sarah lewis - ceo deck chile 2012
TRANSCRIPT
The Sustainability Consortium
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TSC Overview
TSC Value Proposition
Food Beverage & Agriculture
Today, the world is facing alarming
sustainability challenges on multiple fronts.
Source: McKinsey Global Institute; World Economic Forum; The Guardian; The Climate Group, SMART 2020; IFAD Rural Poverty Report 2011
By 2050, world population will surpass
9 billion which requires active conservation
of cropland, freshwater, energy, and
biological resources
By 2020, global emissions will
increase by 33% from 2002 levels
which translates into a loss of 5%
of annual GDP if no action is taken
1.6 billion people are
facing water shortage
How do we
create a world
in which people
are living well
and businesses
can prosper
within the limits
of the planet?
Over 1.4 billion people
in developing countries live
on $1.25 a day or less
Addressing product sustainability will
play a big role in resolving challenges.
Nitrogen Transportation Dishwashing at Home
Raw Materials
Extraction
Manufacturing
of Components At Home Usage
Cotton Production Worker Health Machine Washing & Drying
Source: TSC Product Category Dossiers
Measurement and reporting systems are crucial to progress in
product sustainability but are coupled with an array of challenges.
Challenges include
Lack of a harmonized
measurement and reporting
approach:
• Complexity driven by the
vast variety of products
• No holistic view of the
value chain
• No capability to credibly
differentiate products
based on sustainability
• Need for consistency and
transparency in
measurement and reporting
Science is enabling an
understanding of social and
environmental impacts and
benefits
Global regulations
are emerging with
unpredictable metrics
Today
Various corporate and
social initiatives launched
in attempt to address
product sustainability
But challenges exist…
Source: TSC team analysis
Vision
To advance science to drive a new
generation of innovative products
and supply networks that address
environmental, social, and economic
imperatives
Mission
To design and implement
credible, transparent and scalable
science-based measurement and
reporting systems accessible for all
producers, retailers, and users of
consumer products
The Sustainability Consortium improves decision
making for product sustainability throughout the
entire product life cycle across all sectors.
Enabling the consumer goods
industry to do things that matter
about things that matter.
Translating TSC’s mission into impact requires doing four things:
… that enable proactive
innovation in sustainability…
Using a multi-stakeholder
approach…
… to create practical
measurement tools…
… and unlock value in the
supply chain
Appro
ach
Impact
1 2
3 4
TSC is uniquely bringing together stakeholders
and creates unparalleled opportunity for collaboration.
Credibility
Leading universities and NGOs using
science-based approach to identify areas
of adverse impact in the supply chain
Harmonization
Creating clear agreed upon terms
and definitions by all stakeholders
Identifying common life cycle
stages, metrics, and reporting categories
Efficiency
Minimizing multiple similar efforts
and reducing supplier burden of
variable information requests
Academic
Institutions
Non-profit
organizationsCorporations
The
Sustainability
Consortium
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TSC’s membership includes the world’s most recognized
companies representing about $1.5 trillion in revenue…
Asterisk denotes founding members
1
… top academic institutions
and leading non-profit organizations
Top academic institutions committed to developing
Science-based measurement and reporting methods…
… and leading non-profit organizations to provide guidance and credibility
1
The Sustainability Consortium organizational structure…
Corporate
Advisory Council
Civil-Society Advisory
Council
Academic Advisory Council
Managing
Board
Board of
Directors
Consortium Working Groups Sector Working Groups
Overs
ight
Govern
ing B
odie
sO
pera
tion
s
an
d
resea
rch
TSC’s working group structure
allows coverage of major sectors
Consortium Working Groups
Comprised of corporate members,
non-profit organizations, government
agencies & academics
Coming
in 2012
1
Sector Working Groups
TSC creates SCALE as it represents
90 of the largest organizations working
together on sector-specific issues
TSC is developing tangible tools to enable
sustainable innovation across the value chain
1 Areas of adverse environmental and
social impact across product supply chain
Understandproduct category
hotspots1 and
drivers
Shareinformation on
best practices
Differentiateproducts against
baseline
DeclareCommunicate to
consumers
Current productsFuture products
Level 2 –
Product level
▪ Product-specific
▪ Quantitative tool
to benchmark
against baseline
Level 1 –
Category Level
▪ Broad product
categories
▪ Qualitative
assessment of
hotspots1
2
TSC category-level products have 3 major components…2
Category Dossier
Collection of evidence on
product category and its
supply chain, environmental
and social hotspots, and
improvement opportunities
Category Sustainability
Profile (CSP)
Synthesis of product
sustainability knowledge
and improvement
opportunities
Key Performance
Indicators (KPIs)
Metrics / questions to
measure and track product
category sustainability
BuyersCommunicate efficiently
and effectively with suppliers:
• Ask category-specific questions
• Track supplier performance using KPIs
SuppliersAddress product sustainability
more effectively and efficiently:
• Use a single reporting tool across buyers
• Enhance product development
• Reduce spending on sustainability
research and reporting
• Evaluate quality of input materials
vv
vvv
… to be used by buyers and suppliers to address
product sustainability in a cost efficient way
Improved
product
sustainability
and cost
efficiency
• Hotspots
• Improvement
opportunities
• KPIs
TSC provides
2
vv
vvv
vvv
TCS is working on 100 Level 1 products across 8 sectors.2
Food, Beverage
& Agriculture
Toys
Apparel Home & Personal Care
Electronics
Paper
Automotive
Other
Proactive
Innovation
TSC’s tools and frameworks enable proactive innovation
Key environmental
and social hotspots
Companies recognized and
differentiated by creating
products that address areas
that matter
Drives at-scale improvements
by coordinating and sharing
best practices
Collaborate with stakeholders
on sustainability solutions
Transparent, standardi
zed
and harmonized
systems
“TSC can bring
manufacturers, retailers, and
consumer advocacy groups
together to think how to
develop a campaign to drive
consumer behavior”TSC member company
3
TSC’s measurement and reporting system will drive
impact by unlocking the value in the supply chain.4
Transparency
of Reporting
Reducing cost and complexity of
sustainability research and reporting
allows companies to tackle impact
areas faster and more efficiently
Standardization
of Metrics
Reduced Cost
and Complexity
Standard metrics enable suppliers
and buyers to work together on the
same environmental and social goals
Harmonized and transparent system
reduces complexity and saves costs
throughout the supply chain
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TSC Overview
Food Beverage & Agriculture
TSC Value Proposition
Providing value to our members – TSC is doing what has never
been done before for this scale, complexity, and diversity.
