Truly Greening Digital: The DMA ‘Green 15’ Gain a Digital Edge

With little fanfare, the Direct Marketing Association just published a “refresh” of its “Green 15” sustainable marketing practices first announced in 2007, via the good work of the sustainability team from the DMA Ethics Policy Committee.

With little fanfare, the Direct Marketing Association just published a “refresh” of its “Green 15” sustainable marketing practices first announced in 2007. Via the good work of the sustainability team from the DMA Ethics Policy Committee: Green 15 Best Practices.

The original publication took on such areas as paper procurement and list management, among others, in a bid for the marketing field to reduce GHG emissions by 1 million metric tons through last year. Whether or not that goal was achieved has not been reported by DMA, but then again, there is likelihood of huge reductions in carbon emissions if only for the fact that that there is less mail in circulation today then in 2006 (source reduction).

Yet in the growth of digital, there are also greenhouse gas impacts, among other environmental concerns, says DMA:

The use of certified paper, renewable energy, and consumer messaging to encourage recycling are all well-established best practices that address tangible environmental issues associated with print communications. Today, the rise of data-driven and digital communication requires marketers to address less visible environmental impacts. Toxic ‘e-waste’ impacts people and the environment as a result of improper disposal of electronics. Air pollution, including elevated greenhouse gas emissions, is an environmental and economic consequence of the growing demand for fossil energy to power digital devices and data centers.

The new Green 15 gives some guidance on just what digital and data-driven marketers might look to do:

  • Conduct energy audits at offices and production facilities to identify cost-saving opportunities (energy reduction).
  • Determine the source of power facilities in your facilities, and look to purchase more renewables in the mix gradually. Leverage suppliers of digital and data services to do the same.
  • Use links instead of attachments when sending internal and external communications – minimizing bandwidth and storage space for such documents.
  • Immediately implement best practices for responsible disposal of all electronic equipment at end of life, using such resources as Earth911.com, the EPA’s Web site, and seeking recyclers who adhere to E-Stewards Certificate standards

As anyone on a corporate “Green Team” knows, this list is really just a beginning. The savings and gains in efficiency that can happen as a result, are real—and ripe—for business bottom lines. There’s no reason not to consider these steps. All it takes is an internal champion, and a belief that being digital alone is not being green. Data and interactive communication have to be managed from a sustainability point of view—just as print communicators have done. I am glad the DMA, for one, has taken the lead and given us constructive steps all integrated marketers should consider.

Mythbusters: Digital, Mail and Green Marketing Payback

The “Mythbusters” of Discovery Channel’s hit show get to blow things up while putting myths to the tests of science. At the Direct Marketing Association’s annual marketing conference, I paid tribute to personal heroes Jamie and Adam (the real TV Mythbusters) by blowing up some green marketing myths that have infiltrated both consumer and agency attitudes toward sustainable marketing practice. If left unchecked, today’s common green myths can sacrifice campaign integrity, leave profitable sustainability solutions untapped, alienate consumers and contribute to environmental harm

In this week’s “Marketing Sustainability,” I’ve invited the newly named chair of the Direct Marketing Association Committee on the Environment and Social Responsibility—Adam Freedgood of New York-based Quadriga Art—to share with readers a “myths v. facts” discussion on sustainability and marketing, presented recently at the DMA2012 conference in Las Vegas, NV. —Chet Dalzell

The “Mythbusters” of Discovery Channel’s hit show get to blow things up while putting myths to the tests of science. At the Direct Marketing Association’s annual marketing conference, I paid tribute to personal heroes Jamie and Adam (the real TV Mythbusters) by blowing up some green marketing myths that have infiltrated both consumer and agency attitudes toward sustainable marketing practice. If left unchecked, today’s common green myths can sacrifice campaign integrity, leave profitable sustainability solutions untapped, alienate consumers and contribute to environmental harm. A 30-minute town square session called “Mythbusters: Green Marketing Edition” debunked and discussed a dozen print, digital and multichannel myths, resulting in new opportunities to drive profitability from sustainability of campaign execution.

