© 2013 Deloitte

Sustainable consumption Sustainable

Consumption

Bahare Haghshenas

Manger, Deloitte Sustainability

© 2013 Deloitte

Background

- sustainable fashion experience

Deloitte Sustainability, September 2013

© 2013 Deloitte

Deloitte and Danish Fashion Institute have asked 90 Nordic companies how they

regard their own work with sustainability. Their answers showed that:

• 7 out of 10 don’t prioritize environmental and resource challenges.

• Only 4 out of 10 are looking beyond the conventional approaches to manage

supply chain sustainably.

• Only 1 of 10 is putting high degree of effort in engaging with end-consumers on

sustainable consumption. More than the majority of the companies do not see

the re-using and re-cycling of materials as a business opportunity.

Redesigning the fashion industry

- research shows…

Global studies show that almost all consumers would choose a sustainable product

if price and quality were the same as alternatives.

Deloitte Sustainability, September 2013

© 2013 Deloitte

Sustainability

Sustainable

consumption

(active engagement)

Sustainable

production

(risk-management)

From risk to consumer engagement

Deloitte Sustainability, September 2013

© 2013 Deloitte

Why consumption & sustainability?

Deloitte Sustainability, September 2013

© 2013 Deloitte

An example from fashion

The average Nordic

consumer Water:

3650 L

Chemicals:

3 Kg

Energy:

400 MJ

Land:

13 m2

A regular pair of jeans One planet

15 Kg of clothes every

year

But a need for 2.3

planets in 2050

if we proceed with

‘business as usual’

Deloitte Sustainability, September 2013

© 2013 Deloitte

Four ways of engaging with end consumers

PROTECT THE PLANET

Models that enable

consumers to prevent

global resource scarcity,

climate change,

deforestation, eco-

system degradation and

other environmental

considerations.

RE-CONCEPTUALIZE

WASTE

Models that enable

consumers to contribute

to a holistic product

lifecycle, such as

closed loop, cradle to

cradle and other

recycling schemes.

RE-IMAGINE

CONSUMPTION

Models that empower

consumers to reduce

consumption and to do

more with less, by

offering collaborative

models such as,

leasing, lending,

repairing schemes and

durable design.

IMPROVE QUALITY OF

LIFE

Models that empower

consumers to contribute

to better societal

conditions and animal

welfare, by creating

transparency,

traceability or new

generation of cause

related marketing.

Deloitte Sustainability, September 2013

© 2013 Deloitte Deloitte Sustainability, September 2013

Protect the planet

- from passive products to consumer empowerment

Companies offer consumers a chance to

buy pro-environmental products such as

organic cotton clothing.

Protect the Planet 1.0

Nest used artificial intelligence, smart

design and consumer behaviour

understanding to re-create the simple at

home thermostat. The Nest learns how

people live in their home and helps

regulate temperatures to optimize energy

efficiency. It is user friendly, so

consumers easily learn how to program

their HVAC systems to save money and

achieve maximum household comfort.

Protect the Planet 2.0

© 2013 Deloitte Deloitte Sustainability, September 2013

Re-conceptualize waste

- from recycling schemes to lifecycle thinking

Re-Conceptualize Waste 1.0

Companies allow consumers to bring in

old products or batteries and take care

of the recycling.

Innovative schemes such as the one

offered by Puma – incorporate cradle to

cradle thinking into the design of their

garments – with considerations such as

fabric and reuse considered from product

conception. Puma’s In Cycle line is 100

percent recyclable or bio-degradable and

they offer in store collection for

consumers to return used products.

Re-Conceptualize Waste 2.0

© 2013 Deloitte

Re-imagine consumption

- from informal economies to new business models

An informal economy of sharing and

selling between consumers and reuse

via charity donations have been around

for years.

Re-Imagine Consumption 1.0

Re-Imagine Consumption 2.0

Second-hand and sharing has become

much sexier with newer models such as

the swapping scheme created by Bib &

Tuck allowing companies to harness

technology to create market potential and

new ways of creating consumer value. Bib

& Tuck has a waiting list of nearly 5,000

members.

© 2013 Deloitte Deloitte Sustainability, September 2013

Improve quality of life

- from philanthropy to active engagement

Improve Quality of Life 1.0

Companies, such as Disney’s donation

to the Boys and Girls Club of America,

use charitable donations as a form of

CSR and brand building.

Improve Quality of Life 2.0

Tom’s shoes – One for One project

Collaboration with 75 Giving Partners,

humanitarian organizations supporting in

the distribution of shoes. For every pair

of shoes a costumer purchase, one shoe

is donated to a child in need.

© 2013 Deloitte Deloitte Sustainability, September 2013

Sustainable engagement 3.0

- a holistic approach

Protect the Planet

The world’s fist garment recycling program. Converted

entire sportswear line to 100% organically grown cotton

in 1996. Use recycled nylon and polyester.

Re-Imagine Waste

Patagonia takes back consumers’ used clothing and

reuses or recycles it – since July 2005 they have

recycled 56,6 tons of clothing.

Re-Imagine Consumption

In 2011 Patagonia made a bold statement suggesting,

“Don’t Buy this Jacket” in which they urged consumers

to reconsider purchasing new products and directed

them to a new eBay partnership in which they could buy

and sell used Patagonia products. They also offer repair

on Patagonia products free of charge or at “fair prices”

and guarantee 10 day turnarounds.

Improve Quality of Life

As part of their “footprint chronicles” Patagonia includes

an interactive map of all of their suppliers throughout

the world. They also include videos and interviews with

suppliers so consumers can learn more about key

issues in the supply chain.

© 2013 Deloitte

Successful

Sustainable

Engagement

A personalized approach based on

industry, product offering and

consumer target group

New ways of

conceiving

consumption and

providing value

Creative tools to overcome the

barriers

A solid

understanding

of consumers

and their needs

Deloitte Sustainability, September 2013

© 2013 Deloitte

If you have any questions, or want

to know more about sustainable

consumption, please contact:

Bahare Haghshenas

Manager, Deloitte Sustainability

bahahag@deloitte.dk

More information

Deloitte Sustainability, September 2013

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