kieran callahan business development manager ul i&i sustainability report cards what’s hot...
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Kieran Callahan
Business Development Manager UL i&i
Sustainability Report Cards
What’s Hot & What’s Not?
1. Introduction – UL / UL Information & Insights
2. What’s Driving Compliance Requests
3. What’s Driving Sustainability Data Calls
4. Risks for Retailers & Brands
5. Sustainability Examples
6. QA
AGENDA
2
UL OVERVIEW
3
The definition of safety is changing. So is UL.
Mission
Working for a safer
world since 1894 is
at the core of
everything we do.
4
UL Vision
the ability to find, connect & analyze information, supported by expertise and science, to enable innovative, compliant and sustainable supply chains
better decisions
in less time
technology
scienceexpertise
other
sustainability performance
environmentalregulatory
THE DATA FOUNDATION
(public, exclusive, secure)
THE i&i DIFFERENCE
(UL values)
THE VALUE TO CLIENTS
( + revenue // - costs)
What’s Driving Score Cards
5
Enormous Pressure in Industry
Retailers are the ultimate pinch point for NGO campaigns, but they are also under pressure to cut cost and increase sales.
RETAILER PRESSURES
Big Brands are driving their own sustainability programs and reacting to retail sustainability programs
BRAND LEVEL PRESSURES
Questionnaires being driven from the top down the supply chain making it difficult and costly to respond to data requests.
SUPPLY CHAIN PRESSURES
… will this go away?
6
Pressure on Retail / Brands / Supply Chains
Retailers are the ultimate pinch point for NGO campaigns, but they are also under pressure to cut cost and increase sales.
COMPLIANCE
Brands are driving their own sustainability programs and reacting to retail sustainability programs
SUSTAINABILITY
… will this go away?
7
Compliance
8
COMPLIANCE PRESSURE // CHALLENGE
Tens of thousands of Products containing chemicals Adhesives, Cleaners, Paints, Aerosols, OTC etc.
Increasing and Changing chemical-based regulations Federal Transportation Requirements (Ground, Air, Vessel)
RCRA (Resource Conservation and Recovery Act)
State Laws that go beyond RCRA (California, Texas, Rhode Island, Vermont, Washington etc.)
VOC Regs / State Restrictions / Fire Code
Critical/Validated Data is Needed to support Business Objectives Compliance Objectives
Sustainability Goals
9
CALIFORNIA ENFORCEMENTRegulators in California alone have obtained over $160 million in settlements from retailers since 2007.
Jan 2015 Safeway $9,870,000
Dec 2014 99 Cents Only Stores $2,362,500
Sept 2014 TJ Maxx, Marshalls, Home-Goods $2,777,500
Aug 2014 Raley’s $1,599,000
June 2014 Albertsons $3,287,000
April 2014 Lowes $18,100,000
Sept 2013 Rite Aid $12,324,000
Dec 2012 Walgreens $16,575,000
April 2012 CVS $13,750,000
Feb 2011 Target $22,500,000
May 2010 Walmart $27,600,000
May 2009 Kmart $8,650,000
Oct 2007 Home Depot $9,900,000
10
Waste Disposal Challenges? Yes or No?
CaliforniaConnecticutMichiganWashington
YES!
CaliforniaConnecticutMaineMichiganMinnesotaNew HampshireOregonRhode IslandVermontWashington
YES!
CaliforniaWashington
YES!
YesRCRA Federal Waste Corrosive - Hazardous waste in ALL 50 STATES
THE RETAILER DATA GAP
CHEMICAL COMPLIANCE & SUSTAINABILITY CHALLENGES REQUIRES YOU TO GET ADDITIONAL DATA FROM YOUR SUPPLIER BASE…
(M)SDSs – never meant to support these business needs!• Original purpose – OSHA compliance
• Supplier Mindset Minimal Disclosure / Missing Data
• Different interpretations/biases by manufacturers of (M)SDS
• Complete Transportation data missing
• “Dispose in accordance with local regulations”
• Uniform Fire Code Missing (Disposal and Storage)
RETAILER - rely on supplier (M)SDSs for critical regulatory compliance, waste, logistics, EHS, & transportation information.
