The Oxymoron of Sustainable Consumption

Tish Lascelle

Johnson & Johnson

May, 2007

Disclaimer

This talk is not....

-- a bashing of consumerism-- the opinion of J&J or it’s Consumer Companies

But it is....

-- an exploration of green consumerism-- a look at whether we should be doing more in this arena, and if so, what?

“Most of the environmental issues we see today can be linked to consumption.”

“Unprecedented consumer appetite is under-mining the natural systems we all depend on, and making it even harder for the world’s poor to meet their basic needs.”

Worldwatch Institute, 2004

“Unless you are doing the loincloth thing,

you need stuff....

CEO Graham Hillwww.treehugger.com

...so you might as well vote with your dollars and buy the right stuff.”

Who is the Green Consumer and how do we make more of them?

~20 - 60%of Americans

The UnablePersonal or community circumstances make it impossible/difficult.

The Tree Huggers-- Personal values actually translate into purchasing.-- Sustainability is more than an aspirational ideal.

The Menu Environmentalists

Profess a commitment to environment, and it does drive some behavior, but not all.

The SelfishIt’s not a matter of education. They know better and they don’t care.

~10% of Americans

~ 25% of Americans

The Menu Environmentalists

The Menu Environmentalists

“The Awakening Consumer”(awakening to the power they wield in the marketplace)

53% Female47% Male

Median Age – 42.3Median household income -- $59.4KHighly educated (college plus)

37% top 10 markets – Pacific/West

51% Suburban34% City

Willing to pay more to be green

Have run for or held office, or attended a rally or have written to a politician.

Life-long learners

Charitable

Physically active – keep fit and have funTechnologically “with it” / even geeksLifestyle: authentic, inspired, creativeMindset: curious, vocal, self-confident

Belong to environmental group or signed environmental petition

How do we engage the awakening consumers and shift them further green?The desire to be green doesn’t always translate into behavior.

1. Stop vilifying the imperfects greens.Guilt doesn’t make anyone feel good.

2. Do more point-of-purchase education.

Help consumers make informed choices and sort out environmental issues. Without information, they tend to default to other differentiators (e.g., price/brand recognition)

3. Combine education with credibility.

Some companies use independent sources of evaluation.

Some companies aggressively promote their environmental policies.

4. Motivate by emotion and persuade by reason.

OUTCOME DESIRED: Sustainable coffee bean plantations.

APPROACH: Talk about fluffy birds. 80% of migratory birds comefrom coffee bean plantations.

OUTCOME DESIRED: Save energy when washing clothes.

APPROACH: Detergent makers can talk about switching to low temperature laundry soaps because it’s good for your clothes.

4. Motivate by emotion and persuade by reason.

OUTCOME DESIRED: CO2 reduction. Energy conservation.

APPROACH:

Motivate by reason: “Environmental Health is Human Health.” (We are the world’s largest health care company.)

Motivate by emotion: We linked our ClimateCare literacy campaignto polar bears.

5. Is there a role for government/EPA?

Most marketing promotes over-consumption. Can the government do more to promote smart consumption?

Independent validation / credibility.... programs like Energy Star and Performance Track

Other ideas?