According to a recent article in Triple Pundit, a popular panel session at SXSWeco offered a fresh perspective on sustainability marketing.
Want to sell more of your sustainable products? Time to drop the green finger wagging and start peddling a more joyous life
What motivates consumers of green products? “Empowerment, efficacy, and fun.” One of the panelists shared his observations on trends over the past few years.
…[trends have changed from] pre-recession, where the focus was abstractly on “the environment,” to the recession years, where the focus was on saving money, to the emerging post-recession context, where the focus is shifting towards the health and wellness of the individual consumer. In this new highly-personal context, empowerment is in and guilt is out.
If this is true (and I would love to see the underlying research), then we are seeing a shift in values around sustainability. Rather than being motivated by guilt or fear, consumers of sustainable products are driven by a desire for enjoyment and empowerment. Frankly, it sounds like future sustainability campaigns may be a lot more fun to create!
Read the article here: http://www.triplepundit.com/2013/10/sell-sustainable-product-stop-being-gloomy/
As I mentioned in my earlier blog post, the Intergovernmental Panel on Climate Change (IPCC) issued a report titled “Climate Change 2013: The Physical Science Basis” that removed any doubt about the role of humans in global warming. Although there has been some skepticism, the scientific community appears to accept the findings which raise questions about energy and environmental policy.
I can’t help but wonder what the role of sustainability and sustainability communication should be in companies’ responses to the recent news. Clearly, corporations need to continue to reduce emissions and begin to adopt more clean energy and renewable sources of energy. But, I would go one step further. As part of their social and environmental responsibility, corporations need to consider promoting sustainable behaviors to their audiences. Some of my prior research suggests that corporation spend a lot of time talking about their environmental good works but very little time trying to encourage the public to think critically about environmental issues or take action toward issues. Yet, engaging the public in solving environmental problems will lead corporations to greater respect and trust by the public.
Carbon Emission: Where do we go from here?
According to the EPA and IPPC, the energy supply contributes more greenhouse gas emissions than any other source. However, the competition in the energy business is heating up as new energy sources are becoming more readily available – particularly natural gas from shale drilling. And, investment in emission reduction and new technology development does not seem realistic without incentives that balance the competitive landscape and reward environmentally responsible behaviors.
The findings from the climate change report are grim, and experts are calling for action. According to a column in the New York Times by Eduardo Porter “William Nordhaus of Yale, to cite one estimate, wrote recently that allowing uncontrolled carbon emissions would raise the world’s temperature 3.4 degrees Celsius (6.1 degrees Fahrenheit) above that of the preindustrial era by the end of the century and cost the world a fairly modest 2.8 percent of economic output.” Something really does need to be done.
Two popular options for motivating emission reductions are a carbon tax and a cap-and-trade system. Both have benefits and drawback, as we have seen in other countries and regions. For example, according to the National Renewable Energy Laboratory’s report Carbon Taxes: A Review of Experience and Policy Design Considerations, countries such as Finland, Norway, Sweden, Denmark, and some Canadian provinces have experienced success with a carbon tax. They have seen marked decreases in carbon emissions, and the tax funds have been redirected to environmental projects, and in some cases to reduce income taxes and other taxes. But, carbon taxes raise a number of concerns. First, while a carbon tax sets a known cost per pound of emissions, it does not inherently limit emissions. It may increase costs to businesses but not achieve the overarching goal – reduce emissions. Recently, the Australian government announced its intentions to repeal a carbon tax in the near future.
The other common approach is cap-and-trade, which seemed to be welcomed policy in 2009 when the American Clean Energy and Security Act was approved by the US House of Representatives. However, later, it was defeated in the Senate. In many ways the bill was similar to the European Union Emissions Trading System, which has had the greatest volume of CO2 allowance trades of any carbon market program. Despite a few bumps in the road, it has been successful in reducing carbon emissions. The advantage of a carbon market is the ability to set an emissions threshold and permitting allowances to be traded on the market, setting a reasonable price. As the economy improves, prices rise, and should the economy fall, prices follow.
But, as Newell, Pizer, and Raimi write in the journal article Carbon Markets 15 Years after Kyoto: Lessons Learned, New Challenges, “A key question for – and sometimes criticism of – current market-based policies concerns the degree to which they encourage long-term investment in new technologies rather than solely short-term fuel-switching and energy conservation” (p. 132). Will cap and trade programs lead to the long-term goal of creating technologies that reduce emissions and/or use renewable energies?
