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Can brands avoid backlash as sustainability scrutiny piles up?

Big businesses are some of the world's largest producers of waste, and they're under mounting pressure to craft strategies to address the issue. Experts advise that actions speak louder than words.
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Brands face a tough question as consumer calls for sustainability pile up: How do large producers of waste craft an environmentally conscious strategy that's authentic and won't create backlash? Experts advise that actions speak louder than words, which might be a hard pill to swallow for engagement-minded marketers. Campaigns against product materials like single-use plastics have swelled in recent years alongside problems like the Great Pacific Garbage Patch, a mass of detritus floating between California and Hawaii that recent estimates peg at being twice the size of Texas. Many marketers today are centering their strategies on social causes that resonate with young consumers, and have gravitated toward sustainability. Others are under mounting public pressure to change, including McDonald's, which earlier this summer announced it would reduce the amount of plastic used in Happy Meal toys in response to a viral Change.org petition. "It's really feeding into everybody's [communications]," Oliver Yonchev, U.S. managing director at the agency Social Chain, told Marketing Dive. "I would say 10-15% of what we do has some environmental messaging attached to it." But the reality is that sustainable messaging comes with the risk of sparking accusations of "green-washing," the idea of broadcasting positive environmental values and goals without living them out. It's an insult that's been lobbed for decades, but one that's found fresh relevance as a sister term, "woke-washing," gains traction in the purposeful branding era. The key to navigating the sustainability minefield, according to experts, is a larger degree of self-awareness among brands, specifically knowing when to let sustainable decisions speak for themselves versus amplifying claims in marketing that may not always measure up. Sustainability also must ladder down into all areas of an organization, including on the operational and business-to-business end, which can be overlooked. "To really survive the change curve here, brands need to break their internal silos to redesign product alongside the other zero waste 5Rs — it's not a marketing [issue alone]," Kathryn Callow, a futurist and former Unilever global media manager, said in emailed comments to Marketing Dive, referencing the principles of refuse, reduce, reuse, recycle and rot. "The list of brands in sustainability is endless[,] the list of brands making genuine impact is short," Callow said.

No time to waste

Even organizations renowned for their purpose-driven marketing have been accused of worsening the sustainability crisis. Procter & Gamble, Unilever, Mondelēz, Coca-Cola and PepsiCo were cited among the top-10 corporate contributors to global plastic pollution in a study conducted by Greenpeace and the Break Free From Plastic Movement last year. "The list of brands in sustainability is endless[,] the list of brands making genuine impact is short."   Kathryn Callow Futurist But any business operating at a significant scale is susceptible to these problems. "The bigger you are, the more likely that you've not got the cleanest of records," Yonchev said. "That's just a universal truth." Greater attention is being paid to sustainability as vocal generations like Gen Z and millennials hold brands to higher standards. Nielsen recently found that 81% of surveyed global consumers across gender and generational lines felt strongly that businesses should help better the environment. "If a company's business model is inherently environmentally destructive, and its only effort to be sustainable stops at occasional philanthropy or window dressing, then today's consumers will see right through it," Christine Arena, founder and CEO of Generous, a marketing and production company focused on cause-led campaigns, said in emailed comments. Ways to keep brands accountable are also proliferating in the social media age. "Technology plays a big piece," Anthony Rossi, VP global business development at Loop, a startup arm of the private recycling firm TerraCylce, told Marketing Dive. "People are watching, and there are ways to track the companies to make sure they're on track with what they've promised." Lawmakers, too, are taking notice: City-level bans on single-use plastic itemslike straws and bags have picked up momentum in states like Florida, California and Washington. "Businesses inherently want to serve their customers and be relevant," Yonchev said. "But equally, I think they're cognizant that legislation is changing state-by-state." The threat of accelerating climate change, while more closely linked to carbon dioxide emissions, is also affecting the conversation around product sustainability. As with materials like single-use plastics, corporations are some of the biggest polluters of the atmosphere, and yet few are going to the lengths needed to curb their impact, according to Arena. "I'd like to see more CEOs speak out about climate change and more broadly advocate for climate solutions," Arena said. "It is both morally and economically risky for corporations to shirk this responsibility, and continue with business as usual."

Tangible change

Reactions to these trends are becoming more tangible: PepsiCo and Coca-Cola last month both cut ties to the Plastics Industry Association, a lobbying group representing manufacturers. They joined other massive companies like Clorox and Ecolab, CNBC reported. Aquafina, a PepsiCo water brand, plans to start packaging some products in aluminum in 2020. The coffee giant Starbucks has started to phase out disposable plastic straws, with plans to be rid of them in all stores next year. A desire for more direct solutions has resulted in broader business initiatives that appear to be catching consumers' attention as well. After three years in development and extensive testing, Loop formally launched earlier this yearwith initial partners including P&G and Nestlé, which are founding investors, along with Mondelēz, PepsiCo, Unilever, Danone and others. "It's not some 2030 transition. That was a really important carrot to dangle in front of the brands."   Anthony Rossi VP of global business development, Loop The service offers sustainable packaging for an array of products from its partners, from diapers to razor blades, that are delivered, picked up and cleaned for reuse by Loop. The most important hook for the service was the baked-in infrastructure and immediacy of availability, according to Rossi. "It's not some 2030 transition," Rossi said. "That was a really important carrot to dangle in front of the brands, that this exists today. I'm not asking you to wait six years to try something."

