Creating Sustainable Shareholder Communications Presentation to the Shareholder Services Association April 16, 2009 Presented by: Nancy Schueneman DG3 Senior Account Executive, Green Committee Chair
Key themes • Printing has an environmental impact • Every method of communication does • We can and should reduce the environmental impact of printed communications • Communicating with shareholders is crucial • Continue to communicate • Communicate the steps you take to your shareholders
Agenda • Where we are now • What can we do • Paper • Processes • Power • Environmental statements and claims • Measurements of environmental impact
Where are we now:The state of paper… • Each man, woman and child in the United States uses 700 pounds of paper annually and the average office worker generates 2 pounds of paper waste per day. • Paper and printing related expenditures typically represent 15 percent to 35 percent of every corporate dollar spent exclusive of labor, according to the ISC (Institute for Sustainable Communication).
Where are we now:The state of forests… • US forest land has increased by more than 10 million acres in the last 20 years -Society of American Foresters • Although recycled fiber does indeed offset virgin fiber content, it’s important to remember that forests are renewable resources. • Recycled fiber’s biggest contribution is diverting waste from landfills.
Where are we now:The state of waste… • In 2007, Forbes magazine named a waste paperrecycler, Zhang Yin, the richestwoman in China. • Rather than being recycled locally, waste paper is America’s single largest export by volume, with 35% being sold to Asian Buyers like Zhang Yin • Waste paper accounts for nearly 40% of US municipal solid waste
Where are we now:Paper is an important means of communication • The development of societies and businesses have been dependent on paper for more than 2,000 years • Paper consumption shows little sign of decoupling from economic growth. Globally, paper consumption has increased 20 fold this century, has more than tripled during the past 30 years, and is expected to double again by 2020. • World Resources Institute • The total economic, environmental and social costs and risks associated with the direct and indirect use of paper by business tend to be unmeasured, underestimated and therefore unmanaged. • Anyone and everyone in a company can buy, use and waste paper.
What can we do:Alternative delivery methods • There are many ways to “get the message out”: Regulated channels: • Printed materials • E-Delivery • Internet/Websites Unregulated channels: • Social Networking • Blogging
What can we do:When choosing print as the communication channel 3 core initiatives to manage the environmental impact of print: • Paper- Paper is the single largest cost component of nearly every printed product. What type of paper are you using? • Processes- There are many processes involved in producing and delivering printed materials. How do your suppliers manage these processes to minimize environmental impact? • Power- Print is a utility intensive business. How are your suppliers fueling their factories?
Paper:Recycled content and certifications • Recycled content: • Virgin • Recycled • Post-consumer recycled • Certifications • Forest Stewardship Council Chain of Custody • FSC • Sustainable Forestry Initiative • SFI • Programme for the Endorsement of Forest Certification schemes • PEFC
Paper:Recycled content • Virgin fiber • Fiber from the tree • Recycled content • Waste gathered from the original paper pulping process (trimmings) • Has not yet been introduced to a commercial purpose • Post consumer recycled content • Captured from the waste stream • Paper was reintroduced to a light pulping process to reclaim fiber • Introduced into another phase of life
Paper:FSC certification • Forest Stewardship Council - FSC • The FSC certification ensures consumers that the products with this logo are from “forests that are managed to meet the social, economic and ecological needs of present and future generations”. • Approximately 7% of the world’s productive forests produce FSC certified timber (fsc.org). • FSC is the fastest growing forest certification in the world (UN FAO, 2007; fsc.org). • The total economic, environmental and social costs and risks associated with the direct and indirect use of paper by business tend to be unmeasured, underestimated and thereforeunmanaged. • Anyone and everyone in a company can buy, use and waste paper.
Paper:SFI and PEFC certifications • Sustainable Forestry Initiative – SFI • SFI Inc. is a fully independent, charitable organization dedicated to promoting sustainable forest management. They work with conservation groups, local communities, resource professionals, and landowners to promote responsible forest management. • Programme for the Endorsement of Forest Certification schemes • An independent, non-profit, NGO which promotes sustainably managed forests. • Its 35 worldwide independent national forest certification systems represent more than 210 million ha (one square hectometer (100 meters, squared)) of certified forests • Largest forest certification system in the world, covering about two-thirds of the globally certified forest area
Process:ISO 14001 ISO 14001 • ISO 14001 is the international specification for an environmental management system (EMS). • Requirements for: • establishing an environmental policy • determining environmental aspects and impacts of products/activities/services • planning environmental objectives and measurable targets • implementation and operation of programs to meet objectives and targets • checking and corrective action • management review
Process:Reduce and reuse • Waste stream recycling • Office • Chemical usage and recycling • Prepress • Press • Cleansers • Employee transportation • Carpooling • Transit checks • Employee shuttles • Obsolete paper inventory use • Donations • Office use
Process:Inks • Non-Petroleum based inks • Soy, Vegetable, Sugar Cane… • By printing with Veggie based ink, consumers are replacing the need for a petroleum product with a renewable, much more environmentally friendly product. • Veggie ink is available in brighter colors, increases the lifespan of an offset printing press and significantly increases the ability to recycle a printed product. • Volatile Organic Compound (VOC) minimizing • These inks also have zero to very minimal quantities of VOCs, which when released into the environment, create ozone.
