Consumo Sustentável | Sustainable Consumption: the evidence of real practices by Sustentare

November | January 2009 N.º 13

ISSN 1646-0030 | Quarterly | 5 euros

www.impactus.org

Sustainable Consumption: the evidence of real practices The Marrakech Process on Sustainable Consumption and Production, by the United Nations The UK Ethical Consumer Magazine, more than 20 years of experience The European Union work towards Sustainable Consumption and Production – new legislation? PLASUS – Sustainable Development Portuguese Association, a new NGO in Portugal

Summary

4 Editorial

12 Ethical Consumerism

6 Marrakech Process

16 Responsible Europe

8 task forces

20 EU – Sustainable Consumption and Production

Fernando Ribeiro Mendes Mohan Peck

10 practical examples

Rob Harrison

21 Portuguese Association for fair trade promotion Alexandra Figueiredo

23 PLASUS – NGO for Sustainable Development

29 Companies – views on responsible consumption 32 Logos and their meaning 34 Route

26 QUERCUS

Susana Fonseca

Im))pactus is part of Sustentare - A portuguese based CSR consultancy company, with an independent editorial board and totally open to civil society participation.

Editorial

Directores Sofia Santos Rita Almeida Dias Business Developer Manager Bruno Cachaço Sustentare, Lda Av. Eng.º Duarte Pacheco – Amoreiras – Torre 2, piso 8 sala 7 1070-102 LISBOA – PORTUGAL Tel.: (00351)213849390 \ Fax.: (00351)213849399

Editorial Board António Nogueira Leite Charles Buchanan Carlos Borrego Clara Cidade Lains Constança Peneda Fernando M. S. Carvalho Fernando Ribeiro Mendes Francisco de la Fuente Sánchez João Carvalho João Reis João Soares Joanaz de Melo Jorge Rocha de Matos José Delgado Domingos José Eduardo Martins Luís Leal Mário Melo Rocha Paulo Ferrão

International Partners Responsible Investor, CSR China, GreenBiz, CSR-news, GreenLeaf Publisher, Acquisti & Sostenibilitá, Lisboa E-nova, EcoCasa, Portal das Energia Renováveis, VER, Clube 500. External participation in this edition Fernando Ribeiro Mendes, Mohan Peck, Rob Harrison, Alexandra Figueiredo, Henrique Caetano, Susana Fonseca. Graphic Design/ Pagination and Cover Illustration Rita Botelho rita.botelho@sustentare.pt Translation/Revision João Inácio Photography Rita Botelho Marketing, Advertising and Subscriptions Tel.: (00351)213849390 Fax.: (00351)213849399 bruno.cachaco@sustentare.pt Print Fernandes & Terceiro, Lda Press Run 1000 copies ISSN 1646-0030 Legal Deposit Reference number 210016/04 Property Sustentare, Lda

Institutional supporter

Editorial

Fernando Ribeiro Mendes

| Im))pactus November | January 2009

ISEG e RSE Portugal

Responsible Consumer

sustainable company

The consumer behavior has an ethical dimension that can be observed at two different levels: • In everyday consumption practices, that is, in routine personal choices that reflect values, shaped by moral feelings towards himself and those close to him (family, neighbors, etc); • In ethical consumption, that is, in observance of an emerging field of business practices and public policies which explicitly develop the ethical provisions implicit in everyday consumption practices – usually designated as sustainable consumption. The responsible consumer will be the behavioral paradigm built according to the two levels of the ethical dimension of the consumer. The responsible consumer operates in a different plane, which allies a high motivation to an ethical behavior in consumption with the ability to provide well-defined ethical judgments favoring sustainable consumption, as shown in the following diagram. However, there are many situations in which the judgment is undefined due to a conflict of principles; the responsible consumer faces, therefore, a genuine ethical dilemma. On the other hand, one often carries on attitudes related to lower

quadrants, which entail very low levels of cognitive development that barely comply in fear of disapproval by others, or tolerate a primary relativism towards sustainability issues.

Motivation

DefIned ethical UndefIned ethical judgment judgment

High

Sustainable consumption

Ethical dilemma

Low

Conformism

Laxity

Most consumers have a more or less positive and/or passive attitude towards sustainable consumption, according to certain variables: • Level of income and social status (in view of professional qualifications and formal qualifications); • Prejudices and habits (e.g. mistrust as to recycled materials); • Gender; • Age.

The pro sustainable consumption activism tries to broaden its area of influence, not only by promoting individual cognitive development, but, mainly, by solving ethical dilemmas by prioritizing the relevant principles in each consumption issue. But the activism of consumers cannot change, by itself, the markets of mainstream products which are structured by the marketing mix of competitive strategies. The promotion of sustainable consumption calls for public policy and marketing instruments, and for civic intervention campaigns, as a way to overcome that passivity.

Such instruments include:

“The responsible consumer operates in a different plane, which allies a high motivation to an ethical behavior in consumption with the ability to provide well-defined ethical judgments favoring sustainable consumption, as shown in the following diagram.”

• Standards and labeling; • Tax policies; • Incentives and subsidies; • Awareness campaigns; • Specific education and training. The most effective approach, as regards this subject, lies in an integrated use of these instruments, through a partnership between several social actors: government agencies, companies, NGOs. In Portugal, there is still a long way to go in this domain and many are afraid of responsible consumers, which are sometimes mistaken for extreme activists (which also exist) or are systematically in suspicious of their intents which are attributed to unconfessable interests. As a result, it is still necessary to make known that the responsible consumer is the best ally of each company intending to strategically assume its triple bottom-line objectives and, therefore, to leverage the construction of a new competitive advantage that is really sustainable.

by Fernando Ribeiro Mendes, ISEG e RSE Portugal.

| Editorial

“In Portugal, there is still a long way to go in this domain and many are afraid of responsible consumers, which are sometimes mistaken for extreme activists (which also exist) or are systematically in suspicious of their intents which are attributed to unconfessable interests. ”

Marrakech Process

Mohan Peck

| Im))pactus November | January 2009

Senior Economic Affairs Officer Division for Sustainable Development Department of Economic and Social Affairs United Nations

What is the Marrakech Process on Sustainable Consumption and Production?

It is a global process to support regional and national initiatives to promote the shift towards sustainable consumption and production (SCP) patterns. The process responds to the call of the WSSD Johannesburg Plan of Implementation to develop a 10-Year Framework of Programmes on Sustainable Consumption and Production (10YFP). The Commission on Sustainable Development (CSD) will review the theme of SCP during its 2010/11 two-year cycle. UNEP and UN DESA are the leading agencies of this global process, with an active participation of national governments, development agencies, private sector, civil society and other stakeholders. The first international meeting devoted to developing the 10YFP took place in Marrakech, Morocco, June 2003, therefore it is called the “Marrakech Process”.

Phases of the Marrakech Process

The development of the 10-year framework of programmes consists of the following phases: a) Organizing regional consultations to promote awareness and identify priorities and needs for SCP; b) Building regional strategies and implementation mechanisms with regional and national ownership; c) Implementing concrete projects, programmes and initiatives at the regional, national and local levels; d) Monitoring and evaluating progress and exchanging information and experience at the international level. e) Elaboration of technical inputs on a 10YFP on sustainable consumption and production to the UN Commission on Sustainable Development at its 18th and 19th sessions.

Regional Consultations & Strategies

More than 12 regional consultations were held between 2003 and 2008 in Africa, Asia-Pacific, Europe, Latin America and the Caribbean, North America and the Arab States, during which each region identified its needs and priorities in terms of SCP. The development of regional strategies is the main outcome of these regional consultations. The “African 10-Year Framework of Programmes on SCP” was launched in May 2006 with the institutional support of AMCEN, NEPAD, the African Union, UN ECA and UNEP. Latin America has also developed its regional Strategy on SCP and has officially set up a Regional Council of Government Experts on SCP supported by the regional Forum of Ministers of Environment. Europe has committed to a new Action Plan on SCP in 2008 as a response to the EU Sustainable Development Strategy . Asia Pacific is implementing a regional Green Growth Initiative. The “Marrakech Process” is also supporting key emerging economies in promoting SCP. National roundtables on SCP have been organised in China (May 2006) and India (September 2006). Two more will be held this year, in Brazil and South Africa.

International Review Meetings

International review meetings are organised every two years under the Marrakech Process in order to report on progress, share experiences and coordinate international cooperation to develop the 10YFP. With the Costa Rica meeting (September 2005), the emphasis has shifted from consultation and priority setting to implementing concrete SCP projects; launching new mechanisms for implementation such as: the Marrakech Task Forces and the Cooperation Dialogue with Development Agencies. The Third

Marrakech Task Forces

In order to support the implementation of concrete projects, and to focus on specific themes of SCP, the Marrakech Task Forces have been created with the participation of experts from developing and developed countries. The Marrakech Task Forces are voluntary initiatives led by governments which – in co-operation with other partners – commit themselves to carrying out a set of concrete activities at national or regional level that promote a shift to SCP patterns. So far, seven Task Forces (TF) have been created: • Cooperation with Africa (led by Germany), • Sustainable Products (led by United Kingdom), • Sustainable Lifestyles (led by Sweden), • Sustainable Procurement (led by Switzerland), • Sustainable Tourism (led by France), • Sustainable Building and Construction (led by Finland), • Education for Sustainable Consumption (led by Italy). The Task forces are carrying out a range of activities such as: an eco-label project in Africa; national action plans on SCP; developing tools and supporting capacity building to promote sustainable public procurement; projects and networks on product policy to encourage more innovation on product eco-design and performance; studies on best policy practices on sustainable buildings focusing on energy efficiency; promotion of sustainable lifestyles and education by implementing several demonstration projects and developing policy tools and strategies for sustainable tourism.

Cooperation Dialogue with Development Agencies: Common agenda on SCP and poverty reduction

Another important mechanism for implementing SCP is to work together with development agencies and regional banks. The Cooperation Dialogue aims at highlighting the contribution of SCP policies and tools to poverty reduction and sustainable development, and better integrating SCP objectives in development plans. SCP can contribute to the achievement of the UN Millennium Development Goals. For developing countries, SCP offers new opportunities such as the reduction of production costs increased industrial competitiveness, pollution prevention and reduction of environmental damage, creation of new markets and job generation, improved management of natural resources, and the decoupling of economic growth and environmental degradation.

National Strategies and Indicators on SCP

One of the key recommendations coming out of the regional and international meetings of the Marrakech Process is the development of non-prescriptive guidelines to support the implementation of national SCP action plans. A Manual has been drafted by UNEP that provides practical steps for the development and monitoring of national SCP strategies and indicators to monitor progress toward SCP. The manual also explores the possibilities of including SCP in the existing national strategies such as Strategies on Sustainable Development and Poverty Reduction Strategies.

