Furthermore, profits are then used for the greater good in turn, according to the company values.” said Adam Horler, President of LOHAS Asia.

The LOHAS Asia Funding Initiative represents the future of sustainable innovation. Its breakthrough platform brings together a diverse set of partners (entrepreneurs, industry specialists, and financial institutions) to accelerate the development of new enterprises with responsible business models. I'm proud to be a part of this visionary organization and excited about it supporting Artterro, an energetic firm with real promise to disrupt its industry for good." said funding panel member, Dustin Garis, Global Brand Manager at P&G Futureworks.

The Funding Initiative is focused on companies that have an end consumer for their products or services and an Asia strategy. The investment received by Artterro will be used to increase its marketing and sales capacity and to help the company expand production and distribution in Asia.

"We have always been inspired by the amazing work LOHAS is doing, so this opportunity is both an honor and further inspiration to grow sustainably. We are thrilled that the LOHAS Asia Funding Initiative chose Artterro for investment, and we look forward to working with our new strategic mentors to reach our potential as a truly global brand with LOHAS values." said Forrest Espinoza, Founder and CEO of Artterro.

The second round of the LOHAS Asia Funding Initiative was launched on Friday 15th June. Any interested companies should contact info@lohas-asia.org for more information on how to apply.

LOHAS Asia is a social enterprise based in Singapore seeking to encourage sustainable consumption, particularly across urban Asia. The purchasing decisions of the ever growing population of affluent Asian middle class consumers is critically important - both as a market for companies and for future of the planet as a whole. LOHAS Asia works on both sides of the sustainable consumption equation, seeking to engage with consumers themselves and to support the growing community of LOHAS companies, thereby helping to increase the choice of aspirational yet sustainable products and lifestyles available to consumers. LOHAS Asia has created THE HUB by LOHAS, an online network for LOHAS companies across the world to connect, collaborate and seek opportunities. www.thehub.lohas.com

Artterro is an award winning eco art kit company based in Madison, WI, USA. Helping people tap into their creativity with inspiring, open-ended art projects is at the core of Artterro’s mission, as is their commitment to sustainability. Artterro sources artist-quality, natural materials from ethical suppliers, and people with special needs assemble the kits at Goodwill Industries.  Their kits make art more accessible and bring friends and families together across generations.  www.artterro.com

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

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. 
 

Green has gone mainstream. Not too long ago, just a small group of deep green consumers existed. Today, 83% of consumers (Source: Natural Marketing Institute, 2009) - representing four generations, Baby Boomers, Millennials, Gen Ys and Gen Zs - are some shade of green. Each in their own way, these generations are quickly transforming what used to be a fringe market that appealed to a faction of eco-hippies is now a bona fide $290 billion industry ranging from organic foods to hybrid cars, ecotourism to green home furnishings. Teen daughters of yesterday’s activist moms search out Burt’s Bees lip balm made from beeswax while their “twenty-something” brothers opt to clean their new digs with Method ‘s cucumber-fragranced dish liquid. Today’s Dads boast of higher mileage, fewer fill-ups, and the peppy look of their new Mini Coopers or diesel-powered Jettas that get 50-plus miles to the gallon; expect their Gen X sons to be kicking the tires of Nissan’s electric Leaf, now heading towards showroom floors.
 
Thanks to advances in materials and technology, today’s “greener” products (defined as having a lighter impact on the planet than alternatives) and today’s more “sustainable” products (those that add a social dimension, e.g., fair trade) now not only work well, they likely work better and more efficiently than the “brown” counterparts they were designed to replace. Channels of distribution have changed have changed, too.  As I point out in my just released book, The New Rules of Green Marketing (Berrett-Koehler, February 2011)  today, sustainable products are readily available in conventional supermarkets such as Fred Meyer and Safeway, brightly lit emporiums such as Trader Joe’s and Whole Foods Market, while mighty Wal-Mart leads the charge towards lifecycle-based standards for products through its groundbreaking Sustainability Consortium
 
Once confined to open spaces and rooftops, solar power is now mobile, fueling a modern-day, on-the-go lifestyle embedded in cellphone chargers, backpacks, and even the latest fleet of powerboats. Or confined to the tissue boxes or wrappers of days gone by, recycled content is now good enough for Kimberly-Clark’s own Scott Naturals line of tissue products (with its new “coreless role”)  and Staples’ EcoEasy office paper, Patagonia’s Synchilla PCR (post-consumer recycled) T-shirts made from recycled soda bottles, and Aveda’s Uruku cosmetics packaging made from recycled newsprint, to name just a few.
 