The troubling truth about green marketing myths is that they appeal to our aspirations and can quickly become ingrained in business practice. For example, “going green costs more,” “digital is greener than print,” “you can save a tree by not printing this article,” and “storing your data in the cloud means fluffy white beams of clean energy will power your campaign data storage, forever.”

Marketing missteps can grant mythological status to simple misconceptions virtually overnight. Consider the classic “go green, go paperless.” This little beauty appeared out of nowhere and now graces billing statements everywhere. There is no quantifiable environmental benefit attached to the claim, which creates risk to brand integrity. Unsupported green claims violate the Federal Trade Commission’s “Green Guides” enacted earlier this year. The “go paperless” phrase subjugates marketing best practice, opting instead for a greedy grab at the small subset of consumers who attach singificant value to a brand’s environmental attributes. A direct response mechanism that acknowledges basic consumer preferences would do just fine.

The evolution of product stewardship regulation, rising resource costs and consumer preferences support the business case for infusing sustainability in all aspects of marketing best practice. The full myth busting presentation is a Jeopardy-style game board rendered interactively in PowerPoint, available to download here.

Here are a few green marketing myths we debunked that offer urgent, profitable insights for print, digital and multichannel marketers:

Myth 1: “Delivering products and services online, or in the cloud, represents a shift toward environmentally friendly communications, compared with print-based media.”

Reality: This myth is busted. Digital communications shift the tangible environmental impact of marketing campaigns away from the apparent resource requirements associated with paper, transport and end-of-life impacts of print campaigns. By way of fossil fuel-powered data centers that are largely out of sight and out of mind, digital carries a surprising set of environmental hazards. A September 2012 New York Times article highlights the growing connection between data centers and air pollution due to massive energy requirements and dirty fossil-based power inputs. The digital devices used to create and deliver online content to consumers contain toxic heavy metals and petroleum-based plastics. Electronic devices are too toxic for our landfills but are recycled at an abysmal rate. According to the Electronics Takeback Coalition, the U.S. generates more than 3 million tons of “e-waste” annually but recycles only 15 percent.

Myth 2: The United States Postal Service (USPS) has struggled to implement comprehensive sustainability strategies due to declining mail volume and the related shortage of revenue available to invest in green activities.

Reality: Myth busted. The USPS is a prime example of an organization that has embraced the business case for sustainability by making extensive investments in greening most aspects of the organization’s operations. USPS has applied a “triple bottom line” approach to sustainability—the perspective that investments in green business must perform on dimensions of profitability, environmental sustainability and stakeholder impacts. Through postal facility energy efficiency retrofits and attention to sustainability at all levels of operations, USPS has saved $400 million since 2007, according to its sustainability report. Through some 400 employee green teams, USPS employs a bottom-up approach to sustainability that produces substantial cost and energy savings.

Myth 3: Green initiatives have a long, three to five year payback period, placing them at odds with other organizational priorities, such as investments in fast-paced digital marketing infrastructure.

Reality: Myth busted. While some sustainability measures, such as building energy efficiency retrofits, carry a payback period of several years depending on finance and incentives, there are innovative approaches to sustainability for direct marketers that yield much faster financial gains. For example, performing a packaging design audit that identifies downsized product packages and renewable materials can produce immediate savings while dramatically reducing environmental impact. Consolidating IT infrastructure and applying best practices in data center efficiency and server virtualization produces fast financial returns for firms operating in-house data centers. Lastly, Innovative programs that engage customers and suppliers in sustainability also produce quick gains with minimal investment. Starbucks’s “beta cup” competition mobilized a global audience of packaging designers, students and inventors in search of more sustainable coffee cups. The design submissions confronted a key sustainability issue head-on, allowing the chain to engage stakeholders in the solution.

Adam Freedgood is a sustainable business strategy specialist and director of business development at global nonprofit direct marketing firm Quadriga Art in New York City. Reach him on Twitter @thegreenophobe or email adam@freedgood.com.

