In a highly competitive marketplace, one of the most significant challenges that companies and major brands face today is distinguishing themselves as a social agent. Gone are the days where being “environmentally friendly” automatically added value in a largely niche market for socially responsible corporate behavior. Today’s consumer is highly discerning, increasingly concerned with things like supply and production chain sustainability and product recyclability, and highly allergic to ethical claims that are inauthentic, vague or misleading.
That consumers are willing to pay a premium for sustainable products and services is an understatement. More and more, consumers expect companies to dedicate themselves to making a positive social or environmental impact on society as a baseline, and want to be able to trust them to prioritize ethics on their end. It’s no new idea that consumer brands that have not embraced sustainability and CSR initiatives are at risk on many fronts. But creating the kind of value that grabs the attention of consumers also requires legwork beyond simply “doing good.”
Leading industrial adhesive manufacturer Henkel has found a way to work sustainability into their brand DNA, rather than something that they simply “do.” In partnership with my company TerraCycle, Henkel is the first to offer a recycling solution for anaerobic adhesive packaging through the LOCTITE® Anaerobic Adhesive Recycling Program. Also the first time that TerraCycle is recycling this category, Henkel is a pioneer in their use of our sustainability platform in more ways than one.
Henkel is our only recycling program sponsor that has created their own branded Zero Waste Box, a custom recycling solution from TerraCycle that allows consumers to recycle hundreds of waste streams through category specific boxes. Participants in the program can now purchase a postage-paid recycling box branded with Henkel’s copy, colors and logo that they fill with empty LOCTITE adhesive containers to send to TerraCycle for processing.
Offering a custom, branded recycling solution adds value for current and potential customers by communicating that solving for its difficult-to-recycle anaerobic adhesive containers is part of who they are. In a currently inefficient global waste management infrastructure, companies like Henkel see the massive ROI potential for putting forth the resources to make their previously unrecyclable product and packaging waste nationally recyclable. By setting their own bar on sustainability and keeping it high, companies add value by pioneering environmental stewardship.
Leveraging environmentally sound and socially responsible processes in the marketplace is in direct relation to how brands communicate to their consumer and differentiate offerings from those of brand competitors. USDA Certified Organic, Fair Trade Certified and Non-GMO Project Verified certifications, for example, are recognizable (often on-pack) demonstrations of a brand’s commitment to meeting necessary production and labeling requirements, indicating to consumers a certain promise of quality and incentivizing more brands to meet and exceed those standards.
This month, TerraCycle celebrates the important milestone of a decade Eliminating the Idea of Waste through free recycling programs and custom recycling solutions in Canada. Since opening in 2006, TerraCycle Canada has engaged two million people to recycle, diverting 150 million units of difficult-to-recycle waste from landfills and raising over $400,000 for charity.
In The Huffington Post, TerraCycle Founder and CEO Tom Szaky explains the benefits that come with integrating sustainable solutions into branding strategies.
While consumers are willing to pay a pretty penny for sustainable products and services, they also expect companies to commit to making a positive social or environmental impact on society.
In
The Huffington Post, TerraCycle Founder and CEO Tom Szaky explains the benefits that come with integrating sustainable solutions into branding strategies.
The Huffington Post has more:
In a highly competitive marketplace, one of the most significant challenges that companies and major brands face today is distinguishing themselves as a social agent. Gone are the days where being “environmentally friendly” automatically added value in a largely niche market for socially responsible corporate behavior. Today’s consumer is highly discerning, increasingly concerned with things like supply and production chain sustainability and product recyclability, and highly allergic to ethical claims that are inauthentic, vague or misleading.
That consumers are willing to pay a premium for sustainable products and services is an understatement. More and more, consumers expect companies to dedicate themselves to making a positive social or environmental impact on society as a baseline, and want to be able to trust them to prioritize ethics on their end. It’s no new idea that consumer brands that have not embraced sustainability and CSR initiatives are at risk on many fronts. But creating the kind of value that grabs the attention of consumers also requires legwork beyond simply “doing good.”
In today’s world, the basic model for the production of goods is linear: Natural resources are extracted and turned into products that are used for a limited time.
While some of these products are recycled, most eventually end up in the world’s landfills.
This model is becoming increasingly unsustainable and expensive for businesses.
Commodity prices rose more than 150 percent between 2002 and 2010 and an additional three billion middle-class consumers are expected to enter the global market by 2030.
This unprecedented demand for goods and services, coupled with increasing resource scarcity and price volatility, is causing companies to move from a traditional “take-make-dispose” model to a more circular strategy.
Closing the loop with innovative logistic solutions
In recent years, I’ve seen companies like Dell, Patagonia and TerraCycle focus their sustainability efforts on implementing seamless take-back programs that make use of turnkey packaging, pickup services and pre-paid return labels.
With approximately 97 percent of business leaders listing logistics as important to transitioning to a circular economy, partnering with intelligent logistic providers will be crucial for companies to implement cost-effective circular strategies.
The future of the circular economy
I recently had the opportunity to participate on a panel at GreenBiz VERGE 2016 with Tom Szaky, CEO of TerraCycle, and Kevin Zweier, VP of Transportation Practice at Chainalytics, to discuss trends shaping the future of the circular economy.
In addition to the critical role of logistics, major takeaways from the discussions included:
Tailoring the solution
Companies trying to implement circular strategies face a “first-mile” challenge with re-using products and resources for future consumption.
Each product in a company’s supply chain must be analyzed based on its unique characteristics from raw material to end-of-life.
Circular planning must then be used to determine whether reclaimed products and resources should be transported back to a central hub facility or dealt with on a local level.
Education is key
To build mainstream acceptance and support for a realized circular economy, governments and businesses alike should prioritize educating consumers about circular principles, including which products can be reused, recycled or upgraded.
By helping customers make easy decisions when they are done using a product, we can ensure valuable materials don’t end up in landfills.
We all have a role to play
While companies are investing in innovative partnerships and creating more sustainable solutions, there is also a need for customers and consumers to take advantage of these offerings so that these investments can be supported by a strong business case.
One of the most common misconceptions about the circular economy is that it will be impossible to achieve. I believe that when companies invest and collaborate to implement “smarter” supply chains and give others an opportunity to participate, the notion of a circular economy can certainly be realized.
Each morning is the beginning of a new day and another chance to make the world a better place. Think your actions don't make a difference? Think again!
Taking small, mindful actions for positive improvement can have a great impact on your community and inspire others to do the same. There are so many opportunities to do good for the planet, and many of them are right under your nose.
Here are three ways you can do your part to make the world a better place...all before 10 a.m.
* Concentrate on your morning routine. So much of what we do in the morning can be condensed to consume less and do much more. Try to reduce your water usage by shortening your shower time and don't let it run while you brush your teeth. Make your own coffee and lunch to cut down on food packaging waste. Carpool to put fewer vehicles on the road and get to know your co-workers.
* Engage in "mindful" acts of kindness. Make it a point to hold the door open for a stranger, compliment your co-worker's outfit or new hairstyle, or buy a snack for the person behind you in line. To be kind is an act of solidarity, and doing good for others will inspire members of your community to do the same. Kindness is the currency of change: spend wisely and often.
* Learn about new ways to recycle. Did you know that Malt-O-Meal cereal bags can be recycled through a free program in partnership with TerraCycle, a New Jersey-based recycling company? To begin with, Malt-O-Meal bagged cereal creates 75 percent less packaging waste than boxed cereal with a bag inside. Through the MOM Brands Cereal Bag Recycling Program, you can ensure that none of it ends up in the landfill and raise money for charity at the same time!