Archive for March, 2009

Think Green Reception Gets The Connections Flowing

March 2009

This week Think Equity LLC and Antenna Group welcomed cleantech industry investors, executives and policymakers to the Think Green Clean Technology and Alternative Energy Forum, in San Francisco. Attendees spanned every sector of the industry from wind and solar, to biofuels and batteries. At the cocktail reception, as in the sessions, people gathered to exchange the biggest breakthroughs of 2008 and get the scoop on what lies ahead for in 2009.



Counting Your Carbons

March 2009

For decades, consumers understood that eating foods high in fat had serious health risks.  But it took years of education, standardized nutrition labels and even bans on trans fats before we started changing our ways. Now, we consult nutritional labels on menus, in the grocery store and in recipes before we even think of lifting fork to mouth.

This model of labeling can also be applied to working to reduce global climate change. In the US House, Democratic leaders say they’re planning to take up legislation on a US cap and trade system this year.   The sooner companies move to put carbon labels on products across the spectrum, the better they might fare when Carbon Cap and Trade regulations are eventually implemented.

The concept is pretty straightforward: identify and label the carbon footprint of products and services so businesses and consumers can make informed choices about the carbon impact of their purchases.   And as consumer brands start to adopt this practice, there is downward pressure on suppliers to capture their carbon information and consider reductions as well.  Sort of a trickle down “carbon-omics” effect.

Companies are not only taking an inventory of their carbon emissions throughout their manufacturing process, but they are also being honest with consumers about what their footprint is and plans for reducing it. The great difficulty lies in the execution and standardization of these labels.  Still, a whole host of businesses, advocacy groups and governments are jumping into the effort.  Here’s a look at what they’re doing:

The United Kingdom started forging this path in 2001, with the roll out of the pilot program Carbon Trust and its Carbon Reduction Label. The non-profit is helping a handful businesses become accountable for their lifecycle greenhouse gas emissions including production, transportation, use, and disposal. Pepsico and the UK supermarket chain Tesco are the biggest participants.

In Japan, the Trade Ministry is overseeing an ambitious plan rolling out this year which will require carbon footprint labeling on food packaging and other products – a program the government sees as an integral step in reaching Japan’s stated goal of reducing total carbon emissions by up to 80% by 2050.

In the U.S., the Carbon Fund and the Climate Conservancy are doing similar work and California has its own Carbon Labeling Act of 2008 working to “establish a methodology for determining and communicating the carbon footprint of a consumer product[s]”. Other countries such as Sweden and South Korea are working on their own carbon labeling systems, all based on similar philosophies, but with different visual approaches.

Until enough time has passed and enough labels are out there to educate the public and have meaningful data to evaluate, carbon labeling will do more to help companies become aware of their own carbon footprints than sell more products.

But that’s ok: All new ideas with no benchmark go through cycles of trial and error. It took over five different automobile models to get the pedal and shifting layout we’re so accustomed to today (thank you Top Gear ), so there’s no reason carbon labeling should be any easier.

The day will come when companies will have to account for their carbon footprints and those that do it early are likely to have a competitive edge. However, carbon labels on their own are not going to reduce carbon emissions to the levels needed to stem the effects of climate change, but they can be used as a tool to raise awareness and help implement larger regulation. Just as in the calorie debate, it took bans on trans fats to drive industry to be more transparent about what’s in our food, carbon fat isn’t much different.

Power Of the Trend Pitch

March 2009

I was struck a few weeks ago by an atypical article in the Wall Street Journal – “The Return of Captain Planet.”

The children’s cartoon from the early 90s was indeed nostalgically familiar, as the green-haired eco-hero with a signature mullet was easily a personal favorite as a child. I had previously been stumped at the show’s vanishing act from the public sphere – in this era of compilation DVDs, rabid online fan communities, and ubiquitous streaming video available, how had the show never made a come back? So while thrilled the show was going to be available again, I had to wonder – is this really Wall Street Journal material?

Working with a reporter at the Journal on another story at the time, I was acutely aware of the publication’s need and desire to cover major, breaking news of global relevance to large, billion dollar markets. Did Captain Planet really meet this threshold?

Turns out, my musing as to the illogic of a show as popular Captain Planet, which based on a very un-scientific polling of my friends and compatriots was easily one of the most loved cartoons of the 90s, not having made a resurgence was apt, and allowed the Journal to explore serious marketing trends – how the nostalgia factor can mean big bucks for past brands (something Sony was trying to capture with other shows) and the power of social networking communities to build audiences.

We always advise clients who want coverage in the Journal to offer an exclusive angle or large financial numbers and specific details around deals and market opportunities. However, the trend story is a tried and true method, allowing a journalist to explore several important market changes simultaneously. Tapping into this is PR at its best.

So while I may not be linking any of my clients up with Captain Planet anytime soon, it’s a strong reminder of the power of the trend pitch.

Turning Crisis Into Green

March 2009

When written in Chinese, the word “crisis” is composed of two characters - one represents danger and the other represents opportunity.  While I won’t try to put a positive spin on the economic turmoil that we face today, I will say that there is something to gain by seeking the positive. Without losing sight of that light at the end of the tunnel, we can alter our course temporarily while we wait for the storm to pass.

For some (including a number of my friends who have been laid off), this means applying to graduate school and “skipping out” as wage-earners altogether for a few years.  For others, it means delving deep into their creative and entrepreneurial spirits and seeking innovation at a time when nothing seems harder to do. There are many options to consider when presented with a roadblock, but the point is that the worst thing you can do is throw your hands up in despair and quit, for that could mean missing out on a golden opportunity.

It’s hard to believe, but the current $17 billion global drywall industry faced a supply shortage ten years ago as a result of the 1998 “building boom”. Building projects were stalled for months, new home construction stopped mid-way through production, and many families were left homeless. Yet, drywall factories were still running at capacity.

Drywall in home

In this situation, the demand for drywall was directly related to the strong economy and consumer confidence. It also meant that drywall manufacturers were elated because they could sell 100% of their production, and the scarcity of the product meant that they could charge premium prices. As a consequence, it made economic sense for drywall companies to import the product from overseas instead of producing in the US. Shortly thereafter, the residential housing market collapsed, and an under-supply situation turned into an over-supply practically overnight–volumes and prices went into freefall.  Now, in 2009, the drywall market is the worst it has ever been.

This catastrophe within the building materials industry was an incentive for change. With oversupply in the local market and prices at an all-time low, it didn’t make sense to keep importing drywall. Instead of packing up and going home, people like Rod MacGregor, CEO of Antenna client CleanBoard, identified one segment of the market that was still growing: green building materials.  The drywall shortage gave way to expansion within this industry, and advancements in green/sustainable building materials market were born out of this disaster. According to McGraw-Hill Construction, green construction will grow from $12 billion in 2008 to $60 billion in 2010.  That’s the type of growth that the PC saw in the 80s and the Internet saw in the 90s.

Another popular Chinese saying is “be not afraid of going slowly; be afraid only of standing still.” While many markets are tumultuous right now, it’s worth remembering that there are numerous examples of technology and innovations that were developed in the face of hardship. Turning a crisis into an opportunity isn’t just a good idea, its good business.