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UNIVERSITY OF STRATHCLYDE, , DEPARTMENT OF CIVIL ENGINEERING, DAVID LIVINGSTONE CENTER FOR SUSTAINABILITY Evian the implications on its business strategy following the introduction of legally binding carbon emission targets on governments. Environmental Business Strategy Sofia Diaz Rivera Ollivier 1/6/2012

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  • 1. UNIVERSITY OF STRATHCLYDE, , DEPARTMENT OF CIVIL ENGINEERING, DAVID LIVINGSTONE CENTER FOR SUSTAINABILITYEvian the implications on its business strategy following the introduction of legally binding carbon emission targets on governments. Environmental Business StrategySofia Diaz Rivera Ollivier1/6/2012
  • 2. 1. Executive SummaryEvian bottle water comes from the French Alps and is sold worldwide. Following climate change,the risk of water shortage and stakeholder pressure especially bottle water bad press; Evian had tohave a Sustainability Strategy to secure its business in the future. They started by protecting theirwater source and identifying that their carbon footprint came primarily from transportation andpackaging, followed by manufacturing. They took some actions to reduce its carbon footprint byshipping 59% of their production within EU by train and using boat for exports. In the packagingarea they did some lightweigthing and are using recycled PET. They also have set many actions toprotect the water source in Evian Les-Bains. They want to be carbon neutral by the end of 2011,and what they cant reduce they are going to compensate it by reforesting a mangrove in Senegal.Even though they have done a lot to reduce their carbon footprint, they are things Evian isntconsidering. For instance, their growth will come from outside the EU where their transportfootprint is larger, because distributors transport Evian mainly through ground increasing its GHGsemissions. Also even though the water source is protected it may become scarce if they extractmore water than the spring can produce. Finally even though they have done a lot to have moreenvironmentally friendly packaging consumers are responsible of the end of life disposal of Evian.This report contains recommendations on what Evian can do to tackle these new environmentalchallenges. 1
  • 3. Contents1. Executive Summary .................................................................................................................... 12. Background ................................................................................................................................ 33. Macro Analysis -PESTEL .............................................................................................................. 3 3.1 Politics.................................................................................................................................. 3 3.2 Economics ............................................................................................................................ 3 3.3 Social.................................................................................................................................... 4 3.4 Technological ....................................................................................................................... 4 3.5 Environmental ...................................................................................................................... 4 3.6 Legislative ............................................................................................................................ 44. Stakeholder analysis................................................................................................................... 45. Environmental Risk .................................................................................................................... 66. Porter 5 Forces Analysis ............................................................................................................. 6 6.1 Threat of entry ..................................................................................................................... 6 6.2 Threat of substitutes ............................................................................................................ 6 6.3 Power of buyers ................................................................................................................... 7 6.4 Power of suppliers................................................................................................................ 7 6.5 Competitive Rivalry .............................................................................................................. 77. Evian Sustainability Strategy....................................................................................................... 8 7.1 Manufacturing ..................................................................................................................... 