Sustainable Green Business

Band Cloud Cult Showers World with Love

Thursday, May 9, 2013 by

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

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

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

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

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

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

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

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

 

LOHAS in China as a Brand and a Trend Towards Stress-Free Living

Wednesday, May 1, 2013 by

green chinaBy 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

Sustainable Business Profile: Burgerville

Friday, April 26, 2013 by

burgervilleInterested 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/

 

 

 

4 signs that your target market should include Conscious Consumers

Thursday, April 25, 2013 by

Conscious Consumer

Image from BBMG

Conscious Consumers are an active and growing purchasing segment in the U.S. and worldwide. All you have to do is look at why LOHAS exists to see the potential economic impact of this group (and that doesn't even take into account the social impact). The term “conscious” is three-fold, applying to consumers who consider more than price and convenience when making a purchase decision – they also consider impact on their health, the environment and the greater good.

If you are one of the 73% of companies who has “sustainability” listed as a strategic priority and you are not already thinking about the 70 million Conscious Consumers in the U.S. as a market segment, here are four signs that you should be:

  1. Your product or service is more environmentally friendly than your competitors’. Conscious Consumers are sensitive to being green. They do not always make the most green choice available, but they at least consider environmental impact. Whether your product or service is green because it has less packaging, uses less energy or is made more locally than alternatives, they care.
  2. You offer a product that makes a healthy difference. With obesity storming on the scene as a public health concern, millions of Americans seek ways to incorporate physical activity and healthy eating into their busy days. Foods are being fortified in new ways (protein in your water, anyone?), treadmill desks are on employee wish lists and even apartment window boxes no longer function as ashtrays, but sprout mini urban gardens. If you make it easy for people to live healthier, Conscious Consumers need you.
  3. You aim to “do well by doing good.” Corporate social responsibility programs are now part of most large companies’ strategic plans. Your program may engage all your customers like Target’s multi-pronged “here for good” campaign, or as a smaller company, perhaps you strive for 100 percent participation in an annual United Way campaign or spend a day building a house for Habitat for Humanity. Whatever your effort may be, if Conscious Consumers know about it, they’ll be more likely to spend a few more cents on your product or recommend it to others.
  4. You want to reach influencers. At one point, environmentalism and health advocacy were fringe issues for hippies and extremists. The mainstreaming of these ideas has all but eliminated political differentiation – Republicans and Democrats alike turn off the water while they brush their teeth and take reusable bags to the grocery store. Conscious Consumers come from all different backgrounds, but are consistently early adopters who make conscientious purchasing decisions that they share with friends, family and co-workers. If you want people who are likely to increase your word-of-mouth marketing, you want Conscious Consumers.

Conscious Consumers certainly aren’t going anywhere. They’re going to keep making decisions based on what really matters. Are you in a position to help them make a difference?

Green Spas And Salons: How To Make Your Business Truly Sustainable

Wednesday, April 24, 2013 by

Green Spas And Salons: How To Make Your Business Truly Sustainable, a new book for the Spa/Salon/Hospitality Industry by Shelley Lotz, helps owners and managers develop smart, sustainable practices for long-term business success.

This unique guidebook summarizes business practices, sustainability principles, and green building  all in one. The book sifts through the “green hype” to focus on best practices. This guidebook goes beyond the spa industry and most  of the principles are applicable to any business or lifestyle. 

  Planning guides with personalized action plans, how-to steps, and worksheets are included. Tools are given for evaluating services, products, supplies, operations, and building elements. Ideas for staff engagement, client needs, and marketing are incorporated, along with the science and the economics of sustainability. Guidelines for purchasing, water and energy conservation, waste reduction, and indoor environmental quality are all covered. 

  The book is described by Mary Bemis (Founder of Insider's Guide to Spas, and Founding Editor of  Organic Spa Magazine) as “an invaluable resource for spa and salon owners.”  Kristi Konieczny,   Founder of The Spa Buzz, says “The most powerful and practical resource for sustainability of spa and salon operations I have ever seen.”

Visit www.greenspasandsalons.com  for more information.

Inspiring spa case studies include: Agave Spa, Aji Spa and Salon, Atlanta School of Massage, Be Cherished Salon and Day Spa, Complexions Spa, Crystal Spa, Elaia Spa, Glen Ivy Hot Springs, Natural Body Spa and Shop, Naturopathica, Osmosis Day Spa Sanctuary, Spa Anjali, Spa at Club Northwest, Spa Moana, Sundara Inn and Spa, The New Well, Vdara Spa and Salon, and Waterstone Spa.

