Building a Powerful and
Enduring Brand:
The Past, Present, and Future
of the ENERGY STAR9 Brand

"We do not inherit the Earth from our ancestors,
 we borrow it from our children."
 Native American Proverb

Overview                                  3
Background: Brands                         4

The ENERGY STAR Brand                     8

History of ENERGY STAR                    11

The Future of the ENERGY STAR Brand         36
                                   1 I ENERGY STAR


Brands  are  assets  and
the  value of a strong
brand  is incontestable,
Brands  are  highly
sophisticated  and  require
rigorous strategies to in-
crease  their value,
Key to their value is the
development  of loyal
customers that come
back again  and again,
The ENERGY STAR has grown into a well-recognized consumer
brand, the result of well-crafted strategies, market-defined
insights, and a perseverance to always improve on the past, To
ensure the brand's continued success, a wide spectrum of
information is included in the following report so the facts can
inform the future path of the brand,

The goal of this report is to provide information and a greater
appreciation for the:

.  Art and science of branding

.  Core principles of the ENERGY STAR brand

.  Evolution of the ENERGY STAR brand

•  Future opportunities and challenges

•  Ways to ensure future success

Brands can evolve over decades, The ENERGY STAR brand is still
young, but it has already accomplished much, It also has many
frontiers yet to conquer,
                                            This report was prepared by Interbrand, Interbrand is a leading
                                            international branding consultancy specializing in brand services
                                            and activities, including: brand strategy, visual and verbal identity,
                                            and brand valuation, Interbrand has been working with the
                                            ENERGY STAR program since 2001 to provide strategic counsel
                                            and brand management expertise,
                                                                         3 I ENERGY STAR

This section provides the
academia-  and industry-
accepted definitions of
"brand," as well as a brief
summary of the signifi-
cance of brands,  It provides
an  important backdrop for
examining  the achieve-
ments of ENERGY STAR
to date  and the challenges
that the  ENERGY STAR
brand faces,
What  is  a brand?
A brand is the most misunderstood and broadly defined concept
in modern marketing, We have endeavored to provide the most
succinct and accepted definition, as stated in The Interbrand
Glossary (October 2006),

A brand is a mixture of attributes, tangible and intangible,
symbolized by a trademark, which if managed properly, creates
value and influence, "Value" has different interpretations: from a
marketing or consumer perspective it is the promise and delivery
of an experience; from a business perspective it is the security of
future earnings; from a legal perspective it is a separate piece of
intellectual property,

A brand is intended to secure future earnings by growing
customer preference and loyalty, Brands simplify decision-making,
represent an assurance of quality, and offer a relevant and
credible choice among competing offerings,
What  is  not a  brand?
                                        A brand is not an advertising campaign, a slogan, or a logo; nor is
                                        it solely created for the customer, A brand must resonate with all
                                        stakeholders: employees, shareholders, customers, partners, and
                                        end users,

Why  do   brands  matter?

Excerpt from Brands &  Branding (Febuary 2004), chapter titled
"What is a brand?":
In developed economies, consumers have an astonishing, often
bewildering, array of choices, There are, for example, dozens of
car  manufacturers, hundreds of car models, and thousands of
different vehicle specifications to choose from, This diversity of
choice puts pressure on those making or selling products or
services to offer high quality, excellent value, and wide availability,
It also puts pressure on them to find more potent ways of differ-
entiating themselves and securing competitive advantage,

Much of the skill of marketing and branding is concerned with
building equity for products whose characteristics, pricing
distribution, and availability are really quite close to each other,
Take cola drinks, Coca-Cola and Pepsi-Cola are able to dominate
the  worldwide market, Their worldwide distribution network no
doubt plays a part in this, but the main factor is  the strength and
consumer appeal to consumers, The strong, instantly recogniz-
able names, logos, and colors of these two brands symbolize their
makers' promise that consumers' expectations will be fulfilled,
whatever the subtleties of these might be,

Brands allow consumers to shop with confidence, and provide
a route map through a staggering array of choices... The real
power of successful brands is that they meet the expectations of
those that buy them or, to  put it another way, they represent a
promise kept, As such, they are a contract between a seller and a
buyer: if the seller keeps to its side of the bargain, the buyer will
be satisfied and more likely a loyal repeat customer,
What  are the  spheres  of
 brand   influence?
As the definition of a brand has evolved over the last half century,
the brand's sphere of influence has also expanded in ways that
were once unimaginable, Historically, the brand was restricted to
the narrow definition of the logo—a symbol that simply marked a
territory, Now the domain of the brand has expanded to all points
of the compass (see graphic below), The brand is documented
and noted as having a  profound  influence  on corporate cultures
such as Southwest Airlines, distribution channels such as eBay,
investors through a brand such as GE, and government brands
through Tourism and Economic Development Departments,

These new constituents are also  influenced by a growing array
of communications tools from conventional advertising, to the
science of Direct Marketing, to the viral nature of Guerilla
Marketing, to the age-old standard of Public Relations, The
power of word-of-mouth is perhaps the most potent and least
appreciated sphere of influence where the brand has a deep
and influential role; consider, for example, the fact that the  most
compelling reasons for buying an automobile are recommenda-
tions from friends and  relatives,

Today, brands have evolved into highly complex and sophisticated
assets that demand a rigorous strategy to  increase their value and
influence on both internal and external audiences,

The following are components that define  a brand:
 How  has the  use of
 brands  evolved?
Quoting from Brands & Branding:

The wide scale use of brands is essentially a phenomenon of
the late 19th and early 20th centuries, Hand in hand with these
brands came early trademark legislation, which allowed the own-
ers of these brands to protect them in law,  It is in the period since
the end of World War II that we've seen the real explosion of the
use of brands,

An activity that, for three quarters of a century, was mainly con-
fined to consumer goods and services, now features in industrial
and BtoB sectors, the public and voluntary sectors, utilities, and
non-governmental organizations, Football teams, political parties,
and pop stars alike all now consider themselves brands,
                                      mer Sendee
                                                                                                  5 I ENERGY STAR

What  are the  benefits

of  branding?

Brands are business assets, and the value to businesses of
owning strong brands is incontestable, Brands that keep their
promise attract loyal buyers who will return at regular intervals,
The benefit to the brand owner is that forecasting cash flows
becomes easier with repeat customers, and the brand owner can
plan and manage with greater confidence the development of the
business, Thus brands, with their ability to secure future income,
can be classified  as productive assets in exactly the same way as
any other, more traditional assets of a business (e.g.,  plants,
equipment, cash, investments, and so on),

The asset value of brands is now widely recognized by both brand
owners and investors, Brands can generate high-quality earnings
that directly affect the overall performance of the  business and
thus influence  share price,

According to, "Brand Called You"  by Steven
Van Yoder: Brands have a number of strategic functions, enabling
brand owners to:

.  Differentiate from the competition,

.  Position a focused message in the hearts and minds of
   target customers,

•  Persist  and  be consistent in marketing efforts,

•  Customize services to reflect the
   personal  brand,

.  Deliver messages clearly and quickly,

•  Project credibility,

.  Strike an emotional chord,

•  Create  strong  user loyalty,
What  are the  principles  of

effective   branding?

