Sustainable Action Leadership

The Challenge of Ethical Consumerism

The Challenge of Ethical Consumerism originally posted here on Smart Solutions for Sustainable Business

by Coral Rose

The world is shifting, companies will take note and drive sustainable change or they will become part of (what one of my former supervisors deemed) “the Left Behind Series.” In other words, companies not communicating their environmental and social progress will lose out to their competitors that do.

Imagine what would happen if all consumers looked at all their disposable income and decided they were going to only purchase products that supported a sustainable, healthy and socially just world? Imagine what your business would look like if you weren't prepared for that day.

According to a recent poll conducted by the Global Strategy Group, 87% of consumers are more likely to buy products from a retailer that is committed to environmentally sound practices.

With this increased awareness, the question for many companies becomes, how to achieve the maximum economic benefit from environmentally and socially responsible products and practices while at the same time increasing shareholder value and increasing stakeholder trust?

Looking Up and Down-Stream

·         In 1960 we were generating 2.7 pounds of waste per person PER DAY.

·         In 2006 that number is 4.6 pounds of waste per person PER DAY.

·         By the time that waste fills 1 garbage can, 70 garbage cans of manufacturing waste were created upstream to make the stuff that is now junk.

                   Source:2006 EPA Facts and Story of Stuff

(Read that last bullet point again. From the source of the product through the sale-use, disposal and or reuse it takes 70 times the resources to produce that one can of garbage! That's a bad ROI - Return on Investment or ROJ Return on Junk, any way you look at it.)

Jared Diamond in, "What's Your Consumption Factor"? expands that “1 can” to its worldly impact, "The average rates at which people consume resources like oil and metals, and produce wastes like plastics and greenhouse gases, are about 32 times higher in North America, Western Europe, Japan and Australia than they are in the developing world.”

When we talk to consumers about greening up their life, usually it's in terms of what they can do after the fact or "downstream" from their point of contact, i.e. bringing down the size of their 1 personal can of trash. How do you think they'll react when they know that 70 more cans were created prior to reaching them? Will they get angry, or will they just give up?

Today, the majority of products' environmental and social impacts are hidden from our view. Consumers don't ask because they really don't know to do so, or perhaps they don’t want to know what's behind the curtain - either way, with more awareness, Ethical Consumerism is on the rise. It's a movement based on purchasing products that have been ethically produced - products that have been made without harming the environment or exploiting individuals and animals.

Defining exactly what is or isn't ethical will be one of the most difficult issues of our economic times.

While many new labels have come to market recently, they have not yet matched the impact of programs such as ENERGY STAR. This is one label that has become a simplified clear choice, but it only represents one aspect of the product's value - low energy.

The acceptance of the labels with the highest recognition in today's market follows closely to what impacts the consumer interests the most, i.e. Energy (personal cost), Recycling (cost and handling issues), USDA Organic, (safe to eat), Fair Trade (safe for global workers). They follow the same path as what makes a company tick – profit, lean-manufacturing, safety and happy workers. [SMaRT covers all four areas] 

Does it Pay for Business to Be Ethical?

According to a recent study reported by the Wall Street Journal, moving your company to embrace more environmentally and socially responsible practices-that are third party certified would be a good investment. Green consumers may be willing to purchase unethically produced products, but at a steep discount.

The return on investment and profits of companies in the 21st Century are clearly rooted in social responsibility as noted in these results:

Reward and Punishment

What are consumers were willing to pay for a pound of coffee based on what they were told about the company's production standards?

Ethical standards . . . . . . . .  $9.71

Unethical standards . . . . . .  $5.89

Control (no information) . . . $8.31

Source: “WSJ-Does Being Ethical Pay” 

A recent survey by BBMG indicated that 35% of all Americans have avoided a product because of a company’s practices. “People may not pay more for green products, but they may punish products and companies perceived as not socially or environmentally responsible.” Andrew Winston.

With the rise of social media including blogging, if you're lucky, your consumers will punish you by not buying the product. If you're unlucky, they'll punish you by putting up a bad review on the Internet that will follow your company and the product around for decades.

What Now?

Sustainability is becoming less "optional" and is already becoming a necessary part of every business strategy.

