Archive for the 'marketing' Category

Monday, October 12th, 2009

Cleantech Companies Failing Communications Test

New research from KRC Research commissioned by my company Weber Shandwick was released today and shows that poor communication from suppliers is impeding the growth of the cleantech market. The research, pulled from interviews with 400 senior purchasing decision-makers in the UK, Germany, Span and France, revealed that although 8 of 10 organizations in Europe have specific cleantech purchasing policies, two thirds indicate that cleantech companies are failing to get their message across – 29 percent said they currently receive no information at all from cleantech companies, 26 percent said information was insufficient, and 11 percent said that if they were receiving information that it was too complicated. Demand is there (60 percent of European organizations are placing the same level of importance on green procurement as they did before the economic downtown), but half of those interviewed perceive cost to be a barrier to making cleantech investments. The research also shows some interesting differences between the various markets. Take a look at the full report, and if you’re interested in learning more, let me know.

 

Monday, August 3rd, 2009

marketing monday: green is dead, long live green

It is time to rethink the language we use to describe efforts to improve our relationship with the environment. Below are the four reasons I believe we have entered a Post-Green, Post-Sustainability Era, and need a new meme:

  • Red or Black Only: A price on carbon – whether in the US through ACES or internationally through COP15 – means that the discussion by businesses about “going green” becomes no longer exceptional (“hey, look what we did”), it becomes merely a requirement. Sustainability moves from the realm of marketing to the realm of bean counting and execution. Compliance to a regulatory framework for emissions means carbon is either a business asset or a liability, both of which impact the bottom line. Result: “Green” is folded into what business has historically been about – finishing the year in the Red or in the Black (and hedging against future shifts in the new currency of carbon). Similarly, strict compliance guidelines such as RoHS and WEEE also mean that making products more recyclable or less toxic is also taken out of the realm of marketing.
  • SustaINABILITY: Going into Copenhagen, the international discussion will officially shift from mitigating climate change to adapting to it. Species extinction, ocean acidification, the addition of 2.5 billion more people globally in the next 40 years are all clear signals of this shift. This trend represents a necessary shift in language. In the new world of adaptation, “green” and “sustainability” will be revealed for what they are: constructs that imply that by “going green” or touting “sustainable practices”, we are somehow going to end up with a world as we knew it. The fact, however, is that the only thing that will be sustained going forward is our penchant for being unsustainable. We are already in a world of adaptation, so talk of going green and sustaining is obsolete. Instead, what we’re looking at is “maybe, if we’re really lucky, we’ll be able to achieve some level of ecological health that resembles what used to be”. But who wants to hear that message? So people will still sell green, and unfortunately others will continue to believe it exists.
  • “Y” Green is Yellowing: There is also a generational shift. This blurb from Matt Bai in a recent NYTimes piece sums it up nicely: “In a sense, the gay rights movement of an earlier era was so successful in changing social attitudes that the movement itself can now seem obsolete, in the same way that younger Americans who have grown up with the premise of environmentalism in their daily lives consider Greenpeace to be a kind of hippie anachronism.” Point taken.
  • Green Splatter: As writers like Joe Romm and Felicity Barringer have recently pointed out, “green” and “renewable” have a troubling elasticity to them, which has stripped the terms of any real meaning. Similarly, Dr. Andrew Dent has pointed out that “green” is not quantifiable because the data set is not quantified. Moving forward, specificity of language will be required to give meaning to action, so expect to see references to specific attributes such as recyclability, non-toxicity, low VOC, etc. Besides specificity, transparency and authenticity around product claims are about to be thrust upon businesses, which will push people away from empty platitudes. In the US, the Federal Trade Commission is reviewing its guidelines for green marketing claims with the goal of developing metrics that can be quantified. It should be noted here, however, that even this is far from full-proof, since the issue will ultimately be enforcement. The USGBC’s LEED rating system is proof of that, having recently come under fire for fostering “LEED-washing” – instances in which buildings claim and are often awarded LEED status, but don’t actually deliver the results.