Advisory Committee to the Marrakech Process

The main responsibility of the Advisory Committee is to assist in the development of the 10YFP, giving guidance to UNEP and UNDESA in this regard and providing feedback and inputs on draft proposals of the 10 YFP. Its members collaborate to find ways and means to support the adoption and successful launch of the 10YFP at the UN Commission on Sustainable Development during its 18th and 19th sessions (2010/11). It also helps to define adequate ways and means to effectively engage global stakeholders, SCP networks and initiatives for the development and future implementation of the proposed 10YFP.

UN Inter-agency Network on SCP

This network is just being launched. Its purpose is: i) to increase awareness on the Marrakech Process and its activities among the UN Agencies; highlighting their potential role and the benefits of getting engaged in promoting and implementing SCP; ii) involving the UN Agencies in the formulation of the 10-year framework of programmes (10YFP) on sustainable consumption and production (SCP); iii) building cooperation and partnerships on SCP among the UN Agencies and a broad range of stakeholders (governments, development cooperation agencies/banks, business, NGOs, Task Forces, etc); and increasing the coordination and coherence of SCP activities within the work programmes of UN agencies through sharing of information.

| MARRAQUECHE PROCESS

International Expert Meeting (Stockholm, June 2007) reviewed progress made by the Marrakech Process, and started drafting the key elements for a 10YFP on SCP. The meeting built on new initiatives and involved more actively business and civil society.

For further info

http://esa.un.org/marrakechprocess http://www.unep.fr/scp/marrakech

Contact

United Nations Environment Programme Division of Technology, Industry and Economics, Paris. • Adriana Zacarias, azacarias@unep.fr, tel: +33-1-4437-3002 United Nations Department of Economic and Social Affairs Division for Sustainable Development, New York • Mohan Peck, peck@un.org, tel: +1-212-963-8799

by Mohan Peck , Senior Economic Affairs Officer , Division for Sustainable Development , Department of Economic and Social Affairs , United Nations.

Task Forces

| Im))pactus November | January 2009

Marrakech Process Task Forces Outside the Marrakech Process were created task forces (Governments volunteer initiatives that join experts from developed and developing countries: organizations, NGOs, companies, etc.) which by means of partnerships have committed themselves to undertake national or regional concrete activities to promote a sustainable consumption and production. They support the implementation and empowerment of several projects and are coordinated by a single country. In general, task forces have between 5 to 10 involved governments, which are distributed in to geographic balance. Their activities may be related to: technical assistance, empowerment, technology and know-how, and financing. So far, there are 7 task forces and several others are being prepared: COOPERATION WITH AFRICA

Objective: to provide specific support to the activities and programs of the 10-year work plan for Africa in what concerns sustainable consumption and production. This implies encouraging the different national governments to incorporate the concepts of sustainable production and consumption. Projects focusing three areas: to study the possibilities of achieving a sustainable consumption and production in Africa; to develop an eco-labeling scheme; to develop and implement sustainable consumption and production plans at national level.

Country leading this task force: Germany Some of the best practices in Africa were gathered by the German Ministry that is responsible for this task force: http://esa.un.org/marrakechprocess/pdf/Best_Practice_English_TF_Cooperation_Africa.pdf Opportunities and challenges of eco-labeling in Africa: http://esa.un.org/marrakechprocess/pdf/Ecolabelling_Brochure.pdf Additional info: http://esa.un.org/marrakechprocess/tfcooperationafrica.shtml

EDUCATION FOR SUSTAINABLE CONSUMPTION

Objective: to introduce the subject of sustainable consumption and production in education to produce a change in the way of thinking, generating a strong and constructive environmental conscience. Projects/Activities: to collect best practices; to develop guidelines or policies regarding the introduction of sustainable consumption education; to set evaluation and monitoring indicators; to develop links and synergies with other task forces. Country leading this task force: Italy Additional info: http://esa.un.org/marrakechprocess/tfedususconsump.shtml

SUSTAINABLE BUILDINGS AND CONSTRUCTION

Objective: to promote energy efficiency, energy saving; to promote renewable energy; to develop policies and legislation. Projects/Activities: to research and publish the best practices; to develop a list to familiarize political decision-makers with sustainable construction practices; to disclose the best policies and practices. Country leading this task force: Finland Additional info: http://esa.un.org/marrakechprocess/tfsusbuildings.shtml

SUSTAINABLE PRODUCTS

Objective: to search for priorities and opportunities to cooperate and emphasize the innovation of eco-products; to promote the transparency of processes for an improved performance of products. Projects/Activities: to promote products with low consumption of energy, water or other resources; to use less toxic substances and to produce less problematic waste; transparent production processes that provide policies and regulation for the industry, encouraging the investment in innovation and reduction of costs; more international cooperation. Country leading this task force: United Kingdom Additional info: http://www.itfsp.org

SUSTAINABLE LIFESTYLES

Objective: to promote sustainable lifestyles, where people live in harmony with the environment and to develop strong and socially cohesive communities. Projects/Activities: to gather the best practices and to replicate them; to raise sustainability awareness in business; to facilitate the access of decision makers to sustainable lifestyles; campaigns in Brazil and China to develop sustainable communication strategies; to promote sustainable consumption patterns around the world through workshops and other means of communication. Country leading this task force: Sweden Additional info: http://esa.un.org/marrakechprocess/tfsuslifestyles.shtml

drivers for consumption patterns and lifestyles Technological

. Innovation . Infrastruture . General â&#x20AC;&#x201C; purpose technologies . Product development

Social

Psychologial

. Emotions & Desires . Sense of control . Decision-making . Identity construction . Needs

Consumption

Political

. Growth model . Consumer protection . Information provision . Product quality, health and safety . Environmental demands

SUSTAINABLE PUBLIC PROCUREMENT

. Institutions & Values . Family & Friends . Education . Social class . Meaning & Symbolism . Fashion & Tastes

Cultural & Historical

. Cultural differences . Historical trends . Religion

Source: fact sheet from the Environment Swedish Ministry June 2007

Objective: to promote and support the implementation of sustainable public interventions, developing tools and abilities in developed and developing countries which lead to an increase in sustainable products and services. Projects/Activities: to develop tools for this type of public procurements; to facilitate the dialogue between stakeholders and countries; to promote through assistance, studies and policies. Country leading this task force: Switzerland Additional info: http://esa.un.org/marrakechprocess/tfsuspubproc.shtml

SUSTAINABLE TOURISM

Objective: to promote an environment friendly tourism that helps to preserve natural heritage and biodiversity; to respect communities and their socio-cultural history, preserving their cultural heritage and values; to ensure the economic viability of projects thus providing socio-economic benefits to every stakeholder. Projects/Activities: to raise awareness regarding the climate change impact of Tourism; sustainable coastal Tourism; to promote cultural heritage has an asset for sustainable tourism; communication campaigns for sustainable holidays; to capacitate small and medium-sized tourism companies; the Green Passport Campaign ( http://www.unep.fr/greenpassport ) to raise awareness amongst the tourism community. Country leading this task force: France Additional info: http://esa.un.org/marrakechprocess/tfsustourism.shtml

| TASK FORCES

Economic

. Growth & Competition . Productivity & incomes increase . Reduction of prices . Marketing & Advertising . Utility maximisation

Practical Examples

| Im))pactus November | January 2009

On the Way to a Sustainable Planet: The Marrakech Process Stories 2 practical examples

Marrakech Process Task Force on Cooperation with Africa Towards A Regional Ecolabelling Scheme With environmental requirements increasingly used to define commercial relationships, meeting strict standards is becoming an imperative for producers in Africa. Plans are underway to create an African ecolabelling scheme that would integrate environmental and health-related standards into the design and production of African products. Once in place, companies around the region would be able to apply for certification that their products had met the continent’s best environmental standards, helping them to penetrate large – and increasingly savvy – consumer markets, both in Africa and elsewhere. Spearheading those efforts is the Task Force for Cooperation with Africa, a seven-member team of Governments, United Nations agencies and organizations working to develop a policy framework to cover pillar sectors such as forestry, agriculture, tourism and textiles. The plans stand to impact everything from the leather shoes we wear, to the scarves we drape to the juice we drink to get a start on our day. “The main goal of the African Ecolabelling Scheme is to increase the access – and competitiveness – of environmentally friendly African products in regional and international markets,” says Ulf Jaeckel, a German Government official who is chair of the Task Force. “The ecolabel project is an innovative part of the team’s broader involvement in fostering sustainable consumption and production in Africa.” Generally speaking, an ecolabel is a voluntary trademark awarded by a third party to products deemed less harmful to the environment than other products within the same category. As a market-based tool, it stimulates the supply and demand for products with a reduced environmental impact. If applied to the African forestry sector, for example, which supplies upscale buyers in Western Europe with high-quality flooring and furniture, an ecolabel would

certify that wood had been harvested in a sustainable manner, without the use of destructive clear-cutting practices. It would also show that forests had been managed using strict social criteria that respected indigenous communities. Educating the consumer in this way both meets demand for such information, and protects precious resources and lifestyles, a huge consideration for subSaharan Africa, where more than 59 per cent of the population depends on woodlands for survival. Applied to several sectors, a regional ecolabel would inform consumers about greener choices. For producers, it could offer marketing advantages of enhanced reputation and branding, and distinguish exports in booming international markets for environmentally preferable products. Implementing the scheme in Africa in coming years would depend, in part, on adapting existing infrastructure and institutions, explains Josephine Bauer, who works in the United Nations Environmental Programme’s Regional Office for Africa in Nairobi, Kenya. Among the challenges: a need for technical expertise and increased financial muscle. Despite such constraints, the plans have been endorsed by the African Union. “That gives us opportunity to proceed,” explains Mr. Cleo Migiro, a leading member of the African Roundtable on Sustainable Consumption and Production, which is involved in the Task Force. “At the political level, this is an accepted way of moving.” The scheme has also received support from the African Ministerial Conference on the Environment, an association of African environmental ministers who discuss plans to promote environmental protection. Other Task Force members include Germany’s Federal Environmental Agency; Belgium’s Ministry of Foreign Affairs, Foreign Trade and Development Cooperation; UNIDO; UNEP and the Wuppertal Institute Collaborating Centre on Sustainable Consumption and Production.

| PRATICAL EXAMPLES

Marrakech Process Task Force on Sustainable Tourism Green Passport Campaign Attention, travelers: Are you thinking about the size of that carbon footprint trailing your suitcase? Don’t fear.

development under the Marrakech Process. To launch many of its efforts, the team chose the historic town of Paraty, Brazil, famed for its diverse cultural traditions and 18th century architectural treasures. Beyond distributing communications materials, organizers facilitated workshops with the entire community to localize the campaign’s global message to be aware of – and minimize – the travel footprint.

