Orange’s move to introduce eco-labels for its handsets is another signpost that major consumer-facing brands are responding to consumer and political pressure to address the environmental impacts associated with their goods and services. The main risk of this strategy is that consumers will not ‘buy it’. The basic premise of Orange’s labelling scheme is that consumers will adjust their purchasing decisions based on the environmental credentials of their handsets, thereby driving market transformation in the mobile phone industry more broadly. However, the majority of consumers may simply expect that all handsets being supplied by companies of the size and profile of Orange to meet certain minimum environmental criteria, and therefore not feel they need to actively select handsets based on environmental performance. Furthermore, consumers may still not feel they have sufficient knowledge or information to make trade-offs between price, functionality and environmental credentials. In the case of a trade-off, how much environmental damage will be caused by a three-rated handset versus a five-rated one, for instance, and are the environmental benefits worth the difference in features or price? The eco-rating index itself is not a bad idea and by having their handsets evaluated against environmental criteria, manufacturers will doubtless be motivated to improve the ratings of their product lines across the board. Additionally, Orange will have the ready means to monitor improvements in the handsets they offer over time, which can be a useful management tool to drive sustainability within the business’ supply chain. However, whether consumer spending decisions will be affected by this additional piece of product information remains to be seen and may be difficult to prove. In the end, this may turn out to be a positive step that drives eco-efficiency throughout the sector, but consumer purchasing decisions are unlikely to be altered very much.
Yohan is a senior consultant at Corporate Citizenship.
Coca-Cola commits to climate-friendly refrigeration
The Coca-Cola Company announced on December 3 that 100% of its new vending machines and coolers will be hydrofluorocarbon-free (HFC-free) by 2015. Coca-Cola aims to use its scale to aggregate demand and encourage supply as a means of accelerating the transition to HFC-free refrigeration equipment. The announcement was a direct result of work with Greenpeace that began in 2000. Kumi Naidoo, Executive Director at Greenpeace International said that Coca-Cola’s action left no excuse for other companies not to follow. The Coca-Cola Company has invested more than $50 million in research and development to advance the use of climate-friendly cooling technologies. In 2010, Coca-Cola and its bottling partners will purchase a minimum of 150,000 units of HFC-free equipment, effectively doubling the current rate of purchase.
WWF and RSA Insurance Group (RSA) recently announced a three year international partnership to focus on researching insurance risks of environmental change. RSA will also support major conservation projects around the world, while working with the WWF to become a more sustainable business. For example WWF and RSA will be working together in China to research renewable energy and emphasise the role insurance can play in supporting the transition to a low carbon economy. In the long-term, the partnership will be looking at developing and promoting products that provide incentives to customers to reduce their environmental footprint – for example, making homes more energy and water efficient.
Thames Water saved £15 million in electricity bills last year by generating its own renewable power from the faeces of its 13.6 million customers. The company announced on December 7 that in 2008/09, it generated 14% of its power needs from either burning sewage sludge or methane derived from it. Dr Keith Colquhoun, Thames Water’s Climate Change Strategy Manager, said ‘our goal is to cut greenhouse emissions by 20% on 1990 levels by 2020 – that’s about 200,000 tonnes less CO2. By using poo power and other renewable energy sources, we’re making significant progress towards this target after cutting emissions by 5% in the past two years.’
Sainsbury’s to launch the ‘world’s largest fleet of electric vans’
Sainsbury’s announced on December 3 that it is to purchase 50 electric vans for its online grocery delivery service. When added to the existing fleet of 20, the supermarket will have the largest fleet of electric vans in the world. As a result, according to Sainsbury’s, 60% of its central London customers could have their groceries delivered by the zero emissions vehicles when the vans become operational from March 2010.Each vehicle is restricted to 40mph and can comfortably achieve the required range of 60 miles per day.
To ensure greater efficiency, the vans use regenerative braking, meaning drivers can recapture the energy used whilst the vehicle is slowing down to help recharge the batteries.
The change to a low carbon economy must ensure UK workers and consumers can take advantage of the opportunities it will bring, a new Government forum said at its first meeting on December 10. The Forum for a Just Transition includes representatives from Government, unions, industry and consumers and aims to ensure the transition of the UK’s industrial base to low carbon creates benefits and opportunities for UK workers, businesses and consumers. The Forum will consider key sectors of the economy and key technologies that will ensure the UK can lead in the low carbon industries of the future, alongside helping existing industries and workers develop the knowledge and skills and business practices to succeed in the low carbon future.
Unilever announced on December 11 that it has decided to suspend all future purchases of palm oil from the Indonesian company PT SMART, part of the Sinar Mas group, until such time as the organization can provide verifiable proof that none of their plantations are contributing to the destruction of high conservation value forests and expanding onto peat lands. A Greenpeace report, published on December 11, made serious allegations against Sinar Mas’s environmental practices. Marc Engel, Chief Procurement Officer, said: “The Greenpeace claims are of a nature that we can’t ignore. Unilever is committed to sustainable sourcing. Therefore, we have notified PT SMART that we have no choice but to suspend our future purchasing of palm oil.”
