3. AT A GLANCE
Retail companies’ sustainability programs are
following a continuous development curve. They
begin by developing programs and practices,
implementing strategies and technologies, and
collaborating internally and externally. These
activities uncover significant business benefits
that fuel further investment in turn. As the retail
sustainability field evolves, a class of top
performers has emerged—those companies that
have defined the development curve for the
industry by embracing the full breadth of
sustainability activities, thereby achieving an
equally wide breadth of benefits.
The respondents to the survey that forms the
basis of this report are retail companies
representing more than 65,000 locations and
$1 trillion in global revenue.
3
4. Letter from the Retail Industry Leaders
Association
On behalf of the Retail Industry Leaders Association (RILA) and our member companies, we are proud to present
RILA’s second Retail Sustainability Report. For the past six years, RILA has provided resources to empower,
enhance, and accelerate sustainability activities in the retail industry; research like this report is a cornerstone of
our efforts, and is intended to help companies understand how they compare to others in the industry and where
there are opportunities for improvement.
The objective of this report is only to act as a snapshot of the industry’s sustainability programs. Between the
publication of our first Retail Sustainability Report in January, 2012 and the publication of this report, we have
found that the industry is continuing to drive progress and increase accountability on the most critical issues. Also,
through this report, we want to bring to your attention the significant business benefits retailers have achieved
from their sustainability endeavors, ranging from improved employee loyalty to decreased costs to more resilient
supply chains. As you will see illustrated in the subsequent chapters, these benefits are fueling the continued
development of sustainability programs over time. However, program development does not come without
challenge.
Please use this report to understand the core components of a sustainability program, as well as the innovative
strategies retailers are pursuing. We will continue to publish this report in future years to show how the industry is
progressing on key sustainability indicators.
Sandy Kennedy Deborah White Adam Siegel
President Executive Vice President and Vice President,
General Counsel Sustainability and
Retail Operations
4
5. Report Contents
6 About the Retail Industry Leaders Association
7 About This Report
8 Executive Summary: Fueling Continuous Development
11 Managing Sustainability
12 Team and Organizational Structures
16 Investing and Benefiting
19 Prioritizing and Planning
23 Measuring and Reporting
26 Implementing Sustainability
27 Building Operations
31 Supply Chain Operations
35 Stakeholder Engagement
40 Conclusion
41 Appendix: Member Survey
5
6. About the Retail Industry Leaders Association
The Retail Industry Leaders Association (RILA) is the trade association for the world’s largest and most innovative
retail companies. RILA members include more than 200 retailers, product manufacturers, and service suppliers,
which together account for more than $1.5 trillion in annual sales, millions of American jobs, and more than
100,000 stores, manufacturing facilities, and distribution centers domestically and abroad.
The retail industry is proud of its accomplishments and excited to continue to evolve sustainability programs that
drive business value, consumer and employee loyalty, and support a healthier planet. And RILA is excited to
continue to convene the industry’s leaders and advance the practices and breadth of business benefits of retail
sustainability programs.
RILA’s Retail Sustainability Initiative (RSI) focuses on five topics key to successful retail programs:
1. Energy and greenhouse gas emissions
2. Waste and recycling
3. Products and supply chains
4. Environmental compliance
5. Communicating, reporting, and engaging
RSI engages retail sustainability executives to share best practices, develop new processes, and communicate
their efforts to the industry’s most crucial stakeholders. RILA uses its annual conference, benchmark studies,
collaborative partnerships, and research on behalf of retail sustainability interests to achieve the objectives set by
the five sustainability topics listed above.
6
7. About this Report
RILA’s first sustainability report, the 2012 Retail Sustainability Report, highlighted the major trends and best
practices within the industry in a case-study format. The report educated the industry’s stakeholders about its
sustainability achievements, goals, and challenges by highlighting the specific sustainability activities retailers are
pursuing. The report found that environmental and social considerations are beginning to supplement traditional
measures of competition, including price, service, and quality. We encourage you to reread the 2012 report to
learn more about how these trends are influencing the industry’s direction.
As we reflected on the 2012 report and brainstormed about opportunities for improvement, we determined that it
was important to update this year’s report format to provide a RILA-wide snapshot. The current report effectively
portrays a detailed view of the industry’s adoption of sustainability programs. Specifically, we asked the largest
retail companies about the indicators they use to assess the depth and breadth of their sustainability programs.
Equally important to establishing this baseline, we will update this view over time to see how the industry
progresses in the coming years. Will the industry’s efforts continue to accelerate? Will sustainability become
integrated into functions across the retail organization or remain a separate and distinct role? Will the scope of
sustainability focus areas continue to grow, or will companies hone their attention? This updated report format will
allow us to answer these questions over time.
We also recognize that it is important to show current trends. Where possible, we asked retailers about where
they see their company’s sustainability efforts progressing over the next two years. While we cannot definitively
state that the industry will follow these projections, the trends provide a view of one potential future.
SOURCES OF INFORMATION
This report was developed through two sources: a survey and in-depth interviews. The survey, which can be
found in the Appendix, was disseminated in July of 2012; 35 RILA member retailers responded, representing
more than 65,000 locations and $1 trillion in global revenue. Ten RILA member companies were interviewed and
eight companies served as report advisors.
ERNST & YOUNG INVOLVEMENT
RILA is extremely pleased that Ernst & Young LLP (www.ey.com/climatechange), a global leader in assurance,
tax, and advisory services, supported this RILA effort. Ernst & Young, an organization that is well recognized for
its sustainability leadership, provided RILA with financial and advisory support for the conceptualization and
development of the 2013 Retail Sustainability Report.
7
8. Executive Summary:
Fueling Continuous Development
While developing this report, we listened to the stories, followed the funding, and analyzed the conversations that
have led to the development and subsequent growth of company sustainability programs. From that research, we
recognized that once a company kicks off a sustainability program, the program tends to grow and thrive, even in
the midst of an economic recession. ―Why?‖ we wondered. Inquiring further, we realized that, while sustainability
programs are initiated in any number of ways, their development and growth hinge on the same key elements as
any other business program. As a sustainability program matures within an organization, its business benefits
become increasingly apparent, and the business applies more funding and resources to it. We also found that a
class of top-performing companies that best exhibits this growth dynamic has emerged in the retail industry.
PROGRAM GROWTH BEGETS FURTHER GROWTH
Implementing systems that promote the expansion of resources, activities, expertise, and benefits of a particular
initiative over time can fuel continuous development. In sustainability, we see that companies who kick off
continuous development processes are growing, not only the amount and breadth of their sustainability-related
activities, but also the business benefits of those activities.
