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DMA Enviroment Webinar

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Information about DMA Enviroment Webinar
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Published on November 27, 2007

Author: Sabatini

Source: authorstream.com

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Critical Issues in Direct Marketing: What Direct Marketers Can’t Afford To Ignore About Improving Their Environmental Impact :  Critical Issues in Direct Marketing: What Direct Marketers Can’t Afford To Ignore About Improving Their Environmental Impact Wednesday, March 21, 2007 1:00 p.m. – 2:30 p.m. EDT Webinar Panelists:  Webinar Panelists Speakers Meta Brophy, Director, Publishing Operations, Consumers Union Oliver Clode, Vice President, Catalog Manufacturing & Marketing Finance, Williams-Sonoma, Inc. Chet Dalzell, Director, Public Relations, Harte-Hanks, Inc. Phil Riebel, Environmental Director - North America, UPM-Kymmene Inc. Moderator Patricia Kachura, Senior Vice President, Ethics & Consumer Affairs, DMA Webinar Outline:  Webinar Outline Instructions to Participants, Kristen Cunningham (DMA) Introduction of Speakers, Patricia Kachura (DMA) Overview of DMA Environmental Planning Tool, Chet Dalzell (Harte-Hanks) A Walk-Through of the Planning Tool Design, Production & Printing, Meta Brophy (Consumers Union) Paper Procurement & Use – Suppliers’ Perspective, Phil Riebel (UPM) Paper Procurement & Use – Buyers’ Perspective, Oliver Clode (Williams-Sonoma) Recycling & Pollution Reduction, Phil Riebel (UPM) List Hygiene & Data Management, Chet Dalzell (Harte-Hanks) A Demo of the Planning Tool, Chet Dalzell (Harte-Hanks) Question & Answer Session, Patricia Kachura (DMA) Overview of DMA Planning Tool & Optional Policy Generator www.the-dma.org/envgen/ :  Overview of DMA Planning Tool & Optional Policy Generator www.the-dma.org/envgen/ Chet Dalzell Director, Public Relations Harte-Hanks, Inc. A Vision for Success:  A Vision for Success "America's Most Admired Companies: What gives GE such a glow? Fresh ideas and being green distinguishes the winners in our 25th annual rankings. How to get a great reputation… These days 'green' means something more. The three Most Admired Companies this year – General Electric, Starbucks, and Toyota – are building their growth at least partly on strategies and products aimed at helping preserve the planet." -- Fortune (March 19, 2007, pp. 88, 90) Direct Marketers Take on Environmental Planning:  Direct Marketers Take on Environmental Planning DMA Board-Level Task Force on Environmental Issues, 1989 DMA Environmental Resource for Direct Marketers (First, Second & Third Editions), 1990 – 2004 DMA Robert Rodale Environmental Achievement Awards, Initiated 1991 DMA Committee on the Environment and Social Responsibility, 2005 DMA Environmental Planning Tool and Optional Policy or Vision Statement Generator, 2007 DMA Committee on the Environment & Social Responsibility:  DMA Committee on the Environment & Social Responsibility Established by Board in March 2005 Identify challenges germane to direct marketers Encourage members to make progress on these challenges over time Manage environmental performance of our membership Appoint members to facilitate these goals: subcommittee and working group Environment Record Designed and executed survey to benchmark DMA members’ business practices Selected benchmark project to inform and improve environmental performance Purposes of the DMA Environmental Planning Tool:  Purposes of the DMA Environmental Planning Tool Educate and suggest practices to consider in five general areas related to the direct marketing process -- Design & printing -- Paper procurement & use -- Packaging -- Recycling & pollution reduction -- List hygiene & data management Enable benchmarking in three areas of focus -- Improve list hygiene & targeting of print communications -- Increase recovery and recycling of post-consumer material used in catalogs and direct mail -- Support well-managed forests Why Does Environmental Performance Matter?:  Why Does Environmental Performance Matter? Recognize the formula: greater efficiency = less waste = less cost Understand heightened global concerns about environmental protection and how they influence our business Bolster and maintain consumer confidence and trust in our business, and the role environmental stewardship plays in