So, how will we conduct business in the 21st Century where the consumer-becomes a conservative-ethically minded conscious-consumer and actually practices the art of buying and spending less?

The competitive advantage of the 21st Century has arrived, be aware, educate yourself and your teams

formulate eco-strategies to save energy, lean up waste, stop the pollutants and take care of  workers producing your products. Those are the top areas that will resonate with consumers.

What else can you do?

1.) Not only understand but, “own” your product's life cycle. This is a mindset shift at the design level. Lifecycle includes understanding and owning the environmental and social impacts along the supply value chain.

2.) Choose products that can be authenticated to the source. Independent Third Party Certification of Accredited Standards e.g. SMaRT, Organic, Fair Trade, etc.

3.) Educate your purchasing agents, consumers and investors. Focus on energy saved, waste reduced, pollutants eliminated and workers rights issues. Be prepared to link to a source that can prove all of the above statements and tell the whole story across the supply chain. Note both the successes and the places you have to improve. Talking up the good and leaving out the bad is ok when talking about your family, but not your products. Truth and proof is the new marketing mantra.

4.) Keep your eye on the future. Plan now. Should consumers opt to buy less and they will, how will this affect your business model?  Will you be offering more services to offset the lower product sales?

If you have a plan in place you will have the 21^st Century edge.

Write Coral at [email protected]

We welcome your comments.

 

Does it Pay for Business to Be Ethical?

According to a recent study reported by the Wall Street Journal, moving your company to embrace more environmentally and socially responsible practices-that are third party certified would be a good investment. Consumers may be willing to purchase unethically produced products, but a steep discount.

The return on investment and profits of companies in the 21^st Century are clearly rooted in social responsibility as noted in these results:

REWARD AND PUNISHMENT 

What consumers were willing to pay for a pound of coffee based on what they were told about the company's production standards?

Ethical standards . . . . . . . . $9.71

Unethical standards . . . . . . . . 5.89

Control (no information) . . . . . 8.31

Source: “WSJ-Does Being Ethical Pay”

A recent survey by BBMG indicated that 35% of all Americans have avoided a product because of a company’s practices. “People may not pay more for green products, but they may punish products and companies perceived as not socially or environmentally responsible.” Andrew Winston.   

We Have One Planet-We Would Need 3 to 5 Planets If Everyone Consumed Like the U.S.

"The average rates at which people consume resources like oil and metals, and produce wastes like plastics and greenhouse gases, are about 32 times higher in North America, Western Europe, Japan and Australia than they are in the developing world.”

“Today, there are more than 6.5 billion people on the planet, and that number may grow to around 9 billion within this half-century. Several decades ago, many people considered rising population to be the main challenge facing humanity. “Now we realize that it matters only insofar as people consume and produce."

"If India as well as China were to catch up, world consumption rates would triple. Some optimists claim that we could support a world with nine billion people. But I haven’t met anyone crazy enough to claim that we could support 72 billion."

"The world has serious consumption problems, but we can solve them if we choose to do so."

For full article: "What's Your Consumption Factor" by Jared Diamond click here

Our Pardoxical "Green Planet"... Ethical Consumerism

“Green consumption” makes Wikipedia’s “List of Genuine Oxymora”. The reason: consumption by its very nature has an impact on the environment – to some degree or another – and therefore, is hard to call truly green."

Paul Hawken, author and longtime environmental activist, said the current boom in earth-friendly products offers a false promise. “Green consumerism is an oxymoronic phrase,” he said. He blamed the news media and marketers for turning environmentalism into fashion and distracting from serious issues. "

There has to be some way for Business to stay in Business and become a better Corporate Citizen. There is, it is the paradigm shift to Sustainable Business.

Business is in business to do business--e.g. be profitable, so just how does business define what is needed to maintain a competitive edge in the market? And at the same time minimize the extraction of non-renewables and treat workers fairly?

They will continue to drive sales defining their businesses, while marketing to 21st Century consumers....so just what kind of consumers are they?

Here are the primary consumer movement drivers, we are not talking LOHAS here, those of us who are LOHAS fall withing conscious consumerism one of these categories already.

