Green retail and environment
December 26th, 2009
The retail and consumer goods industry is currently focusing on green and sustainable practices due to the fierce competition in the industry, intensive resource use and the penurious state of labor in some regions. In this article, we discuss how the retail sector can imbibe sustainable and green business model and also take a look at some of the efforts already taken in this direction.
A recent survey suggested that about 70 percent of American consumer factor in the environment impact of any products or services before purchasing. Hence companies are trying their best to serve consumer concern by increased focus on improving energy efficiency, reducing waste, recycling waste and raising awareness about environmental concerns.
Retail industry has a direct contact with the end customers and hence has a vital role to play in the current push towards green and sustainable practices by collaborating with its consumers and suppliers. The climate change which has become the most pressing problem facing the mankind can be addressed by reducing green house gas emission and using energy efficiently. Logistics optimization through supply chain management can be an important tool. A culture should be developed in the retail industry that encourages employees to identify energy saving opportunities and rewards them for implementing them.
Products like nanomaterials and genetically modified products that pose greater danger should be examined properly in all aspects including packaging. Retailers also have an opportunity to request suppliers to reduce excessive packing thereby reducing wastage and material cost. Organic food should be encouraged by the retailers and sustainably harvested sea food from well managed fisheries must only be offered for consumption.
The retail sector also has to look at the practice of outsourcing from a new perspective as sourcing from foreign markets might appear to improve competitiveness yet it has a negative environmental impact.
The consumer must be educated about the urgent need to adopt green and sustainable practices. The policy of three R’s i.e. Reduce, Reuse and Recycle can help make the industry more environments friendly. Green products like recycled paper and energy saving devices must be promotes in retail stores. The problem of plastic and paper bags – both of which are detrimental to environment can be avoided by promoting bags made of natural fabrics. These bags can be used to promote the retail brand too by printing the logo of the retail company. Retail companies also can save on fuel costs using hybrid fuel efficient delivery vehicles and solar power panels for refrigeration.
In the fiercely competitive retail sector it is pleasant to see the market leader at the helm of the affairs to make the sector more green and sustainable. The retail giant Wal-Mart adopts a practice of encouraging suppliers of green products through its policy of “environmental scorecards”. The company also alongside other players like IKEA and Whole Foods has started efforts to eliminate plastic bags that are non biodegradable. The company is a pioneer in adopting solar energy to generate power for its stores.
Similarly Home Depot – the second largest general retailer in U.S. has stated on its website its commitment “to the environment and pledge to continue to be an industry leader in looking for products and services that are respectful of our world.” The company highlights its green products under it Eco Option program and these products are placed at preferred positions in stores. Its charitable arm, the Home Depot Foundation pledged in 2007 to invest $100 million for 100,000 green sustainable housing and planting 3 million trees. Further the company promotes energy efficient compact fluorescent lamps (popularly called as CFL lamps) and has even created the largest recycling program for recycling of the bulbs in the U.S.
Staples Inc. was the first nationwide retailer to offer a recycling program for electronic waste. The consumers can drop most electronic equipment at any of its stores for recycling by paying a small fee. The company has adopted environmental friendly paper and is developing green products for its brand.
Although the retail industry has taken the first step towards a sustainable business model but the industry needs to overcome huge challenges like e waste. Such an approach is crucial for the growth of the industry as the material resources of our planet are limited.
