1. Sustainability - Empowering the
Consumer to Make Informed Decisions
Sven Ruyinx
Accenture Malaysia Supply Chain Lead
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Executive Summary / Agenda
• Sustainability remains a hot consumer topic around the world, and increasingly
in Asia
• Consumers continue to be concerned with sustainability and are prepared to
switch products for environmental benefits
• Regulatory bodies have developed multiple standards to inform consumers and
industry has begun product labelling
• Consumers still do not feel sufficiently empowered to make informed decisions
• Industry’s approach to sustainability continues to evolve to help consumers
understand how “use” of a product impacts environment
• We must adopt an “and model” across Regulatory bodies, Manufacturers and
Consumers…driving Product Innovation and changing consumer behaviour
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2. Retail Consumer are the driving force
Consumers continue to be concerned with sustainability and are prepared to
switch products...if convinced of the environmental benefits
Consumers’ concern over climate There is a readiness to switch suppliers if
change has been consistently high for environmental benefits are certified by a
a number of years trustworthy source
“Are you concerned by climate change?” “If a product was certified by an independent organization…
would you be willing to switch to this product?”
Yes, extremely
38% 40% Yes, probably
concerned
Yes, somewhat
concerned
9%
No, probably not
34%
No, not very concerned 1%
11% 12% Yes, certainly No, certainly not
No, not at all concerned 3% 3%
2008 2007
Survey Survey
Source: Accenture End-Consumer Observatory on Climate Change
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Regulatory bodies are prevalent
Regulatory bodies have developed standards to inform consumers and
industry has begun labelling their products accordingly
Environmental and Social
Responsibility Standards
• Standards now cover a host of environmental issues
Carbon Standards • Not all issues are covered by recognised standards
• Existing standards are often not universal or
recognised by consumers
PAS 2050
ISO 14067
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3. Consumer “Trust” still needs
to be won
Consumers still do not feel sufficiently empowered to make informed
decisions…and trust of data is critical
“Do you understand how to personally combat the “What information do you trust the most to inform
effects of climate change?” you on…climate change?”
Academic/ Scientific 6% 44% High
associations
Yes 51%
Nongovernmental
7% 34%
organizations
Trust
Internet 7% 20%
Governmental
23% 15%
organizations
No 49%
Manufacturers 25% 9% Low
Never trust Sometimes trust Always trust
Source: Accenture End-Consumer Observatory on Climate Change
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Manufacturers focus is evolving
In order to provide consumers with information they believe and can act upon,
we are seeing industry’s approach to sustainability continue to evolve
Evolution of corporate approach to carbon emissions
1990 2000 2010 2020
Consignment Footprint
Corporate Footprint Consumer Footprint
•Carbon emissions associated with
•Corporate electricity saving individual consumer purchases determined •Product emissions put into context of
initiatives overall lifecycle (manufacture, distribution,
•Improved product labeling & accreditation
•Paper recycling from independent bodies usage and disposal)
•Transportation review •R&D effort to improve e2e sustainability
As consumers become more knowledgeable they are likely to ask two key questions:
•How can I alter my use of a product to reduce my environmental impact?
•Which products are most ecologically sound across the whole of their lifecycle?
Consumer Footprinting seeks to answer these questions…
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4. Consumer usage and
life cycle impacts
Understand what happens after the product is sold…is as important as
understanding the manufacturing and supply chain impact.
Visibility of a detergent’s carbon footprint only Only 5% of the emissions from preparing a cup
gives the consumer 18% story of team are caused by the tea bag
1.2% - Distribution and storage
Raw materials used to Production and distribution
of detergent 0.2% - Production and distribution
manufacture detergent of tea
of drinking water
Washing tea cup
17% 5% 5%
32% 57%
82%
Boiling water
Use of washing
machine & disposal Production and
of container distribution of milk
Source: carbon-label.com Source: guardian.co.uk & earth.org.uk
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Working together
Industry, Regulatory bodies and Consumers must work together to achieve
rapid and sustain benefits
• Drive product R&D - find innovative ways to reduce total life cycle
environmental impact
• Standardize reporting across the globe and provide trusted information to
the consumer
• Improve labelling to ensure consumers have access to consistent and
comprehensive information
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5. Questions and Answers
Thank you for your time…
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