Sustainable Planet Feature

Sustainability: threat or commercial opportunity?

Get Connected has been writing for some years - with considerable interest and support from manufacturers - about the relevance to this industry of sustainability, “green” products, energy saving, conservation of resources and recycling. The (literally) burning issue of climate change is now huge in consumer consciousness, and our industry has the opportunity to o er advice and guidance to customers about how their choices of domestic appliances can help achieve the sustainable planet

You have stolen my dreams… my childhood – HOW DARE YOU!”

Teenager Greta Thunberg’s throaty growl and withering thousand-mile stare at last year’s UN Action Summit cut through the political noise to put world leaders on the naughty step and climate change back on the world’s agenda. National Treasure Sir David Attenborough, some eighty years her senior, showed his full support. And to sustain the pressure, Ms Thunberg turned up at this year’s Davos World Economic Forum to repeat the message – albeit in more measured terms – to the world’s rich and powerful, and again stole the media limelight from the big boys (no mean feat when the world’s most needy attention-seeker, Donald Trump, was there.) This time, the gravitas of older-generation establishment support came from Prince Charles seeking the Thunberg photo opportunity.

Meanwhile in the UK, Extinction Rebellion was disrupting road, rail and air transport, costing the Met Police millions and earning huge media coverage – though not always the total approval of commuters just trying to get to work. Sky Ocean Rescue’s campaign has succeeded in making plastic pollution a worldwide concern, forcing multiple retailers and commercial companies to consider publicly how they can reduce plastic usage.

Finally, and not at all frivolously, Greggs announced a bonus for all its workers on the strength of profi ts from sales of its vegan sausage roll.

AND YOUR POINT IS…? How is this relevant to our industry, and particularly to electrical retailers trying to make a living in a very hard world? You may believe climate change is an emergency we all need to address.

Or you may think Greta Thunberg is a stroppy teenager who should stop shouting at grown-ups and go back to school; that Extinction Rebellion is a bunch of middle-class virtue-signallers smugly taking advantage of a benign system when, if they were in Russia or China, they would risk far more than a suspended sentence and the chance of losing a bit of skin o their superglued fi ngers. The point is, agree or not, concern for climate change and the planet’s health is now a very big thing indeed. It has huge public momentum and

is beginning to force commercial enterprises to think, act upon and publicise their e orts to mitigate the damage they’re perceived to be doing. Those who don’t risk consumers turning away from them.

Signifi cantly, Greggs was able to monetise – and gain huge publicity from – the fact that veganism has broken out of its niche and into mainstream consciousness of the need for more sustainable food choices. And so, if nothing else, it makes commercial sense to acknowledge public opinion and fi nd ways to make it work in your favour. If manufacturers and retailers have products to sell (such as domestic electrical appliances) that have an undeniable impact on the environment, then it’s a sensible commercial as well as environmental decision to mitigate that impact.

TELL THEM ABOUT IT We know, for example, that domestic appliance manufacturers have been working very hard, and investing substantially over the past decades to make sure their products minimise impact on the environment, from sourcing production materials, cutting energy and water consumption during manufacture, through more e cient performance during their lifetime, to end-of-life recyclability. Their successes are known to the trade, but not so much to the wider appliance-buying public. How many of your customers, for instance, have heard of Electrolux’s commitment as long ago as 2015 to making sustainability a core part of the business? Or Whirlpool’s recognition by Dow Jones for “longstanding commitment to sustainable business practices,” and the company’s recent practical support for LifeGate’s anti-plastic Indesit Innex washer/dryer: washday is cleaner than ever in terms of sustainability

pollution initiative? Or Beko parent Arçelik’s announcement at IFA 2019 that it would make its microfi bre fi ltration system, which prevents microplastics from washing machines ending up in the sea, available to competitors? These are just a few examples, and in the past perhaps not the sexiest selling-points in-store. But anyone who switches on the TV or radio news, or picks up a newspaper, can see the narrative has changed, and if ever there was a time to be fully informed about what the brands you sell are doing, and to promote it to concerned customers, it’s now.