2012 DMA ECHO Green Marketing Award Goes to: Vestas

The Green Marketing Award is not about marketing environmental products, services or causes. Rather, it’s about how efficiency and sustainability—and profitability—are incorporated in a successful marketing campaign. This year’s winner was Vestas Wind Systems (Arhaus, Denmark). The business-to-business campaign, targeting large-company executives at 23 Fortune 1000 firms, was remarkable in how it used market research, social media, direct mail and digital media to provide a truly personalized campaign to convince companies to consider wind energy as a power source for their operations.

During the summer, I had an opportunity to serve as a judge on a panel to select the Direct Marketing Association‘s special ECHO Green Marketing Award winner for 2012. That award was presented recently at DMA’s annual conference in Las Vegas, DMA2012.

The Green Marketing Award is not about marketing environmental products, services or causes. Rather, it’s about how efficiency and sustainability—and profitability—are incorporated in a successful marketing campaign. This year’s winner was Vestas Wind Systems (Arhaus, Denmark). The business-to-business campaign, targeting large-company executives at 23 Fortune 1000 firms, was remarkable in how it used market research, social media (InMail via LinkedIn), direct mail (custom Bloomberg BusinessWeek magazine wraps) and digital media (EnergyTransparency.com) to provide a truly personalized campaign to convince companies to consider wind energy as a power source for their operations.

Vestas tapped two research firms, Bloomberg and TNS Gallup, to complete two studies. One was a Corporate Renewable Energy Index that reported on corporations’ energy consumption, and the second was a Global Consumer Wind Study, that examined consumer demand for renewable energy. The surveys documented that consumers want products made with wind energy, and that corporations are eager to source more renewable energy.

Working with its agency partner, Vertic Inc. (New York, NY), the campaign targeted 419,000 employees and 300 top executives inside the 23 companies. Audiences were segmented by geography, seniority, work role and industry. Opinion leaders also were targeted. Using InMail, LinkedIn company-specific banner ads and the magazine wraps, traffic was generated to 600 individual URLs associated with EnergyTransparency.com where an executive could inspect energy consumption trends in their company and industry sector, along with customer brand preference information relevant to the company.

Overall, the campaign cost less than $1 million, and generated more than 10,000 site visits with average visit lasting more than 7 minutes on average—with 80 percent of opinion leaders visiting the site, and 30 percent of top executives targeted. InMails achieved at 13.37 percent open rate and 5.78 percent conversion rate. Business sales resulting from the campaign were not disclosed.

The judges welcomed seeing 1:1 communication, effective personalized used of social media, magazine wraps, banner ads, and successful delivery of brand interaction among C-suite executives—always a tough challenge. On the sustainability front, judges welcomed use of existing communications channels—magazines already subscribed to, social media networks where professional profiles already are present—to provide messaging, using little in the way of new production materials to convey relevant information. Overall, the campaign focused on energy use, so what better way to reach executives efficiently.

Global, integrated print & digital, b-to-b … congratulations to Vestas Wind Systems and Vertic!

Resources:
This Year’s DMA International ECHO Green Marketing Award Winner (see page 14):
http://dma.seqora.com/prod/Desktop/page.aspx?id=25&mode=SP&name=EchoAwards2012

USPS Talks Sustainability and Its Performance Returns for 2011

The United States Postal Service (USPS) recently released its fourth annual report on sustainability practices and performance. The document serves as a blueprint for any company or brand in the marketing field on how to report progress and hurdles toward improved triple-bottom line performance (financial, social and environmental, being the three bottom lines), and to illustrate the business case for doing so.

Our mantra is ‘leaner, greener, smarter, faster.’ To achieve these goals, we’re adjusting the size of our workforce and delivery network, eliminating waste, reducing energy consumption and encouraging our employees and customers to conserve. When the Postal Service is more efficient, everyone benefits.
—USPS Postmaster General & CEO Pat Donahoe, USPS 2011 Sustainability Report

The United States Postal Service (USPS) recently released its fourth annual report on sustainability practices and performance. The document serves as a blueprint for any company or brand in the marketing field on how to report progress and hurdles toward improved triple-bottom line performance (financial, social and environmental, being the three bottom lines), and to illustrate the business case for doing so.