8 7.2 Packaging ............................................................................................................................. 8 7.3 Transport ............................................................................................................................. 9 7.4 Nature & Water protection ................................................................................................ 10 7.5 Consumers & other Stakeholders ....................................................................................... 108. Analysis on Evian Sustainability Strategy .................................................................................. 10 8.1 SWOT ................................................................................................................................. 10 8.2 Recommendations: Strategic Response .............................................................................. 12 8.3. Conclusions ....................................................................................................................... 139. Reference List.......................................................................................................................... 1310. Appendix I Stakeholder Analysis .......................................................................................... 1611. Appendix II Packaging Materials Environmental Impact ....................................................... 1712. Appendix III Turnitin submission ................................................ Error! Bookmark not defined. 2
  • 4. 2. BackgroundEvian is part Danone Group Water Division; as such its shares its values. Danone placessustainability in the heart of its business strategies, having its Nature and Sustainability programsas one of the companies 5 growth pillars. Franck Riboud its CEO says My vision for Danone is acompany that creates economic value while creating social value (Grosser et al., 2010), so it iscommitted to reduce CFP by 30% from 2008 to 2012 (Sacchi, 2010).Evian water is bottled in Evian-Les-Bains, France. It takes 15 years for the water to filtrate throughthe French Alps, so it is perfectly pure and balanced in minerals. It is untouched by human hand,so it is free from pollution (Evian, 2011). Evian is the number 1 premium brand on the market, ithad a retail value share of 2% in 2010 (Euromonitor, 2011).Evian is sold in 110 countries in Europe, Asia, America and Middle East. In some countries it usesits own sales force and distribution system, mainly within the EU and outside it uses distributors.In total it uses 150 distributors. Its top national markets: France, UK, Japan, Germany and USAaccounts for 74% of its sales (Eurmonitor, 2011).Evian needs a sustainable strategy, to ensure that their actions today dont limit their business inthe future, especially to ensure their water supply. First I will go through a brief PESTEL,stakeholder, risk and Porter 5 forces analysis. Then I will describe Evian sustainability strategy, andanalyze it with a SWOT analysis. Finally I will give recommendations.3. Macro Analysis -PESTEL3.1 Politics After Kyoto, governments are using different tools to encourage and re-enforce companies to reduce their GHGs emissions: regulatory pressure; subsidies, tax, voluntary agreements, etc. (Stone & Ozimek, 2011).3.2 Economics The cost of reducing GHGs emissions is about 1% of the GDP, it is something we have to afford otherwise we will have serious economic consequences on growth (Stern, 2007). 3
  • 5. Carbon trading schemes motivates business to reduce their GHGs emissions by either buying or selling carbon allowances, which are reduced over time (Stone & Ozimek, 2011).3.3 Social Consumers are not well informed about GHGs emissions and how they can reduce them, they arent willing to sacrifice their own convenience or prices (Stone & Ozimek, 2011). Most consumers dont reward companies that are environmentally friendly but they punish those that they think are acting bad (Stone & Ozimek, 2011), for example consumers are substituting bottle water with tap water in EU, because they consider it bad for the environment (Eurmonitor, 2011).3.4 Technological Governments are incentivizing the development of technologies that reduce GHGs emissions such as renewables through funding and subsides (Coninck et al., 2008).3.5 Environmental If GHGs emissions arent reduced and temperature rises above 2C, there will be problems with water supplies and availability, among other consequences (Stern, 2007). The world needs to reduce emissions to 500-550 ppm CO2, that is about 25% of current emissions by 2050 (Stern, 2007), or otherwise businesses will need to adapt to new conditions.3.6 Legislative New laws like Chicago $5 cent tax on bottle water (Swedloff, 2008) can come into place in more countries. EU has various environmental such as the EC packaging waste directive that dictates that 25-45% of packaging must be recycled (Freire et al., 2001).4. Stakeholder analysisStakeholders are of main importance to Evian, some of them posing a serious threat, see figure 1for Evians stakeholder classification. 4