Interbrand advocates eight principles of effective brand manage-
ment for maintaining or building the value of a brand, These
principles are exemplary and drawn from the experience of many
of today's most successful brands,

1, The brand continuously delivers  benefits that meet and exceed
  customer expectation in the following ways: quality of service
  or product, customer-driven design, making lives more
  efficient or enjoyable, meeting a previously unmet need and
  innovation (e.g., Target Stores),
2, The brand is relevant to defined audiences through rigorous
  segmentation, tailored  messaging, a unique proposition, and
  creative execution (e.g., AT&T),
3, The brand's pricing captures the customer's perception of
  value by striving for a premium cost, inking pricing to intan-
  gible benefits, and communicating exclusivity (e.g., Starbucks),
                                                           4, The brand is differentiated, ownable, and credible, The
                                                              positioning is creative and strategic, The promise made is
                                                              the promise delivered, The brand remains fresh and exciting
                                                              through constant evolution (e.g., MINI),

5, The brand is constant yet flexible, There is a 70/30 principle
  for global branding, This rule of thumb dictates that 70% of
  the brand must remain  absolutely consistent and 30% is given
  flexibility, Consistency drives recognition, so the core  meaning
  of the brand cannot be  changed, However, flexibility gives the
  brand room to evolve (e.g., Marriott Hotels),

                    HOTELS & RESORTS
6, The brand architecture is clean, clear, and intuitive, This
  ensures synergy between brands—leveraging equity across
  the branded portfolio, A guiding principle in brand architec-
  ture is to think like your customer, How do your customers
  see your brand segmentation? This should be an externally
  looking  exercise (e.g., GE),
The  Brand  Continuum
Another framework used by many brand  managers to commu-
nicate essential elements in effective brand management is the
brand continuum, Because the value of a brand builds with
the growth of loyal, repeat  customers, successful brands are
managed with building customer loyalty as the ultimate  goal,
On the way, the customers must become aware of a brand,
understand it, and find it relevant to their lifestyle, A successful
brand can distinguish itself from its competitors and deliver an
experience that leaves the consumer satisfied and likely  to look
for the brand again, Sound brand management understands this
continuum (see graphic below), The challenge is to stay on
course and to always strive for—and manage towards—
consumer loyalty,
7, The brand is understood by all employees and acts as the
  central organizing principle, Employees' behavior must
  be aligned with the brand and managed and  rewarded as
  such, Employees are engaged in evolving the brand
  (e.g., Disney),
8, The brand is managed as a long-term asset, The drivers of
  value are measured and managed as strategic assets,
  Decisions are guided by value contribution (e.g., Samsung),
                                                                                                     7 I ENERGY STAR

This section reviews the
ENERGY STAR brand and
program, followed by a
section on  its history,
including a comprehensive
brand  review  conducted
in 2001  and 2002, and
achievements to  date,
With this information as
a foundation,  the final
section reviews some of
the opportunities for the
future  and the challenges
the ENERGY STAR brand
may face in pursuing
these opportunities,

Attributes  and Principles

ENERGY STAR motivates businesses, public organizations, and
individuals to take action to help protect the global environment,
while saving on energy bills and maintaining their quality of life,
ENERGY STAR is designed so that:

.  ENERGY STAR qualified products, homes, buildings, and
  services are more energy efficient than conventional products,
  homes, buildings, and services (between 10 and 90%) and
  therefore help reduce greenhouse gas emissions,

«  ENERGY STAR identifies cost-effective solutions, providing
  payback within several years for any higher initial cost,

.  There are no tradeoffs in performance or quality,

.  ENERGY STAR, as offered by the U.S. Environmental Protec-
  tion Agency (EPA), builds upon the technical resources and
  objectivity of the federal government.

These attributes ensure the brand consistently delivers value to
its target audiences, Behind these attributes are a number of
guiding principles that establish the broad parameters and other
conditions that need to be met for the brand's continued
success, These guiding principles are as follows:

Broadest environmental benefit. The decision about where
and when to offer the ENERGY STAR is always based on a
thorough, objective review of long-term environmental benefits
and a sustainable, positive impact on the environment,

Power of an informed buyer. ENERGY STAR is offered as a
decision-making guide to consumers across all economic sectors
on the basis that consumers will  make different decisions if they
have clear, objective information on why these decisions have
value for them,

Broadly  relevant. ENERGY STAR  is designed to be an easy choice
for consumers in a  number of ways, These include:

.  Easyto understand. ENERGY STAR was established as a
  simple indicator  of energy efficiency, Something either meets
  the criteria for ENERGY STAR or it does not,

.  Cost effective to the end user. The threshold for energy
  efficiency levels that must be met for a product to earn the
  ENERGY STAR are established so that consumers will save
  money within a few years (5 years at the longest), even if the
  initial purchase price is greater than the price for the less ef-
  ficient alternatives,

.  Same, if  not better, performance.  ENERGY STAR is only
  used  if the products meeting the higher efficiency levels
  will deliver the same, if not better, performance as the typical
  alternatives, ENERGY STAR is designed to help show that
  energy efficiency is not about sacrifice or  doing without,
  but rather that with efficient technologies on the market
  today, consumers can cut their energy bills substantially,
   while reducing greenhouse gas emissions, With this design,
   the ENERGY STAR communicates a simple message to
   consumers identifying which  products, homes, buildings,
   and services will help them save money and protect the
   global environment,

Level playing field for program partners and technologies.
ENERGY STAR is designed to establish performance levels
that differentiate highly efficient products from less efficient
products and assist the consumer in purchasing many of the
energy using products needed for the home or office,
ENERGY STAR is not used to give one technology an
advantage over another,

The government is an effective and unbiased source of
authority. ENERGY STAR relies on the objective role of the  federal
government as a source of authority in providing  consumers
with information on products, buildings, homes, and services
that can save energy, save money, and help reduce greenhouse
gas emissions,
                                                                                                        9 I  ENERGY STAR


well  on   key  attributes.

