RETAILER PRESSURES DR. JACK LINARD UNILEVER. PCPC Science Forum 20 October 2015

Transcription

1 RETAILER PRESSURES DR. JACK LINARD UNILEVER PCPC Science Forum 20 October 2015

2 Discussion Topics Retailer Sustainability: Origins Retailers Mind the Store The WERCS Examples of Initiatives Walmart s Sustainability Index/Sustainability Leaders Target Sustainable Product Index State Initiatives Positive News Conclusion

3 Fortune, 31 July 2006

4 10 Years Ago, this month. Lee Scott Announced Walmart Sustainability Goals to be supplied with 100% renewable energy, to create zero waste, and to sell products that sustain people and the environment. "We're not going to spend our time arguing about what our goals are. Here's clearly what we ought to be doing. Here's what the end game should be. Scott faced disapproval from both inside and outside the company. "Well, the great thing about a business is, it's not a democracy," "So people can have a say, but they don't necessarily get a vote. The board gets a vote." Scott credits many of Walmart's working groups with shining the spotlight on valuable internal talent, which had a compound effect of helping to shift the culture to one that embraced sustainability. "All of a sudden, people in the company are looking and saying, 'Wow, the people who are involved in sustainability are getting promoted!'"

5 NGOs Focus : Retailers Walmart Kroger Target Walgreens Costco The Home Depot CVS Caremark Lowe s Best Buy Safeway

6 NGOs Focus : Retailers NGOs have focused for several years on state governments Implementing regulations far faster than for Federal Government A ban of a chemical in one state will have a knock-on effect of banning it on a national basis States have taken too long to enact chemical management regulations NGOs focusing on retailers Retailers, led by Walmart, are reacting to the NGOs campaigns by questioning the need for these materials

7 Messaging by NGOs Their Agenda: Typical Messages: Eliminate Toxic Chemicals from All Products, regardless of Exposure or Level in the product Target Chemicals include preservatives, phthalates, antibacterial agents, contaminants Synthetic chemicals, especially those made from petroleum, are undesirable

8 Mind the Store: The Hazardous 100 Other chemicals listed include: - Dioxane, - Formaldehyde Donors, and - Estragol

9 Retailer s Process Limited opportunity to provide comments on proposals Potential for Unintended Consequences Helps Retailers meet their Sustainability goals

10 Q: Where do Retailers get information? A: The WERCS UPC/DPCI/GTIN Product Formulation Include all ingredients or components Chemical name, CAS No., % present per ingredient Physical Properties (e.g., ph, Flash Point, Boiling Point, etc.) EPA and State Pesticide Registration Data, if applicable Transportation Data for Ground, Air, Rail and Water

11 The WERCS: What Retailers See Basic Information VOC % by Weight (if applicable) Global Chemical Inventory Status Indicator by Organization Bi-Lingual / Safety Summary Sheet PDF (MSDS.PDF) Hazardous Waste Codes, including RCRA and applicable State codes Transportation Classifications for All Modes Safety Summary Sheet One page document used for internal hazard communication. Health, safety, first-aid, and handling information present in a standardized format Sustainability Graph Maps impact of the product against environmental and health risks and hazards

12 Who uses The WERCS?

13 Walmart s Initiative Wal Mart requiring manufacturers to phase out 10 undisclosed substances

14 Walmart s Sustainability Index Central to Walmart s ability to deliver sustainable products Launched in 2009 in collaboration with The Sustainability Consortium (TSC) Over the past two years, TSC significantly expanded the categories covered by the Index Tools are to be developed by TSC to show suppliers how to improve Index scores by addressing Key hot spots Drive efficiency Reduce waste

15 Walmart Sustainability Leaders Makes it easier to find products made by companies that have scored as best in class in Walmart s Sustainability Index. Customers shouldn t have to choose between affordability and sustainability. >10,000 items made by companies identified as leaders in a category (like televisions or plastic toys) through the Walmart Sustainability Index are marked with Sustainability Leaders badge. Does not make representations about the environmental or social impact of an individual product Indicates that the manufacturer has scored well enough to earn a badge across all of the products they make in that category.