The shift in semantics has started. Bill McKibben, the author of the “Death of Nature” and recently back from a trip to Australia, said at a recent event in Seattle that ministers Down Under are considering no longer using the term “drought”. The reason: drought implies that there is a beginning and an end to a water shortage, when the reality is that water shortages (in Australia and increasingly in other locations) are now endemic. The Economist hosted an interesting debate recently in which Stanford professor David Victor argued that sustainable development is “intellectually bankrupt and should be abandoned”, in part because “its meaning has become fuzzier”. The person arguing for sustainability’s relevance, Peter Courtland Agre of Johns Hopkins Malaria Research Institute, believes we can achieve sustainability because he is optimistic people will discover activism and change their behavior. Unfortunately, work by psychotherapist Linda Buzzell and others undermines this Pollyanna belief by pointing out that people as a species “don't seem to be very good at understanding enormous, complex challenges like the ones we're presently facing, let alone processing our emotional responses to these threats and moving into action.” I agree, and as I’ve explained in earlier posts, this is why my work focuses on technologies that can provide a buffer between consumption and natural resources without behavioral change.    

I’m sure people will continue to use green and sustainable as an easy shorthand for things that are less harmful on the environment. But that will become disingenuous, if it hasn’t already. So what will take their place? The younger set have started searching for something more meaningful, although I’m not sure the term “Freen” does more than add another cool-sounding, but largely meaningless term to the existing lexicon of self-indulgence. Others have lobbied for using a nomenclature built on the notion of “blue”. Ultimately, none of these terms pass the smell  test. “Low carbon” is good, but carbon is simply one piece of the problem and solution, so it is insufficient. “Resource-sensitive” and “low-impact development” start to get at the issue, but are kludgy. “Beyond compliance” is too narrow. Whatever the answer, the reality is that the words we use to define our struggle for survival are badly in need of an update. If you have thoughts on the matter, post a comment or send me something pithy on Twitter @mrcleantech

(This post originally appeared on Triple Pundit)

Thursday, July 30th, 2009

New Energy + Mature Energy = Scale

Because of my work with PetroAlgae, SkyFuel, EarthTronics and other cleantech companies, it has become clear to me that the degree of success achieved by “new energy” technologies (wind, solar, biofuels, electric vehicles, etc) will in large part be the result of their ability to integrate into and leverage the existing, “mature energy” infrastructure. Whether it’s plug-in, drop-in, co-fire, bolt-on or some other term, it is these types of technology – which DO NOT require significant retooling of refineries, transmission, storage, etc – that will have the best chance to scale, and thereby win in the long-term. Exxon’s recent announcement to invest $600 million in algae is a good indicator of this trend. Similar to the discussion of gigaton scale in my last post, cleantech companies need to be thinking about this issue when developing their positioning and go-to-market strategy.

Wednesday, April 8th, 2009

Peer-Reviewed Cleantech Journal Launches

The Cleantech Law & Business Review has officially launched with the release of its first quarterly issue. The goal of the Review is to accelerate cleantech commercialization by addressing a current deficiency in the sector: the absence of a forum that has the ability to look holistically, and through expert eyes, at the opportunities and challenges of cleantech.  

The journal will be peer reviewed (the first such publication in cleantech) and solicit contributions from business, academic, policy and legal experts to address the most topical and strategic issues facing cleantech commercialization today. 

“We want people to start thinking more laterally, not in silos… because a one dimensional approach is a non-starter,” says managing editor Bill Pentland. “Understanding the problems is something that will determine the success of the solutions, and that requires a systems approach.”   

Existing cleantech publications are doing a good job of reporting on specific solutions. The Review hopes to take all of the pieces and fit them together. The publication will be supported by sponsorship and subscriptions. The inaugural issues was built around the theme of carbon offsets. Other issues this year will focus on water, renewable energy and climate change.

