Assignment #1
ENVI 2023 – Environmental Regulations
Marta Grace
October 5, 2021
CAPE BRETON UNIVERSITY
1. Clothing manufacturers such as Joe Fresh, owned by Loblaws Inc., would be well-advised to
choose more sustainable means of manufacturing clothing. Joe Fresh is associated with nonsustainable and unethical manufacturing practices; in 2013, it was identified as one of the
brands made at the Bangladesh factory that collapsed and killed over 230 people (The
Toronto Star, 2013). Personally, I stopped buying from this brand after learning about its
unethical manufacturing practices. The five most important points related to the “show me
the money model” that can be used to convince Loblaws to undertake a full-scale
sustainability program for Joe Fresh are discussed below.
1. Reputation and Brand Strength - According to studies, social and environmental
performance accounts for one-fourth to one-third of a company's public reputation
(Blackburn, 2007). Following the Bangladesh building collapse, it was revealed that
workers were forced to continue working in poor and unsafe conditions, though the
police had ordered an evacuation (Taylor, 2013). The poor conditions that the
workers were forced to work under illustrate a lack of corporate social responsibility,
which can tarnish a company’s reputation. As the details of the Bangladesh building
collapse were made public, outrage ensued as consumers vowed to boycott Joe Fresh
clothing (Taylor, 2013). Although the company’s reputation has already been
damaged, Loblaws can prevent further damage by reforming its manufacturing
standards and making efforts to promote social sustainability and ethical
manufacturing.
2. Competitive and Desirable Products – Studies have shown that consumers are not
only interested but willing to pay more for “green” or sustainable products
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(Blackburn, 2007). Given these factors, Loblaws could financially justify switching to
safe and ethical manufacturing practices. According to Bob Kirke, the Executive
Director of the Canadian Apparel Federation, “A safe and an unsafe factory in
Bangladesh is not a matter of a huge amount of extra costs. It’s the desire to do it.”
(The Toronto Star, 2013).
3. Improved Productivity through Sustainable Practices – Sustainable practices are
not only better for Joe Fresh’s reputation, but also their productivity. As illustrated by
the Bangladesh building collapse, non-sustainable practices can end in tragic and
needless interruptions and economic losses (Blackburn, 2007).
4. Operational Burden and Interference / Legal Liability – As I suggested in the first
point, gaining back the public’s trust is an important step for Joe Fresh. Additionally,
undertaking sustainable practices can lower a company’s legal burden (Blackburn,
2007). In 2015, a class-action lawsuit was filed against Loblaws in response to the
Bangladesh factory collapse (Shaw, 2015).
5. Supply Chain Costs – Back in the 1960s, about 95% of the clothing in the United
States was made locally; recent data indicates that this number has dropped to about
2% (Vatz, 2013). By choosing to manufacture its products overseas, Joe Fresh must
contend with language barriers, time zone differences, and possible delays with
overseas shipments. If they chose the more sustainable practice of manufacturing
locally, they could save on the transportation costs (and the associated emissions) and
help support the local economy.
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2. Tesla, Inc. is a pioneer in the electric car industry and renewable energy systems. Many
factors, including the ones listed below, influenced me to purchase a Tesla over a year ago.
Five sustainability trends that are most relevant to Tesla include the following:
1. Fossil Fuel Depletion –As the price of gasoline continues to rise (Blackmon, 2021),
so will the demand for electric vehicles (International Energy Agency, 2020). Tesla
has benefited and will likely continue to benefit from this trend.
2. Overconsumption of Resources – Water shortage affects about 40% of the world's
population, and drought, according to UN and World Bank projections, might force
up to 700 million people to flee their homes by 2030 (Milne, 2021). One of the major
sources of water withdrawal in the United States is power generation (Tesla, 2019).
Companies like Tesla, which produce and utilize clean energy, can help reduce this
consumption. Tesla Energy has installed over 3.5 Gigawatts of solar installations to
generate emissions-free electricity (Tesla, 2019).
3. Climate change – As the realities of climate change become more apparent
(hurricanes, fires, floods), consumers may be more inclined to make eco-friendly
decisions regarding their transportation habits (Pruitt-Young, 2021).
