How to work collectively with the retailer sector for

How to work collectively with the retailer sector for effective communication of product chain information to consumers?

Welcome to the workshop!

www.scp-centre.org Burcu Tunçer How to work collectively to enhance communication of product chain information to consumers?

Structure of the workshop

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• To identify collective challenges behind and research needs for effective communication of product chain information to consumers.

• How to work collectively to enhance communication of product chain information to consumers?, Burcu Tuncer, CSCP

• Communicating environmental and ethical aspects at the shop floor level – the case of Nordic retailers, K. Schmidt

• Research needs: What other communication challenges do researchers need to investigate?• What we know: What are the recent learnings from research concerning the life cycle information communication to consumers?• Research on partnerships: What type of partnerships do we need to stimulate consumers to choose better and “sustainable products”?

Objective of the workshop

World Café discussion

Presentations for setting the stage

How to work collectively to enhance communication of product chain information to consumers?

Presented by:

Burcu Tunçer

UNEP / Wuppertal Institute CollaboratingCentre on Sustainable Consumption and Production


Federal Ministry for the Environment, Nature Conservation and Nuclear Safety

United Nations Environment Programme

for Climate, Environment and Energy

CSCP

A collaboration between

Financial support given by

UNEP/Wuppertal Institute Collaborating Centre on Sustainable Consumption and Production (CSCP)

Wuppertal Institute UNEP

North Rhine-Westfalian Ministry for Environment, Agriculture and Consumer Protection

NRW

Federal Ministry for Economic Cooperation and Development

German state

Business and Employment Support Agency

Wuppertal

About CSCP


About CSCP

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Background: Key role of retailers towards sustainable consumption

Retailer strategies and product chain communication approaches

Recent initiatives, collective challenges and research needs

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OUTLINE

www.scp-centre.org Burcu Tunçer How to work collectively to enhance communication of product chain information to consumers? 7

Life cycle opportunities

DisposalConsumptionRetail

Env

ironm

enta

l and

soc

ial i

mpa

cts

high

low

Product Chain

Manufacturing/ProcessingTransportationProduction

Source: Adapted from WWF-UK 2003




Man

agem

ent r

espo

nds

high

low

Product Chain





Opportunities for value creation through environmental and social

responsibility


Env

ironm

enta

l and

soc

ial i

mpa

cts

high

low

Product Chain



80% of current management effort covers only 20% of the available opportunities for value creation

www.scp-centre.orgBurcu Tunçer How to work collectively to enhance communication of product chain information to consumers? 10


Opportunities for value creation through environmental and social

responsibility


Env

ironm

enta

l and

soc

ial i

mpa

cts

high

low

Product Chain



80% of current management effort covers only 20% of the available opportunities for value creation

Upstream Opportunities: Building up better alliances, access tolimited resources,stability of supply, etc.

Downstream Opportunities:

Customer satisfaction and loyalty, improved

brand image, etc.


Consumers prefer companies with a goodreputation for environmental responsibility

Increase of environmental friendly and ethical products The role of consumers

Consumers say they would favor responsible brands and companies

Source: GlobeScan, CSR survey, 2007.

Consumers believe they can make a difference in how responsibly a company behaves

Source: Tanberg, 2007


Increase of environmental friendly and ethical products For example expanding LOHAS

Markets are expanding: Environmental friendly and ethical products

Hybrid carsFair Trade/Sports

Fashion clothing

Investment

Eco Tourism

Luxury Ethical Jewellery

Estimated Fair Trade retail value

Source: Fairtrade Labeling Organisations International Annual Report 2006/2007

New media


Converting the 75% Action – behaviour gapy

Consumers feel locked-in

Source: Consumers International/Accountability

Survey, 2007.

•75% concerned about global warming but challenged to see how they can make a difference.•9% concerned about global warming, willing to make an effort empowered to take significant action.


The challenge of encouraging sustainable lifestyles starts with understanding consumption trends

Whose consumption patterns are similar to those in developed

countries (>$7000)

Global Consumer Class is expanding.