Monday, March 16th, 2009

marketing monday: dot freako, pickin on pickens, GEe whiz

This is installment #1 of a regular update – short snippets of commentary – I’ll be doing on happenings related to cleantech marketing. It’s intended to be a smell test. So let’s clear those nostrils: 

  • There’s talk of a new dot “eco” domain, with Al Gore attached as the celebrity. First, the last thing we need in the world is another web domain to manage (I’m still trying to get over the buzzkill from .biz). Second, the whole .eco thing will turn into a greenwashing tsunami before you can say Chevron. I can see it already – friendsofcoal.eco, monsantolovesmothernature.eco… the first one I would probably register would be a squatter site at puertor.eco. According to reports, the founders behind the domain plan to foil possible greenwashing by policing whether people deserve to have the dot or not (they use the term “filter”, but let’s just call it what it would be – a subjective value judgment, aka censorship, aka a non-starter). How about we spend our time doing something substantive instead? Gore is too polarizing for the dot eco thing to gain significant mainstream traction (one eco-leaning journalist recently told me that he’s sick and tired of hearing Gore give the same speech over and over, and even after all that Gore-speak people still don’t believe him). The idea behind the new dot – give 50% of profit to environmental causes – is a fine one, but the people who already own URLs at .com, .net, .org and whatever other dot could just as easily save their dot eco registration money and give 10 bucks a year to a good cause through Kiva, INVEST, Green Microfinance, Practical Action, Global Green and Global Giving. Conclusion: Marketing ploy that’s too clever by half, and ultimately a distraction. Besides, isn’t environmentalism dead?

  • I confess I’m intrigued by the Virtual March that T. Boone Pickens’ organization has announced for early April. If 2 million people really do make their voices heard by policymakers in DC (by phone, email and yes, even something called “fax”) then how bad can that be, right? But I question the whole motivation of Pickens himself. Is it merely coincidence that two central components of the Pickens plan for planetary salvation – wind power and natural gas – just happen to be two of his major areas of investment? Further more, natural gas is just as much in the control of the Middle East and Central Asia as oil (more than two-thirds of world proved reserves). Why replace one foreign addiction with another? Conclusion: I enlisted in the “army”, but I’m pretty sure Congress is only paying attention to the bazillion lobbyists now lurking around every corner of DC (including Pickens) looking for stimulus money.

  • GE’s ecomagination has pulled together an interactive campaign to help people visualize the Smart Grid through an “augmented reality” digital hologram. (Reality is enough for me as is thanks, I don’t need it augmented). But give GE credit for experimenting with something new and different. Unfortunately, I only got as far as the five-part instructions that began with a requirement to print a “Solar Panel Marker” (a what?). Instead, I watched an accompanying video that “shows how it works”. Looks cool. Conclusion: Good if you have 45 minutes in a 6th grade science class. Bad if you are a working stiff like me with two kids that want to go outside and play. Also, need to tone the geek speak way down. 

If you have ideas for other issues to explore, send me a note on Twitter @mrcleantech

Monday, February 2nd, 2009

Green Eggs & Spam: Work Remains for Marketers

According to the State of Green Business 2009 released today, consumers aren’t buying it when it comes to corporate green marketing. The most damning excerpt of the report’s section on marketing cites a Brandchannel.com report that found readers could think of not one brand that was “truly green or going green”. Nice try ecomagination! I guess we’ll have to see if GE’s Super Bowl ads on its smart grid business make any difference in perception. In the meantime, the federal government is also doing its part by refreshing rules governing green marketing claims. The rules are badly needed. As is evident from the SOGB report, it’s still possible to build practically any argument for or against green marketing depending on the data/research you use. We need standards. Here’s the section on green marketing from the report:  

A rise in green marketing efforts has been matched by a nearly equal rise in claims of greenwashing by activists, bloggers, and others. Increased concerns about energy, climate, toxics, and other environmental issues have led some of the largest consumer brands to enter the green marketplace, prodded by retailers such as Wal-Mart, which has been pushing suppliers to offer affordable green products. But with the new players and products has come a new wave of claims about greenwashing, or at least public frustration that companies aren’t doing enough, aren’t telling their stories well, or both. 