BETTER TOGETHER Manufacturers are stepping up to the sustainability challenge, and as their trading partners at the interface between industry and customer, retailers are a vital link in the communication chain. As Lee Collett, Channel Controller, KitchenAid, says: “Education is vital in order to consolidate and build on consumers’ eco-consciousness. There is awareness amongst consumers of the importance of sustainability. However, consumers don’t always act upon this awareness in order to live a more sustainable lifestyle, often because they don’t know the best and easiest ways to do so.”

Anne Kaarlela, Marketing Communications Manager, Europe and Russia at tap and waste disposal manufacturer InSinkErator, agrees that “environmental issues, such as single-use plastic waste and food waste, are increasingly featured in the media to encourage consumers to make positive lifestyle changes that benefi t the world we live in. We expect this important issue to have an e ect on the kitchen industry in 2020 with manufacturers striving to o er products to consumers that can help reduce their carbon footprint.” Catherine Balderson, Senior Hotpoint Brand Manager, reinforces the point: “It is the responsibility of both the manufacturer and retailer to educate and build on the consumer’s eco-consciousness,” adding that the company “encourages retailers to discuss with customers at the point of sale what exactly they are looking for in an appliance. This gives the independent retailer the perfect opportunity to demonstrate their expertise in explaining the technology and programmes now available that will suit the consumer’s individual needs. Showing and telling can help the customer to make a more informed decision and the attention and interaction provided will leave a lasting impression with the consumer.”

Indesit Brand Manager Sara Bazeley, refl ecting agreement among all the manufacturers we spoke to, adds: “Retailers should always take the time to explain the energy labelling system, and help the customer to compare models and brands, in order to demonstrate how much energy and water can be saved by choosing the most e cient model.”

KNOWLEDGE IS POWER If the industry agrees that teamwork between manufacturer and retailer is essential for success in the era of eco-consciousness, how are we achieving it? Most of the manufacturers GC spoke to run retailer training programmes, mostly product-based and focusing on the technology inside the machines. In just one example, Indesit’s Sara Bazeley outlines the brand’s training programme, saying it has “invested in the development of its E-Learning platform,

Hotpoint fridge/freezer. Cooling appliances are leading the energy and food conservation revolution

which enables retailers to be able to access training on various product categories, so they can fully understand the technologies inside the appliances and explain them to customers. In addition, Indesit also has a dedicated training team and regularly hosts trade partners at the company’s Showcase in Peterborough.” The training from all major brands is clearly there, but, as Bazeley emphasises, “it is imperative that retailers take up manufacturers’ training opportunities, so that they are in the best position to inform, educate, enthuse and engage every customer that comes through the door.”

THE SCORES ON THE DOORS Nobody can claim that technological advances – particularly in white goods – are anything less than huge, exciting and relevant. So there’s more to learn, and more questions to ask of customers to get the focus on what they care most about. But it’s a safe bet that, whatever the customer is interested in, there’s a very positive story to tell, and an increasingly important part of that story is sustainability. As Laura Jones, product manager at Smeg UK, succinctly puts it: “While style, design and ultimately price are key factors for individuals when choosing a new appliance, eco credentials have become increasingly important – especially if you are playing the long game as they are an investment that will help you see returns on your utility bills over a greater period of time.”

The obvious place to start is with energy ratings. The legal requirement for standardised labelling on all appliances means there’s no hiding place, and direct comparisons can be made on the spot. Energy e ciency has advanced so much that the original A to G labelling system has been superseded by

products so much better than the old “A” rating, and consumer choice is very much moving into the added categories of A+, A++ and A+++. As Hotpoint’s Catherine Balderson says: “There is now a greater appreciation amongst consumers of how our actions can impact the environment and, as a result, there is an increased desire for appliances that achieve the best results with the most e cient energy ratings. The energy label has subsequently become a symbol of quality and e ciency and a purchase driver, with sales of ‘A+++’ rated appliances surpassing sales of lesser rated models.”