The ENERGY STAR program and brand succeed in meeting key
branding attributes as  described previously in the brand manage-
ment principles and brand continuum sections,  For example:

A successful brand must offer a relevant choice to its target audi-
ence, ENERGY STAR is relevant, allowing everyone the opportu-
nity and ability to make a personal contribution  to protecting our
environment and reducing greenhouse gas emissions,

A successful brand must offer a sufficiently differentiated choice
within the marketplace so that consumers see a different value,
ENERGY STAR is differentiated as a government-backed  program
offering a compelling way to do good through the simple act of
choice, while providing financial benefits to the  consumer,

A successful brand needs to speak to its audience in a compel-
ling and consistent way, Managing all brand  communications so
that they deliver a similar message with a compelling image or
personality is key to developing an understanding of the brand
and its relevance, ENERGY STAR is a seemingly complex subject,
but is presented  with a highly approachable,  straightforward, and
consistent look and feel,
Credibility is the backbone of a successful brand, ENERGY
STAR is fortified by the capabilities and reputation of EPA and
the U.S. Department of Energy (DOE), Today, millions of consum-
ers and businesses choose ENERGY STAR—demonstrating that
ENERGY STAR has earned credibility in the marketplace,

These fundamental elements of the ENERGY STAR brand
combined with effective brand management (discussed later)
provide the essential ingredients for continued success,

become  a success over-
night,  but by growing and
evolving  over  more than
15 years, With  all  brands it
is important to  understand
the beginning, the inspira-
tion,  the core  competencies,
and the  roots of  success
before deliberating future
opportunities, The ENERGY
STAR story  is  one  of  a
meteoric rise  from an idea
to  a  brand recognized
The First 5 Years:
 n the late 1980s, EPA began looking at sources of greenhouse
gas emissions and means to reduce these emissions, One
greenhouse gas, carbon dioxide, is closely inked to the use of
fossi fuels either through the generation of the electricity we use
at home and at work or through the direct use of oil and natural
gas, As EPA looked into the issue, it saw many opportunities to
improve the energy efficiency of businesses and homes in ways
that would not only reduce emissions of greenhouse gases but
save money and encourage economic growth,

The 90s were a decade of unprecedented change and 1991 was
a watershed year, The Gulf War was underway, exposing Ameri-
cans to the delicate balance of power and centuries-old conflicts,
which today redefine our global perspectives, Healthcare and
Social Security reform dominated the headlines, The American
landscape was in a state of flux, in which innovative ideas quickly
took root; this environment was ideal for EPA's introduction of

In 1991, EPA launched the voluntary Green Lights program,
designed to promote more efficient lighting in commercial and
industrial buildings and thereby reduce energy use and help
protect the environment, Green Lights created a unique and
powerful partnership between the federal government and
private industry,
                                                                 11 I ENERGY STAR

In 1992, EPA introduced ENERGY STAR as a voluntary label-
ing program designed to identify and promote energy-efficient
products whose use in the workplace and at home would reduce
greenhouse gas emissions, Computers and monitors were the first
labeled products,
                                         \V /EPA
                                             ^T--  t
                                            S Lights
                                           an ENERGY STAX program
The promise of Green Lights and
ENERGY STAR was simple and rational:
Use energy-efficient products  and technol-
ogies to save money and prevent greenhouse
gas emissions and air pollution, The promise
of Green Lights and ENERGY  STAR was legitimized
by EPA's core competencies:

.  Engineering and technical know-how,

.  An ability to move quickly to overcome market barriers,

.  The credibility of the Agency charged  with safeguarding
   the natural  environment,

•  The objective authority of a  government-backed program,

The value proposition in both Green Lights and  ENERGY STAR at
this time was national recognition from EPA for  advancing energy-
efficient products and practices, along with the  possibility of a
competitive advantage for those that did  it well,

For corporations, the reward for adoption of and loyalty to the
Green Lights program was monetary, while the  resulting carbon
reductions satisfied EPA's requirements for success, Green Lights
took hold immediately and  in a matter of a few years could boast
the participation of more than  1,600 corporations—including
Abbott, Duracell, Eli Lilly, Hasbro Inc., Honeywell, Maytag, Pacific
Gas and Electric, S.C, Johnson, Toyota, and Walt Disney—com-
mitted to the intent and the value of the Green Lights program,
Testimonials and joint advertisements abounded, in which
corporations boldly revealed the program's benefits in ways that
were very compelling to their shareholders, employees, and the

.  "Boeing and Green Lights created an  annual  savings
   of $1,006,592,"

.  "Bell Atlantic and Green  Lights created an annual savings
   of $642,920,"

.  "Hewlett Packard and Green Lights created an annual savings
   of $1,125,737,"

In the early years of ENERGY STAR, EPA focused on develop-
ing the technical specifications for products, engaging  partners,
exploring retail distribution channels, and planting the seeds
for later program success and  growth, EPA worked  closely with
manufacturers to steadily increase the number of product models
earning the ENERGY STAR label, Through 1995, EPA expanded
the number of qualifying products to 10, including additional
office equipment products and residential heating and cooling
equipment, At the same time, EPA and interested stakeholders
were researching whole-building efficiency technologies for the
commercial sector and launching the first energy efficiency speci-
fication for the new homes sector,

From a branding perspective, during the early years the ENERGY
STAR "Pollution Preventer" mark helped raise industry awareness
and understanding of energy efficiency and its ink to environmen-
tal protection, The mark achieved its success through:

.  Technical acumen,

•   Industry influence,

•   Corporate participation,

Several outreach materials used at this time are shown on
pages 22 and 23,

It is also worth noting that in 1992—the same year EPA launched
ENERGY STAR—the World Wide Web burst into our culture,
going on to reshape commerce, language, community, technology,
entertainment, and politics,
                                                             Steady  Growth:
                                                             In 1996, EPA and DOE signed an agreement authorizing DOE
                                                             to use the ENERGY STAR mark on certain products, DOE would
                                                             manage the ENERGY STAR on kitchen appliances, water heaters,
                                                             and windows, EPA would continue managing the ENERGY STAR
                                                             on office equipment, consumer electronics, and heating and
                                                             cooling products, EPA would  also continue managing the
                                                             ENERGY STAR program  in the areas of new home construction
                                                             and commercial and industrial buildings,

                                                             At this stage, the semicircular earth  mark was  adapted so that the
                                                             initials EPA and DOE appeared in each corner, and the tagline
                                                             "Saving the Earth, Saving Your Money," appeared below the mark
                                                             to convey the value of ENERGY STAR to its target audiences, The
                                                             same tagline was used below the marks for buildings and homes
                                                             (see overview of ENERGY STAR marks on pages 18 through 21),
                                                             In 1997, EPA started a broad  outreach campaign to encourage
                                                             consumers to look for the ENERGY STAR label, The outreach
                                                             messages  were designed to appeal to the power of an informed
                                                             consumer  by providing objective information next to the govern-

merit-backed label, The first consumer campaign had three
key messages:

ENERGY STAR saves you  money and protects the environment.
Use of qualified products in your home can mean up to
30% savings,

The 2nd price tag: Products have two price tags: the
buying price and the cost of electricity to use the product
over its lifetime,

An easy choice: Either the product is energy efficient because
it displays the ENERGY STAR mark or  it isn't (has no mark),

 n 1998, the ENERGY STAR Buildings and Green Lights
Program commissioned a study to unify its program materials
as part of  phasing the  Green Lights program out as a distinct
program and becoming instead the first step toward qualifying
an entire building as ENERGY STAR, And, in 1999, EPA com-
missioned a small-scale study to  examine the opportunities for
a more unified  approach  across the  entire ENERGY STAR
program, This effort included  a review  of the use of the
ENERGY STAR marks and was carried out by Cohn & Wolfe,

The findings of the 1999  Cohn & Wolfe study stated that
while the fundamental  semicircular earth shape, "energy" in
script,  and star graphic remained consistent across program
materials, slight variations could  be confusing to the public,
This research provided the  recommendation  that EPA use one
fundamental mark (the semicircular  earth or line representing
the top half of the earth)  with a limited number of strategic
variations as necessary based on important differences in the
function of the mark, The necessary variations were:

. The  certification mark  (for qualifying products, homes, and
   buildings), which would  have no tagline and  would be used
  to certify those products, homes,  and buildings meeting  the
  technical requirements for the ENERGY STAR,

• The  promotional mark, which included the tagline "Money
   Isn't All You're Saving" for use in outreach materials,
. Three additional marks—Partner, Ask About, and We Sell
   marks—which were made round so that they would remain
   distinct from the certification mark and promotional marks,

This new set of unified marks was released to program part-
ners in the last quarter of 2000, along with usage guidelines,

The 1999 Cohn  & Wolfe report also  noted, "the best brands
have both  a rational and emotional appeal. The  rational,
intellectual aspect of ENERGY STAR has been central to all
three programs to date. Going forward, the emotional appeal
will help build relevance, a weak aspect of ENERGY STAR
today [1999]."

