NATURE DOESN’T NEED PEOPLE, PEOPLE NEED NATURE

I read this quote online, “If you teach a man to fish, you will feed him for a lifetime. But what if there were no fish to be caught?” and it really resonated with me. I wanted to find out where it was said, and who said it – by doing so I discovered an incredible organization, Conservation International.

CI is a non-profit organization that has one simple mission: protect the people, by protecting nature. They see themselves as a human organization, rather than an environmental one. Why? They recognize the relationship between human beings and nature. We are completely dependent on everything that nature has to offer, and that is why CI has made it their mission to protect it. CI has been completing projects for over 25 years, in over 30 countries, and has made over 2,000 partnerships.

To put things into perspective, CI has protected more than 730 million hectares of land, marine, and coastal areas. Although I could write a small novel on their success, I wanted to redirect you to their website where there is endless amounts of information. I was very impressed with the layout of their website, and the degree of transparency within their organization. In lecture we discussed the difficulties companies have regarding what information they should share, and more importantly how they should share it. I believe it should be mandatory for every non-profit organization to have a high degree of transparency with the public – if they don’t share their impact, no one will want to support their cause – and if no one wants to support them, how will they grow?

CI launched a campaign which released a number of video series, and followed the hashtag #NatureIsSpeaking. I thought the campaign was an innovative approach to get people talking about sustainability, and why we should be conserving our resources. I can see why they would leverage celebrities to generate a conversation, considering they have such a large fanbase. I also think it is a unique approach to target the younger demographic. Consumers may be more receptive to content starring their favourite actors name, opposed to a non-profit organization. I have attached the names of the actors affiliated with the series, and a clip starring Julia Roberts.

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At the end of each video in the #NatureIsSpeaking series, you’ll notice the repeating phrase “nature doesn’t need people, people need nature.” I couldn’t agree more with this statement, what do you think?

The Sustainable Way – The Rippl Way

In class we were introduced to a variety of reporting systems, such as Climate Counts, GRESB, and MAKING. Until this lecture, the only platform I was familiar with was MAKING. I have actually worked with this app in the past, and I am a huge supporter of the MAKING reporting system.

I think the MAKING app is a great representation of how businesses are coming together to make change; not just in their value chain, but in the industry they operate in. It is so powerful when companies can develop sustainability practices and then share them with competitors. I think that is what I admire most about Nike – their ability to develop such an incredible app, and then share it with public.  In addition to the reporting system MAKING, and the ones we discussed in class – this link provides a summary of the most successful sustainability apps in 2013.

In terms of sustainability and apps, one of my favourites is Rippl. It was developed by the charitable organization Ocean Conservancy. They discover science-based solutions to tackle some of the largest ocean conservation challenges. This includes supporting some of the largest US fisheries to ensure they are meeting sustainable standards, and raising awareness of the issues associated with trash, and carbon damaging our oceans.

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If you want to learn more about Ocean Conservancy and the improvements they have made > click here. 

I highly recommend downloading Rippl, I use it all the time and for good reason. To be honest, I am slightly forgetful – and sometimes I need a reminder, especially when I’m tired (I think we students know the feeling a bit too well). This lifestyle app sends me notifications to ensure that I am making sustainable decisions daily. Although I am not the most “green” consumer, I am working on it. This app has enabled me to drastically change my daily routine, and build new green living habits.

Below I have attached screen shots of the reminders you can set on the app. The best part about Rippl is that it is completely customizable to your lifestyle. It allows you to set personal goals, and reflect on your progress. Oh and yes students, the app is free don’t worry!

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Perhaps you don’t need daily reminders like me, and if so – well done, I am jealous. However, I have shared this app with friends and family that needed that extra push to make those sustainable changes to their lifestyle. So far, they have seen tremendous success. If you don’t think you need the app, show someone who does!

PepsiCo – Performance with Purpose

PepsiCo is a multinational food and beverage company. It is compromised of some of the world’s most recognized brands, such as Frito Lay, Tropicana, Quaker and Gatorade. I wanted to discuss PepsiCo, not because of their success in the food and beverage industry, but because of their leadership in sustainability.

In 2015, they were awarded as one of Canada’s top 50 socially responsible companies. PepsiCo has made water scarcity the focus of their business model, and they have seen tremendous success in the last ten years. Since 2006, PepsiCo has improved their water efficiency by 20% – this converted into 14 billion litres of water cut from their operations!

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PepsiCo isn’t only focusing on their business operations, they have also partnered with NGOs to deliver clean water to communities in need. In 2007, PepsiCo set a target to provide three million people around the world with safe water by 2015. I was so impressed to discover that PepsiCo not only achieved this goal, but they did it three years ahead of schedule.

PepsiCo has sustainability at the core of their organization. Under each of their brands, they have implemented processes that  reduce their impact on the environment. For example, Quaker Foods and Snacks has decreased their landfill waste by almost 50% from 2010-2011. Frito Lay Canada has converted almost all their transportation to electric vehicles to reduce their carbon footprint. For further details regarding PepsiCo’s brands, visit their Sustainability Environmental fact sheet.

