MOUNTAIN EQUIPMENT CO-OP Demonstrating the Best of What a Business Can Be

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1 MOUNTAIN EQUIPMENT CO-OP Demonstrating the Best of What a Business Can Be Mountain Equipment Co-op (MEC) is Canada s leading supplier of quality outdoor gear, clothing, and services aimed at helping people enjoy the benefits of self-propelled wilderness-oriented recreation. Founded by six people in 1971, MEC now has over three million members, making it the largest consumer co-op in the country. Activity: Retail sales Members: more than three million consumers Corporate head office: Vancouver, BC Website: With its emphasis on serving the outdoor consumer, perhaps it s not surprising that MEC has a strong interest in sustaining the environment. However, the breadth MEC s Sustainability Commitments 1 Business Operations Sustainability MEC will demonstrate sustainable business practices and lead by example, in particular with respect to energy, water and material use. MEC will provide a safe and respectful workplace where its employees are highly valued, treated fairly and encouraged to make a difference. 2 Product Sustainability MEC will pursue design and product innovations to minimize or eliminate negative impacts and enhance positive impacts of its products and packaging. MEC will design its products to be durable, long lasting and repairable. MEC will follow sourcing practices that ensure a safe and healthy workplace for the people that make its products, where human and civil rights are respected. 3 Sustainable Consumption MEC will promote conscious consumption by educating its members to make well-informed decisions and it will provide them with products and services that contribute to a higher quality of life, and a healthier society and environment. MEC will provide its members with alternatives to the consumption of new outdoor gear. 4 Enhance the Local Economy MEC will promote co-operatives as a means to meet collective needs and empower consumers to participate in their local economy. MEC will be an advocate in the community for issues that align with its beliefs and strategic priorities. MEC will nurture meaningful partnerships with nonprofit and community-based organizations to protect and enhance the places where they work and where they play. and scope of its sustainability policy make it unique among retailers. And it further raises the stakes by collaborating with other groups to promote environmental sustainability on a broader scale. SUSTAINABILITY POLICY MEC s sustainability policy was developed 10 years ago out of a strategy process to identify and focus on areas of sustainability. Motivation for the policy came from the grassroots its membership. The process was led by an external consultant and involved internal and external stakeholders. The result was the creation of four key pillars: 1. sustainability, 2. ethical sourcing, 3. community involvement, and 4. advocacy. Once identified, the pillars led to development of a sustainability policy. MEC believes a sustainable world reflects three interdependent principles. 1. The planet has a limited carrying capacity and we are all dependent on a healthy, functioning biosphere. 2. Individuals can best meet their needs in caring and vibrant communities. 3. A just economy is dependent on an equitable society and a healthy planet.

2 Sustainability is built on business operations sustainability, product sustainability, sustainable consumption, and enhancing the local economy (see box for MEC s commitments in each of these areas). There are two strategic goals: 1) to reduce waste and harmful substances, and 2) to improve its carbon, energy, and water footprint. The co-op s sustainability policy acts as an umbrella under which programs are implemented in order to achieve its strategic goals. The programs are measured against the goals and then the results are reflected back to the policy. IMPLEMENTATION MEC takes measures to involve members, directors, and staff in putting the sustainability policy into practice. New members of the Board of Directors participate in a sustainability training session and new staff is given training when hired. There are also ongoing training programs specific to individual positions. Each level within MEC plays a specific role in the policy s implementation. The Board of Directors, through its Sustainability Committee, oversees the strategic output on a high level and receives ongoing updates (process reports) of emerging trends and potential risks. Management aids in the process of finding pathways to goals on a strategic level, provides input on what goals are realistic (with input from the whole organization), and reviews ongoing reports. Staff members are kept informed by quarterly updates and the annual sustainability report. The following criteria guide the business decisions and strategies. Using the precautionary principle, MEC will focus on issues: that relate to the business, the core purpose, and the member needs; that have the largest impacts on natural, social and economic systems; where MEC has influence or control over the impact; where solutions are technically and economically viable; and where there are opportunities to collaborate with other organizations. ACTIVITIES Volunteerism To inspire staff and support communities, MEC s Human Resources department initiated a Volunteerism Program that is available to all employees. Staff is paid to volunteer with non-profit organizations that support outdoor activity and conservation issues. So far, 13 staff members have participated and the co-op intends to build on this in the future. Other programs include the Community Leadership Program, which allows two people every year to go to the Yukon and learn more about the Leave No Trace campaign, and the Outdoor Leadership Program, which is geared toward long backcountry trips. Sustainability is an important part of MEC s corporate culture and staff members share a passion for the outdoors and for sustainability. As a result, many staff members also volunteer on their own time or through store-supported efforts. Alternate Transportation Employees are engaged and motivated to reduce their own environmental footprints. MEC s stores have bike rooms and lockers to support staff efforts to find cleaner ways of commuting. All stores have sustainability coordinators responsible for recycling, energy issues, and organizing programs and prizes for staff participation. Mountain Equipment Co-op 1

