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Present
Sustainable Marketing is the Future

                  FutureM
             October 24, 2012
                 Beth Zonis

         @bethzonis   #ecomarketing
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?




                 10/24/2012        Future M: Sustainable Marketing is the Future   2
Agenda

•   Introductions
•   Definitions
•   Why Sustainable Marketing
•   What do you need to know?
•   What can you do to make a difference?




             10/24/2012      Future M: Sustainable Marketing is the Future   3
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




               10/24/2012        Future M: Sustainable Marketing is the Future   4
Have you ever bought a product
    because it was green?




   10/24/2012   Future M: Sustainable Marketing is the Future   5
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.




            10/24/2012     Future M: Sustainable Marketing is the Future   6
Sustainability is environmental, economic and social
        well-being for today and tomorrow




International Institute for Sustainable Development



                        10/24/2012                    Future M: Sustainable Marketing is the Future   7
Everyone should do Sustainable Marketing!

Every marketing decision
can be optimized with
respect to profits, the
natural environment, and
human well-being.




             10/24/2012    Future M: Sustainable Marketing is the Future   8
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


               10/24/2012          Future M: Sustainable Marketing is the Future   9
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


           10/24/2012        Future M: Sustainable Marketing is the Future   10
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



                             10/24/2012                     Future M: Sustainable Marketing is the Future   11
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

                         10/24/2012                  Future M: Sustainable Marketing is the Future   12
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



                         10/24/2012   Future M: Sustainable Marketing is the Future   13
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




                       10/24/2012                 Future M: Sustainable Marketing is the Future   14
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?




                10/24/2012      Future M: Sustainable Marketing is the Future   15
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




              10/24/2012     Future M: Sustainable Marketing is the Future   16
THANK YOU!


             Beth Zonis
  Principal and Founder
    Eco Marketing LLC
www.ecomarketingonline.com
  beth.zonis@gmail.com
     617-501-9660



10/24/2012        Future M: Sustainable Marketing is the Future   17
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
“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
20
Measuring and Reporting

• Annual Sustainability Reports
• Carbon Disclosure Project
• Dow Jones Sustainability Index
• Global Reporting Initiative
  (GRI)
• GHG Greenhouse Gas Protocol




                                         21
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
Major organizations are focusing on Sustainability
            and reducing emissions




                                                 23
Storytelling on the website




                              24
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
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
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
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
29
.
    Corporate Strategic Partnerships




                                       30
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
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
Local Volunteer Opportunities




Solar Now solarnow.org




                                             33
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
Laura Koss
Senior Attorney
Federal Trade Commission
OVERVIEW
 FTC and Advertising Law
 The Green Guides
  • The Basics
  • Claims
  • Enforcement
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
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
GREEN GUIDES REVIEW
 Public Comment
 Workshops
 Carbon Offsets/REC
  • Green Packaging
  • Green Buildings and Textiles
 Consumer Perception Research
GENERAL GREEN GUIDES PRINCIPLES
 Consumer perception controls.
 Be specific.
 Don’t overstate attributes.
 Use clear, prominent qualifications.
QUALIFICATIONS SHOULD BE:
 Clear
 Prominent
 Understandable
  • Plain language.
  • Sufficiently large type.
  • In close proximity
TYPES OF MARKETING CLAIMS
   General benefits, Certifications
   Degradable
   Compostable
   Recycled content, Recyclable
   Source reduction
   Free-of, Non-toxic
   Ozone safe/ozone friendly
   Renewable energy, materials
   Carbon Offsets
   Refillable
FTC CONSUMER PERCEPTION STUDY
 Internet study - Harris Interactive
  • General (“green,” “eco-friendly”)
  • Sustainable
  • Renewable (“made with renewable
    energy/materials”)
  • Carbon neutral/Carbon offset
GENERAL BENEFIT CLAIMS - ORIGINAL GUIDES
 Suggest wide-reaching environmental benefits.
 Difficult to substantiate.
 Avoid or qualify.
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.
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.
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!
GENERAL BENEFIT CLAIMS
 Example of recent action
“BAMBOO FIBER” TEXTILES – ENFORCEMENT ACTION

 Actually rayon – Not environmentally friendly process
 Not biodegradable




                                            Credit: poorandpretty.com
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
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.
NEW: CERTIFICATIONS/LOGOS/SEALS
NEW: CERTIFICATIONS/LOGOS/SEALS
 Endorsements
 Need substantiation
 General environmental benefit claim
 Clear and prominent qualification:
  • Refers only to specific, limited environmental benefit
.
GreenLogo For Environmental
Excellence
.
ACME Paint’s Own GreenLogo
For Environmental Excellence
 • Low VOCs
QUALIFYING A MULTI-ATTRIBUTE CLAIM
 Virtually all products impact the environment. For
 details on which attributes we evaluated, go to
 www.123
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.”
“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.
NEW: FREE-OF CLAIMS
 May still be deceptive even if free of a substance


 Trace amounts may be okay
NEW: NON-TOXIC
 “ . . . likely conveys that the [item] is non-toxic both for
 humans and for the environment generally.”
NEW: RENEWABLE MATERIALS
 Tell which material used; why renewable.


