Sustainability Report Cards
What’s Hot & What’s Not?
Kieran Callahan
Business Development Manager UL i&i
AGENDA
1. Introduction – UL / UL Information & Insights
2. What’s Driving Compliance Requests
3. What’s Driving Sustainability Data Calls
4. Risks for Retailers & Brands
5. Sustainability Examples
6. QA
2
UL OVERVIEW
Mission
Working for a safer
world since 1894 is
at the core of
everything we do.
The definition of safety is changing. So is UL.
3
UL Vision
the ability to find, connect &
analyze information, supported
by expertise and science, to
enable innovative, compliant
and sustainable supply chains
regulatory
environmental
technology
other
expertise
sustainability
science
better
decisions
in less
time
performance
THE DATA FOUNDATION
(public, exclusive, secure)
THE i&i DIFFERENCE
(UL values)
THE VALUE TO CLIENTS
( + revenue // - costs)
4
What’s Driving Score Cards
5
Enormous Pressure in Industry
RETAILER
PRESSURES
BRAND LEVEL
PRESSURES
SUPPLY CHAIN
PRESSURES
Retailers are the
ultimate pinch point
for NGO
campaigns, but
they are also under
pressure to cut
cost and increase
sales.
Big Brands are
driving their own
sustainability
programs and
reacting to retail
sustainability
programs
Questionnaires
being driven from
the top down the
supply chain
making it difficult
and costly to
respond to data
requests.
… will this go away?
6
Pressure on Retail / Brands / Supply Chains
COMPLIANCE
SUSTAINABILITY
Retailers are the
ultimate pinch point
for NGO
campaigns, but
they are also under
pressure to cut
cost and increase
sales.
Brands are driving
their own
sustainability
programs and
reacting to retail
sustainability
programs
… will this go away?
7
Compliance
8
COMPLIANCE PRESSURE // CHALLENGE
 Tens of thousands of Products containing
chemicals
 Adhesives, Cleaners, Paints, Aerosols, OTC etc.
 Increasing and Changing chemical-based
regulations
 Federal Transportation Requirements (Ground, Air, Vessel)
 RCRA (Resource Conservation and Recovery Act)
 State Laws that go beyond RCRA (California, Texas, Rhode Island,
Vermont, Washington etc.)
 VOC Regs / State Restrictions / Fire Code
 Critical/Validated Data is Needed to support
Business Objectives
 Compliance Objectives
 Sustainability Goals
9
CALIFORNIA ENFORCEMENT
Regulators in
California
alone have
obtained over
$160 million in
settlements
from retailers
since 2007.
Jan 2015
Safeway
$9,870,000
Dec 2014
99 Cents Only Stores
$2,362,500
Sept 2014
TJ Maxx, Marshalls, Home-Goods
$2,777,500
Aug 2014
Raley’s
$1,599,000
June 2014
Albertsons
$3,287,000
April 2014
Lowes
$18,100,000
Sept 2013
Rite Aid
$12,324,000
Dec 2012
Walgreens
$16,575,000
April 2012
CVS
$13,750,000
Feb 2011
Target
$22,500,000
May 2010
Walmart
$27,600,000
May 2009
Kmart
$8,650,000
Oct 2007
Home Depot
$9,900,000
10
Waste Disposal Challenges?
YES!
California
Connecticut
Michigan
Washington
YES!
California
Connecticut
Maine
Michigan
Minnesota
New Hampshire
Oregon
Rhode Island
Vermont
Washington
Yes or No?
Yes
RCRA Federal Waste
Corrosive - Hazardous
waste in ALL 50 STATES
YES!
California
Washington
THE RETAILER DATA GAP
CHEMICAL COMPLIANCE & SUSTAINABILITY CHALLENGES REQUIRES
YOU TO GET ADDITIONAL DATA FROM YOUR SUPPLIER BASE…
 RETAILER - rely on supplier (M)SDSs for critical
regulatory compliance, waste, logistics, EHS, &
transportation information.
(M)SDSs – never meant to
support these business needs!
