A growing number of big brands are instituting recycling programs, then highlighting those efforts in corporate sustainability reports (CSRs) and to consumers. The programs are important for the environment and for retailers. But they also are important steps toward creating a closed-loop recycling future–where new goods are produced from recycled materials, then recycled again.

The following are examples of recent recycling initiatives:

• Target plans to add recycling centers to all of its 1,740 stores. The centers will accept aluminum, glass, and plastic containers, plus plastic bags, MP3 players, cell phones, and printer ink cartridges. The retailer has faced pressure to match the sustainability efforts of competitor Wal-Mart in an ongoing battle of eco one-upsmanship.
• Electronics giant Best Buy is kicking off a new recycling goal to collect one billion pounds of electronics and appliances. The program, which began April 22 (Earth Day), invites consumers to “Recycle It On.” Best Buy officials believe the company will meet the billion-pound goal over the next few years. The program does have certain restrictions. For instance, only three items can be brought in for recycling per person, per day.
• The three largest U.S. wireless phone companies (Verizon, AT&T, and Sprint) have stepped up their recycling programs for mobile phones.
• Specialty grocer Whole Foods, which already provides customers with standard recycling bins, is expanding its program in many stores to also collect corks and #5 plastics for recycling.
• Marks & Spencer, in its updated Plan A program, unveiled a clothing recycling effort–something not commonly found beyond thrift shops and the Salvation Army.  The company plans to help its customers recycle 20 million garments.

Some of the more ardent green activists believe all products should be either biodegradable or recyclable. They want the government to impose restrictions that would prevent the production and sale of items that cannot be disposed of “properly.” Such draconian measures are unrealistic, but those environmentalists are well-intentioned. They want to see complete recycling of all goods.

We too would like to see all goods recycled in a closed-loop system. As technology and economics pave the way for more extensive recycling, we will move closer to a closed-loop reality. In the meantime, the recent surge in recycling programs could be an indication that we’re heading in that direction.

Companies with new recycling programs have an opportunity to demonstrate to consumers that retail outlets can have dual roles: as recycling collection centers as well as places to buy new goods.

Two reasons companies pursue recycling efforts are:

1. It looks good. Companies can boost their environmental credentials and strengthen their brands by highlighting recycling programs for consumers. Recycling is almost universally recognized and associated with good environmental behavior.
2. It brings people into their stores. Like coupons or loss-leaders, recycling programs can attract customers–something vital to all retailers.

Recycling programs at retail centers will increase the amount of goods that are recycled, but those programs alone will not get us to a closed-loop future. Like those ardent environmentalists, more producers of goods should focus on “end of life” (EOL) disposal strategies. We’ve done that with our ecobanner display product, and many companies are beginning to design products with recyclable materials and EOL in mind. The more ubiquitous recycling becomes, and the more companies focus on designing products for EOL, the closer we’ll move to a closed-loop future.

Which other organizations are implementing recycling programs? Share visions of recycling’s future in our comments below.

In a follow-up to our prior post on Wal-Mart’s sustainability index, we are taking a look at the 15 questions Wal-Mart will ask its suppliers.

When Wal-Mart announced their Sustainability Index, they outlined the implementation as a three-part process. The initial phase consists of Wal-Mart surveying its suppliers around the globe, and asking them to answer 15 questions in four categories: energy and climate, material efficiency, natural resources, and people and community. Today we are discussing the first two categories and how AirDye® technology can give suppliers the best chance for an excellent score on the sustainability index.

Looking first at “energy and climate” policies, Wal-Mart would like to know:

1. Have you measured your corporate greenhouse gas (GHG) emissions?
2. Have you opted to report your greenhouse gas emissions to the Carbon Disclosure Project (CDP)?
3. What is your total annual greenhouse gas emissions reported in the most recent year measured?
4. Have you set publicly available greenhouse gas reduction targets? If yes, what are those targets?

