Author Archives: steven sy

Transformative Collaboration: Unilever’s Sustainable Living Plan

Tackling monumental issues such as climate change can’t be accomplished working alone. To make meaningful change we must work at scale. It will require strong guidance, a clear plan and motivated partners.

Unilever is one of the companies that understands this and has taken the steps necessary to overcome these challenges. Unilever’s goal is to decouple economic growth from the negative environmental impacts of their products. Already one of the world’s leaders in sustainable businesses, Unilever scrapped their corporate social responsibility plans and introduced a brand new, comprehensive initiative called their Sustainable Living Plan. Why did they do this? Well in Keith Weed’s (Chief Marketing and Communications Officer of Unilever) own words “sustainability must be mainstream” and it has to be permeated throughout the entire organization in order for it to make any meaningful changes. They didn’t want their corporate social responsibility centre to simply be an after thought. Instead they want to ensure that everything they do has a clear goal in mind. With this in mind, Unilever came up with a set of consistent global metrics to measure all of their environmental impacts against and they also outlined a clear goal: to be completely sustainable sourced by 2020.

But even a mega corporation like Unilever knows its limits and they understand that partnerships must be formed to achieve these lofty goals. So in 2011, they introduced their Partner to Win program and started to work closely with their 200 most important suppliers to ensure that they were employing the most sustainable practices. For example, to improve the strength of their tea value chain they worked directly with small local farmers to improve their farms. In essence, they are working to create shared value. Unilever even works with external corporations within their business ecosystem. Last year, under the Paragon Partnerships collaboration, Unilever is working with companies like Coco-Cola and Nielsen to achieve the UN’s 17 Sustainable Development Goals. While we would normally think these companies would view each as competitors and would avoid helping one another out, these corporations understand the weight of the challenges threatening the state of our global environment. They know that they share a common goal and that collaborating with one another will allow them to have bigger results.

It is fitting that Unilever has formed a joint coalition with these other businesses to accomplish the UN’s Sustainable Development Goals as the last goal outlined by the UN is to Form Partnerships. Looking at Unilever’s actions is an eye opening experience. As we move on from university we will step into the world and face much more complex issues. We will have to be open to working with other people with different personalities, skill sets and expertise in order find viable solutions that can be implemented. If we are able to do this then we will be one step closer to making a significant difference in making our life more sustainable.

Sustainability as Innovation

Believing that businesses and the environment go hand in hand, I wanted to look for an example of a company that has successfully bridged these two worlds together to find a competitive advantage. As we’ve learned in this class, sustainability is now a driver of innovation and there are many companies that follow this belief. Philips is one of these companies that perfectly embodies this and can serve as a crucial case study to learn from. Philips is a leading electronics company that has products ranging in the home furniture, appliances and medical technology segments. With annual revenues of over 20 billion euros, it is safe to say that Philips is in a position to fully embrace sustainability.

Closing the materials loop and emphasizing recyclable options throughout their history and operating their manufacturing plants on clean energy are just a few of the initiatives that Phillips Electronics are doubling down on. Additionally they are one of the few companies that follow the precautionary principle with regards to managing potentially harmful chemicals and are opting to remove as many hazardous chemicals from their products as possible. From top to bottom, almost all of the organization’s actions point towards a proactive approach towards sustainability. Their goal is to become carbon neutral by 2020 and to minimize their ecological footprint, water consumption and waste. It is clear that their philosophy as a business is to have a positive impact on the environment and the results are reinforcing this philosophy. In 2016, 58.8% of all their fourth quarter sales came from green products.

By taking an environmentally focused position and aligning their brand to embrace sustainable practices, Philips has wielded their environmental mandate as a powerful tool for innovation. Philips’ line of Hue light products aren’t just LED energy efficient lights. They also operate within a connected ecosystem with other Philips products that allows you to control the entire suite of technology using your own devices. You have complete control to adjust the colour and brightness settings. Throughout any industry this is a common trend, companies that have embraced environmental causes have been able to lead the market by constantly finding new ways to innovate their product lines and operation processes. When markets become saturated with fierce competition, companies often find themselves stagnating without little change. In this atmosphere, the businesses that are able to innovate are the ones that separate themselves from everyone else. You can look at Patagonia and their materials innovation or Unilever and their use of MuCell technology into their bottle packaging as examples of sustainability and business innovation going hand in hand. The evidence is clear that a successful business model lies in embracing sustainability in order for companies to thrive and stay one step ahead of the competition.