Transparency is the hallmark of sustainability reporting, just as it is for financial-only reporting. According to the report’s summary, the USPS adhered to version 3.0 of the Global Reporting Initiative (GRI)—”the most widely respected international reporting standard for public sustainability performance disclosure”—for the report’s structure and detail.

For marketers, the report highlights some valuable information and insights on USPS operations, and what opportunities and challenges lay ahead for direct mail. Consider these findings, quoted in first person from the report:

  • RECYCLING—Our recycling efforts had a banner year with $24 million in revenue. We recycled more than 215,000 tons of material in 2011. By using our distribution network in new ways, improving contract services and working with recycling vendors to maximize revenue through economies of scale, we are starting to see results. Strong recyclable commodity pricing during 2011 played a part in our record revenue earnings, but the real story is a long-term strategy of continuous improvement. Also, by using our existing transportation network, we avoid fees from recycling vendors who would make costly stops at each local office. In FY 2011, more than 12,000 facilities participated in the backhaul recycling program, recycling more than 215,000 tons of mixed paper, cardboard, plastic and scrap metal—and earning $24.4 million in recycling revenue. We also encourage customers to recycle by asking them to discard unwanted mail in Post Office lobby recycling bins, instead of our trash cans. Our “Read, Respond and Recycle” mail lobby campaign was launched in 2009. More than 10,000 locations now offer customers lobby mail recycling. This effort continues to reduce waste being sent to landfills.
  • FACILITY ENERGY USE—Our progress toward reducing facility energy use 30 percent by 2015 continues to exceed our annual targets despite a slight increase in facility energy use this year. Since 2003, the Postal Service has reduced total facility energy use by more than 25 percent, nearly the amount of energy used by 90,000 average U.S. households in a year. USPS also reduced energy intensity, which is energy use per square foot of building space, by 22.4 percent in the same time period.
  • CARBON ACCOUNTING SUPPORT FOR MAILERS—We have been preparing a greenhouse gas emission inventory every year since 2007, and we now offer USPS BlueEarth, our new carbon accounting service so our business customers can determine their own carbon footprint for the mailing and shipping services the Postal Service provides. Postal Service business customers are increasingly requesting information about the greenhouse gas emissions associated with USPS services. The calculator [introduced earlier in 2012] uses proprietary USPS methodology to calculate greenhouse gas (GHG) emissions and takes into consideration the type of shipping or mailing product, size and weight, how it’s processed and transported and the distance the package or envelope travels. Energy awareness creates a culture of conservation at USPS.
  • RECOGNITION AMONG GOVERNMENT AGENCIES FOR GHG REDUCTIONS—We were awarded Gold status by The Climate Registry for leadership in reducing GHG emissions by more than 5 percent. Our overall target is to reduce GHG emissions 20 percent by FY 2020 using FY 2008 as a baseline. The Postal Service is among the first of the Registry’s more than 400 members and the first government agency to achieve the recognition. To report our GHG emissions, we are compliant with established protocols set forth by The Climate Registry, the International Post Corporation and under Federal Executive Order 13514 (of President Barack Obama, 2009).
  • LEADERSHIP TRAINING AT USPS INCLUDES SUSTAINABILITY’S BUSINESS CASE—The Postal Service’s leadership programs are designed to develop high-performing leaders to meet the changing needs of USPS into the future. They include a demanding curriculum offered over a six-month period, with classroom instruction and mentoring by existing and future executives on key topics in business finance, project management, leadership principles and presentation skills. The programs culminate with a business case presentation. The 2011 classes were challenged with creating a “sustainability business growth model” to improve USPS waste reduction and recycling and to develop strategies to engage employees in Green Team initiatives. The participants used their new understanding of sustainability to present a business case of their findings before an executive review panel chaired by Chief Sustainability Officer Tom Day.

Additionally the report documents transportation energy costs, as well as water use and conservation (arguably the next focused area for sustainability reporting after greenhouse gases).