  • 6. Figure 1: Evians Stakeholder classificationSince 2007 Evian has been receiving bad press. NGOs and Green Consumers are promoting todrink tap water because bottle water packaging and transport is damaging the environment(Euromonitor, 2009). This bad press added up to the economic crisis 2008-2009 made a massivedrop in Evian sales in Western Europe which represents 60% of the market (Euromonitor, 2010)see figure 2. Also they have lost 30% of turnover in UK and England since 2007 (FAME, 2010). Figure 2: Evian off trade Volume-Western Europe (MM lts) (Euromonitor, 2010) 5
  • 7. After 2007 Evian monitors carefully stakeholders especially the ones with high power and has arisk mitigation strategy (Valdez, 2011). For further information on Evians stakeholderenvironmental motivators and the risk they pose to Evian business see Appendix I.5. Environmental RiskAn environmental risk becomes a company risk if it has economic consequences on the business(Schaltegger et al., 2003).Evian currently has two risks that put in danger its current businessmodel and profitability: 1. Bottle water bad press for damaging the environment (Eurmonitor, 2011). 2. Climate change, if temperature rises above 2C water supply and availability will decrease (Stern, 2007), and can put in risk Evians water supply.Evian needs to address this risk in its Sustainability Strategy to secure business in the future,working closer with stakeholders, developing greener packaging and protecting its waterresources. It also needs to develop a contingency plan of production if Evian-les-Bains is left withno more water to produce.6. Porter 5 Forces Analysis6.1 Threat of entryBarrier of entry are low so many private label brands are now competing on price with big brands(Euromonitor, 2011). Evian strategy is to try and differentiate itself from private label brands withhigh quality water, appealing to a certain lifestyles and investing lots of money to maintain itsbrand awareness (Valdez, 2011).6.2 Threat of substitutesTap water and water filters are the main threat to bottle water. Tap water is of special treat inEurope and North America where tap water is safe to drink. Several studies compared bottle vs.tap water and concluded that while some bottle waters have better quality than tap water, it isnot always the case (Hunter, 1993; Olson, 1999; Lalumandier & Ayers, 2000 in Doria, 2006). Itbecomes a stronger threat when consumers and organizations start promoting tap water, for 6
  • 8. example in the video the story of bottle water by Annie Leonard (2008) where she gives theexample of Clevelands tap water which is safer and cleaner than Fiji. Evian also has othersubstitutes which include soft drinks since it is competing for consumer share of throat(Euromonitor, 2011).6.3 Power of buyersMass market retailers and distribution chains such as Walmart, Tesco and Carrefour are seeking towork with suppliers that are environmentally friendly (Grosser et al., 2010). Walmart for examplehas its own product sustainability index that uses to compare different products (Walmart, 2009).So there is pressure from buyers to turn green or otherwise they will stop buying. Supermarketsaccount for more than one third of bottle water sales (Euromonitor, 2011).Other buyers are Evian s distributors outside the EU, for them Evian represents 10% or less ofwhat they sell, so Evian doesnt have a strong power over them to make them incorporate Evianssustainability strategy (Valdez, 2011).6.4 Power of suppliersCosts of PET are really volatile, and will tend to rise especially since China, India and Indonesia areproducing clothes with polyester (Boswell, 2011). This affects Evian price structure because whenPET price raises Evian isnt able to negotiate with suppliers. RPET suppliers are still few, andrecollection rates of PET are still small for example in the UK 39% of the PET used is collected and17% of the PET recollected in the EU is sent to China (Welle, 2011), making it difficult to havesufficient recycled PET to make new bottles.6.5 Competitive RivalryBottle water Industry is a competitive market, with top leading multinationals Pepsico, Coca-Cola,Nestle and Danone fighting for market share. Even though there are top players the market isfragmented, with only 18% of the volume coming from the 10 top brands (Euromonitor, 2011).The soft drink industry has moved to a more environmentally friendly production so there is anongoing war between main producing companies to see which has the most eco-friendlypackaging in the market, for example in 2009 Coca-Cola launched its plant bottle in Dansani waterbottle (Hill, 2010) . 7
