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SB11 - Outdoor Industry Association - Beth Jensen

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SB11 - Outdoor Industry Association - Beth Jensen

  1. 1. The OIA Eco Index™ Beth Jensen Outdoor Industry Association
  2. 2. Landscape Approach Key decision Support Q & A The OIA Eco Index™
  3. 3. <ul><li>1. The landscape </li></ul><ul><li>Why did companies “show up” to participate in the Eco Working Group and Eco Index effort? </li></ul>
  4. 4. <ul><li>The Retailer: </li></ul>
  5. 5. Why Product Stewardship?
  6. 6. Expectations have changed “ Walmart has fundamentally changed the conversation about products ….. and about the environmental impacts of supply chains” Joel Makower: GreenBiz.com Activists Government Competition Members Celeste Kuta “ I would like to see more information on how the products are made. ”
  7. 7. What is Product Stewardship? <ul><li>To understand, disclose and actively address environmental and social impacts at all stages of the product life cycle. </li></ul>www.StoryofStuff.com
  8. 8. Vision: Better by Design
  9. 9. How does REI see its role? Inspiring Innovation over Compromise Trade-Offs
  10. 10. What ’s in it for us? <ul><li>Better Products </li></ul><ul><ul><li>Innovation at all points of the supply chain will deliver better outcomes </li></ul></ul><ul><li>Reduced Risks </li></ul><ul><li>Increased employee and customer engagement </li></ul>
  11. 11. What do we need? <ul><li>A framework to understand complex Product Life Cycle impacts </li></ul><ul><li>A common language and metrics with our supply chain </li></ul>
  12. 12. <ul><li>The Outdoor Apparel Brand: </li></ul>
  13. 13. Sustainability Focus Areas COMMUNITY PRODUCT WASTE ENERGY
  14. 14. Focus Areas :: Defined <ul><li>Driving to create innovative processes that eliminate environmental and social impacts throughout the entire lifecycle of our products. </li></ul><ul><li>Minimizing our greenhouse gas emissions through responsible sourcing and maximizing resource efficiency. </li></ul><ul><li>Eliminating all processes and materials that do not add value to our business. </li></ul><ul><li>Creating an equitable and healthy environment in which we can work, live and play. </li></ul>PRODUCT ENERGY WASTE COMMUNITY
  15. 15. Overview <ul><li>Why? </li></ul><ul><ul><li>Collaborative </li></ul></ul><ul><ul><li>Comprehensive </li></ul></ul><ul><ul><li>Educational </li></ul></ul>a founding member of:
  16. 16. Collaborative ::
  17. 17. Comprehensive ::
  18. 18. Comprehensive ::       Lifecycle Stages Lenses
  19. 19. Comprehensive :: What could be missing????
  20. 20. Comprehensive ::
  21. 21. Educational :: = Opportunities
  22. 22. thank you
  23. 23. <ul><li>The Fashion Apparel Brand: </li></ul>
  24. 24. About Levi Strauss & Co. The inventor of blue jeans <ul><li>Founded in 1853 </li></ul><ul><li>Privately held </li></ul><ul><li>2010 net revenues: US$4.4 billion </li></ul><ul><li>11,000 employees </li></ul><ul><li>Brands: Levi ’s ® , Dockers ® , Signature ™ by Levi Strauss & Co., and dENiZEN ™ </li></ul><ul><li>Products sold in 60,000 retail locations in 110+ countries </li></ul><ul><li>Suppliers located in 45 countries around the world </li></ul>
  25. 25. Understand impacts with a product life cycle perspective Our 2007 life cycle assessments Raw Materials Product Manufacture Transportation & Distribution Use Recycling End Disposition Material Manufacture
  26. 26. Our life cycle approach continues E-valuate TM <ul><li>Use robust, quantitative, science-based approach </li></ul><ul><li>Inform product designers & developers </li></ul><ul><li>Build awareness internally & externally </li></ul><ul><ul><li>Systems thinking </li></ul></ul><ul><ul><li>Life cycle impacts </li></ul></ul>
  27. 27. But the LCA approach is complex with many factors There is no one way to measure life cycle impact Water Toxics - Environment Toxics - Human Land Use Intensity Waste Biodiversity GHG & Energy
  28. 28. Driving change in the supply chain <ul><li>The apparel/textile and outdoor industries are moving toward a life-cycle based approach </li></ul><ul><ul><li>Outdoor Industry ’s Eco Index </li></ul></ul><ul><ul><li>The Sustainable Apparel Coalition </li></ul></ul><ul><ul><li>Our retail customers are interested in our sustainable supply chain activities </li></ul></ul><ul><li>This will put increased emphasis on reducing the </li></ul><ul><li>impacts throughout the supply chain </li></ul><ul><li>Will become a license to do business </li></ul>
  29. 29. We need to be able to compare apples to apples! Fabric D Fabric A Fabric B Fabric C Fabric F Fabric E Fabric G
  30. 30. The power of the Eco Index <ul><li>Build internal awareness and systems thinking </li></ul><ul><li>Engage with suppliers and other companies </li></ul><ul><li>Drive transformation of the supply chain </li></ul>Collaboration is essential! Join us in our vision of industry working together toward product sustainability!
