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Discovering the Value of Green Marketing for
  B2B: Green and the New Administration

      American Marketing Association
              June 30, 2009



                                               1
Summary Marketing Impacts
• The Administration wants to:
   –   Reduce environmental impacts from energy use
   –   Lower energy costs
   –   Use alternative energy
   –   Create green jobs
• B2B will have incentives to reduce and shift primarily
  through state, county, and city funds
• Public and governmental pressure to act more “green”
  will increase, but likely paced due to high costs
• Focus communications on what company has done to
  reduce energy consumption that will lower cost for them
  and ultimate consumer
                                                            2
Even in Democrat-Controlled Government,
   “Green” only 8% of the Stimulus - $60B




• Tax Cuts, State Funds, Relief (Jobs and
  Bailouts), Infrastructure, then “Green”
• Behind “Green” is College, Job Training,
  and Research
                                             3
70% of $60B going to Energy Efficiency
  Efforts in Business & Low-Income
                                        Energy Efficiency $59.5B
 Federal Energy-Efficiency Grants   Other Energy-Efficiency Grants   Smart Electric Grid   Renewable Energy Loan Guarantees




                                                  13%




                                                                                 37%

                                    18%




                                                        32%




                                                                                                                              4
H.R. 2454: The American Clean Energy and
               Security Act of 2009
• Sponsored by House Members:
    – Henry Waxman, California (D)
    – Edward Markey, Massachusetts (D)
•   Voted out of committee on May 21, 2009
•   Pending votes in House & Senate
•   Signature expected by President in Fall
•   Contains 4 Titles:
    –   I – Clean Energy
    –   II – Energy Efficiency
    –   III – Reducing Global Warming Pollution
    –   IV – Transitioning to a Clean Energy Economy

                                                       5
Clean Energy (Title I) is about technologies to
  reduce carbon footprint; but these are costly
• Investments in Clean Coal Technology,
  Electric Vehicles, Smart Grid (power),
  EnergyStar Appliances, and Clean Energy
  Innovation Centers
• Cap & Trade system on Carbon Emissions
• Marketing Impacts
   – Rising costs for suppliers
   – Expedited promotion of “clean” as a way to
     reduce carbon footprint
   – Energy conservation with Smart Grids and
     Appliances

                                                    6
Energy Efficiency (Title II) can reduce costs
         through DOE grants/incentives
• Business to benefit most from Title II
• Lighting, appliances, and prep
  equipment, transportation, & industrial
• Grants for efficiency/renewable
  programs to Non-profit, City/County,
  and Low-income organizations
• Marketing Impacts
   – Cost-savings can be significant
   – ROI payout needs to be reasonable
   – Lodi Winery earns $1MM in rebates (chillers,
     insulation, fermentation, and storage)

                                                    7
Reducing Global Warming Pollution (Title III)
       will regulate and provide targets
• Business leaders involved in heavy
  industry, deforestation, & energy
  commodities (derivatives) will be
  under intense pressure to reduce
• Reductions in plan:
   – 3% below 2005 by 2012
   – Up to 83% below 2005 by 2050
• Marketing Impacts
   – Public pressure
   – Public Relations

                                                  8
Transitioning to a Clean Energy Economy
       (Title IV) provides Assistance to Change
• Rebates for energy-intensive Industrial
  Sector (iron, steel, alum, cement, glass, pulp,
  paper, chemicals, ceramics)
• “Complicated” calculations for petroleum
  refineries
• Green jobs and training (cars & power)
• Energy tax credit for low-income
• U.S. private technology assistance and
  community efforts in developing countries
• Marketing Impacts
   – Enhance communications around energy use and
     new technologies
   – Demonstrate green job or assistance in
     developing countries

                                                    9
Summary Marketing Impacts
• The Administration wants to:
   –   Reduce environmental impacts from energy use
   –   Lower energy costs
   –   Use alternative energy
   –   Create green jobs
• B2B will have incentives to reduce and shift primarily
  through state, county, and city funds
• Public and governmental pressure to act more “green”
  will increase, but likely paced due to high costs
• Focus communications on what company has done to
  reduce energy consumption that will lower cost for them
  and ultimate consumer
                                                            10
Sources

• “H.R. 2454: The American Clean Energy Act of 2009: Short
  Summary,” Edison Electric Institute, May 18, 2009
• “Obama’s $787 billion Economic Stimulus Plan Mapped
  Out,” Financial INFOgraphics, June 2009
• “Incentives for Going Green,” Wines & Vines, June 2009
• “Overview and Impact of ARRA on Construction
  Spending,” Trane
• www.energy.gov