  • 9. 7. Evian Sustainability StrategyWith all the factors mention in the above analysis, Evian needs a strategic management in order tosurvive, overcoming todays environmental situation and reducing its carbon footprint, whilemaintaining the company profitable and competitive. Evian has high environmental opportunitiesas well as high treats so it should have an innovative environmental strategy which includesanticipation, differentiation and acceptance of change (Schaltegger et al., 2003).Thats why Evian did a lifecycle analysis and found its carbon footprint comes mainly frompackaging and transport, followed by manufacturing (Grosser et al., 2010). Their strategy is toreduce its carbon footprint as much as possible through the use of EMS and an eco-efficiencystrategy to reduce materials, enhance its recyclability, reduce energy etc Their reduction target is50% by 2011. When they cant reduce any more, they will compensate reforesting a mangrove inSenegal in partnership with Ramsar (Valdez, 2011). Evian has the objective to become carbonneutral by 2011 (Grosser et al., 2010). If it achieves it, Evian will become a green star with higheconomic and environmental performance (Schaltegger et al., 2003). I will go briefly into thethings Evian is doing to reduce its carbon footprint through its supply chain and production.7.1 ManufacturingThe factory in Evian-Les-Bains is certified with ISO 140001. It also is has an internal EMS calledGREEN (Global Risk Evaluation for Environment), that review the environmental risks in theindustrial site, and it is audited by an external partner (Grosser et al., 2010). Evian hasntincorporated EMS into its supply chain.7.2 PackagingEvian packaging mix is 85% PET and 15% glass sold mainly in HORECAS1 (Valdez, 2011). They aredoing lifecycle analysis of all their product range and know for example that the carbon footprintof Evian 1.5 L bottle is 133 g CO2/L. They are working to reduce its packaging footprint in PETbottles through light weighting, and the use of recycled pet (Perthuisot & Jouin, 2010).They have light weighted all its PET packaging, having a 40% reduction from 1995 to 2010, seetable 1. The progress was slower than expected because older lines where harder to convert(Grosser et al., 2010).1 Hotels, Restaurants and Cafeterias 8
  • 10. Table 1: Evian light weighting through its product line 0.33 L 0.500 L 1L 1.5LBefore 12.8 g 15.8 g 27 g 32 gLight weighted 11.8 g 14.3 g 24 g 28 g(Perthuisot & Jouin, 2010)They also use 35% to 50% recycled PET depending on the format (Grosser et al., 2010). PET bottleCarbon Footprint can be reduced by more than 50% if the PET is recycled (Pasqualino et al., 2011).All of Evians efforts are in PET bottles and they arent considering that glass water has a higherenvironmental impact that PET bottled water (Pasqualino et al., 2011). Go to appendix II to seefurther information on the carbon footprint of different packaging.7.3 TransportAs said before transportation of Evian bottles accounts for an important part of its carbonfootprint. To reduce it they are increasing train shipment, 59% of the product departing from thefactory is transported thorough railway mainly within Europe (Grosser et al., 2010), railtransportation has a lower carbon footprint than planes and ground delivery (Cholette & Venkat,2009). For Asia, America and Middle East they signed a partnership with Maersk shipping totransport Evian by boat. This partnership helped reduce transport footprint by 5% from 2009 to2010 (Grosser et al., 2010).Each distributor has a different Incoterm agreement. An Incoterm outlines the obligations of buyerand seller in an international transaction (Biederman, 1999). Once the product is delivered to thedistributor where agreed in the Incoterm, Evians responsibility ends. As soon as the distributorhas the product in the port or its distribution center they can transport it by plane or groundincreasing again the carbon footprint that was reduced by transporting it by sea. When Eviannegotiates Incoterm agreements, the priority are savings not reducing Evians transport footprint(Valdez, 2011).Today almost 60% of Evian volume comes from Europe where transportation is moreenvironmentally friendly. But Evians growth is expected to come from outside the EU because ofmarket saturation (Euromonitor, 2011), increasing this way distributors non-ecologically friendlytransportation. 9
  • 11. 7.4 Nature & Water protectionEvian needs to protect the water bodies in Evian-Les-Bains to secure its business in the future.That is why in 1992 they created the Association for the Protection of Rainwater Catchment forEvian Mineral Waters (APIEME). Its main function is to ensure there is a sustainable developmentand management in the region to maintain its biodiversity, promote sustainable agriculture, andavoid the use of pesticides and fertilizers that might infiltrate the water. In 2004 Frank Riboud,CEO, signed the Groundwater protection policy, so they dont withdraw more water that what thespring can naturally produce (Grosser et al., 2010). In 2008 the Evian Water protection Institutewas created in partnership with Ramsar to help protect and restore