In summary,  from 1996 to 2000, EPA's initiatives for efficient
products, homes, and buildings expanded on all fronts and a
number of graphical uses of the ENERGY STAR mark were
developed for different markets, The number and variety of
partners increased—utilities, contractors, manufacturers,
educational institutions, government agencies, and others
were joining  the ENERGY STAR program to more easily
promote energy efficiency, Web activity and promotions by
partners expanded, International  agreements were signed as
well during this time frame, A summary of some of the key
indicators  for the ENERGY STAR program as of 2000 is
provided on the following page, By the end of 2000, the pro-
gram was  producing tremendous results—helping Americans
save about $5 billion a year while avoiding greenhouse gas
emissions  equivalent to those of 10 million vehicles,
                Honey \an'i All YOU'T: Saving
                                                                                                       13 I  ENERGY STAR

 ENERGY STAR Key Program Indicators for 2000

Qualified Products
New Homes
Commercial Buildings
Products Sold**
Product Categories
Product Models
Public Awareness
Retailers (Partners)
New Homes Built**
Homebuilders (Partners)
Buildings Benchmarked**
Buildings Labeled**
Building Types Eligible for Label
Energy Saved (kWh)
Avoided Emissions (MMTCE)
Dollars Saved (billions)
600 million
1 1 ,000
62 billion
'Results are cumulative,

Explosive  Second
Decade: 2001-2006
Third   Party  Evaluation:
In the program's second decade, EPA continued to build the value
of ENERGY STAR and engage more partners such as retailers,
utilities, states, and schools, Toward the end of 2001, the
government's flagship energy efficiency program had evolved
to the extent that the influence of ENERGY STAR had become a
solid force in both the world of consumers, including new home
buyers, and the business community,

In 2001, EPA launched the Change campaign, an integrated
multi-media (radio, TV, print) public service announcement
outreach effort, which was the most aspirational campaign
undertaken to that time, Through inspiring photography, music,
and messaging, EPA reached out to the public to encourage
everyone to help protect the environment while  at home and at
work, This was a first step in moving toward a more emotional
appeal to the public,

 n late 2001, marking the 10th anniversary of its voluntary climate
protection program(s), EPA decided it was time to step back and
carry out a comprehensive assessment of the ENERGY STAR
brand, find opportunities to improve the brand,  and develop a
comprehensive brand strategy for the future,  ENERGY STAR had
grown immensely without some of the constraints associated with
traditional brand management principles, But the growth and
success now merited a full review,
Proactive brand management requires an ongoing study of brand
performance and  marketplace dynamics, Interbrand worked with
EPA in 2001-2002 to conduct an extensive examination of the
program to assess strengths and weaknesses and to define a
future course,

During the 2001-2002 audit (see Appendix D), all parties
acknowledged the context within which EPA and the ENERGY
STAR program operate, Compared to the private sector, EPA has
very limited resources for market research and promotion of pro-
grams (no matter how worthwhile), There is low political tolerance
for seeing taxpayer dollars spent on paid advertising, Therefore,
government programs depend on others to do much of the
education and outreach, a situation that can  lead to inconsistency
in messaging and branding, An acknowledged advantage for
EPA, however, is its high credibility with the public because of its
charge to  protect human health  and the natural environment,
and studies show (see Appendix C) that Americans do care about
the environment,

90% strongly agree or agree with  the statement, "I am very con-
cerned about the  environment,"

94% strongly agree that "Saving energy helps the environment,"

78% of consumers believe that a product that is better for the
environment is a somewhat to a very  important consideration
when purchasing  an appliance or an  energy  using product,
                                                                                              15 I ENERGY STAR

For the audit, the outside objective counsel, Interbrand, col-
lected and reviewed materials generated by the program and
by program partners and interviewed a diverse set of program
partners to assess the value of ENERGY STAR and their satisfac-
tion with EPA as a partner, Interbrand synthesized the evidence
and revealed a brand with much greater potential than was being
leveraged, Specifically, Interbrand provided a number of findings
and recommendations for enhancing the value of the ENERGY
STAR brand, Key findings and recommendations included:

•  There was a lack  of consistency in the brand identity in terms
  of how it was used by the government and its partners; there
  was enormous opportunity for improvement at the tactical level,

.  The ENERGY STAR mark was not working as hard as it could,
  Due to the rapid  program growth across different sectors and
  the number of partners using ENERGY STAR in their own ef-
  forts, there were variations in the mark that  could be causing
  confusion and  inconsistent reference to the government source
  of authority, Interbrand recommended reexamining the mark

•  The brand positioning used by ENERGY STAR was a very
  rational one, lacking in strong emotional appeal,

•  There were few metrics of brand performance and few stan-
  dards of brand behavior or tools for brand consistency,
 Evolution  of  the  Brand
In response to Interbrand's findings and recommendations, EPA
took the following steps:

1, Redesigned the ENERGY STAR mark, including the addition of
  the words "ENERGY STAR," The revised mark was announced
  to program partners in late 2002,

2 Developed a consistent personality for communications,

3. Increased the emotional content/appeal with the rational equity
  of the brand—speaking to the head and the heart,

4 Established a consistent co-branding platform for partners to
  use to better leverage the government voice of authority,

5, Developed brand standards and brand guidelines for partners,
  These brand guidelines were distributed to all program part-
  ners and stakeholders  in 2003,

6, Established new guidelines for  messaging, including emphasis
  on the government voice of authority, A new Web site model-
  ing the guidelines debuted in early 2003,

7, Developed new metrics for brand performance that were
  integrated into the ENERGY STAR management plan  and
  assessed annually,

While each of these activities were important to the continued
growth and success of ENERGY STAR, they signaled an even
more important and fundamental shift within EPA in terms
of understanding what was required to raise the value and
impact of the brand, From an internal  perspective, the shift
was evolutionary:
   Shift in Understanding of the ENERGY STAR Brand
Focus on
the rational

