Collaborative Efforts on Sustainability in the Home Care Industry: Opportunities and Challenges - AOCS

Collaborative Efforts on Sustainability in the Home Care Industry: Opportunities and Challenges - AOCS

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  Collaborative Efforts onSustainability in the Home Care Industry: Opportunities and Challenges Patrick Donnelly, Ph.D. AOCS
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  •AOCS (American OilChemists' Society) is an international scientific society open to all who are interested in fats, oils, surfactants, detergents and related materials. •Founded in 1909 •Over 4,300 members from over 90 countries worldwide
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  Population growth Increasein life expectancy Rise in living standards Increase in consumption Resource limitations Need for Sustainability
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  I am veryconcerned about environmental problems 47% 54% 56% 68% 70% 72% 34% 31% 31% 25% 24% 21% 19% 15% 13% 9% 6% 7% 0% 20% 40% 60% 80% 100% Americans Canadians Argentineans Brazilians Mexicans Agree Neutral Disagree Average (17 Nations) Source: Greendex 2012: Consumer Choice and the Environment
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  I Am CurrentlyTrying Very Hard to Reduce My Own Negative Impact on the Environment 15% 43% 44% 45% 55% 65% 60% 47% 36% 40% 32% 31% 25% 10% 20% 15% 13% 4% 0% 20% 40% 60% 80% 100% Americans Argentineans Canadians Brazilians Mexicans Agree Neutral Disagree Average (17 Nations) Source: Greendex 2012: Consumer Choice and the Environment
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  Industry Response toSustainability •Corporate sustainability efforts have traditionally been performed in isolation, focused on improving efficiencies in manufacturing and within the supply chain –Greenhouse Gas Emissions –Energy Use –Worker Safety –Water Use –Waste Generation
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  The Business Casefor Collaboration 0 10 20 30 40 50 Sharing/reducing costs Achieving first-mover advantage Strengthening reputation and leadership credentials Sharing/reducing risk Sharing expertise, competencies, or perspectives Source: GlobeScan, Collaborating for a Sustainable Future (2013) 46 46 35 29 23 % Responses
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  Progress on Sustainability:Importance v. Ease of Collaboration (% total mentions) Most important for collaboration Ease of collaboration Source: GlobeScan, Collaborating for a Sustainable Future (2013)
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  Collaborative Efforts inthe Home Care Industry •AOCS examined collaborative efforts for sustainability in the home care industry •Activities were mapped geographically and by “life cycle” stage •A “roadmap” was developed describing –The business case for collaboration –Select case studies throughout the product lifecycle –A more extensive list of activities and resources to support the industry •Objective is to expand and amplify collaborative efforts
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  Collaborative Efforts inthe Home Care Industry •Key findings: –Collaboration is an important tool to advance sustainability –Reliance on a lifecycle approach gives focus and priority to key areas –Focus on one or two key areas is important for success (build programs over time) –The issues are complex, there an iterative approach, coupled with realistic expectations, is essential. •Anticipated release: fall 2014
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  Despite Industry Efforts,Challenges to Sustainability Remain •Consumer expectations on product performance •Consumer willingness to pay higher prices •Consumer behavior/culture •How can industry shape consumer demand?
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  “Others” 5-10% Extremely price-centric; “Never Greens” “Mainstream Consumers” 75-80% Generally consider themselves “sustainably aligned” but tend to be unwilling to accept trade-offs or pay higher prices “Greens” 10-15% Deeply committed to sustainable concepts Willing to accept trade-offs and pay higher prices Consumer Sustainability Mindset Model
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  “Others” 5-10% Extremelyprice-centric; “Never Greens” “Mainstream Consumers” 75-80% Generally consider themselves “sustainably aligned” but tend to be unwilling to accept trade-offs or pay higher prices “Greens” 10-15% Deeply committed to sustainable concepts Willing to accept trade-offs and pay higher prices Consumer Sustainability Mindset Model The Sustainability Challenge
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  The Rise ofSocial Media
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  “Others” 5-10% Extremely price-centric; “Never Greens” “Mainstream Consumers” 75-80% Generally consider themselves “sustainably aligned” but tend to be unwilling to accept trade-offs or pay higher prices “Greens” 10-15% Deeply committed to sustainable concepts Willing to accept trade-offs and pay higher prices Consumer Sustainability Mindset Model Social Media Susceptible?
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  “Others” 5-10% Extremelyprice-centric; “Never Greens” “Mainstream Consumers” 75-80% Generally consider themselves “sustainably aligned” but tend to be unwilling to accept trade-offs or pay higher prices “Greens” 10-15% Deeply committed to sustainable concepts Willing to accept trade-offs and pay higher prices Consumer Sustainability Mindset Model ? Social Media Susceptible?
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  Gamification •Use ofgame elements and game design techniques into a non-game environment in order to educate, change attitude or behavior and inspire action •Goal is to motivate people to do something by making the experience fun, rewarding, and desirable (i.e., game-like)
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  Gamification works •375Mpeople play (and pay for) social games each month on facebook •120+ M people enrolled in travel reward programs •Retailers are increasing awarding “points & badges” to encourage store visits
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  Summary •Collaboration isan important tool for advancing sustainability in the home care industry •Consumer “willingness to pay” and longstanding cultural/behavior elements remain significant barriers to sustainability •Social media technologies have created new opportunities to promote sustainability and interact with consumers •Gamification may emerge as an important strategy not only to educate consumers, but to shape attitudes and behaviors of consumers with respect to sustainability.