Month <span class=May 2015" src="/wp-content/uploads/2014/04/cropped-office-building-secondary-1.jpg">

Month May 2015

Earth Day Special extended to 5/31 – Join AGPOM for only $55!

Tara Hughes May 28, 2015 Industry News No comments

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Earth Day Membership Special

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Sustainable Supply Chains in Chinese Factories, Pt. 2

The SSC Team May 21, 2015 Tags: , , , , , , , , , , , Strategic Sustainability Consulting No comments
This is Part 2 of a two-part interview with Nate Sullivan of Efficiency Exchange, provider of sustainability software and services to manufacturers.  He highlights some of the challenges faced by Chinese factories in implementing their sustainable supply chain programs. On Tuesday, we posted a Part 1 of this interview from the SSC archives  - enjoy: SSC: How much time and effort should a supplier factory reasonably expect to spend on tracking and reporting sustainability information to their customers? Nate Sullivan: Given how hard customers are going to push them on price, we think the focus really needs to be on driving that time and effort down to zero. One of the things that really drove us to build Charge the way we did was seeing how all this compliance data was not being used to provide any value to factories -- all the time they theoretically spent gathering and vetting that information was essentially spent checking a box that didn't create any value for them. That's not the way it has to be, or should be. When factories meet sustainability requirements through Charge, they're doing it without spending any time solely on compliance -- they are spending that time figuring out how to run their factory more cost-effectively, and then as a secondary benefit that data is helping them show that they meet compliance standards. Everybody still gets what they want, but nobody is sitting there trying to figure out whether the time is well spent, because the benefits of spending it are much more direct. SSC: When done correctly, what are the bottom-line benefits that a supplier factory should see when implementing sustainability initiatives? (feel free to use EEX-specific examples!) NS: From the factory perspective, sustainability initiatives can have several possible benefits, if done right. First of all, there's reduced cost in the form of energy, water use, steam, natural gas, or whatever resource is being used less. There are some big benefits there, but obviously the "doing it right" part here is important, because factories need to be targeting the sustainability projects that make economic sense first and foremost. That's why Charge starts with energy -- we found energy costs and consumption to be something that factories could attack aggressively, reducing cost without slowing business growth. But there are opportunities in other fields, and Charge is going to add all of those to it's core capabilities. Other than cost reduction, the biggest benefit to any sustainability project is becoming more appealing to customers, and that's a big part of where we see Charge going in terms of it's relationship to buyers and brands. It's a top line benefit instead of bottom line, but the idea behind Charge's connection to retailers is ultimately to match the best suppliers to the best retailers. Charge looks at your operational data, and tells you "hey, you are currently meeting the requirements for the following potential customers", and vice versa. That introduces you to new customers who are excited to work with you, and it ties successful sustainability projects to new business and more revenue, which really changes the motivational calculus for factories. Instead of seeing sustainability as this horrible paperwork/audit driven obstacle, it becomes something factories actively seek out, because the better they operate, the more customers they can find, and the better those customers will be for the business. I think that's already the somewhat cartoonishly-optimistic perception of sustainability, especially in the west, but until EEx came around, I don't think anyone was out there building the tools and relationships necessary for that to become reality at the factory level. That's something that we are really, really excited to do for them. How is sustainability saving Chinese textile mills money? Read about it here!

