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   Dragonfly is a Dragon Rouge publication
   driven by debate and insights, focusing on the
   key issues facing the brand and design industry


   Sustainability Inside
   dragonrouge.com




                                                                                      Buyer
                                                                                      behaviour




New product
development



                                                     sustainabil ty
                                                                i
                                                       inside
                                                           _give your brand
                                                          and business a new
                                                           competitive edge




 Positioning
                                                                                         Insights




                       Supply chain


                                                      Innovation
dragonrouge.com                                                                                          Dragonfly_03




“We are already finding
 that tackling sustainability
                                              Welcome to this special edition of
 challenges provides                          Dragonfly, dedicated to brands and
 new opportunities for                         sustainability. The world’s great
 sustainable growth: it                      environmental and social challenges
                                              – climate change, water shortages,
 creates preference for our               biodiversity, health, poverty and equality
 brands, builds business with               are moving to the top of almost every
 our retail customers, drives                corporate agenda, despite the global
                                         recession. And there is increasing evidence
 our innovation, grows our                  that leading companies are beginning
 markets and, in many cases,                  to embed sustainability into their
                                             strategies, operations and products.
 generates cost savings.”
                                                                 We think this makes it an ideal time to explore how sustainability
 _PAUL POLMAN                                             can be integrated into brands. We don’t see sustainability as a separate
 CEO, Unilever                                            thing or set of issues done alongside normal brand development or
                                                          innovation processes. Sustainability needs to be in these activities, and
                                                          in the best cases driving these activities. Dragon Rouge believes that
                                                          brands have an important role in helping to change behaviour and attitudes
                                                          towards more sustainable consumption and production. And equally,
                                                          that sustainability provides a powerful platform through which brands can
                                                          deepen their connections, engage their stakeholders and deliver against
                                                          increasing expectations.

                                                                 Our ‘Sustainability Inside’ process weaves the material, social and
                                                          environmental impacts of the brand with its positioning, proposition and
                                                          history to help focus activities and communications, where they will have
 Contents                                                 most relevance and potential for opportunity creation and brand building.

 03_Welcome
                                                          	      So	perhaps	a	separate	Dragonfly	on	sustainability	integration	is	really	
                                                          something of a contradiction in terms, as we would rather see sustainability
 04_What's	making	us	go	WOW!	                             covered	in	every	issue	of	Dragonfly	(which	it	is!).	However,	it’s	a	subject	that	
 06_Communicating and connecting:                         is on the agenda for so many people at the moment that we felt it would
    the new rules for sustainability                      be	justified	to	devote	a	whole	issue	to	it.	
 08_The 4i’s of Sustainable Brands

 10_Emerging sustainability concepts

 12_Q&A: Ask the experts

 14_Q&A: David Brunt, Director, Dulux

 15_Brand Manager in 2015                                                                                                                     Enjoy!
 16_5 things to do now
0 4_Dragonfly                                                                                                                                 Sustainability Inside                                                          dragonrouge.com                                             Dragonfly_05




      WoW                       WhAT'S MAKING uS Go WoW!
                                 The last year has been a year of really bright ideas and innovation in the area of
                                 sustainability. We’ve been watching closely and picked out 10 that we see as
                                 being particularly interesting; either for their behaviour change potential, technology
                                 application	or	just	downright	cool	and	smart.	Have	a	read	through	and	see	what	
                                 you think. We hope it inspires you to think beyond for your brand to consider what
                                                                                                                                                                                                                                                WWF – Open Planet Ideas
                                                                                                                                                                                                                                                	     C
                                                                                                                                                                                                                                                      	 rowd-sourcing	is	flavour	of	the	month	
                                                                                                                                                                                                                                                      and last year Sony teamed up with WWF
                                                                                                                                                                                                                                                      (World	Wide	Fund	for	Nature)	to	harness	
                                                                                                                                                                                                                                                      the collective power of communities.
                                                                                                                                                                                                                                                      Open Planet Ideas challenged the creative
                                                                                                                                                                                                                                                      audience to come up with ideas on how
                                                                                                                                                                                                                                                      to repurpose existing technology for
                                                                                                                                                                                                                                                      environmental and social good. Receiving
                                                                                                                                                                                                                                                      over 300 inspirations and 400 concepts, the
                                                                                                                                                                                                                                                      winning 'Green Book' entry proposed an
                                 might	just	be	possible.	                                                                                                                                                                                             innovative app to encourage more localised
                                                                                                                                                                                                                                                      volunteering.	Nine	months	on,	Sony	has	just	
                                                                                                                                                                                                                                                      announced	a	partnership	with	YouthNet	to	
                                                                                                                                                                                                                                                      bring the idea to market.

                                                                                                                                                                                                                                                Unilever – Sustainable Living Plan
                                                                                                                                                                                                                                                      Two billion times a day, somebody, some
eBay – Box                                                                                                 Nike – Better World                                                                                                                        statistic, somewhere uses a Unilever
	 	 his	one	just	makes	sense.	In	2010	
  T                                                                                                           From refurbishing basketball courts                                                                                                     brand. The latest piece of inspiration from
  eBay launched their own box-packaging                                                                       in	New	York	state	to	using	sport	to	halt	civil	                                                                                         this global superbrand is the Sustainable
  programme that enabled sellers to                                                                           war	in	the	Ivory	Coast.	Nike	Better	World	                                                                                              Living Plan. Part mantra, part business
  package sold products appropriately.                                                                        gives	a	full	account	of	Nike’s	behind	the	                                                                                              plan, this site sets out their manifesto for
  With shipping and packaging being a                                                                         scenes efforts to make a difference to our                                                                                              improving health and well being, reducing
  major	environmental	issue	for	the	global	                                                                   planet and communicating. What strikes                                                                                                  environmental impact and enhancing
  e-tailer, this is a bold move. The boxes                                                                    us here is the tone of voice and sheer                                                                                                  livelihoods. And they’ve measured and
  are made from 100% recycled content                                                                         breadth of activities. All packaged up in                                                                                               recorded the environmental impact of over
  and contain water-based inks. Each has            Ecosia – The green search engine                          a tone that we’ve come to expect and                                                                                                    1,600 of their products too. Impressed yet?
  its own tracking chip so buyers can see              Search the web and save the planet at                  admire from this brand.                                                                                                                 Unilever continue to set the benchmark
  the whereabouts of their goods in transit.           the same time. Ecosia have teamed up                                                                                                                                                           when it comes to integrating sustainability
  Good on you eBay.                                    with Bing and Yahoo, to deliver a really            Barcoo – Mobile phone app                                                                                                                  into their brands. Time to observe if you
                                                       neat way to contribute to the environment.             Launched in April 2010, Barcoo is a                                                                                                     haven’t already.
                                                       Every time a visitor clicks on one of the              mobile phone app that could create a
                                                       sponsored links money goes to Bing or                  new generation of ethical shoppers by                                                                                             Ikea – Reuse and resale initiatives
                                                       Yahoo. They then give it to Ecosia and they            allowing them to check a company's social                                                                                               Often challenged for its commitment to
                                                       invest it in the conservation of rainforests           responsibility rating and environmental                                                                                                 sustainable development Ikea has come
                                                       around the world. Smart and simple stuff.              credentials. The app also provides                                                                                                      out	fighting	in	2010.	They	launched	their	own	
                                                                                                              shoppers with price comparison data                                                                                                     second hand furniture market for customers
                                                    Kickstarter – Creative funding                            available by other apps. But it’s the                                                                                                   to buy and sell goods through the brand's
                                                    	 	 eard	of	them?	They’re	now	the	largest	
                                                      H                                                       ethical angle that has caught the eye                                                                                                   website. They’ve also teamed up with the
                                                      provider	of	creative	projects	in	the	world.	            of consumers and watchdogs alike. A                                                                                                     Furniture	Reuse	Network	(FRN)	and	its	300	
                                                      They’re turning dreams into reality by                  great innovation to change our everyday                                                                                                 UK members to encourage people to donate
                                                      connecting people and groups around                     shopping habits for the future.                                                                                                         used furniture to local charities through
                                                      shared interests. Kickstarter launched                                                                                                                                                          take-back programmes.
                                                      in	2010	and	has	grown	in	profile	and	
                                                                                                                                                                       Credit: eBay, Ecosia, Puma, Kickstarter, Barcoo, WWF