Marketing organization
voice of authority

emotional focus

And, it required an evolution of the brand idea, While the mission
to protect the environment by reducing greenhouse gas emissions
into the atmosphere remained, the role of the brand  evolved, The
brand moved from a rational consideration (save energy, save
money) to a more aspirational  and emotive stance: ENERGY STAR
is about "Influencing Change,"

Brands that achieve dominance are brands that affect behavior, In
the case of ENERGY STAR, greater success could be achieved if
the partners and owners of the brand embraced a new sense of
definition that would modify their approach and association with
the brand, The foundation of the brand positioning lies in a belief
that everyone has a responsibility for the well being of the earth,
and environmental improvement is well within everyone's grasp,

The reality is there are 300 million potential advocates who can
have a positive impact on the condition of our atmosphere—
if individuals simply change perspective and behaviors, This
mentality leverages the technology, the loyalty, and the
credibility of the brand while elevating the purpose beyond
rational consideration, Taking the brand in this direction was
supported,  and  is still supported, by a wealth of marketing
research information (see Appendices A and C), More evocative
and aspirational  positioning was needed for how the brand
would  be seen and understood, The new brand idea  needed a
refreshed identity, new associations, and new messaging to
deliver on the evolved brand definition,
                                                                                                         17 I  ENERGY STAR

Overview of ENERGY STAR Certification and Program Marks  '91   -  '95

EPA announces
Green Lights
EPA announces
labeled product —
EPA begins
commercial whole-
building work with
Showcase Buildings
EPA offers
10 product categor-
ies and announces
label for new homes
First international
agreement —
with Japan
 and Related
                ... Green
              S Lights
             an ENERGY STAR program
                                                                 Swire THE EARTH. Swne*UR M»EK

Overview of ENERGY STAR Certification  and Program Marks '96 -- '99
 Year       1995-1996          1996
 Milestone     EPA begins transition    EPA and DOE
             away from Green Lights   agree that DOE
             and to more whole-      will use ENERGY
             building efforts, During   STAR label for
             the transition, Green     certain product
             Lights  is linked to       categories
             ENERGY STAR
                                   EPA launches the
                                   first broad consumer
                                   outreach print
                                   campaign, using
                                   computers and other
                                   products in outdoor
                                                 EPA launches
                                                 ENERGY STAR for
                                                 small businesses
EPA discussions with
European Union (EU)
start and require
mark (removing EPA
and DOE)
 and Related
 / EPA
                                               SWING THE EH™ SwrettuR MOTCS
               an ENERGY STAR program
                                                                   SMALL BUSINESS
                                                                                      19 I  ENERGY STAR

Overview of ENERGY STAR Certification  and  Program  Marks  '98 -- '01

EPA launches
the innovative
building perform-
ance rating system,
under which the top
25% of buildings
earn the ENERGY
STAR  label
Federal purchasing
guidelines and Federal
Executive Order 13123,
"Greening the Govern-
ment through Efficient
Energy Management
(for buildings)" signed
by President Clinton
EPA reduces the
number of ENERGY
STAR marks

Green Lights fully
transitioned to
US/EU Agreement
is finalized
EPA launches an
integrated multi-media
outreach campaign,
 and Related
                                Money Isn't All You're Saving

Overview of ENERGY STAR Certification  and Program  Marks  '02 - '07
2005-2006   2006
STAR mark
designed and
rolled out
to program
offered for new
service that meets
key protocols as
part of pilots with
energy efficiency
program sponsors
offered for new
building design
and ability to
STAR for top
Extension of US/
EU Agreement on
(final step in the
phase in of the
revised ENERGY
STAR mark)
New promotional
mark under
and launched
in early 2007
 and Related
                                                TO EARN THE
                                                                             LEARN MORE AT
                                                                                      21  I ENERGYSTAR

Selected ENERGY STAR Public Service
Announcements, 1992-1999

              THIS YEAR,
          SAVED $1,686,354
            BY INSTALLING
          his Jusr THAT
             EPA'S Green Lights Program
!•! Green
^1 ignts

     Get In The Fast Lane To
      Prevent Pollution And
             Save Money
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                                                     -*— *
                                                                                     23 I ENERGY STAR

The  Redesigned  Mark

A redesigned mark was at the center of EPA's work to evolve the
ENERGY STAR brand, The redesign offered the following features:

•  Can be read as ENERGY STAR to assist consumers in
  connecting the information they read with the mark itself,

•  Box is stronger and more authoritative,

•  Cyan is a positive, strong color that supports an environmental

•  One color makes it easy for partners to  use in their materials
  and also more recognizable,

.  Mark not recessive, works better when small in otherwise busy
  retail ads,

.  Arc and the script "energy" with the star were retained from
  the original logo,

.  The changes were relatively easy to make,

While the government sponsorship and source of authority is
not part of the new mark itself, it is an important part of the
associated messaging,

New Messaging Guidelines.
Guidelines were updated and new messaging points were
developed, The messages built upon earlier efforts, but placed
greater emphasis on the environment, the individual, and the
government source of authority, The key messages are:

.   Each organization and individual can make a difference for
   the environment,

.   The environmental choice provides energy savings, as well
   as the  performance, quality, style, and comfort today's
   consumers expect,

•  These overarching messages are supplemented with sector-
   specific messaging within the commercial  and industrial
   marketplace, the new homes construction  marketplace, and
   home improvement marketplace, This audience-specific
   messaging builds on the broader program messages and
   tends to offer the more rational reasons for why energy
   efficiency  is an attractive solution, Some of these messages
   are shown in the table on the following page,
New Brand Representation Guidelines.
There are also guidelines for visual representation to
reinforce the relevance of ENERGY STAR to companies
and individuals and its brand positioning:

.  Active

•  Participation of individuals and/or families in
   everyday situations

.  Positive

•  Simple

•  Suggestion of sky and air

The full messaging and brand representation guidelines were
distributed to program partners and stakeholders in 2003 (see
Appendix A),
                                                                                                        25 I  ENERGY STAR

  Overview  of Audience-Specific  Messaging
Messaging  Examples
                            Products for
                            the Home
              ' Stay comfortable all summer long with an ENERGY STAR qualified ceiling fan,

              ' Energy-efficient light bulbs and fixtures that earn the ENERGY STAR offer the latest in
                style and convenience plus the quality consumers expect, These products offer warm,
                bright light with the added benefits of using at least two-thirds less energy than
                traditional models and lasting up to 10 times longer,
                            New Homes
              • Build a home with a view of the future, See one of these ENERGY STAR builder
                partners to learn more,

              ' These builders are using new ENERGY STAR guidelines to bring you a whole new
                level of comfort, efficiency, and performance,

              ' Only the most dedicated Oregon builders meet new ENERGY STAR requirements
                and offer you greater efficiency, comfort, and performance,

              ' These builders are using new ENERGY STAR guidelines to revolutionize
                home building in Las Vegas,

              ' Find out how new ENERGY STAR requirements make the best builders  in
                Indianapolis  even better,
               ' Commercial Real Estate. Energy represents 30% of the typical office building's costs
                and is a property's single largest operating expense, Reducing energy use by 30% is
                equivalent to increasing net operating income and  building asset value by 5%,