wetlands, and have aneffective water management with local community participation (Ramsar, 2010). In 2009 Evianwas classified a Ramsar zone, as such they have to protect the biodiversity within (Grosser et al.,2010). Evian complies with policies and goes beyond its area of expertise, in 2010 promoted aframework agreement with APIEME, council of Haute-Savoie and the community of municipalitiesof the Evian region, to decrease the use of salt in roads during winter and avoid the soil and waterbeing contaminated with chloride compounds (Grosser et al., 2010).7.5 Consumers & other StakeholdersBusiness need to walk the talk, and be sure that the claims they make are substantiated by factsand are communicated to consumers clearly (Stone & Ozimek, 2011). Danone created with Britishagency Futerra an internal policy on environmental claims that is applicable for Evian since 2011.This will help avoid green washing consumers (Grosser et al., 2010). Evian also did training toemployees and key stakeholders called Protect purity training, that explained Evianssustainability strategy (Grosser et al., 2010) and was used to engage with them.8. Analysis on Evian Sustainability Strategy8.1 SWOT 10
  • 12. To analyze Evians current Sustainability Strategy and be able to give recommendations I did aSWOT analysis, see Table 1.Table 2: SWOT analysis of Environmental StrategySTRENGTHS OPPORTUNITIES - Use of up to 50% of recycled pet in its - Consumer environmental education: lack of packaging, which has a lower CFP awareness of sustainable alternatives (Pasqualino et al., 2011). continues to be a significant barrier to - Light weighting by 40% in PET packaging. purchase (Quadir, 2011). - Use of train transport within EU and by - Cause-related marketing has potential to boat outside the EU. boost sustainable brands (Quadir, 2011). - Water protection in Evian-Les-Bains - Use the power of new media to - Third party partner Ramsar. communicate sustainability initiatives and - CO2 Compensation by reforestation of a engage with key stakeholders (Belle, 2011). mangrove in Senegal. - Develop a plant bottle like Volvic to reduce - EMS system in plants. its dependence on PET. - Environmental claim policy. - Employee and main stakeholders involvement through Purity Training.WEAKNESSES THREATS - Grow will come from developed markets - Water filters and private label competition where tap water quality is poor in countries where tap water isnt clean. (Euromonitor, 2011), increasing the - Increased consumption of tap water. transport footprint. - Bad image of bottle water, because of its - EMS only in production sites not in the environmental impacts. whole supply chain. - Water contamination or shortage in Evian- - European bottle water business remains Les-Bains. weak and accounts for about 60% of the business (Danone Euromonitor 2011). - Not doing anything in Glass packaging which accounts for 15% of volume. - Communication of its sustainable strategy to green consumers, and social media management. 11
  • 13. 8.2 Recommendations: Strategic ResponseEvian is going in the right path but still needs to consider other factors to be a green star brandand secure its future growth. They need to work on engaging more with key stakeholders throughsocial media and other communication mediums, so they can act as ambassadors and reducebottle water bad press. They have to put their sustainable actions in their website so that greenconsumers that are interested can find them. They also need to educate consumers, since they areresponsible for the end of life of Evians bottles.It should also be a good strategy to extend their EMS to the supply chain, especially transportwere the main carbon footprint comes. They should also evaluate that Incoterms agreementsbenefit Evians transport footprint and try to work with distributors to have a more sustainabletransport where they operate.In the packaging area they should substitute glass bottles with PET, they might need to, make anice PET bottle suitable for HORECAS. They can also incorporate plant based material to their PETbottle as it was done by Volvic its brother company.I think that what they are doing to protect the water source and their partnership with Ramsar isoutstanding. They were really intelligent to protect their water resource since 1992, but acontingency plan needs to be drawn if the effects of climate change are severe and Evian-Les-Bains is left without water or if they extract from the spring more water that it can produce.Looking more into the future, and considering that Evian cant produce elsewhere because of itsorigin, and most of its growth is coming from outside EU in developing countries where usually tapwater isnt safe to drink. I would suggest them to create Evian water filters to sell in thesedeveloped markets. The filters should have the same kind of rocks there are in the French Alps andsimulate a 15 year filtration so the water taste is the same. This eliminates the current problem oftransportation and packaging that contribute the most to Evians carbon footprint and can alsohelp if the spring runs out of water. 12