Sustainable Supply Chains in Chinese Factories

The SSC Team May 19, 2015 Tags: , , , , , , , , , Strategic Sustainability Consulting No comments
Enjoy this 2013 interview from the SSC archives: An increasing number of companies are implementing sustainable supply chain programs. These programs usually include requests to suppliers to fill out long surveys, track and report data, and develop internal management systems to improve factory-level sustainability performance. At Strategic Sustainability Consulting, we believe that effective supply chain engagement on sustainability is critical to manage risk and leverage opportunities, but we also know that suppliers are often overwhelmed at the requests they are getting from their customers. To get some insight into the challenges facing suppliers, we recently interviewed Nate Sullivan of Efficiency Exchange (EEx). We've worked with EEx, a provider of sustainability software and services to Chinese factories, for many years, and believe they have their finger on the pulse of the Chinese supply chain. SSC: You specialize in working with Chinese factories. What are you seeing in these factories with regard to supplier questionnaires? Nate Sullivan: Supplier questionnaires and worksheets are not a new thing -- factories have seen them for decades.  They've always had to fill out spreadsheets and word documents with tons of information about their facility -- from general company information, to detailed labor practices and customized quote sheets.  However, they complain that the only ones that seem to have a real impact are the quote sheets, because they're about price, and that's ultimately what customers care about in practice.  Now they are being asked to fill out sustainability questionnaires full of data, which requires a full time job to compile and document (around 40 hours a month).  Most of the time they don't even know why the customer is asking for the data, and they say that they rarely hear much back after submitting the information.  So basically it's another hoop to jump through that doesn't appear to influence purchasing decisions, and keeps factories from focusing on what they do well -- which is making stuff. SSC: What are the biggest obstacles to effectively measuring and managing sustainability impacts (like energy, waste, and water) at the supplier factory level? NS: The biggest problem, by far, is accuracy. People really need to realize that there's a tremendous amount of bad, inaccurate data out there that is useless no matter how you look at it, because it simply doesn't reflect reality. That's almost entirely due to how and why it's collected, which is usually through required self-reporting, without any incentive for suppliers that what they provide is true. Unless you're going to sit there in every facility, forever, and actively track what's happening -- which isn't practical for any retailer we've met, no matter how big -- you simply have to find a better reason for suppliers to track and truthfully report what's going on than "because I say so." And that doesn't even address the fact that suppliers have lots of customers who all have their own elaborate set of disclosure requirements, or that factories have no idea how to measure many of the things they're asked to report. SSC: Your company, Efficiency Exchange, has developed software and services that aim to overcome these challenges. Can you explain the 3-4 most important elements that supplier factories should be looking for in sustainability programs and tools? NS: The number one thing factories should be looking for is something that helps their business. Manufacturing is a tough gig; it's not like these guys have huge margins they can afford to cut into an order to look good for potential customers. So the most important characteristic of any kind of factory facing tool is that it provides direct business value to that factory. Any investment that is going to provide that kind of value to a factory needs to be easy to use, and inexpensive not only to buy, but to operate, understand, implement, etc. In our experience, what's missing from every tool we've looked at is simplicity and clarity. There are lots of systems that are really powerful and complex, but they're usually designed to be all things to all people -- utilities, retailers, manufacturers- and anybody who could conceivably buy it, really. With any kind of typical enterprise software, you end up buying this incredibly expensive, super-capable system, and then a bunch of consulting services, training, and support on top of that.  (Then you have to) whittle it down and customize it into something that's actually useful to you. Factories don't have the time or money or expertise to deal with any of that. So any tool that's going to make sense at the factory level has to strip away all of that extra nonsense, and focus on being something that's lightweight, useful, and solves a problem right out of the box. That means it can't necessarily be all things to all people -- it has to be built specifically for factories that need help with this kind of stuff, and it has to provide that help in a really direct way. If you're a factory looking at any kind of sustainability or operational improvement tool, just stop and think about how the tool is going to affect what you do all day. Are you going to get a dashboard or a weekly report? What are you actually going to do with that? Are you going to print it out once a month and put it in a file cabinet? If so, that tool doesn't make sense for you. Anything that's going to be useful needs to go from login, all the way to the part where you're saving money, or getting new business, or removing some obstacle that slows down your growth. Everyone talks about intelligence versus just data, but "actionable intelligence" versus just intelligence is just as important of a distinction, especially for factories. Whatever tool you're investing in needs to take you from software to actually doing something inside your facility that helps your business. How is sustainability saving Chinese textile mills money? Read about it here!