this trust Recognize Fortune 1000 leadership and corporate citizenship – these firms are setting business trends in "green" activities Take responsibility for business matters that affect the planet – and find practical and innovative ways to manage these areas well What Environmental Planning is Not:  What Environmental Planning is Not A pursuit of environmentalism in our business without a recognition of where tradeoffs may exist A blueprint for being "green" – with higher profits as a guarantee The pursuit of an agenda set by a third-party organization which may or may not understand the direct marketing business A requirement that direct marketing businesses publish their environmental policies and practices publicly Desired Outcomes in our Use of the Planner:  Desired Outcomes in our Use of the Planner Make an understanding and consideration of environmentally helpful practices more easily accessible in their direct marketing operations Enable an internal assessment of present-day practices, one company at a time – currently 115 listed practices Enable a benchmark from which organizations can improve their environmental performance, with respect to direct marketing Deliver a Web interface that is easy to understand, easy to use, and easy to reuse over time ___________________ OPTIONAL: Provide a draft public policy or vision statement regarding the environment, for those organizations which choose to do so A Walk-Through of the Planning Tool:  A Walk-Through of the Planning Tool Section: Design, Production & Printing (17 practices):  Section: Design, Production & Printing (17 practices) Meta Brophy Director, Publishing Operations Consumers Union Environmental Responsibility in Production:  Environmental Responsibility in Production Communicate with stakeholders — marketing and creative, the production team, outside vendors. Everyone has a part to play — make assignments Agree to what you are collectively trying to accomplish Research, query, investigate options and shop Don’t stop until you understand the options and can present them clearly to your colleagues. Are you at least as conversant in marketing as your marketing colleagues are about production? File away ancillary information for the next project. Pass along information to others The Process:  The Process Use the Planning Tool:  Use the Planning Tool Reduce Waste Can you change the size? Can you eliminate a component? Can you reduce the weight? Can you cut the quantity? Can you route electronically? Reduce Toxicity Can you test out of the label? Can you find another method of creating interest and/or involvement? Recyled/Recylable/Reusable Materials Paper, poly, corn? BREs in inventory? Labels and adhesives? Suppliers:  Suppliers Once they are on board, they stay engaged Vendors are a valuable source for new ideas They can gather information and spread the word within the industry They share in the accomplishment: We want our vendors to make good choices, too Recent Successes:  Recent Successes Liftnotes on high-yield groundwood Letters on high-yield groundwood Postconsumer recycled content in self-mailers Biodegradable poly Die-cuts instead of labels Texture instead of adhesive or ink Geographic splits Key Challenges (Or Are They Opportunities?):  Key Challenges (Or Are They Opportunities?) TIME To research For the learning curve For comparative analysis EXPENSE: Print, Paper, Postage, Fuel Source reduction can mean cost saving Is there an upcharge? The future of flats What’s Coming Next? :  What’s Coming Next? Stora Enso and Neste Oil to join forces in biofuel development ”…developing technology for producing new-generation biofuels from wood residues to replace fossil fuels in transportation and thus cut greenhouse gases.” -- Stora Enso Press Release, March 16, 2007 Management thinking — Starting to ‘get’ responsibility “...a significant number of businesses have got past the ‘why’ of ethics and corporate responsibility—a critical breakthrough—and are now trying to wrap their brains around the ‘how.” -- Ethical Corporation, March 11, 2007 How Print Got Green “…printers are taking the business of being green very seriously, following many paths to get there.” -- Graphics Arts Monthly, March 2007 Design & Production In Summary:  Design & Production In Summary Look at every campaign anew Make environmental impact part of the assessment along with cost, quality, and delivery Do your