Archive for November, 2008

This week, Greenpeace released their 10th version of the Guide to Greener Electronics, putting Apple behind competitors like HP, Dell and Acer. This comes despite Apple’s launch of a new campaign promoting “The new Macbooks. The world’s greenest family of notebooks.“.

Although there has been criticism regarding  Greenpeace’s methodologies in determining rankings, judgement by organizations like Greenpeace does appear to be moving the electronics industry in a more sustainable direction. More and more often, we are seeing consumers choosing products based on their perceived environmental policies, notwithstanding the economic downturn.

While Apple’s policies are up for debate, one thing is certain: Their green communications have put the topic on the table. Many companies have superior policies, but do little to advertise them - an oversight that will soon become a thing of the past as  3rd party validation or criticism plays a greater role in consumer behavior.

Alex Haythorne for The Element Agency in Vancouver

With the number of companies going green these days, it can be difficult to distinguish between those which promote genuine environmental initiatives and those which are simply greenwashing. Yet as stakeholder demand for environmental stewardship continues to rise, the divide between these two types of campaigns – the genuine and the phony – will become increasingly clear. Knowing the “best practices” for successful green marketing will prove essential for brand differentiation and increased accountability.

There are two simple keys to running a successful green marketing campaign. The first is know and engage your audience. This includes not only understanding the values and expectations of customers, investors, and other relevant stakeholders, but tailoring specific green initiatives to address those concerns and allow people to become involved.

This starts with understanding who your stakeholders are. “Stakeholders” can be anyone from corporate partners, shareholders, indirectly affected organizations (ie a company’s upstream or downstream) right down do the individual consumer. What environmental issues do they care about? Why? Are they “light green” (young, well-educated, tend to donate to the occasional environmental nonprofit) or “dark green” (opinion leaders attempting to lead the greenest lives possible)?

Once each of different types of stakeholders have been qualified, they must be strategically engaged and actively made aware of the organization’s initiatives and how they (the stakeholders) fit into the picture. Amazon.com, for example, has found success with their Green 3 module, which has users tell their friends which green products to buy via their profiles.

The second key to effective green marketing is to simply be honest. With the amount of empty environmental initiatives being promoted by companies today, not enough can be said for the value of clear, understandable initiatives, identifiable benchmarks, and transparency. Basically, walk the walk if you decide to talk the talk.

Of course, being honest about slashing your carbon footprint by half is more powerful than being honest about, say, planting a few trees outside your corporate headquarters. But what’s key is reporting accurate, measurable details, including tracking progress toward longer-term goals.

These days, simply publishing an annual report detailing how much recycled paper you use or how you’ll reduce truck idling will no longer cut it. In order to be truly transparent, green marketing campaigns must engage relevant stakeholders, establish clear benchmarks, and report progress toward those benchmarks with clarity and honesty.

By Grant Draper, Partner at The Element Agency in New York

By now everyone should know at least something about Canada’s oil sands:


- The largest industrial project in human history and growing rapidly

- The second largest oil reserves in the world (largest by some estimates)

- The largest supplier of oil to the U.S. (more than Saudi Arabia)

- Occupies an area larger than Florida

- The biggest machines in the world move enough earth every 2 days to fill Yankee Stadium

- The second fastest rate of deforestation after the Amazon basin

- The largest dam on the planet (which holds back tailings, not water)

- 3 times more carbon intensive to produce a barrel of oil from the oil sands than it is through conventional methods

- Emissions expected to double in 3 years

- Water contamination is killing people, plants and animals

- 70% of Canada’s oil is exported to America


Although energy security and economic activity are great for North America today, oil sands development in Canada comes at a cost for us all tomorrow.

For almost everyone, Northern Alberta is far away. The social issues that arise with large-scale industrial projects are a necessary evil; the people dying of diseases as a result of water contamination are First Nations (and are therefore basically invisible in our society); the #1 solution to global warming remains to ignore it (curiously similar to the solution to our wars in the Middle East- yes, fueled by Canadian oil). If we don’t see it, it doesn’t exist.