Green claims have continued to grow. An Earth Day report revealed that 2007 saw the largest number of green trademark applications since 2000, according to the U.S. Patent and Trademark Office: More than 300,000 applications for green brand names, logos, and tag lines. Companies like Apple, Canon, Clorox, and Fiji Water entered the green marketplace for the first time, raising awareness — but also questions and, sometimes, controversy. Given the lack of definitions, just about anything can be claimed as “green” — or “greenwash” — further muddying the waters. 

One problem is that consumers are ambivalent at best about shopping green. They claim they want to, but they also say that they don’t trust companies. For example, surveys show that the number of people concerned about climate change continues to grow, and that consumers believe businesses should bear the heaviest load in addressing it, but they aren’t convinced that the business sector is doing as much as it should. Marketers aiming to shift their audiences toward making greener purchasing decisions are coming up short for the vast majority of the population, although a small subset is green enough to helpspread the environmental awareness on their own, according to one study. Although about half of those in another survey said they trust companies to be truthful in their environmental marketing and believe companies are accurately presenting information about their impact on the earth, nearly 60 percent would like to see more government regulation of green claims to ensure they are accurate. Given the Federal Trade Commission’s review of green marketing claims launched last year, they just might get it. 

The upshot is that despite the continued upswing in green business activity, there’s no concomitant rise in consumer awareness or trust. Case in point: With no prompting, nearly half of all respondents to one survey were essentially unable to name a single feature of a green home — not solar power, compact fluorescent light bulbs, home recycling, or Energy Star-labeled appliances. And when readers of Brandchannel.com were asked what brand they think of as truly green or going green, the top answer: none at all.            

Wednesday, January 7th, 2009

Cleantech Media Survey: 2009 is Policy, Blog Year

Media covering cleantech expect to pay significant attention to policy in 2009 and they also have declared it the year of blogging and video, according to results of my first Annual Cleantech Media Survey released today. With an Obama administration set to take office and the next president’s commitment to end oil dependence and address climate change, 77% of those surveyed said they expect media to place “significant” emphasis on policy-related cleantech coverage, with the remainder saying policy coverage would be “moderate”. In addition, the survey of more than 100 media – leading blogs as well as mainstream newspapers, magazines and broadcasters – revealed that roughly three-quarters expect to see growing demand for cleantech sector news (from both readers and editors) this year compared to 2008. 

Solar will remain king of the renewables. Two-thirds of those surveyed named solar as the renewable energy source to be most covered in 2009, with wind and next generation biofuels coming in a distant tie for second at 15% each. And of note, media expect energy efficiency – long a tough sell to editors and readers – to be the top non-renewables cleantech story for 2009, with 40% naming it their top choice. Carbon market and related technologies was second at 25%, with EVs and industry consolidation coming in at 17% and 15%, respectively.  

As far as delivery of cleantech news, a majority of survey participants – nearly 60% – said blogs would be the key tool to tell the cleantech story in 2009, with video garnering one-fifth of the vote (Twitter, podcasts and slideshows also received mention). Concerning to the overall state of cleantech media, a total of 62% of those surveyed expect new media to continue to grow and traditional media to continue to shrink, or for new media to take market share from traditional media. A quarter had a balanced POV, expecting both new and traditional media to look for mutually beneficial distribution relationships. 

Among the respondents, there is little consensus on the major untold story for 2009. Categories that received multiple votes included efficiency (including smart grid, building energy use and demand response), coal, power storage and cleantech as the engine for economic recovery. Others receiving votes included CleanNano, bioplastics, the Mideast as solar mecca, urban windmills and water as the next “peak” story, Several media also expect the main untold story to be a negative one – examples included: realization of how long it will take for renewables to become more than a rounding error in the energy diet; new forms of greenwash as companies scramble for Obama dollars, and how solar PV and hybrid cars will contribute nothing significant to cutting GHG.  

