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Economic Transformation: One Based on Clean Energy Sources
It’s All about business drivers, scarcity, and intention
What’s It Mean?
Sustainability: Mother lode of a term.......Doing Business Better, Living Life Better
Green: When you are aware of your daily choices and how they impact the environment. When it’s cynical, it’s called green-washing.
Clean Tech: Knowledge-based products and services that improve operational performances while reducing waste.
Clean Energy: Sources that release little or no pollutants. Solar, Wind, Geothermal, Tidal, Wave, Hydroelectric, Biomass.
Smart Grid: A way to measure energy consumption and address energy independence and resilience issues.
Energy Efficiency. We can’t make the gains if we don’t figure a way to reduce consumption
New Environmentalism
Characterized by greater precision in factoring environmental costs and benefits into policy and corporate decision making.
Puts communities at the center of environmental strategies.
Diagnoses and addresses behavioral causes that exacerbate environmental challenges
Recognizes political AND business dimensions of environmental reform
www.gdrc.org/uem/environmentalism.html
How Do You Know It’s Real?
Non-profits: Doing good has never been so popular
Start-ups: There’s a new dot com in town
New corporate attitudes: From B-corps to social capital markets
Brand and process overhauls: It’s no longer about “what was”
“Born Green” brands: No longer just on cooperatives’ shelves
Investor owned utilities: Incubating the future companies
New world of EE: Water and energy efficiency
Renewables & alternative energy: Wind turbines replacing oil derricks
The Business Drivers
A Business Paradigm Shift
Green Tech Gets Serious: Something big is shifting in the business of the environment.......clean-energy innovation is emerging as the new front in the global economic fight. March 7, 2011
Green Investment Still Strong
January 2012
•Pike Research estimates that approximately 57 million customers worldwide will use social media to engage with utilities in 2011, and that number is expected to rise to 624 million customers by the end of 2017.
•A newly fielded survey indicated strong fundamental interest in PEVs, with 40% of participants stating that they would be extremely or very interested in purchasing such a vehicle, assuming the price were right.
•Driven by public policies that encourage a greater emphasis on energy efficiency to reduce costs and improve operations, the ESCO market is expected to continue to grow faster than the domestic economy and reach $16 billion in sales by 2020.
•Worldwide revenue from building energy management systems will increase at a compound annual growth rate (CAGR) of nearly 14% through the rest of this decade, reaching just under $6 billion a year by 2020.
Europe Trends Strong for Sustainability
Despite the sluggish economy, spending by large firms in the UK on energy, environment and sustainability initiatives is set to increase by 12 percent in 2012, by contrast the UK economy is only expected to grow by only 0.6 percent.
www.verdantix.com (2012 report)
Economic Reality
“The clean economy, which employs some 2.7 million
workers, encompasses a significant number of jobs
in establishments spread across a diverse group of
industries. Though modest in size, the clean economy
employs more workers than the fossil fuel industry
and bulks larger than bioscience but remains smaller
than the IT-producing sectors.”"Sizing the Clean Economy," was published July 12,
2011 by The Brookings Institute and Battelle
“Purpose is now the fifth “P” in the marketing equation - joining product,
place, price, and promotion. Purpose allows deeper consumer engagement with brands, allowing the opportunity for citizen
participation in solutions.”
Mitch Markson, Edelman’s chief creative officer http://www.goodpurposecommunity.com/pages/globalstudy.aspx
Follow the Money
Biofuels reached $56.4 billion in 2010 and are projected to grow to $112.8 billion by 2020
Wind power is projected to expand from $60.5 billion in 2010 to $122.9 billion in
Clean tech's percentage of total U.S. venture capital investments continues to rise, accounting for 23.2 percent of total U.S. venture activity in 2010.
$37 billion was allocated for renewables by the federal government in 2010. $850 billion will be spent in China in the next decade on renewables.
States: CO is the 4th largest employer of clean tech workers. MI had a 5.7% increase in clean tech sector jobs as almost all other categories were neutral or net loss.
.WSJ “Next Big Thing” List: Suniva (crystalline solar), eSolar (solar thermal), MiaSolé (thin film solar), Opower Inc. (energy efficiency software), GreatPoint Energy Inc. (coal gasification), SeaMicro Inc. (energy efficient data servers), Boston-Power Inc. (lithium-ion batteries), Luxim Corp. (energy-efficient lighting), Sapphire Energy Inc. (algae).
$100 billion in energy projects allocated in 18 months
2012 Predictions
Renewables will start to win over the jobs argument
Moms’ green clout becomes significant
Car sharing becomes viable
Commodity prices become an ally
Efficiency pays for itself
Secure homes become smart homes
LEDs inch towards acceptance
Green software begins to make sense
Water issues tied to worldwide humanitarian crises
Some big names, and some not so big make the business headlines
Scarce Resources
Global CO2 Impact Will Demand Big Solutions
http://www.youtube.com/watch?v=4IkHtTgn3Nk&feature=player_embedded
www.gapminder.org
Catastrophic Impact of Resource Depletion The world's population has reached 7 billion and is forecast
to rise to over 10 billion by 2050, putting even more strain on global resources.
The problem of over-consumption in high income countries has produced an ecological and financial debt.
Health concerns: Increased hunger due to food yield changes will lead to malnutrition; water scarcity will deteriorate hygiene; pollution will weaken immune systems.
We are losing three species an hour.
A mere 0.5% of the total water on the planet is easily accessible for human use.
Purposeful Intent
CRM: Cause-Related Marketing Purpose must now be engrained into the core of a company
or brand’s proposition. It is no longer enough to slap a ribbon on a product. It must be authentic, long-term and participatory. 2010 Edelman Good Purpose Global Study
80% of Americans are likely to switch products where price and quality are equal when cause is presented with the product. 2010 Cone Cause Evolution Study
In a year when volunteering went up as charitable donations went down, consumers are clearly demonstrating that they still want to give, but in different ways. Look for brands to develop programs that engage consumers instead of simply cutting a check or asking for donations.
The Category is Set to Change Dramatically, adage.com, June 4, 2010
B CorporationsA new type of corporation that use the power of business to create public benefit
The Stakeholder-Driven Business Case for Sustainability and CSR
How To Be Green!
Keep it real. Transparency is the word.
Read your life’s experiences through green colored glasses.
Create an opportunity.
Volunteer, intern, contribute.
Be mission-driven and find your career match.
Network. Network. Network.
Show it with how you spend your money.
It’s Cool to Be Ethical in 2012When Harvard MBA’s make a pledge to do no harm and Eastern Michigan University school of business hosts an “Ethos Week,” isn’t this evidence of a profound business paradigm shift and don’t you want to “do unto future generations as you would have them do unto you” with your next career move?
Resources
www.andrewwinston.com
www.socialcapitalmarkets.com
www.justmeans.com
www.sustainablelifemedia.com
www.brookings.edu/reports/2011/0713_clean_economy.aspx
www.cohnwolfe.com/en/ideas-insights/white-papers/green-brands-survey-2011
www. sustainableindustries.org
www.greenbiz.com
www.grist.org
www.bcorporation.net
www.goodpurposecommunity.com/pages/globalstudy.aspx
www.gdrc.org/uem/environmentalism.html
www.gapminder.org
www.matternetwork.com
www.planetforward.org
www.csrwire.com
www.biggreenpurse.com