 Qualify if entire product (less incidentals) is not made
  with renewable materials.
NO GUIDANCE
 Sustainable
 Organic
 Natural
MORE INFORMATION?




     http://business.ftc.gov/advertising-and-
     marketing/environmental-marketing

     www.ftc.gov
     877-FTC-help
     lkoss@ftc.gov
Green chemistry as a business
         advantage
       Amy S. Cannon, Ph.D.
         Beyond Benign
      www.beyondbenign.org
$


    65
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
Design Criteria
•   Solubility
•   Melting Point
•   Glass transition temperature
•   Mechanical Properties (Tensile Strength, Modulus, Elongation)
•   Refractive Index
•   Surface Tension




                                                               67
Design Criteria
•   Solubility
•   Melting Point
•   Glass transition temperature
•   Mechanical Properties (Tensile Strength, Modulus, Elongation)
•   Refractive Index
•   Surface Tension
•   Toxicity
•   Environmental Impact




                                                               68
Understanding Hazard
• Intrinsic nature of hazard
• Reduced hazard better than reduced exposure
• Unrelated hazards



     Risk = Exposure x Hazard


                                            69
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)
Green Chemistry is about…
•   Shifting roles
•   Design
•   Understanding Intrinsic Hazard
•   Changing education of chemists
•   Reducing costs
•   Enhancing performance
•   Innovation

                                     71
Green Chemistry is about…
   Shifting roles
   Design
   Understanding intrinsic hazard
   Changing education of chemists
•   Reducing costs
•   Enhancing performance
•   Innovation




                                     72
Reducing Costs




                 73
The cost of using hazardous
                  materials
•   Storage
•   Transportation
•   Treatment
•   Disposal
•   Regulatory Costs
•   Liability
•   Worker Health and Safety
•   Corporate Reputation
•   Community Relations
•   New Employee Recruitment

                                       74
Environmental Regulations

                 120

                 110

                 100
Number of Laws




                  90

                  80

                  70

                  60

                  50

                  40

                  30

                  20

                  10

                   0
                   1870 1880   1890   1900   1910   1920   1930   1940   1950   1960   1970   1980   1990   2000   75
Environmental Regulations
                                                                                                                                   EPACT
                                                                                                                                   FFCA
                                                                                                                                   CERFA
                                                                                                                                   CRAA
                                                                                                                                   PPA
                                                                                        AMFA                                       PPVA
                                                                                      ARPAA                                        IEREA
                                                                                         AJA                           AQ          ANTPA
                 120                                                                 ASBCAA                            A           GLCPA
                                                                                  ESAA-AECA                                        ABA
                                                                                       FFRAA                                       CZARA
                                                                                     FEAPRA                                        WRDA
                 110                                                                     IRA                                       EDP
                                                                                      NWPAA                          NAWCA         OPA
                                                                               CODRA/NMSPAA                                        RECA
                                                                                       FCRPA                                       CAAA
                                                                                     MMPAA                                         GCRA
                 100                                                                                                               GLFWRA
                                                                                           APA        RCRAA         WQA            HMTUSA
                                                                                          SWDA         WLDI                        NEEA
Number of Laws