You can now make your travel habits more sustainable with the help of a little green passport, the centerpiece of a global campaign recently launched by the United Nations Environment Programme, the French Ministry of Ecology, Sustainable Development and Spatial What started as a discussion to attract tourists quickly evolved into Planning, and the Brazilian Ministries of Environment and Tourism. social debate on how to preserve the area’s indigenous cultural heritage. “They know what they want, and what they don’t want, The Green Passport Campaign, unveiled at the Berlin Tourism Fair in March, is introducing tourists to ways they can make each part of from tourism,” says Mr. Devanlay. their trip a sustainable activity: one that conserves natural resources, Brazil had expressed an early interest in hosting the project, and and respects the economic and cultural development of host now hopes to replicate it in other parts of the county. Campaign countries. organizers plan to start similar projects around the world, including in the Mediterranean region next year. The organizers are using all means to get the word out, including through an easy-to-use website, available in English, French and Portuguese, that lets a user flip through a virtual passport containing International tourist arrivals reached almost 900 million in 2007, tips on what to pack, how to fly and get around in ways that reduce and are estimated to hit 1.6 billion by 2020, according to the World Tourism Organization. Tourism is among the largest categories of environmental harm. international trade, with volume equaling or exceeding that for oil, The website is loaded with reminders to choose responsible service food and car exports, depending on the year. providers that have a history of fair wages, limit energy use on the road and in hotels, and buy locally prepared food and souvenirs, instead of imports. There are even sections for posting individual travel tips, taking a climate quiz, and downloading a green banner to display on a personal blog or trendy MySpace profile. “This is a friendly way to learn about your impacts when you travel – and how to change them,” explains Thibault Devanlay, a French government adviser and leader of the Task Force on Sustainable Tourism, which initiated the project in 2006 to promote sustainable

Ethical Consumerism

Rob Harrison

| Im))pactus November | January 2009

Editor of the UK’s Ethical Consumer Magazine

the future of ethical consumerism “The 21st century will be the century of ethics, or it will not be at all.” André Malreaux There is nothing like the near collapse of the international banking sector to focus the mind on other ways of managing human societies than one dominated by profit-seeking corporations. Is it likely that a world filled with local ethical banks would have become caught up in the frenzy that laid the foundations of the current recession? They simply do not have that greed for ever greater bonuses and dividends so lodged at their core. Quite rightly, the collapse is leading to a much wider questioning of the whole game plan of international capitalism....which is where ethical consumerism comes in. On one level ethical shopping is about delivering practical solutions to immediate problems such as illegal logging or poverty in coffee-growing regions of the world. On other level it is about having a vision of the future....one that offers a different ideal to the standard business-as-usual model dominated by profit-seeking corporations. Ethical Consumer magazine is unusual in its ratings of ethical products in that it takes account of the wider activities of the companies that make them. It focuses on trying to give consumers a deeper picture which allows them to act, if they wish, in support of organisations which are not purely profit driven in the usual way. What would the world be like if the biggest clothing companies were exclusively Fairtrade and the biggest supermarkets only sold organic products? Zero carbon housebuilders could replace the usual property developers and energy could be produced by companies refusing to use anything other than renewables? Could the simple language of profit and personal gain be replaced by one

which cherished and measured other values like sustainability and the common good? Might this affect how people thought and behaved towards each other in more fundamental ways?

Ethical Consumer magazine

One of the reasons why we were attracted to the Ethical Consumer project in the 1980s was that it appeared to address a ‘structural flaw in capitalism’. Although aid was providing poverty relief in the South and government regulation was taming some polluters, there was an underlying concern that such approaches were treating symptoms rather than causes. In a global market, companies were simply relocating to countries without costly pollution controls or continuing to prop up oppressive regimes which sold them mineral rights at knock down prices. Then, as now, there was something about the way markets were working that seemed to be rewarding the least ethical producers and punishing the best. There was a pervading sense of system failure. Addressing the culture of ‘price-only buying’, though an apparently Quixotic task, appeared to go to the heart of some of the systemic problems we were observing. If the majority of consumers were asking more questions than just ‘how much is it?’, then the tendency to reward the most efficient employer of child labour simply melted away. However, Ethical Consumer magazine began life in the heyday of Thatcherism in the UK. The language of price was everywhere, and in the ascendancy. Previously state-owned companies were being privatised and markets were cheered on as they began to colonise new areas of life such as pensions, education and healthcare. And with the tendency for markets to focus on price, the language of ethics or social values was becoming progressively eroded from

day-to-day discussions in these subject areas. On the positive side though, EC was not alone in its identification of these systemic problems. It was part of a broader movement which was beginning to counter the tendency for ethics to be eroded in every sphere occupied by business and economics.

‘The Corporation’ which articulated afresh the pathologically destructive nature of profit maximising behaviour. [4] At the same time, and arguably as a consequence, there has been a move by big business into ethical markets. Perhaps personified for readers in the UK by the takeover of Green & Blacks by Cadbury’s, it is this change above all the others which makes dominant market shares for ethical products most likely. Big business has the resources and access to markets to deliver high quality, competitively priced, ethical products quickly around the world. Of course, the jury is still out as to whether this change is unequivocally a good thing, and much of our future planning here at ECRA is on how best to respond to these developments.

Big government

To date, the UK government has been at least ten years behind its own citizens when it comes to incorporating ethics into its own purchasing decisions. In 2001 ECRA published its ‘Manifesto for Change’ which outlined in detail some of the changes we believed the UK government should make to help us move towards a more ethically-orientated society. [13]

Measuring growth

Over the years, we have compiled a good deal of survey data to show, perhaps surprisingly, that the majority of consumers claim to be acting ethically in markets at least some of the time. [1] Nowadays we have an annual measurement of the state of the UK’s ethical markets compiled by the Co-op Bank’s Ethical Purchasing Index. And although it shows £25.8 billion of ethically directed money (up from £9.2 billion in 1999), the base-line is low and in most markets ethical products account for less than 5% of sales. [2] Nevertheless, surveys around the world are still showing very widespread interest in ethical consumer issues and projections of dominant ethical markets are beginning to come from the least expected places. In November 2005, for example, a spokesperson from Kraft General Foods (the world’s second largest food Multinational) predicted that within 10 years, 60-80% of the European market for coffee would be taken up by products with independent certification for fair trade issues. [3] So are we reaching a ‘tipping point’ where take up of the ethical culture will suddenly increase exponentially, or do ethical products look destined to remain niche? There are four key factors which point to cultural dominance for ethics and which are worth highlighting: big business, big government, big consumer and peak oil.

Big business

In the last ten years there has been a sea-change in public understanding of the damaging behaviours of big business. This has partly emerged through high-profile anti-globalisation (now better known as global justice) protests. Other noteworthy cultural interventions include Joel Bakan’s excellent film and book

In the manifesto, and at countless subsequent consultations, we have argued that greening the government’s own supply chains should be an essential pre-cursor to exhorting consumers to act sustainably. How can consumers be expected to take sustainable consumption seriously when it is so obvious that government itself does not? At last there appears to be some changes afoot in government ethical purchasing both here and in Europe. Important changes here and at European level are emerging which strip away the absurd legal obstacles to ethical procurement which have hindered development for so long. The cultural change we are talking about has clearly led to a position where no-one is now prepared to stand up and argue, as they did in the Thatcher era, that ethical procurement is a pernicious obstacle to free trade. Whatever happens, ethical procurement will increase substantially in Europe over the next three years which in turn will act to move big business even faster in the right direction.

Big consumer

The other significant change to have taken place since our last review has been moves by Europe’s big consumer organisations to introduce ethical consumer-style corporate ratings into some of their buyers’ guides. “The first to break ranks was the Austrian VKI with its publication in October 2000 of an ethical rating of sports shoe companies in its magazine Konsument. The rating made front page news in the Austrian press and brought a flurry of responses from companies and consumers alike”. [7] With often more than half a million members each, such consumer organisations can exert much more market pressure than humbler

| ETHICAL CONSUMERISM

Finally, although a lot of CSR (corporate social responsibility) is still greenwash, there has been a rapid development of ideas and tools which address the idea of CSR at quite a profound level. With some companies now ten years into CSR programs, environmental campaigners with impeccable pedigrees – like Jonathan Porritt – are now arguing that there is a significant difference between the best and worst multinationals in relation to ethical issuess. [5] The old certainty – that all big business is equally bad – is becoming less and less tenable, making ethical purchasing an even more effective tool for change.

| Im))pactus November | January 2009

Ethical Consumerism

publications such as Ethical Consumer. In addition, Europe’s consumer groups often co-ordinate research and publishing through a joint body (the ICRT). In February 2002, the consumer organisations of Austria, Denmark, Finland, Norway, Sweden and Iceland simultaneously published a report into the ethical behaviour of Jeans manufacturers – thus concentrating pressure for change. [7] The Dutch consumer organisation Consumentenbond became an early leader in the field, with an undertaking to move towards integrating CSR relationships into all its reports. Since then much impetus has come from a group of four associations which includes Belgium, Portugal, Italy and Spain. This group has co-ordinated publishing in a range of studies including two into petrol and chocolate in 2005.[8] Also in 2005, Germany’s Stiftung Warentest burst onto the scene with ethical reports into detergents, salmon and walking jackets. Perhaps surprisingly one of the slowest off the mark has been the UK’s own Which? magazine. Although making occasional forays into ethical issues, it has appeared the most risk averse of the European groups. In time though, with these new cultural developments occurring everywhere, it will be increasingly difficult for mainstream consumer organisations to defend intellectually the continued publication of price and quality only reports. To do so fails to take responsibility for the environmental and social ‘externalities’ which such buying advice necessarily drives forward. So with a likely future where all these associations include ethical consumer ratings in their reports, the pressure for change will increase very significantly indeed.

