The document discusses the importance of product sustainability metrics in bridging the buyer-supplier gap within sustainable business practices. It highlights the shift towards transparency and traceability in retail procurement, with a focus on emerging consumer trends and the need for measurable improvement in sustainable product offerings. Key findings indicate a growing emphasis on environmentally friendly packaging and performance standards in procurement programs across major retailers.

1. Produced$by$
The$New$Metrics$of$Sustainable$Business$
Product$Sustainability$Metrics:$
Closing$the$Buyer$Supplier$Gap$
Libby$Bernick,$Vice$President,$TerraChoice$
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2. Product Sustainability Metrics: Closing
the Buyer Supplier Gap
Libby Bernick
October 24, 2011
Wharton IGEL Sustainable Life Media Event “Redefining
Value: The New Metrics of Sustainable Business”
www.terrachoice.com

3. UL Environment
Helping to grow the world’s most sustainable companies
Capture
Market
Provide Trust & Value
Transparency
Understand Environmental Marketing &
Communications
Sustainability
• Market Research and Positioning
• Product & Supply Chain Strategies
• Sustainable Product Development and www.terrachoice.com
Launch EPDs

4. Product Sustainability Metrics: Closing
the Buyer Supplier Gap
Trends and Emerging Issues
Buyer Supplier Gap
Possible Solutions

5. Market Drivers: Research and Info
Sources
Consumer Products. Annual
surveys in Canadian & US retail
stores, 2007 – 2010.
Approx. 70 product categories.
Ongoing surveys of federal, state and
provincial procurement agencies,
Canada & US.
20 largest global retailers, survey &
analysis of sustainable product
procurement programs. Stocking the
Shelves with Green, 2010, Bernick,
et al.

6. Greener retail world

7. Retailers’ Sustainable Procurement
Programs
Scope of Study
• 25 global retailers
• 50 procurement programs
Key Findings
• “Tell me” is now “show me”
• 1/3 programs target packaging
• 25% of retailer programs include a
product-related performance
standard
• Green private label upsurge
Emerging Issues
• Sustainability = Health
• Transparency and traceability
• Retailers publicly reporting on targets
for greener product sourcing
Source: Stocking the Shelves with Green, 2010,
Bernick and Guth, Five Winds International.

8. Institutional Procurement Trends
GSA Strategically Sustainable
?

9. Product Metrics Mosh Pit
Many Great Approaches!
Sustainable Apparel Coalition
Institutional
Purchasing Value
Chain
Multi-
attribute,
Life cycle Retail Value Chain
thinking
Procurement Sustainability Initiative
Building
Systems

10. Consumers are concerned about social,
environmental, and economic issues

11. Consumers are looking for green

13. Buyer Supplier Gap
Single attributes, single
Multi-attribute
life cycle phases
Full life cycle
“Safe” “Local”
“Greener” “Energy saving ($)”
Suppliers B2B Buyers Consumers

14. Sustainability Metrics Maturity
Leadership = Science
+ Marketing
Optimized
Enterprise Level Product Level
Managed
Market Driven
Initial
Scope Enterprise, corporate Market-driven Strategic brands or All brands, all business
level brands business units units
Product Attributes Single attributes Risks & Hot Spots All Environmental, Social,
(water, waste, carbon, etc.) & Safety Attributes
Product Life Cycle Stages Single life cycle stages Value Chain Risks & Hot Full product life cycle,
(raw materials, Spots cradle to grave
manufacturing, use, disposal)
KPIs Measured, Reported Goals & Targets
Marketing “green” Market research Market segmentation Value Mapping
Source: UL Environment Terrachoice, 2011

15. Sustainable Product Framework
Defined Criteria & Metrics
NUMBER OF RESPONSIBLE PRODUCTS
Business Unit A
Business Unit B
Environmentally
Business Unit C
Efficient
Socially Responsible
2012 2015 2020
Safer
Measureable improvement over time
Consistent & credible enterprise-wide criteria

16. Market Translation: Link Product Framework Metrics
to Customer Values
• No child labor • GreenGuard
Customer values
Supplier Sustainable
Product Values
• Recycled certification
Content • Supply chain
• Workplace social
health monitoring
•… • Optimized
packaging
•…
Translation mapping

17. Thank you!
Product Sustainability Metrics: Closing the
Buyer Supplier Gap
Libby Bernick
lbernick@terrachoice.com
www.terrachoice.com

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