1. Leveraging what buyers care about to move the market forward August 7, 2012 Changing the game for biobased:

4. We help companies define and leverage their sustainability commitment to gain a market advantage.

5. Our Clients – We Know Sustainability

6. Level setting The market opportunity

7. 2009 2010 2011

8. In which product categories are you searching for greener products? 70.8% 60.7% 59.2% 58.0% 46.5% 46.0% Light bulbs/fixture s Home cleaning Laundry/dish washing PaperFood/bevera ges Personal care

9. How do you know that a product is green? 48.8% 39.7% 31.0% 25.0% 22.8% Ingredients, content, energy savings details Label says soCompany has green reputation Certified by 3 rd party Advertising says so 27.0% Researched on the internet

10. Activities that enhance your corporate environmental reputation: 21.8% 21.5% 18.2% 17.1% 16.9% 15.8% Manufacture in the U.S. RecycleMake recyclable products Remove chemicals of concern Make all- natural products Create no chemical waste

11. The best thing to read about a product’s packaging 27.7% 17.4% 14.7% 6.9% 5.9% RecyclableBiodegradableMade of recycled content Don’t know30% less packaging 8.4% Made from renewable resources

13. So why aren’t products labeled biobased flying off the shelves?

14. Compared to other claims, the market doesn’t “get” the value proposition

15. Laundry Detergent Product Attributes BrandTide ® Arm & Hammer ® Seventh Generation ® Water conservationLow-water (HE) formula Traditional (non-HE) formula Price150 oz./96 loads for $7.97 150 oz./96 loads for $12.99 150 oz./96 loads for $17.97 FormulaStain-fighting formula Cold water formula Biodegradable formula Plant-based formula SensitivityFree of perfumes Fresh, clean scent Free of dyes and brighteners PackagingTraditional, plastic bottle Biobased, non-petroleum bottle Bottle-made with 50% post-consumer recycled content 2x concentrated formula in a smaller bottle

17. Green Pea Product Attributes BrandGreen Giant ® Birds Eye ® Cascadian Farm ® ProductionTraditionally grown Grown from non-genetically modified seeds/plants (no GMOs) USDA Certified Organic Produced with no pesticides or chemical fertilizers SourceProduced in the USA Produced in China Produced in Chile Price$1.00 $1.30 $1.60 PackagingPlastic microwave steamer bag Traditional coated paperboard package Paperboard package made with 30-percent post-consumer recycled fiber Biobased, non-petroleum plastic packaging

19. So how can you help the market see the value proposition and leverage the affinity for biobased?

20. A Case Study

21. Initial Request: We must get Americans to understand the vital importance of water conservation.

27. To create real behavior change we must: Move people from automatic behaviors to conscious choices Make the problem visual Make the problem uncomfortable Give them a specific, simple action step

28. Aha! Wake people up to the moment when using water becomes wasting water.

31. 121 markets 290 stations 432 million impressions 29% who saw it said it moved them to change their water usage habits.

32. Lessons Learned

33. You don’t have to go it alone.

34. You can make a bigger impact together.

35. You can take greater creative risks.

36. Takeaways

37. Don’t try to scare the market into buying

38. Don’t try to educate the market into buying

39. Connect them to the real, underlying benefits of biobased they actually care about

40. To create real behavior change you must: Move people from automatic behaviors to conscious choices Make the problem visual Make the problem uncomfortable (in a light way) Give them a specific, simple action step

41. Together, you can drive demand for biobased products

42. Discussion

43. Thank you! Suzanne Shelton 865.524.8385 sshelton@sheltongrp.com