Gazelle – Waste management                            prominence ever since. It’s a new way                                                                                                                                                         Puma – Bag Box
  How	many	old	mobiles	have	you	got	sat	              to fund creative ideas and ambitious                                                                                                                                                            Puma will roll out its new packaging in the
  in a drawer? Four? Five? Gazelle’s the              endeavors, powered by a unique 'all or                                                                                                                                                          second half of this year. It will sell its shoes
  answer to your plight. Give them the make           nothing'	funding	method	where	projects	                                                                                                                                                         in cardboard frames wrapped in reusable
  of the phone and the age and they’ll give           must be fully funded or no money changes                                                                                                                                                        shoe bags – called the 'Clever Little Bag’.
  you a price. There and then they’ll even            hands. So if everyone does have a book in                                                                                                                                                       In doing so the company aims to use 65%
  pay for postage and packaging. Gazelle              them, here’s your chance to shine.                                                                                                                                                              less	paper,	and	save	20m	megajoules	of	
  has become a go-to resource for millions                                                                                                                                                                                                            electricity, 1m litres of water and 500,000
  of people looking to sell and recycle used                                                                                                                                                                                                          litres of diesel and 8,500 tonnes of paper a
  electronics. It’s changing the way we                                                                                                                                                                                                               year.	It	looks	quite	cool	too.	How	long	before	
  manage our waste and rewarding us for                                                                                                                                                                                                               this new innovation becomes the standard
  our actions.                                                                                                                                                                                                                                        stock on the high street?
dragonrouge.com                                                                                                                      Dragonfly_07




   Sustainability has given a spur to innovation in many     Rule No. 1: The old rules still apply. When it comes to covering
   companies. New thinking into how to do more, better,      off the basics of what people need to know about a company’s
                                                             track record, good practice standards of reporting are essential.
  with less impact and how to put back, not just take out,   Set out meaningful targets and track the brand or company’s
                                                             performance	against	them.	Never	let	the	glitz	of	cutting	edge	
  have changed operating models and sparked streams of       channels overwhelm the importance of core content. People still
new product ideas. That vibrancy of thinking needs to flow   need to know what you aim to do and what you have done.

 through into sustainability communications, too. Getting
                                                             Rule No. 2:	Make	it	human	scale.	Don’t	just	confine	yourself	
         it right can transform brand relationships.         to	broad	policies	and	objectives,	let	people	know	exactly	what	
                                                             these mean for what they buy. SC Johnson have taken a lead
                 But what are the new rules?                 with their website ‘What we’re made of’ which gives a complete
                                                             run down of their products’ ingredients. Clothes brand,
                                                             Icebreaker, allows their customers to track where each of their
                                                             products have been sourced and made through individual ‘baa
                                                             codes’ that get right down into where the lamb was reared and
                                                             the wool sheared.


                                                             Rule No. 3: Open yourself up to scrutiny and stir up debate.
                                                             There	is	genuine	potential	in	technology.	It	allows	people	not	just	
                                                             to dig deep into your record and tell you what they think, but to
                                                             debate with each other. You can learn a lot from those
                                                             conversations.	Sustainability	communications	can’t	be	just	one	
                                                             way,	they	don’t	even	need	to	be	just	two	way.	The	technology	
                                                             exists in Web 2.0 to create multi-lateral discussions and ideas
                                                             exchanges. SAP’s interactive sustainability map is a pioneering
                                                             example of what can be achieved. Browsers can interact with            Corona ‘Save the Beach’ campaign
                                                             the data and each other and comment on SAP’s performance.
                                                             Everyone can have a stake in making progress.


                                                             Rule No. 4: Call for ideas. Open sourcing is part of the zeitgeist
                                                             in product development so make it part of your approach to
                  Communicating                              sustainability communications too. Tell your customers the story
                                                             of your sustainable brand record so far and encourage them to
                 and connecting:                             help you write the next chapter and improve sustainability
                                                             performance when the product leaves you and reaches them.
                                                             Levi’s worked out that the biggest impact their products have
                the new rules for                            on the environment comes from drying. So they teamed up with
                                                             Myoo	Create	and	launched	the	‘Care	to	air’	campaign	to	find	
                 sustainability                              ‘the most innovative, covetable and sustainable air drying             Icebreaker ‘baa’ campaign

                                                             solution’ for clothes.


                                                             Rule No. 5:	Never	forget	your	friends.	Plenty	of	involvement	and	
                                                             interaction is great and social media a perfect tool. But you




                                                                                                                                                                                                                 Credit: Levi's, Icebreaker, Corona
                                                             need to keep the dialogue going. Launching a Facebook page
                                                             in support of an initiative and then neglecting it is worse than
                                                             never	creating	it	in	the	first	place.	It	reeks	of	tokenism.	Keep	
                                                             active and alive.


                                                             Rule No. 6: Put	some	joy	into	it.	Involving	consumers	is	a	critical	
                                                             part of sustainability communications. You want them to do their       Levi's ‘Care to Air’ campaign
                                                             bit to help you do yours and make products sustainable
                                                             throughout their lifecycle. But don’t guilt trip them with critique
                                                             or turn them off with too worthy a tone of voice. You want them
                                                                                                                                           “The ‘Corona Save The Beach
                                                             to	enjoy	the	collaboration.	Mexican	beer	brand	Corona	is	a	great	           Hotel’ is an example of the power
                                                             example of getting it right. With their ‘Save the Beach’ campaign,
                                                             they	picked	a	relevant	issue	(the	preservation	of	beaches)	and	              communication and PR have to
                                                             had their youthful target audience always in mind. The campaign
                                                             was rooted in social media and by tapping effectively into the                make good things happen and
                                                             perception of Corona as a summer brand, their campaign
                                                             was true to their brand and achieved real traction.
                                                                                                                                                change mentalities.”
                                                             Now	that’s	a	sustainable	communications	campaign	that	                                  Fernando Godoy Sánez de Heredia
                                                             we	can	all	raise	a	glass	to!                                                         General Creative manager of El Señor Goldwind
0 8_Dragonfly                                                                                                    Sustainability Inside               dragonrouge.com                                                                                    Dragonfly_09




WhERE aRE yOU?
_The 4i’s of Sustainable Brands


Sustainability works for your
brand when it’s less about
a brand claim, and more
about a commitment or way
of working. See it as a journey
for your brand.
Getting going on sustainability can be
challenging, as it can feel like you need to
be perfect or whiter than white in everything
you do. And if you’re already active, even
leading on sustainability, you can’t stand
still or you’ll get left behind as the debate
moves on around you.

We think about sustainability as a spectrum
or continuum of brand performance and
commitments – the 4i’s of sustainability
integration - from laggard to leader, from
beginner to trailblazer.




                                                                      Investigate                        Internalise                      Innovate                            Inspire
                                                                                                                                                                             ~ Work to a social, environmental
                                                        Mentality    ~ Minimum standards                ~ Compliance culture             ~ Opportunity
                                                                                                                                                                               and economic bottom line
                                                                     ~ Denial or defuse                 ~ Monitoring and reporting       ~ Differentiation
                                                                                                                                                                             ~		 olistic,	systems-based
                                                                                                                                                                               H
                                                                     ~ Reducing risks at best           ~ Management issue               ~ Innovation
                                                                                                                                                                             ~		 thics	in	DNA,	values-led
                                                                                                                                                                               E
                                                                     ~ By the book                                                       ~ Creativity


                                                                                                                                                                             ~ Leadership - beyond the
                                                      Drivers and    ~ Risk mitigation                  ~ Enhances reputation            ~ Consumer recruitment
                                                                                                                                                                               business case
                                                         benefits    ~ Licence to operate               ~ Cost savings                   ~ Revenue
                                                                                                                                                                             ~ Create new sustainable markets
                                                                                                                                         ~ Existing customer loyalty
                                                                                                                                                                             ~ Social business models
                                                                                                                                         ~ Access to new markets
                                                                                                                                           and customers

                                                                                                                                                                             ~ Change, shape, lead categories
                                                     What they do    ~ Philanthropy, charity,           ~ Stakeholder engagement         ~ Employee engagement
                                                                       community programmes                                                                                  ~ Divesting unsustainable products
                                                     on strategy?                                       ~ Efficiency programmes          ~ Supplier partnerships and
                                                                     ~ Build internal business case     ~ Sustainability programme         strategic relationships           ~ Industry leadership/
                                                                     ~ Developing policy and strategy     with targets                   ~ Carbon and water                    co-operation
                                                                                                        ~ Supplier auditing              ~ Footprinting
                                                                                                        ~ Customer auditing              ~ Sustainability in staff rewards

                                                                                                                                                                             ~ Champion causes
                                                     What they do    ~ Green-wash                       ~ Communicate what they do       ~ Focus on differentiation                                               Set a task:
                                                                                                                                                                             ~ Sustainability advocates
                                                    on activation?   ~ Defend themselves                ~ Innovate, communicate          ~ Sustained programme that
                                                                                                                                                                                                                  1. Which brands do you think would
                                                                     ~ Attack competition                 on a single issue                is brand relevant                 ~ Pilot new technology
                                                                                                          i.e. improve packaging                                                                                     fit along the four stages of the
                                                                                                                                         ~ Connect messaging across          ~ Realign business models
                                                                                                        ~ Single sustainability or         the marketing mix
                                                                                                                                                                                                                     sustainability continuum? Name
                                                                                                                                                                             ~ Choice edit or influence
                                                                                                          CSR campaign                                                         for customers
                                                                                                                                                                                                                     three at each stage. Where would
                                                                                                                                                                                                                     you position your brand?