Moving Beyond Cultural Competency to Equity Literacy

The SSC Team May 14, 2015 Tags: , , , , , , , , , Strategic Sustainability Consulting No comments
By: Alexandra Kueller Take a look at the people that make up your workplace. How diverse is the group? Are they inclusive people? How do they react when someone displays a certain bias? All of these aspects are important to any workplace, because not only can these signs be indicative of a business’s reputation, but it can also monitor the success of how well everyone within the organization works together. To help bring all of this to light, the Virginia Center for Inclusive Communities and Opportunity Lynchburg hosted a workshop to show examples of how to move beyond basic cultural competency in the workplace. By the end of the session, everyone walked out of the room equipped to help take their organization to the next level of equity literacy. It’s first important to note the difference in what separates cultural competence from equity literacy:
  • Cultural Competence – you are able to get along, understand, and interact with those from other cultures and socio-economic backgrounds; your actions are rooted within your best interest
  • Cultural Proficiency – you move beyond yourself and you have a deeper knowledge and grasp of those different cultures and backgrounds that surround you; your actions are not as self-serving
  • Equity Literacy – you dig below the surface to understand where the cultural differences stem from and take action to fix injustices; your actions indicate that you want to better the problem, because that is the right thing to do and not just for yourself
So how does one go from cultural competence to cultural proficiency to equity literacy in the workplace? Here are a few steps to help get you started in the right direction:
  1. Recognize biases and inequities as they come up; start to look for the ones that are subtle
  2. Respond to the biases and inequities when they are said; don't be afraid to point them out
  3. Redress the biases and inequities in the long term; acknowledge there is a problem and don't sweep it under the rug
  4. Create and Sustain a bias-free and equitable learning environment
Remember, this process takes time, and no one is going to achieve equity literacy overnight (as much as we would like to think that’s true…). Rather it’s a stepping stone to get you to the ultimate goal of equity literacy. Last fall SSC attended a workshop that focused on the business case for diversity. Read about it here.

Seven Questions to Focus Sustainability Leadership

The SSC Team May 12, 2015 Tags: , , , , , , , , , , , , Strategic Sustainability Consulting No comments
Enjoy this 2012 article written by SSC president Jennifer Woofter that was featured in Environmental Leader: Sustainability leadership is a challenging issue I’ve seen crop up in a variety of situations recently, including:
  • Lower-level employees on a volunteer green team, trying to steer their companies down a greener path
  • Newly appointed Chief Sustainability Officers (CSOs) charged with the momentous task of integrating sustainability into the C-Suite
  • Sustainability consultants that have buy-in from the client’s leadership, but are struggling to push it down into individual departments
In many cases, the people involved are facing a leadership crisis. And as a result they aren’t clear about their role, able to generate momentum, or equipped to get others on board. Sometimes they are spinning their wheels, other times they are bulldozing their colleagues. They might be all talk and no action, or “all action” without an overarching story to tie everything together into a larger mission.  The list of symptoms can be endless and exhausting. I was delighted, therefore, to come across, “7 Practical Questions That Will Multiply Your Influence.” David Dye, founder and President of Trailblaze, Inc., argues that the stuff of leadership, “has nothing to do with the title that comes after your name or power to force people to act. It has everything to do with what is in your heart.” Touchy-feely sentiment aside, his seven questions resonated with me from the perspective of the sustainability leadership crisis. I’ve listed them below, along with my thoughts on each question’s pertinence to sustainability leadership. I hope that it helps to spark something in all the current and future sustainability leaders out there!

1. What do you really want?

“In the middle of a leadership crisis, nothing provides clarity like this question. What do you want to happen as a result of your leadership in this situation? Sometimes you’ll find that you’ve been acting from an entirely different set of motivations than what it is you want deep down, where it matters.” For Sustainability Leaders: Sustainability is a cross-departmental, cross-functional, cross-issue, cross-stakeholder endeavor – and the truth is that you can’t please everyone all the time. Be clear about what YOU really want out of the “sustainability leader” role. Is it to radically transform the company? Inspire the CEO? Show up the CFO? Execute the plan and make your targets? Show that going green can be profitable? Use this position as a stepping stone to another job? Be clear, specific, and honest with yourself.

