Consumer Goods Technology - July 2008 - (Page 26)

BETWEEN THE LINES BY LORI CASTLE GREEN INITIATIVES W H Y A D O P T I O N I S S O I M P O R TA N T I N T H E CONSUMER GOODS MARKET “Green” is perhaps the buzz word of the year, and though incorrectly touted by some, the majority of consumer goods companies are serious about sustainability, dedicating resources and setting goals to their initiatives. For perspective on what the industry is doing, CGT spoke with Robert Byrne, president and CEO of Terra Technology, who last year spoke at the United Nations Conference on how demanddriven planning can reduce waste and slow climate change. 250 million metric tons of carbon dioxide. According to the Environmental Protection Agency (EPA), transportation in the United States accounts for approximately 33 percent of total greenhouse gas emissions from fossil fuel consumption. Reducing unnecessary transportation of goods has an immediate impact on greenhouse emissions and, with ever-increasing fuel prices, an immediate impact on corporate profits. Are there benefits to “green” projects other than being a good corporate citizen? B Y R N E : Patrick Penfield, assistant professor of supply chain management at Syracuse University, once said, “One of the major reasons why companies are interested in the green supply chain and sustainability is that they realize [carbon and energy waste] is an expense; if you really look underneath it, it’s about cost savings. It’s not about saving the environment.” Why is it important for consumer products companies to adopt This quote may sound somewhat cynical, but it is quite imporgreen initiatives? tant to know that it is true. Only through higher efficiency and B Y R N E : There are three main reasons: reduction of environlower costs can we maintain our standard of living while reducmental impact, meeting consumer preferences and reducing ing our environmental impact. Plus, public companies have a ROBERT costs. Some of the environmental impacts are summarized below: BYRNE, fiduciary responsibility to their shareholders, and spending sigIn the United States, manufacturing is the single largest President nificant sums on unprofitable projects is not a recipe for sucsource of energy-related carbon dioxide emissions in the indus- and CEO, cess. The Procter & Gamble Company’s goal is to improve its Terra products with “no trade-offs” for the consumer — so that means trial sector, accounting for about 84 percent of energy-related Technology product performance that is at least equal to current products carbon dioxide emissions and 24 percent of the total producbut more environmentally friendly. tion of carbon dioxide. U.S. manufacturing consumed 90 percent of the energy in the industrial sector in 2002. With $1.9 trillion What is the first step a consumer goods manufacturer should take to dollars of business inventory in the United States, there is plenty of begin a green initiative? opportunity to reduce production and associated costs and impacts. B Y R N E : There are many types of environmental impacts and even Motor carriers represent 48 percent of total logistics costs in 2006 and more potential initiatives to address them. Reduce, reuse, recycle, in consumed 95 billion liters of diesel fuel that year, creating more than | J U LY 2 0 0 8 | W W W. C O N S U M E R G O O D S . C O M 26 CONSUMER GOODS TECHNOLOGY http://whitman.syr.edu/Directory/ShowInfo.aspx?id=166 http://www.terratechnology.com http://www.pg.com 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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