research Use the DMA Environment Tool and the Resource Handbook Bring others to the table — internal and external colleagues Make others aware of initiatives — communicate outside your department Ask about what others are doing Suppliers’ Perspective Section: Paper Procurement & Use (45 practices):  Suppliers’ Perspective Section: Paper Procurement & Use (45 practices) Phil Riebel Director, Environmental Affairs – North America UPM-Kymmene Inc. Suggestions for Purchasing Environmentally-Preferable Paper Key points based on environmental footprint of paper :  Suggestions for Purchasing Environmentally-Preferable Paper Key points based on environmental footprint of paper UPM In Brief:  UPM In Brief Global leader in printing papers, among five largest producers in the paper sector Listed on DJSI for the fifth year in a row 2005 & 2006 industry group leader Top score in sustainable fiber sourcing & advanced environmental performance Ranked No.1 for sustainability by Time Inc. Second largest user of recycled fiber in the printing paper industry Paper Product Life Cycle :  Paper Product Life Cycle Wood raw material to the mills and energy wood to the power plants. Energy to the mills Chips and sawdust for energy production By-products for pulp and paper raw materials Paper for converting Pulp for paper manufacture Recovered paper "Environmental Footprint" View of Paper Production:  "Environmental Footprint" View of Paper Production UPM View: Companies are responsible for the environmental impacts caused during the entire life cycle of their products from raw material and energy sourcing to production, distribution, recovery and disposal Papermaking – summary of activities and environmental impacts Activities Road construction / harvesting / transport to mill Other raw material acquisition and transport (clay, pulp…) Recovered paper collection / transportation / sorting Roundwood / chip storage / processing (debarking chipping) Pulping (Kraft, TMP, GWD, DIP) Paper-making Shipping Printing (energy, ink, waste) Distribution / Use and Disposal Paper recycling Impacts Habitat Fossil fuel use / greenhouse gas emissions Water / energy use Wastewater emissions Noise, dust Runoff, solid waste Air Emissions Solid waste to landfill Environmental Guidelines for Purchasers 1. Using a life-cycle approach (footprint of papermaking):  Environmental Guidelines for Purchasers 1. Using a life-cycle approach (footprint of papermaking) Evaluate the environmental performance of suppliers over the key steps in the life cycle of paper - forest to final re-use Commit to using a report card to evaluate annual environmental performance Address the key steps of papermaking: -- Forest management -- Mill operations -- Purchased power -- Certifications -- Paper composition Evaluate report cards currently in use: Paper Profile EPAT (Environmental Paper Assessment Tool) EPDS (Environmental Profile Data Sheet) Integrate into purchasing decision Environmental Guidelines for Purchasers 2. Promote sustainable forest management:  Environmental Guidelines for Purchasers 2. Promote sustainable forest management We will promote sustainable forest management by increasing the level of third-party certified fiber in our paper, using recognized credible forest certification schemes such as PEFC and FSC. Forest certification levels are to be supported by a verified chain-of-custody. There are two international systems (PEFC & FSC) PEFC includes/recognizes SFI & CSA Based on several scientific / field assessments, all systems achieve sustainable forest management Three-country study done by UPM / DNV / WWF Only 7% of the world's forest are certified – focus on increasing this 72% of the certified fiber is under PEFC Verified chain of custody is important to show that the origin of wood is known and % is accurate Certified Forests Globally by Scheme :  Certified Forests Globally by Scheme National schemes: SFI: Sustainable Forest Initiative (NA) CSA: Canada's National Standard for Sustainable Forest Management FFCS: Finnish Forest Certification System MTCC: Malaysian Timber Certification Council FSC Sweden, FSC Maritime etc: (accepted by FSC) UKWAS: UK Woodland Assurance Standard (accepted by PEFC and FSC) Environmental Guidelines for Purchasers 3. Sustainable use of recycled fiber and promote the recovery of paper:  Environmental Guidelines for Purchasers 3. Sustainable use of recycled fiber and promote