Once an organization overcomes any static friction and forms a sustainability program, success stories within the
organization further solidify the business case for sustainability, and executives take note. With proof of concept
established and the business case validated, senior management warms up to a broader range of potential
activities. Increased confidence and commitment expands the program’s resources and allows the scope of
sustainability efforts to broaden.
SUCCESSFUL PROGRAMS FEED THE GROWTH DYNAMIC
We also recognized that the same ingredients are necessary for a
sustainability program to be successful as for any other business
initiative. In particular, five characteristics allow a retailer to effectively
Breadth of benefits
initiate, fuel, and accelerate sustainability programs:
1. Executive engagement. Top executives control a
company’s purse strings and make strategic investment
decisions. When they recognize that sustainability is not
necessarily a cost center but rather drives strategic growth
and innovation, there is potential to free up resources and All
integrate sustainability priorities into the overall business Top
strategy.
Amount of activities
2. Investment in people and systems. Ultimately it is up to people to develop, lead, and execute any new
business process. A team focused on orchestrating sustainability efforts across an organization can, in
turn, educate and train employees in other functional roles about the importance of sustainability in their
8
9. decision making. Similarly, organizations can use investments in information technology such as
environmental management systems (EMSs), reporting platforms, decision tools, and financial calculators
to integrate sustainability planning broadly.
3. Measurement and tracking. The business adage ―what gets measured gets managed‖ is as true for
sustainability as for any other effort. Setting metrics, developing a baseline, and implementing systems to
periodically track and report makes a program accountable its progress. Measurement and tracking also
provide the mechanisms necessary for the company to set goals and tell stories about their efforts.
4. Goal setting. Setting goals is an integral part of a company’s business and sustainability strategies
because the process of goal setting gains buy-in and alignment throughout the organization. To achieve
their goals, retailers must develop strategies to engage both internal functional teams who make the
business decisions and external stakeholders who provide resources, guidance, and services. Also,
announcing goals internally and externally demonstrates a company’s commitment to sustainability.
5. Storytelling. Employees of any business constantly tell stories of all kinds—from the informal anecdote at
the water cooler to those conveyed through boardroom meetings and financial reporting. Stories are a
crucial way for ideas, practices, and results to be shared across the enterprise, and they are a component
of every company’s decision-making process. Showcasing sustainability opportunities and success
stories through a variety of channels creates an exciting buzz that promotes broader awareness of
activities and shared understanding of how sustainability relates to business objectives.
Properly told, stories can convey the business case for programs or projects that help executives to
prioritize sustainability as a key strategy and provide the impetus for additional investment. But
storytelling should not be confined to those stories told within the company; creatively discussing
company achievements related to sustainability can engage consumers and other stakeholders, driving
consumer loyalty, brand enhancement, access to additional expertise and resources, and more.
Each of these strategies can generate new ideas related to, interest in, and investment for sustainability.
A CLASS OF TOP PERFORMERS IS EMERGING
While developing this report, we recognized that a variety of practices defined a class of top-performing
companies. These top performers are active in a wide range of sustainability-related programs—from facility
efficiency to supply chain optimization to stakeholder engagement—and achieve greater-than-average benefits.
We identified top-performing retailers as those companies who are focusing on a wide breadth of sustainability
issues. Of all the companies we surveyed, eight retailers indicated that they include more than three-quarters of
the facilities, employees, product and supply chains, and stakeholder engagement issues listed below in their
sustainability strategies.
Facilities. What are you working on? Employees. What are you working on?
Energy usage Store employee engagement
Greenhouse gas emissions Senior management engagement
Water usage Health and safety practices
Waste and recycling Diversity programs
Green buildings (i.e. LEED, EPA EnergyStar) Ethics and governance (i.e. board oversight of
Land use and development sustainability, company ethics policy)
High-efficiency lighting
HVAC retrofitting
9
10. Stakeholder engagement. What are you working on? Product and supply chain. What are you working on?
Consumer education Measuring life cycle impacts
Engaging suppliers Product design
Nonprofit / NGO engagement Materials, including chemicals of concern
Community engagement Packaging design
Philanthropic donations Manufacturing human rights impacts
Investor relations Manufacturing environmental impacts
Government affairs Sourcing locations (geographic)
Transportation and logistics
Product take-back
Product use and disposal
Plastic bag usage / reduction
Business model innovation
In particular, top-performing companies vary from other retailers in the following ways:
Top-performing companies have sustainability teams that are led by a vice president or someone in a
higher position and average nine team members in size. The teams’ primary roles are to orchestrate internal
efforts, communicate with outside stakeholders, develop strategies, and interact with senior managers. And to do
so, they have set up working relationships across the organization, focusing on public and government relations,
the supply chain, merchandising, facilities, real estate, and construction.
Top-performing companies focus on a wide variety of facility, product lifecycle, and stakeholder management
issues. Facility improvements include waste, energy, green-building design, greenhouse gas emissions, and land
use. Product lifecycle improvements focus on transportation, materials, packaging design, and product take-back.
With regard to these issues, the sustainability team manages the development of a company’s strategy and goals,
with input from across the organization, and typically plans their efforts with a five-year strategic horizon.
As the sustainability team’s scope of responsibilities and breadth of benefits expand, top-performing companies
are increasing their team’s budget. They see a vast array of benefits from their activities, including reducing
costs, managing risks, staying ahead of regulations, and increasing revenues and profits. Risk
management activities—a crucial function for the success of any retail brand—include managing reputational
risks, energy and fuel dependencies, human rights risks in the supply chain, and commodity price fluctuations.
To track and report on their performance, top-performing companies measure their energy, material, plastic
bag, and fuel usage; waste generation; greenhouse gas emissions; and supplier code of conduct
compliance. They communicate through many channels, including their corporate website, intranet site, social
media, store signage, the Carbon Disclosure Project (CDP), and a sustainability report, which is assured
internally.
10
12. Team and
Organizational
Structures
A sustainability team is the lifeblood of a
sustainability program. Teams orchestrate
the development of strategies, action plans,
and implementation efforts by working with
a diverse group, both internal and external
to the company. Creating a multidisciplinary
team that focuses on sustainability
performance improvement is the first step
on a path to success within an organization.
KEY FINDINGS
Most companies have full-time
sustainability teams. Teams are
growing, and reporting levels are gaining
seniority.
