Opportunities for Sustainable Chemistry to

Transcription

1 Opportunities for Sustainable Chemistry to Meet Supply Chain Stakeholder Demand Roger McFadden Vice President, Senior Scientist Staples, Inc.

2 Presentation Overview Demand for safer alternatives. Impact of ineffective consumer product design. Why sustainable chemistry? Primary motivations for consumer product businesses to pursue sustainable chemistry. Why Apply Sustainable Chemistry to Consumer Products? Staples Demand for Sustainable Chemistry Sustainable Chemistry Obstacles Sustainable Chemistry Opportunities

3 Demand for safer alternatives Accelerated volume of chemical related communications Rising role of social media Growing controversy around green marketing Emerging chemical legislation -- foreign and domestic

4 Impact of Ineffective Consumer Product Design Potential risk to human health and/or well-being Potential harm to the natural and built environments Potential damage to business reputation and brand Decreased ROI for businesses Higher consumer product prices Increased costs to communities and taxpayers

5 Why sustainable chemistry? Sustainable Chemistry is not just a nice thing to do for the environment - it s important to do for a business Create sustainable business practices Commercially viable (Financial benefits) Preserve our natural resources (Environmental benefits) Look after our workforce and communities (Social benefits) Better long-term business performance Competitive advantage Environmental Benefits Financial Benefits Win, Win, Win Social Benefits

6 Primary motivations for consumer product businesses to pursue sustainable chemistry Enhancing brand reputation Increasing revenues Compliance with regulations and policies Primary motivation for pursuing sustainable chemistry Generating shareholder value t i bl h i t Managing risks Reducing operating and logistics costs Differentiating products or services Attracting & retaining employees and customers

7 Why Apply Sustainable Chemistry to Consumer Products? To meet the demand for safer consumer product alternatives. To meet the demand for safer chemicals and materials. To meet the demand for sustainable product designers. To meet the demand for chemists with basic understanding of toxicology. T t th d d f i d dibilit l t d t f To meet the demand for increased credibility related to safer alternative product claims.

8 Staples Demand for Sustainable Chemistry to Meet Sustainability Objectives for Product and Packaging Sustainability is increasingly important to customers, Associates, and the communities where a company operates. As the world becomes more transparent, the importance of sustainability will only increase. For many retailers like Staples, ninety plus percent of their environmental impact is embedded in the products they sell. By working with suppliers on product and packaging sustainability retailers can reduce their environmental impact and create business value for themselves and their suppliers. To be successful, deep collaboration will be required with our most strategic suppliers to apply sustainable chemistry at the design stage of products and packaging.

9 Businesses need a scaling mechanism Key environmental challenges vary by product and lifecycle stage It is impractical for one business to take part in all product innovations Manufacturing Hundreds of Thousands of Products Raw Materials Distribution/Retail Thousands of suppliers End of Life Consumer

10 Staples race to the top sustainability strategy aims at moving our suppliers to offer products in dark green by implementing sustainable chemistry and sustainable engineering Today Tomorrow Fewer SKUs More SKUs Dark Medium Light Green Dark Medium Light Unsustainable SKUs Fewer SKUs More SKUs

11 Sustainable Chemistry and Consumer Products Obstacles Complex multi-tier supply chain Consumer chemophobia and lack of knowledge and information about existing and new chemicals Risk of unintended consequences of greenwashing or offering safer alternatives without clear definitions and verifications. Absence of a well defined alternatives assessment process Abundance of marketing hype and shortage of sustainable chemistry and sustainable product design.

12 Sustainable Chemistry and Consumer Products Needs and Opportunities Priority on eliminating the hazard substance without sacrificing product performance. Consider toxicity, persistence or bioaccumulation, frequency of use, potential ti for exposure to sensitive populations including children, women of childbearing age and the elderly with compromised immune systems. Identify safer materials and product alternatives that are readily available and based on sustainable chemistry. Consider the costs associated with transitioning to safer alternatives created using sustainable chemistry.

13 It is time for implementing sustainable chemistry into consumer product design "There are risks and costs to a program of action. But they are far less than the long-range risks and costs of comfortable inaction." John F. Kennedy 35th president of the United States

14 THANK YOU Roger McFadden VP, Senior Scientist Staples