                                                Where are you and    1.                                 1.                               1.                                  1.                                   2. What strategy would you adopt
                                                 the competition?    2.                                 2.                               2.                                  2.                                      to move along stages of the
                                                                     3.                                 3.                               3.                                  3.                                      continuum? Or how would
                                                                                                                                                                                                                     continue to stay ahead?
dragonrouge.com                                                                                                                                                               Dragonfly_11



EMERGING                                                                                                                                                                                   Building sustainability through brands

SUSTaINaBILITy                                                                                                                                                                             Sustainability	must	function	not	as	an	adjunct,	but	as	
                                                                                                                                                                                           an integrated component of your brand. We see this as


CONCEPTS
                                                                                                                                                                                           sustainability and brand integration. Sustainability leaders
                                                                                                                                                                                           have found that the brand is a great place to ‘anchor’
                                                                                                                                                                                           sustainability	plus	it	delivers	the	most	business	benefits	
                                                                                                                                                                                           too. 72% of CEO’s in the above-mentioned survey cited
                                                                                                                                                                                           “brand, trust and reputation” as one of the top three factors
                                                                                                                                                                                           driving them to take action on sustainability issues. Some
                                                                                                                                                                                           companies are delivering their corporate sustainability
                                                                                                                                                                                           commitments to customers and consumers through their
                                                                                                                                                                                           product brands – Unilever’s Brand Imprint model is a
                                                                                                                                                                                           tool to help do this. Others are bundling up activities to
                                                                                                                                                                                           fashion a convincing, cogent and cohesive sustainability
                                                                                                                                                                                           story that is faithful to their brand positioning. IBM’s
                                                                                                                                                                                           Smarter	Planet	springs	to	mind.	On	the	flip-side,	brands	
                                                                                                                                                                                           can help sustainability. They are great at introducing new
                                                                                                                                                                                           sustainability concepts and behaviours, and making them
                                                                                                                                                                                           feel normal.




                                                                                                                                                                                                                                                            New concepts emerge
                                                                                                                                                                                                                                                            Old thinking around the sustainability lexicon centred
                                                                                                                                                                                                                                                            around terms like reduce, minimise, optimise, and
                                                                                                                                                                                                                                                            motivations like cost savings, and risk reduction.
                                                                                                                                                                                                                                                            New	models	of	sustainability	shift	beyond	correcting	
                                                                                                                                                                                                                                                            existing	mistakes	towards	zero	impact	objectives,	
                                                                                                                                                                                                                                                            restoring, and giving back to nature and society.
                                                                                                                                                                                                                                                            Timberland	aims	‘to	leverage	[their]	corporate	influence	
                                                                                                                                                                                                                                                            to make a positive contribution to the world’, whilst
                                                                                                                                                                                                                                                            InterfaceFlor has its Mission Zero to be a zero impact
                                                                                                                                                                                                                                                            business by 2020, thereafter being environmentally
                                                                                                                                                                                                                                                            restorative. Similar concepts such as ‘cradle-to-cradle




                                                                                                 81%
                                                                                                                                                                                           Disruptive cleantech brands                                      design’, championed by Aveda and Puma, Biomimicry
                                                                                                                                                                                           Revolutions have protagonists, antagonists, heroes and           (aped	by	Nike	and	Arup)	and	closed	loop	material	cycles	
                                                                                                                                                                                           villains; the sustainability revolution will be no different.    and	business	models	(M&S	and	Philips)	will	influence	
                                                                                                                                                                                           New	brands	will	emerge,	new	technologies	will	evolve	and	        the next generation of smart designers and managers to
                                                                                                                                                                                           different categories will develop. Despite the recession,        design brands for zero waste, that respect nature and use
                                                                                                                                                                                           the	clean-tech	revolution	(companies	built	around	new	           its processes or principles.
                                                                                                                                                                                           green	and	clean	technology)	continues	apace.	Expect	this	
                                                                                               of CEo’s stated that                                                                        to rival the digital revolution at the turn of the millennium.
                                                                                            ‘sustainability issues are                                                                     This gave rise to a new generation of global power brands:       Sustainability: a fresh look at creating value
                                                                                                                                                                                           Google, eBay, Amazon and Facebook to name but a few.             Moving towards sustainability will be a challenge for many
                                                                                          now fully embedded into the                                                                      In the near future we can expect a cleantech power brand         brands. It can require big changes to technology, materials
                                                                                           strategy and operations of                                                                      to emerge in a similar fashion. Who will be the Google of        and even customer behaviours. But sometimes even
                                                                                           their company (compared                                                                         the cleantech world? Most likely a current start-up or high      that will not be enough as brands will need to look at the
                                                                                                                                                                                           growth cleantech company that not only has superior              sustainability of their business model – where increased
                                                                                              to just 50% in 2007)’                                                                        technology and a winning business model, but smart               profit	is	dependent	on	increased	resource	use,	product	
                                                                                           Source:	UN	Global	Impact-Accenture	CEO	study	2010                                               communication	and	customer	connection.	If	Dragonfly	             obsolescence	or	waste.	Happily	new	models	of	enterprise	
                                                                                                                                                                                           were a betting type, then our money would be on Shai             are being devised and implemented.
                                                                                                                                                                                           Agassi’s Better Place. Who is yours on?
                                                                                                                                                                                                                                                            The	January	edition	of	the	Harvard	Business	Review	saw	
Sustainability is a dynamic          Sustainable business goes mainstream                 Beyond reputation – towards growth                                                                                                                                management guru Michael Porter coin the term ‘Creating
process with constantly evolving     The	Accenture/UN	Global	Impact	CEO	                  and innovation                                                                                                                                                    Shared	Value’	for	just	this	challenge.	This	“involves	creating	
                                     survey	from	late	2010	heralded	a	‘New	Era	           Wind	back	just	five	years	to	an	age	when	                                                                                                                         economic value in a way that also creates value for society
targets. Yesterday’s pioneering      of Sustainability’. A staggering 81% of CEO’s        companies’ sustainability targets revolved around                                                                                                                 by addressing its needs and challenges.” Blurring the
practice becomes today’s hygiene     stated that ‘sustainability issues are now fully     saving CO2, water, waste or increasing charitable                                                                                                                 traditional boundaries between business, corporate social
                                     embedded into the strategy and operations            donations.	At	best	the	benefits	were	reputational	                                                                                                                responsibility, philanthropy and social enterprise, this
factors for a business.
                                     of	their	company	(compared	to	just	50%	              coupled with cost savings. Today brands see                                                                                                                       concept is already taking shape through brand pioneers
                                     in	2007)’.	It	is	on	the	radar	of	almost	every	       sustainability as a path to growth and revenue                                                                                                                    such as Grameen Danone.
Whether a sustainability leader      business leader with 93% of them ‘believing          and set their goals and targets accordingly.
or laggard, knowing what is on       that sustainability issues will be critical          Forward-thinking brands focus on making                                                                                                                           Danone	has	partnered	with	Nobel	Prize	winner	Muhammad	
the horizon is critical to staying   to the future success of their business’.            money and creating markets; P&G, DuPont                                                                                                                           Yunus’	Grameen	Bank	to	launch	a	joint	venture	as	a	social	
                                     Does sustainability feel so embedded and             and Philips all have sales or revenue targets                                                                                                                     business providing a low-cost, highly nutritious, low eco-
one step ahead and anticipating      mainstream to you? If yes, don’t rest on your        from sustainable products. GE CEO Jeff Immelt                                                                                                                     impact dairy product for the Bangladeshi market produced
                                                                                                                                                         Credit: InterfaceFlor, M&S, IBM




potential issues.                    laurels,	as	sustainability	is	a	journey	that	will	   notes “sustainability is the business strategy. It’s                                                                                                              locally. It is distributed using local channels and all the
                                     need ongoing commitments. If not, time to            our roadmap for how we operate and how we                                                                                                                         profits	are	ploughed	back	into	the	business.	Rumour	has	it;	
_What new themes, concepts           get going or you may be left behind.                 innovate”. P&G doesn’t target sustainability as                                                                                                                   these	are	the	hottest,	most	sought-after	jobs	in	Danone.
and trends are emerging?                                                                  niche,	but	at	mainstream	consumers.	No	longer	
                                                                                          confined	to	small	segments,	sustainability	now	                                                                                                                   This is a win-win for business and society, but it’s also a real
                                                                                          finds	traction	across	the	marketplace	offering	                                                                                                                   stretch for ‘brand-as-usual’. It’s here that you really get the
                                                                                          major	opportunities	for	brands.                                                                                                                                   sense of how transformational sustainability can actually be.
12_Dragonfly                                                                                     Sustainability Inside   dragonrouge.com                                                                                                                                     Dragonfly_13