Peak Oil

The last factor to discuss is the emergence of new arguments which suggest that very profound effects of the unsustainability of western consumer lifestyles lie, not far off in the future, but just around the corner. Jeremy Leggett for example, in his book Half Gone, suggests that increased demand and dwindling supply of oil will see energy costs rising enormously over the next five to ten years. [9] Not only would a petrol price of between Euro 10 and Euro 40 a gallon [14] force consumers into sustainable consumption decisions at a rate which moral exhortation could never do, but Leggett predicts that whole economies will be devastated with profound social effects in as little as four years time. If such events really are to occur, and we are already seeing some

evidence of significant fuel cost growth, it will increase the political stock of those in the environmental movement who have been predicting such outcomes for some time. This is, after all, what happened in the late 1980s following news of Chernobyl and Ozone depletion. Of course, with predicted social disruption and an atmosphere of scarcity, it appears that the new culture and language of ethics may be just in time. Indeed, there is some evidence to suggest that with the right cultural tools, a future of greater material scarcity could bring forth happier, more relaxed, more inclusive and community-focused societies. [10] Whether the next ten years brings forth a nuclear era, more biotechnology and nanotechnology, or simply continued gross injustice, people cannot lobby effectively for change if they are simultaneously funding their most pernicious opponents on their trips to the shops. For as long as markets remain globalised, consumers will need to look beyond price to prevent the most malign corporations from taking the driving seat and from ‘capturing’ democratic governments along the way. [11]

by Rob Harrison, editor of the UK’s Ethical Consumer magazine, charts the rise of ethical consumer behaviour. This article is an edited and updated version of a review by Rob Harrison of the development of ethical consumerism which originally appeared in Ethical Consumer, Issue 100, May/June 2006. For more information on Ethical Consumer magazine visit www.ethicalconsumer.org [1] Ethical Consumer magazine Issue 50 – The rise and rise of ethical consumerism. ECRA December 1997. [2]Co-operative Bank - Ethical Consumerism Report 2005 December 12th 2005. [3] Annemieke Wijn of Kraft Foods. Speaking at the TBLI Conference Frankfurt November 3rd 2005. [4] The Corporation. Joel Bakan, Free Press 2004. [5] Capitalism as if the world matters. Jonathan Porritt, Earthscan 2005. [6] ENDS Report 370 November 2005 – Morely rejects green procurement targets for councils. [7] Corporate Social Responsibility and the Consumer Movement: Rob Harrison, Consumer Policy Review: July/Aug 2003 Vol 13 No 4. [8] Phone conversation with Andrea Klag at the ICRT. 6/3/06. [9] Half Gone – Jeremy Leggett, Portobello Books 2005 [10] See for example Porritt at 5 above. [11] For a discussion of how companies ‘capture’ democratic governments, see Captive State. George Monbiot. Macmillan 2000. [12] André Malraux - was a writer, philosopher and French Minister of Cultural Affairs from 1958 to 1969. [13] The ECRA 2001 Manifesto for Change, Ethical Consumer issue 70, September 2001 and at www.ethicalconsumer.org/aboutec/manifesto.htm. [14] See for example figures on www.lifeaftertheoilcrash.net/ viewed 12/3/06.

| PRATICAL EXAMPLES

Responsible Europe

| Im))pactus November | January 2009

by bruno cachaço

Europe’s commitment to sustainable development is widely comprehensive, and publicly acknowledged and recognized. The European Union (EU) has several areas for action, within the environmental and social scope. The analyses, studies or other related work are an increasing reality, which demonstrates the practical work that has been developed by several commissions. The duty to inform, educate and spread the message to the European citizen is an inherent concern to an institution such as the EU, which tries to promote a new sector: Responsible Consumption. This article will focus on the work developed in Europe to promote a more responsible consumption and production. When we think about the challenges of sustainable development, we must link them to our lifestyle. The way we produce or consume has an impact, frequently a negative impact on the environment. As a consequence, the need to evolve to increasingly sustainable patterns of consumption and production is presently more urgent than ever. “The EU Sustainable Consumption and Production and Sustainable Industrial Policy Action Plan (July, 2008) tries precisely to establish a “dynamic framework to improve the energy and environmental performance of products and to encourage their use by consumers”. A series of EU and member-states policies (e.g. tax incentives to eco-products; to eco-design – ecological product conception; and to labeling systems) is complemented by this action plan that also aims to improve the information delivered to consumers through a more coherent and simpler labeling. “The challenge is to create a virtuous cycle: to improve the environmental global performance of products during their lifecycle, to promote and encourage the demand for more adequate production technologies and products, and to help consumers making better choices by means of a simpler and more coherent labeling.”

This plan includes the following actions: > Minimum requirements will be established for products with a significant environmental impact. Reference values for the environmental performance of products will be also established. Both of these schemes will be subject to periodic reviews. > Product labelling will be further developed and complemented as appropriate by an Ecodesign Labelling

Directive, providing consumers with information about the energy and/or environmental performance of products. > The energy efficiency and environmental criteria under the above mentioned schemes will be used to establish a harmonised base for public procurement and incentives provided by the EU and its member states. > A range of other actions to arrive at smarter consumption will also be undertaken. In particular, action will be implemented with retailers and producers to make their own activities and supply chains more environmental friendly. This will include raising the awareness of consumers and increasing their proactive role in this domain.

More Efficient Production

As regards production, the EU action plan will focus on the following three areas. The first one will focus on boosting resources efficiency, by developing tools that will monitor, benchmark and promote resources efficiency, taking into account a life-cycle perspective and including trade. At a later stage, targets will be set, based on environmental significance and on access to natural resources. The second area for action will be the support to technological innovation, according to which tools will be developed to monitor, benchmark and boost technological innovation. A European environmental technology verification scheme (voluntary) will be established to help to provide confidence in new technologies emerging on the market. The third area for action will be the enhancement of the environmental potential of industry, in the scope of which the EMAS (EcoManagement and Audit Scheme) will be significantly revised, to increase the participation of companies, and reduce the administrative burden and costs to SMEs. “Environmental industries contribute to improving the energy efficiency and environmental performance of the economy.” The Commission will review progress and report on the implementation of the Action Plan in 2012.

Informing consumers

Europe has also been conducting several surveys on consumption habits, and in all of these analyses there is a similar conclusion: the European citizen is willing, as a consumer, to change its consumption habits in order to achieve a just and eco-friendly society. However, only a minority is putting that determination into practice. This fact can be explained by a lack of quality information and knowledge, as

The European citizens and consumers are one of the driving forces of the economy, since those 493 million European consumers represent approximately 58% of Europe’s GDP. Therefore, it is natural to consider the European consumer as a driver for innovation and development of new products and services, due to its strength in exercising its preferences through consumption. In a modern and constantly changing economy such as the present one, it is necessary to provide tools for the consumer in order for him to be properly informed and at the same time protected. The EU political agenda on consumption for the period between 2007 and 2013 (EU Consumer Policy Strategy 2007-2013) intends precisely to promote “the values of justice, openness, solidarity, sustainability and transparency…” and has the following major objectives: > To enlighten and empower consumers, through correct information, market transparency and protection of their rights; > To promote the well-being of consumers in terms of price, choice, quality, diversity and safety. This well-being is at the basis of a smooth functioning of markets; > To protect consumers from risks and threats which they are unable to solve as individuals. The consumer’s confidence relies on this level of protection. In 2013, the European Union will assess this action and will know if this political agenda was well-succeeded. Success will be achieved if it is possible “to demonstrate with credibility to EU citizens that they may purchase anywhere inside the European Union – from a small shop to an online store – trusting that they are equally protected, not only from dangerous products but also from fraudulent businessmen; and also to demonstrate to every businessmen and SMEs that it is possible to sell their services and products at a global level, based on a simple set of rules”.

in conformity with traditional patterns of regulation and incentives. The challenge is huge. The EU has been struggling in order to provide consumers with a set of information and knowledge that allows them to consume in a more responsible way. It has develop the above-mentioned European Consumption Policy, it has issued several reports explaining the origin and risks of products, publications that explain how to decode the labeling and certifications of products, EUROSTAT surveys on consumption, notifications on dangerous products, information on consumer rights, as well as some information on basic consumer rights. Public and private organizations, as well as NGOs have had an active role in the promotion of responsible consumption, working sometimes jointly with the EU, or alerting it to this issue. NGOs play an increasingly important role, by disclosing, studying or effectively improving the development of sustainable communities. The European Committee for Social Cohesion (http://www.coe.int/t/dg3/socialpolicies/SocialCohesionDev/default_en.asp),

through the publication “Trends in social cohesion No.12 – Ethical, solidarity-based citizen involvement in the economy: a prerequisite for social cohesion”, focus three main issues: responsible consumption, fair trade and ethical finance. It becomes obvious the importance of involving citizens, and the relevance of initiatives by member-states. In this publication it is possible to notice that there are already consumption initiatives in 72% of the European Union’s countries, as well as regulation concerning this aspect in 48% of member-states. These initiatives are implemented at national, regional and local level.

Some examples The recognition of responsible consumption as a sector through statements issued by public authorities or by legislative proposals (e.g. the United Kingdom). Several regulations give legal support to the responsible consumption sector, through tax advantages, responsible labeling and financial support. In Czech Republic there is a law related to the evolution of sales and use of ecological products. The commitment of public authorities to this sector, such as the measures implemented by the Municipality of Munich, which has decided that certain products should be certified based on the Child Labor Convention.

Consumers’ duty of citizenship

We are witnessing an increase in consumers’ rights and duties of citizenship. The wide range of consumption options has also added responsibilities to consumers. We cannot forget that, in a certain way, this freedom of choice has also created increasing vulnerable consumers.

As regards Fair Trade, it is possible to find initiatives of this kind in 44% of member-states and related regulation in 24% of them. The European Union has already stressed the importance of this sector, by emphasizing the certification of fair trade products, by giving financial support, and support to fair trade activities, among others.

The need to develop a confident and responsible consumer culture has never been this big.

One can therefore conclude that several countries have already implemented initiatives promoting the accountability of consumers in what concerns their consumption options, while maintaining mechanisms of consumer rights protection through regulation.

We find ourselves in a changing and growing Europe. The present patterns of trade are completely different from those 10 years ago. We are presently living in a new technology age, in which Internet plays a differentiator role by allowing everyone to buy goods and services from all sorts of countries using the so-called e-commerce (that is, purchasing through the Internet). The EU claims that it is paying special attention to this new consumption paradigm, since it knows these new concepts are not

The following scheme intends to demonstrate the big differences between a conventional consumption model and a socially responsible consumption one. We can easily understand that the conventional model is outdated, since there are presently more actors that will have an important role to play in the promotion of this sort of behavior, namely the media, NGOs and governments.

| RESPONSIBLE EUROPE

well as by a lack of incentives. As regards these last issues, memberstates have a key role: reeducating consumers into achieving a social and environmental consumption responsibility.

Responsible Europe

| Im))pactus November | January 2009

“As to the impacts of consumption methods, it will be necessary to create references for consumers to associate to and for self-regulation. ”

To establish a new consumption model, the media will have to convey the message in a systematic and more global way; researchers and NGOs will have to establish consumption benchmarks; Governments will have to implement tax incentives that encourage the production of this type of goods and services, through adequate legislation; the financial sector will have to assume that social responsible investments are part of their business. This is a joint work, but citizens as consumers will always have the final responsibility, since they are the final users.

From a traditional consumer information model, which uses:

> Advertising by advertising agencies;

> Information in distribution channels and sites by producers and distributors;

> Tools to encourage consumption (tax incentives, credit cards, etc.) by governments and companies.

Future challenges

As to the impacts of consumption methods, it will be necessary to create references for consumers to associate to and for self-regulation. The products will have to have a social and environmental “passport”. The information on distribution channels and services will be mostly a responsibility of producers and distributors, leading to a possible new competitive market to which they might gain access to. Fiscal aid and incentives are key requirements at national and local level.