  • 14. 8.3. ConclusionsIn this report I analyzed Evian Marco and Micro operating environment through a PESTEL and 5forces analysis. I identified the primary stakeholders and the threats green consumers and NGOsare posing to its business with bottle water bad press. Then I identified the risks climate changebrings to Evians business, especially if they run out of water in Evian- Les-Bains. Finally I went intoEvians current sustainability strategy did a SWOT on it and gave recommendations forimprovement like engaging more with key stakeholders through social media, and doing someinnovations such as plant bottles, and water filters that simulate Evians filtration through theFrench Alps. It can be concluded that even though a company has an environmental businessstrategy and it is making progress it should evaluate it once in a while to see if it is still valid, or ifchanges need to be made. Businesses need to adapt quickly to the operating environment so theirenvironmental strategy should change accordingly.9. Reference ListBarnett, I., 2011. The global outlook for biodegradable packaging. Business Insights, (BI00051-002),pp.1-110.Belle, I., 2011. The Murky Problems of Green Marketing. Euromonitor International, pp.1-4.Biederman, D., 1999. Traffic World, 260(2), pp.21-21.Boswell, C., 2011. Feedstock volatility will rise as new polyester capacity comes on stream in Chinanext year The markets for monoethylene glycol (MEG) and purified terephthalic acid (PTA) can.ICIS Chemical Business (Weekly), 21 November.Cholette, S. & Venkat, K., 2009. The energy and carbon intensity of wine distribution: A study oflogistical options for delivery wine to consumers. Journal of Cleaner Production, 17, pp.1401-13.Coninck, H., Fischer, C., Newell, R.G. & Ueno, T., 2008. International technology-orientedagreements to address climate change. Energy Policy, 36, pp.335-56.Danone, 2011. Danone Sustainable Development. [Online] Available at:http://www.danone.com/en/our-vision/danone-s-dual-commitment-faced-with-the-crisis.html[Accessed 28 November 2011]. 13
  • 15. Doria, M.F., 2006. Bottled water versus tap water: understanding consumer preferences. Journalof Water and Health, Q4.2, pp.271-76.EC, 2010. European Comission Environment. [Online] Available at:http://ec.europa.eu/environment/waste/packaging_index.htm [Accessed 1 December 2011].ETS, E., 2005. Emission Trading System. [Online] Available at:http://ec.europa.eu/clima/policies/ets/index_en.htm [Accessed 29 November 2011].Eurmonitor, 2011. Danone Groupe in Health and Welness. Euromonitor International, pp.1-61.Euromonitor, 2009. Soft Drinks- Risks and Opportunities. Euromonitor International, pp.1-101.Euromonitor, 2010. Soft drinks: trade source/national statistics. [Online] Euromonitor Available at:http://www.portal.euromonitor.com/Portal/Pages/Magazine/WelcomePage.aspx [Accessed 2011Noviembre 28].Euromonitor, 2011. Bottle Water in 2011: Building on a Rebound in Growth. EuromonitorInternational, July. p.57. www.euromonitor.com.Evian, 2011. Evian. [Online] Available at: http://www.evian.com/en_GB/43-the-essence-of-purity[Accessed 28 November 2011].FAME, 2010. Danone Waters (UK & Ireland) Limited. FAME.Freire, F., Thore, S. & Ferrao, P., 2001. Life cycle activity analysis: logistics and environmentalpolicies for bottle water in Portugal. OR Spektrum, 23, pp.159-82.Grosser, M. et al., 2010. Danone. [Online] Available at: http://www.danone.com/Sustainability-Report10/ [Accessed 28 November 2011].Hill, J., 2010. Successful Brand Enhacement through packaging, best practice in leveraging uniquebrand attributes and innovative products. Business Insights, pp.1-159.IMF, 2011. World Economic Outlook: Tensions from the Two-Speed Recovery. [Online] Available at:http://www.imf.org/external/pubs/ft/weo/2011/01/ [Accessed 2011 November 28].Leonard, A., 2008. The Story of Bottle Water. [Online] Available at: http://www.storyofstuff.org[Accessed 1 December 2011].Paisley, J., 2008. Bid to ban bottles of water for councillors. Evening Times Glasgow, 27 March.p.17.Pasqualino, J., Meneses, M. & Castells, F., 2011. The carbon footprint and energy consumption ofbeverage packaging selection and disposal. Journal of Food Engineering, 103, pp.357-65. 14
