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In me, on me, around me:Messages that motivate efficient energy choices

ACEEE Health Conference • November 5, 2018

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We create a market advantage for organizations that create a sustainable, energy-responsible future.

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The company we keep

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We start here…

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..and we end with campaigns that build brands, shift perceptions and drive sales

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Let’s start with the fundamental challenges of engaging Americans in energy efficiency

7 Q43 – How important would you say energy conservation is in the way it affects your daily purchase choices and activities? n=2.009

70% 72%67% 68% 68%

61%65% 64%

69%65%

70%

64%

77%

60%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Perc

ent r

atin

g im

porta

nt/v

ery

impo

rtant

8 Source: Energy Pulse 2018

89%of people who expect to buy a new home in the next two years say

higher energy efficiency would cause them to choose one new home over another

n=610

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However…

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46%Admit they’ve done nothing to improve the efficiency

of their homes

Source: Energy Pulse 2018 n=2,009

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So why is that?

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And when you look at who’s participating in rebate programs, it’s a little concerning

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They agree global warming, or climate change, is occurring, and it is primarily caused by human activity

Shelton Segments:Concerned Parents

True Believers

Utility EE rebate recipients

They are worried about the world their kids/grandkids will inherit

Biggest energy concern is using up our energy resources at the expense of future generationsPredominantly

Millennials and significantly more likely to be 25-44

years oldReason to participate in conservation activities is

primarily to save money but more likely to be a good

example and a good citizen

More likely to be well-educated, with a

graduate or professional degree, with above average incomes ($75k+)

More likely to have kids in the household

More likely to be male

Source: Energy Pulse 2016 n=617

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Tying EE to health could drive actual engagement – and engagement with middle to lower income consumers

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Top 2“making my home healthier/safer” is one of the top 2 responses for

priorities on “spending money on my home”

n=2,281

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The number one reason consumers choose green products or materialsfor the home or work is for the health and safety of themselves or their family

10%

11%

17%

19%

25%

28%

30%

30%

33%

34%

35%

36%

40%

40%

It goes with my personal image

I wouldn’t buy greener products in this category

To support companies committed to human rights

To support the environmental reputation or mission of the brand

I trust the quality of the product

To prevent chemicals from going down the drain and into the water system

To avoid harming animals during product testing

To preserve the quality of life for future generations

To do my part to reduce climate change

To preserve natural resources

To limit my (or my family’s) exposure to toxins and chemicals

To support waste reduction

To save money

For the health and safety of me or my family

n=2,012Source: Eco Pulse 2018 Q40_Thinking about products or materials for your home or work (e.g., furniture, windows, flooring, insulation, paint, etc.),which of the following are reasons why you would choose a greener product option?

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68%believe their house has a

moderate to strong impact on their health

Source: Eco Pulse 2018n=2,012

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65%are at least somewhat

concerned about indoor air quality

Source: Eco Pulse 2018 n=2,012

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80%think energy-efficient homes

are healthier homes

Source: Eco Pulse 2018n=2,012

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Why?

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There is a growing concern among consumers about how the products they encounter will impact their overall health

“I tend to buy things from Burt’s Bees because of their natural ingredients… Most of their products are natural, which I love for my body.”

“I use [The Honest Company’s organic all-purpose balm] in place of Vaseline. It has no petroleum and is totally organic…Products containing petroleum jelly can contaminate the body, interfere with estrogen levels, and may contain carcinogenic substances.”

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But it isn’t just their own personal health they’re concerned about—it’s the health of their family and overall home, as well

“[I looked for more natural-based products] when my kids were babies and mouthing on everything.”

“When my kids were little, [the Honest Company] had a baby body care line, and it was ridiculously expensive. But I didn’t care. I think like most parents I tend to spend a lot more money on the kids’ stuff than I would myself because you want it to be all organic and you don’t want it to have dyes.”

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The desire to have a healthy home is driving a new consciousness of the products that produce fumes, like cleaners and paints

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We thought that Americans would care more about products they eat (In Me) or touch (On Me) than products in their environment (Around Me)

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1. Thinking about products you eat or drink, which of the following are reasons why you would choose a greener product option?

2. Thinking about products that come in contact with your body, but you do not consume, which of the following are reasons why you would choose a greener product option?

3. Thinking about products or materials for your home or work (e.g., furniture, windows, flooring, insulation, paint, etc.), which of the following are reasons why you would choose a greener product option?

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10%

12%

17%

18%

25%

28%

29%

31%

31%

32%

34%

36%

37%

43%

It goes with my personal image

I wouldn’t buy greener products in this category

To support companies committed to human rights

To support the environmental reputation or mission of the brand

I trust the quality of the product

To prevent chemicals from going down the drain and into the watersystem

To preserve the quality of life for future generations

To do my part to reduce climate change

To avoid harming animals during product testing

To preserve natural resources

To support waste reduction

To limit my (or my family’s) exposure to toxins and chemicals

To save money

For the health and safety of me or my family

The drivers for In Me, On Me, and Around Me are surprisingly similar

In On Around

45% 43% 40%

37% 36% 40%

38% 37% 35%

33% 33% 36%

33% 30% 34%

32% 33% 30%

31% 30% 33%

29% 27% 30%

28% 28% 28%

26% 25% 25%

17% 18% 19%

17% 17% 17%

12% 12% 11%

10% 10% 10%

n=2,012Source: Eco Pulse 2018

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45%

50%

51%

52%

53%

54%

54%

58%

A product that is organic

A product made with renewable-energy sources

A product that has minimal packaging

A product in a recyclable package

A product made with recyclable materials

A product that is all-natural

A product that doesn’t produce chemical smells (VOC-

free)

A product that is chemical-free

And the intensity of the specific health drivers that

influence purchase decisions are similar too, whether the

product is In Me, On Me or Around Me In On Around

59% 58% 57%

55% 54% 54%

55% 54% 53%

52% 51% 56%

53% 52% 52%

51% 50% 51%

50% 49% 51%

46% 45% 44%

n=2,012Source: Eco Pulse 2018

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The trick, then, is connecting health to energy efficiency via your messaging

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We do see that there are some generational nuances…

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Remember, we can leverage this:

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Try this shift• From

–Want to save money? Air seal and insulate your house!• To:

– Air sealing and insulating your house lets you and your family breathe easier – you’ll keep out air pollution and even pests!

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And test “health” as one one of a few messaging pathways, driving folks to content that reflects back what they care about

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3 pathways: Control/quality; comfort; health/peace of mind

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Takeaway

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Americans think energy efficiency isn’t necessary and/or doesn’t save money.

Americans are concerned about their health and their family’s health and it’s a key driver for greener product purchases – including home products.

Position EE as a key way to make one’s home healthier, and give Americans prescriptive steps to take to make it happen.

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That gets us right to Patrick…