                                                                                        CERCLA
                  90                                                                     CZMIA                NWPA                 SDWAA
                                                                                       COWLDA                                      SARA
                                                                                         FWLCA
                                                                                       MPRSAA                                      BLRA
                  80                                                                      CAAA             ARPA                    ERDDAA
                                                                                           CWA                         MPRSAA      EAWA
                                                                                         SMCRA                                     NOPPA
                                                                                         SWRCA                                     PTSA
                  70                                                                     SDWAA                                     UMTRCA
                                                                                                                                   ESAA
                                                                                          BLBA                                     QGA
                                                                                        FWPCA       HMTA                           NCPA
                  60                                                                    MPRSA
                                                                                         CZMA   ESA                                TSCA
                                                                                           NCA TAPA                                FLPMA
                                                                                         FEPCA                                     RCRA
                                                                                          PWSA                                     NFMA
                  50                                                                     MMPA                       FRRRPA         CZMAA
                                                                                                                    SOWA
                                                                                                                    DPA            NEPA
                                                                                    AQA                                            EQIA
                  40                                                                FOIA          FCMHSA                           CAA
                                                                                                                                   EPA
                                                                                   WRPA                                            EEA
                                                                                   AFCA                                            OSHA
                  30                                                                                                               FAWRAA
                                                                                    FHSA                                           NPAA
                                                                                  NFMUA                           WSRA
                                                              TA                                                  EA
                                                            FWCA       AEPA   FIFRA PAA            NHPA           RCFHSA
                  20                                         BPA
                                                                                                WLDA
                                                 WA                                          FWCAA
                                             NBRA     NPS      MBCA         FAWRA
                                                 IA                                        FWA
                                      RHA   AA                           NLRA           AEA
                  10                                                     WPA
                       YA

                   0
                   1870 1880   1890    1900    1910     1920    1930   1940     1950       1960     1970     1980     1990      2000        76
More environmentally
                    benign than alternatives




 Perform better                                More economical
than alternatives                              than alternatives




                                                                   77
Safety




                Green
              Chemistry


Performance               Cost




                                 78
Green Chemical Market by Region,
   World Markets: 2011-2020




                                   79
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
Warner Babcock Institute for Green Chemistry




                                               81
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
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
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
Thank you!

 Amy_Cannon@beyondbenign.org

     www.beyondbenign.org

www.greenchemistrycommitment.org



                                   85
Sustainability Credibility
 3rd Party Certification and Marketing

           Mike Enberg
   e-Stewards Enterprise Director
        menberg@ban.org
Value of 3rd Party Certification

•   Decreased Information Costs for Customers
•   Increased Assurance of Consistent Quality
•   Helps Instill Better Management and Practices
•   Market Differentiation



                                               87
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
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
Lesson Learned
How to engage companies and individuals in a
     sustainability marketing program.


              A.I.D.A.
91
92
In USA: 80% delivered to “recyclers” or from
 unsubsidized collection events are exported




                                          93
Exporting Harm




                 94
The Digital Dump
                   95
96
And it comes from your desktop.




                                  97
98
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
100
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
3rd-Party, Independent
Environmental Certifications


     Risk Mitigation
 Reward Maximization

                               102
e-Stewards Enterprises Today
          (partial list)




                               103
The End-Product of
                                       3rd-Party
                                    Certifications




Kai Loeffelbein
Unicef’s Photo of the Year 2011




             Change
                                                   104
What You Can Do
www.e-stewards.org

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Sustainable Marketing is the Future