1.7 billion members, of these• 50% in developing countries• 362 Million in China and India, more

than in EuropeIn the next years, the GCC will grow most strongly in developing countries.

Where is the GCC?

Source: Bentley 2003: Leading consumer classes in countries, 2002

Golden Resources Shopping Mall, China

Baby Food Ad, China

www.scp-centre.orgBurcu Tunçer How to work collectively to enhance communication of product chain information to consumers?





15

OUTLINE


Sustainable Consumption and Production Strategies

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Consumers’ Choice

Retailer - Manufacturer Consumption Opportunities

What to buy

better quality choices & high value

products

Strategy Area 1

How to use

improved experience of product use

Strategy Area 2

How to discard

after-sales and end- of-life services

Strategy Area 3

Source: CSCP


Sustainable Consumption Strategies

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Sustainable Consumption Strategies Strategy Area 1

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Choice-editing means:

Choice-editing was first mentioned by Sustainable Development Commission of the UK in the “I will if you will“ Publication

• Pre-selecting the particular range of products and services available to consumers. Choice-editing is seen by consumers as increasingly desirable as they look to others to organise the choices that they face. • But how to select & communicate this complex selection effort in a simple way?

Which retailers practice choice-editing?• B&Q edits out non-sustainable wood and sources only FSC labelled wood.• Sainsbury‘s now only see fair trade bananas• Marks & Spencer only sell free-range eggs• MEMO, German office supplier screens and lists best in class products available.



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21



22


Mind the “rebound effect”!

23

Trends in energy efficiency, ownership, andoverall electricity consumption of selectedhousehold appliances, EU-15

Growth in private car travel versus fuelefficiency in EU-15


Does sustainable consumption mean selling more and more “sustainable products” only?


Sustainable Consumption and Production Strategies Strategy Area 5

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26



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Convenience food driven diets typically have higher ecological footprint

The food and drink footprint of a diet based on convenience food such as microwave meals, take- aways or catering services might be significantly high compared to a diet based on organic fresh food at all times.

Hence, food related footprint can be reduced by a factor of three by eating fresh organic (and local) food.

Ecological footprint of a diet relying heavily on convenience food can reach as high as 1.7 gha/cap.

Ecological footprint of a diet relying on organic fresh food at all times can be as low as 0.5 gha/cap.

Source: (WWF and SEI, 2005)



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OUTLINE





Working with UNEP towards SCP - Background

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Retailers Calender• Understanding the context• A Guidelines Manual for Retailers Toward Sustainable Consumption and Production• March 2006 - August 2007

Working towards SCP

Retailer Discussion Groups and Project Groups• Part of UNEP/SETAC Life Cycle Initiative and Marrakech Process• Life Cycle Expert Group Meeting in Paris in January 2009• Prepared a background document mapping around 90 retailer initiatives around the globe.• Scoping workshop for partnerships on communication• April 2007 - April 2009 implementation

to

pilot application

from


Retailers Calendar - A Guidelines Manual for Retailers Toward Sustainable Consumption and Production

30

Priority setting

Capture real supply chain performance

New grounds in marketing & customer

relations

Communication of Achievements

Enhance efficiency of your in-store operations

1

2

3

4

5

Phase I• Analyzing trends • Collecting data

3 Phases per Module

Phase II

• Identification of priorities

• Choosing the tools• Planning

Phase III• Implementation• Performance

assessment

5 Core Modules5 Core ModulesAll Modules

offer practical examples


Working with UNEP towards SCP - Background

31

Retailers Calender• Understanding the context• A Guidelines Manual for Retailers Toward Sustainable Consumption and Production• March 2006 - August 2007

Working towards SCP

Retailer Discussion Groups and Project Groups• Part of UNEP/SETAC Life Cycle Initiative and Marrakech Process• Life Cycle Expert Group Meeting in Paris in January 2009• Prepared a background document mapping around 90 retailer initiatives around the globe.• Scoping workshop for partnerships on communication• April 2007 - April 2009 implementation

to

pilot application

from


• Retailer company-own-led (#~10)• Producer company-own led (#~2)