Sustainability teams mainly use their
time to orchestrate internal efforts and
develop strategies.
No single department stands out as
being the champion of retail
sustainability; instead each company
places their team where it can be
most effective.
The sustainability team either manages
or has strong alignment with both the
environmental regulatory compliance
and social compliance functions.
12
13. WHILE TEAMS GROW, SENIORITY RISES least one-third of working hours. Complying with
federal regulations, interacting with senior
Of retailers surveyed, nearly two-thirds of companies
management, reviewing environmental metrics, and
have full-time staff dedicated to sustainability. Sixty
researching best practices collectively make up
percent of companies have part-time staff dedicated
another third. While teams are reporting that they
to particular aspects of sustainability.
spend less time interacting with suppliers,
respondents say that supplier engagement will
Figure 1. How is the sustainability staff structured within your
company? become more important over the next five years.
% of top
0% 20% 40% 60%
performers Figure 4. What percentage of your time is spent on each activity
throughout the year?
Full- and part-time…
Full and part-time 57
Full-time staff only % of top
29 0% 10% 20% 30%
performers
Part-time staff only 14 Orchestrating…
Orchestrating internally 22
No sustainabilitypart-…
No full- or staff 0 Developing strategy 12
Federal compliance
Complying with… 2
Of the retailers with staff, the full-time team grew on Engaging executives
12
average from a little less than three to nearly five Complying with…
Complying with local law
3
people between 2009 and 2012. Stakeholder…
Stakeholders comms
Researching… 13
Researching trends
Reviewing metrics 8
Figure 2. How many staff members does your company devote to
sustainability? Interacting with…
Engaging suppliers 8
Staff of top Creating public…
Creating public reports 5
0 2 4 6 8
performers Completing surveys 4
2012
Full-time 8.9 Creating internal…
Creating internal reports 6
2011
2010
Part-time 10.8
2009 REPORTING STRUCTURE VARIES
As teams grow, so too does the highest reporting The sustainability team does not typically report to
level of the team manager. Since 2009, 40 percent any single department within retail companies;
of sustainability teams gained new director positions, instead the reporting structure varies based on a
and 29 percent gained new vice president positions. number of factors. The company’s culture, the
As sustainability executives rise in seniority, they department with the biggest opportunity for impact,
hold more influence and receive greater attention and the existing resources and enthusiasm all factor
within the company. into the team’s location. For example, a retailer that
is primarily focused on supplier engagement may
Figure 3. What is the title of the top full-time sustainability leader select the sourcing department as the sustainability
at your company?
lead, while a company focused on energy efficiency
% of top
0% 25% 50% in its buildings will choose the real estate or facilities
performers
team to lead its sustainability efforts.
EVP / SVP 20
Vice president 60 Through our survey’s ―Other‖ option, some retail
2012
Senior director 2011 20 sustainability teams indicated that they report
2010 directly to executive management, whether the
Senior manager 2009 0
CEO, president, or another top executive. We intend
to solicit this information through the survey more
TEAMS USE THEIR TIME FOR MANY TASKS directly in the future.
All sustainability functions share common tasks.
Together, orchestrating internal efforts and
developing a sustainability strategy account for at
13
14. Figure 5. To what department does the sustainability leader at developed voluntary compliance to maintain proper
your company directly report?
working conditions and human rights throughout the
% of top
0% 25% 50% entire supply chain, from raw material sourcing to
performers
the manufacturing process. Sustainability teams
Public Relations 25
Human Resources interact with key internal departments to ensure that
13
Legal 0
environmental and social compliance programs
Marketing 13
meet the expectations of all stakeholders.
Facilities / Real/Estate
Facilities Real… 0
Merchandising 0 In retail, environmental compliance considerations
Supply Chain 13 mainly center on regulations from the U.S.
Other 38 Environmental Protection Agency and Department of
Transportation, and state and local jurisdictions.
RESPONSIBILITIES ARE BROADENING Specific issues include facility construction and
maintenance like stormwater runoff, employee
Expanding a sustainability team also increases its
health and safety practices, and hazardous product
breadth of responsibility and interaction within the
transportation and waste management.
company. The two most common functions of
sustainability teams are strategic planning and
Retailers’ environmental compliance programs are
tactical implementation of sustainability programs.
managed between sustainability and environmental
To guide the strategic direction of their sustainability
compliance operations, with half of companies
programs, teams strategize, set goals, and report on
holding both operations in the same department and
sustainability initiatives, all while working to engage
the other half in separate departments.
both the company’s employees and external
stakeholders. This tactical strategy extends to Figure 6. How strong is the alignment between your sustainability
recycling operations, energy management, and environmental compliance functions?
greenhouse gas reduction, and compliance with % of top
0% 20% 40%
environmental regulations. performers
Same department 0
Specific initiatives vary greatly among retailers. Each Weak alignment 43
company continuously defines and refines its focus Strong alignment 29
No env. compliance 29
on issues material to its business. For example,
while grocers may focus on sustainable seafood
sourcing, apparel merchandisers find addressing the Of those retailers with environmental compliance in
working conditions of their manufacturers’ a separate department from sustainability, the
employees more relevant. Often public awareness environmental compliance team is most often
and policy guide these emphases, such as housed under loss prevention, asset protection,
electronics retailers who find themselves legal, or environmental health and safety. The
increasingly invested in growing e-waste recycling teams, while reporting to separate locations within
options. However, almost all retailers are uniformly the organization, frequently coordinate for updates
responsive to such issues as legislation surrounding and strategy alignment. Two of every three retailers
plastic bags since bag taxes or bans directly impact have an environmental compliance team that is
a fairly ubiquitous feature of retail shopping. deeply aligned with the company’s sustainability
initiatives.
COMPLIANCE IS THE FOUNDATION OF
While compliance is a familiar focus area for
A SUSTAINABILITY PROGRAM
retailers, important new issues are always emerging.