4. Spread of Hazardous Pollutants – The BP oil spill devastated the natural resources
in the Gulf of Mexico, causing an estimated $17.2 billion in damages (Virginia Tech,
2017). Industrial disasters such as these illustrate the importance of renewable energy
and lessening worldwide dependence on fossil fuels. Following the BP disaster,
increased support towards renewable energy was observed among Americans (Choi,
2010).
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5. Traditional Air Pollutants – Pollutants, especially those associated with auto
emissions, have significant negative impacts on human health and the natural
environment. The Canadian Government has several programs in place to help
Canadians lower their contributions to air pollution. One such program is the ZeroEmission Vehicle Incentive, which provides up to $5,000 towards the purchase or
lease of a Zero-Emission Vehicle (Government of Canada, 2021).
3. Costco is a prominent wholesale warehouse that sells household supplies, food, electronics
and more, mostly in bulk. In terms of sustainability initiatives, there are several that I already
associate with Costco from seeing the initiatives first-hand or by hearing from family
members who shop there.
1. I expect (or have heard) that Costco has already undertaken the following
sustainability initiatives:
1) Reducing Food Waste – Costco has taken steps to reduce food waste by
using unsold food items to create new items. For example, Costco frequently
uses unsold rotisserie chickens to create deli entrées (Costco, 2020b).
2) Food Donations – Through partnerships with food banks, Costco is helping to
reduce food waste and helping to support local families through food
donations (Costco, 2020b).
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3) Tire Recycling – Costco recycles over 80% of its tires for other uses such as
road surface and sidewalk additives, landfill covers, and decorative mulch
(Costco, 2020b).
4) Plant-based Food – By providing plant-based food options, Costco is helping
to support vegetarian and vegan-based diets. As a vegetarian, I am excited to
see many varieties of meatless burgers and snacks available.
5) Utilizing Solar Power – Costco is working towards increasing the number of
locations that are powered by solar photovoltaic systems; at the end of 2020,
Costco had 116 warehouses worldwide using solar power (Costco, 2020a).
2. The following sustainable initiatives may not be associated with wholesale and big
box stores, but may be worthwhile for Costco to undertake:
1) Reduce Bulk Packaging – Costco could perhaps reduce its use of plastic by
utilizing a more sustainable packaging option for its plastic-wrapped bulk
items. They could use recyclable paper packaging where feasible, including
paper-based tape and cardboard packaging.
2) Increase Sustainable Product Offerings– Costco could increase their current
offering of products that help reduce single-use plastic waste, including
reusable food bags, reusable straws, and cleaning products made with
biodegradable packaging.
3) Increase Corporate Social Responsibility for its Beef - Costco sources its
beef from a Concentrated Animal Feeding Operation (CAFO) that is in a
heavily polluted area of San Joaquin Valley, California (Chamanara et al.,
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2021). The CAFO burdens the already polluted air, which negatively impacts
the local community. Costco could move towards a supply of beef that does
not utilize CAFOs, such as free-range cattle, to support more sustainable beef
production.
4) Reduce or eliminate the sale of overfished species – In terms of seafood
sustainability, Costco has some room for improvement. Costco sells several
overfished species, including nine that are on the International Union for
Conservation of Nature Red List of Threatened Species (Greenpeace USA,
2015).
5) Discourage “fast fashion” by offering sustainable clothing options – Fast
fashion is a term used to describe the rapid production of clothing articles in
line with current trends, often in a non-sustainable manner, that are cheaply
made (Schlossberg, 2019). Costco can help discourage this trend by offering
clothing from brands that are made from high-quality material that can be
worn for many years, from reputable suppliers that use natural or recycled raw
materials.