Yet the oil sands are the backbone of Canada’s economy and America’s strongest trading partner. The new President-Elect has vowed to pursue an energy independence mandate which will undoubtedly rely on Canadian oil. While that may be appear to be a positive thing as we enter a new era both politically and economically, our bad habits and shortsightedness are breeding hungry ghosts. The oil sands are too big an issue to hide anymore (even in the Boreal forest). The question comes up time and again: “How far are we willing to go to pursue our addiction?”

Alex Haythorne for The Element Agency in Vancouver

Today, Congressional Democrats began establishing a foundation for an enormous, two-year economic rescue plan that could cost as much as $700 billion.  The plan will be the largest job spending program since FDR and the New Deal - the idea is to create 2.5 million new jobs, many of which will be in sustainable industries.

Since the election almost a month ago, Americans have repeatedly heard President-elect Obama link the pending economic recovery to the creation of green jobs.  Investment in green jobs is seen as a prudent policy decision, as they have long term benefits that realize returns in the future unlike any other job category.  For instance, investing in a cleaner energy infrastructure will have a lasting impact that will reduce future negative externalities and their associated costs.  Green jobs have short-term effects that are well matched with the long-term needs of the economy.

It seems as though Washington is finally seeing an opportunity to shift the direction of the country towards a more sustainable future.  This is in part due to John Podesta, the President and CEO of the Center for American Progress, who is serving as Obama’s Transition Team Chief of Staff.  The Center For American progress recently sponsored a report on green jobs that outlines employment conditions in 12 individual states.  Clearly, Podesta is having a significant amount of influence in the planning phase for the new administration.

By Grant Draper, Partner at The Element Agency in New York

Greenness in the auto racing industry is an emerging trend, but is still in its early stages, lacking industry-wide organization. NASCAR, which leads the industry in revenue and fanbase, has traditionally been behind the ball regarding green initiatives compared to some of the other leagues. While the Indy Racing League’s Indy car series is already in its second year of running on 100% ethanol, for example, NASCAR only switched from leaded to unleaded fuels a couple of years ago.

Some of NASCAR’s recent moves, such as the recent hiring of Dr. Mike Lynch to head up its new green initiative, suggests that NASCAR might finally be on the right track when it comes to sustainability. According to Lynch, NASCAR has already begun implementing a number of new initiatives, such as the construction of two new buildings which both qualify for LEED certification and increasing the efficiency of each track’s recycling program.

NASCAR’s corporate partners, many of which are sustainability leaders in their respective industries, are also becoming more involved. Goodyear, the official tire of NASCAR, shreds and recycles nearly all the used stock car tires. Safety Kleen Systems, Inc, provides oil recycling and re-refining services to more than 200 NASCAR-sanctioned races a year (amounting to around 170,000 gallons annually). Waste Management, one of NASCAR’s key environmental partners,is also setting benchmarks to help NASCAR’s greening efforts, providing exclusive waste and recycling services to all tracks holding NASCAR Sprint Cup Series and NASCAR Nationwide Series races.

“My first priority is to meet with the key people in the industry to review and enhance the positive steps that are already being taken” Lynch explained. “The next step will be to execute a comprehensive green initiative that relies on innovation and change.”

By Dan Giacomini, at The Element Agency in New York.

As US automakers scramble to find their footing during the seemingly never ending financial crisis, Mark LaNeve, a Vice President at General Motors, wishes to change the perception of GM, one customer at a time by personally touting for the quality and fuel efficiency of GM’s vehicle line-up.  Steven Harris, another Vice President, has also published an open letter to Thomas Friedman, in response to his tough remarks about GM on Meet The Press.

Thinking about what lies ahead in Washington in the coming months,  treehugger has made a list of 7 executive orders President-Elect Obama should sign.