               ' Healthcare. Healthcare organizations spend over $6,5 billion on  energy each year to
                meet  patient needs, Every dollar a nonprofit healthcare organization saves on energy is
                equivalent to generating  new revenues of $20 for hospitals or $10 for medical  offices,
                Just a 5% reduction in energy costs in for-profit hospitals, medical offices, and
                nursing homes can boost earnings a penny per share,

               ' K-12 Schools. Partnering with ENERGY STAR is a commitment to your students as well
                as to  the  environment, The annual energy bill to run America's primary and secondary
                schools is a staggering $6 billion—more than is spent on textbooks and computers
                combined, The least efficient schools use three times more energy than the best energy
                performers, and top performing ENERGY STAR labeled schools cost 40 cents per
                square foot less to operate than the average  performers,

               ' Corporate Real Estate. The most energy-efficient businesses in America use about 30%
                less energy than their competitors, Finding smart ways to manage the energy you need
                to run your business can improve your profit  margins, increase funds available
                for development of new products and services, and enhance overall corporate value,
                Partnering with ENERGY STAR is a commitment to the financial  value of your real estate
                portfolio as well as the environment,

The   Evolved   Brand  at Work
The new mark and the guidelines have now been used by the
government and its partners for several years with significant suc-
cess,  Partners across many sectors of the economy are delivering
consistent, change-oriented messaging tailored to their customers
through ENERGY STAR, Examples include:
 EPA's 2004 Public Service Campaign.
 EPA launched a new public service announcement (PSA)
 campaign in May 2004 encouraging the public to look for the
 ENERGY STAR to  help prevent the air emissions created when
 electricity is generated for home use, The campaign used  humor
 to make the point  that the energy used in a home may cause
 twice the greenhouse gas emissions  of a vehicle, The TV PSA
 showed the value and ease of looking for the ENERGY STAR
 to find  qualified products and get home improvement tips to
 reduce the amount of energy needed for a home, The comprehen-
 sive campaign, which included TV, radio, and print PSAs
 in English and Spanish, encouraged consumers to visit to discover five steps to protect the environ-
 ment right from home. If every household followed just one of
 these steps—replacing their five most frequently used lights with
 ENERGY STAR qualified ones—that would prevent more than
 one trillion pounds of greenhouse gas emissions. The campaign
 ended  in 2006,
                        U.S. Environmental Protection Agency
                        ENERGY STAR® PSAs
                        Mark and Suzanne, English :6Q/:15
                        Mark and Suzanne/Helium, English :30
                        Mark and Suzanne, Spanish :30
                        Mark and Suzanne, English :60/:15
The U.S. EPA's new ENERGY STAR® PSAs humorously show how we can
all help improve the environment, right from home. Because "the average
house can cause twice the greenhouse gases of a car," Suzanne does
her part to prevent air pollution by simply looking for the ENERGY STAR,
the government-backed symbol for energy efficiency. Meanwhile, her
husband, Mark, earnestly but comically explores other options.
                        Mark and Suzanne/Helium, English :30
                        Mark and Suzanne, Spanish :30
                        and the U.S. Department of Energ1
                          CHANGE FORTHE
                          BETTER WITH
                          ENERGY STAR
                                                                                                          27 I  ENERGY STAR

ENERGY STAR Change a Light, Change the World Campaign.
Each year, EPA issues a national call to action, enouraging
individuals to help change the world, one light—one energy-
saving step—at a time, In 2006, the seventh year of the campaign,
nearly 800 participating organizations and more than 500,000
individuals pledged to replace more than 1 million bulbs with an
ENERGY STAR qualified one, These pledges represent potential
savings of more than 280 million kWh of energy, $28 million in
                                                   energy costs, and the prevention of more than 400 million pounds
                                                   of greenhouse gas emissions, In 2006, EPA effectively used the
                                                   ENERGY STAR partnerships to expand the campaign by introduc-
                                                   ing the concept of pledge drivers—allowing organizations to set
                                                   pledge goals, effectively engage their communities in the cam-
                                                   paign, and track success,
Change a Light
                                          l»i—«Ji I  r*
a                 :.»«-,,
                                                                        STAR- PRODUCTS
                                                                  MAKE A DIFFERENCE
                                                                TODAY  AND TOMORROW
    .'Jill l» «-"!•>• I
    •.aw* * *

                       CHANGE A LIGHT.
                       CHANGE THE WORLD WITH ENERGY STAR*


The ENERGY STAR Buildings Challenge, Build a Better World
10% at a Time. In 2005, EPA announced a new national  ENERGY
STAR campaign in coordination with key professional associa-
tions and states, The ENERGY STAR Challenge is a call  to action
for building owners and operators to implement energy efficiency
measures and reduce energy use by 10% or more, EPA estimates
that if each building owner met this challenge, by 2015  Americans
would reduce greenhouse gas emissions by more than 20  MMTCE—
equivalent to the emissions from 15 million vehicles—while saving
about $10 billion, By year end, more than half of the states and
the  District of Columbia—along with more than 20 major as-
sociations whose members manage many of the nation's office
buildings, schools, hospitals, and other commercial facilities—
were participating in the Challenge, These associations  and  states
are  encouraging their members to benchmark the energy use of
their buildings, set an energy savings target of 10% or more, and
make the investments necessary to achieve this goal, n  addition,
many of them are collaborating with EPA to train their members
on how to achieve their goals,
New Homebuilders and Home Performance with ENERGY STAR.
In the last several years, partners in the building industry have
contributed to co-branded outreach, Examples of consumer
placements are shown below and on the following page,
          ENEflGY SAVINGS. CDMFQflT.j
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       affects their
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                                                                                                     29 I  ENERGY STAR

Placements  for  New  Homes and Home Performance

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                 To find pirticipnting homo titiildcrs near yau, »is
 Heightened  Brand


The ENERGY STAR identity is a valuable asset, and  ike any asset
with appreciable value, it must be properly used and protected,
Over this period, EPA has put the brand management tools and
standards in place to manage the ENERGY STAR brand for con-
tinued success, These tools and standards ensure:

1, The ENERGY STAR name and marks are applied
  properly and consistently in the marketplace,

2, ENERGY STAR delivers  on its  promise to designate products
  and services that protect the environment through superior
  energy efficiency, without tradeoffs in performance or quality,
  and with attractive financial paybacks on any additional initial
  purchase costs,

3, Consistent messaging is used to communicate clearly to target
  audiences about ENERGY STAR qualifying products, homes,
  buildings, and services,

4, The integrity of the brand is maintained overall,
Specifically, EPA has been tracking the use of the ENERGY
STAR name and logo in the marketplace (and working to stop
any violations) since the program began in 1992, and the name
and trademark were formally registered with the U.S. Patent and
Trademark Office.