                                                                                                                         01. “I’m a new brand manager with                   CS adds: Your brands may position themselves          CS adds: Sustainability improvements can
                                                                                                                                                                             differently on sustainability because of the          provide opportunities for brand differentiation
                                                                                                                         sustainability in my job description.
                                                                                                                                                                             different markets they operate in or their            and innovation that can attract users and lead
                                                                                                                         I’ve been tasked with implementing                  different	customer	profiles,	but	it	makes	sense	      to sales increases, but mostly sustainability
                                                                                                                         it into my brand, but I don’t know                  to use the same approach to integrating               acts as a support to other brand features and
                                                                                                                         where to start”                                     sustainability within the brand. Should               benefits,	helping	to	strengthen	the	brand’s	
                                                                                                                                                                             sustainability be embedded within the brand           position with customers in the long-term.
                                                                                                                         AJ: Sustainability is complex but we found          model or vision? Should each brand have a             Ultimately you should try to track this through
                                                                                                                         the best way to start is by thinking of a few       clear sustainability strategy and plan, integrated    traditional brand metrics like how it reinforces
                                                                                                                         key impacts that can be addressed relatively        within the overall brand strategy?                    existing brand attributes or builds your
                                                                                                                         effectively. These could include packaging                                                                reputation, loyalty and trust.
                                                                                                                         design, product waste prevention, sourcing raw
                                                                                                                         materials from accredited sources, fairly traded
                                                                                                                                                                             03. “I’m an internal sustainability
                                                                                                                         products, energy and water saving.
                                                                                                                                                                             champion but nobody seems to own                      05. “I lead a sustainability
                                                                                                                         Su:	The	first	step	is	to	understand	the	                                                                  pioneering brand. What do you think
                                                                                                                         environmental and social impacts of your brand
                                                                                                                                                                             the issue internally. CSR, brand,
                                                                                                                         throughout its entire life cycle. If your brand     communications, they all know a bit                   are the three big sustainability issues/
                                                                                                                         includes products from different categories,        but aren’t sure enough to lead. How                   challenges brands need to think
                                                                                                                         then map the key sustainability impacts                                                                   about over the next three years?
                                                                                                                                                                             can I take the initiative?”
                                                                                                                         according to product or service category.
                                                                                                                         Where you can, adapt an existing brand insight                                                            AJ: I'm sure climate change will still be on the
                                                                                                                                                                             AJ: Ultimately senior management will need to
                                                                                                                         tool to give you this impact data.                                                                        agenda	but	resource	scarcity	(including	water	
                                                                                                                                                                             take the lead so that the process is top down
                                                                                                                                                                                                                                   stress	and	biodiversity	loss)	is	rising	quickly.	In	
                                                                                                                         Then, be clear what you are trying to               with everyone understanding they have a role
                                                                                                                                                                                                                                   turn these two will start to make people think
                                                                                                                         achieve. Decide where you want to be on a           to play. In the interim, building a network of
                                                                                                                                                                                                                                   about over consumption in an overpopulated
                                                                                                                         continuum from a brand that understands its         sustainability champions will help share ideas
                                                                                                                                                                                                                                   world, which is a big and tricky issue for brands.
                                                                                                                         environmental and social impacts, and is quietly    and learnings. This can be put forward for
                                                                                                                         reducing	these	(the	get-on-with-it	brand),	to	a	    adoption by senior managers.                          Su: One issue – water – until recently the poor
                                                                                                                         brand that wants to effect wider change with its                                                          relation	to	carbon.	Embedded	water	(how	
                                                                                                                                                                             Su: Think of yourself as the sustainability
                                                                                                                         consumers	(the	sustainability-champion	brand).                                                            much	water	it	takes	to	make	a	product),	will	
                                                                                                                                                                             enabler. Think through what each function
                                                                                                                                                                                                                                   soon	become	a	defining	metric.	One	impact	
                                                                                                                         CS adds: “We’d add two further things. Your         needs to do to make sustainability work, and
                                                                                                                                                                                                                                   – product use in the home. Brands will have
                                                                                                                         brand model and current positioning must be         then	identify	the	benefits	to	that	department.	
                                                                                                                                                                                                                                   to	get	much	better	at	influencing	consumer	
                                                                                                                         the reference point, to ensure that you focus       For example, communicating sustainability can
                                                                                                                                                                                                                                   behaviour as this is where the big impacts lie.
                                                                                                                         on issues that are relevant to and support the      create new ways of reaching customers and
                                                                                                                         core purpose behind your brand. Find a way          can build existing relationships. Armed with the      CS adds: A product can be given the ultimate
                                                                                                                         of	doing	things	that	reflects	the	brand’s	values	   mini-business case for each function, sell in the     sustainability makeover, but how it is used
                                                                                                                         and personality. Make friends with your internal    benefits	of	them	doing	their	bit.	And	recognise	      in the home can dwarf any manufacturing
                                                                                                                         sustainability experts – they will be valuable      that change doesn’t happen overnight – as a           impacts. And one inconvenient truth – our
                                                                                                                         sources of information and inspiration.             sustainability enabler, your key role is change       current patterns of consumption are completely
                                                                                                                                                                             management.                                           unsustainable. Brands need to understand that
                                                                                                                                                                                                                                   in a resource constrained world, more is less.
                                                                                                                                                                             CS adds: Think of this like an internal brand
                                                                                                                         02. “I’m the corporate sustainability               engagement	project.	A	multi-disciplinary	team	        We explore this further in Trendwatch on page 10.
                                                                                                                                                                             working on this is critical as sustainability needs
                                                                                                                         director. I need to find a way to
                                                                                                                                                                             to cross functional boundaries. The brand is
                                                                                                                         get a complex, global portfolio of                  a great anchor, ensuring that sustainability is       Andrew Jenkins
                                                                                                                         differently positioned brands aligned               seen as central to the future of the business.                     Andrew is Sustainable Development
                                                                                                                         in a way that works for the brands but                                                                                 Manager – Products at Boots
                                                                                                                         also tells a coherent corporate story”                                                                                 UK Plc. As a member of the
                                                                                                                                                                             04. “I’m the marketing director                                    Quality and CSR Support team he
                                                                                                                         AJ: Carry out a quick assessment of where each                                                                         develops Boots strategy on product
                                                                                                                         of the brands sit. Then evaluate how consumers
                                                                                                                                                                             reporting on sustainability to the
                                                                                                                                                                                                                                                sustainability and advises product
                                                                                                                         think about sustainability with each brand. Does    board. The problem is that I can’t                                 marketing and development groups
                                                                                                                         the consumer perception match reality? If not,      prove to my superiors that this is                                 on sustainable development issues.
                                                                                                                         consider what improvements could be made
                                                                                                                                                                             something that would create tangible
                                  Q&A: ASK THE EXPERTS                                                                   and how the overall portfolio could be made
                                                                                                                                                                             gains for our brand”                                  Sally uren
                                                                                                                         more sustainable. Using a consistent evaluation
                                                                                                                         technique will help to develop a coherent story                                                                        Sally is Deputy Chief Executive at
                What are the big dilemmas and                                                                            across your brand portfolio.
                                                                                                                                                                             AJ: Buy-in can be achieved by demonstrating
                                                                                                                                                                             the value sustainability can bring. Try linking
                                                                                                                                                                             sustainability to brand trust or emphasising
                                                                                                                                                                                                                                                the leading sustainability advisory
                                                                                                                                                                                                                                                group/charity Forum for the Future.

          opportunities for brands and sustainability
                                                                                                                         Su: Step 1 – identify the most material                                                                                She leads the partnership work and
                                                                                                                         sustainability issue for each brand. Step 2 –       that sustainability delivers value through waste
                                                                                                                                                                                                                                                engagement with business a well as
                                                                                                                         take your consumer insight data for each brand      reduction	and	greater	efficiency.	Sustainable	
                                                                                                                                                                                                                                                Forum’s work in the retail and food
            – and what should you do about them?                                                                         and understand how your main consumer
                                                                                                                         groups view sustainability – are they mostly
                                                                                                                                                                             innovation can also be a source of new
                                                                                                                                                                             product concepts and new directions for the
                                                                                                                                                                             organisation.
                                                                                                                                                                                                                                                sectors.