A sure sign that caring for nature and the planet and the people who live here now and in the future is here to stay – “Sustainability” is a core value of every living generation, starting with the Baby Boomers, the nation’s primary household shoppers and societal leaders who led the green charge back in the mid to late-1960s, and extending right through to Internet-savvy Generations X, Y, and Z who promise to transform markets as future decades unfold.
 
Four Generations of Green
The consuming power of the four current generations is remarkable if marketers can target them by what appeals to them uniquely.
 
Boomers: The First Modern Green Generation
Now the heads of millions of U.S. households, the Baby Boomers and been influencing society since the 1960s when they planted the seeds of the modern day green movement when as idealistic youths, gathered to celebrate the first Earth Day, in 1970, followed by the first Solar Day in 1971. Their peaceful demonstrations of concern gave rise to the National Environmental Policy Act of 1969, the founding of the US Environmental Protection Agency in 1970, the Clean Air and the Clean Water Acts that same year, and the Endangered Species Act of 1973.
 
The Middle East oil embargo, marking the beginning of the energy crisis of 1973-75, then focused the Baby Boomers on the need for smaller, more fuel-efficient cars.  Witnesses to the 1979 the release of the fictional The China Syndrome, a movie about safety cover-ups at a nuclear power plant, serendipitously opened at theaters two weeks prior to the partial core meltdown at the Three Mile Island nuclear-generating station near Harrisburg, Pennsylvania. They learned first hand about the need for renewable energy.
 
Taking the values and attitudes they have instilled upon society and have imparted to their children and grandchildren to supermarket aisles, today, over half of Baby Boomers consider themselves socially conscious shoppers. That’s 40 million green boomers who, as illustrated in the chart below. 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.
 
GenX: Eyes on the World
CNN brought global issues into the living room of this generation 24/7.  Counting among them actors Leonardo DiCaprio and Cameron Diaz as two of the most outspoken environmentalists of their generation, Gen Xers see environmental concerns through a lens that aligns social, educational, and political issues. They witnessed the fire in the Union Carbide plant in Bhopal India, and the aftermath of the explosion in Chernobyl. In 1985, the Live Aid concert helped to instill in them the need for famine relief in developing nations to an unprecedented 400 million worldwide, and more pointedly, in 1989, Gen Xers saw the massive devastation wrought by the Exxon Valdez oil spill in Alaska.
 
Millennials: Digital Media at Their Command
This generation grew up in front of computers and unleashing the power of the Internet is second nature to them. Having lived through Hurricane Katrina and the BP Oil Spill, and with growing awareness of the Great Pacific Garbage Patch (the size of Texas), they tend to be distrustful of government and authority, and are quick to challenge greenwash and other marketing practices they deem to be unauthentic or untruthful. With their majority believing that humans cause climate change and the Millenials (aka Gen Y) are twice as likely to buy green products than those who believe climate change is occurring naturally.
 
Green is an integral part of this generation’s college experience. Legions of students now opt for newly created environmental studies courses (and majors) and are active in campus sustainability initiatives.
 
Reusable water bottles and coffee mugs are ubiquitous on college campuses where many savvy companies now reach out with sustainability messages to future householders with significant incomes. Not content to sacrifice all for the almighty dollar, Millennials seek to balance “quality of life” and the “quest for wealth”; they seek to work for socially conscious employers.
 
As the offspring of the Baby Boomers whose social and environmental values they share, Millennials are the likely new leaders of the modern-day green movement. With the ability to express their opinions through blogging, texting, and social networks, they are capable of mustering immediate responses from millions around the globe.
 
Generation Z: Green is a Natural Part of Their Lives
The first generation to be brought up entirely in an environmentally conscious world, green is part of their everyday life. This generation - currently under the age of 16 - think nothing of living in solar-powered homes with a hybrid car in the driveway. In school and at home the 3Rs of waste management, “reduce, reuse, and recycle,” are as common as the 3Rs of “reading, writing, and ‘rithmetic.”  Sorting paper and plastic for recycling is a normal part of “taking out the trash.”  As school kids, they likely viewed The Story of Stuff, a 20-minute animated video that divulges the environmental impact of our daily consumption. Environmentally sensitive cleaning aids, locally grown produce, and recycled-paper goods likely top their parents’ shopping lists; clothes made from organically grown cotton and biobased fibers are part of their own Gen Z uniform.
 

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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.