It is easy to set an internal goal of reducing GHG emissions and energy use. The difficult part is modifying operations to achieve those goals. For suppliers of textiles to Wal-Mart, using AirDye technology to dye and decorate could reduce their GHG emissions by up to 84 percent, not to mention this process uses up to 87 percent less energy. A simple, cost effective solution with significant and measurable results.

Under the “material efficiency” category, the questions are:

1. If measured, please report the total amount of solid waste generated from the facilities that produce your product(s) for Walmart for the most recent year measured.
2. Have you set publicly available solid waste reduction targets? If yes, what are those targets?
3. If measured, please report total water use from facilities that produce your product(s) for Walmart for the most recent year measured.
4. Have you set publicly available water use reduction targets? If yes, what are those targets?

Using AirDye also helps in this category, because it not only uses no water at the point of coloration, it reduces both working loss and excess inventory. AirDye simply uses air to dye and decorate synthetic fabric, bypassing the liquid state of dye altogether. Instead of mixing dye with water and placing it on the surface of a fabric, our process transforms dye from a solid to a gas, eliminating the liquid state and therefore the need for water.Traditional processes can see working loss rates of 10-15 percent, but with AirDye, working loss rates are around one percent. Additionally, AirDye improves material utilization by allowing manufacturers to run smaller lots. Without the imposed overages of traditional methods, the supply chain is automatically more sustainable. Suppliers can also carry less inventory, as AirDye allows for easy and fast reordering of an exact product amount.

Another significant advantage of  this revolutionary process is that the local water supplies are not polluted due to dyeing and solid waste is drastically reduced. Thus eliminating a major sources of pollution in the textile industry, and allowing manufacturing to take place in more strategic locations.

These questions are aimed at creating transparency and measurable practices, helping Wal-Mart compare companies, and better manage their suppliers. The answers will help quantify where companies currently stand. If your company is a Wal-Mart vendor and you’re using AirDye you can feel confident that you are leading the pack with sustainable production, backed by Life Cycle Assessment (LCA) research, with quantifiable, verifiable benefits.

According to a new study conducted by Miller Zell, our nation’s retailers are missing the boat when it comes to offering eco-friendly products. In fact, the survey finds that half of all shoppers are willing to pay more for green goods and they universally dissatisfied with the sustainability information.

An interesting finding from the study uncovers a higher willingness of lower income shoppers to pay a premium for green products. In fact they are more likely to pay for eco-friendly items than middle or upper income consumers. Why are lower income shoppers more willing to shell out a higher percentage of their hard-earned cash for “green goods”? Some speculate that this is due to Gen Y Millennials who have just entered the workforce, and who make up a disproportionate percentage of the lower income bracket.

The Miller Zell study also indicates that there is an opportunity for companies to supply more green information at the shelf level. On average, 40 percent of consumers desire more information about green products, with Gen Y Millenials listed as the most interested segment. Although consumers yearn for an increased amount of quality information, retailers are not delivering. The overall availability of in store information on green products received a D- from those who participated in the study. All of this is good timeing for Wal-Mart’s new sustainabilty index labels. The team in Arkansas seem to, once again, know exactly what consumers are looking for.

photo credit: Miller Zell study Stores Not Doing Enough to Sell Green

As part of our effort to help your company identify consumer trends, we are looking at sustainable packaging. A recent Datamoniter study identified sustainable packaging as a growing consumer issue, with over-packaged goods being a major concern worldwide.

With over 50 percent of purchasing decisions made at the point of purchase, we know how important packaging is to product sales. The Datamoniter survey was conducted in over 15 countries, including the U.S.. Globally, 44 percent of respondents identified excessive packaging as a major concern. For many, concerns over packaging extend into purchasing decisions–see charts below.

As a matter of fact, industrial giant E.I. DuPont Nemours and Company has estimated that growth in sustainable packaging will reach 25-30 percent a year, compared with overall industry growth of four percent. This estimation is consistent with a study conducted by Pike Research, which claims the sustainable packaging industry will grow to 32 percent of the total packaging market by 2014.