the recovery of paper We will use recycled fiber in appropriate grades where its use is economically justified and brings environmental benefits We will promote the recycling of our paper products 45-50% of paper products in NA still end up in landfills: There is a global need to increase the recovery rates of paper so that the recovered fiber can be used to make other products Environmental Guidelines for Purchasers 4. Reduce consumption:  Environmental Guidelines for Purchasers 4. Reduce consumption We will make efforts and set targets to reduce paper consumption This can mean using less paper and raw materials, lighter-weight papers, lower brightness, etc…. Less environmental impacts and raw materials per page Can save mailing costs as well Example: ENVIRONMENTAL SAVINGS PER PAGE (OF CATALOG / MAGAZINE) 40 LB TO 28 LB BASIS WEIGHT PAPER 20% less water used 10% cleaner wastewater 15 to 25% lower air emissions (SO2, CO2…) 15% less solid waste to landfill 28% less purchased electricity Environmental Guidelines for Purchasers 5. Energy and global warming. Carbon footprint.:  Environmental Guidelines for Purchasers 5. Energy and global warming. Carbon footprint. Energy and climate change: We value suppliers who have switched to less greenhouse gas (GHG) intensive energy sources such as carbon-neutral biomass, and are committed to continual energy-efficiency improvements We consider the impact of our paper on global warming Supply chain carbon (CO2) footprint Raw materials to mill Manufacturing Purchased power Transportation to printer, distribution Environmental Guidelines for Purchasers 6. Other items:  Environmental Guidelines for Purchasers 6. Other items Illegal logging Biodiversity Corporate social responsibility Health and safety Stakeholder engagement What is Environmentally-Preferable Paper?:  What is Environmentally-Preferable Paper? Sustainable use of wood fiber and recycled fiber in appropriate grades/locations Third-party certification of mills and forests Steadily increasing share of certified fiber supported by a certified chain-of-custody No illegal wood or wood from designated protected or conservation forest areas Increasing energy efficiency and biofuel usage – lower carbon footprint Meet best-available-technology levels for environmental indicators Continuous improvement in minimizing loading per ton of paper: air, water, effluent, solid waste Open, transparent and third-party verified sustainability / environmental reporting Buyers’ Perspective Section: Paper Procurement & Use (45 practices):  Buyers’ Perspective Section: Paper Procurement & Use (45 practices) Oliver Clode Vice President, Catalog Manufacturing & Marketing Finance Williams-Sonoma, Inc. Environmental Responsibility as a Paper Buyer:  Environmental Responsibility as a Paper Buyer Environmental stewardship is not just a fad – it has become main-stream and is now a business reality Everyone can make an impact, regardless of how much paper you buy One size does NOT fit all – every organization’s circumstances and approach will be different Educate yourself – understand the facts Be proactive – strategic and proactive solutions are always far better than reactive solutions Incorporate environmental thought leadership into your everyday language and practices Steps All Paper Buyers Should Take:  Steps All Paper Buyers Should Take How The Planning Tool Can Help:  How The Planning Tool Can Help Strategic Road Map Menu of specific principles and initiatives that all Direct Marketers can choose to adopt and implement Checklist for developing a baseline assessment Provides insights on key impact areas for continuous improvement Educational Tool – to assist Direct Marketers in better understanding environmental issues and options Policy Guide and Generator – easily helps establish a strong foundation right out of the gate Ongoing Evaluation Tool – provides a benchmark against which to gauge your progress and with which you can reset your baseline Motivators for Williams-Sonoma, Inc.:  Motivators for Williams-Sonoma, Inc. Corporate Responsibility It’s part of our culture Cost Savings $$$ Reducing waste and inefficiencies Increasing efficiencies Customer Awareness and Loyalty Increasingly important to our customer base Changing Values of the Workforce Attract candidates Retain employees Risk Mitigation Business interruptions from negative publicity/activist campaigns Legal