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Sven ruyinx sustainability empowering the consumer to make informed decision

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  • 1. Sustainability - Empowering the Consumer to Make Informed Decisions Sven Ruyinx Accenture Malaysia Supply Chain Lead Copyright © 2010 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Executive Summary / Agenda • Sustainability remains a hot consumer topic around the world, and increasingly in Asia • Consumers continue to be concerned with sustainability and are prepared to switch products for environmental benefits • Regulatory bodies have developed multiple standards to inform consumers and industry has begun product labelling • Consumers still do not feel sufficiently empowered to make informed decisions • Industry’s approach to sustainability continues to evolve to help consumers understand how “use” of a product impacts environment • We must adopt an “and model” across Regulatory bodies, Manufacturers and Consumers…driving Product Innovation and changing consumer behaviour Copyright © 2010 Accenture All Rights Reserved. 2
  • 2. Retail Consumer are the driving force Consumers continue to be concerned with sustainability and are prepared to switch products...if convinced of the environmental benefits Consumers’ concern over climate There is a readiness to switch suppliers if change has been consistently high for environmental benefits are certified by a a number of years trustworthy source “Are you concerned by climate change?” “If a product was certified by an independent organization… would you be willing to switch to this product?” Yes, extremely 38% 40% Yes, probably concerned Yes, somewhat concerned 9% No, probably not 34% No, not very concerned 1% 11% 12% Yes, certainly No, certainly not No, not at all concerned 3% 3% 2008 2007 Survey Survey Source: Accenture End-Consumer Observatory on Climate Change Copyright © 2010 Accenture All Rights Reserved. 3 Regulatory bodies are prevalent Regulatory bodies have developed standards to inform consumers and industry has begun labelling their products accordingly Environmental and Social Responsibility Standards • Standards now cover a host of environmental issues Carbon Standards • Not all issues are covered by recognised standards • Existing standards are often not universal or recognised by consumers PAS 2050 ISO 14067 Copyright © 2010 Accenture All Rights Reserved. 4
  • 3. Consumer “Trust” still needs to be won Consumers still do not feel sufficiently empowered to make informed decisions…and trust of data is critical “Do you understand how to personally combat the “What information do you trust the most to inform effects of climate change?” you on…climate change?” Academic/ Scientific 6% 44% High associations Yes 51% Nongovernmental 7% 34% organizations Trust Internet 7% 20% Governmental 23% 15% organizations No 49% Manufacturers 25% 9% Low Never trust Sometimes trust Always trust Source: Accenture End-Consumer Observatory on Climate Change Copyright © 2010 Accenture All Rights Reserved. 5 Manufacturers focus is evolving In order to provide consumers with information they believe and can act upon, we are seeing industry’s approach to sustainability continue to evolve Evolution of corporate approach to carbon emissions 1990 2000 2010 2020 Consignment Footprint Corporate Footprint Consumer Footprint •Carbon emissions associated with •Corporate electricity saving individual consumer purchases determined •Product emissions put into context of initiatives overall lifecycle (manufacture, distribution, •Improved product labeling & accreditation •Paper recycling from independent bodies usage and disposal) •Transportation review •R&D effort to improve e2e sustainability As consumers become more knowledgeable they are likely to ask two key questions: •How can I alter my use of a product to reduce my environmental impact? •Which products are most ecologically sound across the whole of their lifecycle? Consumer Footprinting seeks to answer these questions… Copyright © 2010 Accenture All Rights Reserved. 6
  • 4. Consumer usage and life cycle impacts Understand what happens after the product is sold…is as important as understanding the manufacturing and supply chain impact. Visibility of a detergent’s carbon footprint only Only 5% of the emissions from preparing a cup gives the consumer 18% story of team are caused by the tea bag 1.2% - Distribution and storage Raw materials used to Production and distribution of detergent 0.2% - Production and distribution manufacture detergent of tea of drinking water Washing tea cup 17% 5% 5% 32% 57% 82% Boiling water Use of washing machine & disposal Production and of container distribution of milk Source: carbon-label.com Source: guardian.co.uk & earth.org.uk Copyright © 2010 Accenture All Rights Reserved. 7 Working together Industry, Regulatory bodies and Consumers must work together to achieve rapid and sustain benefits • Drive product R&D - find innovative ways to reduce total life cycle environmental impact • Standardize reporting across the globe and provide trusted information to the consumer • Improve labelling to ensure consumers have access to consistent and comprehensive information Copyright © 2010 Accenture All Rights Reserved. 8
  • 5. Questions and Answers Thank you for your time… Copyright © 2010 Accenture All Rights Reserved. 9