                                                                                                                         dark greens – or, more likely, are they the
                                                                                                                         passive	onlookers	–	the	mainstream	majority	                                                              Chris Sherwin
                  We talk to people all the time about sustainability and brands. Surprisingly                                                                               Su: Use hard facts. It’s no accident that the
                  the	same	difficulties,	dilemmas	and	questions	come	through	again	and	                                  who will ‘do’ sustainability if it is made easy.    über-brands – Unilever, P&G, PepsiCo – are                         Chris leads the sustainability
                  again, showing people are facing similar challenges.                                                   Step 3 – tailor the sustainability message          busily putting sustainability at the heart of                      consultancy team at Dragon Rouge
                                                                                                                         according to key impact areas and where             their growth strategies. They understand that                      and	has	fifteen	years	experience	
                  We	put	five	of	the	most	regular	questions	we	get	asked	to	two	experts:	                                the consumer is. Step 4 – check the different       sustainability is critical to delivering long-term                 taking strategy into implementation
                  Andrew Jenkins, Sustainability Manager at Boots UK and Sally Uren,                                     messages with the corporate sustainability          value for the business.                                            through innovation, design and
                  Deputy CEO of sustainability thought leaders Forum for the Future.                                     message	and	adjust	the	language	accordingly.                                                                           branding.
14_Dragonfly                                                                                                                                Sustainability Inside




                                                                                                                                                                    BRAND
                                                                                                                                                                    MANAGER
                                                                                                                                                                    IN 2015
                                                                                                                                                                                                                                                                    02



                                                                                                                                                                    As sustainability becomes mainstream, the job                                                                                             01
                                                                                                                                                                    of the brand manager will evolve too. Here are
                                                         Q&A: DAVID BRUNT                                                                                           10 things you may find in every marketer's job
                                                                                                                                                                    description in the future:

                  Dragonfly asks David Brunt of global decorative                                                                                                                                                                                03
                  brand Dulux what life is like at the helm of a
                  global sustainability programme.                                                                                                                                                                                                                                                             10
                                                                                                                                                                                                                                                                                 09

01.  Why did your company choose                     04.   In your experience what do                   06.   How do you see sustainability
                                                                                                                                                                                                                                 04
to set up the position of Global                     those businesses that have embraced                impacting your industry and market
Marketing & Products Sustainability                  the sustainability agenda have in                  this year?
Director?                                            common?                                            I think sustainability will continue to become
As a company we had taken the decision to            I think they see that as a business they have      more mainstream, though I suspect we will
take a leadership position in sustainability and     wider	responsibilities	beyond	just	making	         still see launches of more niche ‘eco’ products.
                                                                                                                                                                                  05                                                                                                                          08
part of this was to build sustainability into the    money – having a place in the wider society,       There will be evolving legislation in Europe
DNA	of	our	brands.	This	is	a	marketing	task	         which in turn maintains their relevance as a       – France is pushing for certain sustainability
primarily so hence the need for the role in the      business.                                                                                                                                                                                   06
                                                                                                        legislation and this has to come together
organisation.                                                                                           with an EU view.
                                                     They also realise that sustainability is
                                                     fundamentally good business and ensures
02.   What exactly does your                         the longevity of their own company.
role cover?
                                                                                                        07. In your view what are the
                                                     Finally they also understand that they are         benefits of integrating sustainability                                                                                                                                                07
Always	a	difficult	question!	My	role	is	split	       selling to real people like you and me, and
                                                                                                        through the brand, rather than
broadly	into	two.	The	first	is	to	help	define	the	   relevant sustainability initiatives are a good
sustainability strategy for our products/brands      way of getting emotional engagement between        supply chain.
and facilitate the implementation of it through      brands and consumers and to build a greater        I believe we have to do both – one without
our business units around the world. What            depth of brand trust. For example if you were      the other lacks integrity. As I see it integrating
does this cover? From brand communication            buying a car from a salesman – I suspect           sustainability	into	the	brand	(in	a	unique	way)	
all the way through to environmental metrics         that you would prefer to buy from a salesman       means that you add greater value with the
of our products.                                     that demonstrates honesty and integrity and        possibility of deepening, even further, the
                                                     shows interest in more than his commission he      relationship with your consumer. It also can
The second is around global innovation –
                                                     will get from selling you a car. That’s the role   give you greater differentiation at a time when
building and leading the product innovation
                                                     sustainability can play for a brand.               differentiation is hard to carve out.
portfolio	specifically	focused	on	sustainability.
                                                                                                        However	there	are	aspects	of	sustainability	
03.  Do you think sustainability is                  05.  What do you see as the biggest                that are not so relevant to communicate – like
a term or trend in need of greater                   challenge facing businesses in the                 reducing water usage by installing waterless
                                                     area of sustainability?                            urinals!	–	however	these	things	still	need	to	be	
definition?                                                                                             done and that is why it needs to be integrated
I think more and more companies are creating         I think the big question is how to reach           into the supply chain and the whole business.               01     Must be able to have a relevant and meaningful                 06   Will know how to track consumers' views on sustainability
roles like this to get things moving in the          ‘sustainable consumption’ in a world with                                                                             conversation with their sustainability or CSR manager               through appropriate market research and consumer insight.
marketing area. And I believe the role will          massive population growth in the some                                                                                 – which both understand.
change as time goes on. The focus of the role        continents coupled with growing expectations       08. What will sustainability                                                                                                      07   Measures the environmental and societal value, as well as
is different when starting from a blank sheet        for	standard	of	living.	How	can	sustainable	       mean for the brand manager and                              02     Must be familiar with things like lifecycle analysis, carbon        the brand equity value, of their recent campaign, innovation
                                                     consumption exist in this context alongside                                                                           or water footprinting, or eco-impact assessment.                    or activation.
compared to a couple of years down the line                                                             marketing director of the future?
once programmes have been kicked off and             business	objectives	of	growth	and	profitability?
                                                                                                        Sustainability will not be the preserve of one              03 	   W
                                                                                                                                                                           	 ill	seek	insights	from	stakeholders	–	NGO’s,	opinion	        08   Will take the lead on ensuring that sustainability is a core
sustainability naturally becomes integrated
                                                                                                        person’s role but will be on the agenda of                         formers, thought leaders – as well as consumers or                  consideration in any new product or innovation programme
into marketing teams worldwide.
                                                                                                        every marketer in the future. I am already                         customers.                                                          within the business.
                                                                                                        seeing some shift in the way people are talking
                                                                                                        and thinking and this will accelerate. The                  04     Will have read – and can reference – their companies           09   Will know how to engage peers and especially brand
                                                                                                        consequences are that marketers will need to                       Sustainability or CSR report. Will also know their                  and marketing teams in the importance and relevance
                                                                                                        be prepared to learn about sustainability and                      corporate sustainability targets.                                   of sustainability in everyday brand management.
                                                                                                        how it applies to their brands and products
                                                                                                                                                                    05     Will follow trends from sources like treehugger.com,           10   Will be prepared and able to build the business case
                                                                                                        – because making the right decision does
                                                                                                                                                                           Business for Social Responsibility, Ethical Corporation,            on sustainability for any cynical or unenlightened board
                                                                                                        require some depth of knowledge in what
                                                                                                                                                                           The Ecologist, World Business Council for Sustainable               member. Remember it's about opportunity and reward.
                                                                                                        can be a complex area.                                             Development, Green Futures.                                         Not	risk	mitigation.
Dragonfly: Sustainability