actions/forced regulation WSI’s Environmental Journey – 2003-2006:  WSI’s Environmental Journey – 2003-2006 Educated ourselves on the key issues and established a Vision Audited catalog paper supply chain and set priorities/targets/goals Developed a Responsible Catalog Paper Procurement Policy Reached out and partnered with key external stakeholders Paper suppliers – ForestEthics – Peer Companies Printers – FSC – Other NGOs Reduced waste/increased efficiencies – saved significant $$$ Continued to streamline and improve our List Hygiene and Modeling techniques Tested and rolled out lower basis weight paper in all catalogs Re-evaluated and reduced trim-size on virtually all catalogs Renegotiated and significantly reduced printers’ spoilage allowances Expanded use of “versioning” Increased the use of the internet as a customer contact vehicle and ordering channel Tested and incorporated PCW recycled content into Flagship catalog Shifted virtually all (95%+) catalog paper to FSC-certified paper Words of Wisdom:  Words of Wisdom Don’t ignore environmental stewardship – take responsible purchasing seriously and be proactive about it Educate yourself and your organization, and develop a point of view Don’t be afraid to reach out to NGOs: Many are well-intentioned, have subject expertise and understand the need for finding market-based solutions Establish a responsible purchasing policy and communicate it to your stakeholders – move towards compliance Continually challenge yourself and your supply chain partners, and collaborate with them to find and develop new solutions, including addressing cost concerns – it doesn’t need to cost more Regularly review your progress, report on it, and reset the bar Section: Recycling & Pollution Reduction (32 practices):  Section: Recycling & Pollution Reduction (32 practices) Phil Riebel Director, Environmental Affairs – North America UPM-Kymmene Inc. Sustainable Use of Recycled Fiber:  Sustainable Use of Recycled Fiber Top 10 Printing Paper Producers Using Recycled Paper:  1000 tonnes Top 10 Printing Paper Producers Using Recycled Paper Source: Jaakko Pöyry 23.11.05 Enough to fill the Empire State Building 6 times Benefits of Wood and Recycled Fiber:  Benefits of Wood and Recycled Fiber Sustainable managed forests and recycled fiber complement each other as important raw materials for papermaking Benefits of using wood: Renewable natural resource Recyclable and re-usable material Climate protection (forests are a carbon sink) Carbon-neutral fuel (biomass) Benefits of using recovered paper: Efficient use of raw material Decrease landfill waste Save energy Creating responsibility and awareness for recycling Net Annual Change in Forest Area, 1990-2000:  Net Annual Change in Forest Area, 1990-2000 Annual change, %/a Total average annual change - 9.4 million ha Deforestation continues in tropical/subtropical forests in Latin America, Africa and Southeast Asia Key Factors for Sustainable Use of Recovered Paper:  Key Factors for Sustainable Use of Recovered Paper Economic and environmental benefits must be considered Paper is a valuable resource and should not go to landfills Key conditions: Minimal transportation Modern mills using B-A-T / reduced environmental load De-inked sludge used for energy generation, or re-used Paper mills integrated to DIP Paper grades adapted to pulp quality Lower end up to newsprint can be 100% RCF Recycled paper needs to be affordable and available Input of virgin fiber is essential to make the paper cycle work Fiber Resource & Demographics:  Fiber Resource & Demographics UK : high population density small forest resource small paper industry Recovered fiber resource predominates Finland and NA : low population density large forest resource large paper industry Virgin fiber resource predominates Germany and France: high population density medium forest resource medium paper industry Both virgin and recovered fiber net Virgin Fiber / Paper Exports Slide49:  Source: RISI Consumption of Recovered Paper by Region:  Consumption of Recovered Paper by Region Rest of Asia North America Western Europe Japan Eastern Europe China Latin America Forecast World consumption of recycled paper is expected to grow from 153 million tons in 2000 to 243 million tons in 2015 (average growth 3.1% per year). In volume terms, the growth will be fastest in Asia. Rest of the World Recycling in North America – General Points:  