3. Introduction
• The retail industry witnessed a 10.35 per
cent growth in sales and a 5.86 per cent
increase in profit margin during 2012-13
in spite of challenging economic
conditions.
• The global retail market is dominated by
likes of Wal-Mart, Tesco and Carrefour
among others.
• The top 10 retailers account for nearly 42
per cent of the share of revenue of the
top 100.
4. • Humanity’s voracious consumption of finite natural
resources poses a significant challenge to businesses.
• Increasing resource scarcity and rising demand will drive
up costs, increase supply chain risk and force businesses to
innovate to survive.
• Higher prices of goods and services threaten economic
growth and the quality of life for many consumers.
Factors driving sustainability The impediments faced by retailers
◦ Is sustainability cost-effective?
◦ Will sustainability pay off in the near future?
◦ Will sustainability provide us a competitive advantage?
◦ Will customers appreciate our sustainability efforts?
•Cost Reduction
•Enhancing Reputation
•Regulatory Pressure
•NGO Pressure
•Media Pressure
•Risk Mitigation
The sustainability value drivers
5. Best Practices Adopted
Energy
Conservation and
Emission Reduction
Packaging
Waste Reduction
and Recycling
Water Stewardship
Green Buildings
Sustainable
Products:-
Supply Chain Transportation
Biodiversity/Habitat
Conservation
Presence of
Environmental
Policy
Environmental
Reporting
6. AGENCIES WHICH AUDIT
PERFORMANCE WITH
RESPECT TO BEST
PRACTICES
IKEA have
formulated a
framework to
reduce
Carbon
footprint in
terms of CO2
emission(in
MT) by 10%
YoY
Measurement of Best Practices
8. FOCAL POINTS IN SUPPLY CHAIN PRACTICES:-
Measurement of Best Practices
9. Measuring return on investment:
Costs
•The companies all track cost
savings and ROI to a greater or
lesser degree.
•The actions with the best ROI
vary by company, geographic
region and commodities sold.
Carbon Emissions
•While all of the companies
track dollar costs and savings,
four use carbon emissions as
their major indicator—
Woolworths Australia, Alliance
Boots, MEC and IKEA.
•Carbon-Reducing Cost-Saving
•1. renewable energy (but
more expensive)
• 2. reduce energy
consumption
•3. reuse boxes or use plastic
•4. transportation logistics
•5. reduce waste and
packaging
•6. reduce waste and
packaging
Revenue generation
•Two of the companies have
found that the most significant
return on investment is derived
from the sale of
environmentally friendly
products.
•Home Depot’s Eco Options
products have become a major
and fast-growing revenue
source,
•Aeon’s sales of green products
is over $325 million. In the
case of MEC and LUSH, the
majority of their products are
environmentally friendly and
are the basis of their business
model.
•Others sell green products that
are an increasingly important
revenue source, but still a
relatively small percentage of
the total sales.
10. A deeply held conviction by the CEO/owner/founder/senior management that the company must reduce its impact on the environment
An environmental strategy and plan
An environmental management structure
Staff who were appointed with environmental responsibilities at the head office and store level
External advisors to assist in developing the strategies and providing advice
Sustainable strategies, actions and indicators integrated into existing operations and management structure
Policies with broad sustainability principles and specific functional or issue-related policies
Policies disseminated internally and, most often, externally
Regular updates of sustainability policies and achievements, typically every one to three years.
11. Reducing Energy Use
• Install building automation systems that not only track energy use but also control
temperature settings, monitor alarms, and help identify areas for energy savings
• Retrofit old heating, ventilation, and air conditioning (HVAC) systems with newer, more
efficient models to reduce the energy needed to heat and cool retail spaces.
• Preventative maintenance and component upgrades, as well as centralized monitoring,
also increases system efficiency.
• Install low-energy lighting systems, including fluorescent and LED lamps, which use about
75-percent less energy than standard incandescent bulbs.
• Install advanced refrigeration systems for significant savings.
• Installing energy-efficient equipment
• Incorporate daylighting and skylights, reducing the need for artificial lighting during
daytime operational hours, saving energy and money.
12. Analyze waste streams - Often this means working with waste haulers that track material volumes and perform audits of the
waste content to illuminate reduction opportunities
Similar to energy reduction, waste reduction
Waste minimization starts with reduction and reuse.
Inclusion in the discussion of any new programs, bans, legislation, etc. that could affect retail waste operations.
Waste stream tracking data by material and store when possible.
Recycling options for cardboard, shrink-wrap, mixed plastic, mixed paper, pallets, e-waste, foam, and mixed metals.
Composting options for organic food wastes.
Reducing Waste
13. Consider sustainability criteria in the design & construction phase.
From the planning process to move in, the use of local and recycled construction materials, white membrane roofing, efficient HVAC systems,
state-of-the-art coolers and refrigerators, polished concrete floors (that require less maintenance), efficient landscaping, solar panels, wind
turbines, and other technologies are employed
Increase prevalence of LEED building standards. Developing to the U.S. Green Building Council’s Leadership in Energy and Environmental
Design (LEED) certification is a growing trend in the industry.
Increase the availability of alternative transportation to stores. Communities thrive when citizens have access to many forms of transportation.
Implement smart landscaping to improve water efficiency. Storm-water retention ponds and efficient irrigation.
Land Use & Development
Employee Engagement
Senior executive councils, composed of senior leadership that cut across functional areas, increase the credibility of sustainability programs
and provide channels for input and feedback from employees across the organization.
Sustainability fairs and special events like an Earth Day activity provide opportunities for marketing to and engaging employees in corporate
sustainability programs. Last year several retailers, including IKEA, Walgreens, and others, participated in Earth Hour, during which stores and
employees are encouraged to turn off their lights for one hour on a Saturday in April (17), (18).
Extracurricular volunteer activities raise community awareness and camaraderie among employees.
Volunteer-led sustainability or health affinity groups put peers in charge of organizing activities and involving other like-minded employees.
Green teams or ambassador programs empower employees to promote sustainability in their area of work, whether that is the store,
distribution centre, or home office.
Friendly store to store competitions
14. Identify the best
environmental practices of
leading shopping centre
developers around the world
to assist the retail industry to
adopt sustainable practices.
Assess the feasibility of
developing environmental
sustainability guidelines for
the retail and shopping centre
sector.
Communicate the research
findings to the sector using
reports, the Internet,
conferences and workshops.
Undertake demonstration
projects with strategic retailers
and shopping centres.
Recommendations
15. 1) 2012 Retail Sustainability Report from Retail Industries Leaders Association(RILA)
2) 2015 Retail Sustainability Report from Retail Industries Leaders Association(RILA)
3) WWF India Report on GLOBAL PRACTICES IN PROMOTING ENVIRONMENTAL SUSTAINABILITY A Roadmap for Indian Retail
2014.
Authors:-
Authors: Bhavna Prasad - Director, Sustainable Business, WWF-India
Philip Tapsall - Senior Advisor, Sustainable Business, WWF-India
Neha Simlai - Manager, Sustainable Business, WWF-India
4) Article :- Best Environmental Practices of Leading Retailers from Around the World 2009
Authors:-.
Wendy Evans, President, Evans & Company Consultants Inc.
Marion Denney, Evans & Company Consultants Inc.