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

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

 

LOHAS: You Had Me at Hello

Monday, April 22, 2013 by

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

A focus on green business

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

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

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

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

The sustainable business view from here

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

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

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

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

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

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

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

The Good News

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

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

What do YOU want to hear about?

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

About the Author

Alison Lueders is the Founder and Principal oGreat Green Editing. She provides writing and editing services to green businesses and social enterprises that value high-quality content. She ensures that their content and communications – their business face to the world – are correct, clear and compelling. She is a graduate of Harvard College and received her MBA from MIT. She earned her Bronze seal from Green America in April 2013 and Platinum-level recognition from the Green Business Bureau in 2012.

She can be reached at info@greatgreenediting.com and at 813-968-1292.

Green Jobs: Resources for Careers in Natural, Organic and Sustainable Products

Monday, April 22, 2013 by

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

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

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

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

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

Green Job Resources

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

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

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

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

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

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

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

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

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

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

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

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

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

________________________________________________

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

Marketing to the rhythms of nature.

Friday, April 19, 2013 by

Waking up to thunder, lightning—and snow recently, I realized that here in the midwest, we are experiencing the in-between time.

Not quite spring. Not quite winter. But a time when lines blur and shadows form. As the head of a LOHASian (Lifestyles of Health and Sustainability) advertising agency based near Minneapolis, I realize that this in-between time moves through business in rhythms that mimic nature.

Those times when projects sit in limbo due to budgetary review. When new hires are postponed until venture capital is raised. And when proposals for new initiatives are passed  back and forth through decision making chains.

So as I sat at my desk listening to thunder and watching snow fall while organizing files, I came across this photo from last summer. It was a bit of a shock to see leafy green trees and Russian sage just outside my office door, when the trees now are still bare and ground is covered in snow.

It was such a perfect reminder of new growth that awaits. Winter is a time for rest. And spring carries the knowing that what was frozen will once again flow.

Spring into LOHASIAN Branding.

Friday, April 12, 2013 by

 

I'm not an especially patient person—and often find myself wanting to leap ahead. Yet like the parable of the farmer who tries to tug at tiny, green shoots  in hopes that they'll grow faster, only to kill the entire crop—the same is true for much in life. Especially branding.

As the head of a Minneapolis-based LOHAS (Lifestyles of Health and Sustainability) advertising and marketing agency, I find that the extraordinary process of building a brand is much like planting seeds. While brand architecture and strategy is being created through process, meetings, collaboration, refinement and data-weaving, for those looking in from the outside, nothing much seems to be happening.

Like seeds buried in dark rich soil, this is where brands take root. It seems that the fundamental and foundational aspects of branding take place below ground; yet provide all the essential components that bring forward the colors, text, brand ID, web presence, e-blast campaigns, direct response, print and web ads, brand voice, community and full-on experience that brings businesses to life.

So at this time of year, when the ground is still frozen, yet the light and longer days hold the promise of spring, remember to honor the below-ground time. Be disciplined about rushing the process. Allow the seeds you've planted so carefully and so strategically to work their magic before tugging at their shoots to bring them to the surface.

You'll be rewarded as your brand comes into bloom.

 

8 things That Makes the LOHAS Conference Unique

Tuesday, April 9, 2013 by

LOHAS Forum

1.    Cross section of attendees is like no other event. LOHAS brings together Fortune 500 companies with start up entrepreneurs, investors, nonprofits, thought leaders and media who all want to make the world a better place. It is a great networking event for those who want to stretch their comfort zone and meet new people.

2.    On the cutting edge of what is next. LOHAS has many cutting edge thought leaders, researchers and visionary presenters who have a pulse on trends that often become mainstream. If you want to know what will be mainstream in 2-5 years then the LOHAS conference is a must attend event.

3.    Permission to drop the armor of image is granted and expected.  Everyone at the event wants to know who each other is at heart first and then get to professional interests second. This makes the networking much easier as attendees are sincerely attentive to each other’s needs.

4.    Market data worth thousands of dollars is presented by a variety of green market trend specialists. Those that are interested on what is happening in the LOHAS space can collect a tremendous amount of insight from these highly sought presentations.

5.    LOHAS is Embedded Into Boulder. LOHAS uses distinctive historic landmarks in downtown Boulder as the venue for attendees to experience the charm of the city during the conference during June.

6.    LOHAS has a Legendary Gift Room. Rather than provide a pre stuffed conference bag of brochures that are typically dumped in the hotel room we provide a gift room of various items from LOHAS companies that attendees can pick and choose from. Attendees love this and the gift bags are usually quite stuffed when people leave the room!

7.    Program content transcends green business to include elements to connect with the human spirit and community in a way that is energetic and inspiring.

