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Science and Action: Bridging Sustainability and Business Strategy Bonnie Nixon, TSC Executive Director November 3, 2011

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Page 1: Science and Action: Bridging Sustainability and Business ... · Science and Action: Bridging Sustainability and Business Strategy Bonnie Nixon, TSC Executive Director November 3,

Science and Action:

Bridging Sustainability and Business Strategy

Bonnie Nixon, TSC Executive Director

November 3, 2011

Page 2: Science and Action: Bridging Sustainability and Business ... · Science and Action: Bridging Sustainability and Business Strategy Bonnie Nixon, TSC Executive Director November 3,

The Sustainability Consortium (TSC)

Vision The Sustainability Consortium is advancing

science to drive a new generation of innovative

products and supply networks that address

environmental, social and economic imperatives.

Mission Through collaboration, the mission of The

Sustainability Consortium is to design and

implement credible, transparent and scalable

science-based measurement and reporting

systems accessible to producers, retailers,

distributors and users of consumer products.

2

Page 3: Science and Action: Bridging Sustainability and Business ... · Science and Action: Bridging Sustainability and Business Strategy Bonnie Nixon, TSC Executive Director November 3,

Who We Are: The World’s Most Recognized Companies

See all of our members at www.sustainabilityconsortium.org/members

Page 4: Science and Action: Bridging Sustainability and Business ... · Science and Action: Bridging Sustainability and Business Strategy Bonnie Nixon, TSC Executive Director November 3,

Who We Are: World’s Top Tier Academic Institutions

Page 5: Science and Action: Bridging Sustainability and Business ... · Science and Action: Bridging Sustainability and Business Strategy Bonnie Nixon, TSC Executive Director November 3,

Who We Are: Actively Engaged Working Groups

Sector Working Groups — TSC is about SCALE as it

represents more than 75 of the largest companies in the world

including their supply chains

Consortium Working Groups — Participants consist of Tier I

members, NGOs, government agencies, and academic

institutions

Page 6: Science and Action: Bridging Sustainability and Business ... · Science and Action: Bridging Sustainability and Business Strategy Bonnie Nixon, TSC Executive Director November 3,

The Sustainability Consortium’s

European office will operate in

partnership with Wageningen

University in the Netherlands.

Wageningen UR (WUR) is the leading

agricultural university in Europe with a

strong commitment to sustainability.

WUR has strong relationships with

agricultural producers, food

processors, and retailers in Europe,

including many TSC members.

Grand Opening of TSC’s European Office – Nov. 8th

The opening ceremony and

symposium will be held in The Hague,

The Netherlands, on November 8.

Those in attendance will learn more

about what TSC can mean for their

business and vice versa.

We are honored that HRH Princess

Máxima of The Netherlands will attend

the morning program and formally

open the European Office.

Page 7: Science and Action: Bridging Sustainability and Business ... · Science and Action: Bridging Sustainability and Business Strategy Bonnie Nixon, TSC Executive Director November 3,

• We are doing something that has never

been done before for this scale, complexity

and diversity.

• We are committed to scientific rigor,

transparency and multi-stakeholder

engagement.

• We are being efficient by building on

existing worldwide lifecycle, supply chain

and product data.

• We represent the largest corporations in

the world that want science applied.

• We are defining clear standards for social

and environmental metrics and creating or

partnering to build implementable tools.

What: Advancing the Science of Sustainability

Page 8: Science and Action: Bridging Sustainability and Business ... · Science and Action: Bridging Sustainability and Business Strategy Bonnie Nixon, TSC Executive Director November 3,

How Are We Going To Achieve This?

Sustainability Measurement and Reporting System (SMRS)

8

TM

• Mainstreams and operationalizes life cycle

thinking and approaches

• Specifies common rules and metrics for

measurement of a product’s environmental

and social attributes (i.e., calorie, SPF,

inches, etc.)

