This is a compilation of 5 presentations given at the FutureM conference in Boston on October 24, 2012. The speakers were: Beth Zonis of Eco Marketing, Lisa Lillelund of Mango Networks, Laura Koss of the FTC, Amy Cannon of Beyond Benign, and Mike Enberg of e-Stewards.
2. We have only one planet, but we're using the
resources of five or more
Climate change is very real. Freak storms are increasingly
common. While there are water shortages in some regions, there
are floods in others. In response, corporations are adopting
sustainability practices, and products are marketed as "green,"
"eco-friendly," "environmentally friendly," and "energy efficient."
What does it really mean to be sustainable? How can people
determine which products are truly better and greener?
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3. Agenda
• Introductions
• Definitions
• Why Sustainable Marketing
• What do you need to know?
• What can you do to make a difference?
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4. Who we are
• Beth Zonis (moderator) - Eco Marketing
• Lisa Lillelund - Mango Networks
• Laura Koss - Federal Trade Commission
• Amy Cannon - Beyond Benign
• Mike Enberg - Basel Action Network
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5. Have you ever bought a product
because it was green?
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6. AMA uses sustainability language
Marketing is the activity, set
of institutions, and processes
for creating, communicating,
delivering, and exchanging
offerings that have value for
customers, clients, partners,
and society at large.
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7. Sustainability is environmental, economic and social
well-being for today and tomorrow
International Institute for Sustainable Development
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8. Everyone should do Sustainable Marketing!
Every marketing decision
can be optimized with
respect to profits, the
natural environment, and
human well-being.
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9. Extreme weather is increasingly costly
• 1980-1995
– 46 disasters > $1 billion in
damages
– Total losses: $339 billion
• 1996-2011
– 87 disasters > $1 billion in
damages
– Total losses: $541 billion
National Geographic, September 2012
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10. Corporations are doing something about it
81% of the world's largest
public companies that
report their greenhouse
gas (GHG) emissions data
and sustainability
strategies now include
physical threats and
disruptions from climate
change
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11. Customers care about sustainability
• Approx. 50% of people consider a company’s
environmental reputation as they make product
choices
• 50% of Americans can name a product that they’ve
chosen or dropped as a result of learning more
about a company’s environmental record (up from
20% in 2008)
• Millennials – the largest demographic group outside
of boomers – are 2x more likely to consider a
company’s environmental record before making a
purchase
Source: Green marketing stats that justify storytelling, Suzanne
Shelton, GreenBiz.com, August 2012
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12. Sustainability has short-term benefits
• Water and Energy
Savings
• Increased Property
Values
• Improved Employee
Attendance
• Increased Employee
Productivity
• Sales Improvements
5 Economic Benefits of Green Building, EcoWorld,
August 2009 Green roof on Boston City Hall
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13. Sustainability is good in the long term too
Corporate Sustainability creates long-term
shareholder value by embracing opportunities and
managing risks deriving from economic, environmental
and social developments.
Dow Jones Sustainability Index
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14. As marketers we can make a difference…
… not just in promoting our
companies, products and
services – but in shaping
the conversation about
environmental and social
sustainability.
Sustainable Marketing, by Diane Martin and John
Schouten
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15. Today we’ll discuss
• Sustainability – What does it mean to you?
• The Green Guides – Can you back up your green claims?
• Green Chemistry – Do you know where everyday products
come from and what’s in them?
• Electronic Waste – Where do your electronics go when you’re
done with them?
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16. While we’re talking, please think about
• The value of sustainability to you and your
organization
• The stories you can tell
• What you can do to make a difference
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17. THANK YOU!
Beth Zonis
Principal and Founder
Eco Marketing LLC
www.ecomarketingonline.com
beth.zonis@gmail.com
617-501-9660
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18. Doing Well by Doing Good
Sustainability Initiatives
Enhance your Brand Reputation
Strategic Partnerships
Storytelling
Lisa Lillelund
MANGO Networks - Sustainability Advisor
lisa@mangonetworks.com
www.mangonetworks.com October 24th, 2012
19. “Today’s CEOs are more committed than ever to
creating a sustainable business.”
