Presented at AIGA Portland's ReSource: Green Design Expo event on April 22, 2010

1. Or: How I learned to stop worrying and love climate change!

2. Will Villota
AIGA Portland
RESOURCE: Green Design Expo
April 22, 2010

4. • Nonprofit self‐funded through the sale of:
– Renewable Energy CerOficates (RECs)
– Carbon Offsets
– Water RestoraOon CerOficates (WRCs)
• 100% of Net Revenue is Reinvested in:
– Watershed RestoraOon
– Solar 4R Schools
• Visit www.b‐e‐f.org to measure and offset
your carbon and water footprints

5. Today
• Climate Change Concern
• LOHAS SegmentaOon
• 4 Lifestyle Choice Examples
• Inspiring consumers to acOon

6. Climate Change?

7. Concern Over Climate Change is Declining
NaOonal MarkeOng InsOtute 2009 LOHAS Study

8. The Problem with Climate Change
• Lacks a Human Face
• Does Not Violate Moral SensibiliOes
• Is Not Perceived as an Immediate Threat
• Proceeds at a Gradual Rate
Source: Dan Gilbert, Hedonic Psychology Laboratory at Harvard University

9. It’s the End of The World as We Know It!

10. We seem to have a “finite pool of worry.”
It’s the
Economy
Stupid!
Source: Elke Weber and Center for Research on Environmental Decisions (CRED)

11. Customer Segmentation

12. Lifestyle of Health And Sustainability
(LOHAS)
Source: Natural MarkeOng InsOtute 2009 LOHAS Study

13. Corporate Social Responsibility
Source: Natural MarkeOng InsOtute 2009 LOHAS Study

14. Sustainability in Purchase Decisions
• 54% of shoppers consider sustainability to be one of
their decision‐making factors
– 2008 Deliobe GMA Sustainability Consumer study
• 41% of consumers have chosen a parOcular brand
because of its environmental pracOces
– The Climate Group
• 54% of “boomers” (40 million people) – have actually
purchased environmentally‐safe products
– Focalyst and AARP
• 30% of consumers avoid buying products from
corporaOons they don’t feel are environmentally
responsible
– 2008 GfK Roper Green Gauge study

17. “In Which product categories are you
searching for greener products?”
• Home cleaning products: 75%
• Food & Beverage: 65%
• Personal Care Products: 55%
• Appliances: 47%
• Home Improvement: 46%
• Automobiles: 32%
Source: Eco Pulse 2009 Report

18. Me, My Family, My Pets, My Home
Organic Foods Natural/Organic Cleaners
• $24.9 billion in sales in 2008 • Sales up 35% to $737
• 3.47% of U.S. food sales million in 2008
Source: The Organic Trade AssociaOon, NutriOon Business Journal

19. In 2009, there were about 1,500 new product
launches that featured claims such as “sustainable”
“environmentally friendly” and “eco‐friendly”
‐ David Almy, Greenbiz.com

20. Renewable Energy

21. 25% of uOliOes servicing 50% of Americans offer
a Green Power opOon…but…

22. NaOonal Energy Mix
Renewable
Energy =
3%
Source: EPA

23. Green Power ParOcipaOon Rates
Source: NREL

24. Even LOHAS Consumers Lag
Source: Natural MarkeOng InsOtute 2009 LOHAS Study

25. Are the Benefits Not Clear?
Source: Natural MarkeOng InsOtute 2009 LOHAS Study

26. Is Price the Problem?
Source: Natural MarkeOng InsOtute 2009 LOHAS Study

27. Energy Efficiency

28. If given $10,000 what home
improvements would you make?
Last Year This Year
• Energy‐efficient • Refinish kitchen or
improvements were the bathroom 37% (compared
most common answers. to 26% last year)
• Replace carpet or add
hardwood or Ole 33%
(compared to 25% last year)
Source: The Shelton Group

29. “Why is it important to reduce energy
consumpOon?”
• To reduce my bills • To lessen my impact on
the environment
73% 26%
Source: Earthsense’s Eco‐Insights

30. Home Energy Audits
20% 10%
Express Interest Follow Through
Source: The Shelton Group

31. Barriers
• Dollar savings are not big enough.
• Impact they can make is so small
• Future benefits to their children are so small
Source: The Shelton Group, Jonah Lehrer, author of “How We Decide”

32. Transportation

33. 10 Years & 1.5 million Hybrid…
but sOll only 3%
Source: edmunds.com

34. Reported Behavior Changes
Source: Natural MarkeOng InsOtute 2009 LOHAS Study

35. How Can We Inspire More
Consumers to Take AcOon?

36. 4 Message OpOons

37. Benevolence
Save the Environment

38. The Single‐AcOon Bias
If I do this ONE thing, I’m off the hook…
• The mistake is to perceive or communicate the
call to acOon as “Change a Light Bulb.” Really
the call is “Change a light bulb and undertake
a dialog with your neighbors or circle of
influence about changing theirs as well.”
Source: Elke Weber and Center for Research on Environmental Decisions (CRED)

39. Economic
Save Money

40. Loss is a Beber MoOvator than Gain
• If you insulate your • If you fail to insulate
home fully you will save your home fully you will
50 cents per day. lose 50 cents a day
everyday.
Source: Robert Cialdini, Ph.D.

41. Social Norms
Don’t Be Leq Out

42. Cialdini’s 5 Principles of Persuasion
• Reciprocity
• Scarcity
• Authority
• Commitment & Consistency
• Consensus & Liking

43. Consensus
(DescripOve Social Norm)
We follow the lead of others like us.

44. The Power of Social Norms
• Benevolence
– Reuse your towels to help save the environment.
• Social Norm
– Join your fellow guests in helping to save the
environment. Almost 75% parOcipate.
– The majority of guests that stayed in this room
have reused their towels.

45. Summary
• Avoid ApocalypOc Messages
• Beware the single‐acOon bias
• Loss outweighs Gains
• Leverage social norms