The retail industry places significant priority on Increased awareness of chemicals of concern, as
compliance with both regulatory requirements for well as more comprehensive product safety and risk
environment, health, and safety, as well as industry- mitigation, has led to an even broader emphasis on
14
15. regulatory compliance for those who sell products focus their ethical sourcing efforts on their private-
with hazardous properties. These teams are label products.
responsible for ensuring that all products posing any
risk are in compliance with appropriate laws. Over the past few decades, companies have
continued to develop new strategies to educate,
Social compliance or ethical sourcing can be defined train, and ensure—often through facility audits—that
as a continuous process in which companies refine their supply chain partners are making products
their sourcing policies and practices to ensure the under conditions that meet their standards. Those
health, safety, well-being, and fundamental rights of standards are often documented and codified in
all people employed throughout their supply chain. supplier codes of conduct, which are written and
Most often focused on in developing countries, enforced individually or collectively through industry
social compliance is driven by ethical associations.
considerations, consumer interest, and
nongovernmental organizations investigating the Nearly two out of three retailers report that their
working conditions of laborers throughout the supply social compliance teams, like environmental
chain. compliance teams, are strongly aligned with their
sustainability teams. Almost 80 percent manage
Suppliers and retailers adhere to social social compliance operations in a separate
accountability standards, whether self-imposed or department, most commonly with the merchandising,
legal, within their social compliance objectives. To legal, public relations, or supply chain groups. These
do so, companies create and implement ethical groups, often with direct visibility to the supply chain,
sourcing policies and practices that extend beyond can be most effective in ensuring compliance to
their own organization into their product supply vendor’s codes of conduct. However, in recent
chains, both domestically and abroad. Consumer years, the convergence of environmental
product manufacturers with well-recognized brand sustainability and social compliance functions has
names will often have their own ethical sourcing begun to paint a complete picture of suppliers’
policies and practices independent of the retailers environmental and social impacts.
they sell to; therefore, retail companies typically
PRACTICES OF TOP-PERFORMING COMPANIES
DIMENSION TOP TRAIT(S)
Top sustainability leader Vice president or above
Size of sustainability team Average of nine team members
Resident departments for Public and government relations, supply chain, merchandising, and
part-time sustainability reports facilities, real estate, and construction
How the sustainability lead Orchestrating internal efforts, communicating with stakeholder
spends his or her day organizations, developing strategy, and interacting with senior managers
15
16. Investing and
Benefiting
All companies must rank their priorities
based on their strategic importance and
business benefits and allot them proper
funding and resources. When it comes to
sustainability, the costs of certain projects—
whether efficiency upgrades, process
changes, consumer education, employee
training, or otherwise—and the direct
resource savings are both quite tangible.
However, the additional benefits can be
even more significant than simply lower
costs. Sustainability can increase brand
loyalty and employee productivity and
retention, mitigate risk, improve community
relations, and more. Therefore, investment
in sustainability must weigh the direct costs
and savings with a host of benefits, even
those that are difficult to measure.
KEY FINDINGS
Most companies’ sustainability
budgets are remaining the same.
Most companies act on sustainability
investments that they expect to generate
a two- to three-year payback.
Companies see the primary benefits of
sustainability as reduced costs, brand
enhancement, and risk management.
Sustainability programs target the
management of reputational risks and
energy and fuel price risks.
18
17. INVESTMENT MODELS Reducing waste is another; it lowers costs and can
even generate new revenue streams. Finally,
Developing a strong business case for sustainability
partnering with suppliers may uncover resource
programs remains an important objective for
efficiencies that also translate to lower costs,
companies. Retailers most commonly seek a return
whether by reducing energy, water, material, or
on investment for sustainability projects that is
waste. (Refer to the supply chain operations section
similar to all other investments. Across the industry,
for a thorough discussion of supplier collaboration
the average minimum payback period for a
around sustainability.)
sustainability project is two to three years. Top
performers, however, plan with a longer time Figure 8. In which of the following ways have your sustainability
horizon, and most often look for paybacks as far out activities proven to be beneficial?
as three to five years. 0% 50% 100%
% of top
performers
Many companies expressed that projects with Reduced costs 100
Brand enhancement
Brand… 100
environmental and/or social benefits often have a
host of ancillary benefits that may difficult to quantify Risk management 100
Employee…
Employee enthusiasm 63
in the direct payback calculations. Programs must
Stay Stay ahead of…
ahead of regs 88
also anticipate other factors like shareholder
New innovations
New sources of… 75
interests, future consumer or regulatory trends, or
Satisfy stakeholders
Satisfy… 75
potential risks to properly finance sustainability-
Increased revenue 88
related projects. 88
Increased profits
SatisfySatisfy consumer…
consumer demand 75
Figure 7. Generally, what is the minimum payback a capital
Enter new markets 50
improvement project related to sustainability must show before
being approved?
% of top
0% 10% 20% 30% 40% Beyond lowered costs, brand enhancement and risk
performers
mitigation are also crucial benefits. Seventy-one
2-3 years 13
percent of companies report that they use
1-2 years 25
sustainability activities to benefit their organization in
3-5 years 38
those ways.
6 months to a year 0
No minimum…
No minimum required 13
A retailer’s corporate brand is among its most valued
More than 5 years 0
assets. Retailers invest a significant amount of
resources to enhance their brands with consumers,
PRIMARY BENEFITS
government, and other key stakeholders. Doing so
Retailers are reporting five primary benefits of keeps the company’s brand at the top of consumers’
sustainability programs: reduced costs, enhanced minds when they are deciding where to shop, and it
reputation, risk management, employee enthusiasm, builds trust in the communities in which retailers
and proactive regulatory strategies. On average, operate. So, it is not surprising that retailers
top-performing companies recognize a wealth of recognize the corporate reputational rewards that
benefits that extend to increased revenues and sustainability brings.
profits.
Risk mitigation, or seeking to protect the brand’s
Nearly 90 percent of respondents mentioned that reputation, is another crucial business objective for
their sustainability efforts are lowering costs, retail. Retailers manage risks like brand reputation,
primarily by improving business and resource energy and fuel dependencies, human rights issues
efficiency. Increasing the store, distribution center, in the supply chain, and commodity price
and trucking fleet’s energy and fuel efficiency are fluctuations through their sustainability programs.
only a few examples that translate to lower costs.
17
18. Figure 9. What risks to your business are you explicitly the burden on local energy and landfill infrastructure.
addressing through sustainability initiatives?
Companies that proactively address these issues will
0% 50% 100% % of top
be positioned to succeed when other such
performers
Reputational risks regulations emerge. Top performers especially
100
Energy / fuel…
Energy dependencies recognize this advantage.
75
Supply chain…
Factory human rights 75
Commodity price…
Commodity fluctuations 75 SUSTAINABILITY BUDGET
Employee employee…
Drop in recruiting 25 Sustainability budgets reflect company priorities.
