THREE | Information is power

Eco-labels, move over.

In 2007, companies from Seattle-based REI to Wal-Mart (NYSE: WMT) expanded their eco-label programs, offering consumers more information about the environmental impact of particular products. REI’s “Eco-Sensitive” hang-tags dangle from an anticipated 70 REI-branded apparel and gear in the spring 2008 collection, designating items manufactured with a high percentage of recycled, rapidly renewable or organic materials. Timberland began providing “nutrition labels” for its products, with information about how and where products were manufactured, including materials, energy use and factory location. Grocers introduced or expanded private-label organics and Marine Stewardship Council–certified seafood. The companies seem to have been at the forefront of a growing trend: Seattle-based consulting firm The Hartman Group released a report in October 2007 showing 30 percent of consumers read product labels “much more often” than they did in 2006.

But consumers now have access to much more information that goes beyond how a product was grown or made. While eco-labels help consumers change one behavior (purchasing habits), a number of new products and technologies aim to help consumers change behaviors with environmental impacts—especially how they use energy.

In 2008, a growing number of savvy companies are providing value-added services that help individual users make sense of the environmental data available, using the now-ubiquitous cell phones, PDAs, laptops and other personal communication tools available.

“It was only a matter of time,” says Michael Murray, president of Oakland-based Lucid Design Group. “People expect to be able to buy ringtones on their phone, and Chase lets you check your bank balance on your mobile phone. … There’s the expectation that more and more info is going to be put online.”

As the data available to energy companies and their customers become increasingly detailed, systems are needed to display the relevant information to the people who can make behavior changes that have an impact.

Facilities managers have had access to energy–management systems for several years, but the new breed of company is focusing on making that data more comprehensible to those beyond the operations division, including financial officers who want to keep tabs on how energy dollars are spent (and wasted), and everyday building occupants.

Murray’s company, Lucid Design Group, offers the “Building Dashboard,” an interactive online display that allows building users to see how their behavior impacts energy consumption [see “A kilowatt saved is a kilowatt earned,” SI, May 2007]. Sensors provide real-time data about building energy use from specific sources selected by clients. While the company can provide detailed monitoring about any number of systems, Murray says he encourages clients to focus on “discretionary” energy uses, such as lighting and electrical outlet use (known as “plug loads” in industry-speak). Utilities now estimate electricity used to power plug-in devices such as cell phones and laptops could surpass lighting usage in five to 10 years.

“Plug loads are more or less directly controlled by individuals,” Murray notes.

Positive Energy, a Virginia– and San Francisco–based startup currently operating in stealth mode, is currently testing a pilot home energy analysis product with a segment of Sacramento Municipal Utilities District (SMUD) customers.

Positive Energy combines customers’ energy use data from SMUD with public information about their home size. Monthly utility bills show customers how their energy use compares with that of their neighbors in similar homes. Scott Forman, product manager with Positive Energy, says changing user behavior is likely to be one of the more cost-effective ways utilities can improve energy efficiency in 2008, even when compared with current tools such as rebate programs.

Lucid Design Group sees a similar pattern. “I see this as the next low-hanging fruit,” Murray says. “Beyond better lighting systems, cooling systems, the next thing to do before spending millions of dollars is to try and change people’s behavior. That’s our overall approach.”

Nissan Motor Co (Nasdaq: NSANY) is banking on its customers’ ability to self diagnose as a way to improve its cars’ fuel efficiency. The carmaker announced in August 2007 it would begin installing fuel–efficiency gauges in all its new models, as well as in any current models due for “minor product freshenings.”

The displays give drivers immediate feedback on how their driving behavior affects the car’s fuel efficiency. According to a company press release, Nissan tests indicate the gauges can help drivers improve the fuel efficiency of their driving style by as much as 10 percent through smoother acceleration and braking.

That said, Murray also points out just providing data isn’t enough. “An important part is not just the product itself, but other people talking about it, communicating the value of it,” he says, adding the company can’t guarantee energy savings. “It’s up to the client to have an educational program,” Murray says.

While Lucid doesn’t provide educational programs, it does encourage its clients to pair the Building Dashboard with in-house outreach programs.

A 2006 study by Sarah Darby of Oxford University’s Environmental Change Institute found energy consumption feedback has more significant and longer-lasting effects when combined with specific advice on how to modify behavior and incentives to support behavior change. Fortunately, when it comes to energy, prices have a strong impact on behavior for most residential users (or individual drivers).

Consequently, some companies say time-of-use pricing for energy can provide a built-in incentive for reductions in a residential setting. But what about in offices or campus buildings, where building occupants don’t pay for energy use, and therefore reap the financial benefits of better behavior? Murray points to competition as one way to encourage participation in data-driven programs. “Giving people the chance to be number one can really get them motivated,” Murray says.

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TrendWatch 2008
The Sustainable Industries editorial team talked with dozens of industry leaders, reviewed hundred of articles, and sifted through stacks of research to bring to you, our readers, insights on what to expect from sustainable industries on the West Coast and beyond in the year ahead. Keeping reading for more insights into the year ahead!
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