These are the growing groups to keep an eye on:

1.) Ethical consumerism is a movement based on purchasing products that have been ethically produced. In General terms products that have produced without harm to the environment or the exploitation and harm of individuals and animals.

2.) Conscious consumerism is a community minded-social movement, which generally describes those who have voluntarily chosen a life of simplicity. A life where they focus on work-life balance-this focus allows them to enjoy life without putting importance on material possessions “keeping up with the Jones’s”. When they do purchase they tend to look first to options such as flea markets, second hand stores, free-cycle etc.

When they do make it purchase it is well thought out and not by impulse. Of high importance to them is their values, supporting the local economy, and is this a product that will last or perhaps once the use is complete is there another use for it?

Love, Earth Jewelry: From Mine to Store

How do corporations support sustainable consumerism in light of lack of transparency and the slew of misleading claims in the market? By purchasing fully transparent product source to shelf and by communicating that to their customers.

Love, Earth Jewelry: From mine to store

In another “game changing” move, congrats goes to Wal-Mart Stores Inc this week for introducing a ‘transparent’ line of gold and silver jewelry that can be traced from the mine to store shelves. "For every ring that is made, gold mining generates approximately 20 tons of waste. Most of the world's gold deposits consist of microscopic specks that must be chemically extracted from rocks using thousands of gallons of cyanide.”

Wal-Mart said the Love, Earth line, which includes a $69.84 sterling silver necklace and $48 hoop earrings, will be sold in its U.S. discount stores, Sam's Club warehouses and online. A customer who buys the jewelry can log on to a website to see where their particular piece of jewelry was mined and learn about the suppliers' environmental programs.

"It's the first time ever that we, or any major mass retailer, have been able to provide customers with a way to trace the path of their product from the mine it was actually mined from to the shelf," said Wal-Mart spokeswoman Tara Raddohl.

As the retailer looks to sell more jewelry sourced from mines and manufacturers that meet its environmental and human rights standards. Those standards currently include minimization of waste and pollution; safe disposal of waste and hazardous materials; respect for employee rights; and compliance with applicable laws and regulations. Wal-Mart wants at least 10 percent of its jewelry offerings to meet those standards by 2010.

Web Tool Calculates Textile Eco-Footprint

Originally Posted Here on Eco Textile News

PONTEFRACT – [07.18.08] Textile eco-metrics, the world’s first tool for simple assessment of the environmental impacts of textile production and use has been now been launched by Colour Connections in conjunction with Ecotextile News. It is now available to access directly from this web-site.

This revolutionary new web-based calculator takes into account the entire production route from fibre selection through to fabric production to dyeing and finishing. It also compares the production impacts of different washing and drying methods over the lifetime of a garment by consumers.

Using cleverly derived Environmental Damage Units (EDU’s) the impact of different fibres, fabric weights and dyeing and finishing methods can be compared in terms of water impact, energy use, use of non-renewable resources and pollution.

A simple colour coded report is produced that enables users to see at a glance where a particular product has most impact and highlights the areas that require attention or, conversely, where products and methods are good. The easy-to-read colour coded grid conceals the complex mathematics involved but an overall indicative EDU score enables easy comparisons between different textiles to be made.

Textile eco-metrics also provides simple, easy to understand explanations of what is good or bad about a particular fibre, fabric or process so it can be used to increase the levels of understanding about what is fact and what is ‘greenwash’ in the world of textiles and clothing.

Of particular interest to those committed to a sustainable textile industry are the Sub-Optimal Durability Units (SODU’s) that are calculated to show just how bad low durability clothing merchandise is for the environment. For example a product that has a production impact of 10 EDU’s and lasts for 50 domestic washes is far better than a similar garment that an impact of five production EDU’s but only lasts five washes – the latter garment would need to replaced nine times in the same lifetime so a penalty of 45 EDU’s would be awarded.

Textile Eco-metrics will be developed on an on-going basis and is available for an annual subscription.

To see how to use Eco-Metrics CLICK HERE.

CLICK HERE for more information on how to subscribe to EcoTextile News.