Regenerative Resources: Bamboo

Back in 2016, my family and I went on vacation to Disney World and we took the Animal Kingdom Wilderness Safari Tour. The tour guides took us into the depths of the colossal hybrid theme park/zoo/nature reserve as we got to see some of the animals up close and personal. Our tour guides gave us a lot of great information about the different animals and theme park easter eggs but one of things that I found most memorable was something that he said about a wooden bamboo spoon.

He mentioned that Disney and its many subsidiaries are hoping to transition all of their utensils from plastics to bamboo materials. I thought that it was a great idea to help reduce plastics but I was a little bit shocked that they would view bamboo as their best alternative. When I asked him further, my guide told me about how they want to use bamboo because it grows at such a quick speed. Making it one of the easier biodegradable materials out there to acquire and one that will make economic sense.

As regenerative resources has come up more and more in class I began to recall this little memory. Intrigued by the possibilities of bamboo I decided to dig a little deeper and investigate how businesses are using it. From the few articles that I read through I was able to find that bamboo is generally though of as one the next best sustainable materials that will be used commercially. Bamboo has been found to be a relatively low energy intensive plant to grow, it is adaptable to many different climates and is rapidly regenerative. With the same structural integrity as modern building materials, businesses recognize the viability of integrating bamboo into their everyday operations.

Companies are now taking advantage of this sustainable resource. Movement Global is using bamboo fibres to make its own line of clothing. Many construction companies are also looking into concrete filled bamboo scaffolding to supplant their Eco friendly buildings. These initiatives are just the beginning and the use of bamboo in everyday products are growing everyday. Best of all is that the bamboo acts as a carbon sink, sequestering carbon emissions in the atmosphere before it is cut down. Even though it gets processed into whatever product gets made, the carbon remains in a much more stable form than being left in the atmosphere. When people dispose of the bamboo into the compost it will slowly release back into the environment at a much more manageable rate. Reduced waste to the landfill, a readily available source and better carbon management. Bamboo is the perfect regenerative resource that companies can adopt.

What’s Really Sustainable?

One of the tools we learn about in Environmental Science that overlaps with Business is the Life Cycle Analysis. It is commonly used to assess a product or project throughout its entire lifespan from the procurement of materials to the disposal of the product or completion of a project to help determine all of the environmental impacts it may cause. Environmental consultants use it all the time to weigh the costs and benefits of alternative projects. Likewise, businesses can use it to look at how sustainable their products are and to assess where inefficiencies lie in their supply chain.

Recently, I’ve felt like I’ve had my world turned upside down through what these Life Cycle Analyses end up revealing. Many of the products that I had once thought of as environmentally friendly have turned out to be the very opposite. Green washing claims, eco labels, social norms and companies boasting minor green achievements have all blurred the lines into what is believable and credible. For example buying locally grown foods at my grocery store makes me feel better about my purchasing habits. Yet I recently found out that out of season fruits that have to be grown in a greenhouse actually requires far more energy than it does to ship food from California. Reading the Sustainable Materials Management Coalition and learning that those thin non-disposable plastic packaging slips are actually more sustainable than the recyclable cardboard boxes was an astonishing revelation for me. Conventionally we think of any form of plastic as being unsustainable, yet the reality is that using the recyclable packaging actually requires a greater amount of resources and makes shipping less efficient. But when it comes down to it, its not just about whats most sustainable.

Companies continue to use these cardboard boxes because of they want to avoid any backlash that would be received from concerned but uninformed consumers. Like wise, in one of my other classes we read an article describing the results of various LCA studies. While they pointed to positive examples like how aluminum is one of the best re-useable materials available as it has a 90% reclamation rate, they also highlighted occasions where sustainability was passed over in favour of other priorities. In particular they went into detail about the debate of plastic juice bottles vs the carton boxes. The company behind Tropicana orange juice wanted to find out which of these 2 option were more sustainable so they performed rigorous studies to evaluate the entire life cycle of both options. You probably already know the results of their findings. The carton boxes beat out the plastic packaging in almost every category and so Tropicana continues to use their carton boxes. They continued this trend towards sustainability up until their competitor started selling orange juice in big plastic bottles. It turns out that consumers would choose the plastic bottles because they could see the actual orange juice, making it more tangible for them. As Tropicana started to lose out on market share, they abandoned their more sustainable packaging in favour of the see through plastic bottles. While not much can be done to change the result, this unfortunate conclusion serves as a reminder that businesses must ensure that quality is not compromised. At the end of the day we need to really consider the entire life cycle of the things we use despite whatever sustainable claims companies make.

