Www.outdoorindustry.org Eco Working Group November 2008

www.outdoorindustry.org

Eco Working Group

November 2008

2008 ECO Working Group Update


Agenda

• OIA Overview• Eco Working Group

– The Green Landscape– Problem to Be Solved– Member Overview– Group History– Work Product to Date– Framework and Relevance– Next Steps of Eco Index– Q&A



Outdoor Industry Association

• Mission: To ensure the growth and success of the outdoor industry

• Founded in 1989 • Premier trade association for active outdoor

recreation• Represents over 4000 manufacturers,

distributors, suppliers, sales representatives and retailers in the outdoor industry

• Govt. Affairs, Research, Education, Best Business Practices, Standards,Youth Outreach,



The “Green Landscape”

• Dozens of eco labels introduced– all with varying degrees of criteria

• Applications to the US Patent Office with the word "green" in it more than doubled from 2006 to 2007, from 1,100 to 2,400

• Consumers have become increasingly wary, of ‘green’ products– “Green Fatigue” has set in for some.




• The mass media is driving product environmental safety agenda The US government is responding…– FTC “Green” regulations being revised one year

earlier than planned– Consumer Product Safety Improvement Act –

dramatic reaction to public opinion




• Evidence suggests consumers believe the outdoor industry is already “green”– The Green Halo Effect

• Greenwashing2

1. Hidden Trade-off2. No proof3. Vagueness4. Irrelevance5. Lesser of Two Evils6. Fibbing

Source: 2TerraChoice Environmental Marketing Study



• What Does Sustainability Mean to Consumers?

– Just over 54% of consumers claim familiarity with the term and most cannot define it upon probing.

– Consumers resonate with the values associated with sustainability, not with the term itselfSource:

1The Hartman Group 2007




The Problem Defined…

We lack of a common, comprehensive, cross industry way to compare products from an environmentally considered perspective.

As a result…• Specific claims on a product’s relative “greenness”—whether real

or hype—is less effective and too often not effective for it lacks context with best practices.

• Consumers are confused and becoming increasingly skeptical• We are not making significant enough progress on reducing our

product’s environmental footprint



Member Overview

125 Registered members on site/ 109 Individual Businesses

– 65% Supplier & Manufacturer• 19% Supplier • 15% Manufacturer- Apparel • 14% Manufacturer- Equipment • 10% Manufacturer- Footwear • 6% Manufacturer- Apparel, equipment

– 8% Retailers & Reps• 5% Retailer-large format • 2% Retailers- small format • 2% Rep

– 27% Other• 11% Consultants • 7% Media• 6% CSR Consultants • 2% Government and NGOs • 1% Trade Association



Member Overview

• 40 Voting Members– 25% Supplier– 15% Manufacturer- Apparel– 15% Manufacturer- Apparel & Equipment– 15% Manufacturer- Equipment– 15% Manufacturer- Footwear– 10% Rep (1) or Other– 5% Retailer-large format

3M, Backpacker Magazine, Big Agnes, Black Diamond Equipment, Brooks Sports, Cascade Designs Inc, Chaco, Inc./ULU Boots, Cocona, Dupont Sorona, Egan &

Associates LLC, ExOfficio, Golite, Invista/Cordura, Keen, Inc., Levi Strauss & Co., Polartec, Marmot, Merrell Footwear / Wolverine, Mountain Equipment Co-op (MEC),

Mountain Hardwear, Inc., Nau, New Balance Athletic Shoe, Inc., Nikwax North America, Outdoor Research, Pacific Market International/Stanley, Pacific Outdoor Equipment,

Patagonia, Inc., Concurrent Product Dev, Petzl, praNa, Primaloft/Albany International, REI, Sierra Designs, Sierra Magazine, Teko Socks, The North Face, The Timberland

Co., Verde PR & Consulting, W. L. Gore, YKK



EWG Governance

• Executive Committee– 6 Eco Group Voting Members– Make process and planning decisions

• OIA Staff & Board representative– Connect to the trade organization

• Convening Nonprofit – Zero Waste Alliance– Process consistency, project

management, stakeholder engagement• Government – US EPA

– A local and federal perspective… on the EC

• Advisors and Stakeholders– NGOs, Academia, other

• Task Force Groups– Formed for finite period and deliverables– Any member can participate



OIA Role

• Providing financial support

• Producing, distributing and communicating all open source work product (standards documents, toolkits, guidelines, etc) to industry

• Managing members, participation fees and renewal process

• Managing and distributing all funds on behalf of the working groups

• Managing and maintaining member and communications databases

• Managing all contractors and contracts on behalf of group

• Managing and developing collaborative relationships with other associations

• Assisting in outside funder and grant recruitment

• Facilitating all working group communications to industry and other stakeholders

• Provide liaison to media and public relations support

• Helping maintain website

• Providing event logistics, planning and support, RSVPs and communications

• Providing conference call support

• Providing legal advisement

• Legislative support & monitoring

OIA facilitates the development, housing and communication of voluntary standards and best practices specific to the outdoor

industry by:



History & Work Product to Date



Vision and Mission

Vision We believe in a world where we live, recreate and do business in harmony with our land, air, water and communities. We are committed to finding solutions that will lead to positive and measurable societal change, significantly improve our environmental footprint and protect our valuable earth for future generations.

