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European Management Journal Vol. 20, No. 2, pp. 109127, 2002 2002 Published by Elsevier Science Ltd.Pergamon
Printed in Great Britain
0263-2373/02 $22.00 + 0.00PII: S0263-2373(02)00022-1
Moving Business/IndustryTowards SustainableConsumption:The Role of NGOs
NANCY KONG, Yale University
OLIVER SALZMANN, IMD, Lausanne
ULRICH STEGER, IMD, Lausanne
AILEEN IONESCU-SOMERS, IMD, Lausanne
The negative environmental impact of current con-sumption patterns is increasing and becoming more
evident. Household/consumer behavior plays a sig-nificant role in shaping these patterns. A growingnumber of non-governmental organizations(NGOs) are focusing on this issue. The paper1
examines how NGOs could play an important roleas partners to business/industry in promoting sus-tainable consumption. It exhibits a number of minicase studies on innovative partnerships for productdevelopment, labeling, green purchasing, etc. Twoessential factors for success have been identified: (1)Consumers need to feel empowered to make a dif-ference through their behavior. (2) They should alsobe able to improve their quality of life. Further-more, direct consumer outreach and partnershipswith retailers are recommended as effective meansof changing consumption patterns. 2002Published by Elsevier Science Ltd.
Keywords: NGO, Partnerships, Environment, Sus-tainable development, Consumers, Households
Introduction
Sustainable consumption poses unique challenges toeach of the economic sectors private, public andgovernment. At the household level, it might meanbuying less in the short run, but ultimately it requiressome significantchanges in lifestyle. The question is,Are people willing to change or let go of their current
European Management JournalVol. 20, No. 2, pp. 109127, April 2002 109
behaviors? To the business/industry sector, sus-tainable consumption means the greening of the
supply chain, producing more environmentallyfriendly or eco-efficient products, and providing con-sumers with information about sustainable consump-tion through advertising, marketing and productinformation. But what are the incentives to take thesesteps? Is there a triple bottom line? To the govern-ment, sustainable consumption means using policytools to encourage the private and public sectors toachieve sustainable production and consumption.Above all, the problem requires a common solutionthe coming together of all the stakeholders to deviseviable strategies to tackle the problem of todays con-sumption trends.
As a first step in trying to broach the topic of chang-ing household behavior toward more sustainable pat-terns of consumption, we would like to examine therole of non-government organizations (NGOs) ininfluencing such behavioral changes. NGOs havebeen playing a powerful role in sustainable develop-ment, particularly in their partnerships with keystakeholders, in serving the needs of individuals andcommunities. Many of these NGOs are developing amore sophisticated understanding of environmentalproblems, based on sound scientific research and aredeveloping effective strategies to solve environmen-tal problems through strategic partnerships.
This paper seeks to identify initiatives and projectsbetween NGOs and other key stakeholders,especially households and businesses, to promote
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Consumers simply did not
seem willing to pay more for
higher recycled content
MOVING BUSINESS/INDUSTRY TOWARDS SUSTAINABLE CONSUMPTION
sustainable consumption. Using mini case studies, itexplores the questions:
How are NGOs educating households to changetheir consumption behavior?
How can NGOs be potential partners to businessesin promoting sustainable consumption (i.e. serveas a catalyst for a relationship betweenhouseholds/consumers and businesses)?
Finally, we will try to identify the salient factors forsuccess, future trends and needs, and the potentialfor further rolling out these partnerships.
Strategic Confrontation andEmpowerment
Confrontational approaches are still quite commonfor NGOs in pointing out problems to business, butNGOs are increasingly developing more strategicways to force companies to listen. They are nowencouraging the public to exercise its shareholderpower. Investment can be seen as the next mostdirect link between householdsand businesses after purchasingpower. Investment is not con-sumptionper se. However, it isan essential part of householdbehavior. Changing the way aperson invests in a sense ischanging individual behavior,and NGOs are gradually seeing shareholder poweras a lever to encourage businesses to adopt more sus-tainable practices. Friends of the Earths (FoEs)Green Paycheck Campaign2 tells people how toscreen their investments and use their shareholderpower so that money becomes a tool for change. Itinforms individuals how to confront companiesthrough shareholder advocacy. Co-Op America3 inthe US has an extensive Shareholder Action Network(SAN) program. (See section below for an examplein the soft drinks industry.)
These NGOs and others like them are working sideby side with socially responsible investment (SRI)groups to encourage and inform shareholders toexercise their power. And investors seem interestedin taking on a more active role, at least in demandingmore SRI, which is now one of the fastest-growinginvestment sectors, with 44 SRI funds worth morethan 3.3 billion (Financial Times, 2001).
Educating Shareholders and UsingShareholder Power to Bring About
Change (Plastics News, 2000)
The soft drinks industry is currently under pressurefrom its investors to increase the recycled content of
European Management JournalVol. 20, No. 2, pp. 109127, April 2002110
PET bottles and stop opposing bottle bills in certainStates in the US that require a higher recycling rate.
SRI groups (including Walden Asset Management,the Educational Foundation of America and Domni
Social Investments) holding about US$50 million inCoca-Cola Co.filed a shareholder resolution in Nov-ember 2000 asking the company to use 25% recycledcontent in its bottles10 times what it uses now. Asimilar resolution was also filed with PepsiCo Inc.NGOs such as GrassRoots Recycling Network(GRRN), a national network of waste reduction acti-vists and professionals running the campaign forZero Waste in the US, also plan to continue andexpand the campaign by working with Coca-Colaand targeting Pepsi. GRRN is leading non-profit par-ticipation in a new business/environmentalistalliance called Businesses and Environmentalists
Allied for Recycling (BEAR) and introducing share-holder resolutions.4
Since the early 1990s, Coca-Cola has had an ongoingprogram to conduct research on PET recycling tech-nologies that cost no more for consumers. In 1991 thecompany introduced the first plastic soft drinks
bottles with recycled contentbut was forced to stop after twoyears because of costs.5 Coca-Cola and its suppliers havecontinued to fund research todevelop new PET recycling
technologies. According to aCoca-Cola spokesperson, The
company has been exceeding its goal of using 10%recycled content in one of every four of its PETbottles,(Plastics News, 2000) but the companydeclines to comment on the exact targets that canbe reached.
While Coke, with its year 2000 appointment of a newCEO, Douglas Daft, is willing to engage in more opendialog with its shareholders, Pepsi is still reluctant.Part of the problem is that technology is not availableto allow these companies to make plastic bottles with
recycled content at an affordable price. The ironicpart of the story is that consumers simply did notseem willing to pay more for higher recycled content.
At the end of 2000, the Educational Foundation ofAmerica, which owns about $550,000 in Coke stocks,hired the As You Sow Foundation to negotiate arecycling deal with the soft drinks companies. Thefoundation hopes to motivate the owners of 10% ofthe shares in Coke and Pepsi to vote for the resol-ution. This is a good referendum for shareholdersand a good chance to educate them,said Mackerronas he pointed out the foundations recent success inpersuading home improvement giant Home Depot tophase out the sale of old-growth lumber. We thinkthis demonstrates that shareholder activism doesworkand it makes good business sense [tochange](Plastics News, 2000).
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Some key lessons from the alliance:
Shareholdings must be somewhat substantial tohave clout.
Availability of technologies and cost are major
bottlenecks for change. It is difficult to convince consumers to pay morefor recycling. (Is a quality of life issue at stake?)