Copyright © 2008 Mowbray Communications Ltd

 

Levi’s To Phase Out PVC And Other Chemicals

As reported by Eco Textile News: Click here for original post

SAN FRANCISCO – [15.07.08] Levi Strauss has put five new chemicals on its phase-out list as part of a continued effort to improve its commitment to environmental sustainability through its manufacturing supply chain.

The five substances which have been put on the list as part of Levi’s two yearly Restricted Substances List (RSL) update include PVC – often found in screen printing systems. The giant jeanswear company is now encouraging suppliers to use water-based (PVC-free) printing systems instead and also intends to phase out the use of phthalate plasticisers. Phthalates give flexibility to PVC prints on t-shirts and other garments. Phthalate use is already prohibited for children products, but Levi’s is now also encouraging its suppliers to use phthalate-free chemicals for adult products.

Other chemicals on the new phase-out list include alkylphenol ethoxylates (APEOs), which are often found in detergent, soap or chemical mixtures as surfactant and in wetting agents for scouring (see Ecotextile News, April 2008, p. 35). The company will in future prohibit the use of D4 siloxane which may be found in residual traces in certain silicone softeners along with a chemical called Bisphenol-A which is not likely to be used in the production of textiles but may be found in resins.

“Levi Strauss &Co seeks to reduce the impact of our and our suppliers’ business processes on the environment, and the phase-out list is an important step in realizing this commitment,” said Sean Cady, LS&CO. Director of Environment, Health and Safety. “The RSL is a critical element of LS&CO.’s responsible sourcing program,” Cady continued. “It helps us ensure product quality, protect the health and safety of our consumers and further our environmental objectives.”

Levi Strauss updates its RSL every two years to reflect developments in production methods, legal requirements, scientific understanding and the company’s sustainability priorities.

This chemical phase-out list applies to chemicals used in the manufacture of Levi Strauss products and raw materials. While it says suppliers are encouraged to find alternatives to these five substances it acknowledges “certain challenges may prevent an immediate cessation of use,” adding that it will, “continue to support efforts to identify alternatives to these phase-out chemicals with the goal of prohibiting their use at a future time.” Copyright © 2008 Mowbray Communications Ltd  

Eco-fabrics Featured At G8 Summit

As reported by Eco Textile News: Eco-fabrics featured at G8 summit

TOYAKO – [08.07.08] Heat resistant PLA fabrics and recycled polyester textiles from Teijin Fibers have featured at an eco fashion show as part of the G8 Hokkaido Toyako Summit of world leaders currently taking place in Japan.

Teijin’s latest ‘Biofront’ fibre was used in garments for the ‘Fashion for the Earth in Sapporo’ show, which took place under the auspices of the sponsor organisation and as part of The Environmental Exhibit of 2008 (sponsored by the G8 Hokkaido Toyako Commemorative Summit in the Hokkaido Environmental Exhibition Organising Committee).

All the garments worn at the show were made primarily of ‘green materials’ which included women’s jackets made of Teijin’s heat-resistant poly-lactic acid (PLA)-based fibre ‘Biofront’. Unlike earlier versions of PLA fibre, this new polymer has pushed up the melting point of ordinary PLA fibres to 210oC from 170oC, which has enabled high-temperature and high-pressure dyeing along with moderate-temperature ironing of the fabrics.

Previously it was virtually impossible to iron garments at high temperatures made with PLA without destroying the fibres. There were also issues surrounding the dyeing of deep shade fabrics due to the limitations of PLA when it came to heat resistance during dyeing.

Teijin says that Ms. Masako Oka, chairman of the fashion show‘s executive committee, has been promoting the use of the PLA heat-resistant materials at the event and has worked together with Teijin’s ‘Sustainable Management’ team.

Meanwhile, the huge message flags used for the G8 Hokkaido Toyako Summit events at the Environmental Exhibit 2008 were made from Teijin’s ‘Eco Circle’ recycled polyester fibres which have been certified with an ‘Eco Mark’ seal of approval. This message flag uses roller-screen textile fabrics developed jointly by Teijin Fibers and Tachikawa Corporation. Copyright © 2008 Mowbray Communications Ltd  

Green Product Design; Eco-Apparel Hangers

GreenHeart Global , an Oakland, California company, is a green industrial design company that creates products made from recycled or recyclable material. But they have one major hang-up.

