September 2011

In This Issue

CEO’s Update:

Sustainable Packaging Update:
Nestle & Danone lead the way in bioplastics

The GREEN POWER of ADVOCACY GROUPS:
Greenpeace stirs up sporting goods giants

Look Down:
Wegmans and Hopper Group look to their floors to save the earth and cut costs

GREEN MONDAY interrogates MARKS & SPENCER on PLAN A

CEO’s Update:

Welcome to the September issue of the Sustainability Intelligence Report.

In this month’s report we are highlighting some truly outstanding achievements and innovations in the retail and FMCG sectors in advancing sustainability.  We also sound a warning for those companies that may be ignoring the growing public demand for meaningful action on sustainability issues.  We expect you'll be feeling pretty motivated by the time you finish reading.

But action is not the only important aspect to corporate sustainability.  Communication is also critical.  There is tremendous social capital, employee engagement and marketing kudos to be gained through your sustainability efforts, so don't just act: inform.  Using plain English, let your stakeholders know about your advances and, where appropriate, your plans.  Your staff will feel pride, your suppliers will admire your efforts and step up their own and your brand will shine brighter with your customers.  But exercise caution.  This is not the place for marketing puffery.  Sustainability communication must be honest. There are plenty of advocacy groups out there ready to catch you out on exaggeration and fabrication.

Need help with your sustainability communications?  That's what we are here for, so drop us a line if you want to really nail your communication objectives and capitalise on your sustainability investments!

Be bold!  And communicate your success!

Tara Allsop
CEO, Green for Retail

Sustainable Packaging Update:
Nestle & Danone lead the way in bioplastics

The Packaging Covenant has confirmed that annual reporting against Action Plans is due on 31 March, 2012 and we have been working with a number of clients to help them get ready.  We have also been looking carefully at advancements in bioplastics.  Recent moves by Nestle and Danone, amongst others, demonstrate the potential for this exciting technology to radically reduce reliance on fossil fuels.  We are certainly looking to bioplastics with client Action Plans and hope you will be considering these as well. 

Brett Giddings, Green for Retail Sustainable Design Consultant, explains: “Cyclic products sourced from renewable resources are central to improving the sustainability of retail.   While not presently an option in Australia for all packaging solutions, bioplastics should be considered as a future packaging alternative.”
Globally, the last two months have seen the launch of some exciting  initiatives in bioplastic packaging.  For the uninititiated, bioplastics are made from plant-based materials (e.g. sugar) rather than oil or gas. It is estimated that if you were to replace 100,000 plastic food containers with bioplastic equivalents you would save greenhouse gas emissions equal to driving a car 16,000 miles and non renewable energy equal to 19 barrels of oil or 775 gallons of gasoline. Think about how many plastic containers your company produces every year and get out your calculator.  This is big!

Here are some of the latest FMCG developments:

• In March 2011, L’Oreal USA announced that they will make bioplastics a key part of their drive toward sustainability

• Also in March, PepsiCo revealed its plans to move to a 100% bioplastic bottle.  Working with cornucopia of plants including pine bark, corn husks and orange peels it claims to have developed a bioplastic with a molecular structure identical to petroleum based PET

• In June 2011, French food company Danone and supplier Natureworks announced the launch of 100% plastic packaging for the yoghurt brand Activa. Danone anticipates that the products packaging carbon footprint will be reduced by 25%, and the use of fossil fuels in packaging production will drop 43%

• Also in June, Nestlé Global Head of Packaging, Dr Anne Roulin, announced Nestlé’s commitment to bioplastics as "the future of food packaging"

• Last month Nestlé, partnering with Tetra Pak, announced a move to 100% bioplastic caps for it's UHT milk and ready to drink brands in Brazil

This is only the beginning of what's possible.  There are 3rd-generation bioplastics made from non-food sources such as algae, cellulose and waste products already in the pipeline and expected to be widely available by 2015.  If your product is packaged with plastic, then bioplastic innovation may be in your future – and could be a major branding coup for the first mover in Australia!

