A framework for a modern business strategy: the CHSA’s Roadmap to Sustainability

Climate change is an accepted reality. We can see its impact in the increased frequency of extreme weather events, in the heatwaves, flooding and bush fires. Delaying action is no longer an option and governments are legislating to tackle the problem. The Plastic Packaging Tax came into force this year. Next year the EU will implement the Non-Financial Reporting Directive, which will require organisations to report on environmental issues, and in 2024 the UK government will introduce Extended Producer Responsibility for Packaging.

Businesses in our sector are responding, but they face complex and difficult challenges. The cost of fuel and raw materials is soaring, and a lack of available talent is limiting growth in some sectors of our industry. Managing the commercial reality of running a business in our competitive industry in the context of these challenges leaves little space for developing and implementing an effective sustainability strategy. But we can’t ignore it. Collectively, we must meet the targets of COP 26, which include global net zero by the middle of the century.

An authentic sustainability story is also now important to long-term success. Increasingly able to spot greenwashing, stakeholdersincluding shareholders and customers - are demanding genuine sustainability strategies. Today’s employees are also looking for meaning in their work. True sustainability at the heart of the business can be a magnet for talent and inspire loyalty.

Our Roadmap to Sustainability has been designed by our members for our members. It offers a practical framework they and others in the sector can use to progress towards ethically and environmentally sustainable practices, policies and procedures, whatever their starting position.

Tread lightly

At its core, ethical and environmental sustainability is about creating products or services that are not wasteful at any point in their lifecycle, from inception to the end of life. Our Roadmap, therefore, is founded on the principle of treading lightly in all areas of the business, including the social dimension.

Experts from within our membership have some simple advice for organisations wanting to adopt this approach. The guidelines are:

1. Be transparent and authentic.

2. Take it one step at a time. Don’t be intimidated by what might feel like a huge challenge or get hung up on perfect.

3. Measure what you can. It will help you increase your accountability.

4. Certification counts. It proves your commitment.

5. Lead by example and persuade others in your supply chain to adopt sustainable practices.

6. Celebrate your successes.

The five pillars

The Roadmap to Sustainability framework is built on five pillars - product, packaging, transportation, social value, and corporate environmental impact. To help get people started, we have identified a general approach, accompanied by some practical guidance, for each pillar.

Pillar 1: Product, as it is received, used and disposed of by the end user. Design and develop products with the following principles in mind:

1. Aim for a circular economy. This includes thinking about the recapture of resources at the end of the lifecycle.

2. Consider the whole lifecycle of the product at its inception. This includes responsible sourcing and resourceefficient production.

3. Don’t use what you don’t need. Produce more with fewer resources.

4. Re-use wherever possible.

Pillar 2: All the packaging of a product, throughout the supply chain. The ultimate goal is a minimalistic approach. Less is definitely more, both in terms of the amount of packaging used and the resources required for its production:

1. Think laterally. Be clever with the design to reduce the packaging.

2. Talk to your colleagues, up and down the supply chain, about over-packaging.

3. Design the packaging to simplify the waste stream. Make it as easy as possible for people to get the packaging into the right stream.

4. One packaging material is not better than another by definition. What matters is whether or not it can be re-used and, if not, the availability and efficiency of the recycling options. This includes making it as easy as possible to recycle.

Pillar 3: Transportation, encompassing the movement of raw materials and delivery of product to the end user. This pillar is complex so keep it simple if you are at the beginning of your sustainability journey:

1. Design the product to optimise palletisation and vehicle usage to transport more in the same space.

2. Where possible, swap to ‘compressed’ products. For example, the number of pallets could be reduced significantly by swapping from ready to use to concentrated formulations.

3. Reduced emission transport options are preferred. This includes, for example, transitioning to electric vehicles and optimising loads and delivery routes.

4. Collaborate with customers to ensure full pallets and vehicles. If they need persuading, become a thought leader. Understand their resistance and work with your suppliers to develop the well-evidenced arguments you need to overcome it.