• Considers carbon, water, materials,

biodiversity, toxicity and social impacts

• Provides a common platform and tools

for sharing and reporting product data

Page 9: Science and Action: Bridging Sustainability and Business ... · Science and Action: Bridging Sustainability and Business Strategy Bonnie Nixon, TSC Executive Director November 3,

What: Knowledge Creation and Management

Level 1 SMRS Category Sustainability Profiles

• Applies to the product category level (e.g. laundry

detergents, frozen beef, shoes)

• Not for product level comparison

• Promotes sharing of information

9

Level 2 SMRS Product Sustainability Declaration

• Applies to the product level (e.g. JC’s Frozen

Beef Patties)

• Allows for direct comparison of products against

the product category baseline: includes uncertainty

• Based on Baseline (LCA) Model + PCR

Page 10: Science and Action: Bridging Sustainability and Business ... · Science and Action: Bridging Sustainability and Business Strategy Bonnie Nixon, TSC Executive Director November 3,

Brand owner and

manufacturer info

Level of customization

and verification

Lifecycle inventory results

Energy, Water, Waste and

Carbon

Performance indicators

results by different

categories

3rd party criteria:

Certifications and ISO

Eco labels

Potential lifecycle

impacts

Lifecycle impact

assessment (LCIA)

midpoints

Product details

and attributes

Level 2 LCA Product Declarations

Page 11: Science and Action: Bridging Sustainability and Business ... · Science and Action: Bridging Sustainability and Business Strategy Bonnie Nixon, TSC Executive Director November 3,

Level 1 Category Sustainability Profile

11

Page 12: Science and Action: Bridging Sustainability and Business ... · Science and Action: Bridging Sustainability and Business Strategy Bonnie Nixon, TSC Executive Director November 3,

Science for the Uniform Life Cycle Models

Page 13: Science and Action: Bridging Sustainability and Business ... · Science and Action: Bridging Sustainability and Business Strategy Bonnie Nixon, TSC Executive Director November 3,

Collaborative Environment: Knowledge Base Interactive IT platform, “Knowledge Base,” enables TSC members to collaboratively

develop Level 1 LCAs and Category Sustainability Profiles

Screenshots of

the web-based

system,

Knowledge Base

Page 14: Science and Action: Bridging Sustainability and Business ... · Science and Action: Bridging Sustainability and Business Strategy Bonnie Nixon, TSC Executive Director November 3,

• Bringing academia and business together

− Business reality is pragmatism, pace &

execution with an immediate ROI

− Academic reality is the quest for data,

scientific rigor & reputation

• Addressing LCA gaps

− Toxicity, Biodiversity & Social Issues

− Data availability

− Methodology differences

− Dynamic lifecycles (temporal & macro)

− Uncertainty & robustness analysis

How You Can Contribute

Page 15: Science and Action: Bridging Sustainability and Business ... · Science and Action: Bridging Sustainability and Business Strategy Bonnie Nixon, TSC Executive Director November 3,

• LCAs are time and resource intensive

• Communications

− Difficult to communicate results

to non-experts

− Value chain diversity from raw materials

to consumers

− Complexity can lead to oversimplification

or bias

• Enable retailers to set environmental

performance thresholds for products they sell

− Educate and measure procurement and

buying community

How You Can Contribute

Page 16: Science and Action: Bridging Sustainability and Business ... · Science and Action: Bridging Sustainability and Business Strategy Bonnie Nixon, TSC Executive Director November 3,

For More Information About Membership

Contact:

Greg Lewis

Assistant Director of

Development - Sustainability

Corporate and Foundation

Relations, University of

Arkansas

Office: (479) 575-4934 I

Cell: (479) 409-8971

[email protected]

Food, Beverage & Agriculture,

Packaging, Paper, Retail, and

Measurement Sciences

Contact:

Shaun Brenton

Associate Vice President,

Corporate Relations

ASU Foundation for a

New American University

Office: 480-965-1475

Fax: 480-965-0290

[email protected]

Home & Personal Care,

Electronics, Toys, and

Consumer Science

Contact:

Koen Boone

Head Centre for Economic

Information

LEI Wageningen UR

Office:

+31 (0) 70 33 58 235

[email protected]

Page 17: Science and Action: Bridging Sustainability and Business ... · Science and Action: Bridging Sustainability and Business Strategy Bonnie Nixon, TSC Executive Director November 3,

Partnering for Transparent and Credible

Social and Environmental Research

• Generate product innovation ideas

• Reduce the environmental and

social impacts associated with

global production and consumption

• Help secure a brighter future for

next generations

Page 18: Science and Action: Bridging Sustainability and Business ... · Science and Action: Bridging Sustainability and Business Strategy Bonnie Nixon, TSC Executive Director November 3,

Extra Slides

Page 19: Science and Action: Bridging Sustainability and Business ... · Science and Action: Bridging Sustainability and Business Strategy Bonnie Nixon, TSC Executive Director November 3,