Recycling in North America – General Points China / Asia’s fiber deficit will be the main driving force for recycled paper trade worldwide EU and NA are very different due to population density, mill locations, transportation distances, mill investments North America: Larger distances Older mill facilities / higher environmental load RCP shortage High cost compared to mechanical wood fiber – high demand / low supply Landfill cost also drive recycling (NA are lower than in EU) In NA, the use of RCF fiber in catalog and magazine grades has no clear measurable economic or environmental benefit Although the initial intention may be to "help the environment" , the end result of using RCP in high end printing grades is currently driven by "eco-marketing" This is causing the environmental footprint (load, impacts) of paper to increase instead of decreasing It does not make much economic or environmental sense to take recovered paper away from one supply chain (i.e. board mills) and move it to another (i.e. catalogs and magazines) without ensuring growth of RCP availability Slide52:  LWC grade mech. fiber no RCF vs Competing Grade with 10% RCF Advantage of wood-fiber based paper If done sustainably and using best-available-technology, use of recycled paper can result in a lower environmental footprint of the paper (primarily less energy used compared to mechanical fiber):  If done sustainably and using best-available-technology, use of recycled paper can result in a lower environmental footprint of the paper (primarily less energy used compared to mechanical fiber) Environmental Guidelines for Purchasers Sustainable Use of Recycled Fiber and Promote the Recovery of Paper:  Environmental Guidelines for Purchasers Sustainable Use of Recycled Fiber and Promote the Recovery of Paper We will use recycled fiber in appropriate grades where its use is economically justified and brings environmental benefits We will promote the recycling of our paper products Due to global paper demand, there is a need to recover more paper….and grow more trees An approach that looks at the environmental footprint of our paper will ensure that we are doing the right thing for the environment There are other effective ways to reduce the environmental footprint of paper Lighter basis weights Lower carbon footprint Section: List Hygiene & Data Management (17 Practices) :  Section: List Hygiene & Data Management (17 Practices) Chet Dalzell Director, Public Relations Harte-Hanks, Inc. List & Data Management: We 'Own' This Opportunity:  List & Data Management: We 'Own' This Opportunity All direct marketing is data- based The list is more important than the offer and the creative Every aspect of a list can be tested The "supply chain management" for lists and data is completely in our control Our ethics guidelines for notice & choice span 35+ years The U.S. Postal Service is our ally in educating mailers Enterprise-wide data quality has gained c-level attention Responsibility rests with us Steps All List Managers Should Take:  Steps All List Managers Should Take The Tool Serves to Help Increase Mail Efficiency:  The Tool Serves to Help Increase Mail Efficiency We Maintain Suppression Lists We Offer Notice & Choice We Clean Our Lists Prior to Mailing We Merge/Purge Our Data We Test Market Offers Prior to Rollout Key Observations in List & Data:  Key Observations in List & Data No rocket science here Test, track and document Verify suppression applications The database as a 'Center for Customer Truth' Demo of the Tool on the DMA Web site: www.the-dma.org/envgen:  Demo of the Tool on the DMA Web site: www.the-dma.org/envgen Slide62:  We've Downloaded the Tool – What’s Next? Internal? Or External?:  Internal? Or External? Use this as an internal planning tool – revisit as necessary -- Tackle all at once simultaneously -- Section by section -- Practice by practice Consider adoption of language to share with external audiences: -- Suppliers -- Customers -- Corporate Policy -- Vision Statements Give DMA suggestions on possible practices to add to the planner -- environment@the-dma.org Questions?:  Questions? Next year, will you represent a Most Admired Company? Thank You!:  Thank You! To receive DMA’s free e-newsletter about corporate responsibility and environmental issues, please e-mail your contact information to environment@the-dma.org.

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