• Providing multi-stakeholder input
to ensure industry alignment
• Identifying issues beyond LCAs
• Committing to scientific rigor
• Early access to a vast multi-
stakeholder network
• Collaboration on innovative
sustainability solutions and
consumer engagement
Member Testimonials
“By looking at sustainability as
a business opportunity, we are
innovating products now that we
wouldn’t have been otherwise”
“TSC is bringing stakeholders together
in a collaborative fashion
to develop sustainability solutions
for common themes across product
sustainability”
“TSC provides common language
and a uniform approach to measure
sustainability across the supply chain”
Products
Approach
Network
• Defining clear standards for
environmental and social metrics
• Creating implementable tools
• Reducing cost and complexity of
reporting
1. Tier 1 members only
• Contribute to creation of Category Sustainability
Profiles and KPIs
• Improve clarity of reporting methodologies
• Suggest KPIs and make KPIs more actionable
• Contribute to development of baseline models
• Generate sustainability solutions through innovation
workshops
• Be part of the Corporate Advisory Council1
• Observe and learn from Working Groups
• Attend TSC conferences and webinars
• Ensure the right mix of stakeholders
• Encourage key industry players to participate
• Ensure credibility of data and methodology
• Refer experts and literature
• Expand access to LCA data
Multi-stakeholder
Collaboration
Working Group
Participation
Support
Being a member means active participation
to add real value to TSC’s community
Our work relates to everyone…
Corporate
Responsibility
Researchers
Consumers
Buyers
…How can we make TSC a success for you?
Membership Structure
• One (1) seat on The Sustainability Consortium
Corporate Advisory Council
• Seat(s) on all interested Sector Working
Groups, including Retail and Packaging WGs
• Seat(s) on all interested Consortium Wide Working
Groups (Measurement Science, Consumer
Science, Social, Biodiversity)
• 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
• Seat on all interested Sector Working
Groups, including Retail and Packaging WG’s
• Limited access to IT tools and partner systems
• Invitation to Annual Public Conference
Tier I Corporate Membership Tier II Corporate Membership
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TSC Overview
Food Beverage & Agriculture
TSC Value Proposition
Develop prototype baseline
models and product category
rules for orange
juice, strawberry yogurt, and
wheat cereal.
Development of output for the
Level 1 SMRS, or Category
Sustainability Profiles (CSP), for
forty six categories.
The Food, Beverage & Agriculture (FBA) is comprised of a
diverse group of participants who work collaboratively to…
The Consortium is taking a very pragmatic, science-based approach to looking at our entire supply chain and finding a way to be more efficient and
to produce goods in a smarter way
1
2
Christy Consler - Safeway
Food, Beverage & Agriculture sector has several current
categories of focus…
FBA
Source: Kimberly-Clark
Fisheries Beef
Dairy
Grain Cotton
Wine
Current FBA Sector Activities
Level 1 SMRS:
Hotspots, Improvement
Opportunities, Additional Issues
1 2
3 4
• 46 total dossiers and CSPs in FB&A
• Currently batching commodities
• Hosting dossier and CSP
workshops
Level 2 SMRS: More quantitative
information
• LCA model prototypes: OJ, strawberry
yogurt, wheat cereal
• Invite existing models to “Call for models”
• Establish benchmark models as
references for comparison
Quantitative drivers behind
eco-labels, UMNCreate geographically-based
metrics to facilitate decision-
making• Biodiversity
• Land Use Change
• Social impacts
• Water Scarcity Indices
5Networking with calculation tool
initiatives to help harmonize
efforts
Sarah E. Lewis, Ph.D.
Food, Beverage & Agriculture
Sector Manager
O: 479.575.4296
Marco Ugarte, Ph.D.
Research & Business
Development
O: 480.965.1770
F: 480.965.9102
For questions please contact
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Membership Structure
• One (1) seat on The Sustainability Consortium
Corporate Advisory Council
• Seat(s) on all interested Sector Working
Groups, including Retail and Packaging WGs
• Seat(s) on all interested Consortium Wide Working
Groups (Measurement Science, Consumer
Science, Social, Biodiversity)
• 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
• Seat on all interested Sector Working
Groups, including Retail and Packaging WG’s
• Limited access to IT tools and partner systems
• Invitation to Annual Public Conference
• $100,000/year
(Corporations of 500 or more employees)
• $25,000/year (fewer than 500 employees
and/or less than $500M in annual revenue)
Dues Structure
Tier I Corporate Membership Tier II Corporate Membership
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• $50,000/year (500 or more employees)
• $10,000/year (fewer than 500 employees
and/or less than $500M in annual revenue)
Dues Structure