Some reporters and organizations have done their own stand-alone predictions for the new year. Kerry Dolan of Forbes, for example, predicts that the grid will be big in 2009, and that solar will continue to soar. American Wind Energy Association also did their predictions for wind in 2009, Jetson Green offered up seven trends to expect in 2009 and Greener Buildings offered up their forecast as well.  

If you’ve seen other media forecasts for 2009, please add them to the Comments section of this post.

Wednesday, December 31st, 2008

'Green', 'Carbon Footprint' Make Banished Word List

It’s official… sort of. According to the 34th annual List of Words Banished from the Queen’s English for Mis-use, Over-use and General Uselessness just released by Lake Superior State University, “green” and “going green” topped the most villainous terms of 2008 (other green themed expressions submitted included “building green”, “greening”, “green technology” and “green solutions”). Close behind was “carbon footprint” and “carbon offsetting”. The survey certainly isn’t the most scientific, but it was based on thousands of nominations from all over the country. Makes me wonder if the organizers of the “Green Inaugural Ball” taking place on the eve of the Obama presidency have time to make a name change. Perhaps they could call it the “Gangrene Inaugural Ball”? Also makes me wonder if media that have embraced green in their branding – i.e. GreenBiz, New York Times’ Green Inc., Greentech Media, Greenbang, Always On Going Green, Fortune Brainstorm: GREEN, etc – need a rethink as well. My favorite pull-quote from the LSSU survey came from a man in Bristow, VA:

If I see one more corporation declare itself ‘green’, I’m going to start burning tires in my backyard”. – Ed Hardiman

Fair warning. But Ed, make sure it’s a green tire.

Tuesday, December 16th, 2008

Special Green Issues Endangered

MediaWeek reported this week that interest from media properties to put out stand-alone green issues is waning in the current economy. So far the list of titles to do away with green issues in 2009 includes Domino, Discover, Sunset and Outside, according to the article. But the sub-text of the story, for me at least, is less about the economic factors involved behind the decision, and more about the growing sense that green no longer needs its own bully pulpit. Beth Brenner, an executive at Discover, is quoted as saying that advertisers don’t need a green-themed issue to tell their story, noting: ““They’ve made it a part of their everyday messaging.”  Which takes me back to a post I made in May of this year about the Discoloration of Green. It makes the case for an end to green as a separate topic, and for the start of green as an integrated thread woven throughout the fabric of business and policy.

Friday, December 5th, 2008

Cleantech Media Shift Continues

CNN and Fortune's loss is the blogosphere's gain. Recent news that CNN let go of Miles O'Brien and Peter Dykstra and did away with its environmental/science core production unit, as well as Sam Whitmore's report that Fortune laid off two cleantech mainstays (and accomplished bloggers) – Todd Woody and Marc Gunther – is just another sign of the times: Mainstream Journalism 0, New Journalism 42. If true, I'm bummed for my friends who lost their jobs, but I'm also very excited for them (as a former foreign correspondent and blogger myself) because these are exciting times. We are on the cusp of the creation of a new media world that is the intersection of industry expertise, technology know-how and changing news consumption habits. Declining audience for traditional media is inversely proportional to increasing audience for new media like blogs, video and aggregator sites. Whoever you believe, the numbers are there to back it up – eMarketer says 94.1 million blog readers in 2007, comScore says total Internet audience of 188.9 million or Universal McCann, which says 346 million worldwide read blogs (60.3 million in the US). No doubt blog-savvy folks like Andrew Revkin (NYT DotEarth) and Jeff Ball and Keith Johnson (Economic Capital at WSJ) will continue to thrive (well, almost no doubt). Its clear that mainstream media is trying to shift to meet the challenge. John Byrne of Businessweek wrote on Twitter this week that Businessweek.com had 722,567 video streams in November, up 370% from the same month in 2007. That's good news. But even if they aren't successful, others that are more nimble and able to get their minds around the dynamics of social media (think Greener World Media,  Greentech Media and Earth2Tech) should be able to fill the void being created by the retrenchment at traditional media. And at the end of the day, Gunther and Woody still have their own brands that they created through their own blogs, and their survival is not dependent on a bloated mother ship.