The Guardian’s Duncan Clark has noted that the governors of California, Wisconsin and Illinois have signed an agreement that could allow for carbon credits earned from forest protection in Brazil to be incorporated into US emissions trading schemes.

And just as it does every year, the Economist has launched its collection of predictions for the year ahead in The World in 2009.  This year, a special section on the environment was added, but a blogger at the Economist has already asked the question, will saving the planet have to wait until the recession is over?

By Michael Morris, at The Element Agency in New York

Wasting no time before his inauguration in January, President-Elect Obama addressed the country today with a YouTube video that outlines his plans to rescue the ailing US economy.  Included in his address was a plan to invest 150 billion dollars to “build an American green energy economy that will create 5 million new jobs”.  This certainly paints a bright future for companies banking their success on such initiatives, and comes at a time when many people have been speculating about the future of emerging green businesses.

By Michael Morris, at The Element Agency in New York

It was a busy week of speculation for most industries this week, especially for those operating in environmental sectors.

While many municipalities are having to restructure from the fall-out of the recession, the people over at treehugger have focused their attention on the town of Wilmington, Ohio, where a single lay-off decision by shipping giant DHL has resulted in 7,000 jobs being lost- or half the total jobs in the town.  Cited as the biggest layoff in US history, the town is trying to capitalize on its misfortune by becoming the first “Green Economic Zone”.

As the ideas surrounding corporate sustainability continue to become more mainstream, one of the GreenBiz bloggers cites the challenges facing companies whose financial constraints have limited their ability to adopt new strategies.

While it may be true that some companies are struggling to maintain their footing with corporate sustainability practices, a number of large companies including IBM, FedEx, and Office Depot released CSR reports this week.

And while many people are giddy about falling gas prices, the folks over at AlternativeEnergy.com are saying enjoy it while you can, because it’s not going to be here for long.

By Michael Morris, at The Element Agency in New York

Last week, the Puget Sound Business Journal organized an excellent Green Business Summit in Seattle.  Naturally, one of the main subjects was how “going green” works in an economy going downhill.

The answer relating to housing was provided by Bert Gregory, the head of Mithun, a design company focusing on “concept-based, environmentally intelligent design.”  He noted real estate projects are planned three to 10 years out and that many of the projects currently on the drawing board are LEED Silver certified — in fact, he sees this designation becoming the “price of entry” when the market starts to turn.

Gregory also said Generation Y is much more savvy and demanding on these matters and that a focus on carbon and water neutrality will be coming (although these ideas are still not particularly economical to execute).

The most interesting trend is also the one with the most far-reaching social and economic consequences: a move from the suburbs to urban environments for families — kind of a 1950s in reverse.  This means we will see less money spent on cars, oil and roads along with stagnant suburban property values.

So, when the housing market turns around it will be turning in a new direction, not back to where it was before the crash.

By Don Millar, President of The Element Agency

Everyday another company announces it is issuing its inaugural sustainability report.

It’s one more example of a trend that has been growing for years: companies embracing the idea that their standing in the marketplace is shaped by much more than the quality of the goods or services they produce.

Sustainability reports, designed to communicate a company’s sustainable practices and progress over time, have quickly become an essential tool for differentiating a company’s products and services in the marketplace and for reinforcing their brand identity.

Last week’s election of Barack Obama has generated hope and enthusiasm for the viability of a true paradigm shift toward a sustainable economy, in which sustainability reporting and corporate responsibility will prove even more crucial. 

But transparency isn’t the only benefit of sound reporting initiatives. Many more companies are leveraging their return on investment, with savvy marketing initiatives connected to their sustainable practices. For proof, look no further than the sustainability reporting prevalence among America’s most profitable corporations.

Implementing sustainable business practices into everyday operations is no longer considered pioneer or novel – it is a strategic investment for maintaining brand reputation and maximizing profitability.

