Direct Mail Insight: Green Envelopes and the Big Picture

bigstockphoto_Mail_Box_With_Letters_2482928Last month, Target Marketing Magazine published an article on trends surrounding environmentally-friendly envelopes – I was on vacation at the time so I didn’t get a chance to pass it along then.  Here’s a link to the article.

As I’ve written on a number of occasions, “green” envelopes are an important part of an organization’s marketing and communications efforts (we have already sold more than a quarter billion envelopes made with 100% certified wind power over the past couple years).  In fact, they are often the first component of a direct mail piece that a recipient sees, and it is important to take that opportunity to send a values-laden message through the materials/inks/energy that are used to produce the piece.

Obviously, using green practices for direct mail should be just one of the many sustainable business practices that organizations employ – otherwise they could be accused of greenwashing.  However, given recent developments in technology, mailers can make their pieces more environmentally-friendly without adding much, if any, cost, which removes the most critical barrier to adoption.  Research has demonstrated that consumers want to buy products from companies that do business in an environmentally-responsible manner.  Marketing collateral is one way for organizations to demonstrate this commitment.

Here’s a link to the full article.

An inside look at the greening of Harvard Business School

HBS Green TeamI’m pleased to include a guest post from Katharine Randel, who is a staff member of the Marketing Unit at Harvard Business School, as well as a member of the school’s Green Team.  I met Kathy earlier this year when I gave a presentation on green marketing and green business issues to the HBS Green Team (HBS is a client of our firm), and I was struck by her passion for and knowledge about sustainability issues.

I invited her to write an article on the work that the HBS Green Team is doing to help reduce the carbon footprint of the school, and I’m excited to feature her report below.

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By Katharine Randel

When I began working at Harvard Business School several years ago, there was no paper recycling program.  Dismayed at how much paper I was putting in the trash every day, I enthusiastically joined a group of MBA students spearheading an effort to bring paper recycling to campus as soon as I learned of their work.  A few months later, recycling bins began appearing around campus, and today all offices have them.  In the years following, several sustainability practices were added to the HBS campus (for example, solar panels were added to the roof of the gym); but as an administrative employee supporting faculty, I was not involved…until recently.

A few years ago, Meghan Duggan was hired as assistant director of mechanical, electrical, plumbing and sustainability projects.  One of Meghan’s initiatives was to start an HBS Green Team of employees across all departments whose mission it is to establish a sense of environmental awareness throughout the HBS community.  The goal of the Green Team is to effect a change in behavior among faculty and staff that leads to a reduction in water and energy consumption and waste generation.  In January, I became the Green Team representative for a building of 250 faculty and staff.

This winter the Green Team held an energy competition in which ten office buildings on campus competed to reduce their energy consumption from the same time period the year prior.  This year the overall campus reduction was 24,880 kWh for one month.  The estimated monthly campus savings was $3,732 with an approximate reduction of 10.45 metric tons of carbon dioxide emissions.   Ten-and-a-half metric tons is the equivalent of CO2 emissions from 1,186 gallons of gasoline consumed.   If HBS faculty and staff maintained their energy-saving behavior for the rest of the year, we could save $44,784 and reduce CO2 emissions by 125.40 metric tons.

But the numerical results are only part of the story.  Another goal of the competition was to raise awareness and educate faculty and staff about sustainable behaviors.  In my building the competition has been surprisingly successful.  Since the competition, more than 20 faculty and staff have offered suggestions for ways HBS could reduce its energy consumption.  I circulate suggested behavioral changes back to the building inhabitants and contact various departments to follow up on suggestions.  When people see me in the hall they now tell me the latest steps they’ve taken, confess their inaction, or tease me (one of my coworkers turned out the lights in the copy room — knowing I was in the room — to “conserve energy”).  I am thrilled; every conversation and email tells me faculty and staff are more aware and the efforts of the Green Team are making a difference.

To learn more about Harvard Business School and Harvard University’s efforts towards environmental sustainability please see the following websites:  HBS Business & Environment and Harvard Operations Services Sustainability.

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Katharine Randel is the Unit Coordinator for the Marketing Unit at Harvard Business School. In that role she collaborates with faculty to create strategies and programs that foster the unit’s cohesion and purpose.  She has been passionate about improving the health of our natural environment since reading Rachel Carson’s Silent Spring in seventh grade. In addition to her HBS Green Team activities she has studied environmental management at Harvard Extension School and has been composting and growing organic fruit and vegetables for 19 years.