Company character and management leadershipmake a difference.
Banding together (environmental organizations,funds and foundations) to increase shareholderpower in terms of percentage of holdings is a stra-tegic move.
Close engagement and open dialogs are essentialto progress and resolution.
From Confrontation to InnovativePartnerships
NGOs are gradually steering away from confron-tation to focus more on forming proactive partner-ships with business/industry. However, the leveland depth of engagement between NGOs and com-panies still varies. Partnerships can take the form ofad hoc opportunistic coalitions or they may involvecommon problem solving or the lending of credibilitythrough the use of, say, logos (Steger, 2000).
Where a partnership is formed between a businessand an NGO, the issues addressed still revolvemainly around sustainable production of productsand services. The issue of sustainable consumptionand changing consumption behavior is often over-looked from a business perspective. As a result,NGOs canand often dorun their consumer andbusiness campaigns separately when addressing thetopic of sustainable consumption. Many NGOs pro-vide information over the Internet on how to greena household or how to be a greener consumer; themajority of these NGOs also have business greeningprograms, looking at corporate responsibility, apply-
ing industrial ecology concepts to production, etc.However, even though the NGO-business partner-ships are proactive and aimed at common problemsolving, there is often little or no interactionbetween such programs and their consumer out-reach campaigns in terms of combining consumerneeds and business priorities. Clearly, there is a lackof strategic approach in this area.
Creating Demand from the Supply Side
Sustainable consumption is about satisfying theneeds and the quality of life aspirations of house-holdsand individuals through the use of sustainablyproduced products and services in a sustainablemanner. Therefore, engaging the two sidesdemand
European Management JournalVol. 20, No. 2, pp. 109127, April 2002 111
and supplyin a common dialog or at least address-ing the needs of both sides, is a priority in promotingsustainable consumption which some NGOs can andshould act upon. There are several innovative pro-jects in which NGOs and businesses are working
together to influence, or even create, demand bydeveloping innovative and sustainable products.Even though the idea of creating demand or stayingahead of the market is not new to business/industry,working with NGOs to develop sustainable productsis certainly a new venture. Moreover, the range ofprojects and products that these NGOs are able topropose is tremendous. All sectors of a householdsbasic needs (such as food and housing) can becovered.
First on the list is a close one-on-one partnershipbetween an NGO and a household products com-
pany. (A similar, but more dated, example is Green-peaces cooperation with German refrigeration firmsto create the Greenfreeze Refrigerator to tackle theproblem of CFCs and ozone depletion) (Verheul andVergragt, 1995.)
Partners in New Product Development:SC Johnson and AIE (Alston and Roberts,1999)
PlayersIn 1995 the Alliance for Environmental Innovation(AEI), a highly respected environmental organizationwith a track record of achieving innovative solutionswith companies like McDonalds, UPS, Starbucks andBristol Myers, teamed up with SC Johnson & Son,Inc., one of the worlds leading providers of qualitycleaning, maintenance and storage products forhouseholds. They set up a joint taskforce to integrateenvironmental decision making into new productdevelopment.
AEI saw SC Johnson as a promising partner becauseits record of concern for the environment and itsleadership in product formulation and marketingoffered opportunities to further integrate environ-mental considerations at each stage of product devel-opment. It received no financial support from SCJohnson and barred the company from using itsname in any advertising or promotional material.
SC Johnson was also eager to join forces with AEI. Amarket-driven company, SC Johnson believes inlaunching products to better serve the needs of con-sumers, especially in catering to their growing healthand environmental concerns. This unique partner-ship has aided SC Johnson by linking consumer andcompany environmental objectives more closely tothe new product development process through con-sumer research and creating a new product design
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No brand currently in the
market has achieved high
recognition for being
environmentally
responsible.
MOVING BUSINESS/INDUSTRY TOWARDS SUSTAINABLE CONSUMPTION
framework, along with tools to measure the environ-mental performance of its products.
Activities
The work was based on a joint agreement that theearlier environmental objectives are introduced in theoverall product development process, the greater theresulting environmental and business benefit (Alstonand Roberts, 1999) A taskforce was formed; itincluded several scientists (a scientist from AEIjoined SC Johnsons new product team, bringing anenvironmental perspective to decisions made early inthe development process), a marketing specialist, aresearch analyst from AEI, and members of theenvironmental, product development, product safetyand marketing staff at SC Johnson.
Outcome
A potential marketAEI helped design and interpret a major marketstudy by a product development team at SCJohnson and found that over 75% of consumerswill take some action on environmental issuesthat affect them personally. Environmental pro-duct concepts are most successful when theenvironment is articulated in terms of the con-sumers personal, home or
community environment.The research showed thatthere islatent and real con-sumer desire for productswith environmental fea-tures and no brand cur-rently in the market hasachieved high recognitionfor being environmentallyresponsible.According to Victoria Mills of AEI, the study alsosuggests a much bigger opportunity to addressthe environmental concerns of the mainstream
consumer, and second, it offers new insights onhow to translate those concerns into purchasingbehavior.
Translating health into an environmental focusaddressing consumer needs
Sensing that health is the biggest rising concernamong consumers, SC Johnson created a new lineof products catering to allergy sufferers. The jointproduct development team came up with pro-ducts that eliminated allergens and chemicaltreatments. The products also contained reducedlevels of volatile organic compounds (VOCs) andextended product life through reusability, dura-bility and long-lasting formulation. Such pro-ducts are in response to consumer needs, asidentified through AEIs consumer research, butalso embody strategies for environmentalimprovement (see Appendix A Table 2).
European Management JournalVol. 20, No. 2, pp. 109127, April 2002112
Avoiding costRedesigning products after they are launched isusually expensive, time-consuming and, aboveall, avoidable if due consideration is given earlyin product development. If the environmental
strategy is implemented early: 1) meetingenvironmental goals is less cumbersome and 2)the resulting products are more responsive toconsumer needs.
Breaking down the green wallOrganizational barriers are often considered to bethe greatest barriers to environmental manage-ment. This is because information to help productdesign achieve environmental objectives is oftenwidely scattered within a company, with verylittle communication between the business teamsproduct developers and the corporate environ-mental staff, who have the know-how and are
responsible for the environmental performance ofproducts. AEI brought together the differentdepartments at SC Johnson to engage in thedesign process, explicitly aligning environmen-tal concerns with key business goals, and design-ing consistency into the overall company man-agement system(Alston and Roberts, 1999).
A new tool to measure product environmentalperformance
AEI helped develop metrics that are specific indi-cators of a products environmental performance(see Appendix A Table 3). These metrics measure
aspects of a products
environmental impactacross each stage of the pro-ducts life cycle. The metricscores are benchmarked toencourage systemic con-tinuous improvement of theproducts. The rate of improvement over time isalso assessed and differentproducts and product
designs that serve the same function are com-pared. The resulting computer-based environ-mental product design system, which SC Johnson
named STEP (Success Through EnvironmentalProgress), has been integrated into the companysintranet. It was critical that everyone in theorganization involved in product developmentwhether in marketing, R&D, product formulationor packaging engineeringbe able to use the toolregardless of the extent of their environmentalknowledge, commented Dr Richard Denison,senior scientist for the AEI.
Success
AEI helped the company identify consumersenvironmental preferences.