'Disney-fying' sustainability

Loop, which is now available in New York, New Jersey, Pennsylvania, Connecticut and Maryland, has more than 100 products available, with more added every week, per Rossi. Some partners, such as P&G, have worked with TerraCycle for years — relationships that helped to lay the groundwork for Loop's rollout. "Operationally speaking, this is the biggest bite of the cake we've taken," Rossi said of Loop. "In its essence, what we're asking all of our partners to do is change the way that they operate, from the packaging they use to how they fill it, how it's being sold." Early signs seem promising, even if the availability is small. "The larger players getting involved with [startups] like [Loop] are welcome[,] but it's limited scale," Callow said. Loop's employee headcount could match its parent organization, which has 21 offices around the globe, according to Rossi. Five thousand people are currently registered for the service, but 90,000 people are on a waiting list to join, he added. "If the consumer isn't going to pay for this and want this, then none of it works," Rossi said. "The demand is there." Marketing the service is still complex. Loop has a dedicated unit that works with dozens of partners to integrate the platform's messaging into their brand equity, communications and advertisements. But the heavy lifting still falls on those partners' shoulders, since Loop doesn't have the necessary degree of consumer-facing awareness. "TerraCycle as a brand, it's not Disney," Rossi said. He compared the company to a firm like Intel, which supplies other companies with the technology to power the hardware consumers actually purchase. "People know Häagen-Dazs a lot more than they know Loop," Rossi said. "We want the brands to tell the story because they have the reach."

Embedding authenticity

Beyond consumer-facing marketing and packaging, expectations to be more sustainable are manifesting in less publicly visible arenas. The Freeman Company, an agency that helps clients design and run corporate events, has seen consumer-facing brands push harder for sustainable offerings after feeling pressure to go green. "There are so many sustainable decisions, as long as you make them at the beginning, and you're designing it in, it's embedded in your thinking," Melinda Kendall, Freeman's SVP of sustainability, told Marketing Dive. "Most sustainable decisions are cheaper; they involve doing less of something." Newer digital tools open interesting avenues on the sustainability front. Tactics like digital signage, immersive technology and mobile apps not only reduce the use of materials like paper and plastic, but also naturally fit into a demand for convenience that was growing regardless of sustainability trends, according to Kendall. "Most sustainable decisions are cheaper; they involve doing less of something."   Melinda Kendall SVP of sustainability, Freeman Company "A lot of the growth lately has been in virtual reality and augmented reality," Kendall said of events-planning. "The more we can use technology to make that experience realistic, it's a very sustainable path." But like Callow, Kendall reinforced that a truly sustainable approach must be integrated across an organization internally, both for B2B and consumer-first brands. It's a cause that extends far beyond marketing and is more nuanced than many common definitions of the word suggest. "Often times, when people think about sustainability or purpose and all of that, they think in terms of it equaling recycling. All I have to do is put things in recycling bins," Kendall said. "That's good — that's better than landfill — and it's the least sustainable thing you can do out of a set of like six."  

Why reusable food packaging has a promising future

In searching for an innovative method to provide consumers with sustainable yet convenient packaging options, companies including Tyme Fast Food and TerraCycle's Loop program, as well as retailers including PCC Community Markets have reimagined packaging as something reusable rather than disposable.

Why Reusable Food Packaging Has a Promising Future

In searching for an innovative method to provide consumers with sustainable yet convenient packaging options, companies including Tyme Fast Food and TerraCycle's Loop program, as well as retailers including PCC Community Markets have reimagined packaging as something reusable rather than disposable.