  31. 31. <ul><li>2. The approach </li></ul>Collaborative vs. competitive Complimentary vs. competing
  32. 32. OIA Eco Working Group (EWG) <ul><li>EWG facilitated by Outdoor Industry Association (OIA) - premier trade association for companies in the active outdoor recreation business </li></ul>100+ companies – brands, retailers, suppliers Three Goals of the EWG: Adoption of Eco Index ● Work toward global solutions ● Thought leadership
  33. 33. Eco Working Group Voting Members Current as of June 2011
  34. 34. Global collaboration Bicycle Industry Action Sports Industry Snowsports Industry NGOs
  35. 35. <ul><li>30+ Founding Circle members </li></ul><ul><ul><li>Corporate </li></ul></ul><ul><ul><li>e-NGO </li></ul></ul><ul><ul><li>Government </li></ul></ul><ul><ul><li>Academia </li></ul></ul>for profit members not for profit members <ul><li>adidas </li></ul><ul><li>Arvind Ltd </li></ul><ul><li>C&A </li></ul><ul><li>Esquel </li></ul><ul><li>Esprit </li></ul><ul><li>Gap Inc. </li></ul><ul><li>H&M </li></ul><ul><li>Hanes Brands </li></ul><ul><li>Intradeco </li></ul><ul><li>JC Penney </li></ul><ul><li>Kohl ’s </li></ul><ul><li>Lenzing </li></ul><ul><li>Levi Strauss & Co. </li></ul><ul><li>Li & Fung </li></ul><ul><li>Marks & Spencer </li></ul><ul><li>MEC </li></ul><ul><li>New Balance </li></ul><ul><li>Nike </li></ul><ul><li>Nordstrom </li></ul><ul><li>Otto Group </li></ul><ul><li>Patagonia </li></ul><ul><li>Pentland </li></ul><ul><li>REI </li></ul><ul><li>TAL Apparel </li></ul><ul><li>Target </li></ul><ul><li>Timberland </li></ul><ul><li>VF Corp </li></ul><ul><li>Walmart </li></ul><ul><li>Duke University </li></ul><ul><li>Environmental Defense Fund </li></ul><ul><li>U.S. EPA </li></ul><ul><li>Verité </li></ul><ul><li>Outdoor Industry Association </li></ul>
  36. 36. What is the OIA Eco Index? <ul><li>Common framework and language for benchmarking and measuring sustainability at the product level </li></ul><ul><li>Internal, supply chain-facing (at least for now) </li></ul><ul><li>Global tool </li></ul>www.ecoindexbeta.org
  37. 37. 5 Key Principles of Project
  38. 38. Complimentary with Existing Initiatives Product Design Guidelines Materials Guidelines & Indicators Packaging Guidelines & Indicators Manufacturing & Assembly Guidelines & Indicators Transportation Guidelines & Indicators Use & Service Guidelines & Indicators End of Life Guidelines & Indicators Facilities Guidelines & Indicators Corporate EMS: Marketing: Corporate Reporting:
  39. 39. So it should be easy to begin assigning an “Eco Index Seal” and score to products, right? Not so fast.. .
