2012 leading edge greener products webinar

2012 Leading Edge Greener Products Webinar
March 21, 2012

Sponsored By

With Support From

http://iannuzzigp.wordpress.com/
22.03.2012 1

Introductions

Al Iannuzzi
Senior Director, Product
Stewardship and Green
Marketing, J&J
Ann Lee-Jeffs
Founder/CEO, Sustainability Collaborative
Senior Principal, J&J

Jim Fava, Senior Director
and Founder of Five Winds
International
PE INTERNATIONAL, Inc.
& Five Winds Strategic
Consulting
Chris Peterson, Consultant
PE INTERNATIONAL

22.03.2012 2

 Case for Greener Products
 Case Study for Making Greener Products
 Marketing Greener Products
 Tools for Developing Greener Products – J.
Fava
 Conclusions
 Q&A

New Era of Constrained resources
 3 Billion more middle class consumers by 2030

 Global car fleet to double to 1.7 billion by 2030

 China anticipated to annually add 2.5 x’s floor
space the size of Chicago and India 1 x
 Ave. cost of an oil well has doubled over past
decade
 New mining discoveries has flattened despite
quadrupling exploration spending
Source: McKinsey Resource Revolution, November 2011

PER CAPITA GARBAGE PRODUCTION
Average pounds Per person Per Day
 USA 4.6

 Australia 2.7

 Japan 2.58

 Canada 1.79

 China 0.7

 Imagin the impact if developing nations
generate at USA levels
(Source: the Story of Stuff, Leonard 2010)

Sustainability Nears a Tipping Point

 Survey of >4,000 managers & executives from 113
countries
 70% of companies have sustainability permanently on
the management board agenda
 Most managers believe a sustainability strategy is a
competitive necessity
 In a poor economy most companies are increasing their
commitment to sustainability
Source: Sustainability Nears a Tipping Point MITSloan Management Review, Winter 2012

 Businesses are being held to higher
standards than ever
 Global environmental damage caused by
human activity is $6.6 trillion and about 11
percent of global GDP.
 The top 3,000 public companies are
responsible for one-third of global
environmental damage

Source: Environmental Leader 2011

Major events that drive greener products
 Wal-Mart , Tesco and other retailers going green
 Green building movement
 Green public procurement (EU & US require it)
 Social Responsible Investment; Dow Jones
Sustainability Index, FTSE4Good
 Environmental Shareholder resolutions
 Life Cycle Assessment
 Biggest impacts are usually not production sites
 Procter & Gamble determined hot water use was the
biggest impact for laundry detergent. Cold water
detergent addresses the biggest impact.

Walmart Sustainability Goals
 To produce Zero Waste, be supplied with
100% Renewable Energy, and to sell
Sustainable Products

Raw Materials

Product
Manufacture
Materials
Manufacture

Transportation
End & Distribution
Recycling
Disposition Use
Source: Five Winds Intl.

GE Ecomagination™
 Energy use

 Green house gas emissions

 Water use

 Ability to offer financial benefits to their
customers

 Significant funding commitments: $1.5
billion in clean technology investment in
R&D and committed another $10 billion for
R&D over the next 5 years.
 Success is measured in dollars. Sales in 2009
were $18 billion and the goal for 2010 is $20
billion.

 Represented as a business initiative
 Strong CEO support
 Supported with billions of R&D dollars
 Third party verified
 Has a review board of external company
advisors

Green Index® Program Objectives

Intent # 1.
 Provide designers and developers with a relative
measure of a product’s environmental
performance, so that they are empowered to make
it better from the start.

Intent # 2
 Provide consumers with a relative measure of
products’ environmental impacts to spur more
sustainable purchasing. (Timberland 2010)

Key Attributes of Timberlands Product
Stewardship Program

 Use a label, “Green Index,” to communicate
product greenness
 Use ISO 14040 life cycle assessment
management systems
 Set and report on product stewardship goals
 Have Earth Keepers line of greener products

The EARTHWARDS™ process has been reviewed by a
panel of sustainability experts from government,
academia, business, and an environmental NGO.

