and Regulations Specialty household cleaning products Rust Stain - PowerPoint PPT Presentation

Sustainability: Marketing Pressures and Regulations

Specialty household cleaning products • Rust Stain Removers • Appliance Cleaners, • Drain & Clog Cleaners • Laundry Solutions. *Founded 1958

Walmart’s supply chain sustainability initiatives Stage 1 Launched supply chain program in 2009, AKA the Walmart Supplier Sustainability Assessment (SSA) or 15 Questions.

Walmart’s supply chain sustainability initiatives Stage 2 Implemented Walmart Sustainability Index in 2012. • Started with 100 product categories – now more than 700 • Partnered with The Sustainability Consortium

Walmart Index • Consists of approx. 12-16 questions per category to establish performance • Complete once a year • As the index matures, higher expectations are established and suppliers are expected to push further down supply chain • Scores are used to rank suppliers against their competitors • Used by Walmart buyers to make decisions

Surface Cleaner Category – 2015 Index Examples: • What % of your ingredients was produced by suppliers that reported their annual Scope 1 & 2 GHG emissions? • Do you responsibly source palm oil in your products? • What is % of recycled content in your product? • What % of your products do you disclose the ingredients to consumers online? • How do you ensure that consumers and the environment are not harmed by your products or their ingredient?

SUSTAINABILITY: Where did we start? • Developed a sustainability initiative in 2010 • Formed a “Green Team” • ISO 14001 Certification – Manage sustainability Efforts through use of a formal & organized EMS – Drive continuous improvement • Focused on Walmart Scorecard & other customer requirements – Began measuring annual GHGs (2010 - present) and set goal – Measure Water Usage & Waste Generation and set goals

• Developed sustainability flyers • Get employees involved (AIM Program) • Joined and served on the board of NISBC – Got Bright Green Certified (2 Star) • Started recycling • Started integrating green chemistry using DfE / Safer Choice • Began Supplier Sustainability Initiative • Sustainability Training • New LEED Certified Building

MECHANICAL PLAN 12 GAS FIRED UNIT HEATERS 2 MAKE UP AIR UNITS MECHANICAL PLAN 2 HIGH EFFICIENCY THERMO CYCLER UNITS FUN FACT

> BEFORE < AFTER

ADDED DAYLIGHT TO THE WAREHOUSE, 9 NEW WINDOWS WERE INSTALLED DURING THE PROJECT. FUN FACT

BEFORE > < AFTER

Packaging Design Changes 50% Reduction in Packaging, while maintaining safe formulation

Packaging Design Changes Clamshell Tray Shrink Wrap Sleeve CAD# Square Feet Qty/Pallet Total Sq Ft CAD# Square Feet Qty/Pallet Total Sq Ft G7860A4 15.58 30 467.4 G8639M1 17.45 2 34.9 Layer Pad 11.61 1 11.61 G8639J2 12.87 2 25.74 TOTAL SQ FT (EACH PALLET) 479.01 TOTAL SQ FT (EACH PALLET) 60.64 TOTAL SQ FT (250 PALLETS) 119,753 TOTAL SQ FT (250 PALLETS) 15,160 Saved 418.37 sq. ft. of cardboard & $175 for each pallet

Green Marketing • Companies are eager to market their sustainability efforts and “greener” products. • Must be careful how you do this……

Greenwashing Misleading consumers or providing deceptive statements regarding a company’s environmental practices or the environmental benefits of a product or service. GREEN APPROVED

FTC Green Guides • Designed to help marketers make truthful and non-deceptive claims about the environmental attributes of their products. • Launched in 1992 • Revised in 1996, 1998 and 2012

FTC Green Guides • Environmental claims must be substantiated and backed up with scientific evidence: – Ex. “Biodegradable” claim can be supported through testing using OECD 301 Biodegradability Method • FTC tracks and responds to false claims that “may or may not be deceptive under Section 5 of the FTC Act.” • FTC can take enforcement action, which can lead to orders prohibiting deceptive marketing and advertising and ultimately fines if the orders are violated.

FTC Green Guides - Examples Do not make broad, unqualified general environmental benefit claims:  Qualify claims with specific environmental benefits – be clear, prominent, and specific. • DO not highlight a small or unimportant benefit • Evaluate trade- offs of the claim: “Made with All Natural Palm Oil.” – May be deceptive if there are negative environmental impacts that outweigh the benefits of using the product.

FTC Green Guides - Examples Do not make claims that your product is “non - toxic” unless you have competent and reliable scientific evidence that it is safe for the environment AND people.

FTC Green Guides - Examples If recycling facilities are not available to at least 60% of the consumers or communities where the product is sold, you must qualify the claims: “This product is recyclable only in the few communities that have appropriate recycling programs.”

FTC Green Guides - Examples If recycling facilities are not available to at least 60% of the consumers or communities where the product is sold, you must qualify the claims: “This product is recyclable only in the few communities that have appropriate recycling programs.”

FTC Green Guides - Examples Source Reduction: You must qualify a claim that a product or its packaging is lower in weight, volume or toxicity. Include the amount of reduction and basis for comparison. “10% less packaging” “10% less packaging than our previous product”

U.S. EPA’s Safer Choice Program • Rigorous review process & Audit program by EPA to ensure products are safe for environment & consumers. • Summit Brands – Dishwasher Magic (disinfectant) Certified 2012 – Washer Magic Certified 2012 – Disposer Care – Woolite Dry Cleaner’s Secret • Issue Identity and Brand Guidelines • How to describe & Refer to the Safer Choice Program • Summary of Labeling Do’s & Don’ts