“There’s nothing we hate more than seeing our products end up in the trash!”, says CEO and founder Gary Barker. “That doesn’t mean we think our products will live on forever. It does mean that once our product’s useful life is over it’s easily recyclable. All our products are made from highly recyclable and recoverable material. This keeps the product, and the material they’re made of, out of landfills and inside the environmental loop--where they belong.”

Their other hang-up is GreenHeart Global’s first line of “intelligently” engineered, environmental products, marketed under the name Ditto Hangers . Ditto Hangers are an award-winning1 line of 100% recyclable garment hangers that replace the old dry cleaner wire hanger and the much maligned plastic and wire hangers found in retail clothing stores.

Ditto Hangers have two lines that are made from two of the planet’s most recycled materials: 100% recycled paper and 100% recyclable PET plastic, the same plastic used to make water bottles.

“We designed our hangers starting at the end of their useful life rather than from the beginning.” says Barker. “That way we know they’ll have value on the secondary, recycling market--unlike the typical ‘invisible’ hanger found in most retail clothing stores”.

Created for retail clothing companies, non-toxic dry cleaners and green hospitality Ditto Hangers are 100% recyclable in the majority of recycling programs at the store level. They are designed to replace the estimated 8-10 billion polystyrene [PS] and polycarbonate [PC] plastic and wire hangers that are produced annually, only 15% of which are typically recycled. The rest go to landfills taking over 1000 years to break down leeching toxic benzene and bisphenyl-A into the ground water. 2

GreenHeart Global recently contracted with a large San Francisco based clothing company for their unique Ditto Paper and Metal Clip hanger for a denim roll-out. They have also been working with such progressive companies as Reebok/Canada on designing hockey equipment hangers and Adidas/Germany designing wide-shoulder paper hangers.

“We’ve found that companies are coming to us to design not only hangers but other products that use sustainable materials and that can be produced in our certified contracted factories” Barker noted. “We see a huge market creating beautiful products that are intelligently designed so that their end-of-life is engineered into the product. We don’t see consumption going down any time soon. That means it’s up to the industrial designer to design products responsibly. I don’t know of any other company out there doing what we do.”

About GreenHeart Global

Ditto Hangers is a division of GreenHeart Global, Inc. GreenHeart Global conceives, designs, manufactures, and markets products to meet the growing demand for goods that are less harmful to the environment. They focus on existing products and/or systems and redesign them so they are compatible with the increasing emphasis for “green” compliance. GreenHeart Global’s highly-designed products incorporate recycled, recyclable, rapidly renewable and/or bio-based materials, and replace toxic and non-sustainable materials with organic or natural alternatives, including inks, dyes, and adhesives. GreenHeart Global, Inc is a California based corporation with headquarters in Oakland, California and offices in Hong Kong.

Collaboration-Competitors Join Forces To Save Energy

Coke, Nestle, Others to Share Shipping Routes

as reported by Sustainable Life Media

June 19, 2008 – Some of the U.K.’s biggest food and drink companies, including Coca-Cola, Nestle, and Coors, have agreed to share space in shipping trucks in an effort to reduce the costs and environmental impacts of product transport, Food Production Daily reports.

The new Sustainable Distribution initiative, spearheaded by food industry think-tank IGD, has so far attracted 37 corporate partners. The program will remove about 800 delivery trucks from British roads and save 23 million liters of diesel fuel this year, IGD estimates.

"In a highly competitive industry, getting 37 companies working together in this way is very innovative and results so far are impressive," says IGD president and CEO of Nestle U.K. Alastair Sykes.

The truck-sharing scheme was piloted last year by Nestle and United Biscuits, which have boosted efficiency in their distribution networks by enlisting United Biscuits trucks to pick up a load of Nestle products each day, reducing the number of empty truck runs. The concept of supply chain collaboration – even among companies within the same industry – appears to be gaining some acceptance. A recent report from the Global Commerce Initiative recommends a new supply chain model in which companies work together to improve environmental and social performance while cutting costs and ensuring an uninterrupted supply line.