• 93 % of Global Compact
CEOs see sustainability as
important to their future
success.
• 72 % of executives cite
“strengthening brand, trust
and reputation” as the
strongest motivator for
taking action on
sustainability issues.
Source: UN Global Compact-Accenture CEO
Study 2010, 766 CEOs surveyed
19
21. Measuring and Reporting
• Annual Sustainability Reports
• Carbon Disclosure Project
• Dow Jones Sustainability Index
• Global Reporting Initiative
(GRI)
• GHG Greenhouse Gas Protocol
21
22. Awards and Recognition
• Ranked 1st in the Dow
Jones Sustainability World
Index
• “Environmental Contributor
of the Year” Award for the
2010 Global Water Awards
22
25. Internal focus areas for Sustainability Initiatives
Zero Waste Marketing
Transportation
Facility GHG Core product Water
Emissions Milk
Sustainable
Packaging Sustainable Green
Ingredients Chemistry
25
(c) 2011. Stonyfield Farm, Inc. All Rights Reserved
26. Environmental goals:
World’s biggest company • Cut carbon emissions 25%
$ 135 billion in annual sales • To be supplied 100% by
renewable energy,
Over 100,000 global suppliers • Create zero waste
• Reduce energy use by 20-30% in
the 6,600 big-box stores
• 180 renewable energy projects,
second largest in the U.S. for on
site renewable energy production
26
27. Sustainability Product Index
15 Questions for Suppliers, with examples below
1. Energy and Climate: Reducing Energy Costs and Greenhouse Gas
Emissions
• Have you measured your corporate greenhouse gas emissions?
2. Material Efficiency: Reducing Waste and Enhancing Quality
• If measured, please report the total amount of solid waste generated from the
facilities that produce your product(s) for Walmart for the most recent year
measured.
3. Natural Resources: Producing High Quality, Responsibly Sourced
Raw Materials
• Have you established publicly available sustainability purchasing guidelines for
your direct suppliers that address issues such as environmental, compliance,
employment practices and product/ingredient safety?
4. People and Community: Ensuring Responsible and Ethical
Production
• Do you know the location of 100 percent of the facilities that produce your
product(s)? 27
28. Corporate Strategic Partnerships
.
Water Recycling
Global musical artist and
producer will.i.am and The
Coca-Cola Company are
collaborating with other iconic
brands to inspire a global
movement with the launch of
EKOCYCLE™ --
28
31. Strategic Partnerships
• $10 of your daily room
rate is donated back to the
Nature Conservancy
• A tree will be planted on
your behalf as part of the
Plant A Billion Trees
Campaign
• You will also receive a
15% discount for each
night of your stay
31
32. Corporate Citizenship Program
WATER FOR PEOPLE
MERCY CORPS Achievement by the Numbers
• $ 1 M + dollars raised by employees
for our non-profit partners through
CHINA WOMEN’S
DEVELOPMENT FOUNDATION
2010, including company match
• 1.3 M people impacted worldwide
AVINA
since 2008
• 2,200 local water projects completed
PLANET WATER
FOUNDATION
32
34. Thank You!
Lisa Lillelund
MANGO Networks
Sustainability Advisor
lisa@mangonetworks.com
www.mangonetworks.com
978-590-9212
Slides designed with assistance from www.norvelljefferson.com
34
36. OVERVIEW
FTC and Advertising Law
The Green Guides
• The Basics
• Claims
• Enforcement
37. SEC. 5, FTC ACT (15 U.S.C. §§ 41-58)
Tell the truth.
Have substantiation for:
• Express and implied claims.
Competent and reliable scientific evidence
38. GREEN GUIDES BASICS
How do consumers understand claims?