2. Do you know (and are you working out of) your values and personal mission?

“Self leadership begins when you know your own values and understand your purpose – what make your heart sing and come alive in the universe. When you work from this energy, it’s naturally attractive to like-minded team members and you motivate almost without knowing it. If you haven’t done this work, I strongly encourage you to find a coach or mentor who can help you explore what matters most.” For Sustainability Leaders: Think beyond sustainability for a minute: what makes you tick? Do you love to collaborate, and work best in a meeting or team environment? Or do you love to be alone in a room, running the numbers a dozen ways to figure out the best way to optimize a process? Are you a voracious reader who thrives on big ideas? Or are you an “on the ground” details player? Understanding your values, working style, and motivation will help clarify your leadership style.

3. Are you choosing problems or trying to avoid problems?

“Solving problems is central to meaningful leadership, but many leaders fall into a trap of trying to avoid problems. We don’t get to choose whether or not we’ll have problems … but often we DO get to choose which set of problems we’ll have. Effective leaders don’t spend time trying to avoid problems. Rather, they put their energy into working on the right set of problems – the ones that get them closer to their vision. For example: Do you want the discomfort of learning how to address poor performance or do you want the discomfort of a team with poor morale and worse results? Do you prefer the pain of changing your strategy or the pain of discovering your team is no longer relevant? Do you risk vulnerability and apologize for mistakes or do you avoid taking blame and lose credibility?” For Sustainability Leaders: This is a crucial lesson that we need to learn over and over. Because sustainability is a complex issue, we can tackle it through a variety of lenses – and thus choose our problem set. Do you prefer to focus on pushing a more radical sustainability strategy and risk making no substantive progress for months, or focus on smaller, incremental steps that may not really change “business as usual”? Do you want to risk C-suite ire by pushing for ground-up employee engagement, or risk alienating lower-level employees by pushing a top-down sustainability plan? Each choice has pros and cons, so be thoughtful about which problems you choose.

4. Do you really want things to get better?

“In question #1, you looked at what you really want, deep down. Now it’s time to look at the cost. If you’re going to change things, it’s going to include risk, discomfort, being misunderstood, sacrificing other goals, etc. Are you willing to accept the consequences of pursuing your vision? If not, you can’t possibly expect your team to come along with you.” For Sustainability Leaders: If you push for a radical sustainability agenda, you may find yourself stalemated (or worse, fired) for being too aggressive. If you move more slowly, you may look back in 10 years and realize you haven’t accomplished much. Either way there are consequences for your leadership style, both for yourself and for the organization you are leading. Can you identify the risks you face as a result of your sustainability leadership? Are they acceptable? If not, what do you need to change?

5. Are you working for your team or yourself?

“Time to take a hard look in the mirror … no one will truly know the answer to this one but you. When your decisions are in your heart and your head, before you’ve given them a voice … are you filtering them through what’s best for you or best for your team? Are you saying “I” … or “we”? It’s okay to include your own well-being in your decisions (you are one of the team after all!), but if your team isn’t at the core of your leadership decisions, your credibility will quickly erode.” For Sustainability Leaders: I’d expand this question to include: whose sustainability are you working for? Is it your own (including having a job that pays the mortgage), your organization (including being profitable and competitive), or the world (including a radical transformation of our economy and social structure to account for natural and social boundaries inherent in a sustainable system). These goals aren’t totally either/or, but there are often trade-offs that need to be considered. For example, a sustainability consultant needs to consider whether they are working themselves out of a job by helping companies set up sustainability programs. (I believe that there will always be a role for sustainability consultants, but that’s another article altogether.) Sometimes, pursuing a radical sustainability agenda will NOT be in the best interest of a company – rather, a more strategic, leading-but-not-sticking-your-neck-out-too-far approach is best. Be cognizant of the trade-offs of your sustainability leadership approach. You’ll need to be able to address them with your colleagues.