The best prepared (M)SDSsDO NOT communicate all data required by Retailers
12
700,000UPC
8000
Suppliers
Product Registrations
Ingredient Data
2Business
Days Storage, Shipping,Hazard Waste, Restriction, Reports, Custom Data,Safety Data & Documents
WERCSmart™Web Portal
24/7/365 Access
THE WERCS
PROCESS WERCSmart Platform
13
Participating Retailers
14
40+
TodayA&P
Ahold USA
Albertsons
Amazon
Bed Bath and Beyond
Costco
CVS
Delhaize America
Dick’s Sporting Goods
Dollar General
Dollar Tree Stores
Family Dollar
Genuine Parts Co
The Home Depot
HD Supply
Hy-Vee
Kroger
Lowes
Meijer
McLane
New Egg
Office Depot
O'Reilly
Petco
Rite Aid
Radio Shack
Safeway
Sears
Save Mart Supermarkets
Smart & Final
Staples
Supervalu
Target Canada
Target
TopCo
Tractor Supply Company
United Stationers
Wal-Mart/Sam’s Club
Winco Foods
99 Cent Only
WERCSmart Platform
DOTOSHA NFPA EPA State/Local Green Demand
SAFETY TRANSPORT STORAGE HAZ WASTE LEGAL CONSUMER
• Stores• Dist. Ctr
• Stores• Dist. Ctr• Customers• Waste hauler• Reverse logistics• Supplier
• Dist. Ctr• Stores• Local Fire Marshall
• Reverse logistics• Waste hauler• Stores• Dist. Ctr
• Stores locations• Dist. Ctr• Waste hauler• Reverse logistics
• Stores• Consumer• Share holder
REGULATORY EXPOSURE AND CONCERNS
AREAS OF IMPACT
DATA CHALLENGES
• Green Washing
• Lack of Data
• Proof
• Selling Restrictions
• Monitoring Regulations
• RCRA Codes
• STATE Codes
• Bucket Code
• Uniform Fire Code
• Slotting Data
• Chemical Inventory
• All Modes
• Placarding Data
• Electronic SDS Access
15
Sustainability
16
Reasons for Rapid Expansion of Sustainability Programs
Sustainability Makes Business Sense – Save Money
Globalization of Supply Chains & Legislative Failure
Advocacy Campaigns by NGO’s(Newspaper Test)
Social Media & Rapid Spread of Information
Brand Building & Increased Sales Opportunities
Consumer Demand for Transparency(Safe Products)
17
Suppliers OEMs & Brands Retailers Consumers
Supply chains need to share data and collaborate to deliver products that not only comply with regulations, but are also healthier, more sustainable, and more profitable.
Welcome to the Demand Chain
The Demand Chain
Sustainability
Demand Chain that drives market requirements for better consumer products down the supply chain, opening up new business opportunities at every level.
Reduce Risks
Improve Vendor
Relations
Support Programs
GrowSales
Reduce Costs
Increase Transparency
Sustainability Benefits
Benefits
‣ Real-time Search and Filtering of Product Data
‣ Product, Component, Ingredient, and Material tracking
‣ Respond Quickly to Regulators, NGOs, and Consumers
‣ Dashboards for Decisions
Reduce Risks
Risk
Benefits‣ Educate Vendors
About Data Needs
‣ Create Transparency and Trust around Confidential Business Information
‣ Help Improve Products in Response to Retailer Criteria
‣ Respond to Rapidly Emerging Issues Around the World
Improve Vendor
Relations
Vendor Collaboration & Innovation
Benefits
‣ Proactively Screen Product Data
‣ Avoid Fines
‣ Reduce Litigation Costs
‣ Reduce Labor Required for Data Entry and Management
Reduce Costs
Cost Reduction
Benefits
‣ Implement Sustainable Product Standards
‣ Comprehensive Product and Company Screening
‣ Incorporate Custom Definitions of “Healthier” and “Sustainable” Products
Support Sustainability
Programs
Meeting Business Objectives
Benefits
‣ Put a Retailer on a Path to Being a Leader in Sustainable and Healthy Products
‣ Develop a Product Set and Tools To Help Consumers Find Healthy Products
‣ Integrate Regulatory and Sustainability Processes into Core Business Operations
‣ Gain Real Intelligence from Data
GrowSales
Increase Sales - Sustainable Products
Decision Support for Retailers, Manufacturers, Brands and Consumers that Opens Opportunities across the full Value Chain.
Retailer Support
Product Design Support
Consumer Insights
Material Supplier Support
Examples of Sustainability In Action with Brands you know.
Sustainability Examples
Target Sustainable Product Standard
‣ Designed to Help Target Buyers Screen Products for Comprehensive Sustainability Concerns
‣ Turning Sustainability Policies into Action
‣ Transparency, Ingredients, Packaging, Water Impacts, etc.
‣ Vendors Representing 7,500 Products in Household Cleaners, Personal Care, and Baby Care
Target
Walmart Driving for Cost Reduction‣ Walmart has been a clear
leader in the development of the Sustainability Consortium.
‣ Tracking Company Level Sustainability Goals and Objectives
‣ Moved to a High Priority List of Chemicals and a Priority List of Chemicals.
‣ Better Management of Supply Chains
‣ Big Data, Collected a Ton of data
‣ Primary Driver is Save Money – Live Better
Walmart
Walmart Scoring / High Priority Chemicals
Method
‣ Manage Sustainability data for the product catalog
‣ Tools for Product Designers to Compare and Select Materials
‣ Make Life-Cycle Thinking Accessible for Designers
Method
Consumer Pressure – Consumer Apps
‣ Publicly Available Ingredient Data (from GoodGuide)
‣ Permission-Based Supplier-Disclosed Ingredient (from PurView)
‣ View Against Available Regulatory Lists or Sustainability Profiles
‣ Consumer Insights
Questions
34
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