8.    Not just a conference but a community celebration! We have a variety of ways built into the event ranging from morning yoga and meditation to musical entertainment to after parties to engage the senses for attendees.

Don't miss out. We would love to see you there! REGISTER HERE.
 

 

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

Shoppers' shifting values will lead to more green, fair, quality purchases

Wednesday, April 3, 2013 by

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

Leading Grocers Act to Reduce Food Waste

Thursday, March 21, 2013 by

“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.

Wealth + Well Being = True Prosperity?

Friday, March 1, 2013 by

What is genuine prosperity? Whether you are an individual devoted to growing Conscious Money, a LOHAS company committed to delivering value to your customers, or an architect of economic policy, it serves you well to contemplate that question. When you do, you may find yourself wanting to distinguish true prosperity from the mundane variety that may dazzle at first, only to unravel because it is highly unsustainable. Many are tempted to define prosperity in strict economic terms. Metrics are handy and besides, we’re talking about financial matters, aren’t we? 

Not entirely. As Robert F. Kennedy said in 1968, “The gross national product does not allow for the health of our children, the quality of their education, or the joy of their play … It does not include the beauty of our poetry . . . our wisdom . . . our compassion . . . it measures everything, in short, except that which makes life worthwhile.”
RFK’s moving remarks are especially pertinent today because, despite continued inequities, glaring injustices, and distressing environmental developments, an initial level of economic well-being is within reach for hundreds of millions of people, particularly in Latin America, Asia, Eastern Europe, and some of the more prosperous countries of Africa and the Middle East. For this reason, I would argue that the potential for people to practice Conscious Money is becoming a truly global phenomenon. That statement holds enormous ramifications for the LOHAS movement.
But how on earth do we factor in the many and deep dimensions of life that as Robert Kennedy told us, cannot be measured by what some call “the numbers”? 
 
Introducing: The Legatum Prosperity Index
True prosperity requires us to examine a complex set of human factors that encompass human values and consciousness. Determining and measuring the factors that sustain prosperity is the work of the London-based Legatum Prosperity Index, a global database that defines prosperity as wealth and well-being.  The Index’s findings often defy traditional thinking about who is prosperous and who is not. For example, the United States, often deemed the world’s wealthiest nation, ranks as only the tenth most prosperous. And the former Soviet republic of Kazakhstan, which is hardly considered well-to-do, ranks number 46 on the Prosperity Index, a few notches higher than oil-rich Saudi Arabia, which comes in at 49th. One intriguing and positive Index metric shows that the people of sub-Saharan Africa are more optimistic about entrepreneurship than those of many richer countries.
The Prosperity Index evaluates 110 countries (comprising 90 percent of the world’s population) on eight foundational factors of prosperity: economy, entrepreneurship and opportunity, governance, education, health, safety and security, personal freedom, and social capital. Except for “economy,” which might be construed as purely financial, these building blocks of prosperity, in one way or another, gauge or reflect human values or higher consciousness. 
For example, education raises human awareness: higher education levels generally point to greater possibility of conscious choice. Entrepreneurship requires hope, a core human value. Security frees the human spirit to engage in productive activity, including economic activity. Social capital, which the Index defines as cohesive community and family networks, relies on the value of trust, the lack of which is highly detrimental to prosperity. 
As the potential for Conscious Money expands globally, we can see the world anew, envisioning fresh opportunities for ourselves, our children and grandchildren, to live, work, and invest in a world of peace and prosperity. But as the Legatum Prosperity Index demonstrates, it is not economics alone, but economics infused with shared consciousness cultivates the right conditions for a rich, fulfilling life. The Index also shows us that money, values, and consciousness are seamlessly intertwined in the dynamic of human economic evolution here on planet Earth. 
That bodes well for the future of the LOHAS movement and its continued international expansion.
 
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 at  http://www.beyondword.com/product/Conscious-Money-02926. 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.
 
 
 
 
 
 
 
 
 

LOHAS Internship Opportunities

Thursday, February 28, 2013 by

LOHAS internshipThe LOHAS internship is a part-time, or full-time school year remote or in Louisville, CO based LOHAS office position for a student or recent graduate seeking experience in a sustainable business environment.

Hours per week: 10-25 (will escalate as LOHAS conference gets closer)

Employment Start Date: Immediately


 

Job Description:

Event project intern will report to and work directly with Executive Director, Production team, sales manager organizing the annual LOHAS conference, LOHAS.com web content and LOHAS e-weekly newsletter. Intern will gain skills in event project management, sponsor management, speaker management, online event marketing and sustainable business content; managing multiple projects with deadlines and various online platforms – Drupal, Compendium, Get Response, Eventbrite and Regonline.

