Calories and Carbon: How information can or can't drive behavior?
Main topic: There are many different indexes, labels, and certifications. How do we make this information available to consumers, corporate decision makers, buyers. How do we refine this information so that it is digestible?
Key assumptions: - Consumers care and will pay more for sustainable products - There is adequate knowledge is out there but we are just not communicating it effectively
Opportunities/Solutions: - Create broader coalitions with environmental and health communities. Increase dialogue because we have a lot to learn from each other -Focus on educating the buyers -Capitalize on social networking tools to get the message out about sustainable companies and rely on friends who are makinginformed consumer decisions - Companies canlet go and let others tell the story. Ex) New Belgium turned off their open forum so they could have more control of messaging and there was a big backlash - Drive value chain thinking. Identify players with most impact and find right mechanisms to incentivize them. -Bypass labeling altogether and use alternative information sources such as Good Guide (http://www.goodguide.com/ an iphone application which allows you to scan a product's barcode and provides sustainability information) - Consumers value third party labeling. Need ongoing third party audits to ensure claims are valid
Challenges: - Relationship is somewhat broken with current "green washing" trends so consumers think I will just wait until it gets sorted out. - Consumers dont know which label/certification to trust -Who determines labels and do they have inherent biases? - Buyers are not educated - Information overload.Half of the audience did not about B Corporation, a certification, so how do we expect consumers to know?
Questions for Continued Discussion: 1) Different stakeholders want different certifications but ifyou only have the budget for one, how to you decide? Ex.)In building industry, there are numerous certifications (LEED focuses on energy but local certifications focus more onEnergy Star). Wood products have about 6 different certifications.
2) Is acquiring a sustainable brand the right method? - Consumers dont understand labels so they make decisions based on brands. Case study: Clorox has made there own green label. This will help focus consumers on the Clorox brand. However, point is raised that they spent a lot of money acquiring Burts Bees so that the could gain credibility.
2) Do consumers lend credibility to companies that have incorporated sustainability into their mission but have not yet become sustainable? - Should consumers give companies another chance that are just beginning to make strides? - Companies are making big steps and this is good news, maybe we should lighten up on the labeling criticisms and concerns about certifications.
3)Where does the responsibility lie? Consumers vs. Government regulations vs. company brand managers/buyers - The more people responsible, the less likely that people will step forward and be held accountable. - Are there players that can help? Ex.) American Chemistry Council established a label for chemical companies and you must use it if you are a member
4)How do you affect the middle of the value chain? - Buyers have lots of power and sometimes they are not making informed decisions. Ex.) Tape which was being used in a hospital was very harmful but did not know until an EPA audit was conducted - Labeling would be effective for buyer decision making as long as it is perceived as unbiased
5)Sustainable decision making from top down or bottom up? Case Study: Interface, a carpet company, CEO decided one day to become a sustainable company. How did consumers, employees, the market respond?
6) Is sustainability drive at Walmart too early? - Driving competition to become more sustainable but with unclear standards - Distorting competition because companies dont know what they are competing on - Causing greenwashing and confusion and limiting innovation on the back-end because they still have a focus on low prices - Walmart passed around "exceptions" to sustainability requirements