16 Target Sustainability Initiatives

17 Target Sustainability Initiatives

18 Target Sustainable Product Index Goal: Expand selection of wellness and sustainable product choices that effectively balance price, performance, convenience. Sustainable Product Index assesses products on ingredients, transparency, minimal environmental impact, certification and key issues within product categories. UL PurView Platform collects information to evaluate products Key components to the index are: Chemicals of concern Packaging Third-party certifications Transparency in the personal care, beauty, household cleaning, baby care product and feminine care categories

19 Target Sustainable Product Index- Primary Criteria Product developed with human health in mind (70 points Total) 50 Points: Ingredients Zero points--one or more ingredients on one of Target's designated high level health concerns authoritative lists. 50 points--no ingredients on the high level health concerns lists and no generic ingredients. 20 Points: Transparency 20 points--ingredients are listed on packaging and website, ingredient purposes are listed on website and there are no generic ingredients. Minimal Environmental Impact: A product has been developed with the environment and community in mind (30 points Total) 20 Points: Packaging Product's packaging sends minimal, if not zero, waste to landfill. 20 points--how2recycle labeling present on packaging, which exhibits at least one sustainable attribute & reduces at least one environmental impact as per Global Protocol on Packaging Sustainability Points Total: Water Quality and Animal Testing Product Certifications (15 Points Total)

20 Target Sustainable Product Index- Primary Criteria Product developed with human health in mind (70 points Total) 50 Points: Ingredients Zero points--one or more ingredients on one of Target's designated high level health concerns authoritative lists. 50 points--no ingredients on the high level health concerns lists and no generic ingredients. 20 Points: Transparency 20 points--ingredients are listed on packaging and website, ingredient purposes are listed on website and there are no generic ingredients. Minimal Environmental Impact: A product has been developed with the environment and community in mind (30 points Total) 20 Points: Packaging Product's packaging sends minimal, if not zero, waste to landfill. 20 points--how2recycle labeling present on packaging, which exhibits at least one sustainable attribute & reduces at least one environmental impact as per Global Protocol on Packaging Sustainability Points Total: Water Quality and Animal Testing Product Certifications (15 Points Total)

21 New Target Chemicals on Sustainable Product Index 600 substances on Health Canada s roster of prohibited cosmetic ingredients identified Coal tars, Bisphenol A, Triclosan Target: Made the changes earlier this year without publicizing Isn t prohibiting the ingredients outright May help promote complying products or give them more shelf space. Safer Chemicals, Healthy Families plans to spotlight the list

22 State Initiatives Washington State: Specified Chemicals of Concern in children s products must be reported Parabens are on the list Maine: None of the listed Chemicals of Concern are in our products [yet] Minnesota: Formaldehyde Donor Ban Enacted in Products Marketed to Children <8 Years old; effective 1 August 2014 with 1 Year Sell-through Bill Amended May 2014 to allow up to 0.05% Free Formaldehyde; same amendment banned several uses of Triclosan Massachusetts: Toxics Use Reduction Act passed in 1989 California: Final Safer Consumer Products Regulation published Three Products with Chemicals of Concern nominated for Alternative Assessment Process: None are personal care Personal Care Products named as one of the next 7 product categories to be considered in next round of product nominations First Alternative Assessment Guidance Document available for comments.

23 Vermont: Chemicals of High Concern in Children s Products Reporting Requirement, similar to Washington State All chemicals in children s products above the Practical Quantification Limit (PQL) must be reported by July 1, 2016 Key Ingredients and PQL s Ingredient PQL (ppm) Formaldehyde 1 Methylparaben 30 Ethylparaben 30 Propylparaben 30 Butylparaben 30 BHA 10

24 Positive News: Danish EPA Based on the environmental and health screenings the following 5 were investigated: DMDM hydantoin, imidazolidinyl urea, zinc pyrithione, thimerosal and phenoxyethanol. The study showed risk of allergy using: DMDM hydantoin, imidazolidinyl urea and thimerosal; it was impossible to set a maximum concentration limit value and to calculate a risk Furthermore the risk assessment showed that use of the products is safe, at the maximum allowed concentration of the 5 preservatives too.

25 More positive news for preservation Beauty and Personal Care Summit Sponsors: Walmart, Target, Forum for the Future NGO s, Academics, Government Officials, Standards Organizations, Personal Product Manufacturers, Chemical Companies represented September 4, 2014, Chicago March 25, 2015, Brooklyn The need for new preservative systems was a key conclusion Forum for the Future is continuing to engage all parties Green Chemistry and Commerce Council will be a major player going forward Environmental Defense Fund is also evaluating preservatives

26 More positive news for preservation GC3 Preservatives Program

27 Conclusions Industry is engaging to show the importance of each ingredient and the consequences of removal Risk assessment as the best tool to evaluate product safety Unintended consequences must be avoided Preservation is a key component of assuring retailers and consumers that our products are safe to use, over the life expectancy of the product The science community must continue to stress that microbiological safety is a key attribute of any product Preserving the Palette is necessary in the short term, but Development and evaluation of new preservation ingredients, technologies, and strategies must be considered What new innovations can we invent to effectively & safely preserve our products?