Good practices in a responsible Europe… Berlin’s “Fair” Bus

A bus containing information on responsible consumption – the MUTZ (Mobilen Umwelttechnik Zentrum) or Mobile Centre for Environmental Technology – has roamed the streets of Berlin, between 2003 and 2004. It exhibited several different brands and logos, such as the FSC (Forest Stewardship Council – sustainable forests) logo. Fair trade coffee was served to passengers and the association members shared good practices. The German parliament financially supported the MUTZ, together with many other sponsors.

we will change

To an advanced information model, on which: > The media play a key role in disclosing information regarding the world situation, increasing consumers’ awareness;

> NGOs and professors provide the concept of consumption impact;

> NGOs, producers and distributors provide

information on products’ lifecycle (more transparency); > The information concerning the sites and channels

where ethical and sustainable products are available is disclosed;

> Public authorities will be more actively involved in the promotion of responsible consumption;

> Appropriate legislation concerning this sector exists.

mutz.de

Fair Trade Coffee at Barcelona’s Town Hall In 2002, the Barcelona municipality has approved by unanimity a document stating it intended to use fair trade products in the Municipality departments. Automatic drink machines are presently being supplied with fair trade coffee. A campaign whose targets were municipal employees was also undertaken.

Solidarity Catering 26.000 children from Genoa (Italy) consume fair trade products: bananas, rice, cocoa, chocolate and fruit juice, at least once and a week. The project Solidarity Catering derives from a concept by the Genoa Solidarity Shop, which suggests that its fair trade products should be used in Genoa’s schools canteens.

Tuscany, Italy

In order to help companies to reconcile their economic competitiveness with sustainable development, the regional council has launched, in 2002, the website www.fabricaethica. it, explaining local SMEs how to adopt and implement social and environmental responsible measures. The following year they have gone further by creating the Regional Ethical Committee, which joins trade associations, employees associations and representatives of Social Economy. Thus, they say it is possible “to promote a debate concerning the real problems, amongst people that hardly ever contact each other”.

more information: http://www.coe.int/t/dg3/socialpolicies/platform/Observatory/legRespCon_en.asp http://ec.europa.eu/consumers/publications/index_en.htm http://ec.europa.eu/environment/index_en.htm http://www.coe.int/t/dg3/socialpolicies/SocialCohesionDev/default_en.asp by Bruno Cachaço, Sustentare.

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passionate about innovation

EU – Sustainable Consumption and Production

European Union

Emissions

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Extraction

Emissions

Waste

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Recycling

a W

ns io iss m E

Raw m En e

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source: EEA-ETC/RWM.

Consumption

Production

Emissions

d Pro r Se

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During an internal consultation, in 2007, (http://ec.europa.eu/ environment/eussd/pdf/scp_sip.pdf) by the European Commission, a large majority of respondents agreed with the need for action towards a more sustainable industrial policy and more sustainable consumption and production patterns. For respondents, the barrier to innovation was considered to be the lack of legislation and regulation, and there was strong agreement on the initiatives that need to be developed, namely: to make the supply chain more eco-friendly and influence consumer choices.

> To apply the philosophy of the lifecycle (Figure 1), which takes into account the impacts of every lifecycle stage during the production and consumption process; > To promote an efficient technology.

u vi cts ce s po rt

According to the European Commissioner, Stravos Dimas, “We are just starting to change to a system of sustainable consumption and production. Within 10 years, I believe that the environmental standards of a product will be a reality for European consumers.”

- encouraging a change in consumption patterns by means of goods and services with reduced energy and material intensity, without compromising the quality of life;

s iai er at y rg

‘’Changing Patterns: the UK Government Framework for Sustainable Consumption and Production”, which in general aims to: - Raise awareness regarding the lifecycle of goods or services, as well as resources and waste; - Work together with markets in order to identify fails and correct them; - Incorporate sustainable consumption and production patterns into every development policy; - Develop political measures to improve regulation; - Encourage innovation.

Sustainable Consumption and Production – Some key principles and challenges: > To improve quality of life for society as a whole without increasing the environmental degradation and without compromising the resources needed for future generations; > To cut off the link between economic growth and environmental degradation by: - reducing the material and energy intensity of present economic activities and by reducing emissions and waste during extraction, production, consumption and waste stages;

Emissions

In Lisbon, the European leaders agreed to transform the EU into “the world’s most competitive and dynamic economy” until 2010, as a consequence, several countries have been implementing their sustainable consumption and production programs. There are several examples, let us observe the one implemented in the United Kingdom:

There are more than 490 million consumers in Europe, and they play a key role in economic growth and job creation. The EU has another objective which is the promotion of consumption reliability in every country, and also the promotion of transparency and to find ways to better disclose a product’s sustainability.

Materiais Biomassa Energia

Consumption patterns, especially in most developed countries, have a direct influence on the environment, social welfare and economy and it should not be forgotten the clear difference between poor and rich countries and their opposite consumption patterns, and it is enough to bear in mind the expression “excessive consumption” to become aware that it does not come from a developing country! We need to consider consumption and production both as an opportunity and a challenge, to seek out resources’ efficiency and to unveil the technology and innovation that is needed to improve services.

“Consumers are the key players in the European economy.” Commissioner Kuneva (Consumer Affairs)

men tal sp Economi h cs ph er e

Several news throughout Europe have confirmed that the consumption has decreased during this Christmas and most consumers chose less expensive products. Consumption has a clear impact and influence in the economies of the European Union (EU) countries. The way we consume and produce is undergoing transformations, in an effort to achieve more sustainable consumption patterns. This is a well-defined objective inside the EU, through policies or good volunteer practices in Member-States.

Environ

| Im))pactus November | January 2009

Sustainable Consumption and Production

Figure 1. - Lifecycle chain, from extraction through production, consumption to waste

http://reports.eea.europa.eu/state_of_environment_report_2007 _1/en/chapter6.pdf

Towards a sustainable development –

ethical public procurement and responsible consumption cores do globo

The appeal to social responsibility of citizens, State and companies, through awareness-raising campaigns concerning environmental protection, responsible and ethical consumption, and social solidarity criteria are increasingly common. The limitation of resources whether they are natural – commonly perceived in climate change and desertification – or social – perceived in the increase of social and economic asymmetries – are compelling us to develop plans and practices which promote general welfare. “Public Consumption, Ethical Consumption” and “Responsible Consumption, Questions, Challenges and Practical Guide to a Responsible Consumption” are included in a project carried out by a partnership of Non-Governmental Organizations for Development, Cores do Globo, Cidac and Reviravolta, with the support of the Portuguese Institute for Development Assistance (IPAD). The project “Responsible consumption in Portugal: an ethical choice for responsible consumption” has lead to the development of tools aiming to facilitate the access to the implementation of practices and policies towards environmental and social sustainability at national and international level. “Public Consumption, Ethical Consumption” makes an appeal to the role of State as one of the biggest market consumers. The European

Cores do Globo is a Portuguese Association that works for the promotion of Fair Trade since 2001. The commerce of environmental friendly products that respect fair trade principles is their main purpose, although they act towards consumer’s consciousness. Details on the Association and their work (PT): http://coresdoglobo.org/cg_asso.html#inicio

| PORTUGUESE ASSOCIATION FOR FAIR TRADE PROMOTION

Portuguese Association for fair trade promotion

Commission estimates that, in 2002, total public procurement in the European Union reached 1.500 billion Euros, which represented 16.3% of its GDP [1] . Therefore, public procurement is seen as an important way to fight social and environmental unbalances, at local and global level, and the role of State as consumer becomes increasingly important as the main role model of ethical consumption. Ethical consumption is defined as being “a conscious consumption, in which the decision to purchase a product or service is based not only in quality and price criteria, but also in the human and environmental conditions in which they were produced and traded, as well as the human and environmental consequences of that purchase. This concept is based on the direct relationship between consumption patterns and worldwide poverty and exclusion situations” [2]. In fact, when the State acquires a product it is, just like any of us, not only satisfying a desire or need, but also participating in the social and environmental impact of that product, and it is up to it (us) to make choices that incorporate environmental and social values. Initiatives such as the National Strategy on Sustainable Development, approved by the Council of Ministers in December 2006, the Council of Ministers Resolution concerning Ecological Public Procurement for

Portuguese Association for fair trade promotion

| Im))pactus November | January 2009

“Responsible Consumption, Questions, Challenges and Practical Guide to a Responsible Consumption” confronts the common citizen with its decisive role in the implementation of a fairest and more balanced society.”

2008-2010 and the New Code of Public Contracts, are examples of the Cores do Globo will carry on its activities that aim to raise the awareness of the general public, schools and companies to the FT inclusion of environmental criteria, in practices and acquisitions by reality, as an economic alternative. For further information on the public entities [3]. activities by Cores do Globo, go to www.coresdoglobo.org. But, if on one hand environmental criteria are included, yet timidly, in the public and private procurement agenda, on the other hand social criteria are still, to a large extent, absent. The “Resolution on Fair Trade and Development”, approved in July 2006 by the European Parliament, has brought to the European political agenda the acknowledgment of the role of Fair Trade (FT) – an alternative to conventional international trade that allies economical to environmental and social criteria –, as promoter of the creation of the most fair opportunities for small producers from the south hemisphere, of poverty reduction and of a more sustainable development [5]. “Responsible Consumption, Questions, Challenges and Practical Guide to a Responsible Consumption” confronts the common citizen with its decisive role in the implementation of a fairest and more balanced society. Some of the mentioned examples are: the choice to socially participate, the preference for the consumption of FT products, habits of consumption reduction, reusing goods and services and recycling, as a last element in the chain of a responsible consumer. In 2009, Cores do Globo, in partnership with Quercus and the Instituto de Solidariedade e Cooperação Universitária (ISU), started the project Sustainable Territories, which intends to involve public and private entities but also the informal economy with the aim of implementing more sustainable and ethical consumption habits, practices and policies, together with the introduction of FT into their routines.

Other resources on Fair Trade in Portugal www.cidac.pt www.reviravolta.comercio-justo.org www.alternativa.comercio-justo.org www.cordetangerina.org www.modevida.com www.equacao.comercio-justo.org

by Alexandra Figueiredo, Cores do Globo. [1] In “Evaluation of Public Procurement Directives – Final Report”, at http://ec.europa.eu/ internal_market/publicprocurement/docs/final_report_en.pdf (December 2008). [2] Cidac and Lina Afonso, Consumo Público, Consumo Ético, Cadernos de Comércio Justo, nº 2, Project “Consumo responsável em Portugal: uma escolha ética para o consumo responsável”, Cores do Globo, Cidac and Reviravolta, with the support of IPAD, Lisbon, 2005. [3] Other examples are the Local Agenda XXI (http://www.agenda21local.info) and the Sustainable Cities project (http://www.cidadessustentaveis.info). [4] In this respect we quote, for example, the Fair Procura Project, lead by the European Fair Trade Association – EFTA (www.efta.int), which was started in September 2004, aiming to encourage European institutions and local authorities to increase their contribution to sustainable development, through the promotion of Fair Trade policies and practices in public procurement. At the same time, the ICLEI, Local Governments for Sustainability (www.iclei.org), with the support of the Fair Procura project published the Guide “Buy Fair”, which included guidelines for the implementation of Fair Trade in the European public procurement. We should also mention the Fair Cities (www.ciudadjusta.org) project.