  • 1. Present Sustainable Marketing is the Future FutureM October 24, 2012 Beth Zonis @bethzonis #ecomarketing
  • 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? 10/24/2012 Future M: Sustainable Marketing is the Future 2
  • 3. Agenda • Introductions • Definitions • Why Sustainable Marketing • What do you need to know? • What can you do to make a difference? 10/24/2012 Future M: Sustainable Marketing is the Future 3
  • 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 10/24/2012 Future M: Sustainable Marketing is the Future 4
  • 5. Have you ever bought a product because it was green? 10/24/2012 Future M: Sustainable Marketing is the Future 5
  • 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. 10/24/2012 Future M: Sustainable Marketing is the Future 6
  • 7. Sustainability is environmental, economic and social well-being for today and tomorrow International Institute for Sustainable Development 10/24/2012 Future M: Sustainable Marketing is the Future 7
  • 8. Everyone should do Sustainable Marketing! Every marketing decision can be optimized with respect to profits, the natural environment, and human well-being. 10/24/2012 Future M: Sustainable Marketing is the Future 8
  • 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 10/24/2012 Future M: Sustainable Marketing is the Future 9
  • 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 10/24/2012 Future M: Sustainable Marketing is the Future 10
  • 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 10/24/2012 Future M: Sustainable Marketing is the Future 11
  • 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 10/24/2012 Future M: Sustainable Marketing is the Future 12
  • 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 10/24/2012 Future M: Sustainable Marketing is the Future 13
  • 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 10/24/2012 Future M: Sustainable Marketing is the Future 14
  • 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? 10/24/2012 Future M: Sustainable Marketing is the Future 15
  • 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 10/24/2012 Future M: Sustainable Marketing is the Future 16
  • 17. THANK YOU! Beth Zonis Principal and Founder Eco Marketing LLC www.ecomarketingonline.com beth.zonis@gmail.com 617-501-9660 10/24/2012 Future M: Sustainable Marketing is the Future 17
  • 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
  • 20. 20
  • 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
  • 23. Major organizations are focusing on Sustainability and reducing emissions 23
  • 24. Storytelling on the website 24
  • 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
  • 29. 29
  • 30. . Corporate Strategic Partnerships 30
  • 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
  • 33. Local Volunteer Opportunities Solar Now solarnow.org 33
  • 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
  • 42. TYPES OF MARKETING CLAIMS  General benefits, Certifications  Degradable  Compostable  Recycled content, Recyclable  Source reduction  Free-of, Non-toxic  Ozone safe/ozone friendly  Renewable energy, materials  Carbon Offsets  Refillable
  • 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!
  • 48. GENERAL BENEFIT CLAIMS  Example of recent action
  • 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.
  • 53. NEW: CERTIFICATIONS/LOGOS/SEALS  Endorsements  Need substantiation  General environmental benefit claim  Clear and prominent qualification: • Refers only to specific, limited environmental benefit
  • 55. . ACME Paint’s Own GreenLogo For Environmental Excellence • Low VOCs
  • 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.
  • 62. NO GUIDANCE  Sustainable  Organic  Natural
  • 63. MORE INFORMATION? http://business.ftc.gov/advertising-and- marketing/environmental-marketing www.ftc.gov 877-FTC-help lkoss@ftc.gov
  • 64. Green chemistry as a business advantage Amy S. Cannon, Ph.D. Beyond Benign www.beyondbenign.org
  • 65. $ 65
  • 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
  • 68. Design Criteria • Solubility • Melting Point • Glass transition temperature • Mechanical Properties (Tensile Strength, Modulus, Elongation) • Refractive Index • Surface Tension • Toxicity • Environmental Impact 68
  • 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
  • 74. The cost of using hazardous materials • Storage • Transportation • Treatment • Disposal • Regulatory Costs • Liability • Worker Health and Safety • Corporate Reputation • Community Relations • New Employee Recruitment 74
  • 75. Environmental Regulations 120 110 100 Number of Laws 90 80 70 60 50 40 30 20 10 0 1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 75
  • 76. Environmental Regulations EPACT FFCA CERFA CRAA PPA AMFA PPVA ARPAA IEREA AJA AQ ANTPA 120 ASBCAA A GLCPA ESAA-AECA ABA FFRAA CZARA FEAPRA WRDA 110 IRA EDP NWPAA NAWCA OPA CODRA/NMSPAA RECA FCRPA CAAA MMPAA GCRA 100 GLFWRA APA RCRAA WQA HMTUSA SWDA WLDI NEEA Number of Laws CERCLA 90 CZMIA NWPA SDWAA COWLDA SARA FWLCA MPRSAA BLRA 80 CAAA ARPA ERDDAA CWA MPRSAA EAWA SMCRA NOPPA SWRCA PTSA 70 SDWAA UMTRCA ESAA BLBA QGA FWPCA HMTA NCPA 60 MPRSA CZMA ESA TSCA NCA TAPA FLPMA FEPCA RCRA PWSA NFMA 50 MMPA FRRRPA CZMAA SOWA DPA NEPA AQA EQIA 40 FOIA FCMHSA CAA EPA WRPA EEA AFCA OSHA 30 FAWRAA FHSA NPAA NFMUA WSRA TA EA FWCA AEPA FIFRA PAA NHPA RCFHSA 20 BPA WLDA WA FWCAA NBRA NPS MBCA FAWRA IA FWA RHA AA NLRA AEA 10 WPA YA 0 1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 76
  • 77. More environmentally benign than alternatives Perform better More economical than alternatives than alternatives 77
  • 78. Safety Green Chemistry Performance Cost 78
  • 79. Green Chemical Market by Region, World Markets: 2011-2020 79
  • 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
  • 81. Warner Babcock Institute for Green Chemistry 81
  • 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
  • 85. Thank you! Amy_Cannon@beyondbenign.org www.beyondbenign.org www.greenchemistrycommitment.org 85
  • 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.
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  • 93. In USA: 80% delivered to “recyclers” or from unsubsidized collection events are exported 93
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  • 97. And it comes from your desktop. 97
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  • 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
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  • 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
  • 102. 3rd-Party, Independent Environmental Certifications Risk Mitigation Reward Maximization 102
  • 103. e-Stewards Enterprises Today (partial list) 103
  • 104. The End-Product of 3rd-Party Certifications Kai Loeffelbein Unicef’s Photo of the Year 2011 Change 104
  • 105. What You Can Do www.e-stewards.org