Be prepared, however, for an imminent change that may need some explaining to customers: just when they’re getting used to expecting a few “+” signs to indicate high e ciency, the powers that be now consider this is “confusing” to some consumers, so from 2021 in the UK, fridges, dishwashers, washing machines, TVs and lamps will go back to the simple A to G labelling (presumably with recalibration so the new “A” rating becomes equivalent to the current “A+++”). EVERY ONE’S A WINNER The positive story extends to all categories of domestic appliances, from heating and refrigeration to washing, cleaning and cooking, each with its technological developments that enhance performance and sustainability.

In cooking, perhaps the biggest advance is in the takeup of induction, making high performance, precisely controllable, clean, stylish and energy-e cient hob cooking available across most price points. The technology may be complicated, but, as KitchenAid’s Lee Collet simply puts it: “Induction hobs are growing in popularity, particularly as consumers begin to recognise their e ciency, compared to gas and ceramic hobs. Induction hobs heat the pans directly, through a magnetic fi eld, meaning that energy isn’t being wasted around the edge of the pan.” If you have the in-store capability, a demonstration is usually a clincher with induction. Inside the oven, the programming e ciency, the cavity confi gurations and the “hybrid” cooking options can be equally bewildering, but focus on individual customer needs can reduce the complications. Steam, now better understood by consumers, is an up-and-coming oven option and benefi ts from the sustainability story. Caple product manager Luke Shipway put it in a nutshell: “Steam cooking is highly energy e cient as it cooks food faster and at lower temperatures than other

methods of cooling. Also, because it’s odourless the cook can actually save energy by

cooking di erent foods simultaneously without the di erent fl avours mingling.”

As the “always-on” appliance, the fridge/ freezer needs to be energy e cient, and in 2020, it is. And along with the “A+” and beyond ratings, the technology inside – such as air fl ow and humidity control, zoning for di erent foods – addresses the huge problem of food waste by ensuring taste, freshness and nutritional value are preserved for far longer across a range of foods from fresh fruit and vegetables to meat, cheese and fi sh. £1 billion of food ends up in bins every month, and that’s an environmental as well as a domestic disaster that can be stopped. Most major manufacturers have developed technologies, and to avoid “tech overload” it’s always worth focusing on specifi c customer needs as these are explained. CLEAN MACHINES In laundry, the emphasis is of course on cleaning and garment care performance, but along with it go water saving technology, precise detergent dosing, reduced-temperature and eco programmes, direct drive and induction motors. The bottom line is they work better, they save resources and they keep the household bills down.

It is good to see that the Cinderella of UK MDA, the dishwasher, has fi nally shaken o its undeserved reputation for profl igate use of energy and resources. If any consumer in the UK still doesn’t know that a dishwasher uses less energy, less water and less detergent than washing up by hand, it’s our mission to convince them. “Dishwashers have never been so water and energy e cient as they are today,” says Lee Collett. So the dishwasher is even more of a sustainability no-brainer than ever. “The energy label has subsequently become a symbol of quality and e ciency and a purchase driver, with sales of ‘A+++’ rated appliances surpassing sales of lesser rated models.”

LAYERS OF INSPIRATION 1 - 4 March 2020 NEC BIRMINGHAM For more information, visit www.kbb.co.uk

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FIRE AND WATER Taps that can deliver hot, cold, boiling, fi ltered and sparkling water have seen an upsurge in popularity, and their benefi ts are manifold: more energy e cient than boiling a kettle, and an opportunity to dispense with one to free up space on the worktop; no more need for bottled water in single-use plastic bottles; more e cient overall use of water; a stylish statement piece in the kitchen; a convenient one-source appliance for a range of everyday kitchen needs.