A proprietary scorecard was developed to evaluate
products in seven key categories that we feel have the
most potential for environmental and social impacts.

21

 Four Step process
1. Risk & Compliance Assessment
2. Life Cycle Screen
4
3. Make three 10% improvements in the categories
4. Complete score card and submit to the
EARTHWARDS ™ Board

22

EARTHWARDS™ Scorecard
Pre-requisites Achieved

Know materials, ingredients in your product
Identify and plan to address J&J Watch List materials
Know where product and packaging end up after use
Know whether agricultural or mined ingredients come from culturally or environmentally
sensitive regions

Complete life cycle screen to identify priority goals for the product (see separate screening questions)

Goals

Materials 1 Meet consumer need with less material or
2 Use more environmentally preferred material (see list) or
Packaging 3 Meet consumer need with less packaging or
4 Use more environmentally preferred packaging material (see list) or
Energy 5 Make product more energy efficient in use or

6 Make manufacturing or distribution more energy efficient or

Water 7 Make product more water efficient in use or

8 Make manufacturing more water efficient or

Waste 9 Make product with less waste during manufacturing or

10 Recover more product, after use, for reuse or recycling

Results Achieved all pre-requisites + three other goals?

23

What good is a greener
product if no one knows
about it?

All research is from the Shelton Group unless
otherwise stated

“It’s the number one thing consumers all over the
world care about.”
David Compton, CEO PepsiCo Americas Foods
(WSJ 2011)

 Global data from 26 countries indicates that
86% of consumers were concerned with climate
change, 71% said they would avoid buying
goods that traveled long distances and further
studies indicate that over 50% of consumers
“seek out eco-products or consider
environmental and social aspects in their
purchases.” (Winston 2009)

Source: Shelton Group 2010 Market Data

Meet the Actives (22% of the U.S. Population)
 This group is green in both their beliefs and
activities, with 86% reporting that they are actively
searching for greener products.
 81% said they would choose the environment over their
personal comfort or convenience (vs. 33% of the overall
sample).
 86% were concerned about chemicals, such as those found
in traditional cleaning products (vs. 59% overall).
 Actives do their research. They read about the
ingredients/content/energy savings on the package and
research it on the Internet. They also trust third-party
certification and third-party endorsement when
determining if a product is green.

 Actives gravitate toward messages that
emphasize environmental harmony and health
concerns.
 They tend to reject messages that focus on
saving money, duty and control. When it
comes to messaging strategies for food and
beverages, Actives gravitate toward themes of
enlightenment and truth.
 They believe that natural and organic foods are
better than conventional options because
they’re grown without chemical enhancements.

 Makers of green household cleaners may want
to consider a message that emphasizes the
health benefits of their products over
conventional ones. Actives migrated toward
messages of control/health and environmental
harmony.

 Life cycle thinking and greening the supply
chain initiatives are drivers of Unilever’s
sustainability program
 One goal is to increase the amount of
sustainably sourced raw materials such as
palm oil or tea. (Unilever 2010)
 Suppliers that can reliably source sustainable
tea can help them with this goal and result in
an opportunity to increase sales

 Tesco has an 88 page Environmental Guide for
Suppliers. With a significant focus on reducing
their carbon footprint, they want to encourage
their supply base to do the same.
 A goal was established to become a zero carbon
business by 2050 and to reduce carbon
emissions by 50% from their distribution net
work by 2012.

 Walmart, Kaiser Permanente and Procter &
Gamble all have score cards to encourage green
purchasing
 P&G and KP have a combined annual
purchasing power of $121 billion! Suppliers
take notice when they hear the VP and Chief
Procurement Officer of Kaiser Permanente say
“green up your act today, lest you lose a huge
client tomorrow.”
 Also consider that P&G alone has 75,000
suppliers throughout the world.

 Have a credible greener product story
 Meet your customer’s greener product
demands
 Appropriately communicate the products
greener attributes

 “Honest Tea creates and promotes delicious,
truly healthy, organic beverages. We strive to
grow with the same honesty we use to craft our
products, with sustainability and great taste for
all.”
 A commitment to social responsibility is central
to Honest Tea's identity and purpose. The
company states that they strive for
“authenticity, integrity and purity, in our
products and in the way we do business.”