Financial instability 38 Many retailers report that their most recent budget
Weather conditions
Weather… 38 for sustainability activities will not change for this
year. However, more than a quarter of companies
Fostering employee enthusiasm for recycling, expect to grow their budget in the coming year.
philanthropy, volunteerism in the community, and
team building through meaningful projects are also Figure 10. Did your sustainability budget increase, decrease, or
benefits. Sustainability projects can give employees remain the same for 2012?
a sense of personal pride and fulfillment, which 0% 25% 50% % of top
performers
improves retention, draws in the best new talent,
Increased in 2012 38
and promotes interdepartmental collaboration.
Decreased in 2012 0
Remained the same 25
Companies will often develop individual or industry
No dedicated budget
No dedicated… 25
voluntary programs to reduce the need for
government regulations. If a retail company
minimizes its waste generation, energy and fuel Furthermore, most companies report that
usage, land-use footprint, and other environmental sustainability continues to become more important to
impacts, and strives to improve the labor conditions their organization. Nearly three out of every four
of the workers across its product supply chains, it respondents say so, while no company says that
will have a competitive advantage when regulations sustainability is becoming less important.
are developed. Recent federal regulations require
Figure 11. Is the importance of sustainability increasing,
companies to track the origin of forest products decreasing, or remaining the same at your company?
through their supply chains and to publicly report on % of top
0% 50% 100%
the potential for the sourcing of certain conflict performers
minerals in their products. California legislation Increasing 100
requires companies to report on certain human Decreasing 0
rights performance standards in supply chain. And Remaining the same 0
municipalities are updating building codes to reduce
PRACTICES OF TOP-PERFORMING COMPANIES
DIMENSION TOP TRAIT(S)
Sustainability budget Increasing budget
Project payback threshold Three- to five-year payback
Benefits of sustainability programs Reduced costs, increased risk management, staying ahead of
regulations, increased revenues, and increased profits
Risk mitigation Addresses risks related to reputation, energy and fuel dependency,
human rights issues in the supply chain, and commodity price
fluctuations
18
19. Prioritizing and
Planning
Prioritizing, planning, executing, and
evaluating are crucial phases to the success
of every company’s program. Since the
breadth of opportunities for sustainability
programs is extensive, it is more important
than ever to properly set priorities and plan
for the long term. Doing so will ensure that
companies are pursuing the opportunities
with the greatest impact given the
resources. When implemented correctly,
these strategies have a significant payoff.
The return may be in terms of measured
lowered costs like reduced energy usage or
intangible benefits like brand enhancement
or a more engaged workforce.
KEY FINDINGS
Sustainability functions will increase in
scope significantly over the next two
years.
Setting goals is an important
component of a sustainability strategy.
The typical planning horizon for
sustainability strategies is five years.
1
20. BROADENING EFFORTS improvement. All of them also define sustainability to
include ethics and governance issues. Within their
Each company’s definition of sustainability reflects
supply chains, they are all focusing on improving the
its business, customers, and long-term strategy.
environmental performance of their product
However, most retailers are pursuing a core set of
transportation and on using fewer plastic bags and
sustainability functions. More than 90 percent of
chemicals of concern. And they all engage their
respondent companies are pursuing waste
communities, suppliers, and partner NGOs through
reduction, energy reduction, and community
their sustainability programs.
engagement initiatives.
While every company develops its program in a
Notably, companies indicate that a number of
different way, retailers follow a typical progression.
sustainability priorities will grow significantly over the
They first tackle store, distribution center, and
next two years. Those priorities that are expected to
transportation performance, specifically with regard
receive attention from 20 percent more companies
to waste, energy, and fuel reduction. These
within two years include water usage; manufacturing
environmentally beneficial activities generate easily
environmental and human rights impacts; business
quantifiable financial benefits and quick returns.
model innovation; product design, use, take-back,
Next, retailers engage employees and the outside
and lifecycle impact measurement; government
stakeholders necessary for a comprehensive
affairs; customer education; and investor relations.
program. The companies that are making the most
progress around sustainability are focusing on issue
We defined top-performing companies as those
areas like product development and supply chain
retailers who prioritize over three-quarters of the
management. These may include, for example,
issues related to their facilities (Figure 12), products
ecological assessments in cotton mills, sustainability
and supply chains (Figure 13), employees (Figure
audits in foreign factories, or increased use of
14), and community (Figure 15) in their sustainability
recyclable materials in products.
strategies. Nearly all of the top-performing
companies are engaged in all aspects of facilities
Figure 12. Facilities - what are/will you work on? Figure 13. Products - what are/will you work on?
% of top % of top
20% 40% 60% 80% 100% 20% 40% 60% 80% 100%
performers performers
Waste and recycling 100 Transportation 100
Now
Energy usage 100 Chemicals of…
Chemicals of concern 100
2 years
Green buildings 100 Packaging design 88
Greenhouse gas…
GHG emissions 100 Product take-back 88
Water usage 75 Manufacturing…
Manu. env. impacts 75
88 Product design 63
Land Landand…
use use
Factory Factory labor…
labor conditions 75
Sourcing locations 63
Product use & disposal
Product use and… 75
Business innovation 50
Now
Measuring life cycle 2 years 50
20
21. Figure 14. Internal organization - what are/will you work on? Figure 15. Stakeholder engagement - what are/will you work on?
20% 40% 60% 80% 100% % of top 20% 40% 60% 80% 100% % of top
performers performers
Executive…
Executive engagement EngagingCommunity…
communities
Now 100 Now 100
Store employee…
Store engagement 2 years Philanthropic…
Philanthropic donations 2 years
88 88
Health & safety
Health and safety… 88 Engaging suppliers 100
Ethics and…
Ethics & governance 100 NGO engagement 100
Diversity programs 88 Government affairs 88
ConsumerConsumer…
education 88
Investor relations 88
PLANNING AND SETTING GOALS external stakeholders (those who provide resources,
guidance, and services).
For any business initiative, companies must plan
their activities up to a certain horizon. One third of
The areas and rigor for setting goals depend on the
retailers report that they typically plan their
retailer. Some are motivated to reduce greenhouse
sustainability activities five years in advance, and
gas emissions, water use, or waste, while others
another third plan for four year or fewer.
look beyond operations to supplier engagement.
Some retailers set their sights on absolute reduction,
Figure 16. What is your sustainability strategic planning horizon?
% of top
while others pursue normalized improvements.