• Retailer company-own-led (#~5)

• Either led-by producers or the majority of the members are producers (#30)

• Retailer company-own-led (#~10)• Producer company-own led (#~3)

Mapping Retailer initiatives - Background Study Existing initiatives focusing on in-shop, upstream and downstream

Source: CSCP

Upstream initiatives (supply chain & commodity relevant)

In-Shop initiatives (energy use, transport, logistics)

Downstream initiatives (consumer communication, use phase,

end-of-life management)

Initiatives led by other stakeholders (#15)• NGOs, sector associations, research institutes, international organisations

Initiatives led exclusively by a group of retailer companies (#14)• Limited number of producer companies are involved


Initiatives by various stakeholders for enhancing product chain communication to consumers

3333

EuroCommerceCIAA European Food and Drink Industries (CIAA) the European Food SCP RoundtablePackaging Associations

Sector organisations

Consumer Focus in the UKRates food retailers in the UKConsumers InternationalBenchmarking CSR initiatives in retailer sector BEUC & EEBRetailer Forum linked activities

NGOs

UNEP/SETAC Life Cycle InitativeWorkshop series on enhancing product chain communicationWBCSDSustainable consumption work area – Vision 2050 for Sustainable Lifestyles Project

International organisations

Retail Forum (launched March 2009)Part of EU SCP Action PlanGerman CSR ProjectSustainable Development

Governmental initiatives

ETH Zurichwith COOP SwitzerlandETC/SCPRetailers’ Role towards SCPMany more…We will discuss shortly.

Academic and research


What are the common areas? What are the links to LCI?

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MicroArea 1 – Common language

• Common understanding/langua ge

• Simplicity vs. complexity

MicroArea 2- Principles

• Dynamic principles for „sustainable products“

• Measure sustainability

MicroArea 3: Commun i-cation

• Customize communication

• Demonstrate benefits• Demonstrate

internalized costs

LCI

LCI

LCI

Macro Level: Data

• Reliable complete information

• Consensus through science facilitation

LCI

Macro Level: Value change

• Difficulty in changing consumption and production patterns

• Market forces vs. Regulated marketLCI


Collective challenges on communication of product information

• Global product chains have become very complex and hard to manage.

• Focus might not be on resource intensive product categories. Scope is often only on product groups with high supply chain control.

• There is rarely agreement on hot-spots and relevant information.

• Upstream actors provide limited data, often irrelevant.

• Cost of (quality) data collection often overruns its benefits.

• Labels only cover limited aspects in the product life-cycle, or offer only a very general assurance. Other formats involve long and highly technical lists of materials or pollutants. Few of them allow comparison of relative performance.

• Product information is used to protect reputation and brand value and not much for active onward/downstream communication. Simplistic campaigns have become common due to short-term perspective.

Supply challenge


Collective challenges on communication of product information

•Consumers might talk “sustainability” but act on “price”.

•Consumers are lost in the jungle of labels.

•Consumers trust brands or third party labelling rather than company claims.

•Choices and behaviours are shaped by many complex forces, often “irrational”.

•Product information on its own is rarely enough. It must be able to operate actively with other influences on choice and behaviour.

Demand challenge


Sustainable Consumption Opportunities Editing the pyramid of choice

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What influences you on consumption?*

* First choice in survey question

Source: Fien, Bentley, Neil - Young People as Agents of Change

Thank you for your attention!For further questions, please contact:

Burcu TunçerProject Manager, [email protected], Tel: +49 202 4595812UNEP / Wuppertal Institute Collaborating Centre on Sustainable Consumption and Production (CSCP)


Workshop: How to work collectively with the retailer sector for effective communication of product chain information to consumers?

39

To identify collective challenges behind and research needs for effective communication of product chain information to consumers.

Objective of this workshop


Discussing the challenges of communication of product chain information

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• What we know: What are the recent learnings from research concerning the life cycle information communication to consumers?• Research needs: What other communication challenges do researchers need to investigate?• Research on partnerships: What type of partnerships do we need to stimulate consumers to choose better and “sustainable products”?