Candidates must have strong verbal and written communications, be a self starter able to take on projects and responsibilities confidently and have strong writing and editing skills. Other essential skills for a successful internship include familiarity with Microsoft Word, Excel, Facebook, LinkedIn, Twitter and Google +. HTML background a plus.

Intern responsibilities

  • Manage the delivery of LOHAS e-weekly newsletter
  • Update relationship contacts and outreach lists
  • Assist with marketing outreach via social media and online promotions
  • Assist with sponsor relations and materials needed
  • Upload sponsor logos and information on to LOHAS.com website
  • Upload speaker details on website
  • Update online program
  • Pass sponsor deliverable details to event coordinators
  • Load sponsor details into LOHAS HUB
  • Be on call meetings regarding event logistics
  • Coordinate with volunteers
  • Assist with publishing LOHAS.com blog posts and comments

Onsite:

  • Assist with event set up and registration
  • Assist with attendee QA, onsite logistics
  • Assist with event tear down

Qualifications:

  • Must be motivated and determined to succeed
  • Must be able to work cooperatively with all departments
  • Must be able to meet deadlines on time in a diligent and professional manner
  • Must be familiar with MS Office (excel, word) and comfortable learning new online platforms
  • Must be a student of an accredited intern program


If interested please contact us.

 

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

The Trademarks of Conscious Capitalism

Sunday, February 24, 2013 by

Conscious CapitalismWhether 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.

 

 

Conscious Money & Conscious Capitalism

Friday, January 25, 2013 by

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.

Today, conscious finance attracts more followers daily as business leaders and “ordinary” people alike seek new monetary models that integrate values into finance. The $290 billion LOHAS market of course, is well known to many, but consider also the $3.74 trillion Sustainable Responsible Investing (SRI) industry, which has expanded 22 percent since 2010. Each of these robust sector, which have continued to thrive despite a weak economic recovery, embody Conscious Money, illustrating how compatible values and money really are. So much for conventional thinking. In fact, traditional financial and consumer brands avidly pursue the LOHAS and SRI markets. 
Conscious Capitalism is a new breed of free enterprise that honors people, purpose, and the planet. Embraced by visionary CEOs, in the US and globally, Conscious Capitalism differs from traditional capitalism because it endorses the “stakeholder model” of business which considers the interests of all parties that contribute to corporate success—customers, employees, investors, suppliers, communities, and the planet at large. Traditional capitalist theory by contrast tends to place investors first. For example, the late Milton Friedman, a Nobel laureate in economics, famously stated: “The social responsibility of business is to increase profit.” Conscious Capitalists are typically highly committed to growing profit, as well, but go they about it in a different way: by embracing a purpose above and beyond profit, such as promoting personal health or global sustainability. Human values like trust, justice, or transparency also play an important role in policy and behavior of conscious companies.  
Conscious Money, by contrast, is an approach to personal finance in which human values, inner wisdom, and higher consciousness guide individual financial choices, while people also observe sound monetary principles. The idea behind Conscious Money is simple: it’s about creating a positive, life-affirming relationship with money and a recognition that, when greater awareness (or consciousness) directs money choices, it can make a difference for one’s self, for others and for the planet at large. 
Figuratively speaking, your money becomes “conscious” when you infuse your cash, savings, expenditures, income investments, and philanthropic contributions with values, awareness, and positive intentions. 
Conscious Money and Conscious Capitalism are together building an unparalleled platform for meaningful economic co-creation. Because at the heart of every financial transaction lies the power of collaborative conscious choice. Conscious shoppers wield an enormous force for good in the economy. Conscious Capitalists, in turn, are more likely to invest in green innovation knowing that a growing market for green products exists. Each time individuals and businesses interact in a conscious exchange, the inner world of awareness and values tempers the marketplace of humanity, transforming our economic reality. With each positive life-affirming transaction, we jointly create a new and conscious economy that will sustain the future of human evolution and transformation.
 
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.
 

2013 LOHAS Marketing Megatrends

Wednesday, January 23, 2013 by

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.

"The Next 20 Years of Sustainable Business" by Aron Cramer of BSR

Monday, December 31, 2012 by

[ 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 20th 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 21st 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

Wednesday, December 19, 2012 by

socially responsible investingLooking 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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Marketing Biobased Content Credibly

Monday, December 17, 2012 by

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

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

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

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

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

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

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

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

Marketing Challenges of Biobased

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

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

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

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

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

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

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

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


Success Strategies for Marketing Biobased Products and Packaging

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

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

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

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

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

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

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

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

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

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