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1. Sustainable Sourcing for GENERAL MERCHANDISE Category Managers: Using the FMI Guide Five Winds International & Ecos US February 9, 2011
2. Acknowledgements Produced “by the industry for the industry” Thank you to: United Soybean Board FMI Sustainability Executive Committee and Council Specifically those that helped to launch the development of the guide: Suzanne Forbes (Wakefern), Harriet Hentges (Ahold USA), Tom McIntyre (SUPERVALU), Karen Meleta (Wakefern), Tracy Taylor (Ahold USA) and Jeanne von Zastrow (FMI) All those who participated in our Guide survey and submitted additional comments
3. Background on Guide & Presentation This presentation accompanies the document: Sustainability on the Shelves A Guide for Category Managers Please customize the Guide and these slides for your own use
4. Agenda Learning Objectives What is Sustainability? Sustainable Sourcing Decision Framework for General Merchandise Take-Home Messages Questions
5. Learning Objectives Provide good working understanding of sustainability in the food retail sector Identify key sustainability issues specific to each product category Possess questions and tools to help understand and verify sustainability claims, recognize “greenwashing”, and select more sustainable products
6. What is Sustainability? Sustainability “Business practices and strategies that promote the long term well-being of the environment, society, and the bottom line” - FMI
11. Sustainability is a Strategic Business Issue 300% Growth of U.S. sales of “ethical” cleaning products in 2009. Packaged Research $73M Additional profit generated by Marks and Spencer’s Plan A sustainability strategy in 2009. M&S 2010 Progress Report
14. Step 1: Know Your Priorities What are your company’s priorities? Sustainable sourcing strategy Company sustainability priorities Product priorities
16. How do these terms relate to sustainability? recyclable less toxics organic local eco-labelled less packaging BPA-free recycled content packaging fair trade durable use less resources
17. What are the Sustainability Issues for General Merchandise?
18. Carbon Footprint A carbon footprint includes all greenhouse gases emitted by a product’s production, transportation, consumption, and end of life. Final carbon footprint calculation for a standard bag of Walkers Crisps is 80g CO2 which compares to 243g CO2 for an average cheeseburger See Guide, page 22 Sources: http://www.walkerscarbonfootprint.co.uk/walkers_carbon_footprint.html and http://openthefuture.com/cheeseburger_CF.html
19. Water Footprint 53 gallons! See Guide, page 22 Source: http://www.huffingtonpost.com/2009/02/13/1-latte-53-gallons-of-wat_n_166759.html
20. Waste Footprint Americans generate over 38 million tons of hazardous waste per year, and chemical manufacturing accounts for 55% of that waste See Guide, page 23 Source: http://www.epa.gov/epaoswer/hazwaste/data/br05/national05.pdf
21. Packaging Almost 1/3 of the waste generated in the U.S. is packaging See Guide, page 24 Source: http://www.cleanair.org/Waste/wasteFacts.html
22. Organic, Local, and Bioengineering Consumer demand? Sustainability science? See Guide, page 25 Source: http://pubs.acs.org/doi/abs/10.1021/es702969f
24. Design & Manufacturing and Use are the Hot Spots for General Merchandise Campaign by Environmental Defense Fund Guide page 8
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28. Possible starting points:Review and compare to information in Guide & “For More Information” links Compare information with your company priorities identified in Step 1 Talk to your sustainability team Talk to other category managers
30. Eco-Labels: One tool in your toolkit Learn more about the eco-labels for your category SOURCES: World Resources Institute, Big Room Inc. | Bonnie Berkiwitz and Laura Stanton/The Washington Post - May 3, 2010
34. Environmentally-friendlySin of the Hidden Trade-Off Sin of No Proof Sin of Vagueness Sin of Irrelevance Sin of Fibbing Sin of the Lesser of Two Evils Sin of Worshiping False Labels For more information, see Guide pages 27-28 (Used with Permission)
41. Coming soon via Survey Monkey Did this webinar: Provide you with a good working understanding of sustainability in the food retail sector? Identify key sustainability issues specific to your product category? Possess questions and tools to help understand and verify sustainability claims, recognize “greenwashing”, and select more sustainable products?