PLASUS – NGO for Sustainable Development

PLASUS

NGO for Sustainable Development 1. The promotion of sustainable development is the main 3. According to the statutes of PLASUS its strategic reason for the recent creation of this Association. Why? activities are very broaden. Will there be a focus on any What were the reasons behind the creation of this NGO? particular economic sector? We are a group of men and women with different education backgrounds and professional experiences who are truly interested in the sustainability area and its multiple aspects. This fact has driven us all to attend, at the same time, the 2007/2008 edition of the Executive MBA in Corporate Sustainability, Business and Environment at the INDEG/ISCTE. During one year we have developed professional and friendship relationships that resulted in a potential that was worth to use in the development of a social change project, which is urgent to materialize. It is within this context that Plasus comes to life, founded by 12 people with professional careers linked to areas such as business management, business consultancy, journalism, environmental engineering, forest engineering, economics and marketing. That joint experience gave rise to a need to put into practice a project that would drive each one of us to actively participate in a fundamental cause such as Sustainable Development, in spite of each others’ careers.

2. Who constitutes the organization and what are your future plans? The first year will be, above all, a learning stage to asses the sector’s conditions and to establish national and international partnerships. But we expect to become, in the short term, one of the main references in the 3rd system, among entities operating to promote Sustainable Development, working in benefit of everyone.

The strategy that is being developed is based on a thematic approach, or according to an area of intervention in terms of Sustainable Development, that is, our approach will not be specific to a single Sustainable Development pillar, and it will not be exclusive to a single economic sector. Above all, we want to innovate, to develop new projects, to establish networks that can link and integrate different players, which work on this theme, in common actions/projects.

4. We have been witnessing a large increase of projects in social economy. How to you intend to make a difference? One of the ideas is to try and develop a scale economy among those projects. We believe that the secret will be in our ability to complement the already existing initiatives, to create synergies, to help to achieve the strategic objectives of this sector… We believe in differentiation, but by means of those things we are able to offer in terms of complementarity and that may promote the sector – integration is the most advantageous path to us all.

5. How will you promote the approach of companies to the third sector? Aren’t they exclusively concerned with their image and respective promotion? The third sector acts like an incentive to change, through the impact of its involvement ability.

| PLASUS - NGO FOR SUSTAINABLE DEVELOPMENT

Sustainable Development Portuguese Association

| Im))pactus November | January 2009

PLASUS – NGO for Sustainable Development

“In fact, there are still some companies that address sustainability for the benefit of their institutional image. Nevertheless, we consider that fact as an opportunity for the 3rd sector to innovate and find ways to demonstrate that it is not enough to have a more ecological or responsible image.”

It is necessary to develop medium and long term solutions, involving companies, since the efficiency and effectiveness of the applied resources will be greater.

7. The current world crisis may act as a driver for a change in mentalities, as regards companies and citizens?

In fact, there are still some companies that address sustainability for the benefit of their institutional image. Nevertheless, we consider that fact as an opportunity for the 3rd sector to innovate and find ways to demonstrate that it is not enough to have a more ecological or responsible image.

With the appropriate incentive in the right path, we believe it might be so. Crises are opportunities to change, but that change isn’t always in the right direction.

We are obviously going through a period in which companies face strong financial restraints, but on the other hand it is throughout crisis periods that new models are found, others are build up and some others are given up. And that is the role we assume, to develop and build up Sustainable Development.

6. 2009 will be the “European Year of Creativity and Innovation”. Do you have already some projects on the agenda? What about the cooperation with other NGOs or companies? How will you address this issue, proposed by the European Commission? At the end of January, we will be presenting our first project. It focuses on the development of a program on Climate Change, involving other NGOs, as well as national and international government organizations. It is a project with a major sense of opportunity due to its positioning, not only as regards the theme but also at institutional level, and its starting point will be a seminar that will take place in the following month of May. Soon we will reveal more details. As regards this theme we haven’t developed anything specific, but these are two features that are part of the energy we want to put into our projects.

8. Should entrepreneurship and innovation act as a response to this crisis? Isn’t that a too high risk? What should be the role of public organizations and the individual citizen? Public organizations should facilitate, accept and promote the initiatives from civil society. Entrepreneurship and innovation are in itself a process of change, and they result of a will to change. If this crisis generates an opportunity to change. Why not? The key question is what type of innovation we want to undertake? One of our drivers lays in the fact that we want to demonstrate that it only makes sense to undertake something that is globally sustainable to society, in a long term perspective.

9. Several studies reveal that consumers are willing to change their consumption habits, making them more sustainable. How do you intend to address the responsible consumption theme? How do you believe this issue should be promoted? It should be promoted by companies through the products they have to offer but also through examples of behaviors transmitted by their brands.

The situation which the American automotive industry is now facing reflects a wrong strategy based upon reacting to consumers attitudes. At present, this industry is obsolete in such a way that it becomes useless any sort of aid package. Toyota was proactive, since by inducing a consumption alternative it was able to develop its own market, developing a sustainability path to the market. The oil price increase and Climate Change policies have done the rest. There is a mistaken idea that it is the demand market that dominates the offer market. But it is inside companies that lays the ability to change paradigms and to step up to another level as regards market relationships. The key issue is to know how companies can accomplish this. At this regard, Plasus wants to have a word and play an important role.

10. NGOs and the media have an increasingly important role as to the information that is disclosed to citizens. How will they communicate with the individual citizen, promoting its pro-activity and social responsibility? We haven’t decided exactly what will be the strategy that will be following as to the communication with the general public. But we are aware that, above all, the individual citizen needs to feel that what is being communicated is true and that the information he is receiving is impartial and complete. Therefore, the credibility of information will be our main criteria.

“There is a mistaken idea that it is the demand market that dominates the offer market. But it is inside companies that lays the ability to change paradigms and to step up to another level as regards market relationships”. To communicate practical solutions will be our main objective.

11. Do you intend to operate in developing countries? Will you operate strictly has a bridge between them and the companies? How will the “platform of knowledge and cooperation transfer” work? This aspect will be supported by the development of a cooperation network among universities from several countries, according to the themes covered. The bridge to companies will be accomplished, at a first stage, through the support they will provide to the development of training and researching programs at those universities. At a second stage, companies will be not only a place for the integration of finalist students, but will also benefit from the results achieved in academic researches. The aim is to stimulate, with the direct support of companies, the academic and vocational education in developing countries, while promoting the use the acquired knowledge in local economic activities, thus socially benefiting its own Community by generating local development. Our activity will be articulated with CPLP and IPAD and, of course, with the main existing NGOs in those countries. by Bruno Cachaço, Sustentare.

| PLASUS - NGO FOR SUSTAINABLE DEVELOPMENT

Companies should take the initiative. They must take the first step to change their production processes and their business models. In the long term, it is their survival that is at stake.

QUERCUS

Susana Fonseca

| Im))pactus November | January 2009

Quercus

Consumption:

threat or opportunity?

Talking about responsible consumption implies to be familiar with the concept of sustainability. A responsible consumption takes into consideration the three pillars of sustainable development, that is, considers the environmental, social and economic aspects. Although the concept of sustainability is based in the balance among the three above-mentioned pillars, and despite the economic pillar has always been the most privileged one, the fact remains that, as it is acknowledged by the European strategy on sustainable development, the environmental pillar ends up being the most limiting one. This overweight of the environmental pillar is easily understandable when we examine the nature of the human species, as well as the impacts resulting from its actions. The human species is not included in the category of productive species. In fact, it is only able to transform what other living beings produce, or resources that exist already. Since humans are a consuming species, it becomes easy to understand our total dependence on what we are able to find and mobilize around us. For a long time our consumption tended to escape unnoticed, yet the population increase and, above all, the achieved capability and intensity of exploitation lead us to easily perceive that the environmental pillar is the supporting base of human society and, therefore, the limiting feature to its development. The global warming issue is probably one of the most clear in demonstrating the interconnection between environment, society and economy. Climate change, which can lead to floods or droughts, is a fine example on how a change in the environmental balance may lead to serious social and economic consequences. The interconnections between biodiversity loss and social and economic aspects are not as evident to most people, but global warming, in spite of being one of the most clear examples, is far from being the only one. The way we explore the soil, water, oceans and forests is presently having visible impacts in the social and

economic balance of each region. The externalities related to the exploration of resources and others, which are more difficult to determine, such as pollution, the inability to perform vital biological functions (e.g. water purification or soil protection), the extinction of species (several are still unknown), the increase of certain diseases in humans, are good indicators on how the verification of the economic and social development has been based in a calculation error. Fortunately, investigations and studies are being conducted more and more frequently, allowing us to verify “our level of development” and enabling us to correct the calculation errors that are so common in our usual indicators. Even more interesting is the fact that some of these new approaches focus not only the environmental unbalance, but also the social dysfunctions that are increasingly widespread. One of the most interesting initiatives intending to address development in a more holistic way involves the Genuine Progress Indicator (GPI) as an alternative to the traditional, overused and overvalued Gross Domestic Product. A GPI analysis allows us to verify that, although wealth has been increasing in certain countries over the past decades according to traditional indicators, that is not the case while using GPI, that is, an indicator that accounts for the wealth produced in each country but “subtracts” some factors, such as: costs with environmental issues such as pollution or resources’ destruction, costs with health, costs with crime fight and costs related to divorce or other family-related issues. But this indicator also introduces factors in its accounting that may contribute to a genuine development of societies, that is, features such as volunteer work or family care. On the other hand, the ecological footprint is a new and relevant indicator that enables us to broadly understand the true impact of our daily decisions in the global environment, whether they are related to our diet, lifestyle, mobility, etc.