Another element to postal sustainability, from a product development perspective, is the USPS’s focus on mail-back programs, working with product manufacturers and others on the creation and execution of services to return used goods (computers, printer cartridges, batteries, etc.) so they can be safely dissembled, disposed or recycled: “Postage‑paid mail envelopes are available in 1,600 Post Office lobbies. These envelopes can be used to ship small used electronics, such as cell phones, ink jet cartridges and digital cameras, to a centralized recycling center, where they’re broken down into usable parts. During 2011, customers recycled 185,000 items—about 22,000 pounds of material. Since the program began in 2008, more than a million electronic devices and printer cartridges have been kept out of landfills.”

There are skeptics—and some responders to this blog—who maintain that the Postal Service can’t afford to be chasing “go green” efforts when its financial life is on the line. Respectfully, I counter that it can’t afford not to! I commend USPS labor and management in their understanding—and leadership—in recognizing waste as a cost, and efficiency as a gain. Every postal customer should thank USPS and its green teams for this continued effort toward sustainability, in all its forms.

Here is the link to the full report: http://about.usps.com/what-we-are-doing/green/report/2011/welcome.htm

USPS ‘Green Teams’ Net $58 Million – If Only Government Postal Policymakers Were So Innovative

Amid the doom and gloom of overall postal finances—where members of Congress and the White House probably have more to do with the current woes of the U.S. Postal Service than all the email in the world—came a timely press announcement from the USPS’s sustainability officer. Posted Feb. 24, I include the full text of the press release here, followed by some commentary: Green Teams Help Postal Service Save Millions

The Postal Service recycled 215,000 tons of material, which saved $14 million in landfill fees and yielded $24 million in new revenue. Employee lean green teams were key to helping the Postal Service achieve the savings and revenue, part of which included more than a $20 million decrease in supplies spending from the previous year.
—USPS Press Release (February 24, 2012)

Amid the doom and gloom of overall postal finances—where members of Congress and the White House probably have more to do with the current woes of the U.S. Postal Service than all the email in the world—came a timely press announcement from the USPS’s sustainability officer.

Posted Feb. 24, I include the full text of the press release here, followed by some commentary:


Green Teams Help Postal Service Save Millions

WASHINGTON, Feb. 24, 2012 /PRNewswire-USNewswire/ — The U.S. Postal Service saved more than $34 million and generated $24 million in 2011 by reducing energy, water, consumables, petroleum fuel use and solid waste to landfills, conservation efforts encouraged by the Go Green Forever stamps. The Postal Service recycled 215,000 tons of material, which saved $14 million in landfill fees and yielded $24 million in new revenue. Employee lean green teams were key to helping the Postal Service achieve the savings and revenue, part of which included more than a $20 million decrease in supplies spending from the previous year.

“Across the country, postal employees are participating in more than 400 lean green teams. Motivated by our sustainability call to action, ‘leaner, greener, faster, smarter,’ they are producing significant results in energy reduction and resource conservation,” said Thomas G. Day, Chief Sustainability Officer.

Lean green teams are another way the Postal Service fosters a culture of conservation, and builds on the agency’s long history of environmental and socially responsible leadership. The teams help identify and implement low- and no-cost sustainable practices to help the Postal Service meet the following goals by 2015:

— Reduce facility energy use by 30 percent,

— Reduce water use by 10 percent,

— Reduce petroleum fuel use by 20 percent, and

— Reduce solid waste by 50 percent.

According to Day, the Postal Service plans to deploy lean green teams nationwide in 2012 to help achieve these goals.

“With more than 32,000 facilities, a presence in every community, and the largest civilian fleet in the nation, we know how important our efforts are to make a positive impact on the environment,” Day added. “Our lean green teams are an important part of our conservation culture, and the effort to reduce our carbon footprint.”

The Postal Service buys sustainable materials and works to reduce the amount of supplies it purchases. The agency first developed a “buy green” policy more than 13 years ago, and has a goal to reduce spending on consumables 30 percent by 2020. Additionally, the Postal Service is working to increase the percentage of environmentally preferable products it buys by 50 percent by 2015. Environmentally preferable products are bio-based, contain recycled material, are eco-labeled and are energy and water efficient.

In its shipping supplies, the Postal Service uses post-consumer recycled content materials, which are diverted from the waste stream, benefiting the environment and helping customers go green.