• Original purpose – OSHA compliance
• Supplier Mindset Minimal Disclosure / Missing Data
• Different interpretations/biases by manufacturers of
(M)SDS
• Complete Transportation data missing
The best
prepared
(M)SDSs
DO NOT
communicate
all data
required by
Retailers
• “Dispose in accordance with local regulations”
• Uniform Fire Code Missing (Disposal and Storage)
12
PROCESS
WERCSmart Platform
Product
Registrations
Ingredient
Data
WERCSmart™
Web Portal
24/7/365 Access
700,000
UPC
8000
THE WERCS
Suppliers
2
Business
Days
Storage, Shipping,
Hazard Waste, Restriction,
Reports, Custom Data,
Safety Data & Documents
13
Participating Retailers
Today
40+
A&P
Ahold USA
Albertsons
Amazon
Bed Bath and Beyond
Costco
CVS
Delhaize America
Dick’s Sporting Goods
Dollar General
Dollar Tree Stores
Family Dollar
Genuine Parts Co
The Home Depot
HD Supply
Hy-Vee
Kroger
Lowes
Meijer
McLane
WERCSmart Platform
New Egg
Office Depot
O'Reilly
Petco
Rite Aid
Radio Shack
Safeway
Sears
Save Mart Supermarkets
Smart & Final
Staples
Supervalu
Target Canada
Target
TopCo
Tractor Supply Company
United Stationers
Wal-Mart/Sam’s Club
Winco Foods
99 Cent Only
14
REGULATORY EXPOSURE AND CONCERNS
SAFETY
TRANSPORT
STORAGE
HAZ WASTE
LEGAL
CONSUMER
OSHA
DOT
NFPA
EPA
State/Local
Green Demand
AREAS OF IMPACT
• Stores
• Dist. Ctr
•
•
•
•
•
•
Stores
Dist. Ctr
Customers
Waste hauler
Reverse logistics
Supplier
• Dist. Ctr
• Stores
• Local Fire Marshall
•
•
•
•
Reverse logistics
Waste hauler
Stores
Dist. Ctr
•
•
•
•
Stores locations
Dist. Ctr
Waste hauler
Reverse logistics
• Stores
• Consumer
• Share holder
• Selling
Restrictions
• Green Washing
DATA CHALLENGES
• Electronic SDS
Access
• All Modes
• Uniform Fire Code
• RCRA Codes
• Placarding Data
• Slotting Data
• STATE Codes
• Chemical
Inventory
• Bucket Code
• Monitoring
Regulations
• Lack of Data
• Proof
15
Sustainability
16
Reasons for Rapid Expansion of Sustainability Programs
Globalization
of Supply
Chains &
Legislative
Failure
Advocacy
Campaigns
by NGO’s
(Newspaper
Consumer
Demand for
Transparency
(Safe Products)
Social Media
& Rapid
Spread of
Information
Test)
Sustainability Makes
Business Sense –
Save Money
Brand Building &
Increased Sales
Opportunities
17
The Demand Chain
Welcome to the
Demand Chain
Supply
chains need to share data and
collaborate to deliver products that not
only comply with regulations, but are
also healthier, more sustainable, and
more profitable.
Suppliers
OEMs & Brands
Retailers
Consumers
Sustainability Benefits
Reduce
Risks
Sustainability
Transparency
Improve
Vendor
Relations
Grow
Sales
Reduce
Costs
Increase
Support
Programs
Demand Chain that drives
market requirements for better
consumer products down the
supply chain, opening up new
business opportunities at every
level.
Risk
Reduce
Risks
Benefits
‣ Real-time Search and
Filtering of Product Data
‣ Product, Component,
Ingredient, and Material
tracking
‣ Respond Quickly to
Regulators, NGOs, and
Consumers
‣ Dashboards for Decisions
Vendor Collaboration & Innovation
Improve
Vendor
Relations
Benefits
‣ Educate Vendors
About
Data Needs
‣ Create Transparency
and Trust around
Confidential
Business Information
‣ Help Improve
Products in
Response to Retailer
Criteria
‣ Respond to Rapidly
Emerging Issues
Around the World
Cost Reduction
Reduce
Costs
Benefits
‣ Proactively Screen Product Data
‣ Avoid Fines
‣ Reduce Litigation Costs
‣ Reduce Labor Required for Data
Entry and Management
Meeting Business Objectives
Support
Sustainability
Programs
Benefits
‣ Implement Sustainable
Product Standards
‣ Comprehensive Product and
Company Screening
‣ Incorporate Custom Definitions
of “Healthier” and “Sustainable”
Products
Increase Sales - Sustainable Products
Grow
Sales
Benefits
‣
Put a Retailer on a Path to
Being a Leader in Sustainable
and Healthy Products
‣
Develop a Product Set and
Tools To Help Consumers Find
Healthy Products
‣
Integrate Regulatory and
Sustainability Processes into
Core Business Operations
‣
Gain Real Intelligence
from Data
Retailer
Support
Product
Design
Support
Consumer
Insights
Material
Supplier
Support
Decision Support for
Retailers,
Manufacturers,
Brands and
Consumers that
Opens Opportunities
across the full Value Chain.
Sustainability Examples
Examples of
Sustainability In
Action with
Brands you know.
Target
Target Sustainable Product
Standard
‣ Designed to Help Target
Buyers Screen Products for
Comprehensive
Sustainability Concerns
‣ Turning Sustainability
Policies
into Action
‣ Transparency, Ingredients,
Packaging, Water Impacts,
etc.
‣ Vendors Representing
7,500 Products in
Household Cleaners,
Personal Care, and Baby
Care
Walmart
Walmart Driving for
Cost Reduction
‣ Walmart has been a clear leader
in the development of the
Sustainability Consortium.
‣ Tracking Company Level
Sustainability Goals and
Objectives
‣ Moved to a High Priority List of
Chemicals and a Priority List of
Chemicals.
‣ Better Management of
Supply Chains
‣ Big Data, Collected a Ton of
data
‣ Primary Driver is Save Money –
Live Better
Walmart Scoring / High Priority Chemicals
Method
Method
‣ Manage Sustainability data
for the product catalog
‣ Tools for Product Designers
to Compare and Select
Materials
‣ Make Life-Cycle Thinking
Accessible
for Designers
Consumer Pressure –
Consumer Apps
‣ Publicly Available Ingredient
Data
(from GoodGuide)
‣ Permission-Based SupplierDisclosed Ingredient (from
PurView)
‣ View Against Available
Regulatory Lists or
Sustainability Profiles
‣ Consumer Insights
Questions
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