Despite its focus on the environmental pillar, the ecological footprint continues, nonetheless, to draw the attention to social and economic inequalities among different worldwide nations, even if in this case they are expressed in terms of consumption patterns and the percentage each nation is consuming. As it is known, if there is a percentage equally divided by everyone who is entitled to it, we will end up with a percentage X available to each intervenient. But if there are inequalities in its distribution, we will end up with: X + Y for some and X – Y for others. At present, we know that one fifth of the world population is responsible for more than 80% of private consumption spending and that another fifth, in this case the poorest fraction, is responsible for only 1% of that same spending. Using the ecological footprint data, there are nations whose consumption patterns, if disseminated throughout the world, would imply the existence of 4 or 5 planets, according to their performance. In short, the consumption patterns in use in most developed countries and still being developed in transition countries are unsustainable, in the light of the carrying capacity of our planet. For many, the solution to this dilemma implies the introduction of new technology. One must learn how to provide the same level of comfort and well-being but using fewer resources. Several good examples on how it is possible to produce more with less or, at minimum, to produce the same using much fewer resources, can be pointed out. But, not only the results of many of these promises tend to be poorer than initially expected, but also if they were fully implement we would be incurring in a serious risk of maintaining unsustainable models, in the short, medium and long term. If not, let us consider the following aspects. It is great to count on more efficient vehicles that produce less greenhouse gases and other pollutants with major impact in human

health, such as inhalable particles. But unless there is a change in the automobile usage habits, by prioritizing public transport and trying to cut distances between all different places where people have to go on a daily basis, will we be able to have some real benefits? This need is especially strong in countries that are now beginning to gain economic power to increase their private vehicle fleet. If we insist in canalizing investment, as it happened in Portugal, for the construction of infrastructures and a social organization that encourages the use of vehicles, then all technological improvements will have been useless. The same could be said in the waste treatment area. It is sufficient to analyze what is happening in some of the countries that have most recently joined the European Union. The tendency to canalize investment to end-of-pipe solutions, such as incineration, appears at the top as one of the most desirable. What is worse is the way European funds are structured, since they support the development of large technology-based centralized solutions, but with little openness to more decentralized systems that are able to promote the hierarchy in waste management, which includes prevention (reducing and reusing), recycling and, only then, incineration or landfilling. These systems, in turn, also promote decentralized job creation and a more sustainable management of resources. In short, everything points that nothing or little has been learned with more developed countries which are now facing serious problems to manage their waste and reduce their ecological footprint. And also in this case, technology might be a bad adviser. Another example is caused by the risk of a normalization of behaviors that are unsustainable, such as the use of air conditioning (heating and cooling), generalizing and making it socially desirable to wear a t-shirt at home in winter or to wear a coat during summertime, in particular in countries with a temperate climate such as Portugal. Several studies conducted in a couple of Indian cities (but whose results would most certainly be similar in different contexts) have clearly demonstrated that a gradual disregard of traditional construction techniques of buildings has lead directly to an exponential use of air conditioning, which resulted in clear losses for the environment and in the financial capabilities of families, namely by holding back or even stopping investments in other key aspects of their development, such as education or health. To another level, to own fridges which are bigger, more efficient and encourage the concentration of frozen products or that push us into buying more things (since there is an bigger storage capacity), which end up deteriorating before being consumed (recent studies, in the

| QUERCUS

This indicator is more focused in an environmental approach, since its objective is to measure the impact and weight of our consumption over the planet’s biological capability to provide us with the required resources to maintain our “lifestyle” and to process the produced waste. It allows understanding, with the usual clearness provided by numbers, to which degree the consumption patterns assumed by a (so far) minority part of the population, yet desired by a large majority, are already unsustainable according to every viewpoint.

QUERCUS

| Im))pactus November | January 2009

“Assuming a responsible consumption attitude involves time. Time to think about our options and if they are really necessary. Time to read labels, to find about the real impacts of the things we consume in the environment (...)."

United Kingdom, have shown that approximately one third of food is wasted), is just one more way to use technology (yet more efficient) to normalize new habits that are not sustainable.

are explored and the goods produced. Places where the environment and human rights are frequently and repeatedly disrespected, and only due to that fact are we able to live in the abundance society that we presently know. Often due to lack of information we In short, technology might be an ally, but it should not be seen as the complain about the prices of products that come into the market as major element of change, in particular when not accompanied by a respecting the environment and human rights (fair trade, biological change in strategy. agriculture, organic cotton, European eco-label products, etc.), but we tend to forget that these are the ones with a fair price and all the To offset this situation, some movements are starting to emerge rest leave for others (in other regions of the planet, in other stages of with the objective of raising awareness as to the importance of life, to future generations) the payment of its true price. developing a different approach. An approach that allows, not only to reduce the pressure on the environment, but also to achieve Consumption is presently one of the main threats to our planet’s a true welfare. These movements are paying special attention sustainability, but it could also be one of the best tools to balance it. to the concept of sufficiency, of living a simpler life, using as The power each citizen has, through its options, is the best way to justification not only the respect for the natural limits of our planet, “regulate” the system. And the most interesting thing is that while but essentially, the desire to achieve a state of balance that may using our regulatory power we are, at the same time, improving lead to the reduction of anxiety and depression levels and also of our welfare, not to mention all the benefits to the common welfare dissatisfaction towards your lifestyle and the achieved results. associated to the assumption of a responsible consumption. There are no any losses. Only gains. In this context, we cannot stop asking Associated to this movement are several research works related ourselves why are we not able to do more. Probably this moment of to the problem of emotional balance in most develop societies. crisis we are currently experiencing could be the driving force to a Psychiatrists, psychologists and therapists intend to highlight new vision of what we really need to feel fulfilled. how a lifestyle filled with more peace of mind, time to relax, to play, to talk and share with family and friends, with more financial The beginning of a new year is always a good moment to be hopeful solvency linked to a lessen need to own assets and last technology that it is possible to change… for the better! developments (the best car, a bigger house), as well as an increased respect for the environment, could make the difference in the transformation of a society that is propense to depression and anxiety. It is a perspective according to which assuming responsible consumption patterns becomes the best way to achieve personal fulfillment and greater welfare, at the same time that practices and values that include environmental protection as a key factor are being promoted. Assuming a responsible consumption attitude involves time. Time by Susana Fonseca, Quercus. to think about our options and if they are really necessary. Time to [1] http://www.rprogress.org/sustainability_indicators/genuine_progress_indicator.htm read labels, to find about the real impacts of the things we consume [2] http://www.footprintnetwork.org in the environment and faraway societies, where often the resources [3] http://www.sierraclub.org/sustainable_consumption

Enterprises green products and promotion of responsible consumption? questions: 1.

Integrating sustainability in mass market companies is, among others, investing in more sustainable production processes. What are the measures your company has implemented? And what are the main results of those measures?

Besides the concern with better and more sustainable production patterns, there are companies that have another concern: promoting a more responsible consumption near their consumers. Is this a concern for your company? Why? What specific measures have been implemented in this specific area?

How is your company integrating Sustainability criteria in the conception, production and commercialization of your products? Do you see ‘green products’ and responsible consumption as natural in the future? What’s your prediction on the evolution of responsible consumers segment? Have you been researching on the importance that these consumers may have in your sales 10 years from now? What are the main results of those market researches?

| COMPANIES - VIEWS ON RESPONSIBLE COMSUMPTION

Companies – views on responsible consumption

visa

business would involve financial capability and responsible consumerism.

workplace.

Then comes a responsible approach to doing Visa Europe seeks to lead the debate on business: financial capability. Since November 2005, Visa - secure, inclusive products: our Europe has run a programme to facilitate pan commitment to combating fraud, European financial capability debates, involving innovation and a wide product range banks, academics, business thinkers and other - the protection of vulnerable groups: stakeholders. Subsequent workshops have our work to protect children online with Visa Europe is a membership association of been held in Istanbul and Rome. CEOP, and our ban on using our products 4,600 European banks. In 2006 well over a to buy child abuse images trillion Euros was spent on Visa cards in Europe. In the UK, Visa Europe has also launched - minimization of adverse impacts when By facilitating such consumers, public and the Better Money Skills website www. doing business: through green card government spending, purchases via the card bettermoneyskills.com which has been created projects, ethical investment and ethical payment industry leave a subtle but wide to help people manage their money better lending. environmental footprint. One response to this – from understanding credit and interest to can be seen in the rise of environmental card setting a budget, choosing the best financial To pursue these goals, Visa Europe is working schemes. options and copying with financial problems. alongside Tomorrow’s Company, a research and The site contains a number of modules which educational charity which explores business Environmental groups have not been slow have been designed to be worked through in ideas that make sense to staff, stakeholders to harness the power of banks and plastic – order, and ends with a short quiz to highlight and society. They bring third party experience especially of the ecologically sound variety. your strengths and weaknesses. Case studies and insights into Visa Europe’s thinking, The Greenpeace credit card issued by the UK show how people have faced financial planning and engagement activities. Co-operative Bank uses a plastic known as challenges and opportunities, while the PETG. There are cost and production challenges resource centre explains financial terminology preventing more widespread use, but PETG and lists other sources of free advice. A recent eliminates virtually all the chlorine and toxic Visa Europe initiative that has taken place in chemicals contained in standard PVC cards. In the UK and Germany is the Visa Swap. For this Spain, Tridodos Bank issues Visa credit cards Visa Europe teamed up with TRAID in the UK made from PVC free recyclable plastic. Another (Textile Recycling for Aid and International example would be the GreenCard Visa, a credit Development) and Oxfam in Germany, both card issued by LaSer. The GreenCard is linked to charities committed to reducing world poverty an offset programme operated by shareholder by recycling clothes and shoes. The idea Tendris. addresses both the waste involved in rampant fashion consumerism and the growing One of the key tasks of TUI’s modern company Some member banks have also instigated interest in the ‘swap culture’. For Visa Europe, management is product development focused ethical investment projects. Ethical Investment it represents an example of ‘clever spending’ on sustainability and future-compatibility, (also known as Socially Responsible in its ongoing war against cash and cheques. which optimises environmental and social Investment) sees fund managers select green Unwanted clothing items are taken to a drop aspects as well as economic factors. This is or socially responsible companies in which off point, resulting in credits or points being to invest, while ethical lending sees banks loaded on to a Visa Swap Card. This is then used achieved in the TUI Group in interdisciplinary teams comprising product management, guarantee that their customers’ funds will not to buy fashion items at an event and any left product development and product innovation fuel businesses which fail to meet human or over clothes are donated to the charity. staff. One example how TUI supports animal rights standards. Many ethical banking contractual partners regarding sustainable organizations also ban investments in any development: TUI not only demands high The crux of our beliefs is that efficient, business whose core activity contributes to responsible electronic payments ‘make life flow environmental standards, it also actively climate change or environmental damage. better’: the purchase experience for consumers supports its hotel partners in achieving Examples of these banks include Alternative forward looking solutions. TUI sets up the improves, as does the retailer’s ability to run Bank Schweiz and Freie Gemeinschaftsbank in forum www.tui-ecohotel.de to promote an Switzerland and the Co-operative Bank and the an efficient business. The bank profits, and active exchange of ideas and information. Ecology Building Society in the UK. With these does the wider economy. This means that if This site provides TUI contractual partners Visa Europe’s commercial and CSR interests and other measures, many of our member coincide, and if the responsible extension of its with detailed information and help for further banks are building a record of environmental products and services benefits everyone, then developing environmental management good practice, offering customers various systems. It also assists the cross-border it follows that the company’s contribution means to reduce their adverse impact on exchange of best practice examples. Hoteliers to society is intrinsic in what it already does. the planet. In the process, they are creating can also enter their latest environmental By realizing that its products and services and growing a reputation for good practice measures in an interactive Environment can add value everywhere Visa touches, the which addresses the contemporary theme of Checklist. TUI responds quickly to inform the organization simply needs to operate at peak corporate social responsibility. effectiveness in order to deliver a CSR dividend hoteliers whether these measures conform to TUI’s minimum environmental standards. to everyone involved. Visa Europe is in the Visa has no direct relationship with consumers. rare position of finding its ambitions to be corporately responsible and pursued through The organization does not issue cards and Promoting sustainable consumption patterns – its commercial activity. Visa Europe focuses it does not lend money. Instead, Visa leaves on ensuring that electronic payments become combined with protection and enhancement of its member banks free to price and promote accessible to more people, for more situations holiday quality – is one of the main objectives of their Visa branded products in the way sustainable tourism development. Sustainable in a safe and secure way. This work begins that they see fit. Visa acts as a trusted and holidays should no longer be a small niche with open and transparent governance, and highly authoritative facilitator, broker and product for a few environmentally and socially arbitrator. The key to responsibility around our the spread of dignity across a sustainable

| Im))pactus November | January 2009

tui

3. TUI Market Research carries out in-depth

analysis on the expectations and needs of holidaymakers, and the lifestyles and holiday styles of various target groups. This enables sustainable holiday products to be tailored more closely to the needs of various target groups. One essential development is the LOHAS (lifestyle of health and sustainability) target group. It is expected to gain a market share of around 30% in the next years. TUI launched the “Green Worlds” (www.tui.com/gruenewelten), the first web based catalogue offering sustainable products by a travel company of our size. The products cover many fields of sustainable products: climate neutral holidays, cultural holidays and volunteering trips.