Beyond this tracking, EPA undertakes a suite of brand manage-
ment and tracking practices to protect the integrity of the
program and ensure that consumers and partners can trust
the ENERGY STAR identity, These activities include:

.   Entering  into Partnership Agreements with product
   manufacturers,  retailers, energy efficiency program
   administrators,  builders and others, specifically outlining
   the terms and conditions for use of the ENERGY STAR name
   and marks,

.   Issuing ENERGY STAR identity guidelines to partners and oth-
   ers to ensure proper use of the logo,

.   Monitoring the  use of the name and marks in the following
   media: trade media, advertisements, the Internet, and stores,

•   Responding when consumers, competitors, partners, and oth-
   ers bring possible trademark infringements to the
   attention of EPA or DOE,

•   Testing the energy performance of select products,
                                                                                                 31  I ENERGY STAR

.  Requiring product manufacturers to report qualification test
   results, which are reviewed and approved  or disapproved,

•  Assessing consumer experience with and  perceptions of
   ENERGY STAR when purchasing or shopping for qualifying
   products and services,

•  Updating performance  specifications as needed (e.g.,
   when high levels for market penetration are reached,
   underlying reference standards are revised) to ensure
   that the ENERGY STAR designation delivers value in
   the marketplace.

Today the  program has active licensing or partnership agreements
with more than 1,700 manufacturers, 900 retailers, 2,500 home-
builders, 500 utility, state,  and other energy efficiency program
administrators, 100 energy service providers  and financial lenders,
and 7 international governments or unions. The ENERGY STAR
label is on more than 40,000 products across more than 50
product categories, as well as on new homes, buildings, and
industrial facilities.
The activities undertaken to protect the integrity of the ENERGY
STAR brand are detailed in the Maintaining the Value of ENERGY
STAR Report (see Appendix B).

The ENERGY STAR brand is a significant asset that has been
developed for more than 15 years through  the investment of
taxpayer and private sector dollars, It continues to be uncompli-
cated and reliable, The marketplace  has grown confident that the
stature and authenticity of the brand is established  and legitimate,
Nevertheless, much more can be accomplished,

Success of  ENERGY STAR
in  2006
The brand building initiatives undertaken between 2001 and 2005
contributed to the phenomenal growth in the ENERGY STAR
program with many of the key program indicators tripling over this
time frame, as shown below, As of the end of 2006, more than
9,000 organizations were engaged in the ENERGY STAR program,
helping Americans save more than $14 billion on energy bills
while avoiding the greenhouse gas emissions equivalent to those
from 25 million vehicles, Other achievements include:

. Americans have purchased more than 2 billion ENERGY STAR
  qualified products through  2006 across more than 50 product
  categories, including appliances, heating and cooling equip-
  ment, consumer electronics, office equipment, and lighting,
  These products are providing consumer savings of as much as
  90% relative to standard models,

. More than 725,000 new homes have been constructed to meet
  ENERGY STAR guidelines, with the market penetration exceed-
  ing 20% of new home starts in more than 10 states and 20
  metropolitan areas,
A growing number of buildings have been rated for energy
efficiency, an important first step in targeting energy efficiency
improvements, More than 30,000 buildings have been assessed
using EPA's energy performance rating system, These buildings
represent more than 5 billion square feet and include 42%
of hospital space, 30% of supermarket space, 25% of office
building space, 18% of school space, and 17% of hotel space
across the country,

More than 3,200 buildings, representing almost 575 million
square feet, have earned the ENERGY STAR label for
superior energy and environmental performance based on
EPA's building rating system, On average, these buildings use
about 35% less energy than typical buildings, and about 400 of
them use 50% less energy than typical,

EPA is working with a record 10 manufacturing sectors
in the industrial sector to provide focused energy guidance,
energy performance indicators, and networking opportunities
and has expanded the ENERGY STAR label to manufacturing
plants that achieve top energy performance, Twenty automobile
assembly, cement, and wet corn milling plants met the newly
established energy performance criteria in 2006 and displayed
the ENERGY STAR mark at their facilities,
  ENERGY STAR Key Program  Indicators for  2000 and  2006

Qualified Products
New Homes
Commercial Buildings
Industrial Improvements
Products Sold**
Product Categories
Product Models
Public Awareness
Retailers (Partners)
New Homes Built**
Homebuilders (Partners)
Buildings Benchmarked**
Buildings Labeled**
Building Types Eligible for Label
Industry Focuses
Energy Saved (kWh)
Avoided Emissions (MMTCE)
Dollars Saved (billions)
600 million
62 billion
>2 billion
170 billion
 * Estimated as of Spring 2007
 ** Results are cumulative
                                                                                             33 I  ENERGY STAR

In addition, many program partners are continuing to increase
their use of the ENERGY STAR mark and messaging, and con-
sumers are receiving ENERGY STAR information through many
channels, such as the media and partner advertising, at a rapidly
growing rate, For example:

Mentions of ENERGY STAR in local, regional, and national press
now have an average circulation of 100 million  per month—more
than double the circulation of media coverage from four years
earlier (see chart below),

Usage driven by large partners such as Lowe's, Home Depot,
Sears, Best Buy, Maytag, Rex, and Window World has grown to
about 16,500 advertisements per month—nearly four times the
number of advertisements in 2001,

Further, the  ENERGY STAR program and brand are perform-
ing  well against a number of brand performance metrics, The
most recent National Awareness of ENERGY STAR® report (see
Appendix C) shows that ENERGY STAR continues to reach new
levels across the performance metrics in 2006 (see charts on
page 35),
AWARENESS: 68% of households recognized the label,

UNDERSTANDING: 73% had a high or general understanding of
the label's purpose,

RELEVANCE: 55% agree "buying ENERGY STAR labeled
products makes me feel like  am helping to protect the environ-
ment for future generations,"

SATISFACTION: Households that recognized and purchased
ENERGY STAR products rated them 4,3 (out of 5; 5 = very

LOYALTY: 71% of knowing purchasers would  likely recommend
ENERGY STAR to a friend; 29% of these  households reported
they were "extremely" likely to recommend ENERGY STAR labeled

And EPA has brand management tools and standards in place
to manage the ENERGY STAR brand for continued success, This
includes tools and standards to ensure that (1) consistent
messaging is used to communicate clearly to target audiences
about ENERGY STAR qualifying products, homes, buildings, and
services and (2) the integrity of the brand is maintained so that its
value grows over time,
    ENERGY STAR in the Media (September 2001 -February 2007)

  Article Volume
                                                                                                           150 million
                                              120 million
                                                                                                           60 million

ENERGY STAR Success Through  2006
Total Awareness of ENERGY STAR
Regional Awareness of ENERGY STAR
       2000   2001   2002   2003   2004  2005  2006
 • Unaided Awareness  • Aided Awareness

 * Annual result is statistically different from the result of the prior year.
      2000  2001   2002   2003   2004   2005   2006

 I Aided Awareness (US Households)      Aided Awareness (High Publicity Areas)
 Understanding of ENERGY STAR Label
Knowingly Purchased an ENERGY STAR Prodi
       2000   2001   2002  2003  2004  2005   2006
• General and High Understanding

* Annual result is statistically different from the result of the prior year.

