How to Market and Leverage Sustainability NewPage Corporation Rick Merdan
April 21-22, 2010 ď‚Ť San Antonio, TX
agenda • Sustainability…what is it? • What will people pay for & how do we sell it? – Ease of mind (Management, Marketing) – Lower financial risk (Legal, Financial, Audit) – Market image/advantage (Marketing, Sales)
sustainability definition
“Meet the needs of the present without compromising the ability of future generations to meet their needs.� -- World Business Council for Sustainable Development
Ease of Mind: Responsible Fiber Sourcing
engo continuing focus & pressure
Source: www.greenpeace.org
Ease of mind: Management & Marketing
engo continuing focus & pressure
Source: www.ran.org
Ease of mind: Management & Marketing
engo continuing focus & pressure
Source: www.greenpeace.org/kitkat
Ease of mind: Management & Marketing
ENGO supply chain evaluation
Source: www.forestethics.org
Ease of mind: Management & Marketing
end users limiting risk
Ease of mind: Management & Marketing
ease of mind: responsible fiber sourcing What to do… • Know your supply chain! • Know the fiber sources • Know the relevant issues • Based on risk tolerance, take action, and budget for any needed procurement changes Ease of mind: Management & Marketing
Lower Risk: The Lacy Act and “Due Care”
who’s who? Who is this: a) Mark Twain b) Robert E. Lee c) That scientist guy from “Back to the Future” d) John F. Lacey (Late US congressman and conservationalist)
Ease of mind: Management & Marketing
corruption & illegal logging activity
Source: Š World Resources Institute, 2008
Ease of mind: Management & Marketing
corruption & illegal logging activity
• Like “conflict diamonds”, “conflict timber” • Profits fund Russian and Ukrainian mafias
Ease of mind: Management & Marketing
“Due Care” elements
Country of Origin Chain of Custody
Supplier Reputation
Types of Species
… Lower Financial Risk: Legal, Financial & Audit
first lacey act enforcement action
Source: Š Nashville News, 2009
Lower Financial Risk: Source: Š 2008 NashvillePost.com Legal, Financial & Audit
lower risk: the Lacy Act & “Due Care” What to do… • Know your supply chain! (again) • If using imported paper, make sure you have a copy of the import declaration • Make sure it is not coming from hot spots • Inform your legal group, make sure they are satisfied, ignorance is not bliss… Lower Financial Risk: Legal, Financial & Audit
Market Image/Advantage: Paper can be the “Green” Choice
companies identified as “Green”
Source: Earthsense survey of 2500 US Adults 18+ from Survey Sampling International’s panel.
Market Image/Advantage: Marketing & Sales
retail penetration of green attributes
Market Image/Advantage: Marketing & Sales
paper: green choice for renewable energy
67%
Market Image/Advantage: Marketing & Sales
paper: green choice for recyclability
Market Image/Advantage: Marketing & Sales
paper: green choice for forests and carbon
Source: Forests for the Next Century, www.rethinkforests.com
Market Image/Advantage: Marketing & Sales
paper: green choice for communications Sometimes the truth is rather surprising‌ Such as a newspaper can be more environmentally benign than reading news on-line.
Market Image/Advantage: Marketing & Sales
paper: green choice for innovation
Market Image/Advantage: Marketing & Sales
tools to sell the sustainability message
Market Image/Advantage: Marketing & Sales
market image: paper can be the “Green” choice What to do… • Know the facts • Play to our strengths • Present options • Stay positive, we have a great story to tell!
Lower Financial Risk: Legal, Financial & Audit
How to Market and Leverage Sustainability NewPage Corporation Rick Merdan
April 21-22, 2010 ď‚Ť San Antonio, TX