Questions for World Café :


Café Etiquette

• Focus on what matters.• Contribute your thinking.• Speak your mind and heart.• Listen to understand.• Link and connect ideas.• Listen together for insights and deeper questions.• Play, Doodle, Draw – writing on the tablecloths is encouraged!• Have fun!


Partnerships for Sustainable Consumption and Production

Partnerships for … Partnerships can provide e.g. … Potential partners can be…

Creating common standards or principles

Support in defining sector priorities for sustainable consumption and production

Knowledge about customer concerns and needs

Associations/sector companies, competitors, NGOs, research organisations, (sector) stakeholders including financial institutions

Consumer communication and education

Trusted information on product performance and responsible use,

Influence on lifestyles and opinion leadership

NGOs, civil society organisations, consumer protection agencies, media, governmental authorities

Sustainable products and services

Insights on customer needs, culture, lifestyles as well as material stakeholder issues

Viable market mechanisms to support responsible sourcing

Supplier and producer tatcompanies, consumer associations, NGOs

Research and development

Scientific life-cycle assessment, alternative technologies and application of renewable resources

Assistance for innovative products and services

Scientific organisations, universities, research centres and institutes, governmental authorities

Local community involvement and new markets

Access to relevant networks and organisations in developing or transition countries

Support in linking business models to social development needs

Development agencies, development aid organisations, local networks, NGOs, local government, consumer associations


Consumer Perspective

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• Single label

• Benchmark/index

• Usage information

• Education & information

Vision:

• Conflicting interests

• Costs

• Data

• Communication

Challenge:


• Sustainable product principles (definition of common criteria)

• Readiness for complexity: sustainability is a complex issue area.

• Communication in short time, simple and honest.

• Change of values/habits: consumption behaviour

• Communication of sustainable product benefits: Better marketing of sustainable products, how to reach the mass market.

Retailer/Manufacturer Perspective

44

• Aspects we want to see:• Seasonality, social aspects,

recyclability of raw materials, impact covering whole life cycle

• New shopping experience:• “No more bad concious”,

positive feeling!• Easy to understand• Retailer not putting the

responsibility on consumers• Not misleading

• Tools we want:• Sustainability indicator• 1 information system on three

pillar

Vision: Challenge:


•

•

•

•

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Key position of retailers along product chains

Shared responsibility to encourage sustainable patterns of consumption and

productionSource: CSCP

Located between manufacturers & consumers in product chains

purchasing decisionsuse of productsdisposal of products

Influencing hundreds of millions of consumers worldwide

Downstream opportunities

Opportunity to collectively set sustainable product principles and encourage sustainable production practices especially among SMEs

Reaching out to manufacturers

Upstream opportunities


What is a world café?

• Provides opportunities for people to move in several rounds of conversation, to encourage ideas, questions, and themes to link and connect.

• After several rounds of conversation, discoveries and insights will be shared in a whole group conversation.


Roles

Travelers

• link and connect ideas coming from their previous table conversations—listening carefully and building on each other's contributions

• Remain at the table when others leave and welcome new guests from other tables and briefly share the main ideas, themes and questions of the initial conversation.

Table host


What is a world café?

• Provides opportunities for people to move in several rounds of conversation, to encourage ideas, questions, and themes to link and connect.

• After several rounds of conversation, discoveries and insights will be shared in a whole group conversation.


Roles

Travelers

• link and connect ideas coming from their previous table conversations—listening carefully and building on each other's contributions

• Remain at the table when others leave and welcome new guests from other tables and briefly share the main ideas, themes and questions of the initial conversation.

Table host


Café Etiquette

• Focus on what matters.• Contribute your thinking.• Speak your mind and heart.• Listen to understand.• Link and connect ideas.• Listen together for insights and deeper questions.• Play, Doodle, Draw – writing on the tablecloths is encouraged!• Have fun!


Questions at each World Café table

1. Which challenges would you like to address under this type of partnership?

2. Which stakeholders would you like to involve?3. With which similar initiatives would you see a link?

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Documents

How to work collectively with the retailer sector for