  • 16. Perthuisot, C. & Jouin, F., 2010. IMM Meeting: Packaging Material Roadmap. [Presentation] Paris:Danone Waters.Piecyk, M.I. & McKinnon, A.C., 2010. Forecasting the carbon footprint of road freight transport in2020. Int. J.ProductionEconomics, 128, pp.31-42.Quadir, T., 2011. Sustainability Strategies in Food and Drinks. Business Insights, (BI00055-013),pp.1-139.Ramsar, 2010. The Evian Water Protection Institutes. [Online] Available at:http://www.ramsar.org/cda/en/ramsar-activities-partnershipindex-private-danone-evian-water-23926/main/ramsar/1-63-506-98-398%5E23926_4000_0__ [Accessed 28 November 2011].Sacchi, L., 2010. Danone essentials in 2010. [Online] Available at:http://danone10.danone.com/uk/documents [Accessed 1 December 2011].Schaltegger, S., Burritt, R. & Petersen, H., 2003. An Introduction to Corporate EnvironmentalManagment: Striving for Sustainability. Sheffield: Greenleaf.Stern, N., 2007. The Stern Review: The Economics of Climate Change. [Online] Available at:http://webarchive.nationalarchives.gov.uk/+/http://www.hm-treasury.gov.uk/independent_reviews/stern_review_economics_climate_change/sternreview_index.cfm [Accessed 29 November 2011].Stone, M. & Ozimek, J.F., 2010. Carbon Trading and the Effect of the Copenhagen Agreement:Tecnical options and economic drivers for a low carbon economy. Business Insights, pp.1-194.Stone, M. & Ozimek, J.F., 2011. Corporate Carbon Strategies: Threaths and opportunities arisingfrom the new energy imperative. Business Insights, p.191.Sunarakani, B. et al., 2010. Modeling carbonfootprintsacrossthesupplychain. International Journalof Production Economics, 128, pp.43-50.Swedloff, R., 2008. Bottle Water Crisis. Concurring Opinions, 2 January.Valdez, J.M., 2011. Evian Sustainability Strategy, (personal communication meeting 21 ofnovember 2011).Walmart, 2009. Walmart Press Room. [Online] Available at:http://walmartstores.com/pressroom/news/9277.aspx [Accessed 28 November 2011].Welle, F., 2011. Twenty years of PET bottle to bottle recyclingAn overview. Resources,Conservation and Recycling, 55, pp.865-75.Williams, B., 2008. A bottle water is poison to the environment. The Courrier Mail Australia , 19February. p.3. 15
  • 17. 10. Appendix I Stakeholder AnalysisIn table 3 you can find Evians main stakeholders their motivation in the company and the riskthey pose to Evian.Table 3: Stakeholder AnalysisStakeholder Motivation RiskShareholders Maintain and increase their revenues. If They dont invest any more in Evian becauseand investors environmental conscious they will invest they think it wont survive in the future and it in companies in the Down Johns is risky. Sustainability IndexEmployees Work for an organization that share the Many environmentally conscious employees same values as them, and obtain if they think Evian is damaging the environmentally healthy work. environment will leave the organization.Suppliers Adopt new environmental quality If they dont adopt new environmental criteria, to continue selling. criteria Evian will need to find new suppliers.Media Searching for information to write Widespread media coverage of the negative about. environmental impact of bottle water packaging and transport had negative results in growth in Western and USA (Euromonitor, 2011).Local Maintain and improve the conditions in They can put in danger the production ofCommunity which they live. Evian if they think Evian is threatening theEvian-les Bains conditions in with they live.NGOs Act as advocates for the environment Can ruin Evians reputation and convince and watchdogs. They promote consumers to stop drinking bottle water. For environmentally friendly behavior in example Clean Up Australia campaigned businesses. against bottle water saying it has the same environmental impact as driving a car for 1 km (Williams, 2008).Green Want eco-friendly products and are on Can damage the reputation with their opinion 16
  • 18. Consumers the watch for greenwashing. on social media or create a consumer boycott. For example the video about the story of bottle water has been seen by around 2 million people (Leonard, 2008), encouraging them to bring back tap water.Clients/ Buyers They want more ecologically friendly Stop buying Evian if you dont supply what products for their stores, as they are they expect, or dont comply with their also turning green. standards.Governments & Protect and conserve the environment Punish if you dont comply the law or set theAuthorities on behalf of the society example, like SCOTS council that planned to ban bottle water from departments and meetings (Paisley, 2008).Motivation taken from (Schaltegger et al., 2003)11. Appendix II Packaging Materials Environmental ImpactPasqualino et al. (2011) did an environmental evaluation of the impact of manufacturing anddisposing different types of packaging for beverages: plastic HDPE, plastic PET, aseptic carton,aluminum and glass. They found that the more environmentally friendly packaging is plastic andaseptic carton for sizes greater than 1, and the glass bottles have the highest environmentalimpact. Packaging that contains more volume content > 1 L has lower environmental impacts. Inselecting the best packaging material for beverages it is important to consider their transport andsecondary materials, as well as final disposal. The most environmentally friendly way to disposeany packaging is recycling, followed by landfilling and finally incineration. They recommend theconsumption of local products over those that require transport to minimize the environmentalimpact as much as possible. 17