  40. 40. <ul><li>3. The Decision </li></ul>Internal-facing tool vs. consumer-facing label
  41. 41. Ongoing Challenges <ul><li>Completion of content and scoring </li></ul><ul><li>Systems development </li></ul><ul><ul><li>User-friendly software interface </li></ul></ul><ul><ul><li>Integration with companies ’ existing systems </li></ul></ul><ul><li>Third-party verification </li></ul><ul><li>Underlying data </li></ul><ul><li>Ongoing maintenance </li></ul><ul><li>Integration into supply chain </li></ul>
  42. 42. <ul><li>4. The support: </li></ul><ul><li>What are the benefits to keeping the Eco Index an internal-facing tool to start? </li></ul>
  43. 43. Q & A Beth Jensen, OIA [email_address] Kevin Hagen, REI [email_address] Colleen Kohlsaat, Levi Strauss & Co. [email_address] Adam Mott, The North Face [email_address]
  44. 44.

Hinweis der Redaktion

  • Retailer Fashion apparel brand Outdoor apparel brand
  • We ’ve worked hard on our operational footprint and learned a lot….. But the best work we’ve done indicates that the impact of product (full life cycle) is probably 10X our operations…
  • Expectation for retailers and brands have been accelerating. There is a sense that the retail should know nearly everything about a product and it ’s sources. This expectation is finding it’s way into the behavior of regulators, activists and consumers. Peer companies and brands have taken positions which accelerate the expectations –
  • Not about compromise: it ’s about innovation There was a time when breathable- waterproof was an oxymoron We should have confidence that we can have it all: Products that are better, cheaper, more environmentally benign
  • Responsible sourcing and procurement
  • 3. Overview of Eco Index (Beth - 3 min.) 5 guiding principles How existing certifications/labels are complimentary, not competing 4. Path to date and current status of Eco Index (Beth - 2 min.) Conscious decision of EWG early on to focus on internal-facing first and why this was a key decision Gaps that would need to be considered and filled before a credible consumer-facing label
  • Top line on photo: three goals of OIA EWG Points about OIA if needed: ~1,100 member companies throughout supply chain EWG is strategic initiative of Board of Directors
  • Recent Specialized announcement
  • If you remember one thing about this presentation, remember this slide because it is why the Eco Index project is special. The project is being built around five key guiding principles: Collaboration. The Eco Index is the result of thousands of hours of work by more than 100 companies in the outdoor industry. It represents unprecedented collaboration. Open-Source Information. The Eco Index is completely ‘open-source’ meaning that it is freely available for use by all companies. Everything we have, and intend to create, we want to be accessible so that it realizes maximum adoption. Transparency. It is critical that all outdoor industry stakeholders are able to view, understand and provide input into the ongoing development of the Eco Index. When complete, for those who want to know exactly how it works—we must make that readily available. Scalability. While the Eco Index is rooted in the outdoor industry, it has the ability to be applied within other industries and sectors. Additionally, it must work for companies that are only starting their sustainability journey as well as those who are well down the path. Global Reach. This must not be viewed as a North American initiative. The Eco Index must be a valuable tool to all members of the supply chain no matter where they are located.
  • At the core of the index work is our Framework. This framework forms a basis for all of our work, and applies to all products, and is a “touchstone” for our index development. In the Framework there are two major pieces: The Lifecycle Stages – or “ where” the impacts occur as the product is created; and the Lenses – or the “ what ” impacts matter. Although aspects of all these lenses are incorporated into the index tool, we have fleshed out the metrics and methodologies for three of these lenses—Water, Waste and Energy/GHG.
  • Decision was made early on to keep the project internal-facing first. An EWG vote that was debated, but this was the consensus. Pivotal point for the project: Eliminated competitive leanings Promoted information sharing Allowed focus to be directed toward creating content rather than deciding how to communicate externally Everyone recognizes we WILL eventually move to a consumer facing label. But many things need to happen before that becomes a reality.
  • Things that must happen before it can become a consumer-facing label Overlaying all: regulatory environment - i.e. FTC Green Guides