In my opinion, when I think of health I don’t really think of PepsiCo. However, after reading through PepsiCo’s Human Sustainability fact sheet I had a new perspective. For example, Frito Lay launched a new baked chip that has 80% less fat than the leading potato chip. Tropicana introduced a juice that has 50% less sugar and calories than the leading 100% juices. I think this transition to health and wellness is a smart business decision, as they can grow with the health trends and attract a wide variety of consumers.

We discussed in class how important it is for businesses to set targets for themselves, and share their progress with the public. I admire PepsiCo for their transparency and social responsibility initiatives. I think it is industry leaders like Pepsi that will set the standard for years to come. Well done Pepsi!

Walmart Makes Positive Changes!

In response to the documentary we watched in class, Trust Cost, we discussed how organizations could implement strategies to lower “total cost”, and how to make consumers more aware of all the factors they should consider. As we know, price is only one element in the equation, but it is sometimes the only factor considered in the consumers purchasing process.

I started to think of companies that offer sustainable products at a relatively low price, and immediately I thought of Walmart. They are one of the world’s largest retailers, and they have successfully incorporated sustainability initiatives throughout their entire value chain.

Walmart has consistently positioned themselves with an “everyday low pricing” strategy. Along with many other organizations, Walmart received negative publicity after the Bangladesh tragedy – and so they should. However, I think it is important to acknowledge the changes Walmart has made to their business model. And more importantly, the example they are setting for large retailers in the garment industry. Who knew you could offer affordable prices while sustainably sourcing, producing, and distributing your products at the same time?!

The True Cost documentary gave me a new perspective on the “total cost” of the products I am buying, and how price should not be the only factor considered in the purchasing process. I consider myself to me a relatively high price-sensitive consumer, and the guilty owner of several $5 t-shirts. However, this documentary had such a powerful impact on how I view the products that I own, and the ones that I will buy in the future. Although this documentary was heart breaking, it was extremely informative – and I hope more films like True Cost are produced in the future.

On a happier note, I was pleasantly surprised to find out that Walmart is a founding member of the Alliance for Bangladesh Worker Safety. The work that Walmart has done so far for the Bangladesh community is inspiring. It is incredible to see such a large retailer leverage their size and scale to influence positive change around the world. Of course, Walmart is not perfect – as no organization is. They have lots of room for improvement; however, I think it is important to acknowledge the changes they have made, and the ones they are striving to make in the future.

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It is my hope that large retailers in the “fast fashion” industry, such as Forever21 and Zara, will aspire to have a similar business model to Walmart. I am confident that as consumers become more aware of the “total cost” of their products, they will develop a higher standard and expectation for sustainable sourcing, producing and distributing.

Sustainable Soda!

SodaStream is one of my favourite brands, which was recently featured in the The Circular Economy Business Model Toolkit card deck we discussed in class. It was placed as an example of a “Consumer Lock-In.” Although I do agree with this, I think it is also a great example of a company that has adopted a “Collection Service.”

If you are a sparkling water addict like myself, you can go through a SodaStream CO2 cylinder in less than a month. If I were to buy these cylinders at full price it would cost nearly $40. However, with the carbonator exchange policy, it saves me nearly $10! Not to mention it saves me from accumulating multiple cylinders, and not knowing where to dispose of them. SodaStream has made this a convenient process, as thousands of retailers honor the exchange policy. Unlike other companies, this avoids the hassle of shipping!

The CO2 cylinder takes a bottle of tap water and turns it into sparkling water in seconds. And the best part is that it does all of this with no electricity! This product is a sustainable alternative to purchasing soda at the grocery store. It saves you money, and at the same time it saves the environment!

If you’ve never seen the SodaStream in action, I wanted to share one of my favourite commercials with you:

I bought my soda maker two years ago, and since then I have seen a drastic transformation in their brand positioning and advertising. Prior to this transition, they projected themselves as a “Green” company. Unfortunately, this positioning did not align with the values of their target market. When SodaStream saw sales rapidly declining in America, they removed their focus from sustainability. According to this article, they had to do so in order to effectively compete with brands such as Coca-Cola and Pepsi.

I am confident that the value American consumers place on sustainability with improve. I found it interesting that SodaStream had to reposition themselves to attract a wider market in order to stay competitive in the industry. “Soda leaders” such as Pepsi and Coca-Cola are heading the opposite way, and incorporating sustainability initiatives into their corporate strategy.

“I am a witness”

I was really inspired by the “love has no labels” campaign that we discussed in class, so I went to the Ad Council website to see what other campaigns they have done. Although I came across many that I liked, my favourite was the “I am a witness” campaign. Their main objective was “to stop bullying by activating the silent majority of kids who witness it each day transform them from passive bystanders into a united, empowered and active collective that will speak up against bullying”.