Apply to all forms of marketing claims
• Business to consumer
• Business to business
Not performance standards or eco-labels
39. GREEN GUIDES REVIEW
Public Comment
Workshops
Carbon Offsets/REC
• Green Packaging
• Green Buildings and Textiles
Consumer Perception Research
40. GENERAL GREEN GUIDES PRINCIPLES
Consumer perception controls.
Be specific.
Don’t overstate attributes.
Use clear, prominent qualifications.
41. QUALIFICATIONS SHOULD BE:
Clear
Prominent
Understandable
• Plain language.
• Sufficiently large type.
• In close proximity
43. FTC CONSUMER PERCEPTION STUDY
Internet study - Harris Interactive
• General (“green,” “eco-friendly”)
• Sustainable
• Renewable (“made with renewable
energy/materials”)
• Carbon neutral/Carbon offset
44. GENERAL BENEFIT CLAIMS - ORIGINAL GUIDES
Suggest wide-reaching environmental benefits.
Difficult to substantiate.
Avoid or qualify.
45. STUDY: “GREEN” OR “ECO-FRIENDLY”
52% - Product had specific green attributes.
• Made with recycled materials – 61%
• Recyclable – 59%
• Made with renewable materials – 54%
• Biodegradable – 53%
27% - Product had no negative environmental impact.
46. FINAL GUIDES – BEWARE GENERAL CLAIMS
“Highly unlikely marketers can substantiate all
reasonable interpretations of these claims.”
Marketers should not make unqualified general
environmental benefit claims.
47. QUALIFICATIONS – USE CAUTION
Clear and prominent.
Limit claim to a specific benefit(s).
Evaluate trade-offs
No negligible benefits
Environmentally Improved;
Now with 30% less plastic!
49. “BAMBOO FIBER” TEXTILES – ENFORCEMENT ACTION
Actually rayon – Not environmentally friendly process
Not biodegradable
Credit: poorandpretty.com
50. DEGRADABILITY – QUALIFY UNLESS:
“Entire [item] will completely breakdown and return to
nature within a reasonably short period of time* after
customary disposal.”
*1 year for items entering solid waste stream
51. DEGRADABILITY
Unqualified degradable claims are deceptive for
products destined for landfills, incinerators, or
recycling facilities – products won’t decompose in a
reasonably short period of time.
56. QUALIFYING A MULTI-ATTRIBUTE CLAIM
Virtually all products impact the environment. For
details on which attributes we evaluated, go to
www.123
57. DISCLOSE MATERIAL CONNECTIONS
A “connection between the endorser and the seller of
the advertised product that might materially affect the
weight or credibility of the endorsement.”
58. “TESTED GREEN” – ENFORCEMENT ACTION
Sold environmental certifications
Claimed Tested Green was the “nation’s leading
certification program”
FTC alleged Tested Green never tested any of
companies it provided with certifications, and would
“certify” anyone willing pay a fee.
59. NEW: FREE-OF CLAIMS
May still be deceptive even if free of a substance
Trace amounts may be okay
60. NEW: NON-TOXIC
“ . . . likely conveys that the [item] is non-toxic both for
humans and for the environment generally.”
61. NEW: RENEWABLE MATERIALS
Tell which material used; why renewable.
Qualify if entire product (less incidentals) is not made
with renewable materials.
66. Chemists’ Roles in
Environmental Problems
• Historically, synthetic chemists have not played a
major role in the environmental movement.
• Green Chemistry identifies synthetic chemists as the
key practitioners in identifying, developing, and
implementing pollution prevention technologies.
66
67. Design Criteria
• Solubility
• Melting Point
• Glass transition temperature
• Mechanical Properties (Tensile Strength, Modulus, Elongation)
• Refractive Index
• Surface Tension
67
69. Understanding Hazard
• Intrinsic nature of hazard
• Reduced hazard better than reduced exposure
• Unrelated hazards
Risk = Exposure x Hazard
69
70. Science education…
• Non-science majors science course:
– Jam-packed with Environmental Science
• Chemistry major:
– No requirements in a Bachelor’s program
– No requirements in a Master’s program
– No requirement in a Ph. D. program
*ONLY ONE UNIVERSITY IN THE U.S. REQUIRES ANY
KNOWLEDGE OF TOXICITY OR ENVIRONMENTAL HAZARD!!!
