Consumer Goods Technology - July 2008 - (Page 20)

CUSTOM RESEARCH BY KARA ROMANOW SUSTAINABILITY, PART 2 M AT U R I N G I N I T I AT I V E S W I T H B I G P L A N S F O R F U T U R E As this month’s entire “green” issue attests to, sustainability is a top of mind issue for most consumer goods (CG) companies. Last month, we partnered with Deloitte Consulting for Part 1 of this two-part series, “Sustainability: It’s Getting Easier to Be Green,” and took a look at what was driving these initiatives. This month, we dive down to the next level of detail to understand the specifics of such programs. What we found wasn’t surprising: Most companies are just developing strategies but plan to significantly increase sustainable product offerings in the near future. S TAT U S While some companies have been focused on sustainability for years, many CG manufacturers are just starting the journey. Because being green touches so many aspects of an enterprise, from supply chain to product development to manufacturing and office environments, it can be quite a daunting task. What we found, however, was a continuum of maturity with varying governance models (see Figure 1). While few companies have dedicated staff, many have cross-functional or regional teams in the functional stage. While only 20 percent of respondents have a mature sustainability management program in place, more than 50 percent are in the development or early stages of a formal process. Even more promising is that only 10 percent reported no progress at all on such a program. It’s interesting to note, however, that the larger companies are reporting slightly ahead of their SMB peers, despite the vocal minority of small companies who have fully embraced sustainable practices. CONSUMER GOODS TECHNOLOGY | J U LY 2 0 0 8 | We also took a look at how companies are prioritizing the various areas of sustainability. We found that 53 percent ranked energy conservation and the use of alternative energy as a top priority, with other internal or manufacturing related processes, like waste reduction and recycling, close behind. Reduction in packaging was the next goal after energy with 45 percent ranking it as the top priority and no respondent ranking it as not a priority. Ironically, sustainable agriculture (including organic foods and livestock care) was reported as not a priority by 53 percent of our respondents, even amongst the majority of food companies participating. O N LY 1 9 % O F O U R R E S P O N D E N T ’ S R E P O R T T H E M A J O R I T Y O F T H E I R P RO D U C T O F F E R I N G S A S S U S TA I N A B L E , C O M PA R E D T O T H E PLANNED 38% IN THREE YEARS. Metrics, however, are lagging, but we can assume that formal measurements of sustainability performance will catch up once more programs mature. Only 3 percent of our respondents have reporting metrics and scorecards in place with updates to key stakeholders, and almost one-third have no plans in place at all. Of those that are in the early stages of collecting metrics to measure the impact or success of their sustainability programs, 63 percent are tracking energy conservation or alternative energy use, 60 percent are tracking waste reduction, and over half are tracking water conservation, recycling and packaging reduction. Collaborative tools to share green data with suppliers and customers are also lagging, with the majority of respondents defining goals or 20 W W W. C O N S U M E R G O O D S . C O M http://www.deloitte.com http://www.edgellcommunications.com/main/thankyou.php?_id=397 http://WWW.CONSUMERGOODS.COM

Table of Contents Feed for the Digital Edition of Consumer Goods Technology - July 2008

Consumer Goods Technology - July 2008 Contents Edit Note Insights Special Report Catching Up With... Energy-Minded Efficiency Waste to Wonder Greater Good Natural Business Built to Last Setting Sustainable Goals Sustainability, Part 2 CGT Events Between the Lines

Consumer Goods Technology - July 2008

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