At the heart of the “I am a witness” campaign was a Witness Emoji, which was available for free download on the Apple App Store. The Witness Emoji was shaped like a speech bubble, but the app provided teens with multiple stickers to choose from. The incentive was for teens to post the emoji when they saw a hurtful comment online, or send one to a friend as a form of support. I think this app is brilliant, because as we know, social media is plays a pivotal role in society (especially for teens).

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I think with the right tools and resources pro-social marketing can be really powerful. I think it’s the ad campaigns like “love has no labels” and “I am a witness” that create awareness and influence consumers to make changes in their behavior. I think it’s all about starting that conversation – and who knows how to do that best? Marketers!

There’s a misconception that marketing is only for promoting products and their attributes. I think sustainability marketing goes much further than that – it is focused on changing consumer lifestyles. It shares a very close relationship with pro-social marketing, which isn’t about marketing product attributes to generate sales, it’s about influencing behaviour change. There are consumers who still drink a can of soda and throw it away in the garbage (hard to believe – I know). Consumer lifestyles are extremely difficult to change. Marketing has an opportunity to influence the way people consume, reuse, and dispose products in their day-to-day lives. Sustainability marketing initiatives share similar objectives to those of health campaigns. For example, a health campaign targeting nicotine smokers is trying to create an incentive for users to quit. This is essentially no different from the campaigns that try to incentivize consumers to recycle.

 

Outdoor Furniture made from Milk Jugs?

When I lived in Kelowna I worked at Lakehouse for three years. One brand I fell in love with while I was working there was Loll Designs. They design/manufacture outdoor furniture made from recycled plastic (mostly from single-use milk jugs). I bet you’re wondering how comfortable milk jugs are to sit on, or how that would look in your backward. I encourage you to browse their website because there is so much to see, but from my personal experience I can assure you that the furniture is extremely comfortable!

Most of the customers who shopped frequently Lakehouse had higher-incomes so the premium pricing of Loll furniture was never an issue. In terms of Gfk Roper’s shades of green, I don’t think Loll is targeting the “True-blue Greens” or “Greenback Greens” segments. I think their products are definitely attractive to these segments, but I don’t think they are the company’s profit drivers. I am confident in my opinion because when I was selling Loll products at Lakehouse the recyclable materials feature was the last thing they wanted sales associates to mention. In terms of positioning, I think they have adopted a “great first, green second strategy” – design and durability are their primary focus.

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Loll designs has incorporated sustainability throughout their entire value chain. In terms of the manufacturing process, Loll confirmed that they recycle 95% of the waste that they produce. This waste is sent to a local recycling plant. All of the Loll furniture is 100% recyclable, so after several years of use the consumers can sustainably dispose their furniture! It is obvious that the product themselves are sustainable, since they are made entirely from recycled plastic. But it doesn’t stop there – since 2008 Loll has implemented an annual initiative called “Plant a Tree,” and they are proud members of the global movement “1% for the planet.” Loll designs is a great representation of what a long term sustainability focus looks like.

The Trend of Transparency

The article “What Will Revolutionize Sustainability Reporting in 2016 and Beyond?” provides a wonderful summary of what I believe to be the biggest sustainability trend of 2016: a rapidly increasing demand for corporations to adjust their reporting landscape and communicate their commitments to sustainability with the public. I think this change in sustainability reporting will become essential for all businesses in the near future if they want to remain profitable. As a consumer, I would be very skeptical and concerned if a company was not disclosing information regarding their sustainability initiatives and environmental impact. I firmly believe that the firms who choose not to participate in this trend of transparency will pay the price – and the price will be expensive, perhaps detrimental to their success. Word of mouth isn’t necessarily a new trend for 2016, but I do think it is something that should have been discussed in this article. Word of mouth is so incredibly powerful, especially for my generation (the “tech-savvy” Millennials).

Like the article mentions, there are external benefits to a company that reports its sustainability initiatives – such as building trust and brand loyalty. I think the article should have mentioned a key catalyst to achieve that trust and loyalty, word of mouth. A company that is environmentally responsible will create a positive word of mouth or hype (if they communicate their sustainability initiatives effectively – and that’s where my friend marketing comes in). The generation Y segment relies heavily on their friends, relatives, and peers when they are making purchase decisions. It all comes down to positive word of mouth – which, in my opinion, has the ability to make or break a business. Research has proven that consumers weigh negative word of mouth more heavily than the alternative positive word of mouth. This was proven in the Prospect Theory which says, “consumers weigh losses from a reference point more than equivalent sized gains.” To read more on this theory of loss aversion, please see the following link.

This proves that a business that is not reporting its sustainability initiatives or is destructing the environment will not only damage their brand image, but perhaps even kill it. Compliance with sustainability standards should be seen as an opportunity, a way to create a competitive advantage. The reputation of a company is critical, and I think it won’t be long until sustainability is encompassed in every brand; let’s face it, we are nearly there!