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Dragonfly: Sustainability

  • 1. Dragon New conversations Dragonfly is a Dragon Rouge publication driven by debate and insights, focusing on the key issues facing the brand and design industry Sustainability Inside dragonrouge.com Buyer behaviour New product development sustainabil ty i inside _give your brand and business a new competitive edge Positioning Insights Supply chain Innovation
  • 2. dragonrouge.com Dragonfly_03 “We are already finding that tackling sustainability Welcome to this special edition of challenges provides Dragonfly, dedicated to brands and new opportunities for sustainability. The world’s great sustainable growth: it environmental and social challenges – climate change, water shortages, creates preference for our biodiversity, health, poverty and equality brands, builds business with are moving to the top of almost every our retail customers, drives corporate agenda, despite the global recession. And there is increasing evidence our innovation, grows our that leading companies are beginning markets and, in many cases, to embed sustainability into their strategies, operations and products. generates cost savings.” We think this makes it an ideal time to explore how sustainability _PAUL POLMAN can be integrated into brands. We don’t see sustainability as a separate CEO, Unilever thing or set of issues done alongside normal brand development or innovation processes. Sustainability needs to be in these activities, and in the best cases driving these activities. Dragon Rouge believes that brands have an important role in helping to change behaviour and attitudes towards more sustainable consumption and production. And equally, that sustainability provides a powerful platform through which brands can deepen their connections, engage their stakeholders and deliver against increasing expectations. Our ‘Sustainability Inside’ process weaves the material, social and environmental impacts of the brand with its positioning, proposition and history to help focus activities and communications, where they will have Contents most relevance and potential for opportunity creation and brand building. 03_Welcome So perhaps a separate Dragonfly on sustainability integration is really something of a contradiction in terms, as we would rather see sustainability 04_What's making us go WOW! covered in every issue of Dragonfly (which it is!). However, it’s a subject that 06_Communicating and connecting: is on the agenda for so many people at the moment that we felt it would the new rules for sustainability be justified to devote a whole issue to it. 08_The 4i’s of Sustainable Brands 10_Emerging sustainability concepts 12_Q&A: Ask the experts 14_Q&A: David Brunt, Director, Dulux 15_Brand Manager in 2015 Enjoy! 16_5 things to do now
  • 3. 0 4_Dragonfly Sustainability Inside dragonrouge.com Dragonfly_05 WoW WhAT'S MAKING uS Go WoW! The last year has been a year of really bright ideas and innovation in the area of sustainability. We’ve been watching closely and picked out 10 that we see as being particularly interesting; either for their behaviour change potential, technology application or just downright cool and smart. Have a read through and see what you think. We hope it inspires you to think beyond for your brand to consider what WWF – Open Planet Ideas C rowd-sourcing is flavour of the month and last year Sony teamed up with WWF (World Wide Fund for Nature) to harness the collective power of communities. Open Planet Ideas challenged the creative audience to come up with ideas on how to repurpose existing technology for environmental and social good. Receiving over 300 inspirations and 400 concepts, the winning 'Green Book' entry proposed an might just be possible. innovative app to encourage more localised volunteering. Nine months on, Sony has just announced a partnership with YouthNet to bring the idea to market. Unilever – Sustainable Living Plan Two billion times a day, somebody, some eBay – Box Nike – Better World statistic, somewhere uses a Unilever his one just makes sense. In 2010 T From refurbishing basketball courts brand. The latest piece of inspiration from eBay launched their own box-packaging in New York state to using sport to halt civil this global superbrand is the Sustainable programme that enabled sellers to war in the Ivory Coast. Nike Better World Living Plan. Part mantra, part business package sold products appropriately. gives a full account of Nike’s behind the plan, this site sets out their manifesto for With shipping and packaging being a scenes efforts to make a difference to our improving health and well being, reducing major environmental issue for the global planet and communicating. What strikes environmental impact and enhancing e-tailer, this is a bold move. The boxes us here is the tone of voice and sheer livelihoods. And they’ve measured and are made from 100% recycled content breadth of activities. All packaged up in recorded the environmental impact of over and contain water-based inks. Each has Ecosia – The green search engine a tone that we’ve come to expect and 1,600 of their products too. Impressed yet? its own tracking chip so buyers can see Search the web and save the planet at admire from this brand. Unilever continue to set the benchmark the whereabouts of their goods in transit. the same time. Ecosia have teamed up when it comes to integrating sustainability Good on you eBay. with Bing and Yahoo, to deliver a really Barcoo – Mobile phone app into their brands. Time to observe if you neat way to contribute to the environment. Launched in April 2010, Barcoo is a haven’t already. Every time a visitor clicks on one of the mobile phone app that could create a sponsored links money goes to Bing or new generation of ethical shoppers by Ikea – Reuse and resale initiatives Yahoo. They then give it to Ecosia and they allowing them to check a company's social Often challenged for its commitment to invest it in the conservation of rainforests responsibility rating and environmental sustainable development Ikea has come around the world. Smart and simple stuff. credentials. The app also provides out fighting in 2010. They launched their own shoppers with price comparison data second hand furniture market for customers Kickstarter – Creative funding available by other apps. But it’s the to buy and sell goods through the brand's eard of them? They’re now the largest H ethical angle that has caught the eye website. They’ve also teamed up with the provider of creative projects in the world. of consumers and watchdogs alike. A Furniture Reuse Network (FRN) and its 300 They’re turning dreams into reality by great innovation to change our everyday UK members to encourage people to donate connecting people and groups around shopping habits for the future. used furniture to local charities through shared interests. Kickstarter launched take-back programmes. in 2010 and has grown in profile and Credit: eBay, Ecosia, Puma, Kickstarter, Barcoo, WWF Gazelle – Waste management prominence ever since. It’s a new way Puma – Bag Box How many old mobiles have you got sat to fund creative ideas and ambitious Puma will roll out its new packaging in the in a drawer? Four? Five? Gazelle’s the endeavors, powered by a unique 'all or second half of this year. It will sell its shoes answer to your plight. Give them the make nothing' funding method where projects in cardboard frames wrapped in reusable of the phone and the age and they’ll give must be fully funded or no money changes shoe bags – called the 'Clever Little Bag’. you a price. There and then they’ll even hands. So if everyone does have a book in In doing so the company aims to use 65% pay for postage and packaging. Gazelle them, here’s your chance to shine. less paper, and save 20m megajoules of has become a go-to resource for millions electricity, 1m litres of water and 500,000 of people looking to sell and recycle used litres of diesel and 8,500 tonnes of paper a electronics. It’s changing the way we year. It looks quite cool too. How long before manage our waste and rewarding us for this new innovation becomes the standard our actions. stock on the high street?
  • 4. dragonrouge.com Dragonfly_07 Sustainability has given a spur to innovation in many Rule No. 1: The old rules still apply. When it comes to covering companies. New thinking into how to do more, better, off the basics of what people need to know about a company’s track record, good practice standards of reporting are essential. with less impact and how to put back, not just take out, Set out meaningful targets and track the brand or company’s performance against them. Never let the glitz of cutting edge have changed operating models and sparked streams of channels overwhelm the importance of core content. People still new product ideas. That vibrancy of thinking needs to flow need to know what you aim to do and what you have done. through into sustainability communications, too. Getting Rule No. 2: Make it human scale. Don’t just confine yourself it right can transform brand relationships. to broad policies and objectives, let people know exactly what these mean for what they buy. SC Johnson have taken a lead But what are the new rules? with their website ‘What we’re made of’ which gives a complete run down of their products’ ingredients. Clothes brand, Icebreaker, allows their customers to track where each of their products have been sourced and made through individual ‘baa codes’ that get right down into where the lamb was reared and the wool sheared. Rule No. 3: Open yourself up to scrutiny and stir up debate. There is genuine potential in technology. It allows people not just to dig deep into your record and tell you what they think, but to debate with each other. You can learn a lot from those conversations. Sustainability communications can’t be just one way, they don’t even need to be just two way. The technology exists in Web 2.0 to create multi-lateral discussions and ideas exchanges. SAP’s interactive sustainability map is a pioneering example of what can be achieved. Browsers can interact with Corona ‘Save the Beach’ campaign the data and each other and comment on SAP’s performance. Everyone can have a stake in making progress. Rule No. 4: Call for ideas. Open sourcing is part of the zeitgeist in product development so make it part of your approach to Communicating sustainability communications too. Tell your customers the story of your sustainable brand record so far and encourage them to and connecting: help you write the next chapter and improve sustainability performance when the product leaves you and reaches them. Levi’s worked out that the biggest impact their products have the new rules for on the environment comes from drying. So they teamed up with Myoo Create and launched the ‘Care to air’ campaign to find sustainability ‘the most innovative, covetable and sustainable air drying Icebreaker ‘baa’ campaign solution’ for clothes. Rule No. 5: Never forget your friends. Plenty of involvement and interaction is great and social media a perfect tool. But you Credit: Levi's, Icebreaker, Corona need to keep the dialogue going. Launching a Facebook page in support of an initiative and then neglecting it is worse than never creating it in the first place. It reeks of tokenism. Keep active and alive. Rule No. 6: Put some joy into it. Involving consumers is a critical part of sustainability communications. You want them to do their Levi's ‘Care to Air’ campaign bit to help you do yours and make products sustainable throughout their lifecycle. But don’t guilt trip them with critique or turn them off with too worthy a tone of voice. You want them “The ‘Corona Save The Beach to enjoy the collaboration. Mexican beer brand Corona is a great Hotel’ is an example of the power example of getting it right. With their ‘Save the Beach’ campaign, they picked a relevant issue (the preservation of beaches) and communication and PR have to had their youthful target audience always in mind. The campaign was rooted in social media and by tapping effectively into the make good things happen and perception of Corona as a summer brand, their campaign was true to their brand and achieved real traction. change mentalities.” Now that’s a sustainable communications campaign that Fernando Godoy Sánez de Heredia we can all raise a glass to! General Creative manager of El Señor Goldwind
