Peloton nudges the Finnish economy towards energy efficiency

Peloton is an initiative of Demos Helsinki with the support of Finnish Innovation Fund Sitra.

what influences behavior?

Legislation

Subsidies

RegulationOffering

Peer Action Education

Marketing

Media CoverageSocial norms

Convenience

Price

Perceived Convenience

PerceivedPrice

Chance

Opportunity toTest

Nudge

Reduce Complexity

Peer Comparison

Status

PRAGMATIST APPROACH TO THE FUTURE

ClimateChallenge

Low-CarbonSociety

emission limits, price for carbon, subsidies,...

participation, social innovations, lifestyle changes,...

acceptance for new regulation

(INTER)NATIONAL

POLITICS

CITIES, PEER GROUPS, COMPANIES

hypothesis 1: focus on choices

1) Predisposing factors (knowledge, attitudes, norms) are – at least partially – conducive to a change towards low-energy lifestyle. 90 % Finns think that climate change is a fact / 85% consider it a serious threat / 80 % ready to take action

2) Finland #7 in per capita energy usage amongst OECD countries. Change of attitudes has not significantly changed behavior. Energy consumption is rising, meat consumption is rising etc.

3) Pro-environmental actions are more important than values. Most campaigns manage to raise awareness but do not translate into action. The focus of policies targeting behavioral change has shifted towards deliberative and participatory measures.

conclusion: influence the choice environment consumers/citizens make their decisions in.(Demos Helsinki 2009, Eva Heiskanen 2011, Finnish Environment Institute 2009, WWF Living Planet Index 2010, IEA 2011)

hypothesis 2: focus on lifestyles

1) Both the interventions and research on consumers' energy-related behavior have traditionally concentrated on direct energy use (heating, electricity, transport). Needed reduction in energy consumption requires adoption of completely new habits.

2) The outstanding research by Finnish Environment Institute (ENVIMAT) highlights the key consumer questions: housing, transport, food.

3) Energy scarcity is less contested than debate on emissions. Energy use is indicative of emissions.(Demos Helsinki 2009: Gatekeepers changing consumers' behaviour in energy consumption)

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Mistä suomalaisen hiilijalanjälki koostuu?

Source: Envimat www.ympäristö.fi/syke/envimat

Asuminen

Liikkuminen

Ruoka

Kuluttaminen

Vapaa-aika

Matkustaminen

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hypothesis 3: gatekeepers are key to behavior change

1) Gatekeepers define the choice environments as they transform people´s needs and desires into choices and decisions. They enable or deny access to low-energy behavior. Peers and professionals close to the consumer do this in terms of energy-related practices.

2) Previous research has considered legislators and green businesses as gatekeepers for energy consumption. This view tends to underestimate the complexity of the selling/purchasing process with its subtle factors leading to a decision. Therefore only a small part of energy gatekeepers have understood that they have this role.(Demos Helsinki 2009: Gatekeepers changing consumers' behaviour in energy consumption)

New Behavior

Better Choice Environment

New Legislation

More and BetterProducts and Services

Cooperation withPioneers

Testing Productsand Services

Peer Production

Gatekeepers

gatekeepers change the choice environment

WHO HAS A VESTED INTEREST?

tommi.laitio@demos.fiwww.demos.fi

[Peloton]!Peloton is the main group in a cycling tournament. In Peloton the competitors

cycle close to each other to save energy and to gather strength for a break-out.!Peloton is a joint e!ort of Demos Helsinki and Sitra to boost new, greener

economy.

how peloton works?

We engage with gatekeeper communities on a human level. We use participatory future studies and design thinking methods in two-day intensive workshops.

The workshops bring the competitors togethers. Companies send people from every level of the organisation (altogether 20–25 participants). By raising awareness of all competitors simultaneously, we create hunger to be the first in executing a good idea. Low-energy future is tackled by creating ideas for new products and services.

In 2009–2011 we have done workshops for instance for parents of small children, hardware stores, lifestyle media, HR, domestic travel and hospitality, food journalists, home economics teachers, social housing and house managers.

Our aim has been to...kickstart low-energy innovation and commercialisation in the most important consumer companies.

We have been successful in... bringing new products and services out and adding value to old ones in most of the organisations we have engaged with.

some results

•Biggest hardware store chain K-Rauta launched a a new service concept for offering a full-service energy efficiency home renovation. (understanding how comfort, ease and savings can be linked with sustainability and profitable business) •Fastest-growing women´s magazine Olivia increased writing on domestic travel and vegetarian cuisine. (understanding sustainability as helping readers make better choices)•Next generation travel agency Nopsatravels helping people find local luxury. (understanding the unique value and experiential potential in domestic travel)•Fazer Food Services launched a climate-friendly/seasonal lunch option. (branding climate-friendly cuisine as an added value, not as opting out, emphasis on taste)•Food services of the City of Lahti set themselves strict energy conservation targets.

peloton innovation camp

In November and December 2011 we organised 2 two-day startup camps for low-energy business. Over 150 professionals from various sectors worked voluntarily in 16 teams to develop better services and products.

winning concepts- Wasted Space: next generation real estate firm utilising wasted and underused spaces- Weego: car-sharing service- Hyvikki: Rebranding food close to its last date of purchase - Powerhouse: app helping energy companies reduce consumption peaks and consumers to follow their usage

questions?

Demos Helsinkihttp://demos.fi/englishhttp://www.peloton.me/in-english/