                                                             11
12

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AMA Green Marketing in the New Administration

  • 1. Discovering the Value of Green Marketing for B2B: Green and the New Administration American Marketing Association June 30, 2009 1
  • 2. Summary Marketing Impacts • The Administration wants to: – Reduce environmental impacts from energy use – Lower energy costs – Use alternative energy – Create green jobs • B2B will have incentives to reduce and shift primarily through state, county, and city funds • Public and governmental pressure to act more “green” will increase, but likely paced due to high costs • Focus communications on what company has done to reduce energy consumption that will lower cost for them and ultimate consumer 2
  • 3. Even in Democrat-Controlled Government, “Green” only 8% of the Stimulus - $60B • Tax Cuts, State Funds, Relief (Jobs and Bailouts), Infrastructure, then “Green” • Behind “Green” is College, Job Training, and Research 3
  • 4. 70% of $60B going to Energy Efficiency Efforts in Business & Low-Income Energy Efficiency $59.5B Federal Energy-Efficiency Grants Other Energy-Efficiency Grants Smart Electric Grid Renewable Energy Loan Guarantees 13% 37% 18% 32% 4
  • 5. H.R. 2454: The American Clean Energy and Security Act of 2009 • Sponsored by House Members: – Henry Waxman, California (D) – Edward Markey, Massachusetts (D) • Voted out of committee on May 21, 2009 • Pending votes in House & Senate • Signature expected by President in Fall • Contains 4 Titles: – I – Clean Energy – II – Energy Efficiency – III – Reducing Global Warming Pollution – IV – Transitioning to a Clean Energy Economy 5
  • 6. Clean Energy (Title I) is about technologies to reduce carbon footprint; but these are costly • Investments in Clean Coal Technology, Electric Vehicles, Smart Grid (power), EnergyStar Appliances, and Clean Energy Innovation Centers • Cap & Trade system on Carbon Emissions • Marketing Impacts – Rising costs for suppliers – Expedited promotion of “clean” as a way to reduce carbon footprint – Energy conservation with Smart Grids and Appliances 6
  • 7. Energy Efficiency (Title II) can reduce costs through DOE grants/incentives • Business to benefit most from Title II • Lighting, appliances, and prep equipment, transportation, & industrial • Grants for efficiency/renewable programs to Non-profit, City/County, and Low-income organizations • Marketing Impacts – Cost-savings can be significant – ROI payout needs to be reasonable – Lodi Winery earns $1MM in rebates (chillers, insulation, fermentation, and storage) 7
  • 8. Reducing Global Warming Pollution (Title III) will regulate and provide targets • Business leaders involved in heavy industry, deforestation, & energy commodities (derivatives) will be under intense pressure to reduce • Reductions in plan: – 3% below 2005 by 2012 – Up to 83% below 2005 by 2050 • Marketing Impacts – Public pressure – Public Relations 8
  • 9. Transitioning to a Clean Energy Economy (Title IV) provides Assistance to Change • Rebates for energy-intensive Industrial Sector (iron, steel, alum, cement, glass, pulp, paper, chemicals, ceramics) • “Complicated” calculations for petroleum refineries • Green jobs and training (cars & power) • Energy tax credit for low-income • U.S. private technology assistance and community efforts in developing countries • Marketing Impacts – Enhance communications around energy use and new technologies – Demonstrate green job or assistance in developing countries 9
  • 10. Summary Marketing Impacts • The Administration wants to: – Reduce environmental impacts from energy use – Lower energy costs – Use alternative energy – Create green jobs • B2B will have incentives to reduce and shift primarily through state, county, and city funds • Public and governmental pressure to act more “green” will increase, but likely paced due to high costs • Focus communications on what company has done to reduce energy consumption that will lower cost for them and ultimate consumer 10
  • 11. Sources • “H.R. 2454: The American Clean Energy Act of 2009: Short Summary,” Edison Electric Institute, May 18, 2009 • “Obama’s $787 billion Economic Stimulus Plan Mapped Out,” Financial INFOgraphics, June 2009 • “Incentives for Going Green,” Wines & Vines, June 2009 • “Overview and Impact of ARRA on Construction Spending,” Trane • www.energy.gov 11
  • 12. 12