Canadian Retailer - Fall 2014 - 13

BEINg 'green' shouldn't be viewed as a bu-

rden-nor is it. For many of Canada's leading
retailers, in addition to their obvious positive environmental impact, green initiatives
present significant opportunities for retailers.
To gain market share by attracting and retaining high-value online green customers, to create brand advocates, and to drive innovation
More than ever before, realizing sustainable
business practices is recognized as a key objective amongst progressive retail business
enterprises. What is it that drives leading companies to implement green practices? What results do they expect to achieve by following a
sustainable path?
To answer these important questions we
must begin with an understanding of what we
mean by the terms 'green' and 'sustainability'.
"When we speak of 'green' and 'sustainable'
we're using loose terms that include not only
environmental but social benefits. It's not just
whether a store is into recycling or uses LED
lighting, but reaches all the way back through
the supply chain to ensure that goods are
sourced as responsibly as possible. What is
the source of a textile's fabric, and what are the
conditions under which workers manufacture
it?" states Larry Berglund, Principal at Presentations Plus Training and Consulting Inc., one
of Canada's foremost experts on Green Supply
Chain Management. "H+M, for example, goes
all the way back through its supply chain to
ensure both economic sustainability and to
effect change in the industry by not sourcing
fibres from endangered forests in Southeast
Asia-trees are a renewable resource, but not if
harvested from a threatened habitat."
The primary sustainability challenge that
retailers face, notes Berglund, relates to consumption-natural resources, energy, water,
and waste-in every aspect of their operations,
including product development, sourcing and
supply chain management, distribution, and
corporate logistics.

Green for Green

41%

44%

of consumers have purchased a product or service
because they knew that the
company is committed to
positive social and environmental impact

of consumers are
willing to pay extra for
products and services from companies
committed to positive
social and environmental impact

Nielsen global study

According to Wendy Evans, President and
founder of Evans and Company Consultants
Inc., interest in green products is rising rapidly,
and tends to be among segments of the consumer population that are of particular interest to retailers. "Those who we would label as
'green' consumers can be divided into a few
segments," she explains. "One includes those
who are acutely aware. They are very cognizant
of labeling, package waste, organic foods, and
so on. This group tends to be mothers who do a
lot of a family's purchasing. Another interested
group includes university kids who have been
brought up in a more aware and sustainable
lifestyle. They aren't bound by brand loyalty as
previous generations might have been and vote
with their wallet by purchasing from stores that
align with their views. The final segment is very
well off and can afford to be environmentally
sustainable. They are typically the kind who invests in geo-thermal energy, solar panels, and
other ways to ensure a sustainable lifestyle."

Nielsen global study found that consumers are more likely to buy from companies that:

53

%

Provide access
to clean water

www.retailcouncil.org/cdnretailer

50

%

Work to
eradicate
poverty and
hunger

49%

Try to combat
diseases

fall 2014 | cANADIAN REtAILER

| 13
http://www.retailcouncil.org/cdnretailer
Canadian Retailer - Fall 2014

Table of Contents for the Digital Edition of Canadian Retailer - Fall 2014