" Adjustments were made to make 2006 results comparable to earlier survey results,
due to a change in survey method.
                                                                                         35 I ENERGY STAR

Everyone wants to  ride  a
winner and one can  predict
that initiatives to exploit
and dilute the  brand lurk
in the  shadows, Tempta-
tion to broaden  the brand
and extend its influence
is understandable,  given
the achievements to  date,
Such  expansion needs a
measure of caution and
restraint; no brand has
boundless  opportunities,
Challenges for the
The landscape is replete with the bones of failed brand extensions:
Virgin Coke, Bic Perfume, Levi's tailored suits, Bayer "Aspirin-
free," New Coke, AT&T phones, McDonald's Arch Deluxe
(for adults),

ENERGY STAR clearly has permission to expand its boundaries,
but new developments must be disciplined by the heritage and
credibility of its current reputation, ENERGY STAR benefits from
the simplicity of its promise and the reliability of its core
competencies: proven technology and services that save energy
and money, Any departure from this proposition will invite
confusion and challenge the credibi ity of the brand, Therefore,
any movement or expansion from the essence of the brand must
be carefully examined to ensure that short-term gain is not
compromised by long-term alienation  from loyal constituents,

Following are the brand tenets that cannot be compromised:

. Technology must be proven, impeccable, and predictable,

•  Benefits must be reasonably immediate and measurable,

•  Outcomes must contribute to carbon reduction,

•  Opportunities must be easy to access and simple
  to manage,

•  Actions must motivate change and reward advocates
  of environmentalism,

«  Brand protection must be a shared responsibility of owners
  and users,

.  Effectiveness is the result of consistency in meaning
  and implementation,

With EPA's limited resources, it is important to focus first on
managing the ENERGY STAR brand—a job it is currently doing
well, But EPA, like all brand owners, must never assume that the
current status of the brand gives permission to shift priorities,
The reality for all brands is that they rarely tap their potential, Too
often, the brand owner becomes complacent and wanders off to
capture new frontiers-almost always at the expense of the core
brand, Always secure a solid and defensible foundation, With that
guaranteed, it is then possible to consider expansion opportuni-
ties, provided they are consistent with the current brand  promise
and using resources cost effectively,

Imperatives moving  forward:

«  Need  for consistency to increase communications

•  Need  to protect the brand definition,

•  Need  to remain customer focused and responsive,

•  Need  to remember that tangible results are critical,

•  Need  to treat partners in fair and open manner,

•  Need  to innovate to maintain momentum,
Continued  Strong   Brand
Management Over  the
Next  10  Years
Many of these imperatives are addressed through strong brand
management, ENERGY STAR will continue to grow in value and
results as EPA continues to manage the brand carefully in the
following areas:

•  Protecting the integrity of the brand by routinely monitoring
  the marketplace, carrying out product and home testing as
  warranted, keeping the specifications up to date, and
  providing for enhanced quality control where necessary,

•  Expanding to new energy efficiency opportunities that are
  consistent with the brand promise and expanding the value to
  consumers through homebuilding services with Home Perfor-
  mance with ENERGY STAR or simpler home
  improvement advice and  information,

.  Enhancing touch  points and relevance for consumers by
  providing clear information on the emotional reasons for
  energy efficiency,

.  Reinforcing the government source of authority,
                                                                                              37  I ENERGY STAR

Opportunities  for
The brand building and management activities of the
past 15 years have not gone unnoticed, as the success
measures listed previously demonstrate, As an "ingredient"
brand, ENERGY STAR has a tremendous  level of goodwill
and positive associations  attached to it, This accomplishment
can be leveraged, The growth into services and advising is a
logical extension of the brand, but warrants careful assess-
ment, The credibility for the brand has  come from its longevity
and performance, This credibility translates into an enhanced
reputation where trust and integrity become the hallmarks
of the brand, Trust is earned and ENERGY STAR has the
stature and the substance to expand into a less empirical
authority and into a more advisory/consultative influence,
This is a seemingly logical evolution, but it must be a mea-
sured and cautious expansion of authority and influence,
Advice is only as good as the ability of the recipient to follow
the guidance provided,

ENERGY STAR is entering the realm of subjectivity and a
heightened discipline to protect the integrity of the brand is
of utmost importance, Similarly as ENERGY STAR expands to
energy efficiency services, it is important  to pursue mecha-
nisms that provide robust quality control  and assurance and
ensure customers of high quality, energy saving experiences,
Questions that may need to be answered in the coming
months and years might include, but are not restricted to,
the following:

•  Can the brand expand to emerging technologies, such as
  wind, water, and agrifuels?

•  Can the brand be more  international?

•  Can the brand be a source of advice and knowledge, as
  well as technology?

•  Can the brand be consultative?

•  Can the brand sponsor broad media outlets
  (ENERGY STAR tips on the 6 p.m. news)?

•  Can the brand certify greenhouse gas reductions?

An additional caution is warranted as ENERGY STAR may enter
new areas of influence, While ENERGY STAR has been the
invention of EPA, it is the product of others, Many partners have
assumed the responsibility of deploying the brand as they qualify
and as they see fit, When  EPA moves into new areas, such as
advice and consultative services, the ENERGY STAR
owner has less control, The effort to substantiate and to codify
advice will be a shared burden and the resources to manage
a more complex brand must be weighed carefully, This  can be
managed, but it must be clear that new skills, guidelines, and
resources will be required to protect the integrity and credibility
of the brand going forward,  Similarly, as expanded international
opportunities are explored or emerging technologies are con-
templated, great attention must be given to the core tenets of
the brand and the ability to ensure that the expectations of the
customer are consistently  met,
                                                                                                        39 I  ENERGY STAR

Ensuring Success

The future is bold and bright, The ENERGY STAR brand
sits in a very enviable and very poignant phase of
maturity, ENERGY STAR has traveled  in a progression
of planned growth, careful to consider each step with
deliberate and thoughtful examination,

The brand has not lapsed into complacency nor has
it been diluted into hyperbole, Fortunately, the driving
forces of environmentalism and citizenry shape the

Therefore, the  brand principles now ingrained in the
organization and its partners, and brand disciplines that
are broadcast  internally and externally will pay welcome
dividends as everyone can now participate in making
this place we call home better for future generations,

Appendix A
Appendix B
Appendix C
Appendix D
EPA Office of Air and Radiation, Climate Protection Partnership Division. Using the ENERGY STAR Identity to
Maintain and Build Value. U.S. EPA, 2003.

EPA Office of Air and Radiation, Climate Protection Partnership Division. Maintaining the Value of ENERGY
STAR Report. U.S. EPA, 2007.

Poll Statistics Relating to ENERGY STAR and Attitudes towards Environmental and Energy Issues:
Schulman, Ronca, and Bucavalas, Inc., (SRBI), and Research into Action, Inc. 2006 Energy Conservation,
Efficiency and Demand Response. Report not yet published.
EPA Office of Air and Radiation, Climate Protection Partnerships Division. National Awareness of
ENERGY STAR® for 2006: Analysis of 2006 CEE Household Survey. U.S. EPA, 2007.

Summary of the scope of ENERGY STAR related materials Interbrand reviewed in 2001
and partners interviewed.