April 21-22, 2010 San Antonio, TX

How to Market and Leverage SustainabilityNewPage CorporationRick Merdan

• Sustainability…what is it?

• What will people pay for & how do we sell it?

– Ease of mind (Management, Marketing)

– Lower financial risk (Legal, Financial, Audit)

– Market image/advantage (Marketing, Sales)

agenda

“Meet the needs of the present without compromising the ability of future generations to meet their needs.”

-- World Business Council for Sustainable Development

sustainability definition

Ease of Mind:

Responsible Fiber Sourcing

Source: www.greenpeace.org

Ease of mind: Management & Marketing

engo continuing focus & pressure

engo continuing focus & pressure

Source: www.ran.org

Ease of mind: Management & Marketing

engo continuing focus & pressure

Ease of mind: Management & Marketing

Source: www.greenpeace.org/kitkat

Source: www.forestethics.org

ENGO supply chain evaluation

Ease of mind: Management & Marketing

end users limiting risk

Ease of mind: Management & Marketing

ease of mind: responsible fiber sourcingWhat to do…

• Know your supply chain!

• Know the fiber sources

• Know the relevant issues

• Based on risk tolerance, take action, and budget for any needed procurement changes

Ease of mind: Management & Marketing

Lower Risk:

The Lacy Act and “Due Care”

Who is this:a) Mark Twain

b) Robert E. Lee

c) That scientist guy from “Back to the Future”

d) John F. Lacey

(Late US congressman and conservationalist)

who’s who?

Ease of mind: Management & Marketing

Source: © World Resources Institute, 2008

corruption & illegal logging activity

Ease of mind: Management & Marketing

• Like “conflict diamonds”, “conflict timber”

• Profits fund Russian and Ukrainian mafias

corruption & illegal logging activity

Ease of mind: Management & Marketing

Chain of Custody

Supplier Reputation Types of Species

Country of Origin

…

“Due Care” elements

Lower Financial Risk: Legal, Financial & Audit

Source: © 2008 NashvillePost.com

first lacey act enforcement action

Source: © Nashville News, 2009

Lower Financial Risk: Legal, Financial & Audit

lower risk: the Lacy Act & “Due Care”What to do…

• Know your supply chain! (again)

• If using imported paper, make sure you have a copy of the import declaration

• Make sure it is not coming from hot spots

• Inform your legal group, make sure they are satisfied, ignorance is not bliss…

Lower Financial Risk: Legal, Financial & Audit

Market Image/Advantage:Paper can be the “Green” Choice

Source: Earthsense survey of 2500 US Adults 18+ from Survey Sampling International’s

panel.

companies identified as “Green”

Market Image/Advantage: Marketing & Sales

retail penetration of green attributes

Market Image/Advantage: Marketing & Sales

paper: green choice for renewable energy

Market Image/Advantage: Marketing & Sales

67%

paper: green choice for recyclability

Market Image/Advantage: Marketing & Sales

Source: Forests for the Next Century, www.rethinkforests.com

paper: green choice for forests and carbon

Market Image/Advantage: Marketing & Sales

Sometimes the truth is rather surprising…

Such as a newspaper can be more environmentally benign than reading news on-line.

paper: green choice for communications

Market Image/Advantage: Marketing & Sales

paper: green choice for innovation

Market Image/Advantage: Marketing & Sales

tools to sell the sustainability message

Market Image/Advantage: Marketing & Sales

market image: paper can be the “Green” choiceWhat to do…

• Know the facts

• Play to our strengths

• Present options

• Stay positive, we have a great story to tell!

Lower Financial Risk: Legal, Financial & Audit

April 21-22, 2010 San Antonio, TX

How to Market and Leverage SustainabilityNewPage CorporationRick Merdan