0% 25% 50% Some set ambitious and aspirational goals with only
performers
1 year 0 minimal up front research on how they might be able
2 years 0 to achieve those goals, while others set analytically
3 years 13 derived goals, ensuring they have a roadmap to
4 years 0 success before launching. Some goals are public—
5 years 50 promoting awareness and accountability—while
6+ years 25 others are only announced internally.
Retailers often see tangible sustainability goals as Table 1. Types of sustainability goals
an integral part of their business and sustainability GOAL TYPE EXAMPLE PURPOSE
Ambitious Become carbon Aspirational and
strategy because the process of setting goals will
neutral inspirational
gain buy-in and alignment throughout their Grounded Reduce waste by Can develop a
organization. The sustainability team facilitates 15 percent by 2015 roadmap to achieve
nearly 60 percent of corporate sustainability goals, Normalized Reduce packaging Achievable and
by 25 percent per incorporates
and most often the team develops them with a five- product sold company growth
year horizon in mind. Absolute Reduce carbon Makes
emissions by 20 environmental
Figure 17. What is your company’s process for formulating your million metric tons benefit explicit
corporate sustainability goals?
% of top Not surprisingly, the most commonly reported type of
0% 20% 40% 60% 80%
performers goal among retailers relate to reducing energy
Sustainability team 63 usage and/or greenhouse gas emissions. Those are
No sustainability…
No sustainability goals 13 the focal points of most early sustainability programs
C suite 38 because of their tangible, quantifiable savings.
Functional…
Functional dept(s) 25 Through the process of setting or achieving energy
reduction goals, companies realize the potential for
To achieve their goals, retailers must develop goals in other areas like waste reduction, product
strategies to engage both internal functional teams sourcing, and supply chain management.
(those who make the business decisions) and
21
22. Table 2. Stakeholders necessary to engage for each goal type
GOAL TYPE EXAMPLE EXAMPLE
INTERNAL EXTERNAL
STAKEHOLDERS STAKEHOLDERS
Reduce Facilities, real Landlords, utilities,
energy use estate, and energy and service
procurement providers
Reduce Facilities, real Landlords, waste
waste estate, and store haulers, and
employees distributors
Manage Procurement, Suppliers,
supply sourcing, logistics, transportation
chain and product design services, and
wholesalers
Engage the Store employees, Local nonprofits
community community affairs, and city service
and departments
communications
PRACTICES OF TOP-PERFORMING COMPANIES
DIMENSION TOP TRAIT(S)
Facility focus areas Reducing energy usage, land use and develop impacts from construction,
and waste creation, and promoting green-building design
Internal programs Senior management engagement, ethics and governance, store employee
engagement, diversity programs, and health and safety programs
Product and supply chain Transportation efficiency, plastic bag reduction, materials management
programs (including chemicals of concern), packaging design, and product take-back
Stakeholder engagement Suppliers, NGOs, and community engagement
programs
Goals Set by sustainability team
Strategic planning horizon Five-year horizon
22
23. Measuring and
Reporting
In order to track and report on the progress
of sustainability programs, relevant financial,
environmental, and social metrics must be
selected. As with all business programs,
measurement can be used to hold
organizations and individuals accountable.
When corporate sustainability goals are set,
metrics and milestones are used to track
progress in areas like energy or waste
reduction or percent of suppliers in
compliance with a company’s code of
conduct.
Furthermore, external interest in corporate
sustainability performance has fueled the
need for more accurate measurement and
reporting methods. Doing so allows
companies to open dialogues with their
customers, communities, investors, and
suppliers, making their strategies known
and strengthening trust in their brand.
KEY FINDINGS
Most retailers measure energy, fuel,
material usage, and waste generation.
More than 25 percent more retailers will
begin to measure code of conduct
compliance, water usage, suppliers
audited for social compliance,
renewable energy generation, and
chemicals of concern over the next
two years.
Companies communicate their
sustainability plans and performance
through websites, intranet sites, and
annual sustainability reports.
23
24. MEASURING KEY SUSTAINABILITY METRICS progression of their programs, they are able to make
adjustments to their strategies to ensure success.
The adage ―what gets measured gets managed‖ is
as true for sustainability as it is for all corporate
ACTIVE SPEAKERS FOR ACTIVE LISTENERS
initiative. And given that retailers focus first on their
own operations, it is not surprising that the three As retailers continue to integrate sustainability
most commonly tracked metrics—facility energy measures into operations, they are also more
consumption, transportation fuel usage for private or creative in their communication strategies.
third-party fleets, and waste volumes—represent the Achievements in sustainability can engage
impacts of company buildings and trucking fleets. consumers and other stakeholders, driving demand
These metrics ensure that operational issues are for products that are healthier, safer, and more
managed and that company managers are held environmentally friendly, as well as interest in
accountable for their performance. companies that have strong sustainability programs.
In turn, that demand can drive sales and investment,
While companies will continue to track these three simultaneously elevating the value of internal
metrics over time, nearly every company will be sustainability efforts and creating a need for even
tracking the 11 key metrics identified in the survey more stakeholder communications—fueling a
by 2015. Water usage, suppliers audited, renewable virtuous cycle.
energy generated, and chemicals of concern will see
a significant uptick in measurement over the next Figure 19. Growth cycle for sustainability messaging
five years—from 50 percent or fewer of companies
tracking them now to more than 70 percent by 2015. Sustainability
Notably, most top-performing companies are already messaging
tracking the majority of these metrics. Retailers use
this breadth of data to trace improvements in their
operations and examine the effectiveness of their
operational and supply chain strategies. Stakeholder
Sustainability
interest and
activities
Figure 18. What sustainability metrics does or will your company demand
measure?
% of top
0% 50% 100%
performers
Energy usage 100
Fuel usage
Sales of
88
sustainable
Waste generation 88 products
Material recycled 100
Greenhouse gas…
GHG emissions 88
Plastic bag usage 100 Retailers access a variety of channels to reach their
Code of conduct…
Supplier CoC compliance 88 customers, employees, and other stakeholders.
Water usage 75 Many choose to highlight their efforts publicly on
Suppliers audited…
Social compliance audits 88 websites and privately through employee-only
Renewable energy 75 intranet sites. Sustainability reports and social media
Now
Chemicals in…
Chemicals of concern 25 are also common information outlets. Nearly half of
2 years
companies report to investor groups through
Internal measurements are most often reported mechanisms like the Carbon Disclosure Project
across an organization on an annual basis and are (CDP) and Dow Jones Sustainability Index (DJSI).
reviewed by the sustainability team and other Few companies are communicating sustainability
relevant functional departments. As teams track the through television or radio, though the use of those
24
25. channels is expected to rise more than threefold While about two-thirds of companies currently
over the next five years. produce reports, by 2015 nearly 95 percent are
expected to be reporting on sustainability issues.