To add a dose of reality, the current political environment in the US would hardly allow for either policy. Congress can’t even get a budget passed. That is why we see regulations on emissions coming from the Whitehouse and EPA in conjunction with programs that will fund research into new technologies that will help industry reach the regulation requirements. It’s not a perfect solution, but considering the current state of our political system, it may be the best solution to keep forward momentum.
The UN released a report on climate change today, and it points to human behaviors as a primary driver of global warming. Here is a quote from the article:
Even if we end carbon dioxide emissions today, effects could linger for hundreds, if not thousands, of years. And certain changes may already be irreversible.
Scary words. If I worked in a corporate communications or sustainability department today, I would be planning ways to promote my responsible environmental behaviors in the coming weeks and months. This kind of news has a way to coming back around to those who hold the most responsibility. People want someone to blame, and research shows that the greatest amount of emissions come from energy and industry, as I mentioned in my earlier post.
Many large corporations take environmental sustainability seriously, and they work to keep their emissions low. However, 50 companies are responsible for 73% of greenhouse gases, according to the CDP. They need to take notice and step up their efforts to minimize environmental impacts. Otherwise, the fear that this news creates will be redirected as anger toward the companies that have had the largest role in the problem.
And what about policy? This is just the kind of news that creates more public will for energy and environmental policy. It comes on the heels of recent proposals by the EPA and the Whitehouse that will limit emissions from power plants and fund research into new clean technologies. Now would be a good time to propose more policies that move us toward renewable resources.
You can read the report at climatechange2013.org.
According to the US Environmental Protection Agency and the Intergovernmental Panel on Climate Change, globally, the energy supply contributes 26% of greenhouse gas emissions measured in the environment. This does not include transportation (13%), industry (19%) or residential and commercial buildings (8%), among other industrial outputs. The emissions come primarily from coal, natural gas and oil use for heating (most often in the form of electricity). As reflected in transportation, this does not include fossil fuels used for air, road, and rail travel. Although coal and oil may be plentiful, the cost to the environment is significant.
In industry, it appears that some companies are not taking energy use and emissions seriously, or at least the disclosure of emissions (see: Amazon, Apple Among Companies Ignoring SEC Climate Change Risk Disclosure Rules). This is a problem, particularly considering recent findings by the Carbon Disclosure Project that 10% of world’s largest companies (Global 500) produce 73% of greenhouse gases.
So, how do we create stable energy policy that encourages more clean energy use and moves us away from high impact emissions? We saw two steps in the right direction this week in the form of energy and environmental policy coming from the White House. First, Obama announced higher standard for carbon emissions from power plants for the first time in the US. This ground breaking legislation would require the coal industry to lower its emissions to meet that of other fossil fuels, such as gas. Critics point out that the technology to reduce emissions to this level does not exist. And, that makes Obama’s second proposal that much more appealing to the coal industry. The President announced an extension of a Department of Energy program that will fund loans for technological developments that reduce carbon emissions of fossil fuels, including coal and natural gas. The coal industry now has the resources to develop technology that will reach the standards set by the administration. This was a smart move that drives interest in both pieces of legislation. Access to loans will be more valuable with the looming standards for carbon emission. And, the higher standards are more readily accepted with access to loans to help develop technology that will clean up fossil fuel emissions.
However, cleaner fossil fuels only offer a short term answer. The greater question is how do we encourage transition to renewable energy? As Ann Carlson and Robert Fri suggest in their article Designing a Durable Energy Policy, goals of clean energy policy play outside of the marketplace – in other words, people don’t want to pay more (or be taxed) to have more secure energy or cleaner energy. That makes the transition to a new energy source difficult to sustain.
There is no easy answer, but I believe businesses have a role to play in bring about the transition. As an important constituency of energy policy, their stance can influence legislators and the public. By adopting renewable sources of energy and demanding reasonably priced clean energy sources, they will affect the marketplace for these products. Sustainability has become a business strategy and part of the culture for many companies, and that can have a broad impact on energy use and emissions. Although some companies do not appear to have made the necessary commitment to move the business world forward, others have, and I think that is another step in the right direction.
The Carbon Disclosure Project released its CDP Global 500 Climate Change Report 2013 today. The report includes the Climate Performance Leadership Index (CPLI) which features companies with strong climate strategies. In addition, the report found that 50 of the Global 500 companies are responsible for 73% of greenhouse gas emissions. This is astounding. According to the report, carbon emissions from these companies have risen year over year. You can find more information in the report or at the links below.
On Sunday, the Centre Daily Times published an article that I wrote about volunteerism and the model that Penn State’s THON event offers. The online version doesn’t include the wonderful pictures from the event that the CDT used in the print version, but the text is all here. I appreciate the opportunity to share a bit of my research.