Mission The Eco Working Group will take a leadership role to develop environmental impact evaluation tools, programs, education and communication to stakeholders and consumers that will direct product life cycle and informed purchasing decisions.



Collaborative Web Site

www.oia-eco.orguser: visitoruser: visitor

password: visitorpassword: visitor



Label or Index?

LabelLabel• Consumer Facing• Designates the attainment of

a certain threshold or level of performance

• Must have a solid set of criteria and certification scheme to be credible

• Examples– Oeko Tex– GOTS– Bluesign– Energy Star

Index• Design Focused• Serves as a toolkit for

measuring and reducing impact

• Should contain right mix of science and values to balance scorecarding

• Examples:– Nike Considered– Timberland Green Index– EPEAT

79% Affirmative



Developing the “Framework”

• Framework is the road map for developing the index– Provides context for what matters to be measured– a snapshot of where you are, how are you doing, and where

can you improve• Task force convened

– Greg Scott – MEC– Jill Dumain – Patagonia– Vanessa Margolis – Nike– Pete Girard - Timberland– Eric Brody –Nau

• Multiple iterations of the model to arrive at current version, 2.5.1– Not yet “final”, may still evolve, but close– Provides backbone for a “tool-kit to measure and improve– Great step forward for that “common language”



v2.5.1 – The Eco Index Framework

Company Design Philosophy

Company FoundationCSR Values

Vision

Mission

Values Lenses (points of corporate policy and strategy)

Consu

mer Ed

ucatio

n,

Engagem

ent, a

nd O

utre

ach

Biodiversity

Company Owned & Operated Infrastructure (Non-product specific)

Com

pany A

ccounta

bility Re

portin

gCompany Social Compliance Program

Raw Materials

Processing

Product Mfg Consumer Packaging

Transport & Distribution

Use and Service

Materials

Feedstock

End of Life

Supply Chain Transportation and Logistics (embeded)

Supply Chain Packaging & Materials (embeded)

Metric Lenses (points of measure)

ClimateChemistry/

Toxics - Environment

Chemistry/Toxics - People

WasteWaterLand Use Intensity

Product Level(the Index)

Company Level

Out of Scope

Innovation

Durability and Longevity

Fitness for Use





Biodiversity


ClimateChemistry/




The impacts of increased land use intensity on biodiversity (i.e. crop rotation versus no crop rotation).

Impacts causing a significant reduction in available clean water.

Excess by-products from product creation with no immediate use (i.e. materials cut-waste).

Impacts related to an area of habitat and the species that it supports. Species reduction leading to monoculture.

Chemical impacts related to humans (directly or indirectly), with the defined hazard and risk of exposure.

Chemical impacts related to the overall ecosystem with the defined hazard and risk of exposure.

Related to the negative impacts of climate change due to increased GHG emissions (Measured in Kg of CO2 equivalents). Tied to energy consumption.






Vision

Mission


Consu

mer Ed

ucatio

n,

Engagem

ent, a

nd O

utre

ach

Biodiversity


Com

pany A

ccounta

bility Re

portin


Raw Materials

Processing



Use and Service

Materials

Feedstock

End of Life




ClimateChemistry/





Company Level

Out of Scope

Innovation


Fitness for Use






Vision

Mission


Consu

mer Ed

ucatio

n,

Engagem

ent, a

nd O

utre

ach

Biodiversity


Com

pany A

ccounta

bility Re

portin


Raw Materials

Processing



Use and Service

Materials

Feedstock

End of Life




ClimateChemistry/





Company Level

Out of Scope

Innovation


Fitness for Use




Raw Materials

Processing



Use and Service

Materials

Feedstock

End of Life



The true origin; from mining, drilling or farming. The impact of acquiring the rough feedstock

Turning the raw material into a useable resource… e.g. yarns/textiles; metals or composites

The process of turning the materials into actual products

The packaging and collateral that makes it to the consumer’s hands.

From ex-factory to the consumer’s hands

contains care and feeding including laundering, as well as general service-ability

Ultimate end of life … re-use, recycle or landfill?

Packaging requirements for movement of materials and products within the supply chain.

Movement of materials and product within the supply chain before shipping to brands.

The last stage of material preparation before assembly/ manufacture. Can range from things such as dyeing-finishing to heat treating or annodization






Vision

Mission


Company Social Compliance ProgramOut of Scope

Innovation


Fitness for Use



Packaging as Pilot Test Case

Eco Working Group (EWG) – Index Framework – V.2.5.1

Biodiversity

Raw Materials

Processing



Use and Service

Materials

Feedstock

End of Life




ClimateChemistry/






Desired Outcomes1. Set of Guidelines/Best Management Practices

– Qualitative– Broad-based– Educational– Provides a foundation for future work

2. Metrics– Identification of high priority areas – Agreement on methodologies for calculating metrics– Could use existing metrics/tools– Could be used to manage supply chain

3. Design & Performance Scorecard– Create common language– Product development aide



Next Steps



How to Get Involved

• View our work at www.oia-eco.org– Username: visitor– Password: visitor– Join the discussion- get personal username

• Volunteer for a subcommittee• Become a voting member



Q&A



Thank You

Ann ObenchainVice President, Member Services & Marketing

Outdoor Industry [email protected]

303-327-3514

Documents

Www.outdoorindustry.org Eco Working Group November 2008