Figure 20. How do/will you communicate your sustainability Most retailers reporting now, including the top
efforts?
performers, are publishing reports on an annual
% of top
0% 50% 100% basis. Reports can be a point of pride for retailers,
performers
prompting key stakeholders like employees,
Company website 100
executives, investors, customers, and suppliers to
Intranet site 100
join in the conversation. They typically cover
Report 63
relevant financial information extracted from investor
Social media 100
reports, as well as the company’s environmental and
Store signage 88
75
social objectives and performance. These reports,
Print media
75
often using the Global Reporting Initiative’s (GRI)
Product labels
88
reporting guidelines as a framework, also provide an
Reporting (CDP…)
Reports to investors
75 organizational profile, governance indicators,
Answering surveys
Now management approaches, and more.
TV or radio 2 years 13
Currently, the data reported in a sustainability report
THE EMERGENCE OF THE REPORT can be difficult to gather, since it resides in many
Investors, consumers, and other stakeholders are parts of a business and lacks a common system to
becoming more sophisticated at evaluating account for it. Therefore, most companies focus on
companies’ efforts. To respond to the need for gathering the data internally in a format that they can
increased transparency, companies publicly share use for consistent reporting. As internal accounting
goals, strategies, milestones, and progress updates systems become more sophisticated and industries
with stakeholders in the form of an annual report and develop and adopt data standards, data accuracy
on their website. These reports go by a variety of will become increasingly important. While more than
names, including corporate social responsibility 60 percent of companies currently assure the
(CSR) report, corporate sustainability report, or a accuracy of sustainability reports internally, external
separately branded document. assurance will double in the next two years.
Figure 22. How does/will your company seek assurance on
Figure 21. How often does/will your company produce or update
sustainability metrics?
your Sustainability Report?
% of top
% of top 0% 50% 100%
0% 50% 100% performers
performers
Internal assurance Now 88
Monthly 0
External assurance 2 years 50
Quarterly 0
Annually 50
Every two years Now 0
Not producing report
Not producing… 2 years 50
PRACTICES OF TOP-PERFORMING COMPANIES
DIMENSION TOP TRAIT(S)
Metrics being tracked internally Energy use, volume of materials used, plastic bag
use, fuel use, waste generation, greenhouse gas
emissions, and supplier code of conduct compliance
Communication methods Website, intranet site, social media outlets, store
signage, and CDP report
Reporting assurance Mainly internal assurance with a trend to external
assurance
25
27. Building Operations
Retail stores and distribution centers vary
significantly in size, design, and location, but
they all have one thing in common: there
are significant opportunities to cut expenses
by reducing energy and carbon use and
waste production. New technologies
promote energy management and accurate
tracking of energy use. Store employees
and consumers are becoming ever more
conscious about sustainability, especially as
it relates to recycling.
Implementing recycling, energy
management, and other sustainability
initiatives in retail facilities have benefits
beyond cutting costs—when done well, they
also generate profits and improve the
comfort, indoor air quality, employee
productivity, and customer experience in the
store.
KEY FINDINGS
Waste and energy reduction are the
top facility-related improvements
retailers are undertaking.
Green-building practices and
management of greenhouse gas
emissions and water use will grow
significantly over the next two years.
Green leases can unlock waste-
reduction and energy-saving
opportunities.
The highest impact energy-efficient
upgrades include lighting, HVAC
(heating, ventilation, and air-
conditioning) systems, and refrigeration
units.
Waste and energy reduction
initiatives in stores and distribution
centers energize retail employees.
27
28. RECYCLING AND WASTE MANAGEMENT waste are the two types of goals retailers most often
set. Specific commitments range from reducing
Figure 23. Facilities - what are/will you work on?
% of top
waste by 25 percent by 2015 to aspirational goals
20% 40% 60% 80% 100% performers like sending no (zero) waste to landfills.
Waste and recycling 100
Now ENERGY IMPROVEMENTS
Energy usage 100
2 years
Green buildings 100 Stores mainly use energy for lighting, heating,
Greenhouse gas…
GHG emissions 100 cooling, and, in the case of grocers, refrigeration.
Water usage 75 Since each of these functions affects the shopping
Land Landand…
use use 88 experience, it is crucial to reflect on the customer’s
perspective when determining how to upgrade
Retail stores generate a host of material wastes, energy systems. However, there are significant
mainly from product packaging for transportation. opportunities for energy reduction—and saving costs
Transportation packaging plays the crucial function and mitigating greenhouse gas emissions—through
of keeping the product safe through transportation efficiency measures and renewable energy
and consists of materials including cardboard, development that can also enhance a customer’s
shrink-wrap, mixed paper, plastic, scrap metal, experience.
aluminum, wood and plastic pallets, organic
materials, and more. Minimizing retail waste requires Figure 24. Energy-saving progression
economical recycling or reuse options for these
material commodities.
Opportunity
Measurement Execution
identification
Waste reduction efforts begin with analyzing waste
streams to identify the most prevalent commodities
Tools: Criteria: Internal partners:
and then developing an action plan that accounts for Submeter Cost-benefit Facilities
regional hauling costs and commodity values. Smart meter analysis Real estate
Ultimately, upstream reduction efforts—namely to EMS Relevance to Operations
stakeholders Construction
redesign products and packaging to incorporate Benefit to
fewer materials or less material volume—will further customers
reduce hauling needs, saving truck space and
lowering costs related to waste. Reducing energy use begins with measuring it. Most
companies are currently measuring or estimating
Nearly all surveyed companies are currently their energy usage. To do so accurately requires
improving their environmental performance by direct access to energy meters—which are
reducing waste and increasing recycling. In fact, occasionally unavailable in leased spaces—and
more companies have founded recycling initiatives systems to track monthly energy use. Companies
than energy reduction initiatives. Recycling at stores use an EMS to track and analyze energy
reduces costs and engages the store employees— consumption, allowing them to compare stores to
some of its biggest advocates. Most companies determine the best- and worst-performing locations.
measure or estimate the amount of waste they This analysis often requires that the company
generate and the volume of material they recycle. consider different store designs and local weather
profiles. Some EMSs also have the capability to
Setting waste reduction goals is another useful tactic control store lighting, temperature, and other
to align the organization and demonstrate the systems.