Impending regulation may have a role to play in this transition toward sustainable packaging as well. Many municipalities are debating instituting bans of polystyrene containers. According to the China Daily Newspaper, the city of Beijing will exceed its landfill capacity within the next five years, and has already banned plastic bags, as have cities such as San Francisco.

Matthew Adams, Consumer Analyst at Datamonitor and author of the report, told Manufacturers’ Monthly:

Sustainable packaging has the potential to become the new breakthrough consumer issue of its time, in the same way as organic food or fair-trade products a decade or so previously. Sustainable packaging need not only be seen as a worthy environmental issue but more so as a ‘win-win situation’ where consumers, producers and the environment all reap the benefits.

Fortunately, some companies are beginning to see that there are greater benefits to reducing packaging than just consumer praise. Wal-Mart, as part of their sustainability initiative, has committed to reducing their packaging five percent by 2013. In 2005, Wal-Mart’s packaging team, along with partnered suppliers, reduced the packaging on nearly 300 items in their Kid Connection toy line. Just by reducing the packaging a small amount on this one toy line, Wal-Mart was able to use 497 fewer shipping containers, and generate a savings of $2.4 million a year. Imagine how much savings Wal-Mart will achieve by reducing packaging in additional product lines.

The latest data clearly indicates consumer desire for reduced and sustainable packaging. Wal-Mart has shown the savings potential. Hopefully more companies will see this data as an opportunity to both reduce costs and reap the benefits of this emerging trend.

Tomorrow at their corporate headquarters in Bentonville, Arkansas, Wal-Mart is expected to announce the year’s most important news for consumer product manufacturers. They will be unveiling a “sustainability index” to measure the environmental impact of every product on the shelves. What’s more they will label products for consumers to read and compare. This could potentially transform retailing, as Wal-Mart is expected to require manufacturers to examine their supply chain, quantify their environmental impact, and compete for favorable treatment.

Wal-Mart plans on using the life cycle assessment methodology to measure the full environmental impact of the products it sells; meaning the product’s impact through manufacturing, use, and disposal. To accomplish this, Wal-Mart will ask its 60,000 plus suppliers to help, though this seems like a nice way of saying requirement. Wal-Mart and its suppliers will not be alone in this task.

Part of tomorrow’s announcement will include the unveiling of a Sustainability Consortium led by the University of Arkansas and Arizona State University, which will provide academic research and support to the effort. Several other institutions involved in the planning, but have yet to officially join the consortium include Duke, Stanford, Harvard, the University of California at Berkeley, and the University of Michigan.

Consumer-goods companies with household names such as Proctor & Gamble, General Mills, Unilever, and Tyson are also partners in the consortium, making this a serious and collective effort (though if this were an effort lead by Wal-Mart alone it would still be transformative). Some competing retailers have also been invited to join, including Costco, Kroger, and Target.

Wal-Mart may choose to measure a manufacturer’s sustainability in energy and greenhouse gas emissions, natural resources, materials, and most interestingly “people and communities.” For manufacturers this means knowing their supply chain inside and out, and understanding the origins of all inputs, including raw materials. This sustainability index could very well create traceable supply chains providing unheard of transparency, and that alone would be a tremendous achievement.

Had you asked me five years ago what I thought of Wal-Mart’s efforts toward sustainability, I would have told you that it was just green wash. Today I’m impressed, even astounded. They are using their industry might to create a race among manufacturers toward the most sustainable products and manufacturing methods. That’s nothing to sneeze at. Wal-Mart, which reportedly touches one third of the world’s manufacturing capacity, sees 92 percent of their environmental impact in their supply chain. To reduce their impact as part of their corporate sustainability goals, they’re looking at everything; the water and chemicals used to grow cotton in Turkey, product packaging, trucking fleets, store energy efficiency, and improved recycling. Tomorrow’s announcement should add “defining sustainable supply chain” to that list. We will keep you updated as this unfolds.