Marketing, Education, and Ethics in Sustainable Development

Size: px
Start display at page:

Download "Marketing, Education, and Ethics in Sustainable Development"

Transcription

1 Marketing, Education, and Ethics in Week 3 Sustainable Development NSCC - RES 132 Green Demographics and the Marketplace, Ethics in Marketing Sustainable Developments Cate O dahl, Instructor

2 Today s Class Agenda Examination of Green Demographics and the Marketplace History of Green Building in Pop Culture Key Demographics and Outcomes Green Building in Current Marketplace Demographic Shifts and Environmental Accomplishments Future Trends in Sustainable Development Projections of Green Building Growth and Impacts

3 Examination of Green Demographics and the Marketplace History of Green Building in Pop Culture Key Demographics and Outcomes

4 Examination of Green Demographics and the Marketplace Key Demographics and Outcomes How do customers hear about green? Who s listening? What about the not-so-green house? SmartMarket Reports from McGraw Hill Construction What is the color of the Green Consumer?

5 What is the color of the Green Consumer? Gender Age Marital Status Income Level Education Level

6 SmartMarket Report How Buyers Hear About Green Homes A green builder contacted me directly - 2% I contacted a green builder directly Television show Other 8% 10% Home show 8% 20% 10 % 28% 14% Word-of-mouth Internet site Source: McGraw-Hill Construction Print advertising Source: M cgraw-hill Construction Source: McGraw-Hill Construction Changes in Marital Status from 2004 to % 35% 30% 25% 20% 15% 10% 5% 0% 1% Green Home Buyer by Education Level 10% Did not High school complete graduate high school Source: M cgraw-hill Construction 32% Some collage 39% Collage graduate 18% Advanced degree 40% 35% 30% 25% 20% 15% 10% 5% 0% 40% 35% 30% 25% 20% 15% 10% 5% 0% Green Home Buyer by Income Level 10% Under $25K 26% $25K to $49K 32% $50K to $74K Green Home Buyer Changes in Education Levels from 2004 to % 12% High school graduate Source: M cgraw-hill Construction 41% 44% 29% Some collage 29% Collage graduate 19% 14% $75K to $99K % Advanced degree 18% $100K or more 70% 60% 50% 40% 30% 20% 10% 0% Green Home Buyers by Marital Status 59% Married 65% Married 69% Source: M cgraw-hill Construction Single/ Divorced 35% 41% % Single / Divorced 2007 data

7 Personal Attitudes and Preferences of Green Homeowners Interested in continuous learning and new experiences 79% Active as comparative shoppers 76% Enthusiastic about travel 73% Interested in cooking 64% Socially and politically knowledgeable 58%

8 Other Indicators Car Choice Grocery Store Preferences LOHAS Lifestyles of Health & Sustainability The Cultural Creatives

9 LOHAS

10 LOHAS + Cultural Creatives Lifestyles of Health and Sustainability Cultural Creative How 50 Million People Are Changing the World, New York: Harmony Books, October, 2000 by Paul H. Ray, Ph.D. and Sherry Ruth Anderson, Ph.D. Focus on better health, lower consumption, more spirituality, more respect for the earth and the diversity within

11 Cultural Creatives Cultural Creative

12 Green Building in Current Marketplace Demographics Shifts Gen-Xers bought 55% of new homes purchased in % of people surveyed for NAHB SmartMarket Report declared they were extremely knowledgeable about green homes Empty Nesters wanting to downsize Economy impact on downsizing

13 Green Building in Current Marketplace Environmental Accomplishments Credibility Training Product Labels

14 The Marketplace Existing Housing Stock, going beyond Custom Construction projects Production builders real impact Modular and system-built homes Condo and apt projects Commercial/Residential Projects Remodeled Homes Entire communities Green & LID

15 Future Trends in Sustainable Development Projections of Green Building Growth and Impacts McGraw-Hill Construction predicts green buildings will represent percent of new commercial and institutional construction starts by 2013, from about percent today Owners are motivated by lowering lifecycle costs (76%), higher ROI (64%) and improved tenant satisfaction (60%). Tenants as well are motivated by lower operating costs (96%) and improved employee satisfaction (71%).

16 Future Trends in Sustainable Development What about the Residential Market? NAHB estimates that by 2010, green homes could make up about 10 percent or more of the national housing market depending on the right mix of incentives and consumer education In Seattle, King County, Certified Homes make up 20-25% of the market, including Energy Star for Homes, Built Green and LEED GreenWorks Realty report on Seattle/King County

17 Remodeling Trends One of the largest construction markets 5% estimated growth over next four years Added benefits of greening an aging housing stock Effect of rising energy costs Critical to market opportunity

18 Trends 2010 Companies using lifecycle assessment (LCA) for carbon emissions & eco-impacts Walmart Sustainability Index Home Depot EcoOptions LEED Performance Initiative Organic Food

19 Greenwashing Exaggerated claims of environmental performance for a product or service

20 GreenWashing On the Horizon FTC on labeling WA Senate bill 6244, defines 'Green Home' and establishes rules for advertising SB 6635 sets definitions for Green Buildings in real estate appraisals. The laundry list of qualifying features includes sustainable site development, water conservation, energy efficiency, renewable energy, sustainable, recycled, or locally or regionally produced materials and resources, indoor air quality, and waste reduction. First reading 01/18/10

21 Next Class Marketing Green Buildings Required Field Trip Tony Case 3-Star Built Green Eva Otto, Infinity RED th Avenue South Infinity RED blog website on-line media Carpooling Arrangements