[Slidecast] Best Practices in Product Metrics
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The document discusses the importance of product sustainability metrics in bridging the buyer-supplier gap within sustainable business practices. It highlights the shift towards transparency and traceability in retail procurement, with a focus on emerging consumer trends and the need for measurable improvement in sustainable product offerings. Key findings indicate a growing emphasis on environmentally friendly packaging and performance standards in procurement programs across major retailers.
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[Slidecast] Best Practices in Product Metrics
- 2. Product Sustainability Metrics: Closing the Buyer Supplier Gap Libby Bernick October 24, 2011 Wharton IGEL Sustainable Life Media Event “Redefining Value: The New Metrics of Sustainable Business” www.terrachoice.com
- 3. UL Environment Helping to grow the world’s most sustainable companies Capture Market Provide Trust & Value Transparency Understand Environmental Marketing & Communications Sustainability • Market Research and Positioning • Product & Supply Chain Strategies • Sustainable Product Development and www.terrachoice.com Launch EPDs
- 4. Product Sustainability Metrics: Closing the Buyer Supplier Gap Trends and Emerging Issues Buyer Supplier Gap Possible Solutions
- 5. Market Drivers: Research and Info Sources Consumer Products. Annual surveys in Canadian & US retail stores, 2007 – 2010. Approx. 70 product categories. Ongoing surveys of federal, state and provincial procurement agencies, Canada & US. 20 largest global retailers, survey & analysis of sustainable product procurement programs. Stocking the Shelves with Green, 2010, Bernick, et al.
- 7. Retailers’ Sustainable Procurement Programs Scope of Study • 25 global retailers • 50 procurement programs Key Findings • “Tell me” is now “show me” • 1/3 programs target packaging • 25% of retailer programs include a product-related performance standard • Green private label upsurge Emerging Issues • Sustainability = Health • Transparency and traceability • Retailers publicly reporting on targets for greener product sourcing Source: Stocking the Shelves with Green, 2010, Bernick and Guth, Five Winds International.
- 8. Institutional Procurement Trends GSA Strategically Sustainable ?
- 9. Product Metrics Mosh Pit Many Great Approaches! Sustainable Apparel Coalition Institutional Purchasing Value Chain Multi- attribute, Life cycle Retail Value Chain thinking Procurement Sustainability Initiative Building Systems
- 10. Consumers are concerned about social, environmental, and economic issues
- 11. Consumers are looking for green
- 13. Buyer Supplier Gap Single attributes, single Multi-attribute life cycle phases Full life cycle “Safe” “Local” “Greener” “Energy saving ($)” Suppliers B2B Buyers Consumers
- 14. Sustainability Metrics Maturity Leadership = Science + Marketing Optimized Enterprise Level Product Level Managed Market Driven Initial Scope Enterprise, corporate Market-driven Strategic brands or All brands, all business level brands business units units Product Attributes Single attributes Risks & Hot Spots All Environmental, Social, (water, waste, carbon, etc.) & Safety Attributes Product Life Cycle Stages Single life cycle stages Value Chain Risks & Hot Full product life cycle, (raw materials, Spots cradle to grave manufacturing, use, disposal) KPIs Measured, Reported Goals & Targets Marketing “green” Market research Market segmentation Value Mapping Source: UL Environment Terrachoice, 2011
- 15. Sustainable Product Framework Defined Criteria & Metrics NUMBER OF RESPONSIBLE PRODUCTS Business Unit A Business Unit B Environmentally Business Unit C Efficient Socially Responsible 2012 2015 2020 Safer Measureable improvement over time Consistent & credible enterprise-wide criteria
- 16. Market Translation: Link Product Framework Metrics to Customer Values • No child labor • GreenGuard Customer values Supplier Sustainable Product Values • Recycled certification Content • Supply chain • Workplace social health monitoring •… • Optimized packaging •… Translation mapping
- 17. Thank you! Product Sustainability Metrics: Closing the Buyer Supplier Gap Libby Bernick lbernick@terrachoice.com www.terrachoice.com
- 18. Produced$by$ The$New$Metrics$of$Sustainable$Business$ $ $Thank$You$to$Our$Event$Partners$ $ $$ $ $ $ $ $
- 19. $ $ $ The$New$Metrics$of$Sustainable$Business$ $ $ $ $ $ www.SustainableBrands.com$