AEI also helped the company realize that it has agreat opportunity to change consumptionbehavior and that there is a clear link between the
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design of a product and its sustainable consump-tion and use once consumers have bought it.
AEI will make publicly available the general nat-ure of tools and methods developed to supportenvironmentally responsible product design.
A new strategy for marketing environmentallyfriendly products was proposed. New products with quantifiably higher eco-
efficiency have been introduced (i.e. the newGlade Plug-ins last 50% longer and have 16 timesless packaging waste than competing products).
Environmental performance of products in SCJohnsons core air care, insect control and homecleaning business in the US was assessed andreported using STEP starting January 1999. Thisprocedure was later rolled out sequentially toother regions of the world. All project teamsworldwide have been trained in the STEP tool.
For all new and re-staged products, project teamswill be actively encouraged to make environmen-tal performance improvements against current SCJohnson benchmarks, to be measured by STEP.
The next project is a demonstration of bothtechnicaland social innovation in providing solutions forfuture housing. An NGO has been successful inbringing together the various stakeholders and dem-onstrating that having multiple partners is mostnecessary to develop innovative solutions. The pro-ject illustrates that NGOs can and should partnerwith each other to gain funding and technical sup-
port as well as maximizing credibility. Consumersare also given a choice with this new product.
Sustainable Housing: Beddington ZeroEnergy Development (BedZED)(Beddington is a village in the borough of Sutton,
southern England)
Players
BioRegional Development Group is an environmen-tal organizationthat works on projects to bring localsustainability into mainstream business and industry.It was responsible for sustainability issues relating tothe BedZED project. It worked closely with the archi-tect and engineers on developing an integrated trans-portation plan, the selection of constructionmaterials, energy and waste efficiency, renewableenergy supply and ethical financing.
Main stakeholders:
Local government, London Borough of Sutton.BedZED is seen to provide solutions to many ofthe problems facing planners and politicians asthey try to meet the increasing demand for hous-ing in the 21st century.
European Management JournalVol. 20, No. 2, pp. 109127, April 2002 113
Leading architects and engineers, with Bill Duns-ter, a well-known green designer.
The Peabody Trust, Londons largest housingassociation, with a focus on providing low-income housing.
The project faced initial hardships because it wassuch a new idea and there were many misconcep-tions about green design. However, WWF-Inter-national, a funding partner of BioRegional, greatlycontributed to the success of the BedZED project byproviding technical advice and lobbying support insecuring the site for development. (The bid for thesite was well below what others had offered.) WWFhas contributed Sfr 25,000 to Sfr 30,000 per year tothe group for about five to six years.7 The fundingsupport has also brought name recognition to thegroup, which was established in 1994. WWF is wil-
ling to support BioRegional projects as a wholebecause its initiatives in forest conservation and cli-mate change help WWF realize its Global Prioritygoals.
Outcome
The 82-home estate is regarded as a model of howLondon could be made more environmentallyfriendly in the future. In fact, it is the largest housingdevelopment in Europe to reduce CO2 emissions(Evening Standard, 2001).
BedZED offers a systems solution to the challenge ofsustainable living within the urban environment. Itintegrates environmental, social and economic needsand brings together proven strategies to reduceenergy, water and car use. It is a demonstration of:
Environmental technologies in all aspects of living. Social innovations in high density housing. Its mix of living and workspace cuts down on
commuting and helps boost the local economy.The mix of homesfor sale and rentat afford-able, market rates will attract both high and low
incomes, which are the basis of socially inclusivecommunities. Life cycle analysis from site selection and construc-
tion to operation and end of life of buildingacradle-to-cradle approach.
Creative use of brownfields, maintaining greenspace and protecting biodiversity.
Thefirst model home opened in April 2001; buildingwas scheduled to finish by the end of 2001; 1000people have already expressed an interest in buying.
BedZED will enable local authorities to achieve sus-tainable development in Sutton by:
Meeting local policies promoting a modelapproach to energy conscious development.
Offering ways to meet planning, housing, trans-
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Food/nutrition in
particular are responsible for
42% of the total ecological
footprint in Western
Europe
MOVING BUSINESS/INDUSTRY TOWARDS SUSTAINABLE CONSUMPTION
port and local Agenda 21 targets, while combiningenvironmental, social and economic benefits.
Achieving recycling targets of 80% by 2005. Implementing a sustainable transport strategy. Exceeding targets on home energy efficiency.
Prospects
BedZED showed stakeholders that going green is notjust a luxury that only the well-off can afford. In fact,Peabody Trust tenants are mostly on low incomesand could really benefit from these energy-efficientyet affordable homes through saving on energy andwater bills. The selling prices of these homes wouldbe comparable to those of conventional homes in thearea.Building an estate with such attention to sourc-ing of materials, fuel efficiency and the lifestyle of the
future residents isnt expensive, but it does requireplanning and enthusiasm,commented Malcolm Kirkof Peabody Trust. Jo Taylor ofBioRegional agreed, The pointabout BedZED is that it willmake it so easy to reduce con-sumptionIts just going to bevery easy to live, be comfort-able and be green. ArchitectBill Dunster added, It allowsindividuals to make a differ-ence to problems like globalwarming through their choice
of home. BioRegional will work to secure furthersites for BedZED developments.
BedZED will bea model approach to future housingin urban areas. For example, population in the US isexpected to increase by 37 million in 15 years andabout 1.5 million new homes per year will be builtand furnished. With studies showing that 87% ofhome buyers consider the energy efficiency of a newhome (American Demographics, 2001). there needs tobe a more comprehensive approach to housing, andan NGO in this case has led the way with a pilotproject in the planning, design and implementation
of such an approach.
Food and nutritionare a basic necessity of life. How-ever, the environmental consequences of food con-sumption, which is directly linked to production, arequite enormous. According to the WWF 2000: LivingPlanet Report, food/nutrition in particular are respon-sible for 42% of the totalecological footprintin West-ern Europe, twice as much as the footprint of build-ing and living (21%) and three times more than thatof mobility (14%) (WWF-Switzerland, 2000).
Besides the issue of the sustainability of food pro-duction and consumption, there are other growingconcerns among consumers, such asfood safety andthe emergence ofgenetically modified foods.WWF-Switzerlandlaunched theFood for the Living PlanetCampaignin 2000 on a national level in Switzerland.
European Management JournalVol. 20, No. 2, pp. 109127, April 2002114
Like other environmental organizations, such asFriends of the Earth and Greenpeace, WWF-Switzer-land also has a goal of protecting the health of con-sumers and the environment. However, unlike theothers, it has a much morecomprehensive approach
to consumption. Instead of just focusing on oneparticular issue, such as GMOs or pesticide use, itwishes to target changing food consumption andpeoples eating patternsit is striving to create agreen demand for eating.
WWF-Switzerlands Food for the LivingPlanet Campaign
Players
Known worldwide by its panda logo, the WorldWide Fund for Nature (WWF)is one of the worlds largestindependent conservationorganizations. It was estab-lished in 1961 and today hasalmost 5 million supporters anda global network active in morethan 90 countries. WWFs mis-sion is to:
Conserve the worlds bio-logical diversity.
Ensure that the use of renewable natural resourcesis sustainable.
Promote the reduction of pollution and wastefulconsumption.
Activities
Need-field approachWWF-Switzerland believes that the supply-demand chain is structured according to theneeds and wants of consumers (to attain a certain
quality of life) and that these needs and wantsshould be satisfied along with environmentalneeds. Therefore, it is important to understandthe needs of consumers (or consumer values),which include taste, health, convenience, animalwelfare and ecology.
Influencing and changing markets and lifestylesWWFs focus includes the three main sectors ofhousehold consumption 1) food; 2) housing andliving; and 3) mobility. Through scientific analy-sis, WWF has identified thatfirst on the Europeanagenda is the food footprint. In its Food for theLiving Planet Campaign, WWF-Switzerland aimsfor a 10% reduction of the nutrition footprintwithin five years.
A new campaign focus with specific targetsInstead of publishing more consumer infor-mation and lobbying for change in agricultural
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MOVING BUSINESS/INDUSTRY TOWARDS SUSTAINABLE CONSUMPTION
policies and pointing the finger at companies,which has been its strategy for the past 10 years,WWF is engaging the retail sector to offer newand more sustainable food products and linkingchanging food consumption to its Global Pri-
orities in climate change, oceans, species and for-ests. WWF has set specific targets in order to miti-gate problems within each of its Global Priorities.Goals are set for Switzerland and for the wholeEU for the years 2001 to 2005 (see Appendix BTable 4).
-WWF-Switzerland is currently working with 40companies in the retail and food services sector.Since 56% of total food expenditure is in the retailsector, it has become a priority to focus on theretail sector through more communication andinnovative partnerships to provide sustainable
products (organic, seasonal, regional, certified,fair trade).-WWF has also begun cooperating with the cater-ing business, since 44% of food expenditure is oncatering/restaurants and other food services(WWF-Switzerland, 2000). The NGO has workedclosely and creatively with food services todesign, for example, WWF Weeks for the menuand onepermanent WWF dish. It is also workingwith high-end gourmet restaurants to gathermedia attention and set trends for fashionablediets. It is helping the sector to increase its offer-ing of organic and regional products.
Using labels to inform purchasing decisionsInforming consumers about the impact of woodproducts on forests worldwide and how they canstop deforestation through buying only woodproducts carrying the FSC (Forest StewardshipCouncil) eco-label. Using advertisements and cel-ebrity endorsements as part of its strategy.Educating consumers about overfishing in fish-eries today and how they can stop overfishingthrough buying seafood that carries the MSC(Marine Stewardship Council) label or eating outin restaurants that serve environmentally fri-endly seafood.
Encouraging and working with retailers and foodservices to procure more of these labeled pro-ducts.Evaluating eco-labels, especially for food pro-ducts, and encouraging sound purchases.
Success
According to Marcel Odermatt of WWF-Switzerland(Odermatt, 2001), the campaign has been successfulin driving market demand for organic products,especially in Switzerland. However, because the cam-paign is still relatively new, it is difficult to gaugeits overall success and attribute the change in eatingpatterns that has occurred solely to the campaigningeffort. There are certainly outside factors, such asBSE, to consider. The campaign follows a linear
European Management JournalVol. 20, No. 2, pp. 109127, April 2002 115
model of outreach, where direct feedback fromhouseholds is probably absent. Consumers are fedthe information, but their behavior does not alwaysreflect the intended outcome of the campaign. Engag-ing in directconsumer/household outreach (such as
workshops and other grassroots campaigningactivities) is crucial to the success of the campaign.However, WWF seems to focus more on workingwith the retail sector and outreach to consumersmainly through media contact.
The project below, an academic research initiative,illustrates a potential new strategy for NGOs toengage many stakeholders in developing sustainablescenarios and strategies for future households andsustainable consumption. It seems a more compre-hensive strategy in that it directly engages both busi-nesses and consumers at the same time.
The SusHouse Project: Strategies forSustainable Shopping, Cooking andEating (SCE) (Young et al., 2000; Quist et al.,1999).
The SusHouse (Strategies towards the SustainableHousehold) project was an EU-funded research pro-ject (running from January 1998 to June 2000) thataimed to develop and evaluate strategies to encour-age more sustainable household activities. The pro-ject assumed that a combination of technological, cul-tural and institutional changes was necessary toachieve a factor of 20 improvement in environmentalimpacts and explored what and how householdscould contribute. The project aimed to use work-shops to gain broad stakeholder participationin theconstruction and assessment of sustainable livingscenarios.
Players
The SCE experts from different stakeholder groupswho participated in the workshops emphasized thatsustainability from the point of view of the house-hold implies a view of the whole SCE supply chain.In the British and Dutch workshops there were rep-resentatives from:
Consumer and environmental NGOs (e.g. Con-sumers Association, UK; Dutch Centre forNutrition).
Food service sector (e.g. Dutch Branch Organiza-tion for Catering).
Retail and wholesale (e.g. Tesco Stores). Kitchen equipment manufacturers (e.g. Electrolux
Industrial Design Centre, UK; Philips DAPDom-estic Appliances and Personal Care, NL).
Food producers (e.g. National Farmers Union,UK; Unilever, NL).
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It is still not clear how
companies can run ads to
encourage sustainable
consumption.
MOVING BUSINESS/INDUSTRY TOWARDS SUSTAINABLE CONSUMPTION
Research and consultancy (e.g. Open University,University of Ulster, Institute of Food Research,UK; Delft University, SWOKA Institute for Stra-tegic Consumer Studies, NL).
Government (e.g. MAFFMinistry of Agriculture,
Fisheries and Foodconsumer panel, UK;Governmental Program for Sustainable Techno-logical Development, NL).
Activities
The SCE focus is on all aspects of food consumption,from agriculture, through food processing, shopping,home storing, cooking and eating, to the disposal ofwaste and consumer durables. It involves issues ofnutritional balance and adequacy, and incorporatesstrong cultural and emotional aspects. It includes
decisions of household members influencing con-sumption and purchasing patterns and determining:
The balance between eating in and eatingout/home delivery/take-away.
The timing and types of meals eaten. The balance between pre-prepared and unpre-
pared food. The organization of cooking and shopping. How much food is grown in hobby gardens and
how much is bought.
These decisions of household members have direct
implications for the following sectors:
Food service (eating out ver-sus take-away and homedelivery).
Retail (purchase from super-markets or smaller foodretailers, direct purchasefrom wholesalers, direct pur-chase from growers).
Food processing (different patterns of householdeating will change the balance between differentprocessing methods).
At a typical scenario-building workshop, after a briefand informal introduction, participants took part ina creative brainstorming session on ways to achievesustainability in SCE. This represented the diversifi-cation phase. In the following convergence phase,groups of participants divided the ideas into more orless coherent clusters, which were then further elab-orated into concrete proposals for new products andservices as well as required cultural and insti-tutional changes.
The workshops results were subsequently developedby research teams into design-orienting scenarios(DOSs). Each DOS provided a snapshot of a personliving in that particular scenario in the year 2050(refer to Appendix C Table 5 for examples). For eachDOS, three assessments were conducted:
European Management JournalVol. 20, No. 2, pp. 109127, April 2002116
Environmental reductions, for example in pestic-ide use, packaging, water and energy usage, andfood transport. The environmental assessmentused indicators to assess if the DOSs achieved aFactor 20 reduction in household environmental
impacts. Economic credibility, for example localization ofagriculture supply; move away from large super-markets to many smaller local shops; differenttypes of supply chains possible (local and green,and global large scale).
Consumer acceptance, for example likes and dis-likes.
Strategy workshops then developed strategies andpolicies to start to move society towards the DOSs.They focused on developing implementationmethods, ways stakeholders could cooperate,
research agendas (for lacking knowledge) and con-crete short-term follow-up. Strategies and policy rec-ommendations from three workshops included ideassuch as:
Local and green:local credit cardsto reward localpeople shopping locally; using tax on pesticidesfor organic growers subsidies; multifunctionalcommunal kitchens, for example at schools;reverse out of town planning trends by applyingtaxes; and refurbish the town infrastructure,including creating markets.
Virtual shopping: incentive schemes for online
shopping, local public access Internet equipmentinstalled in houses and com-munity centers; tax parkingspaces at supermarkets, pro-vide storage on street; legis-lation for food supplier tocollect waste.
High-tech eating: disposaltaxes for appliances; meterenergy use and award
rebates for under-use; compulsory disclosure instores of running costs of an appliance over its life-time; returnable fridges with deposits; compulsory
home economics and life skills at school, includingenergy efficiency.
Success and Prospects
The SusHouse project offered a model approach inengaging different stakeholders in a discussion forsustainable solutions for households. This was arather more comprehensive approach than simplyengaging one or two sectors of the economy andinvolved feedback from all the relevant players. Theearly involvement of consumers and/or their rep-resentatives in the design and innovation processwas crucial, especially since the aim was to changeconsumption patterns. Developing a realistic scenariothat most households will buy into remains a keyconcern.
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Media as a Partner and Tool
The media can be viewed as an industry that pro-vides products, although ephemeral, that can gre-atly influence and shape peoples values and aspir-ations.Media contribute to the development of therecent consumer culture...(The Media, 2001).
NGOs can influence the media to create more sus-tainable products that send out a different mess-age.7 However, NGOs need to make the issue clear,which is not easy when it comes to defining sus-tainable consumption. The media prefer to featurenews, rather than reporting on gradual changes.
The media can contribute to shifts in consumerbehavior, but consumers may not be interested in, orcapable of, absorbing complex information abouttheir consumption. Companies like Chevron and BPhave used the media to portray their environmentalimage. These ads can all indirectly inform consumersabout environmental issues and that they areimportant. However, it is still not clear how compa-nies can run ads to encourage sustainable consump-tion.
Since NGO partnerships with companies receive afair amount of attention, because big companies tendto have a higher media profile, there may be opport-unities for NGOs running ad campaigns targetingsustainable consumption8 to ask companies forspon-sorship. Depending on the content of the ad, compa-nies might be interested in the prospect of greeningtheir own image.
Even though some people argue that ads can onlyspread awareness and not change behavior, ads are,nonetheless, a starting point. Not many media cur-rently promote sustainable consumption.
The new media (e.g. the Internet, interactive TV),however, are changing consumerism, giving con-sumers new powers. Sources of information aboutproducts and companies are more easily accessible.New media also provide new opportunities to con-sume. Electronic payment methods could increasespending. Overall, the environmental impacts arestill uncertain.
The Internet
Green Shopping Made Easy
Many e-commerce sites, such as care2.com, shopfor-change.com, iGive.com, are devoted to all-greenshopping with a percentage of the profit donated tonon-profit organizations like Environmental Defenseand the National Wildlife Federation. A search onGoogle for green products retrieves 8500 hits; awhole range of household products advertised as
European Management JournalVol. 20, No. 2, pp. 109127, April 2002 117
green is also on offer. This puts green shopping rightat our fingertips. However, does this mean that weare in fact consuming more? What about the energyimpact of shipping?
NGOs Using the Internet to EmpowerHouseholds
http://www.topten.ch/ is a site supplying productinformation on environmental standards and rec-ommendations of the best-performing products (cars,home appliances, building materials, etc.)
www.formyworld.org is the site of a partnership ofnon-profit environmental organizations, includingEnvironmental Defense and the National WildlifeFederation. This environmental website can be per-
sonalized to a neighborhood/environment andteaches individuals about taking action. ForMyWorldprovides seven different content channels, coveringeverything from buying green cars to wildlife andglobal climate change. Content partners include aca-demic databases, publishers and independent newsservices. A group of editorial advisors including dis-tinguished environmentalists, scientists, public policyexperts and journalists helps guide the developmentof ForMyWorld.
NGOs Linking Households to Businesses
Through the Net
www.betterchoice.ch is an interactive website cur-rently under development by WWF-Switzerland. Itincludes a section where the individual can check hisor her lifestyle. Consumers can post items on onlinebulletins, and the site also links consumers to busi-nesses through virtual dialogues between the two.
Third-Party Assessment
Labeling as a Means and Tool
What does labeling mean in the eyes of the consumerand how does it satisfy needs and help consumersachieve a better quality of life? Moreover, will itallow consumers to move towards sustainable con-sumption? While the answers are not clear, sincemost labeling schemes have only recently come to bepopularly accepted, we can, however, say that cred-ible labeling is a form of empowerment in the eyesof the consumer, and the consumer needs to perceiveit as such. With information and knowledge pro-vided on a label, consumers finally have the infor-mation to choose which brands or products theywould like to support. This is a strategy that seemsto be more effective than providing information in anewspaper article about buying or not buying certainproducts because of their environmental impacts.
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No individual or nationalgovernment has sufficient
personal interest to prevent
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In a novel approach, WWF has worked withbusiness/industry to design labeling schemes andhelp launch independent certification bodies. Thisillustrates the high level of commitment from bothsides and gives them the opportunity to see the prob-
lem through each others eyes. For businesses, thereis a true incentive to use these types of labelingschemes to solve future supply problems. The press-ure tofind a solution has increasingly come from thedemand side, as retailers and consumers are becom-ing more and more aware of sustainability issuesthrough NGO campaigning and educational pro-grams.
Confidence in such labels must be instilled by run-ning campaignsto educate all stakeholders about thelogos and what supporting them means. Credibilityof the logo and information
along with the credibility of thedifferent stakeholders involvedand their level of partici-pationare all important fac-tors in determining the successof a label.
Through a labeling scheme, theNGO is essentially doing three things:
1. Creating a green market demand by educatingwholesale and retail businesses about the impor-tance of sustainability as a long-term business
strategy.2. Creating a sustainable supply by leading whole-
salers and retailers to put pressure on their sup-pliers to change existing ways of harvest.
3. Creating a green market demand at the householdlevel by educating and empowering consumerswith a different and sustainable set of choices.
Labeling has become a strategy for WWF since itssuccess with the Forest Stewardship Council (FSC),which was created in 1993 when it led a coalition ofNGOs, businesses and government entities to protectthe worlds forests. In another labeling scheme, for
the Marine Stewardship Council (MSC), the chal-lenges were very different.
Best Practice in StakeholderManagement: The Marine StewardshipCouncil (MSC) (Steger, 2000)
The fishing industry provides a perfect example ofcooperation between NGOs and corporations.Although the depletion of fish stocks will have anegative impact on the growing world population,fish are still freely available and can be commerciallyexploited. Even though everybody involved has atleast some understanding that they are heading fora collective catastrophe, no individual or nationalgovernment has sufficient personal interest to pre-
European Management JournalVol. 20, No. 2, pp. 109127, April 2002118
vent overfishing. In addition, most governmentsopposefishing restrictions because of the subsequentjob losses. Given this environment, two leaders fromvery different businesses decided to tackle thispressing problem together. In 1997 Unilever, a lead-
ing consumer goods manufacturer and the largestseller offish sticks in the world, and the World WideFund for Nature (WWF) started the MSC. The aim ofthe MSC was to establish a certification scheme forsustainablefishing.
Unilever and WWF had different goals for startingthe MSC. For Unilever, it was a way to protect mar-ket share and ensure long-term survival. Moreover,the company expected some spillover ingoodwill/corporate citizenship among its con-sumers. For the WWF, it also implied entering new
ground. Michael Sutton, the
WWF co-coordinator of theMSC, explained: We had tochange the rules of the game.People had to come to usbecause they needed our com-petence and reputation if theywere looking for new ways ofproblem solving and substi-
tutes for regulations. I believed that governmentswere not able to stop the overfishing. Therefore, wehad to develop long-term solutions, which wereenvironmentally necessary. The next step was to cre-ate economic incentives in order to make them politi-
cally feasible. One thing was certain: where industryand the market led, governments were likely to fol-low.
While establishing the MSC, the challenge for theWWF was to keep the sandals without moving tooclose to the suits. After all, the WWF was anenvironmental NGO and its most important assetits credibilitywas on the line. After the MSC wasfounded in 1997, both stakeholders soon realizedthey were in the same boat. The MSC carefullydeveloped its criteria for sustainable fishing in closecooperation with industry and conservation experts.
Nevertheless, the set of criteria underwent a con-siderable testing phase in real life before it wasimplemented. In March 2000, the MSC introduced itsfirst certified fish using the certification scheme forsustainablefishing.
Key Learning Points
Immense scrutiny from other stakeholders shouldbe expected (even Greenpeace failed to supportthe MSC) and stresses the importance of estab-lishing an independent organization as soon aspossible.
Creating a standard and communicating it to themarket requires a lot of media attention (the MSCorganized a road show in nine countries).
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Maintaining credibility requires constant manage-ment attention.
Time is running against you.
There is a constant trade-off between short-term com-
mitments to satisfying shareholders and long-termcommitment to social change.
Instead of backing off after the MSC became inde-pendent in 1999 (as Unilever did), WWF continues toplay a strong supportive role in campaigning, moni-toring progress, engaging stakeholders and lendingits credibility to MSC activities. Through its Endang-ered Seas Campaign,9 WWF is currently workingwith fishers and local communities, businesses andretailers, as well as governments and environmentalorganizations, to:
Safeguardfisheries and marine biological diversityby establishing marine protected areas.
Reduce wasteful government subsidies that con-tribute to overfishing.
Create market incentives for sustainable fishingthrough the MSC certification initiative.
Since the scheme is still very young, WWF has notyet begun a full-range campaign in terms of con-sumer outreach. Its current main focus is publicawareness. Complementary efforts aim to target theretail sectorto procure MSC labeled products. Many
retailers, in turn, urge their suppliers to apply forMSC certification.
However, the process does not simply end with thecertification: The certifying authority may requirefurther corrective actions to be taken within a speci-fied timescale. In the case of the New Zealand HokiFishery, one of the worlds largest white fish fish-eries, measures to further reduce seals by catch wererequired. NGOs play an important role in holding thecompany responsible for these corrections. RetainingMSC certification has become a particular concern for
thefishery because of the demonstrated commitmentfrom the retail sector. Many European retailers haveproclaimed that they will not purchase from the Hokifishery until the required corrective actions havebeen taken.
It can be concluded that certification standards andcapacities required for their implementation areimportantfactors for success. Tangible benefits suchas price premium or improved market access (inrelation to the cost) also play a major role.
Most of the debate on MSC today is not on why buthow. Conservationists and industry have begun torealize the same objective: Protecting the marineenvironment to ensure that fish stocks remain at asustainable level (May, 2001).
European Management JournalVol. 20, No. 2, pp. 109127, April 2002 119
Product Testing and the Role of Non-EnvironmentalNGOsBesides labeling, disclosure of product informationthrough, for example, product testing allows con-sumers to compare quantitative facts and figures to
make a balanced choice between products. Mostimportantly, this information provides a concretelink between a purchasing decision and its environ-mental impact.
NGOs such as consumer organizations, which mightnot have a specific environmental agenda, can stillplay an important role in providing information on:
Life cycles of domestic appliances (e.g., washingmachines, televisions, computers and coffee-makers) to improve consumer advice on replacing,repairing, upgrading or recycling these appliances.
Testing for the environmental impact of products(e.g., cars, refrigerators, household chemicals, etc.)and developing standardized checklists andmethods for environmental aspects in comparativetesting programs.
Producer-generated environmental claims, includ-ing drawing up a best practice list to prevent mis-leading advertising.
According to Consumers International, many con-sumer organizations have officially adopted a com-mitment to sustainability in their mission statement(The Netherlands, Austria, Germany, Sweden and
Norway).
10
There are over 260 consumer interestorganizations in almost 120 countries. Consumerorganizations already have considerable experiencein assessing the performance of products and ser-vices. Their magazines, websites and other publi-cations have a large number of subscribers.(Consumer Reports in the US has five million sub-scribers and its TV reports reach millions more. Con-sumentengidsin The Netherlands goes to one in eightDutch households.)
In addition to formal organizations, extensive net-works of members of consumer, business and
government organizations can be effective in encour-aging green purchasing.
Green Purchasing Network of Japan11
Established in February 1996, the Green PurchasingNetwork (GPN) promotes green purchasing amongconsumers, businesses and governmental organiza-tions in Japan.
PlayersIt has about 2150 member organizations, includingNEC, Matsushita (Panasonic), Sony, Fuji Xerox, Toy-ota, Honda, Nippon Steel, Canon, JVC, Nissan, Ricoh,
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Mitsubishi corporation, NKK, WWF-Japan and theJapanese Consumers Cooperative Union. (In totalthere are 1610 companies, 310 governmental entitiesand 236 NGOs/cooperatives.)
Activities
The GPN has set out three green purchasing prin-ciples:
1. Note the environmental impact of a product at allstages of its life cycle, considering such things asemission of harmful chemicals, reusability and/orrecyclability, waste disposal and sustainability ofresources.
2. Consider the environmental performance of cor-porations and distributors.
3. Gather environmental information before purchas-ing a product.
The GPN has drawn up specific purchasing guide-lines for each type of product, based on the basicprinciples. To date it has completed the guidelinesfor:
Copying and printing paperCopiers, printers, fax machinesPersonal computersStationery and office suppliesAir conditionersLighting apparatus and lamps
Motor carsRefrigeratorsWashing machinesOffice furniture
The guidelines for copying machines, for example,address energy consumption, two-sided copy func-tions, recyclable designs, ozone emission, collectionand recycling of used products and cartridges, andthe use of reusable parts and recycled materials. TheGPN is currently developing guidelines for TV sets,uniforms and work wear; guidelines for hotels and
printing services are planned for the future.
The GPN also publishesEnvironmental Data Bookscontaining quantitative/qualitative environmentalinformation on each product in accordance with thepurchasing guidelines to help purchasers compareand select products.
Promotion of Green Purchasing
Since green purchasing power needs to be bigenough to change industry through the market, pro-moting the implementation of green purchasing iscrucial to GPN activities. Strategies include:
Holding nationwide and regional seminars andexhibitions throughout the country.
European Management JournalVol. 20, No. 2, pp. 109127, April 2002120
Presenting success stories of green purchasing. Awarding commendations to excellent members
practicing green purchasing. Conducting a survey on the current status of green
purchasing and on consumers awareness.
Publishing newsletters. Carrying out public relations activities focused onthe mass media, etc.
Success
GPN guidelines and Data Bookshave influenced theindustries. This is not only because many purchasersuse the guidelines and data books to help them maketheir decision, but also because it is the first time thata companys products have been compared withcompetitors products from an environmental point
of view.
Findings and Conclusions
The Presented Approaches
As illustrated in a range of projects above, manywell-recognized NGOs are becoming increasinglykeen on engaging businesses and pushing them andhouseholds to change current consumption patternsand move towards greater sustainability. Some of theinteresting approaches of NGOs today are:
Using strategic means to point out the problemsA growing number of NGOs are encouraginghouseholds to exercise their power as share-holders. Such campaigns can be a powerful toolin changing business policies if shareholderpower is substantial and raises public awareness.However, consumption patterns are likely toremain unaffected unless negotiations result inproduct/service stewardship that may drive newmarket demand.
Assessing environmental impacts of productsThis is the most passive form of influence, sinceproducts are already created, out in the marketand ready to be consumed. However, productassessment is still able to exert indirect pressureon the companies that make the products. NGOs,such as consumer organizations that already testproducts will be able to rank productsand evenservicesbased on their environmental perform-ance and impacts. Consumers will then be ableto choose which products or brands they wouldlike to purchase.
Greening the supply of products and servicesSome NGOs are involved in designing anddeveloping innovative products that will eitherchange the way people consume or minimize theenvironmental impacts of consumption. The con-sumer remains passive and is simply offered an
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alternative of more sustainable consumption.Choice is seen as empowerment.
Focusing on market forces: creating a greendemand that will drive changes in supply
Providing information through labels empowers
consumers to make an informed choice. Insteadof directly targeting consumers, targeting theretail sector seems to be a rising priority in cam-paigning strategy.
Forming extensive networks of different stake-holders
Encouraging stakeholders to act together is astrategy that generates more clout to steer themarket in a certain direction. NGOs often enterinto coalitions with other NGOs, businesses andpublic entities to highlight problems and jointlylook for solutions that will work for at least themajority.
Factors for Success
The success of these approaches in changing con-sumption behavior depends on two important fac-tors:
1. How much consumers feelempoweredto make adifference through their purchasing decision.
2. How the act of purchasing or not purchasing willaffect (i.e. improve) consumers quality of life.
People believe that they need to consume in order toachieve a certain quality of life. If theyre offered thechance to consume less or consume with less impactbut still retain the sameor even an improvedquality of life, provided the price is right, they willtake up the offer. The true motivation behind stra-tegic and proactive partnerships betweenbusiness/industry and NGOs is to look for ways tooffer households the opportunity to consume differ-ently(not necessarily less, but with less environmen-tal impact) through social innovations and bettertechnologies. Furthermore, this is a cyclical process.Businesses can create demand through product stew-
ardship and consumers in turn drive demand, tech-nological innovation and business development.
Success of the partnership and project activities willfurther depend on other factors listed below:
For Partnerships Credibility of actors Willingness and commitment Networking potential Focus on retail.
For Project Activities Level of transparency Systems approach Interactive tools. Project integration at all levels.
European Management JournalVol. 20, No. 2, pp. 109127, April 2002 121
Finally, there must be some criteria, metrics or indi-cators to evaluate the success of these partnershipsand projects. Here we propose the following:
The level of direct consumer/household contact
and involvement. Systems change that will effect changes in otherpotential players.
Up-front thinking: considerations at the earlystage of the development process.
Evidence of changing consumption patterns. Broad stakeholder involvement (networking). Decreased environmental burden (measured by
indicators) (Vergragt, 1998). Economically credible (drives competition and
increases employment) (Vergragt, 1998). Consumer acceptance (having focus groups)
(Vergragt, 1998).
Table 1 below illustrates how these criteria could beused to evaluate the approaches that are currentlyemployed by NGOs in working withbusiness/industry to promote sustainable consump-tion. It is a crude analysis and needs further refine-ment and to identify appropriate (quantifiable) indi-cators. Nonetheless, it gives a sense of whichapproaches seem more likely to make a difference forhouseholds and businesses in terms of changing theircurrent consumption behavior and lessening theimpact of consumption. The simple analysis showsthat the various approaches suggested for creating
green demand seem the most effective and credible.
Future NeedsNGOs are moving away from preaching asceticismand/or abstinence towards trendsetting and/or cre-ating new fashions in consumption; they are reachingout to the public with a different focus, which mayseem more acceptable (easily marketed) to con-sumers. This point needs to be stressed more to bothhouseholds and businesses.
Sustainable consumption is still currently targeted inadisjointedway. NGOs should make and strengthen
the link between raising awareness among con-sumers and partnership with businesses. There mustbe more focus on consumption issues from NGOs(such as WWF in targeting consumption as a solutionto all its Global Priorities), as well as from businesses,which can contribute to the solution through productstewardship and service orientation. Consumptionmay be minimized if we gradually shift from a pro-duct-oriented society to one that is more service-ori-ented. Services currently targeted are in the areas offinance and leisure/travel. Companies, together withNGOs, should explore options for developing moreservices, such as leasing, as in the example of carpetleasing,12 sharing and product take-back.
Because of the volume of information, it needs tobe standardized and consolidated. For example, arising issue with information disclosure and product
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Table 1 Evaluation of Some Common NGO Approaches Using the Proposed Criteriaa,b
AssessingCreating green
Greening the supply environmentalConfrontation using demand (labeling,
end (SC Johnson & impacts of productsshareholder power GPN, BedZED,
AEI) (consumer
SusHouse) organizations)
The level of direct consumer/1 1 1 0
household involvement
Systems change that will
effect changes in players0 1 0 1
other than the parties
involved
Up-front thinking:
considerations at the early0 1 1 0
stage of the development
process
Evidence of changing0 1 1 1
consumption patterns
Broad stakeholder0 1 0 0
involvement (networking)
Decreased environmental
burden (measured by 0 1 1 0
indicators)
Economically credible (drives
competition and increases 0 1 1 1
employment)
Consumer acceptance1 1 1 1
(having focus groups)
a0 indicates very little or no impact or influence.b1 indicates some or potential impact or influence.
labeling schemes is that consumers today face anarray of information from many different sources,especially with the increasing number of environ-mental organizations that may champion different
labeling schemes. Much of the information could beobscure, inaccessible, partisan or contested. Thismakes standardization all the more important and iswhy bigger organizations can achieve more credi-bility in the eyes of all stakeholders if they take onthe role of evaluating the different labeling schemes.
There should be moredirect outreach to householdsand businesses, especially the retail sector, which is
European Management Journal Vol. 20, No. 2, pp. 109127, April 2002122
seen more or less as the gatekeeper to householdconsumers. There needs to be feedback from both togauge how successful the disseminated informationis in changing consumption behavior and, at the
same time, consumer needs could be addressed.Stakeholder workshops are definitely a startingpoint.
Acknowledgements
The article was initiated by the European Round Table forRegulatory Reform, a group of Research Institutes and Euro-pean companies moderated by Professor Ulrich Steger.
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Appendix ASC Johnson and AEI in New ProductDevelopment
Table 2 Mapping Environmental Strategies to Product Attributesa
Objective Product attribute
Conserve materials Reduction or elimination of volatile organic compounds (VOCs)
Reduce chemicals Physical products: vacuum cleaner bags and bedding encasements
Extend product life Durability of physical products, concentration of chemical formulations
Focus on function Reducing allergens through physical barriers as well as chemical
aAlston and Roberts (1999).
Table 3 Environmental Metricsa
Environmental health Dispersivity
Volatile organic chemicalMissing data
content
Bad actor chemicals Resource utilization
Packaging energy utilization Virgin material content
Nonrecyclable materialsPallet under-utilization
content
aIbid.
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Appendix BExample from WWF-Switzerlands Foodfor a Living Planet Campaign13
Climate Change
In industrialized countries such as Switzerlandnutrition is responsible for 20% of total greenhousegas emissions. Air transportation, greenhouse pro-duction and meat consumption constitute the great-est threat to the climate (Jungbluth, 2000). Accordingto estimates, 85% of the climate relevance of thewhole nutrition sector goes back to animal pro-ducts.14 In this context the following development isespecially worrying:
From 1950 to 1999 worldwide meat consumption
rose from 44 million tons to 217 million tons. Inthe same period per capita meat consumption rosefrom 16 kg to 36 kg (Brown, 2000).
From 1950 to 1991 world trade grew 11-fold andis up to one-fifth of world output at the moment(French, 1995).
From 1950 to 1998 air freight soared from 730million ton-kilometres to 99 billion ton-kilometrescarried (French, 2000).
European Management JournalVol. 20, No. 2, pp. 109127, April 2002124
Data from Coop and Migros, the two leading super-market chains in Switzerland which together have45% market share of all food commerce in the coun-try, underline this development. Some products suchas lamb from New Zealand, beef from the US and
overseas vegetables (asparagus, green beans, etc.) aregenerally transported by airplane. Furthermore 65%of the vegetables sold are grown in greenhouses.15
Goals (20012005)Switzerland:
To reduce the consumption of food transported byairplane from 0.6% to 0.5%.
To reduce the consumption of greenhouse-grownvegetables from 65% to 55%.
To reduce meat consumption from 53 kg per
person/year to 48 kg per person/year.
EU:
To observe the same targets concerning air trans-port and greenhouse production as in Switzerland.
To reduce meat consumption from 63 kg perperson/year (WWF-Switzerland, 2001).
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Appendix C
Table 4 Design Orienting Scenarios Developed from Ideas in the Stakeholder Workshopsa,b
Design Orienting Scenarios UK The Netherlands
Local & Green X X
Food is supplied from local, organic sources. People eat in corner eating-houses or
purchase food in local shops to prepare and eat at home. People prefer unprocessed
foods and do not use ready-made meals or convenience products.
High-Tech Eating X X
The household contains various high-tech pieces of equipment for storing, cooking,
eating and waste disposal, e.g. smart cooker that either reads the smart packaging
on the food or scans the bar code from the bulk food packaging for cooking
information; an intelligent eco-efficient fridge. Water and energy are re-used as much
as possible in the house. All appliances are either rented because they are so
expensive or, if they are bought, the appliance s lifetime energy has to be bought at
the same time.
Neighborhood Food Center (Super-Rant) X
At meal times household members go to the Super-Rant, which combines elements ofthe modern supermarket and restaurant and where they can have an individual
catering subscription to the neighborhood cook and can eat together or take the meal
home. In the supermarket part of the Super-Rant people can do their food shopping.
Many people have dispensed with a full kitchen; only the fridge, microwave, kettle and
coffee machine are left.
Virtual Shopping X
Food is selected and purchased using interactive Net shopping in virtual reality from
home. The food is either delivered direct to the household or to the household s local
street distributor.
aYoung et al(2000)bQuist et al(1999)
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Notes
1. The co-authors are all members of the MIBE (Managingthe International Business Environment) project at IMD inLausanne, Switzerland, which is lead by ProfessorUlrich Steger.
2. http://www.foe.org under International Program3. http://www.coopamerica.org4. http://www.grrn.org/zerowaste/articles/campaign
zw.html5. http://www.thecoca-
colacompany.com/environment/index.html6. Interview with Jean-Paul Jeanrenaud of WWF-Inter-
national, February 20, 2001.7. The Center for a New American Dream in the US, a non-
profit organization, has already reached over 100 millionpeople by learning how to tell a story in a way that res-onates deeply with the public and the media. To date, it hasbeen featured in news sources such as Time, CNN,The NewYork Times,USA Today, CBS This Morning, National PublicRadio, PBS, Country Living, McCalls, Mothering, Parents,
Sierraand Family Circle. It believes that coverage by such awide variety of media is a vital part of the Centers effortto reach into the heart of mainstream America and shift cul-tural attitudes about consumption.
8. See Earth Communications at http://www.earthcomm.org for a public announcement clip on consumption.
9. Brochure and information available from WWF-International.
10. http://www.consumersinternational.org11. http://www.wnn.or.jp/wnn-eco/gpne/12. http://www.interfaceinc.com/us/company/sustainability
/frontpage.asp13. The Ecological Footprint of Food. WWF-Switzerland,
2000.14. Enquete Kommission zum Schutz der Erdatmosphare des
deutschen Bundestages 1995, S. 1323. According to thisreport, one-quarter of the greenhouse gas emissions couldbe avoided if meat consumption was reduced to a sus-tainable level.
15. 1999 data from Migros (Fausta Borsani)
European Management JournalVol. 20, No. 2, pp. 109127, April 2002126
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MOVING BUSINESS/INDUSTRY TOWARDS SUSTAINABLE CONSUMPTION
NANCY KONG,Yale Uni- OLIVER SALZMANN,versity, School of Forestry and IMD, chemin de Bellerive 23,Environmental Studies, 285 P.O. Box 915, CH-1001 Lau-Prospect Street, New Haven, sanne, Switzerland. E-mail:
Connecticut 0651, USA. E- [email protected]: [email protected]
Oliver Salzmann is ResearchNancy Kong is undertaking Associate in IMDs corporatepost-graduate work at Yale sustain- ability initiative andUniversity. Previously, she undertaking doctoral researchwas an Intern on IMDs cor- on sustainable consumptionporate sustainability initiative patterns.in 2001. Her current research
focuses on industrial ecology applied to environmentalpolicy-making.
ULRICH STEGER, IMD, AILEEN IONESCU-
chemin de Bellerive 23, P.O. SOMERS, IMD, chemin deBox 915, CH-1001 Lausanne, Bellerive 23, P.O. Box 915,Switzerland. E-mail: Steger- CH-1001 Lausanne, [email protected] land. E-mail: A.Ionescu-
[email protected] Steger is Alcan Pro-fessor of Environmental Man- Aileen Ionescu-Somers is Pro-agement at IMD and Direc- gram Manager of IMDs cor-tor of IMDs corporate porate sustainability initiat-sustainable development ive. Previously, she was Headinitiative as well as its Part- of International Projects atnership Programs with the World Wide Fund for
DaimlerChrysler. He has published extensively; his most Nature. She is also undertaking doctoral research into cor-recent book is Environmental Management Systems: porate social responsibility.
Progress or Hot Air? (Faz Verlag, 2000).