Clorox joins brands in Loop reusable packaging program

Clorox joins brands in Loop reusable packaging program Several major manufacturers are onboard for the circular use pilot. The Clorox Company (NYSE: CLX) has added two of its popular products to the list of items available through the TerraCycle Loop circular sustainable shopping pilot program. First announced at the World Economic Forum in January, Loop enables consumers to purchase commonly-used products in customized, durable packaging that is delivered in a reusable shipping tote. The initiative aims to establish a new model that supports responsible consumption and ends society’s dependence on disposability. Once products are used, consumers place the packaging in a special tote for free pickup, then Loop hygienically cleans the packaging, replenishes the products and returns them to the consumer. TerraCycle partnered with UPS to design its reusable, easily-cleanable tote to handle both liquids and dry goods over multiple uses, Recycling Today reported. The pilot program is available in the mid-Atlantic region of New York, New Jersey, Pennsylvania, Maryland and Washington, D.C. Clorox crisp lemon disinfecting wipes and Hidden Valley Original Ranch topping and dressing will be available through the program, and the company plans to add a Glad food protection product to the platform later this year. Other products available through the Loop program include Procter & Gamble brands including Tide detergent, Cascade dishwashing products, Pantene haircare items and Oral-B dental care. “We are building on more than 180 years of innovation and world-class consumer insight to enable responsible consumption at scale,” Carolyn Tastad, P&G’s(NYSE: PG) Group President - North America, said. “We’re proud to partner with TerraCycle as the first CPG company to be part of this program as we work to accelerate sustainable innovation and explore new circular solutions that consumers love.” Companies including Unilever, Nestlé, PepsiCo, Danone, Mars Petcare, Mondelēz International are also onboard, per CNN, for a total of about 300 products. The Kroger Co. (NYSE: KR) and Walgreens (NASDAQ: WBA) are founding retail partners with Loop, and consumers in the pilot region can shop for products through www.thekrogerco.com/loop orwww.walgreens.com/loop, and in the future, the retailers hope to enable consumers to purchase Loop products in stores in select locations.  

Getting Into The “Loop” — Go Green Galloway

Because everything in the recycling and solid waste world is in disarray right now, it’s time for new thinking and action. There is something called “Loop,” which turns some old-fashioned thought into a new world of actionable solutions. Think of the milkman and “Charles Chips” of days gone by and the way products were delivered right to your door in mostly reusable containers. Then also hear the words of Tom Szaky, CEO of Terracycle, the company putting forward the concept of the “Loop”: “Loop is about the future of consumption and one of the tenets is that garbage shouldn’t exist.” This idea is based on delivering products to homes and businesses in reusable containers, with a goal of having all packaging be reusable or recyclable by design. Some companies on board with this thinking are huge ones: Proctor and Gamble, Pepsico, Nestle, Unilever, Mars, Clorox, Coca Cola, Nature’s Path, Danone and many others, here and abroad. With the encouragement of Terracycle, an example of reuse would be for Tide detergent to come in a durable stainless steel container with a sturdy twist cap. Haagen-Dazs ice cream could be packaged in reusable double-walled stainless steel tubs designed to be kept cold. Similar products such as shampoo, hand soaps, mouthwash, creams, etc. can be handled this way. UPS and other delivery services would deliver a box of these supplies and pick up the empties to and from your home, their facility or another delivery scenario point. Concurrently, the “zero-waste” movement strives to take our wasteful ways down to a bare minimum. This is no easy task, given the current levels. Roughly, each American generates about 5 pounds of trash per day, of which only about 30% is either recycled or composted. Much of this material goes to landfills, where it produces large amounts of methane gas, a small fraction of which is captured or burned off. We have a long way to go and need a multi-pronged attack.   Source reduction efforts on both the production and consumer sides are critical to making substantial progress without resorting to landfilling and burning. Some of the same large corporations that are talking about “buying into” the Loop process are also still manufacturing products in containers that are not recyclable in most areas. On the recycling side of things, since other countries are now restricting the amount of our waste that they will buy; we need to co-ordinate exactly what materials can be universally marketed. The issue of contamination within the recycling stream must be straightened out through education and, if necessary, code enforcement actions. As in many cases involving business trends, they need strong signals from both government and consumers to react positively for the environment with new or less packaging, or the refillable container idea. “Loop” is scheduled to be rolled out in test markets in the Eastern United States and in parts of Europe right about now. Check out progress by searching for “TerraCycle Loop” online. Also, the zero-waste movement has many iterations and suggestions online. The Galloway Township Office of Sustainability has more information on the current state of recycling, ways to “precycle,” tips on source reduction of trash as well as deeper, nontraditional recycling. The office can be reached at gtnj.org or at 609-652-3700, ext. 209.  

99% of What We Buy, We Don't Actually Want to Own, Says TerraCycle CEO

Tom Szaky, the founder and CEO of waste management company TerraCycle, spoke at Calcalist’s Mind the Tech conference in New York Thursday

99% of the things people buy, they don’t actually want to own, said Tom Szaky, the founder and CEO of waste management company TerraCycle Inc., at Calcalist’s Mind the Tech conference in New York Thursday. When customers buy a cup of coffee from Starbucks or a disposable water bottle, the customer will have to manage the packaging in addition to the drink or product itself, and the container will ultimately end up getting thrown out, Szaky said.   The company’s most recent venture, Loop, aims to reduce waste by offering a reusable and returnable delivery service for consumers that picks up empty packages, then washes and reuses them. Loop will be launching in France and the U.S. next month. Among the brands already on board are Procter & Gamble, Unilever, PepsiCo, Nestlé, and Danone.   In Israel, the company recently launched a shampoo bottle that is made up of 25% recycled ocean plastic, Szaky said.