Their products are based on five key focus areas:
 Antioxidants

 Fair Trade

 Less Sugar

 Organic Certified

 Packaging

 In 2003, Honest Tea became the first to make a
Fair Trade Certified™ bottled tea.
 Sugar and obesity: no sweetener or tad sweet
50 calorie drinks
 Certified to USDA organic standards

 Organic products are better for your
health and better for the earth. That’s
why USDA organic certification is a
critical part of Honest Tea’s commitment
to social responsibility.

Neutrogena® Naturals Purifying Facial Cleanser
Label Messages

 No harsh chemical sulfates, parabens,
petrochemicals, dyes or phthalates
 Gently removes impurities and improves
complexion for fresh, clear skin
 A cause marketing partnership with the
environmental group, the Nature Conservancy,
on freshwater projects has been initiated

Most Commonly Used Eco-labels Used by Leading Companies

Senior Director & Founder of Five
Winds International

Our Solutions map on the sustainability framework

Typical Elements of an is essential to the creation of
A sustainability framework
business value through sustainability.
Implementation Framework
Vision, Informed by stakeholder analysis and underpinned by
Strategy & principles & corporate objectives
Strategy
Policy

Integrated systems , clear targets tied to objectives
Management
Management designated accountability & continual
Systems
Systems
improvement mechanisms

Specific programs, practices , standards
Programs
Programs focused on priority business practices & strong
internal and external communication activities

Tools tied into key business
Decision Support Tools
Decision Support Tools processes (product development,
capital expenditures, supply chain…)

To enable measurement toward
Data and Informationdata
Foundational Management targets, and to support risk
& opportunity analysis

©PE INTERNATIONAL
22.03.2012 3

Life cycle thinking: a range of approaches
Increasing level of detail & data

Checklists Product scorecards LC Screening LCA
Directional tools Hot spot analysis EPD

HOTSPOT
Life Cycle Screening emissions from shredded
foam

Raw Materials
HOTSPOT
HOTSPOT
Hazardous waste in landfills
Emissions to air and water
from raw materials Attribute: End-of-Life
extraction and processing Management
Attribute: Materials
Manufacturing
Life Cycle

Consumer Use
of a
Product

HOTSPOT
Energy consumed during
Packaging
use phase
HOTSPOT
Attribute: Energy
Energy consumed and
emissions during
manufacturing phase

Attribute: Manufacturing and Operations

©PE INTERNATIONAL

Business Value: Cost Reductions, Top Line Revenue
Growth, Brand Enhancement

Yield
Ease
Sustainability

The YESpack requires…

• 50% less primary energy*
• 60% less plastic*
• 75% fewer CO2 emissions from transportation* http://www.kraftyespack.com/
*in container manufacture only, compared to the rigid gallon jug.
©PE INTERNATIONAL 6

What is a tool?

e.g., LCA is a tool to measure, assess and manage the environmental and
human health performance of a product from raw materials through production, use, and
end-of-life phases – from “cradle-to-grave” (ISO 14040 & 14044)

but, the problem with tools is…

tool
“If you don’t know where you are going any road will get you there”

Alice in Wonderland, Lewis Carroll

©PE INTERNATIONAL
7

 Both customers and companies can make a
difference by what they purchase and sell.
Fewer resources can be used, good causes are
supported and costs are reduced.

 When you hit this sweet spot, of having a truly
greener product that is communicated in an
appropriate way, everyone wins. Customer’s
needs are met and brand loyalty is built.

2012 Leading Edge Greener Products Webinar
March 21, 2012

Sponsored By

With Support From

For more information on the book
“Greener Products: The Making and Marketing of
Sustainable Brands” or PE INTERNATIONAL please visit:
http://iannuzzigp.wordpress.com/ or www.pe-international.com

22.03.2012 8

2012 leading edge greener products webinar

2012 leading edge greener products webinar

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