Roundtable of Social Impacts of the Electronic Sector Center for Responsible Business University of California, Berkeley Faculty Club

January 31, 2012

The Sustainability Consortium (TSC)

Vision
The Sustainability Consortium is advancing science to drive a new generation of innovative products and supply networks that address environmental, social and economic imperatives.

Mission
Through collaboration, the mission of The Sustainability Consortium is to design and implement credible, transparent and scalable science-based measurement and reporting systems 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

Academic partners

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

Marieke Meeusen Operations

Koen Boone Academic Director

Imke de Boer Scientific Director

Marjan van Riel Business Development

Sanne Dekker Research Associate

Build on existing science framework & network with other leading Research orgs Coordinate EU operations Meet with EU TSC Membership regularly and hold TSC events in European community Align with other European Initiatives and coordinate with government sectors Grow the European Market

Li Shen Research Associate

TSC Working Groups

Consortium Working Groups In Process
Logistics Assurance Small Appliances Coffee

Sector Working Groups

History of TSC
Date Summer 2009 Spring 2010 State Initial gift from Walmart Sustainability Measurement & Reporting System - SMRS Product Category Rules and LCAs for seven product categories Established new governance structure (Board, Exec Dir) Product Category Dossiers for 100 product categories Global expansion Opened EU Office (Asia & LA Next) SMRS Reengineering Project Strategic Planning Continued development, execution of SMRS 501 C 3 & Institute (Hybrid Academic)

Spring 2010 Fall 2011

Summer 2011 Fall 2011

Fall 2011 Winter 2012

2012+

SMRS definition
The Sustainability Measurement and Reporting System (SMRS) is the framework developed by TSC to the enable the creation, analysis, and communication of comparable and standardized information about the life cycle of a product.

create

analyze

communicate
Comparable and standardized information about the life cycle of a product and product category

Level 1 and 2 SMRS

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

Level 2 SMRS
Product Sustainability Declaration
Applies to the product level (e.g. JCs Frozen Beef Patties) Allows for direct comparison of products against the product category baseline: includes uncertainty Based on Baseline (LCA) Model + PCR
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Collaborative environment: Knowledge Base

Interactive IT platform, Knowledge Base, enables TSC members to collaboratively develop Level 1 LCAs and Category Sustainability Profiles

Screenshots of the web-based system, Knowledge Base

Category Sustainability Profiles: Credibility and Quality

How we assure that only the most credible, relevant and actionable information makes it.
We deploy a strict decision process to screen hypotheses obtained from a variety of sources.

Potential Issues Allegations

Opportunities Corrective Actions

Decision tree is based on the principles of science based evidence. Innocent until proven guilty
Organizing information based on the filter approach.

Supported by strong evidence?

Relevant?

Life Cycle Hotspots

Actionable?

Improvement Opportunities

Supported by weaker or conflicting evidence? No evidence but strong stakeholder opinion?

Additional Issues Stakeholder Concerns

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

Category Sustainability Profile

Basic category information

Environmental Hot Spots

Social Issues

Performance Indicators

Product Attributes

Manufacturer Practices

Supplier Management Practices

Certifications Stakeholder Concerns

Life cycle models

Product declarations
Brand owner and manufacturer info
Product details and attributes Level of customization and verification Lifecycle inventory results Energy, Water, Waste and Carbon Potential lifecycle impacts Lifecycle impact assessment (LCIA) midpoints

Performance indicators results by different categories

3rd party criteria: Certifications and ISO Eco labels

CONSUMER SCIENCE STUDIES CONDUCTED IN THE US, UK, GERMANY & Product Transparency: The New Frontier FRANCE Consumer Science Working Group
November 28, 2011

Green Consumers in the U.S.

TSC Sample: 3300 U.S. consumers
Walk the Walk
71% female More optimistic

Activists Walk the Walk

True opinion leaders

Believe everyones contribution is important including government and corporations Buy environmentally friendly products. Will sacrifice and pay a premium

Skeptics
Talk the Talk Pacifists

Talk the Talk

52% female Not as optimistic and more doubtful about personally impact Environmental action closer to nonactivist segments motivated by saving money

Antagonists

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

Current Lack of Trust and an Appetite for More Standardized Information

I trust the environmental and social claims I find on packaging

47% 75%

I wish a set of standards existed that would easily communicate how well a company, brand or product does in terms of their environmental or social responsibility

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

Research to Inform Communication Strategy is Underway

Launched the Communication Vehicles at the Point of Sale study to inform the communication strategy behind TSCs SMRS (Scheduled Completion = March 2012). The objective is to better understand how the design and delivery of sustainability messaging affects consumer usage rates interpretations brand perceptions purchase intent

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

Value of TSC Membership

Reduce Cost and Time to Do LCA Cost and time to measure, report product sustainability excessive TSC developing a Sustainability Measurement and Reporting System (SMRS) Enables creation, analysis, and communication of comparable and standardized information about life cycle of product

Reduce Cost and Time to Address Critical Issues Work directly with other corporate, NGO, and government stakeholders to drive progress Working collectively provides industry focus, economies of scale TSC Working Groups do research, innovation, and education

Value of TSC Membership (cont.)

Learn from World-Class Experts Over 100 organizations and 500 people involved Connections to top-quality research institutions TSC provides networking bridge to many other global initiatives Reduce Uncertainty Over What is Important Provide technical expertise to standards development Have early insight into what are important product sustainability attributes Co-create with other stakeholders to ensure standardization Align with Leaders and a Transformational Initiative TSC now considered a major force in sustainability movement A unique effort with growing global influence A philanthropic gift to ensure a better world

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)

For more information, please contact:

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

THANK YOU!