The Postal Service has won numerous environmental honors, including the U.S. Environmental Protection Agency’s (EPA) WasteWise Partner of the Year award in 2010 and 2011, the EPA’s National Partnership for Environmental Priorities award in 2011 and the Climate Registry Gold award in 2011.

USPS is the first federal agency to publicly report its greenhouse gas (GHG) emissions and receive third-party verification of the results. For more information about the Postal Service’s sustainability initiatives and the Go Green Forever stamps, visit usps.com/green and the usps green newsroom.

USPS participates in the International Post Corporation’s Environmental Measurement and Monitoring System, the global postal industry’s program to reduce its carbon footprint 20 percent by 2020 based on an FY 2008 baseline.

The Postal Service receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations.

A self-supporting government enterprise, the U.S. Postal Service is the only delivery service that reaches every address in the nation, 151 million residences, businesses and Post Office Boxes. The Postal Service receives no tax dollars for operating expenses, and relies on the sale of postage, products and services to fund its operations. With 32,000 retail locations and the most frequently visited website in the federal government, usps.com, the Postal Service has annual revenue of more than $65 billion and delivers nearly 40 percent of the world’s mail. If it were a private sector company, the U.S. Postal Service would rank 35th in the 2011 Fortune 500. In 2011, the U.S. Postal Service was ranked number one in overall service performance, out of the top 20 wealthiest nations in the world, Oxford Strategic Consulting. Black Enterprise and Hispanic Business magazines ranked the Postal Service as a leader in workforce diversity. The Postal Service has been named the Most Trusted Government Agency for six years and the sixth Most Trusted Business in the nation by the Ponemon Institute.

SOURCE U.S. Postal Service

Thank you very much Thomas Day and thank you to each member of the 400 lean green teams at USPS.

Further, the $58 million in bottom-line gains were an improvement over the $27 million in such benefits reported by USPS a year ago. That’s more than double the financial improvement.

As a blueprint for other businesses, many with “green teams” of their own, this USPS announcement offers item-by-item suggested areas of operation companies might focus on to accrue bottom-line gains: facility energy use, water use, fuel use and solid waste generation and diversion.

Perhaps too many business leaders and marketing practitioners still equate sustainability initiatives with “do-good, feel-good” activities that are nonetheless costly or associated with premiums. They best start thinking otherwise. The more quickly brands can leverage green teams for operational gain, and incorporate sustainability as the next great wave of business cost-savings and innovation, the better off their bottom lines will be.

USPS is proving to all of us that there is a “lean” in “green,” and that waste and inefficiencies are cost centers that must be managed. The environmental gains that are driven by such successful management are numerous, and very well may engender good will among employees and customers. Nothing wrong—and everything right—with that, particularly when the financial bottom line benefits are so demonstrable.

Some skeptics might still say, with billions in deficits, USPS cost-savings announcements tied to sustainability are akin to rearranging deck chairs on the Titanic. I believe, however, that USPS management does have a business-like approach to fixing its finances in a digital age, has put forth a credible path to do so, and Congress and The White House need to be facilitating these decisions instead of standing in the way.

Unfortunately, Congress and The White House happen to be two U.S. institutions that are very challenged by balancing budgets.

The Congressional cry of “not in my backyard” over post office closures is part of that symptom, particularly when the USPS has proposed many retail outlet alternatives that are more convenient to citizens, and far less costly to postal ratepayers. The recent Congressional moratorium until May 15 toward consolidation of mail processing facilities is another cog in the cost-savings wheel. Meanwhile, the White House just can’t seem to let go of forcing through a 2010 “exigency” postal rate increase (in its current, proposed federal budget) that, in effect, undermines the entire rationale and integrity of indexed rate caps built into the 2006 postal reform law.

Perhaps there needs to be “lean green teams” at work inside the policymaking offices of Congress and the White House, too. Certainly, sustainability concepts—environmental, social and financial—could work to extraordinary effect inside government, just as it’s doing in forward-thinking businesses everywhere, and trying to do with great success inside the U.S. Postal Service.

Helpful Links:
USPS Press Release covering Green Teams in 2011

USPS Press Release covering Green Teams in 2010