Report on Boston Business Journal Green Business Summit

George Donnelly, Editor-in-Chief, Boston Business Journal, presented Ben Grossman, Director of Grossman Marketing Group's Green Marketing & Sustainability Practice, with an award recognizing his firm's innovation in the printing and marketing industry. (Image courtesy Boston Business Journal)

George Donnelly, Editor-in-Chief, Boston Business Journal (R), presented Ben Grossman, Director of Grossman Marketing Group's Green Marketing & Sustainability Practice (L), with an award recognizing his firm's innovation in the printing and marketing industry on Friday, May 15, 2009. (Image courtesy Boston Business Journal)

As I wrote last month, my firm was honored to receive a green business award at the Boston Business Journal Green Business Summit.  We were especially excited to be the only firm in the marketing services space to be recognized.  Many thanks to our client, Zipcar, for nominating us.

The summit was held last Friday, 5/15/09, and we were presented with our award (even the plaque was made with recycled materials!).  Please click here for a list of the other winners.

Here’s a summary of the main points of the article that appeared in Friday’s issue about why my firm, Grossman Marketing Group, was recognized:

  1. We were the first marketing & printing company in our region to offset 100% of its energy with certified wind power – and offer that eco-benefit to our clients at no extra cost
  2. As a result of our wind power initiative, we have produced more than a quarter billion eco-friendly direct mail packages since 2006 for clients including the National Park Foundation
  3. We recently negotiated preferred pricing arrangements with paper producers that enable us to offer printed materials made from a minimum of 25% post-consumer waste at no extra cost over the virgin fiber alternative
  4. We have plans to build a sustainability consultancy

Here’s a link to a PDF of the article. Many thanks for your interest!

Ad Age: Green-Marketing Revolution Defies Economic Downturn

Source: Datamonitor's Product Launch Analytics

Source: Datamonitor's Product Launch Analytics

This week’s Advertising Age features a very interesting and timely (Earth Day is this week) article, titled “Green-Marketing Revolution Defies Economic Downturn.” The writer, Jack Neff, starts off the article with the following statement: “Green marketing is turning out to be surprisingly recession-proof.”

Neff points to product launch and sales data that indicate that even during the recession, consumer-packaged goods manufacturers are seeing significant revenue growth for their green offerings.  In fact, according to Seventh Generation CEO Jeffrey Hollender, his company’s sales were up 50% last year and 20% in March 2009 versus March 2008.

The article continues that as opposed to previous recessions, during which sales of green products “had the air taken out of them,” sales of green products have remained stable (and are still growing) in the current downturn.

Neff includes some interesting tips for green marketers at the end of the article, and I would certainly recommend giving it a quick read.

Here’s a link to the full article.

Trendwatching.com’s 12 eco-trends to watch

Hey all – I wanted to share this interesting briefing on Trendwatching.com about eco trends that present exciting opportunities for marketers and entrepreneurs.

Trendwatching refers to these opportunities as an eco-bounty, and they provide the following definition: “ECO-BOUNTY refers to the numerous opportunities, both short and long term, for brands that participate in the epic quest for a sustainable society. Some of these opportunities exist despite the current recession, others are fueled by it, not in the least because of new rules and regulations. Downturn-obsessed brands who lose their eco-focus will find themselves left out in the cold when the global economy starts recovering.”

Have a great weekend!

Green Hotels: The Business Case for Sustainability

green-coverA chat with the authors of High Performance Hospitality: Sustainable Hotel Case Studies

I had the chance to catch up last month with Amisha Parekh and Michele Diener, two of the three authors of High Performance Hospitality: Sustainable Hotel Case Studies, a lodging industry textbook.  At a time when the Westin is launching its Element line and other hotel chains are playing up their “green” credentials, this book is the first in-depth analysis of the business case for sustainability within hotels.

Amisha and Michele, who also wrote the book with their friend and classmate Jaclyn Pitera, met while they were dual-degree students at the University of Michigan’s Ross School of Business and the University’s School of Natural Resources and Environment.  This book was the outgrowth of a joint master’s project.  Michele currently serves as the Director of Sustainability Strategies at MGM Mirage, Amisha is a strategy consultant for Deloitte, where she is part of the firm’s sustainability team, and Jaclyn is in her third year of the joint program.

The book focuses on eight hotel properties and features detailed analyses of their respective sustainability efforts.  What differentiates this text from other coverage of “green” business is its focus on the details.  As Michele said, “There was no comprehensive book taking a property from design, to construction to operation…from soup to nuts, how a hotel can be more sustainable.  Our intent was to get this information out there to the industry in a very simple way, with a lot of checklists, lessons learned, etc.”

She continued, “There is a matrix at the front of the book summarizing all of the green initiatives [the featured hotels] are doing.  We also categorized the programs based on complexity (how difficult to implement), guest transparency (would it make a positive or negative impact on guests), etc.”

Of course, the economy is top-of-mind for everyone these days, and during our conversation this was a main piece of the discussion.  Amisha and Michele explained that the book is “the business case for sustainability” in the lodging industry, with a focus on the financial benefits to the company to implementing certain steps.  As Michele explained, “At a time when [hotels are making cuts], management sees sustainability as a benefit, helping the organization to consume less water, less energy, and therefore, save money.”