Designing Better Products: Modular Design

In my last blog I talked about the importance of designing better products and how biomimicry can help us accomplish that. Here, I’ll be looking into another aspect of making better everyday products. As more companies are transitioning from a cradle to grave mentality towards a cradle to cradle line of operations the importance of modular design as a driver for sustainability continues to grow. With our current ecological footprint, we need to find ways to minimize our waste and to incorporate processes in our systems that finds new value in other outputs from our supply chain that would normally be thrown out. This shift towards the circular economy is a trend that can not be ignored any longer. It is crucial not just to improve on a company’s environmental impact but to facilitate a culture of innovation.

A look at Interface’s history and the So Right, So Smart video can provide us with convincing evidence of the benefits of this modular mindset. Instead of producing entire rolls of carpets, Interface revolutionized the industry by producing tiles that could be combined together.In doing so they not only reduced what was going to the landfill, they were able to significantly reduce their costs by removing the excess trimmings that would be cutoff when fitting the carpet to a specific project. Efficiency was improved as installation speeds increased and the tiles became universal to fit any pattern layout.

Modular design has also changed how consumers access technology that would normally be beyond financial reach. The newest versions of smart phones like the iPhone Xand Samsung Galaxy 8 can cost upwards of a thousand dollars and traditionally only last two to three years. Something so ubiquitous and accessible is a significant investment for even university students. Unfortunately, this high price point acts like a barrier for the underprivileged and its weird to think about how many people don’t have one of the most basic items as a result.

 

Essential is a company leading the way by utilizing a modular design to change the way we buy phones. The base model of the phone comes at a reasonable priced figure and provides all the basics someone is looking for in a phone. However, these same customers are free to purchase additional “mods” that augment the phone. This ability to personalize a custom phone to meet individual needs at whatever price point they can afford is a strategy that will help to break down social barriers. This strategy is a unique twist on the good, better, best business model. When ever you walk into a store you’ll often notice that the store will have 3 different variations or brands of the exact same item but with 3 different levels of prices. The lowest priced brand is by all accounts a good product and does the job when solving a customer’s needs. The middle one is of a little better quality. While the highest priced brand goes the extra mile and is generally considered the best of the three. Why doesn’t the store just pick one of these brands to put on their shelves? They decide to carry all the 3 brands of the product so that customers can have the option to choose the product that fits within their budget. By choosing a modular design, Essential is able to target all 3 of the good, better, best segments at the same time. The potential of modular design extends far beyond profits and expanding market share. As we can see with these phones, modular design can help to tackle social issues by making newer technologies and products more accessible for everyone.

Nature as Inspiration: Designing Better Products

One of the things that I noticed we all seemed to struggle with as a class is how we grapple with the idea of creating things that are just going to be thrown out into a landfill. Even though we all want to make things that are more efficient, produce less waste and have a lower environmental impact, consumers are always looking for something new. I think that we all agreed that we need to shift our focus towards creating goods that are multi-use, have a longer life cycle and are even regenerative. In my mind, the best way to start this transition is to approach things from a design perspective. As Thomas Watson Jr. eloquently put it, “good design is good business”.

In one of my other classes – Environmental Design 231: Thinking by Design – we look at a lot of examples of putting ourselves in a mindset that allows us to design better products. One of the company’s that often gets pointed out is IDEO. This cutting edge design firm is constantly challenging themselves to think of creative product designs that aren’t only easier to use but provide customers with viable solutions to problems they didn’t realize they had. By directly targeting one of the core C’s of marketing and focusing on Customer Wants and Needs IDEO has made a name for itself designing products that are intuitive and that people want to use over and over again.

One thing that they described was looking to Nature as a source of inspiration. Over the span of millions of years, a countless number of species have all adapted and evolved to do one thing: survive. Highly tuned to become the most efficient organisms in their surroundings nature has created some of the most remarkable case studies that we can learn from. The concept of biomimicry that these designers use is exactly that. It involves looking at something in nature to inspire an idea and then applying it in a design to make something more useful or efficient. Michael Pawlyn hosted a TED talk about biomimicry and went into detail describing how nature has specifically influenced architecture.

One of the examples that stuck out to me the most was how architects looked at the Namibia Beetles in a desert environment where they were trying to combat desertification. They realized that this one beetle was able to thrive in a blistering area where there was essentially no water by becoming cooler than its surrounding and causing condensation all because of matte black colour. The tiny hydrophilic bumps and grooves on its skin would then help to funnel the water down to its mouth. Just by standing in place and st

retching out its wings, this beetle was able to create its own water out of thin air. The architects then designed a greenhouse that uses sea water to cool down the surrounding temperature (allowing for plants to grow more easily) and also filters the sea water into freshwater. This created a regenerative cluster that quickly created a lush green area surrounding the greenhouse in a previously barren desert.