6. What can I do to bring about the results I want to see?

“I love this one: it moves us from victim to leader. When you find yourself frustrated at circumstances, upset that people “just don’t get it,” or discouraged that things didn’t go as you hoped, you’ve got a choice: Bemoan the unfairness of the universe (which inspires no one!). Or look at the situation and see where you can take action. Just asking the question completely reframes the situation and can transform a gloomy attitude in seconds.” For Sustainability Leaders: This is a great question when you find yourself in a stalemate, frustrated by your lack of sustainability progress, or thwarted by a system that doesn’t seem to be moving in step with your vision. Take a different approach and ask yourself: what three actions can I do today to move the ball forward? Maybe it’s scheduling a meeting with your boss to discuss revamping your task list. Maybe it’s buying the latest sustainability book to get inspired. Or maybe it’s taking a day off to recharge your batteries.

7. Are my people better off as a result of their time with me?

“This is what James Hunter calls “the ultimate leadership test.” If the answer is yes, keep going. If the answer is no, examine the reasons why. Do you need to improve your skills? Do you need to wrestle with some of the earlier questions on the list?” For Sustainability Leaders: Sustainability isn’t just about reducing your organization’s carbon footprint or finding more eco-friendly packaging. At the end of the day, sustainability leadership is about people: are they engaged? Do they share a common vision of what the future looks like? Can they see their own individual role in the journey? Your job as a sustainability leader is to help people say yes to sustainability. So, how are you doing? What does it take to be environmentally sustainable in the retail industry? Find out here!

Workplace Movement Toward Environmental Sustainability – Pt. 2

The SSC Team May 7, 2015 Tags: , , , , , , , , , , , , , Strategic Sustainability Consulting No comments
By: Alexandra Kueller Two weeks ago, we introduced the Retail Industry Leaders Association’s (RILA) brand new Retail Sustainability Management Maturity Matrix. The Matrix hopes to be a tool that will be used by sustainability executives, individual companies, and industry-wide. We also noted that while the Matrix is designed with the retail industry in mind, we think that is has a wide applicability beyond just the retail sector. Last week, we discussed the first three sectors that are featured in the Matrix. Today we are focusing on the final four of the seven sectors. Hoping to provide a more in-depth look at how RILA hopes to benchmark across the industry in terms of environmental sustainability, we are going to look at what it would take for a company to become a leader in that sector.

Retail Operations

Environmental sustainability extends to all aspects of a company, including their retail operations. Whether it is a store or corporate offices, a company should be putting in effort to make these areas as sustainable as possible, such as having facilities be LEED certified. Other ways to make your retail operations more "green" can include incorporating green standards for all new warehousing and participating in the ENERGY STAR program. The Retail Operations sector has three different dimensions:
  • Store/Corporate Offices
  • Warehouses/DCs
  • Data Center & Applications

Supply Chain

Supply chain sustainability might not be the first aspect of a company's sustainability plan to come to mind, but it is no less important than any other aspect. To be a leader in the retail industry when it comes to supply chain sustainability, a company must demonstrate the reduction of environmental impact through the optimization of transportation, work closely with suppliers to help improve their sustainability metrics, and be more transparent when it comes to audit statistics (e.g., percent of non-compliant factories). The Supply Chain sector has three different dimensions:
  • Transportation/Logistics
  • Supplier Engagement
  • Supply Chain Transparency & Traceability

Products

When someone thinks of a retail organization and sustainability, often times their first thought is "how sustainable is the product?" RILA recognizes that product sustainability is a key component in a company's overall environmental sustainability and offers some suggestions on how to be a leader when it comes to making a company's product more sustainable. Some examples are using renewable energy sources during manufacturing, offering take-back services, and designing products with a "cradle to cradle" outlook. The Products sector has three different dimensions:
  • Product & Packaging Design and Development
  • Owned Manufacturing/Production
  • Product & Packaging End-Of-Life Stewardship

