Corporate versus product a

Sustainability. From Corporate to

Product.

Ramon Arratia, Sustainability Director, EMEAI.

The 2 paradigm shift

OLD

• Corporate sustainability

• The Beauty contest

• Awards, labels, csr reports, certifications

UPCOMING

• Product sustainability

• Embedded

• LCA performance

• kg CO2 / m2

RADICAL

• Systems sustainability

• Radical system thinking

• Close loop systems, radical materials

• Services

Old

–Doing good

–And telling about it

–Nice to have

–Stories

New

–Competitive advantage

–Embedded communications

–Core (product)

–Performance

Old

–CSR

–Corporate

–Responsibility

–CSR Report

–Greenwash, labels

New

–Sustainability

–Product

–Transparency

–Product Declarations

–Just the Facts

Transparency can only get bigger

Actually it is the key for corporate reputation

Source: Edelman Trust Barometer 2010

Embedding sustainability –Truly embedding is in your product

Courtesy of Tesco

– GHG emissions across the lifecycle of over 1,600 representative products

– Calculated it at an absolute level as well as on a per consumer use’ basis in 14 countries.

– The calculation covers 70% of our volumesCourtesy of Unilever

Courtesy of Renault

Supply chain impacts growing due to outsourcing

The 2 paradigm shift

OLD

• Corporate sustainability

• The Beauty contest

• Awards, labels, csr reports, certifications

UPCOMING

• Product sustainability

• Embedded

• LCA performance

• kg CO2 / m2

RADICAL

• Systems sustainability

• Radical system thinking

• Close loop systems, radical materials

• Services

EPDs brings alignment to the whole company

Supply ChainProduct Design and Innovation

Marketing Sales

Reporting to government and stakeholders

What you tell to your suppliers is the same that what you tell to your customers.

What your designers focus on is the same your sales force talk about.

What you report to stakeholders is the same that what your marketing claims.

It’s all base on just the facts from LCA.

EPD facts and Product Innovation

Life Cycle Analysis. The key in sustainability.

Life Cycle Analysis. The key in sustainability.

– Reduce the amount of yarn used

– Use more recycled yarn in the composition

– Invent a new yarn

What can we do to reduce the impact of yarn?

Less is more. 50% less yarn.

100% recycled yarn

Biosfera Micro. 350g yarn 100% recycled

EPD facts based marketing vs. GreenWash

Today marketing is based on 100% somethings

WHICH ONEDO YOU

CHOOSE?

Facts based marketing mandatory for cars

which drives innovation on efficiency

Fact-based marketing at InterfaceFLOR

EPDs aligns your entire supply chain

The 700 questions questionnaire

– Do you have an environmental policy?

– Do you sign to the precautionary principle?

– Have you signed to the Global Compact?

– Who is your ISO14001 auditor?

How transformative is this…?

Just one magic question to suppliers…

EPDs brings alignment to the whole company

Supply ChainProduct Design and Innovation

Marketing Sales

Reporting to government and stakeholders

What you tell to your suppliers is the same that what you tell to your customers.

What your designers focus on is the same your sales force talk about.

What you report to stakeholders is the same that what your marketing claims.

It’s all base on just the facts from LCA.

EPD facts enable smart legislation

How the magic metric enables legislation

– What is the biggest issue?

– Energy at use = gCO2/km (becomes the magic metric)

– European-wide goals for the industry on gCO2/km

– Mandatory displaying of the metric on advertising

– Company car tax: more tax if more gCO2/km

– Road tax: more tax if more gCO2/km

– City incentives: Low gCO2/km have exemptions eg parking,

congestion charge

Same story in the building industry?

– What is the biggest issue?

– Energy at use = kwh/m2, kwh/occupant/year

– Embodied carbon of materials = kgCO2/m2

– European-wide goals for the industry

– Mandatory displaying of buildings efficiency ratings

– Stamp duty: more tax if less efficient

– Local council tax: more tax if less efficient

– Building rating tools: more points if less CO2

– VAT exemptions for low embodied carbon materials