  • 5. 0 8_Dragonfly Sustainability Inside dragonrouge.com Dragonfly_09 WhERE aRE yOU? _The 4i’s of Sustainable Brands Sustainability works for your brand when it’s less about a brand claim, and more about a commitment or way of working. See it as a journey for your brand. Getting going on sustainability can be challenging, as it can feel like you need to be perfect or whiter than white in everything you do. And if you’re already active, even leading on sustainability, you can’t stand still or you’ll get left behind as the debate moves on around you. We think about sustainability as a spectrum or continuum of brand performance and commitments – the 4i’s of sustainability integration - from laggard to leader, from beginner to trailblazer. Investigate Internalise Innovate Inspire ~ Work to a social, environmental Mentality ~ Minimum standards ~ Compliance culture ~ Opportunity and economic bottom line ~ Denial or defuse ~ Monitoring and reporting ~ Differentiation ~ olistic, systems-based H ~ Reducing risks at best ~ Management issue ~ Innovation ~ thics in DNA, values-led E ~ By the book ~ Creativity ~ Leadership - beyond the Drivers and ~ Risk mitigation ~ Enhances reputation ~ Consumer recruitment business case benefits ~ Licence to operate ~ Cost savings ~ Revenue ~ Create new sustainable markets ~ Existing customer loyalty ~ Social business models ~ Access to new markets and customers ~ Change, shape, lead categories What they do ~ Philanthropy, charity, ~ Stakeholder engagement ~ Employee engagement community programmes ~ Divesting unsustainable products on strategy? ~ Efficiency programmes ~ Supplier partnerships and ~ Build internal business case ~ Sustainability programme strategic relationships ~ Industry leadership/ ~ Developing policy and strategy with targets ~ Carbon and water co-operation ~ Supplier auditing ~ Footprinting ~ Customer auditing ~ Sustainability in staff rewards ~ Champion causes What they do ~ Green-wash ~ Communicate what they do ~ Focus on differentiation Set a task: ~ Sustainability advocates on activation? ~ Defend themselves ~ Innovate, communicate ~ Sustained programme that 1. Which brands do you think would ~ Attack competition on a single issue is brand relevant ~ Pilot new technology i.e. improve packaging fit along the four stages of the ~ Connect messaging across ~ Realign business models ~ Single sustainability or the marketing mix sustainability continuum? Name ~ Choice edit or influence CSR campaign for customers three at each stage. Where would you position your brand? Where are you and 1. 1. 1. 1. 2. What strategy would you adopt the competition? 2. 2. 2. 2. to move along stages of the 3. 3. 3. 3. continuum? Or how would continue to stay ahead?
  • 6. dragonrouge.com Dragonfly_11 EMERGING Building sustainability through brands SUSTaINaBILITy Sustainability must function not as an adjunct, but as an integrated component of your brand. We see this as CONCEPTS sustainability and brand integration. Sustainability leaders have found that the brand is a great place to ‘anchor’ sustainability plus it delivers the most business benefits too. 72% of CEO’s in the above-mentioned survey cited “brand, trust and reputation” as one of the top three factors driving them to take action on sustainability issues. Some companies are delivering their corporate sustainability commitments to customers and consumers through their product brands – Unilever’s Brand Imprint model is a tool to help do this. Others are bundling up activities to fashion a convincing, cogent and cohesive sustainability story that is faithful to their brand positioning. IBM’s Smarter Planet springs to mind. On the flip-side, brands can help sustainability. They are great at introducing new sustainability concepts and behaviours, and making them feel normal. New concepts emerge Old thinking around the sustainability lexicon centred around terms like reduce, minimise, optimise, and motivations like cost savings, and risk reduction. New models of sustainability shift beyond correcting existing mistakes towards zero impact objectives, restoring, and giving back to nature and society. Timberland aims ‘to leverage [their] corporate influence to make a positive contribution to the world’, whilst InterfaceFlor has its Mission Zero to be a zero impact business by 2020, thereafter being environmentally restorative. Similar concepts such as ‘cradle-to-cradle 81% Disruptive cleantech brands design’, championed by Aveda and Puma, Biomimicry Revolutions have protagonists, antagonists, heroes and (aped by Nike and Arup) and closed loop material cycles villains; the sustainability revolution will be no different. and business models (M&S and Philips) will influence New brands will emerge, new technologies will evolve and the next generation of smart designers and managers to different categories will develop. Despite the recession, design brands for zero waste, that respect nature and use the clean-tech revolution (companies built around new its processes or principles. green and clean technology) continues apace. Expect this of CEo’s stated that to rival the digital revolution at the turn of the millennium. ‘sustainability issues are This gave rise to a new generation of global power brands: Sustainability: a fresh look at creating value Google, eBay, Amazon and Facebook to name but a few. Moving towards sustainability will be a challenge for many now fully embedded into the In the near future we can expect a cleantech power brand brands. It can require big changes to technology, materials strategy and operations of to emerge in a similar fashion. Who will be the Google of and even customer behaviours. But sometimes even their company (compared the cleantech world? Most likely a current start-up or high that will not be enough as brands will need to look at the growth cleantech company that not only has superior sustainability of their business model – where increased to just 50% in 2007)’ technology and a winning business model, but smart profit is dependent on increased resource use, product Source: UN Global Impact-Accenture CEO study 2010 communication and customer connection. If Dragonfly obsolescence or waste. Happily new models of enterprise were a betting type, then our money would be on Shai are being devised and implemented. Agassi’s Better Place. Who is yours on? The January edition of the Harvard Business Review saw Sustainability is a dynamic Sustainable business goes mainstream Beyond reputation – towards growth management guru Michael Porter coin the term ‘Creating process with constantly evolving The Accenture/UN Global Impact CEO and innovation Shared Value’ for just this challenge. This “involves creating survey from late 2010 heralded a ‘New Era Wind back just five years to an age when economic value in a way that also creates value for society targets. Yesterday’s pioneering of Sustainability’. A staggering 81% of CEO’s companies’ sustainability targets revolved around by addressing its needs and challenges.” Blurring the practice becomes today’s hygiene stated that ‘sustainability issues are now fully saving CO2, water, waste or increasing charitable traditional boundaries between business, corporate social embedded into the strategy and operations donations. At best the benefits were reputational responsibility, philanthropy and social enterprise, this factors for a business. of their company (compared to just 50% coupled with cost savings. Today brands see concept is already taking shape through brand pioneers in 2007)’. It is on the radar of almost every sustainability as a path to growth and revenue such as Grameen Danone. Whether a sustainability leader business leader with 93% of them ‘believing and set their goals and targets accordingly. or laggard, knowing what is on that sustainability issues will be critical Forward-thinking brands focus on making Danone has partnered with Nobel Prize winner Muhammad the horizon is critical to staying to the future success of their business’. money and creating markets; P&G, DuPont Yunus’ Grameen Bank to launch a joint venture as a social Does sustainability feel so embedded and and Philips all have sales or revenue targets business providing a low-cost, highly nutritious, low eco- one step ahead and anticipating mainstream to you? If yes, don’t rest on your from sustainable products. GE CEO Jeff Immelt impact dairy product for the Bangladeshi market produced Credit: InterfaceFlor, M&S, IBM potential issues. laurels, as sustainability is a journey that will notes “sustainability is the business strategy. It’s locally. It is distributed using local channels and all the need ongoing commitments. If not, time to our roadmap for how we operate and how we profits are ploughed back into the business. Rumour has it; _What new themes, concepts get going or you may be left behind. innovate”. P&G doesn’t target sustainability as these are the hottest, most sought-after jobs in Danone. and trends are emerging? niche, but at mainstream consumers. No longer confined to small segments, sustainability now This is a win-win for business and society, but it’s also a real finds traction across the marketplace offering stretch for ‘brand-as-usual’. It’s here that you really get the major opportunities for brands. sense of how transformational sustainability can actually be.
  • 7. 12_Dragonfly Sustainability Inside dragonrouge.com Dragonfly_13 01. “I’m a new brand manager with CS adds: Your brands may position themselves CS adds: Sustainability improvements can differently on sustainability because of the provide opportunities for brand differentiation sustainability in my job description. different markets they operate in or their and innovation that can attract users and lead I’ve been tasked with implementing different customer profiles, but it makes sense to sales increases, but mostly sustainability it into my brand, but I don’t know to use the same approach to integrating acts as a support to other brand features and where to start” sustainability within the brand. Should benefits, helping to strengthen the brand’s sustainability be embedded within the brand position with customers in the long-term. AJ: Sustainability is complex but we found model or vision? Should each brand have a Ultimately you should try to track this through the best way to start is by thinking of a few clear sustainability strategy and plan, integrated traditional brand metrics like how it reinforces key impacts that can be addressed relatively within the overall brand strategy? existing brand attributes or builds your effectively. These could include packaging reputation, loyalty and trust. design, product waste prevention, sourcing raw materials from accredited sources, fairly traded 03. “I’m an internal sustainability products, energy and water saving. champion but nobody seems to own 05. “I lead a sustainability Su: The first step is to understand the pioneering brand. What do you think environmental and social impacts of your brand the issue internally. CSR, brand, throughout its entire life cycle. If your brand communications, they all know a bit are the three big sustainability issues/ includes products from different categories, but aren’t sure enough to lead. How challenges brands need to think then map the key sustainability impacts about over the next three years? can I take the initiative?” according to product or service category. Where you can, adapt an existing brand insight AJ: I'm sure climate change will still be on the AJ: Ultimately senior management will need to tool to give you this impact data. agenda but