As an environmental scientist, this particular topic resonated with me on a deeper level. Combining insights into nature with the design process is an inspiring idea for me that I believe will drive us to create better and more sustainable products.

Creating a Relationship with the Community – Telus Communications

One of the things I’ve been thinking a lot about since joining this class back in September is how Sustainability Marketing should be viewed as building a relationship. From building community roots in the creating shared value article to shifting our focus from the standard 4 P’s of Marketing towards the 4 C’s. This idea of a relationship between companies and consumers as the future of marketed has remained a focal point throughout the entire course. There are countless examples of real world businesses applying this idea to increase their presence in the market and to create innovations where none existed. Here in Vancouver we can look at the telecommunications giant, Telus, to see the impact they have within the community and how they leverage this into a competitive advantage.

One look at at the organization’s business operations and it is easy to see how sustainability is one of the core pillars of their brand. They continually advocate for an increase in “work from home programs”, they build up their portfolio of LEED certified buildings and enforce higher supply chain standards. These not only help to lower overhead costs, they also improve employee efficiency and reduce environmental impacts. As a particular example, by allowing their staff to work from home Telus avoids the costs necessary to power and maintain an office while also drastically reducing the greenhouse gases released from employees commuting to work. Instead of getting stuck in traffic for an hour workers under this flexible structure now also have more time to focus on their actual jobs. In 2015, the company was named as one of the top 100 most sustainable corporations on the Global Knights 2015 list. That year Telus ranked 37th, a vast improvement from their previous ranking of 70th in 2014.

While most companies would be happy to call it a day and pat themselves on the back for this kind of sustainability achievement, Telus continued to take their efforts one step further. Free wi-fi on public transit busses and billion dollar investments to improve their telecommunications infrastructure may just be simple win-win acts whose benefits to the local area come as a byproduct of a giant corporation reinforcing its position in the market. But this is just scratching the surface of how Telus gives back. Aside from their actual day to day operations I was surprised to discover how much they give back to their local communities. A quick dive through the company’s list of past initiatives within just this past year paint a picture of a company that has deep roots in the community. Their impact is vast and widespread, supporting a multitude of issues ranging from promoting the arts to social justice issues like tackling homelessness and supporting Indigenous families. Telus even stepped in recently and put in a $150,000 sponsorship to help keep the Vancouver Santa Claus Parade alive.

Through their sustainability initiatives and community outreach programs, its clear that Telus has  approached their business as a way to create shared value. Truth be told, while I think that the lessons I’ve learned in this class are encouraging signs of how business can have a positive impact there was always a voice in the back of my head that would question just how much companies benefit from these efforts. But looking more and more into how Telus operates, the happier I am knowing that I use them as a provider and I’m actually more inclined to continue supporting them. Its now clear to me the value that businesses and consumers receive when a strong community relationship is built.

Sustainability and Businesses: a Powerful Combination

For myself, business and environmental sustainability go hand in hand. One of the most common ways a company produces profits is by reducing costs and being as efficient as possible. Studying as an Environmental Scientist, I have always preached emphasizing the benefits of environmental initiatives to help sway the general public’s opinions on sustainability. But up until just a couple weeks ago, I’ve always thought that sustainability would only extend to a company’s bottom line – a means to save money. This line of thinking aligns perfectly with sustainable thinking. By reducing wastes and stream lining processes, a company not only reduces their environmental footprint, they also save time and cut down on costs which in turn leads to higher year end results.

Reading Porter’s article about creating shared value has given me an exciting new perspective on how business and the environment are even more intertwined than I thought. By tackling social and environmental issues, businesses can also create economic value. In this sense by adopting sustainable initiatives businesses can attract  a wider audience as they continue to innovate – effectively improving their top line.

With this new found insight on sustainability marketing, I’m beginning to recognize how many companies are actively employing sustainable initiatives to add to both their top and bottom lines. Take for example Alcoa Corporation – a major producer of commodities such as Aluminum – who were recently named leaders in the World Index for Dow Jones Sustainability Indices. Over the summer I was fortunate enough to visit one of their aluminum smelting factories during my trip to Iceland. At the tour of the facility the operators emphasized how they were continually adopting more efficient smelting techniques that would produce less waste and how this particular factory was run entirely on renewable energy sources. They also highlighted the social issues Alcoa attempts to solve – providing education and less taxing work schedules for their employees. By taking on initiatives that were once thought of as adding significant costs, Alcoa has created value in building a more sustainable business with much happier and efficient workers. My experience observing Alcoa’s smelting facility in Iceland is just a small sliver of what has made them an industry leader but it remains a prime example of businesses using sustainability to create competitive advantages.