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Marketing Team meeting

Sustainability Education Session. Marketing Team meeting. Diane Taillard, GS1 Jonathan Johnson, University of Arkansas. September 24, 2010. Measuring and Managing Sustainability. Jon Johnson http://www.sustainabilityconsortium.org /. Guiding Principles.

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Marketing Team meeting

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  1. Sustainability Education Session Marketing Team meeting • Diane Taillard, GS1 • Jonathan Johnson, University of Arkansas September 24, 2010

  2. Measuring and Managing Sustainability Jon Johnson http://www.sustainabilityconsortium.org/

  3. Guiding Principles • Focus on impacts across product life cycles • Science and evidence based approach • Transparent data and methods… …with respect for proprietary information …that is honest about uncertainty …and is designed to improve. • Rapid progress balanced by rigor • Cost feasible solutions • Systems must drive innovation that creates value

  4. The Sustainability Consortium MISSION STATEMENT The Sustainability Consortium is an independent organization of diverse global participants who work collaboratively to build a scientific foundation that drives innovation to improve consumer product sustainability. WHAT WE DO The Sustainability Consortium develops transparent methodologies, tools and strategies to drive a new generation of products and supply networks that address environmental, social and economic imperatives. CONSTITUENCY The Sustainability Consortium advocates for a transparent process and systemgrounded in science, not for individuals or organizations.

  5. Organization Consortium Level • Steering Committee and Subcommittees (Tier I members) • Partnering Universities • Working Groups (TSC staff, member companies and partners) • Measurement Science • Auditing and Assurance • Systems Science • Consumer Science • IT Standards and Tools Administered by Arizona State University and the University of Arkansas • Governance and External Relations Task Forces underway

  6. Sector Working Groups • Initial Sectors • Food, Beverage & Agriculture • Home & Personal Care • Electronics • Motivations • Need for progress • Balance specialization and harmonization • Supply chain scope Objectives • Develop prototype SMRS • Accelerate infrastructure and tool development • Set the stage for supply chain innovations

  7. Reporting framework

  8. What is an SMRS? • Sustainability Measurement and Reporting Standard • Foundation for B2B, B2R, B2C reporting • SMRS • What sustainability dimensions should be captured? • How should they be measured? • How should they be reported?

  9. SMRS versus Index INDEX TSC SCOPE

  10. LCA or Attributes? • LCA has higher information content but is costly • Not scalable to all products on all dimensions • LCI data is currently very sparse • Attribute approaches have lower information content but are less costly • Best practices, certifications, technologies, etc. • Several approaches are currently available

  11. Total U.S. Carbon Footprint for Fluid Milk Total Supply Chain Emissions = 35Tg CO2e (as of 2007) Confidential: Not for Distribution Consumer Packaging Retail Milk Production Processing Transport/ Distribution Feed Production Note: average result for fluid milk only

  12. Production Confidential, not for distribution. Embargoed until September 22, 2010

  13. A hybrid approach PRIMARY DATA A pure LCA approach is not economically scalable across all consumer products A pure "best practices" approach lacks precision and tends to weigh each best practice equally, regardless of impact BASELINE LCA MODEL FOR PRODUCT CATEGORY IMPACTS SUSTAINABILITY PERFORMANCE DRIVERS (VARIABLES & ATTRIBUTES)

  14. Three step reporting Reporting Category 1 Reporting Category 2 Reporting Category 3 Reporting Category 4 : BASELINEFORPRODUCTCATEGORY PRIMARY DATA AND THEIR IMPACTS (optional) 1. All products within category have same scores 3. Every product potentially has different scores PRE-DEFINED SUSTAINABILITY PERFORMANCE DRIVERS AND THEIR IMPACTS 2. Every product with same attributes has same scores

  15. Data and IT Success Factors Any organization should be able to: • Assess and prioritize supply chain sustainability impacts • Identify opportunities for innovation • Measure and report performance without undue burden • Identify and visualize baseline models • Select from approved Sustainability Performance Drivers • Refine their model using primary data from their operations and supply chains

  16. Data and IT Success Factors Any organization should be able to: • Use life cycle modeling tools or results to innovate • Inform product design process • Inform procurement decisions • Find supply chain efficiencies • Understand use phase and end of life impacts of their products

  17. Reporting

  18. High Level System Design And others… Modeling and Reporting Tools Identify GLN GTIN SSCC Capture Barcode EPC RFID Share And others… EDI GDSN Sustainability Information Hub Research and Innovation Reports Performance Driver Library SMRS Library Baseline Model Library Industry Average Data Framework And others…

  19. Consumer science Consumer insights Expert insights Buyer codes Measurement science Survey and analysis of certifications Social hot-spot database Other Initiatives

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