And for retailers looking to provide their customers with a “traditional” but eco-conscious focal point, the wood burning stove – the “wow factor” in many a TV property programme – is going greener. Stove manufacturer ESSE, for example, has been developing clean burn technology which meets and surpasses anticipated new clean air standards. “Emissions and air quality are much more important to customers today,” says ESSE, “and with the new Eco Design standard due to come into e ect in less than two years, the e ciency and environmental performance of wood burning stoves is coming under greater scrutiny. The Government’s new Clean Air Strategy will introduce more stringent checks on woodburning stoves. There are no plans to ban the use of wood-burning stoves, but from 2022 onwards only the cleanest burning stoves will be permitted to be sold in Britain.”

SMART & SUSTAINABLE The advent of the smart home may also have a pivotal role in helping householders reduce their carbon footprint. This is something on which most manufacturers agree, and the sustainability dimension is growing in importance. “There is no doubt that connectivity is the next step in many appliance categories,” asserts KitchenAid’s Lee Collet. And, for Charmaine Warner, brand manager at Whirlpool, “connected appliances hold the potential to take resource and economic savings to the next level. Through harnessing smart and connected technology, appliances can choose the best time to operate, and this, in turn, can allow for the integration of more re-usable energy into the running of our homes.”

THE BIGGER PICTURE While in-home e ciency and performance of appliances remains key to sustainabilityconscious consumers, manufacturers’ broader e orts to make the materials and processes of manufacture more sustainable are coming under consumer scrutiny. The BSI, for example, has recently referred to the “reputational impact” of a sustainability strategy. A brand that is – and is seen to be – “greener” in its end-to-end manufacturing philosophy and practices can win long-term allegiance from consumers.

In this context, the environmental – and economic - benefi t of recycling potential pollutants such as plastics into the manufacture of new domestic appliances is something all appliance manufacturers need to explore. But Steve Bell, general manager at UK & Ireland-based waste management, recycling and resource recovery business Enva Group told GC: “Whilst there is little in the way of published

data to assess the use of recycled polymers such as such as Polypropylene (PP), Acrylonitrile Butadiene Styrene (ABS) and Polystyrene (PS) in the MDA sector, our experience indicates that uptake is far lower than would be expected given the signifi cant fi nancial savings and environmental benefi ts.” However, he adds that “the production of modern recycled polymers has changed dramatically. Not only are they now comparable in terms of quality to virgin oilbased products, but they also present users with a considerable cost saving. It’s also important to note that no modifi cation of manufacturing equipment is required when o setting virgin polymer for recycled, meaning there is no cost associated with the switch.

“Long term availability is also no longer a restraining factor. In fact, materials are continually increasing as the waste and recycling sector continues to evolve and develop. Enva alone has recently invested £1.8m in order to double its output capacity to over 2000 tonnes of extruded compound per month.

“Variations to recycled polymers are also now far easier and more economical. This could include the addition of elastomers to improve impact strength, additives to increase melt fl ow or fi llers to make PP stronger and sti er. A range of colours is also now available. In fact, it’s technically possible to produce any colour required by a customer.”

MARKETING BENEFITS Bell believes these environmental and economic benefi ts are augmented by powerful marketing potential. “For brands with the foresight to be early adopters of these high quality and valuable secondary resources,” he says, “there is a real opportunity to promote a high percentage of recycled plastic as part of their marketing strategy. The majority of consumers want to think that they are making decisions that benefi t the environment, and by selecting an appliance that uses a high percentage of recycled plastic they can easily discharge this responsibility without any fi nancial or practical impact on themselves.

“The potential cost savings, the demands from customers for more sustainable products and the escalating cost of virgin polymers resulting from the increased scarcity of primary resources will undoubtedly see manufacturers increasing the amount of recycled materials they use in their products. This presents a real opportunity for those companies that are prepared to move early in order to di erentiate themselves and build a competitive advantage.”

Carrying this through to the retail environment, Bell envisions “improved POS information relating to recycled content, the resulting CO2e savings and the reduced pressure on the earth’s fi nite natural resources would be a very powerful and persuasive message for consumers, especially when it does not cost them any more money to make this ‘greener’ choice for them and their families. If you have two appliances with similar performance, and at a similar price point, why wouldn’t the consumer choose the more sustainable product?”