nixon-uc berkeley 1.31.12

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Roundtable of Social Impacts of the Electronic Sector

Center for Responsible BusinessUniversity of California, BerkeleyFaculty Club

January 31, 2012


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The Sustainability Consortium (TSC)

VisionThe Sustainability Consortium is advancingscience to drive a new generation of innovativeproducts and supply networks that address

environmental, social and economic imperatives.

MissionThrough collaboration, the mission of TheSustainability Consortium is to design and

implement credible, transparent and scalablescience-based measurement and reportingsystems accessible to producers, retailers,distributors and users of consumer products.

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Corporate members (sample)

See all of our members at www.sustainabilityconsortium.org/members


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Academic partners


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Opened EU Office of TSC in November

It is important to start working on sustainability today. At Ahold Europe we want all our own brands products to be

more sustainable by 2015. To achieve this we have to work together with suppliers, NGO's and science so we can create an industry-wide measurement standard for sustainability indicators that is accepted by all of us. That is why we have a common interest with TSC. We start today. You can start today too. I encourage my fellow retailers to support TSC and to drive sustainability and innovation.

Kiki Stiemer, Senior VP Ahold European Sourcing, Ahold

Koen Boone

Academic Director

Imke de Boer

Scientific Director

Marjan van RielBusiness

Development

Marieke Meeusen

Operations

Sanne DekkerResearch Associate

Li ShenResearch Associate

Build on existing science framework &network with other leading Research orgs

Coordinate EU operations

Meet with EU TSC Membership regularly andhold TSC events in European community Align with other European Initiatives and

coordinate with government sectors Grow the European Market

TSC Board Member Aalt Dijkhuizen welcoming Princess Maxima of Netherlands and Mayor of Amsterdam


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TSC Working GroupsConsortium Working Groups

Sector Working Groups

In Process Logistics Assurance Small Appliances Coffee


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History of TSC

Date State

Summer 2009 Spring2010

Initial gift from WalmartSustainability Measurement & Reporting System - SMRS

Spring 2010 Fall 2011

Product Category Rules and LCAs for seven product

categoriesEstablished new governance structure (Board, Exec Dir)

Summer 2011 Fall 2011 Product Category Dossiers for 100 product categoriesGlobal expansion Opened EU Office (Asia & LA Next)

Fall 2011 Winter 2012 SMRS Reengineering ProjectStrategic Planning

2012+ Continued development, execution of SMRS501 C 3 & Institute (Hybrid Academic)


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SMRS definitionThe Sustainability Measurement and Reporting System (SMRS) is the

framework developed by TSC to the enable the creation, analysis,and communication of comparable and standardized informationabout the life cycle of a product.

create analyze communicate

Comparable and

standardizedinformation aboutthe life cycle of aproduct andproduct category


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Level 1 and 2 SMRS


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Knowledge creation and management

Level 1 SMRS Category Sustainability Profiles Applies to the product category level (e.g.

laundry detergents, frozen beef, shoes) Not for product level comparison

Promotes sharing of information

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Level 2 SMRS Product Sustainability Declaration

Applies to the product level (e.g. JC

s FrozenBeef Patties)

Allows for direct comparison of products againstthe product category baseline: includes uncertainty

Based on Baseline (LCA) Model + PCR


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Collaborative environment: Knowledge BaseInteractive IT platform,

Knowledge Base,

enables TSC members to collaborativelydevelop Level 1 LCAs and Category Sustainability Profiles

Screenshots ofthe web-basedsystem,Knowledge Base


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Category Sustainability Profiles: Credibility and QualityHow we assure that only the most credible, relevant and actionableinformation makes it.

We deploy a strictdecision process toscreen hypothesesobtained from avariety of sources.

Decision tree isbased on theprinciples of sciencebased evidence.Innocent untilproven guilty

Organizinginformation basedon the filterapproach.

Potential IssuesAllegations

Supported bystrong evidence?

Opportunities Corrective Actions

Relevant?

Actionable?

Stakeholder Concerns

Additional Issues

Improvement Opportunitie

Life CycleHotspots

Many things wont ever make the cut, others just need more time

No evidence but strongstakeholder opinion?

Supported by weakeror conflictingevidence?


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Category Sustainability Profile

Basic category information

Environmental Hot Spots

Stakeholder Concerns

Performance Indicators

Product Attributes

Manufacturer Practices

Supplier Management Practices

Certifications

Social Issues


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Life cycle models


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Brand owner and

manufacturer info

Level of customizationand verification

Lifecycle inventory results

Energy, Water, Waste andCarbon

Performance indicatorsresults by different

categories

3 rd party criteria:Certifications and ISOEco labels

Potential lifecycleimpacts

Lifecycle impact

assessment (LCIA)midpoints

Product detailsand attributes

Product declarations


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Product Transparency: The New FrontierConsumer Science Working Group November 28, 2011

CONSUMERSCIENCE STUDIESCONDUCTED IN

THE US, UK,GERMANY &

FRANCE


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Green Consumers in the U.S.

Skeptics

Activists

AntagonistsPacifists

Walk the Walk71% female

More optimistic

True opinion leaders

Believe everyones contribution isimportant including government andcorporations

Buy environmentally friendlyproducts. Will sacrifice and pay apremium

Talk the Talk52% femaleNot as optimistic and more doubtfulabout personally impactEnvironmental action closer to non-activist segments motivated bysaving money

Walk theWalk

Talk the Talk

TSC Sample: 3300 U.S. consumers


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Concerning Life Cycle Phases% Most Concerning Stages

(n=3327)

Sourcing Materials

Production/Manufacturing process

Transporting/Shipping

Marketing/Shopping

Ongoing usage

Packaging/Disposal after use

None


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Current Lack of Trust and an Appetite forMore S tandardized Information

75%I wish a set of standards existed thatwould easily communicate how well acompany, brand or product does in termsof their environmental or social

responsibility

*Net agree on 4 point agreement scale: Strongly agree, agree.

I trust the environmental andsocial claims I find on packaging 47%


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Research to Inform CommunicationStrategy is Underway Launched the Communication Vehicles at the Point of

Sale study to inform the communication strategy behindTSCs SMRS ( Scheduled Completion = March 2012 ).

The objective is to better understand how the design anddelivery of sustainability messaging affects consumer usage rates interpretations brand perceptions purchase intent


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A Sample of What Weve Found Scores are only meaningful if endorsed by an

independent organization Scoring Techniques with only 2 degrees of separation

are NOT useful for evaluating products Color Schemes are not easy to compare across multiple

products Stars have a global appeal


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Reduce Cost and Time to Do LCA Cost and time to measure, report productsustainability excessiveTSC developing a Sustainability Measurement and ReportingSystem (SMRS)Enables creation, analysis, and communication of comparableand standardized information about life cycle of product

Reduce Cost and Time to Address Critical IssuesWork directly with other corporate, NGO, and governmentstakeholders to drive progressWorking collectively provides industry focus, economiesof scaleTSC Working Groups do research, innovation, and education

Value of TSC Membership


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Learn from World-Class ExpertsOver 100 organizations and 500 people involvedConnections to top-quality research institutionsTSC provides networking bridge to many otherglobal initiatives

Reduce Uncertainty Over What is ImportantProvide technical expertise to standards development

Have early insight into what are important productsustainability attributesCo-create with other stakeholders to ensure standardization

Align with Leaders and a Transformational InitiativeTSC now considered a major force insustainability movementA unique effort with growing global influenceA philanthropic gift to ensure a better world

Value of TSC Membership (cont.)


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Membership Structure

Tier I Corporate Membership One (1) seat on The Sustainability Consortium Corporate Advisory Council Seat(s) on all interested Sector Working Groups Seat(s) on all interested Consortium Wide Working Groups Full access to all Sustainability Measurement and Reporting System (SMRS) and Reports Preferential access to all IT tools and partner systems Opportunity to participate/vote with Corporate Advisory Council Committees and Task Forces Invitation to bi-annual Corporate Advisory Council Meetings and Annual Public Conference Opportunities for co-branding and joint communications

Eligible to vote and/or run for seat on Board of Directors Dues Structure

$100,000/year (Corporations of 500 or more employees); $25,000/year (fewer than 500 employees and/or less than $500M in annual revenue)

Tier II Corporate Membership Seat on all interested Sector Working Groups Limited access to Sustainability Measurement and Reporting System (SMRS) Limited access to IT tools and partner systems Dues Structure

$50,000/year (500 or more employees) $10,000/year (fewer than 500 employees and/or less than $500M in annual revenue)


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For more information, please contact:

Bonnie Nixon | Executive Director The Sustainability Consortium O: 480.727.9003 | C: 415.306.1880www.sustainabilityconsortium.org
http://www.sustainabilityconsortium.org/http://www.sustainabilityconsortium.org/


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THANK YOU!

nixon-uc berkeley 1.31.12

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