By Don Millar, President of The Element Agency

The campaign might be over, but one debate still rages on: will aggressive investment in green energy really add the millions of jobs that President-elect Barack Obama and many others have promised? Of course, the naysayers will continue to say nay, but others are taking more thoughtful approaches to this question.
In September, the Center for American Progress released a new report by Dr. Robert Pollin and University of Massachusetts Political Economy Research Institute economists which directly investigated this question. According to the report, a swift initial investment of $100 billion in renewable energy strategies would, in just two years, create two million new jobs, reduce unemployment to 4.4 percent (from about 5.7 percent), reinvigorate the construction and manufacturing sectors, and help lower oil prices.

We all know that green investment is as inevitable as it is intelligent, so let’s put our differences aside and embrace this incredible job-generating opportunity.

By Dan Giacomini, at The Element Agency in New York.

What a week it has been.  A new President-Elect brings optimism, as more bad news from Wall Street brings despair.

Without any official word yet, things are buzzing over at Wolf Crossing regarding future picks for Obama’s administration.  Names being dropped include former Clinton official David Hayes, who is likely to head up the Environmental Protection Agency.

Wall Street Journal blogger Keith Johnson reports on BP jumping ship in the UK to make renewable energy investments in the US, all because Obama’s promised green energy initiatives are providing huge incentives.

People all over the country are wondering what’s next for the economy.  Will we see more pain at the pump soon? Treehugger reported today on a leaked report by the International Energy Agency that says yes, it’s a certainty once things start to normalize.  Also happening over at Treehugger, a call for Obama to reinstall solar panels on the roof of the White House.

The upcoming Obama presidency has a lot of people thinking, including those over at BusinessGreen Blog, who see reason to be cheerful during such desperate times.

And The New York Times Dot Earth Blog is thinking on a grand scale, asking the question, “what would an energy moon shot look like?”

By Michael Morris, at The Element Agency in New York

With consumer spending rates declining at precipitous rates, brand reputation couldn’t be more crucial right now. Many companies are embracing new ways to communicate their brand identity in the context of their sustainability goals and achievements.

Coca-Cola has emerged as a leader in communicating its sustainability issues. To supplement its annual Sustainability Report, the company established within its corporate website an impressive sustainability section. Here, you’ll find a user-friendly guide to the company’s strategic vision, environmental policies, community engagement, and product innovation. In addition to recent sustainability benchmarks and achievements, it also includes a section which tracks the company’s environmental performance (including positive and negative results) since 2002, the year they first began reporting on sustainability.

Also highlighted on Coca Cola’s sustainability page are two important categories that are too often buried in lengthy sustainability reports: addressing stakeholder concerns and environmental partnerships.

The online platform caters to these less-statistical aspects of sustainability reporting quite well. Front and center on the sustainability page is an “Addressing Your Questions” section, in which questions from stakeholders–ranging from harmless to quite critical–are posted and addressed, demonstrating a nuanced level of engagement and transparency. Below the “questions” section are a number of categories addressing specific aspects of Coca Cola’s sustainability platform. One of these, “Protecting Water Resources,” provides the perfect subsection to display the company’s work with WWF to conserve and protect water.

What brand managers and the C-level suite needs to grasp is that it is a strategic impertative today to leverage and capitalize on your CSR reporting.

Spending the resources and budget on implementing sustainable business practices will do nothing to strengthen your brand’s reputation unless its clearly and effectively communicated with consumers and other stakeholders.

By Grant Draper, Partner, The Element Agency in New York

Now that we have a new President-Elect who has pledged to take climate change and the associated environmental issues seriously, what can we expect in January and the months following?

The answer is a lot. Not only did the democrats pick up six seats in the senate, but three new republicans have been added to the right side of the aisle who are avid clean-energy supporters.  With these new additions, the democrats will have more than enough votes to pass a number of bills.  Much of the legislation has already been drafted and is awaiting a signature, so Obama’s pen could see a lot of action in a very short period of time.  That being said, expect economic issues to be the top priority, followed by energy and related environmental concerns.

By Don Millar, at The Element Agency in Vancouver