Who s Driving Here: Balancing Factors Impacting Product Stewardship Decision-making

Transcription

1 Who s Driving Here: Balancing Factors Impacting Product Stewardship Decision-making Jonathan Nwagbaraocha Environmental Affairs Manager, Xerox Corporation The views expressed in this presentation are those of the author alone and not of any institution the author is or was associated with.

2 Agenda Drivers of Product Stewardship Goals and Benchmarks Implications for an Unbalanced Approach Finding Ideal Balance

3 Who s Driving Here: Balancing Factors Impacting Product Stewardship Decision-making DRIVERS OF PRODUCT STEWARDSHIP GOALS AND BENCHMARK

4 Defining Product Stewardship Responsibly managing the health, safety, and environmental aspects of raw materials, intermediate, and consumer products throughout their life cycle and across the value chain in order to prevent or minimize negative impacts and maximize value

5 4 Drivers of Product Stewardship Regulatory Requirements Cost Product Stewardship Market Initiatives Corporate Social Responsibility

6 Regulatory Requirement Driver Mandatory requirements established by government regulation Key Stakeholders include: Internal Product Design and Delivery Packaging Environmental, Health, Safety, and Sustainability In-House Counsel Procurement External Supply Chain Partners

7 Market Driven Initiative Driver Non-mandatory requirements driven by customer expectations, competitor activity, government policies, and industry standards Key stakeholders include: Internal Product Design and Delivery Packaging Environmental, Health, Safety, and Sustainability Procurement Marketing and Sales External Supply Chain Partners

8 Corporate Social Responsibility Driver Business approach that contributes to sustainable development by delivering economic, social and environmental benefits for all stakeholders Key stakeholders include: Internal Communications Human Resources Government Affairs Environmental, Health, Safety, and Sustainability Office of General Counsel External Supply Chain Stakeholders

9 Cost Driver Establish baseline financial limit of design and management of products Key Decision-makers Internal Product Design and Delivery Procurement Marketing and Sales External Supply Chain Partners

10 Who s Driving Here: Balancing Factors Impacting Product Stewardship Decision-making IMPLICATIONS FOR AN UNBALANCED APPROACH

11 Lead Driver: Regulatory Requirements Regulatory Requirements Cost Product Stewardship Market Initiatives Corporate Social Responsibility Disclosures

12 Lead Driver: Regulatory Requirements cont. Rewards Ensure compliance with legal requirements Establish baseline for design, use, and disposal of products Risks May focus too much on baseline compliance May not encourage innovation related to product stewardship Potential market shares issues

13 Lead Driver: Market Initiatives Regulatory Requirements Cost Product Stewardship Market Initiatives Corporate Social Responsibility Disclosures

14 Lead Driver: Market Initiative cont. Rewards Potential increase in market share Potential to encourage product innovation Risks May result in product stewardship goals which are detached from regulatory requirements Spreading resources too thin to satisfy multiple and sometimes conflicting customer expectations

15 Lead Driver: CSR Regulatory Requirements Cost Product Stewardship Market Initiatives Corporate Social Responsibility Disclosures

16 Lead Driver: CSR cont. Reward Potential to encourage comprehensive approach to product stewardship exceeding ethical, legal, commercial, and public expectations Risk If certain stakeholders excluded, could result in unrealistic and unachievable goals Creation of self-imposed standards of conduct

17 Lead Driver: Cost Regulatory Requirements Cost Product Stewardship Market Initiatives Corporate Social Responsibility Disclosures

18 Lead Driver: Cost cont. Reward Ensures product stewardship goals that are cost effective Risk Could stunt product stewardship innovation Could result in market share loss Could result in instances of non-compliance

19 Who s Driving Here: Balancing Factors Impacting Product Stewardship Decision-making FINDING IDEAL BALANCE

20 4 Drivers of Product Sustainability Regulatory Requirements Cost Product Stewardship Market Initiatives Corporate Social Responsibility

21 Ideal Balance Regulatory Requirements Market Initiatives Product Stewardship Cost Corporate Social Responsibility

22 Critical Components of Ideal Balance Engage Stakeholders Clarify Stakeholder Roles Establish Decision Making Process

23 Engage Stakeholders Purpose: Ensuring business is aware of, prepared for, and verifying compliance with developments impacting product stewardship Key Steps: Identify Stakeholders Identify Tools to: Inform stakeholders of changes Assist in decision making process Communicate strategy Notify of instances of non-compliance/compliance

24 Clarify Stakeholder Roles Purpose: Ensuring effective team and organizational performance Key Roles: Tracking regulatory and market initiative changes; Provide strategic management leadership; Develop and lead the implementation of the product stewardship program; Define potential hazards, exposures and risks; Investigate and record product non-compliances and incidents; Recommend actions from non-compliances, monitor progress and verify implementation; Act in emergency situations.

25 Decision-making process Purpose: Ensure effective process to agree on strategy and actions Key Components: Deliberation Ultimate decision-maker (tie breaker of factors) Gather information Assess alternatives Setting goals Determine strategy Decide on external disclosures

26 Who s Driving Here: Balancing Factors Impacting Product Stewardship Decision-making EXAMPLE: RIGID PLASTIC PACKAGING CONTAINER (RPPC)

27 RPPC Post Consumer Content Goal Options Regulatory Requirements 0% 10% 25% Cost Product Stewardship Market Initiatives 60% 100% Corporate Social Responsibility

28 RPPC Post Consumer Content Goal Options Regulatory Requirements 0% 10% 25% Cost Product Stewardship Market Initiatives 60% 100% Corporate Social Responsibility Disclosures

29 RPPC Post Consumer Content Goal Options Regulatory Requirements 0% 10% 25% Cost Product Stewardship Market Initiatives 60% 100% Corporate Social Responsibility Disclosures

30 RPPC Post Consumer Content Goal Options Regulatory Requirements 0% 10% 25% Cost Product Stewardship Market Initiatives 60% 100% Corporate Social Responsibility Disclosures

31 RPPC Post Consumer Content Goal Options Regulatory Requirements 0% 10% 25% Cost Product Stewardship Market Initiatives 60% 100% Corporate Social Responsibility Disclosures

32 RPPC Post Consumer Content RPPC Goal Options Regulatory Requirements 0% (Not an Option) 10% (Not an Option) 25% (Baseline) Market Initiatives Product Stewardship Cost 60% 100% Corporate Social Responsibility

33 Who s Driving Here: Balancing Factors Impacting Product Stewardship Decision-making KEY TAKEAWAYS AND CONCLUSIONS

34 Key Takeaways Avoid unbalanced approach to product stewardship caused by partial, segmented, and disconnected analysis Ideal approach requires a commitment to stakeholder engagement for each driver and analysis of communication and collaboration tools

35 Conclusions Avoid Pitfalls Related to Unbalanced Approach to Product Stewardship: Acknowledge the relationship between factors and stakeholders influencing product stewardship goals and strategy; Identify stakeholders and determine tools to best engage stakeholders; Clarify roles and responsibilities of stakeholders; and Develop decision-making processes that involves stakeholders.

36 THANK YOU! Questions and Discussion

37 Sources Product Stewardship Society, Core Competencies for the Product Stewardship Professional (2014) The International Council of Chemical Associations, Product Stewardship Guidelines (2007)

38 Jonathan Nwagbaraocha Environmental Affairs Manager Environment, Health, Safety & Sustainability Xerox Corporation 800 Phillips Road Building F Webster, NY Phone: