Sustainability Consumption in Consumer Industries

Implications for Future Value Chains

Peter Capozucca, PrincipalDeloitte Consulting LLP

Thought leadership in sustainable consumption

World Economic Forum’s Sustainable Consumption Initiative

An extensive programme leading to two reports launched at the Annual Meetings in:

• 2009: Sustainability for Tomorrow’s Consumer: The Business Case for Sustainability

• 2010: Redesigning Business Value: A Roadmap for Sustainable Consumption

Why sustainable consumption still matters to business

• Shifting consumer agenda• Increasing demand for greater transparency• Concerns about environment as strong in

developing and developed world

• Sustainability in hard times• Sustainability still high on business agenda • Economic downturn has little impact on

global consumption • Demand for ‘buying green’ still high• Increased government focus on green

growth

This is not enough• Incremental not transformative changes • Collaboration across value changes is

deficient • Public policy framework not adequate

Driving Sustainable ConsumptionDevelop practical ideas and new forms of collaboration to drive transformative change to value chains

Roadmap to sustainable consumption

Ideas to make it happen

Closed Loop Value Chain

Materials Sourcing

Distribution logistics

Sales and retail

Manufacturing

Consumption and use

Disposal

Manufacturing Waste

Logistics waste

Packaging waste

Consumption / use waste

Product waste

Linear Value Chain

Lim

ited

recy

clin

g

Manufacturing

Material sourcing

Distribution logistics

Sales and retail

Consumption / use

Reverse logistics

Manufacturing process reuse

Manufacturing

Materials Sourcing

Distribution Logistics

Sales and Retail

Consumption and Use

Product Recycling and Materials Recovery

Logistics waste and auxiliary products

reuse

Product and by-product reuse

Waste from consumption

Implications for future value chains

What can businesses do now?