…an international market development company Green Technology in the Global Landscape Choice vs. Necessity September 19, 2008

Macro Economic Drivers Global Corporate Executives are driving Green business opportunity: 61 % of execs say it is important that their companies take steps to reduce their environmental impact.

Widgets are Winning 60 % of technology manufacturers are developing green products and services, compared to only 33 % of non- manufacturers (services or SW).  Today the Green market is in physical products more than services

Technology Manufacturers Expanding the portfolio of green products and services designed to: –Provide energy efficiency –Reduce or eliminate the use of hazardous materials –Integrate recycled or recyclable materials –Create products that last longer –Sell in packaging that meets or exceeds global environmental standards –Reduce product weight & improving capacity for recycling

Services’ Greening Behind in the curve - two efforts: –Green technology consulting services –Software aimed at helping organizations conduct business virtually

Evolution of Green Business Opportunities In each country, determining factor as to whether opportunity exists: who drives local Green initiatives? –Consumers? (LOHAS) –Corporations? (Wal-Mart) –Government? (Needs-based) Typical Identifiers: –Cultural backgrounds vs. Per Capita C02 output

Mobile Carrier Customer Green Inclinations (USA) 43% of Subscriber s 39% of Subscriber s 42% of Subscriber s 31% of Subscriber s

Source: Fraunhofer Institute, Berlin Germany and California Department of Energy (June 2007) The CO 2 emissions from the manufacture & usage of a cell phone power supply for 53 Million mobile subscribers charging once every 2 days for 2.5 years is 420 Million Pounds of CO 2. This is equivalent to driving 190,000 US cars over a 12 Month Period. Doing the Math: Why Tech Products are Greening

Choice

Who is the Green Audience Today?

Who is the Green Audience Today? Reality: Lifestyles of Health and Sustainability (LOHAS)  One in five U.S. consumers are LOHAS consumers – passionate about environmental & socially responsible living  LOHAS products are estimated to be a $209 billion industry…forecasted over $400 billion by 2010

Insights & Implications Tech-savvy shoppers are environmentally aware  This segment over-indexes on their use of tech products (mobile handsets, MP3s, etc.)  These consumers consider themselves well-informed - and act as recommenders to others (i.e., early adopters) Product mix and messaging should appeal to their ideals  Opportunity to leverage fast-evolving and lifestyle categories (MP3, cell phones, cameras)  Educate on sustainability benefits and renewable resources for lifestyle products InsightsImplications

Choice

LOHAS Markets –World’s most Green consumers –Pushing governments and expecting business to create products to fill their demands –Large business (Wal-Mart, etc.) are taking steps before the government.

Japan Leader in Solar technology Active government –Rare case where government leading effort Cultural / historical ties to Green

Germany LOHAS segment is pushing government. Industry leaders in solar, wind, materials technology Fraunhofer Institute

Necessity

Necessity

Necessity

India & Brazil are Green Developing Markets Why? –Climate & natural resource factors Attracts Green tourists, fuels Green tech –Large and growing populations Serious long term resource concerns –Advanced government influence

And the Other LATAM & Emerging Economies? LOHAS segment does not transcend economies well Large energy consuming economies & petroleum based Current government energy subsidies prevalent – curbs corporate and individual Greening Worries with growth, population trump Green ‘luxuries’ But what might drive change?

…an international market development company Green Technology in the Global Landscape Choice vs. Necessity September 19, 2008