Process:Design considerations • Finished size of book • Reducing size slightly, reduced size of roll, roll waste • Page count • Bleeds • Requires larger paper, extra processes • Ink coverage • Type of ink (UV) • Lightweight papers • Use of vendors with all manufacturing disciplines • Freight and fuel consumption
Power:Types • Types: • Wind turbines • Solar panels • Mixed Sources • Hydropower • Biofuel/biomass • Geothermal • Tapping into these sources • Direct from the Grid • Direct from the source • Renewable Energy Credits (RECs)
Power:REC Certifications • Renewable Energy (Green – E Certified) • Electricity production is the leading cause of industrial air pollution in the United States (green-e.org). • Green – E is a certifying body for renewable energy and green house gas reduction. The contributions RECs (Renewable Energy Credits) significantly contribute to the advancements of renewable energy development and production within the United States. • The usage of the logo that accompanies this certifi-cation is limited to organizations who are members of the Green-E marketplace. For additional inform-ation see http://www.green-e.org • Renewable energy purchase is also recognized by certification through the EPA Green Power Partnership
Power:State and federal certifications • EPA Green Power Partnership • voluntary program that supports the organizational procurement of green power • Federal recognition • NJDEP • New Jersey Department of Environmental Protection • Voluntary program in each state indicating distinction in environmental leadership
Environmental certification for paper, process and power • Green Seal • A Green Seal Certification Mark on a product means that it has gone through a stringent process to show that it has less impact on the environment and human health. Green Seal takes a life cycle assessment approach, evaluating a product from the raw materials through the manufacturing process and ending with recycling or disposal. Products only become certified after rigorous science-based evaluation, including on-site plant visits. • Green Seal Certification requires that the product: • Contain a minimum of 30% post-consumer recycled content. • Manufacturing operations be improved to reduce use of energy and materials • reduce wastes and emissions associated with the process of making the product.
Environmental statements and claims:Understanding sources… • There are many organizations that have established their own recognitions and guidelines. • Industry Specific • Particular focuses • Caution: Many groups have capitalized on the green movement and have significantly contributed to “green washing” (aka confusion). These distinctions should be examined and taken lightly and regarded as purely a recognition of the organization. It is not a reflection of the particular industry. • Rely on industry standard certifications
Environmental statements and claims:Understanding sources…Making Environmental Claims • Communicate your success! • Share your environmental improvements with the shareholders • “Effective corporate messaging manifests in many ways. Our data shows that consumers are less price-conscious if they share values with the brand. Consumers tend to be more loyal to the brand and more likely to talk about the brand…” -Gwyne Rogers, Natural Marketing Institute
Environmental statements and claims:Possible positioning… • “This document was printed on paper from responsibly managed forests with soy based ink and 100% renewable energy credits.” • “This annual report was produced using 100% renewable energy credits and 30% post consumer recycled paper with soy based ink.” • “Printed with Green-E Certified RECs on post consumer recycled stock and soy based inks.” • “This document is being produced by an FSC (Forest Stewardship Council) Chain of Custody supplier with Green-e certification and membership in the EPA Green Power Partners Leadership Club. It was printed with the use of 100% renewable energy credits and soy based ink. The paper used is 30 percent post-consumer recycled waste. The amount of energy saved was the equivalent of 2.5 American homes for 1 full year with an equivalent savings of 2.8 cars on the road for one year in Greenhouse Gases.”
Measurement of environmental impact:Communicate meaningful facts • Calculate the environmental benefits and put it into tactile and quantifiable units… • www.papercalulator.org • www.environmentalbychoice.com • By using Post consumer recycled paper in lieu of virgin fiber: • Greenhouse Gas (GHG) emission reduction equivalent to cars taken off the road • American homes saved in BTUs • Solid waste saved in garbage truck volume • Waste water saved in Olympic swimming pools • Trees saved
Measurement of environmental impact:Communicate meaningful facts Carbon footprint The total set of GHG (greenhouse gas) emissions caused directly and indirectly by an individual, organization, event or product UK Carbon Trust 2008 Carbon neutral achieving net zero carbon emissions by balancing a measured amount of carbon released with an equivalent amount sequestered or offset
Implications of sustainability $$$$$$ $$$$ $$$$ $$ $ • Sustainability requires investment • These costs will typically be passed on to customers • Beware of natural de-selection of environmentally friendly printers in a bidding process
Recap • Seize the opportunity with the obligation • Continue to communicate with shareholders using proven methods • Design and produce to minimize environmental impact • Select the most environmentally responsible suppliers • Correctly communicate to your shareholders the steps you have taken
Questions?Contact Info:Nancy Schueneman201.email@example.com