EPA commends corporate leaders for major greenhouse gas reductions
The US Environment Protection Agency is recognizing eight companies for achieving significant goals to reduce greenhouse gas (GHG) emissions through the agency’s Climate Leaders program. Anheuser-Busch, Bank of America, Coors Brewing, Eastman Kodak, First Environment, Gap, Roche Group and Shaklee have achieved long-term GHG reduction goals, and three of these companies have also made new commitments to further reduce their emissions. Twenty-seven companies are also being commended for announcing aggressive GHG reduction goals.
Orange to display the eco-rating of handsets in France and Spain
Orange announced on December 9 that, with the support of the WWF, it will be the first operator to display the eco-rating of handsets in Europe. After eco-rating was launched in France in 2008, it is now deployed in Spain and will roll out in the main European countries in 2010, starting with Switzerland in the first half of the year. The eco-rating gives an overall grade to the handset showing its environmental performance in terms of a number of key indicators, including CO2 limitation that measures the amount of greenhouse gas emitted during the product’s principal life stages: fabrication, transportation and use and energy efficiency that evaluates the energy consumed in using the product and what can be done to reduce it.
British companies “can save £3.3bn on road fuel costs”
According to findings published on December 21 by Lysanda, a vehicle technology firm, UK companies can save up to £3.34 billion a year by reducing the fuel consumption of their vans and lorries. Better monitoring of the performance of each vehicle could reduce fuel consumption by up to 20%, while also cutting CO2 emissions. The Department of Transport’s Van Best Practice programme, launched in November 2009, estimated an overall improvement in fuel efficiency of 5% on the UK’s commercial road fleet, saving around £250 million a year and reducing carbon emissions by three quarters of a million tonnes. Lysanda’s own analysis of the market, however, estimates companies can realistically target much larger savings.
Marks & Spencer has signed a long-term agreement, effective from April 2010 to March 2014, with SmartestEnergy to purchase renewable electricity equivalent to 100% of the amount used to power all of its Scottish stores and offices. Under the contract, all the electricity will be sourced from independent renewable generation sites in Scotland, thereby supporting local small scale independent generators and giving them a route to market for their electricity. SmartestEnergy is the only supplier in the UK that allows business customers to specify the exact generation project they want their renewable electricity to be sourced from.
The Marine Conservation Society (MCS) recently announced the results of its Sustainable Seafood Supermarket Survey, scoring eight major supermarkets for their performance in selling sustainably sourced seafood. The Co-operative leads the way, eliminating all fish from MCS’ list of Fish to Avoid from its own-brand products, and having the largest percentage of sales from the Fish To Eat list in MCS’ Good Fish Guide. Marks & Spencer, Morrisons, Sainsbury’s and Waitrose also performed strongly. However, seven out of fifteen major supermarkets did not respond; namely Aldi, Booths, Budgens, Farmfoods, Lidl, Netto and Spar. Asda fared the worst out of the supermarkets which took part in the survey.
M&S announced on January 4 that it was the first home insurance provider in the UK to offer home insurance customers two policies to help them reduce their impact on the environment if they make a claim. When M&S policyholders make a claim for a fridge freezer, refrigerator, washing machine, tumble dryer or dishwasher, they will be offered a replacement which is A rated for energy-efficiency. If a property is damaged severely and warrants a total rebuild, properties will be rebuilt in line with the Code for Sustainable Homes (CSH) 4. This involves the use of sustainable materials where possible, significantly improving the energy efficiency of the property. Rebuilt properties will emit at least 44% less CO2 than building regulations would stipulate.
Contact: Marks & Spencer
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Greenpeace’s Electronics Guide cuts through the greenwash
Greenpeace’s newest edition of the Guide to Greener Electronics, released on January 7, has found that Apple, Sony Ericsson, and Nokia lead the way for introducing products free of the worst hazardous substances. Samsung, Dell, Lenovo, and LGE pick up penalty points in the Guide for failing to follow through on a promised phase-out of toxic chemicals in their products. ‘It’s time for a little less conversation and a lot more action on removing toxic chemicals,’ said Casey Harrell, Greenpeace International Electronics campaigner. ‘Apple is leading and HP is playing catch up, but the lack of action from other companies is ensuring that customers and the environment are still losing out.’
Africa’s first carbon credit scheme aims protects the continent’s rain forests
Nedbank, the only African bank to be included in the Dow Jones Sustainability Index, signed a multi-million dollar carbon offset agreement on December 14 with Wildlife Works Inc, the owners of a wildlife conservation and community project in Kenya. Kevin Whitfield, head of Carbon at Nedbank Capital said ‘The carbon market provides a mechanism for linking Africa into the global green economy, while simultaneously conserving its rich natural heritage and safeguarding the livelihoods of its people’. In terms of the agreement, Nedbank will acquire carbon credits from Wildlife Works’ Kasigau Corridor Project for on-sale to the global carbon market. The Bank claims that more than 2.5 million tonnes of carbon will be earned through avoided deforestation to 2026.
From December 7, internet users have been able to help protect the rainforest while they search, according to the company behind a new search engine dubbed as the world’s greenest. The Ecosia search engine is based on technology from Yahoo and Bing, which will provide the search results and sponsored links for the site. But unlike conventional search engines, the company has pledged to donate at least 80% of the income it generates from sponsored links to WWF rainforest protection projects in Brazil’s Amazonas region. ‘Every year billions of dollars are being earned in the internet only from advertising revenue’, says Christian Kroll, founder of Ecosia. ‘There is a more eco-friendly way of using these huge profits: the money should better be used to fight global warming.’
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