Environmental Issues

And finally, true environmental sustainability cannot happen if a company does not focus on the environmental issues at hand. How a company addresses these issues - energy, waste, recycling, etc. - in the context of the retail sector is telling, and some industry leaders are already paving the way. Some of these companies are implementing leading waste technologies and policies, establishing green chemistry programs that helps reduce toxins, recycling and reusing water, using alternative energies, and more. The Environmental Issues sector has four different dimensions:
  • Energy & GHG Emissions
  • Water & Wastewater
  • Waste & Recycling
  • Chemical & Toxics
Last fall we attended the annual RILA Sustainability Conference. Read about some of our thoughts on the conference here.

Five of the Best Sustainable Packaging Resources

The SSC Team May 5, 2015 Tags: , , Strategic Sustainability Consulting No comments
Enjoy this blog post from the SSC archives: There is a TON of really annoying packaging getting in the way of sustainability. (And here is a list of 12 great examples, just in case you needed a refresher.) To combat the problem, we're rounding up a list of our favorite smart packaging resources:

1. Consumer Goods Forum

In November 2011, the Consumer Goods Forum (CGF) released its, “Global Protocol on Packaging Sustainability (GPPS).” The 74-page guide on packaging sustainability not only aims to help companies reduce their carbon footprint but also serves as a step in the right direction to increase efficiency and effective communication by creating a common language that consists of a framework and a measurement system. (Read our complete review here.)

2. "Cut the Wrap!" White Paper

Cut the Wrap! Packaging Waste and Strategies for Mitigation and Reduction” is one of our most popular white papers, and for good reason.  Packaging waste is an issue that affects almost all businesses, from food and beverage to electronics. Unfortunately most of the materials used in packaging is discarded in ever-growing landfills or burnt, causing severe pollution. This paper explores the various ways businesses can reduce or even eliminate their packaging waste, make smarter and more sustainable packaging choices, and utilize packaging alternatives.

3. Sustainable Packaging Coalition

The Sustainable Packaging Coalition (SPC) is an industry working group dedicated to a more robust environmental vision for packaging. Through strong member support, an informed and science-based approach, supply chain collaborations and continuous outreach, SPC endeavors to build packaging systems that encourage economic prosperity and a sustainable flow of materials.  The SPC makes available a broad range of publications and resources to further the vision and ever-evolving implementation of sustainable packaging.

4. COMPASS

COMPASS (Comparative Packaging Assessment) is online design software that allows packaging designers and engineers to assess the human and environmental impacts of their package designs using a life cycle approach. COMPASS helps packaging designers make more informed material selections and design decisions by providing quick visual guidance on a common set of environmental indicators.  COMPASS provides consistently modeled data sets for USA, Canada and Europe as well as tailored for materials and processes used for packaging to allow reliable apples-to-apples comparisons of multiple scenarios. In addition, regionalized solid waste modeling provides a waste profile of each scenario to help understand the end-of-life (EoL) implications of packaging designs.

5. “Balance: Efficiency or Sustainability?

This article by Katherine O’Dea is a great article on the current "sustainable packaging" debate. "A couple of weeks ago, PricewaterhouseCoopers (PwC) released a report titled, “Sustainable Packaging, Myth or Reality.” It seems, however, the report doesn’t really debate the myth or reality question, but jumps right to the conclusion that “sustainable packaging is dead” and is being replaced by “efficient packaging.” How fortunate that would be for the “business as usual” crowd if it were true. But, having worked in the sustainability field for 20 years with a good deal of focus on sustainability in packaging for the past five years, I think PwC got it wrong." (Read the whole article here.) What are some of your favorite sustainable packaging resources? Leave a comment or join the conversation with SSC President Jennifer Woofter on Twitter (@jenniferwoofter).