*We are changing this: Green Chemistry Commitment
(www.greenchemistrycommitment.org)
71. Green Chemistry is about…
• Shifting roles
• Design
• Understanding Intrinsic Hazard
• Changing education of chemists
• Reducing costs
• Enhancing performance
• Innovation
71
72. Green Chemistry is about…
Shifting roles
Design
Understanding intrinsic hazard
Changing education of chemists
• Reducing costs
• Enhancing performance
• Innovation
72
80. Pfizer, Inc.: Re-design of Sertraline
(Zoloft)
• Use of 140 metric tons/year of titanium tetrachloride
• Generation of 440 metric tons/year of solid titanium
dioxide waste
• 150 metric tons/year of 35% HCl waste
• Need for 100 metric tons/year of 50% NaOH
• Dramatically reduced the number and volume of
solvents used
Presidential Green Chemistry Challenge Award 2002
80
82. Fabrication & Organic & Polymer
Environment
Physical Testing, Synthesis Biomaterials
& Toxicology
Lab Lab
Lab
Metal Oxide Research Labs
Analytical
Separations
Research Lab
and Coatings
Applications
Lab Supplies
Chemicals &
Lab
WBI Scientists
…
Microscopy & Office Space
Surface Analysis
Lab
X-ray Lab
Learning Particle Size & Surface Thermal Analysis & NMR Multi-use Chemistry
Center Characterization Lab Spectroscopy Lab Lab Lab
WBI Executive Office Space
Beyond Benign
Cafe
82
83. Increased Bioavailability for a
Parkinson’s Disease Drug
Ultra Low Cost Non-Toxic Solar
Nontoxic, Environmentally Benign Hair Coloring Water Based Non Toxic Photoresist
Cleaning Solutions
83
84. Why Green Chemistry?
Pfizer Inc.:
Through our Green Chemistry initiative, which is grounded in Paul Anastas and John
Warner's 12 Principles of Green Chemistry, we are dedicated to promoting the
selection and use of environmentally preferable chemicals, eliminating waste and
conserving energy.
It is integral to the way we do business and delivers sustainable, long-term profitability
through safer more efficient processes; increased product yield that are compatible
with protecting the environment; and the health and safety of our colleagues,
customers, and the communities where we live and work.
http://www.pfizer.com/responsibility/protecting_environment/greener_processes.jsp
84
86. Sustainability Credibility
3rd Party Certification and Marketing
Mike Enberg
e-Stewards Enterprise Director
menberg@ban.org
87. Value of 3rd Party Certification
• Decreased Information Costs for Customers
• Increased Assurance of Consistent Quality
• Helps Instill Better Management and Practices
• Market Differentiation
87
88. Branded! by Michael Conroy
“The opportunity [is] to
associate a company brand
with systems of third-party
independent certifications to
show – in ways that are
credible to a skeptical public
– that the company is
complying with the highest
standards for social and
environmental practices.”
88
89. Got e-Waste?
• This is a business problem – happily, it is one
with a solution.
• Your company, no matter how big or small,
can make a global difference.
• There are tangible benefits in doing so.
89
90. Lesson Learned
How to engage companies and individuals in a
sustainability marketing program.
A.I.D.A.
99. In this complicated and risky world…
A clear need for
Awareness in the market that much of what is called
“recycling” is dumping by another name.
To identify, promote and support those companies that choose
to recycle properly:
An accredited, independently audited certification program that is
principled but practical
A standard can provide companies and the public complete assurance
their spent electronics will not be dumped on developing countries
99
101. e-Stewards Enterprise Program
• The e-Stewards Enterprise program recognizes
and rewards companies, governments and
organizations that choose to recycle their
electronics responsibly.
• Engage the producers as well as the
processors
• “Leaders Lead.”
101