The GREEN POWER of ADVOCACY GROUPS:
Greenpeace stirs up sporting goods giants

In July 2011 Greenpeace published it's 'Dirty laundry' report drawing the world’s attention to problems of toxic water pollution from the release of hazardous chemicals by the textile industry in China.  Greenpeace was able to document the threat this posed to the ecosystem and to human health and implicated the major sportswear suppliers in the horrifying problem.

On September 1st, a mere 7 weeks later, Adidas became the third major sporting goods company, after Puma and Nike, to announce radical changes including a pledge to reduce to zero their discharge of hazardous chemicals.  Their announcement includes the phase out of all bioaccumulative  and hormone disrupting substances, full transparency about the chemicals used in supplier factories, commitment to work with all levels of their supply chain and the provision of a more detailed plan within 7 weeks.

This is a morality tale for any company that still thinks sustainability is a secondary issue. Stay on top of sustainability or advocacy groups and the power of social media may force your hand.  Stay in front where you can earn social capital for your efforts and control the pace of change.

• Download the Greenpeace report
• Read more: Cleaning Up Brand Names
• Read Adidas press release: Adidas

Look Down:
Wegmans and Hopper Group look to their floors to save the earth and cut costs

Trying to figure out where to start with your sustainability plans?  Well, one place to consider is the floor. 

Beginning 1 September Rochester NY based grocer Wegmans will move to a cutting edge technology that will clean the floors of their 77 stores using just plain tap water; no cleaning solutions or chemicals.  The company has invested in the ec-H20TM floor scrubbing machine, manufactured by Tennant Company.  The machine uses an electrified screen to activate water, creating micro bubbles and charged water molecules that act like magnets and attract dirt.  Jason Wadsworth, Wegmans Sustainability Coordinator, estimates that the stores will reduce water use by more than a million gallons annually and cut the use of standard chemical cleaning solutions by over 20 thousand gallons.  That's awesome!

Closer to home, Hopper Group IGA have been developing the network’s leading environmentally friendly store at Greenslopes in Queensland. One of the sustainable innovations that the Group has incorporated into the store is the Bisazza Stone and Glass Floor.  Not only are these revolutionary tiles made from recycled materials, they can be washed with just water - meaning no more chemical cleaning solutions - and they do not require polishing, saving the power and labour costs associated with using a buffer.  And according to Brad Hopper, Managing Director of the Hopper Group, this floor is not just an environmental and operational win, it's a winner in the beauty stakes too.  "The fact is I probably would have done this floor anyway because it looks so great," says Brad.

There's more than one way to clean a floor - but what's exciting is that retailers are finding ways to make even this mundane activity more sustainable and cutting costs in the process.

• For more on Greenslopes check out their website: IGA Greenslopes
• Article: IGA Really Goes Green

GREEN MONDAY interrogates MARKS & SPENCER on PLAN A

Speaking of the power of social media, here is an example of social media designed to help companies stay ahead of the sustainability game. 

For anyone not yet familiar with Green Monday, we at Green for Retail commend it to you.  Green Monday is a UK-based group that holds monthly events to discuss key issues in corporate sustainability.  Thanks to the wonders of social media, those of us not able to attend the meetings in London or Manchester can hear the talks via podcast. 

After a rush of blood in 2007, a number of international retailers and manufacturers pronounced bold sustainability goals in a pre-GFC environment. This month, Green Monday speaks to representatives from Marks & Spencer – one of the early leaders in this arena – about how their Plan A has progressed over the last 4 years.  

Click below to see the more details of the event and download M&S latest update:

• Green Monday: Marks & Spencer Update
• Read the latest: Marks & Spencer Plan A 2011 Update

THINK BIG - Communicate your Success!

Is it time to start Green Comms with your stakeholders? Rest easy - it is possible to:

• Communicate sustainability in plain english 
• Comply with the ACCC Green Marketing Guidelines
• Deliver great benefits your brand

 To find out how Green for Retail can help you nail your communication objectives, contact us now!