Key takeaways
According to the authors, below are some of the key takeaways from the study.  Although they were derived from their hotel analysis, they are very relevant to all organizations interested in driving change around sustainability:

  • Employee education is key – Green is not something for just the green team to implement, but rather must be part of the company culture.  If it’s part of the culture, it is much easier to implement (and less likely to be cut)
  • Experimentation is important – Some of the products and programs and technologies that the authors studied are new to the industry.  What they found, Michele said, is that “if it’s new to your property, you need to experiment with it, in a few rooms, a floor, at your home –for example a manager installed a low-flow shower head at his home to see how it worked.  Through experimentation, an organization can identify the projects that work, and then execute them more effectively.”
  • One size does not fit all – Amisha said, “We looked at the Ritz Carlton in San Francisco and the Comfort Inn and Suites in Revere, MA.  They both were very strong in educating people about sustainability.  However, the Ritz was behind the scenes, whereas the Comfort Inn was more ‘in your face about it’ to guests.”
  • Financial drivers to going green are there – either from less start-up costs or lower ongoing costs

The authors studied very different hotels, balancing their selection across a number of variables, including size (90-900 rooms), price (mid-rate, convention, luxury), location (urban/rural), diamond rating, guest type (transient, government, business, conventioneer).  In addition, they also considered whether the hotels, all of which are in North America, were existing vs. new buildings, as well as branded versus independent.  However, all were considered green in some respect.

The book did not address the consumer.  However, when asked how customers have responded to hotel sustainability, Michele said, “Anecdotally, the consumer is not willing to pay more for [the green] rooms.  But it has become more of the expectation.  When companies are contracting with hotels for meeting and conventions, those questionnaires now include questions on lighting, recycling, green attributes.  If you want that business, you need to make those efforts.  Corporate clients are increasingly green options.”

The authors also were very grateful for the support they received from the following organizations:

If you’re interested in reading a portion of the book, here’s a link to downloadable chapter, which includes the book’s foreword, executive summary, as well as a case study on the Comfort Inn & Suites in Boston, MA.

Key findings from Direct Marketing Going Green panel

875191As I wrote before, I was on a panel titled “DM Going Green – Separating Fact and Fiction” on January 13.  The session, which was organized by the New England Direct Marketing Association, was interesting and the conversation was lively.

Floyd Kemske, who serves as Editor of NEDMA News and Creative Director at Amergent, wrote up a nice summary from the event.  As it is not online yet, I’m pleased to include select portions of the piece below:

****From NEDMA News****
The session, moderated by Mariah Hunt, Senior Production Manager at Digitas, featured four practitioners from the front lines of the campaign for industry sustainability.

Each panelist provided a unique perspective on sustainability, its achievability, and its benefits. Ben Grossman, Director, Green Marketing & Sustainability Practice, Grossman Marketing Group , for example, has been instrumental in developing a model program for his company, which offsets 100% of its energy use through an organization called Renewable Choice Energy. This allows Grossman Marketing’s customers to credibly claim they make their printed collateral with certified wind power. In addition, Grossman has replaced petroleum-based window material in its window envelopes with corn-based material, which is both compostable and recyclable. Although the corn-based windows cost more, Grossman said, the company absorbs the premium so its customers pay the same as if they’d bought the petroleum-based ones.

According to Grossman, the company’s sustainability practices confer benefits in terms of increased sales, reduced costs, and more productive recruitment. But he advised the audience that sustainability isn’t something you can just say you do. “Customers are smart,” he said, “and they are conversant with the issues. They can discern a real commitment.” Transparency is important, he said. “Give people a way to dig down and investigate.” If you work at it and you are sincere, he said, you can use sustainability as a competitive advantage.

Mary McCormick, Senior Account Manager, Neenah Paper Inc., said her company was committed to manufacturing products with high post-consumer waste content, FSC-certification, and reduced carbon footprint. Before delving into some of the technical aspects of sustainable paper manufacture, she may have confirmed Grossman’s assertion about competitive advantage when she noted that the invitation for President Obama’s inauguration was printed on Neenah paper, chosen because of the company’s sustainability practices.

FSC certification, which is the premier paper certification standard, guarantees a chain of custody for pulp products from the harvest site to the finished product. It doesn’t simply guarantee sustainability. It also addresses social issues (e.g., rights of indigenous peoples) and forest recovery as well. Neenah’s website offers a calculator you can use to find the environmental savings you will achieve by using FSC papers. Neenah has also developed no-new-tree papers, including one manufactured from sugar cane bagasse.

The panel presentations were followed by a lively discussion in which some members of the audience sought proof that sustainability practices could increase sales. None of the panelists could cite such proof, but Ben Grossman stepped up and said that if anyone in the room wanted to conduct a test to determine whether a legitimate green logo would boost response to a mailing, his company was willing to subsidize it. There’s a man who backs up his belief in sustainability!