resource scarcity (including water take the lead so that the process is top down stress and biodiversity loss) is rising quickly. In Then, be clear what you are trying to with everyone understanding they have a role turn these two will start to make people think achieve. Decide where you want to be on a to play. In the interim, building a network of about over consumption in an overpopulated continuum from a brand that understands its sustainability champions will help share ideas world, which is a big and tricky issue for brands. environmental and social impacts, and is quietly and learnings. This can be put forward for reducing these (the get-on-with-it brand), to a adoption by senior managers. Su: One issue – water – until recently the poor brand that wants to effect wider change with its relation to carbon. Embedded water (how Su: Think of yourself as the sustainability consumers (the sustainability-champion brand). much water it takes to make a product), will enabler. Think through what each function soon become a defining metric. One impact CS adds: “We’d add two further things. Your needs to do to make sustainability work, and – product use in the home. Brands will have brand model and current positioning must be then identify the benefits to that department. to get much better at influencing consumer the reference point, to ensure that you focus For example, communicating sustainability can behaviour as this is where the big impacts lie. on issues that are relevant to and support the create new ways of reaching customers and core purpose behind your brand. Find a way can build existing relationships. Armed with the CS adds: A product can be given the ultimate of doing things that reflects the brand’s values mini-business case for each function, sell in the sustainability makeover, but how it is used and personality. Make friends with your internal benefits of them doing their bit. And recognise in the home can dwarf any manufacturing sustainability experts – they will be valuable that change doesn’t happen overnight – as a impacts. And one inconvenient truth – our sources of information and inspiration. sustainability enabler, your key role is change current patterns of consumption are completely management. unsustainable. Brands need to understand that in a resource constrained world, more is less. CS adds: Think of this like an internal brand 02. “I’m the corporate sustainability engagement project. A multi-disciplinary team We explore this further in Trendwatch on page 10. working on this is critical as sustainability needs director. I need to find a way to to cross functional boundaries. The brand is get a complex, global portfolio of a great anchor, ensuring that sustainability is Andrew Jenkins differently positioned brands aligned seen as central to the future of the business. Andrew is Sustainable Development in a way that works for the brands but Manager – Products at Boots also tells a coherent corporate story” UK Plc. As a member of the 04. “I’m the marketing director Quality and CSR Support team he AJ: Carry out a quick assessment of where each develops Boots strategy on product of the brands sit. Then evaluate how consumers reporting on sustainability to the sustainability and advises product think about sustainability with each brand. Does board. The problem is that I can’t marketing and development groups the consumer perception match reality? If not, prove to my superiors that this is on sustainable development issues. consider what improvements could be made something that would create tangible Q&A: ASK THE EXPERTS and how the overall portfolio could be made gains for our brand” Sally uren more sustainable. Using a consistent evaluation technique will help to develop a coherent story Sally is Deputy Chief Executive at What are the big dilemmas and across your brand portfolio. AJ: Buy-in can be achieved by demonstrating the value sustainability can bring. Try linking sustainability to brand trust or emphasising the leading sustainability advisory group/charity Forum for the Future. opportunities for brands and sustainability Su: Step 1 – identify the most material She leads the partnership work and sustainability issue for each brand. Step 2 – that sustainability delivers value through waste engagement with business a well as take your consumer insight data for each brand reduction and greater efficiency. Sustainable Forum’s work in the retail and food – and what should you do about them? and understand how your main consumer groups view sustainability – are they mostly innovation can also be a source of new product concepts and new directions for the organisation. sectors. dark greens – or, more likely, are they the passive onlookers – the mainstream majority Chris Sherwin We talk to people all the time about sustainability and brands. Surprisingly Su: Use hard facts. It’s no accident that the the same difficulties, dilemmas and questions come through again and who will ‘do’ sustainability if it is made easy. über-brands – Unilever, P&G, PepsiCo – are Chris leads the sustainability again, showing people are facing similar challenges. Step 3 – tailor the sustainability message busily putting sustainability at the heart of consultancy team at Dragon Rouge according to key impact areas and where their growth strategies. They understand that and has fifteen years experience We put five of the most regular questions we get asked to two experts: the consumer is. Step 4 – check the different sustainability is critical to delivering long-term taking strategy into implementation Andrew Jenkins, Sustainability Manager at Boots UK and Sally Uren, messages with the corporate sustainability value for the business. through innovation, design and Deputy CEO of sustainability thought leaders Forum for the Future. message and adjust the language accordingly. branding.
  • 8. 14_Dragonfly Sustainability Inside BRAND MANAGER IN 2015 02 As sustainability becomes mainstream, the job 01 of the brand manager will evolve too. Here are Q&A: DAVID BRUNT 10 things you may find in every marketer's job description in the future: Dragonfly asks David Brunt of global decorative 03 brand Dulux what life is like at the helm of a global sustainability programme. 10 09 01. Why did your company choose 04. In your experience what do 06. How do you see sustainability 04 to set up the position of Global those businesses that have embraced impacting your industry and market Marketing & Products Sustainability the sustainability agenda have in this year? Director? common? I think sustainability will continue to become As a company we had taken the decision to I think they see that as a business they have more mainstream, though I suspect we will take a leadership position in sustainability and wider responsibilities beyond just making still see launches of more niche ‘eco’ products. 05 08 part of this was to build sustainability into the money – having a place in the wider society, There will be evolving legislation in Europe DNA of our brands. This is a marketing task which in turn maintains their relevance as a – France is pushing for certain sustainability primarily so hence the need for the role in the business. 06 legislation and this has to come together organisation. with an EU view. They also realise that sustainability is fundamentally good business and ensures 02. What exactly does your the longevity of their own company. role cover? 07. In your view what are the Finally they also understand that they are benefits of integrating sustainability 07 Always a difficult question! My role is split selling to real people like you and me, and through the brand, rather than broadly into two. The first is to help define the relevant sustainability initiatives are a good sustainability strategy for our products/brands way of getting emotional engagement between supply chain. and facilitate the implementation of it through brands and consumers and to build a greater I believe we have to do both – one without our business units around the world. What depth of brand trust. For example if you were the other lacks integrity. As I see it integrating does this cover? From brand communication buying a car from a salesman – I suspect sustainability into the brand (in a unique way) all the way through to environmental metrics that you would prefer to buy from a salesman means that you add greater value with the of our products. that demonstrates honesty and integrity and possibility of deepening, even further, the shows interest in more than his commission he relationship with your consumer. It also can The second is around global innovation – will get from selling you a car. That’s the role give you greater differentiation at a time when building and leading the product innovation sustainability can play for a brand. differentiation is hard to carve out. portfolio specifically focused on sustainability. However there are aspects of sustainability 03. Do you think sustainability is 05. What do you see as the biggest that are not so relevant to communicate – like a term or trend in need of greater challenge facing businesses in the reducing water usage by installing waterless area of sustainability? urinals! – however these things still need to be definition? done and that is why it needs to be integrated I think more and more companies are creating I think the big question is how to reach into the supply chain and the whole business. 01 Must be able to have a relevant and meaningful 06 Will know how to track consumers' views on sustainability roles like this to get things moving in the ‘sustainable consumption’ in a world with conversation with their sustainability or CSR manager through appropriate market research and consumer insight. marketing area. And I believe the role will massive population growth in the some – which both understand. change as time goes on. The focus of the role continents coupled with growing expectations 08. What will sustainability 07 Measures the environmental and societal value, as well as is different when starting from a blank sheet for standard of living. How can sustainable mean for the brand manager and 02 Must be familiar with things like lifecycle analysis, carbon the brand equity value, of their recent campaign, innovation consumption exist in this context alongside or water footprinting, or eco-impact assessment. or activation. compared to a couple of years down the line marketing director of the future? once programmes have been kicked off and business objectives of growth and profitability? Sustainability will not be the preserve of one 03 W ill seek insights from stakeholders – NGO’s, opinion 08 Will take the lead on ensuring that sustainability is a core sustainability naturally becomes integrated person’s role but will be on the agenda of formers, thought leaders – as well as consumers or consideration in any new product or innovation programme into marketing teams worldwide. every marketer in the future. I am already customers. within the business. seeing some shift in the way people are talking and thinking and this will accelerate. The 04 Will have read – and can reference – their companies 09 Will know how to engage peers and especially brand consequences are that marketers will need to Sustainability or CSR report. Will also know their and marketing teams in the importance and relevance be prepared to learn about sustainability and corporate sustainability targets. of sustainability in everyday brand management. how it applies to their brands and products 05 Will follow trends from sources like treehugger.com, 10 Will be prepared and able to build the business case – because making the right decision does Business for Social Responsibility, Ethical Corporation, on sustainability for any cynical or unenlightened board require some depth of knowledge in what The Ecologist, World Business Council for Sustainable member. Remember it's about opportunity and reward. can be a complex area. Development, Green Futures. Not risk mitigation.