company’s commitment to these goals to its
business partners and employees alike. Reducing Companies then identify the highest payback
energy use and greenhouse gas emissions and opportunities for energy-efficient retrofits. Most
retailers focus on high-efficiency lighting systems
28
29. like LED (light-emitting diode) bulbs with significantly Interior space build outs require the installation of
improved lifetimes and energy performance; motion electrical wiring and lighting fixtures, space heating
sensors and other automation systems to control the and cooling, and refrigeration for food products. In
artificial lighting, depending on the outside addition to these features, new buildings may also
conditions; as well as retrofitting HVAC systems. require parking spaces and access to transit,
Incorporating daylighting (mainly through skylights) stormwater management, and landscaping. When
saves energy and improves the customer developing a new site, there are numerous
experience in stores. Retailers with grocery opportunities to implement green technologies and
operations have upgraded food refrigeration processes, such as building on brownfield sites,
systems to improve efficiency while recognizing using recycled, certified-sustainable building
customer and employee usage trends. materials, or recycling construction wastes. Some
companies may choose to install solar panels when
Beyond efficiency, a growing trend is to generate they move into the space as well.
renewable electricity onsite or purchase green
power from a third-party generator. Solar power is Depending on their goals, retailers may follow
the most common form of onsite renewable power, green-building standards like the U.S. Green
mainly because retailers operate stores and Building Council’s (USGBC) for Leadership in
distribution centers with large rooftops. Some Energy and Environmental Design (LEED)
companies are testing onsite wind power, either with framework. The Commercial Interior (LEED-CI) and
microturbines on store roofs or larger turbines LEED for Retail certifications are particularly relevant
located at distribution centers. Sourcing renewable for retail stores. Also, the LEED Volume Program is
energy allows retailers to offset electricity bills and especially valuable for retailers, since it allows
meet carbon emissions-reduction goals. companies to streamline the certification of
numerous building projects.
Similar to reducing waste, companies are setting
goals to reduce energy use and greenhouse gas GREEN LEASING
emissions. Some goals are aimed at improving the
While it may seem that retail brands control their
per-square-foot performance over time, while others
waste operations and energy performance,
seek to obtain absolute reductions.
oftentimes changes in these operations require
partnerships with landlords, utility companies, waste
DESIGN AND CONSTRUCTION
haulers, and other business partners who manage
Selecting a site is the first step toward opening a the retailers’ buildings and infrastructure. Retailers in
new store. Sites are selected based on a number of leased locations, like malls or shopping centers,
criteria, including proximity to specific customer must interact with their landlords for certain
demographics and related stores, lease cost, operational improvements.
building type, availability of parking and alternative
transportation, and more. Once they have selected a Green leasing presents an opportunity for retailers
store location, retailers will either contract with third- and their landlords to make improvements that can
parties or work with their own in-house teams to reduce operating costs. The definition and
design and construct stores from the ground up or implementation of these leases vary across the
build out existing spaces. Because new locations United States and by company, but lease provisions
are only profitable once their doors are open, it is that foster reduction of energy use and waste
extremely important that the time to design and build creation will become more common as the influence
a new space is minimized. Therefore, companies of certifications like LEED or ENERGY STAR (a joint
develop store-design prototypes, which they use as program of the U.S. Environmental Protection
a basis for the development or build out of their new Agency and the U.S. Department of Energy)
spaces. increase in public recognition. While every lease is
29
30. different, leases that incorporate green provisions The most common obstacle that retailers and
will typically address the issues shown in Table 3. landlords typically face is that of aligning the
financial incentives between the parties to reduce
Table 3. Components of a retail green lease energy use in stores and common spaces. To
IMPROVEMENT PURPOSE address that need, New York City and other
DIMENSION
organizations have developed the Energy Aligned
1. Improve base Improve the energy, water, and
building efficiency waste efficiency of the base building, Clause, a publicly available provision that property
including the common areas. owners can conveniently insert into leases that
Includes insulation, windows, allows the developer to recuperate energy-retrofit
rooftops, parking lots, etc.
2. Align incentives Develop financing and payment
costs through savings in tenant energy use. Such
mechanisms that encourage each lease language is immediately beneficial to both the
party to reduce energy and water retailer and the developer. Another common
use and waste. obstacle that retailers and landlords face is that of
3. Improve tenant Support the resource efficiency of a
space tenant’s space, consistent with the defining who has access to and control of key areas
premises’ requirements if available. on the premises like the rooftop or parking lots.
Includes tenant build out and Defining in which instances the retailer has access
operation.
to the facility’s roof allows them to more easily install
4. Make resource Make energy and water use and
use more waste generation visible to both rooftop solar units.
transparent parties.
5. Clarify access Define which party(ies) will have Few retail companies are currently addressing green
to and control of access to important spaces like the
key spaces rooftop and who has the control to leasing in a holistic way, but many are beginning to
implement capital projects such as focus on one or more of the aspects mentioned
rooftop solar units in those spaces. above. We expect to see both retailers and landlords
integrate more green provisions into their contracts
over the next couple years.
PRACTICES OF TOP-PERFORMING COMPANIES
DIMENSION TOP TRAIT(S)
Facility improvements Reducing waste generation, energy use, greenhouse
gas emissions, and land use and designing facilities
according to green-building standards
Programs to reduce waste generation Redesigning products and packaging and developing
recycling programs, occasionally with backhauling
capabilities
Programs to reduce energy use Retrofitting lighting, HVAC, and refrigeration systems to
make them more efficient
30
31. Supply Chain
Operations
The consumer product supply chain is an
extensive and complex global network.
Supply chains span countries and cultures.
And retail’s greatest environmental impacts
and social performance challenges are in its
supply chain.
Therefore, true sustainability is achieved by
integrating it throughout the product supply
chain. Retailers have many opportunities to
improve business performance in the supply
chain. Through incentives, training
programs, and collaborative projects,
suppliers and retailers have begun to
integrate sustainability into the supply chain,
leading to benefits like stronger retail-
supplier relationships, lower transportation
costs, greater transparency, and mitigated
risks and costs.
KEY FINDINGS
Supply chain improvements have
focused on transportation, materials
including chemicals of concern, and
packaging design. Managing all
aspects of the product life cycle, from
design through use and disposal will
become increasingly prevalent practices
over the next two years.
Transparency into the social and
environmental impacts of product
supply chains is a growing practice.
Risk mitigation is a major benefit of
supply chain sustainability programs.
31