5. Develop your strategy for migrating to electric vehicles by 2030.

Pillar 4: Social values, including mental wellbeing and personal development. Most businesses do far more than they realise in this area:

1. Pause, notice everything you are doing already and celebrate it.

2. Empower your team to do more. It can really boost retention, offering opportunities for personal and career development.

3. Seek partners who share your ideals.

Pillar 5: Corporate environmental impact covering waste, emissions and water. This area can feel intimidating, so start with a few basics:

1. Review your waste stream. Can it be streamlined? What waste currently goes to landfill? What needs to change to reduce the volume?

2. Think about the water you use. Do you collect and use rainwater? Are you using grey water, the water collected from sinks and manufacturing processes etc.

3. Set annual targets for reducing your energy usage.

4. Talk to your partners. Share ideas and approaches.

Questions and answers

A panel of experts from within our membership answered some of the questions being posed by our members. How do I avoid greenwashing?

Always look for certification. You want to see the evidence backing up any claims. If it sounds too good to be true, it is. It is important to be informed. If you are aware of the developments in the market you will have the context you need to reflect on and evaluate claims. Finally, the Seven Sins of Greenwashing, easily available on the Internet, is a fantastic resource.

How do I research and identify sustainable suppliers and manufacturers?

Always look beyond the product specification to the manufacturer or supplier themselves. Find out if they have a plan to achieve net zero emissions and are formally reporting on progress. Seek third party accreditation/recognition. For example, look at the EcoVardis rating. It takes a holistic perspective.

In UK and EU, medium to large companies will be required to formally report on environmental issues and governance. The EU’s Non-Financial Reporting Directive (NFRD) comes into effect in 2023. Smaller companies will not be covered by this regulation, and it is not always possible to accredit initiatives, so look at the stories the company is telling. This is particularly important for smaller companies that may not have the resources to complete the larger accreditations. What steps are they taking to, for example, reduce packaging and increase recycled content? Look at their website and social media channels for the information. In the absence of formal certifications giving assurance, for example, that 30% of the content is recycled material, secure legally binding letters confirming the product specification.

Customers can resist change – how do you manage this?

They want the product they know and trust in the format they know and trust. They want same day delivery and can resist minimum order quantities. It feels like our hands are tied.

Everyone is on a three-step journey. Step one is gaining certification. Step two is looking for sustainability to add value to the business and step three is turning the attention to saving the planet. Resistant customers are at the beginning of the journey.

We can all be thought leaders. Work with your customers to understand their resistance and priorities, then work with your suppliers to develop the well-evidenced arguments you need and reach a compromise.

For example, if your new solution produces less waste and uses fewer bins there will be less cleaning so cost savings. Quantify the reduction in C02 achieved by adopting minimum order quantities and moving away from same day delivery.

Education counts. Many people will be unaware of the impact of simple switches. For example, 55 pallets of ready-to-use trigger sprays may equate to one pallet of concentrate. Always look holistically. For example, sustainable products might be more expensive, but they may be future proofed against impending new taxes.

Is the aim to reduce the materials used in manufacturing/packaging or to use more biodegradable materials and packaging?

The focus is on recycling as the sustainable alternative for products and packaging. However, using recycled materials leads to higher C02 outputs in manufacturing than if the materials were all virgin. Either way, it all eventually ends up in landfill. Is the aim to reduce the materials used in manufacturing and packaging or to use more biodegradable materials and packaging?

There are misconceptions. New research shows up to 75% less energy is used to make a bottle of recycled plastic versus virgin plastic and reusing plastic and blending it with virgin will reduce C02 emissions when compared with solely using virgin plastic. When examining the whole lifecycle, the carbon footprint of plastic options can be lower than alternatives. For example, mixing bioplastics in the waste stream with plastics can prohibit the recyclability. The priority is always to reduce and opt for lightweight options where possible. Less is always more.

What about the micro plastics being put into the water system when washing materials that have been manufactured from recycled plastic bottles, for example microfibre cloths?

A lot of work is being done to examine the impact of micro and nano plastics on the organism. We do not know enough to make a judgement now. The EU will introduce legislation regarding micro plastics and we can expect new standards for water filtration systems.

For further details about the CHSA’s Roadmap to Sustainability please visit: WWW.CHSA.CO.UK