3 Almost 82% of MEC employees nationwide take alternative transportation (public transportation, biking, or walking) to work. Almost one third regularly bike to work. Networks and Partners MEC is part of a number of regional, national, and international partnerships. The key national conservation partner is the Canadian Parks and Wilderness Society. The main national access partners are the Canadian Avalanche Centre, Leave No Trace Canada, and Paddle Canada. MEC is also a member of the UN Global Compact, Canadian Business, and the Social Responsibility Labour Association. In addition, individual retail stores have their own regional partnerships within the recreation community. MEC is taking part in three collaborative initiatives: One Percent for The Planet: a joint-effort with the Community Foundations of Canada. Securing access to Skaha Bluffs: in collaborated with government. Developing The Big Wild: founded by MEC and the Canadian Parks and Wilderness Society, and supported through its Patagonia vendor agreement. One Percent for The Planet The One Percent for the Planet program encourages business to donate 1% of sales to environmental groups. As an independent third party, One Percent For the Planet confirms that member businesses meet their donation commitments and verifies that the groups receiving funds have clear, worthwhile goals directly related to the environment. These measures deepen MEC s commitment to supporting conservation of wild places. MEC is the first major retailer in Canada to join One Percent For the Planet and it hopes this encourages other Canadian businesses to do likewise. When MEC joined One Percent for the Planet in 2007, it raised its community contributions budget to the equivalent of 1% of gross sales. This commitment, coupled with increases in sales, has meant a $12 million contribution towards conservation efforts since Products Not only does MEC have environmental programs, the co-op also strives for environmentally friendly products. MEC chooses organic cotton, recycled polyester, or PVC- free fabrics. It has eliminated polyvinyl chloride (PVC) from its drybags and personal flotation devices. All of MEC s products display the Sustainability Symbol. The co-op also encourages members to participate in outdoor gear swaps, repair and return options, and used gear donations. Its most recent program is the Garment Recycling Program whereby members can bring back used items with a 90% or greater polyester content. MEC ships those items back to Teijin, a fabric manufacturer in Japan. This program is in its early stages. Green Buildings In partnership with the Canadian Green Building Council and Natural Resources Canada, MEC has developed the Green Building Program based on four foundational principles that are considered for every new store and renovation: 1. Reduce Avoid using unnecessary materials 2. Reuse Incorporate existing materials 3. Recycle Incorporate existing materials in new ways 4. Rethink Look for new and better building solution Reduced Emissions Mountain Equipment Co-op 2

4 For 2009, MEC intends to reduce Greenhouse Gas (GHG) emissions by unit sold by 5% from 2007 levels. By 2012, it intends to reduce its absolute emissions by 5% from 2007 levels. To do this, it will use lower emitting modes of transportation (i.e. shipping less by air and more by ocean, and less by road and more by rail). MEC is also exploring third-party warehousing options in eastern Canada as well as direct-to-store shipments for some of its products. Finally, MEC will encourage transportation suppliers to use less carbon intensive options such as alternative fuels and other fuel-efficient technologies. Waste Diversion MEC is dedicated to a 90% diversion of waste from landfills. MEC s waste by disposal method is currently: Recycled: 86.2% Land filled: 7.7% Composted: 4.6% Donated: 1.5% The co-op achieves this by the following methods. Packaging: packaging materials are already minimal and recyclable; changes included reduced thickness of the cardboard stock. BioBags for Shopping: a 100% compostable and biodegradable bag made primarily from non-gmo corn. Take Back Program: collecting rechargeable and disposable batteries. Some stores also take bike tubes and climbing ropes, and some have printer toner and mobile phone return programs. This program is expanding. Paper Consumption: most of MEC s paper is used in catalogues; therefore, its primary goal is to source Forest Stewardship Council certified and 100% post-consumer recycled content paper. The bottom line is to use a minimum 30% post-consumer recycled content. ACCOUNTABILITY AND REPORTING MEC holds itself accountable for its actions by adhering to the following governing principles: Providing staff and partners with the support and resources to follow through on commitments; Measuring and monitoring progress toward meeting the commitments; Reporting on social and environmental performance in publicly available reports; Engaging staff, members, vendors, and community stakeholders in meaningful dialogue to continually improve efforts and relationships; and Providing a Board of Directors review of the Sustainability Policy every three years. LESSONS LEARNED 1. Open communications is a key contributor to MEC s success. The co-op produces an annual accountability report that is posted to its website for members and the public to see how MEC is doing in terms of achieving goals. 2. Communicate issues to all levels from Board to management to staff. 3. When communicating, it is important to identify quick successes and some tougher goals. And of course, it is important to be honest and have persistence. 4. Buy-in and support from the CEO, management, and champions on the Board are essential. Mountain Equipment Co-op 3

5 5. Employee engagement is an important part of the process. It is important for staff to share the organization s vision. This may requiring education and training, specific hiring policies, or an organizational culture change. 6. Because of MEC s relatively small size (on a global scale), having the economic weight to influence buyers and factories has been a challenge. To over come this it collaborates with other organizations and forms partnerships. 7. There are environmental trade offs; i.e. green technology may require large upfront costs. 8. Setting priorities is critical. Focus on the areas that can be influenced the most. GOING FORWARD In collaboration with staff, members and the Board, MEC has developed a new Charter and three long-term goals: 1. Activity: To increase participation in self-propelled wilderness oriented recreation in Canada. This is MEC s core reason for being. 2. Conservation: To support the creation and stewardship of a comprehensive network of parks, wilderness, and outdoor recreation opportunities in Canada. Wild places are where its members play and are life support systems for the planet. 3. Marketplace: To foster change toward environmental, social, and economic sustainability in the marketplace. This recognizes the role of the co-op as a business. In 2007, MEC articulated these goals in its Sustainability Agenda. For the next five years, while continuing to be a responsible retailer and commercially viable co-op, MEC will focus attention on: 1. Reducing material waste and harmful substances in products; 2. Improving its energy, water, and carbon footprint; 3. Improving the human condition in its factories; 4. Increasing a culture of recreation and activity in Canada, especially in relation to youth; and 5. Increasing conservation of ecologically and recreationally important places. Prepared by Karen Bains Edited September 2009 Mountain Equipment Co-op 4

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