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References
Blackburn, William R., (2007). The Sustainability Handbook: The Complete Management Guide
to Achieving Social, Economic and Environmental Responsibility. Earthscan, London
Blackmon, D. (2021, July 29). Gasoline Prices Remain High And Could Go Higher, But There's
A Catch. Retrieved October 3, 2021, from
https://www.forbes.com/sites/davidblackmon/2021/07/29/gasoline-prices-remain-highand-could-go-higher-but-theres-a-catch/?sh=66c54f1b6246
Chamanara, S., Goldstein, B., & Newell, J. P. (2021). Where’s the beef? Costco’s meat supply
chain and environmental justice in California. Journal of Cleaner Production, 278,
123744.
Choi, C. (2010, June 10). BP oil spill: Renewable energy looking pretty good now. Retrieved
October 3, 2021, from https://www.csmonitor.com/Science/2010/0610/BP-oil-spillRenewable-energy-looking-pretty-good-now
Costco. (2020a, December). Energy and Refrigeration. Retrieved October 2, 2021 from
https://www.costco.com/sustainability-energy-refrigeration.html#solar-power
Costco. (2020b, December). Waste Minimization. Retrieved October 2, 2021 from
https://www.costco.com/sustainability-waste-minimization.html
Government of Canada. (2021, June 08). Government of Canada Actions to Reduce Air
Pollution. Retrieved October 3, 2021, from https://www.canada.ca/en/environmentclimate-change/campaigns/canadian-environment-week/clean-air-day/action-airpollution.html
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Greenpeace USA. (2015). Seafood Sustainability at Costco. Retrieved October 4, 2021, from
http://seafood.greenpeaceusa.org/stores/costco/
International Energy Agency. (2020). Trends and developments in electric vehicle markets –
Global EV Outlook 2021 – Analysis. Retrieved October 3, 2021, from
https://www.iea.org/reports/global-ev-outlook-2021/trends-and-developments-in-electricvehicle-markets
Milne, S. (2021, August 16). How water shortages are brewing wars. Retrieved October 3, 2021,
from https://www.bbc.com/future/article/20210816-how-water-shortages-are-brewingwars
Pruitt-Young, S. (2021, September 11). Climate Change Is Making Natural Disasters Worse Along With Our Mental Health. Retrieved October 3, 2021, from
https://www.npr.org/2021/09/11/1035241392/climate-change-disasters-mental-healthanxiety-eco-grief
Taylor, L. C. (2013, April 25). Joe Fresh customers vow boycott after Bangladesh factory
collapse. Retrieved October 3, 2021, from
https://www.thestar.com/news/world/2013/04/25/joe_fresh_customers_vow_boycott_afte
r_bangladesh_factory_collapse.html?li_source=LI&li_medium=star_web_ymbii
Tesla (2019). 2018 Impact Report [PDF]. Retrieved October 3, 2021 from
https://www.tesla.com/ns_videos/2018-tesla-impact-report.pdf
The Toronto Star. (2013, April 25). Bangladesh building collapse kills more than 230; Joe Fresh
clothing, other brands made at site. Retrieved October 2, 2021, from
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https://www.thestar.com/news/world/2013/04/25/bangladesh_building_collapse_toll_nea
rs_200_joe_fresh_clothing_other_brands_made_at_site.html?rf
Schlossberg, T. (2019, September 03). How Fast Fashion Is Destroying the Planet. Retrieved
October 2, 2021, from https://www.nytimes.com/2019/09/03/books/review/how-fastfashion-is-destroying-the-planet.html
Shaw, H. (2015, April 30). Class action suit seeks $2 billion from Loblaw, Joe Fresh over 2013
Bangladesh garment factory collapse. Retrieved October 3, 2021, from
https://financialpost.com/news/retail-marketing/class-action-suit-seeks-2-billion-fromloblaw-joe-fresh-over-2013-bangladesh-garment-factory-collapse
Vatz, S. (2013, May 24). Why America Stopped Making Its Own Clothes - The Lowdown.
Retrieved October 3, 2021, from https://www.kqed.org/lowdown/7939/madeinamerica
Virginia Tech. (2017, April 20). BP oil spill did $17.2 billion in damage to natural resources,
scientists find: The six-year study is the first-ever financial evaluation of spill's impact.
ScienceDaily. Retrieved October 3, 2021 from
www.sciencedaily.com/releases/2017/04/170420141825.htm
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