Challenges Associated With Product Sustainability

• Consumer demand for sustainable

products is increasing, which in turn

increases pressure on manufacturers,

suppliers and retailers

• Economic and environmental

inefficiencies in the supply chain

sharply impact profitability

• Science is gaining an understanding

of social and environmental impacts

and benefits

• Global regulations are emerging with

unpredictable metrics and reporting

• Cumbersome and inconsistent

surveying/scoring of manufacturers

and suppliers increases costs

Page 20: Science and Action: Bridging Sustainability and Business ... · Science and Action: Bridging Sustainability and Business Strategy Bonnie Nixon, TSC Executive Director November 3,

History of TSC and the Sustainability Measurement

and Reporting System (SMRS)

Date State

Fall 2009 – Spring 2010 Established Sector Working Groups, Measurement Science

Working Group

Spring 2010 – Fall 2011 Level 2 SMRS Prototypes – Product Category Rules and LCAs

for seven product categories

Summer 2011 – Fall 2011 Level 1 SMRS Prototypes – Product Category Dossiers for 100

product categories

Fall 2011 – Winter 2012 SMRS Reengineering Project

2012 Level 1 SMRS production; Level 2 SMRS new component

development and prototyping

TM

Page 21: Science and Action: Bridging Sustainability and Business ... · Science and Action: Bridging Sustainability and Business Strategy Bonnie Nixon, TSC Executive Director November 3,

• Hired New Executive Director, Bonnie

Nixon (previously with Hewlett Packard)

- April 2011

• Completed formal TSC assessment,

restructured organization and renewed

vision and mission

• Seated Board of Directors with

corporate, academic, and NGOs

(World Wildlife Fund & Care)

• Conducted budget analysis and

began extensive outreach into European

LCA community

• Delivered 7 Level 2 Product Category

Lifecycle Assessments (LCAs) and

tested our Sustainability Measurement

and Reporting System (SMRS) methods)

Recent Accomplishments and Near Future Plans

• Launched European Office in the Hague

which is based in the Netherlands

• Delivered 50 Level 1 Product Category

analyses and Dossiers

• Delivered 10 Category Sustainability

Profiles (CSPs) – narrative summaries

of detailed hot spot analyses,

improvement practices and stakeholder

concerns

• On target to deliver another 50 Level 1

Product Categories by January 2012

• Expanding to Asia and Latin America

and Re-engineering Level 2 LCA

methods in 2012

Page 22: Science and Action: Bridging Sustainability and Business ... · Science and Action: Bridging Sustainability and Business Strategy Bonnie Nixon, TSC Executive Director November 3,

TSC Team Approach to SMRS

22

• Identify environmental and social hot

spots and hot buttons most relevant

to their product categories

• Understand, access and develop key

indicators that will improve product

and supply chain performance

• Calculate the life cycle impacts of

products based on best available

science and data in conformance with

global standards (ISO)

• Complete environmental product

declarations in a scalable, cost-

effective way

Page 23: Science and Action: Bridging Sustainability and Business ... · Science and Action: Bridging Sustainability and Business Strategy Bonnie Nixon, TSC Executive Director November 3,

Retailers: Why Consider Joining TSC

• Harmonize standards and systems for measuring the social and

environmental impacts of products

• Substantiate “green” product claims by arming your buying

community with credible tools for measuring product sustainability

and supplier performance

• Reduce confusion in the green and fair trade marketplace

• Genuinely increase your competitive edge by engaging, educating

and empowering consumers

Page 24: Science and Action: Bridging Sustainability and Business ... · Science and Action: Bridging Sustainability and Business Strategy Bonnie Nixon, TSC Executive Director November 3,

Brand Manufacturers and Supply Chain

Partners: Why Consider Joining TSC

• Anticipate customer requirements and co-design practical and

implementable tools for measurement

• Level the competitive playing field by harmonizing standards,

measurement and reporting systems

• Prepare for emerging regulations and associated costs

• Dramatically reduce time and cost for product LCAs

• Reduce “green washing” and “fair trade” confusion

• Pool research and development funds with 100 partners and

increase product innovation and differentiation

Page 25: Science and Action: Bridging Sustainability and Business ... · Science and Action: Bridging Sustainability and Business Strategy Bonnie Nixon, TSC Executive Director November 3,

• Reduce the cost and time to conduct LCAs

and address critical sustainability issues

with research, innovation, and education.

• Gain access to world-class academic

scientists, researchers and NGO experts

• Manage risks and find out what retailers and

customers are going to ask regarding

product sustainability attributes .

• Enhance reputation through alignment with

other sustainability leaders in multiple

sectors

Partnership Benefits of Working with TSC