sonae sierra

efficiency increase in electricity consumption in operating shopping centers and a reduction of the correlated emissions of greenhouse gases. We have also improved significantly the water consumption efficiency to 4 liters per visit, and the recycling rate has reached a global average of 35% in 2007, since only 55% of produced waste was sent to landfill. The results concerning 2008 will be published in the company’s Corporate Responsibility Report, in May.

2. Sonae Sierra’s shopping and entertainment

centers have also been used to raise awareness towards good environmental practices. Examples include activities at internal (aimed at collaborators and shopkeepers) and external (aimed at the general public) levels, promoting awareness and understanding of environmental problems. In 2007, we have coordinated 291 visits of local schools to our shopping centers, during which children learnt the importance of environmental protection, and we have also promoted several awarenessraising campaigns regarding the importance of responsible water consumption. It should be also highlighted a broad training program, integrated in our sustainability policy, intended for collaborators, shopkeepers and clients which is being implemented in the Health and Safety field.

3. We are deeply committed in the protection of the environment for present and future generations, and in the implementation of this policy through the integration of environmental standards in every stage of buildings’ lifecycle and also through a continuous improvement of our environmental performance. As regards responsible consumers, we believe this is a segment that is clearly growing: our experience tells us that, presently, the public is more aware and sensible towards environmental issues.

Sonae Sierra’s shopping and entertainment centers are developed from project conception and design stage to construction, in line with the company’s Environmental Management System (EMS), which is certified in accordance with the ISO 14001 Standard. Sonae Sierra was the first company in this sector to obtain this certification. In practice, this means that aspects as important as landscaping or deciding which building materials to use are optimized. This strategy enables the use of the most correct environmental practices in areas such as energy saving, management of water quality and consumption, air quality monitoring, waste selective separation and recycling, among others, which results in increased efficiency in the management of shopping centers. In 2007, it should be stresses the global

lipor

Despite not being a strictly mass market company, Lipor believes the efficiency improvement of daily processes is fundamental to provide an increasingly sustainable service and, at the same time, to reduce the impacts of its activity, which is itself delicate. Besides the improvement of processes, we have carried out a series of significant initiatives to reduce the impact of our activity, mainly investing in energy efficiency and resources savings.

Among several initiatives, it should be highlighted the investment in renewable energies, namely through the installation of solar panels for water heating and the substitution of traditional roofing by transparent roof tiles, improving the use of natural sunlight. The collection of rainwater and its reuse in several processes enables us to save significant amounts of water from the distribution network. It should also be emphasized the use of biofuel which allows us to reduce not only the diesel consumption but also the emission of Greenhouse Gases.

The promotion of new mentalities and new behaviors has been an ongoing work in the last few years at Lipor. At present, 14 technicians go to schools in our area of influence, to talk about several different issues such as waste and sustainable consumption. Along this effort, there is a clear investment in Waste Prevention policies, especially in terms of sustainable consumption. We have carried out several initiatives in partnership with DECO, such as issuing the Guide “One Day of Sustainable Consumption” intended for the public in general and the Guide “Let’s Learn with João and Maria… about Sustainable Consumption” intended for primary school pupils, among other initiatives.

As it has been previously mentioned, issues such as Sustainable Consumption and EcoProducts are of key importance to Lipor. In addition to issues related to eco-efficiency in the production chain, which are already integrated, we are also incorporating in our own purchasing processes of goods and services, ecological goods and services. Presently, and by anticipation to the National Strategy on Ecological Public Procurement, approximately 15% of our procurement already includes ecological criteria, which is revealing of our concerns in this area. This is a response to the expectations of increasingly concerned and updated citizens, which will demand more and more from companies and products. This movement has already started and has no return, and companies that are unable to guide their behavior by these ideas and are unable to provide increasingly ecological goods and services will tend to disappear.

| COMPANIES - VIEWS ON RESPONSIBLE COMSUMPTION

committed tourists. The aim is to create a positive image for sustainability aspects and to make them appealing to the broadest possible circle of customers. This means that sustainable products have to set themselves apart from others. This will make it possible to permanently create broader acceptance for such holidays amongst holidaymakers. TUI has implemented specific measures like labelling and highlighting of hotels with an outstanding environmental and social performance (TUI EcoResort, TUI Environmental Champion). TUI catalogues also provide customers with additional information on “Nature and Environment“ in each holiday region. The “Holiday and environmental compatibility“ page helps consumers specifically with their choice of holidays by publishing a transparent declaration on environmental criteria for hotels, destinations and modes of transport.

Logos and their meaning

Behind the logos of “Sustainable” products

The consumer is willing to buy Sustainable products

There are already several studies which demonstrate that consumers are willing to change their consumption habits, by valuing companies and products that comprise an environmental or social concern. In this regard, there is a need to decode existing labels and certifications, and try to understand what is behind logos. In most situations, companies use the “Sustainable” label in a product, when it is in accordance with only one (or just above) environmental criterion (e.g., the fact that paper is recycled) forgetting many others, such as: energy spent in its production, consequences for global warming, water consumption, forest material consumption, respect for human rights, contribution for the welfare of local populations, among others. To state that a certain product is Sustainable, implies performing a global analysis taking into consideration several criteria and all through its value chain. It is, therefore, required that marketers are able to build a more transparent and honest communication regarding the environmental and social impact of products. Given that a more educated and informed consumer will be in better position to consume in a more responsible way, aware of products’ impacts and costs. The Cooperative Bank (UK), in “The Ethical Consumerism Report 2007”, presents us the evolution of ethical consumerism in the United Kingdom (UK). Ethical consumers play a key role in the development of this type of products and services, but there are some gaps in legislation which is necessary to establish a link between ethical products and services to the mass market. According to this study, 6% of the adult population in the UK considers itself as ethical consumers, buying ethical products and services on a weekly basis. In 2006, the total value associated with ethical consumption was £32.3 billions. Bellow, one can observe the evolution of this type of consumption, as well as an analysis to the financial sector and to the clear increase of ethical banking.

1999

2000

Ethical Banking

2001

2002

Ethical Investment

2003

Credit Unions

2004

2005

£ 5,551m £ 7,223m £ 428m £ 55m

£ 5,020m £ 6,098m £ 388m £ 49m

£ 4,715m £ 5,517m £ 352m £ 41m

£ 4,461m £ 4,214m £ 338m £ 16m

£ 272m £ 12m

£ 3,886m £ 3,510m

£ 3,355m £ 3,807m £ 224m £ 8m

£ 2,594m £ 3,702m £ 183m £ 4m

£ 154m £ 1m

8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0

£ 2,149m £ 2,872m

Ethical Finance in the UK, 1999-2006

£ million

The increasing number of green, ecological, sustainable and responsible products, as well as the increasing number of actions by companies in the Social Responsibility area, causes consumers to be “attacked” by many and diverse information, which is not always correct or well understood. Greenwashing is a relatively new concept, meaning to communicate products based in environmental concepts, without the entire value chain really meeting all claimed and reported environmental concerns. It is information that is not always true and provides a misleading image of responsibility.

2006

Ethical Shareholdings

Ethical Consumerism in the UK, 1999-2006

£ billion

| Im))pactus November | January 2009

by Bruno Cachaço

35 30 25 20 15 10 5 0

£9.6bn

£11.9bn

1999

2000

£13.5bn

2001

£18,4bn

2002

£22.1bn

2003

£26.6bn

2004

£29.7bn

2005

£32.3bn

2006

Source: The Ethical Consumerism Report 2007, The Cooperative Bank. http://www.co-operativebank.co.uk/

The meaning of logos

In the European Union one can find studies and papers promoting responsible consumption and teaching citizens the meaning of labels. These documents explain, for instance, that mentioning the word “biological” in the label of a product means that it is rigorously regulated under the EU legislation, and its use is only “allowed as a reference to specific methods of food production that respect high standards of environment protection and the wellbeing of animals.” According to the EU Action Plan for a sustainable consumption and production, several different categories of labels will be established. The ecological label will serve as complementary information to consumers, and it will be a voluntary option. The EU names it “label of environmental excellence” given that it will show consumers which products have reached a high level all through their life cycle.

institutions will play an active role in controlling and promoting a more responsible consumption.

Some logos, examples: The Forest Stewardship Council (FSC) is an international and independent non governmental organization that consists of three chambers – economic, environmental and social – which set the FSC Principles and Criteria. For further information visit: www.fsc.org and www.fscportugal.org

This symbol, the flower, is the EU label and it counts more than 10 years of existence. It aims to encourage business for products or services that are environmentally friendly, making them easy to be identified by consumers. This symbol is part of a strategy to promote responsible consumption and production in Europe.

The Leadership in Energy and Environmental Design (LEED) Green Building Rating System – Sustainable Building Certification For further information visit: www.usgbc.org/leed

> Consumers unaware of eco-labels and their meaning > Some companies certificate themselves with an environmentally friendly label when, in fact, it is not

> Voluntary labeling scheme may not be sufficient > A lack of consensus as to future guidelines may occur

> Consumers are willing to change consumption habits > The economic crisis might be a driver for a more responsible consumption, and also to reeducate consumption habits

Fig. 1

Austria – organic farming

Scotland – Green Tourism business scheme

> Legislation is needed

EU – ecological products

> Labelling as a competitive and transparency advantage by companies

> Labelling as a motivation to reduce environmental impacts

France – environmental logo

Fig. Labeling and consumers

There is currently a lot of confusion due to the amount of different logos that induce consumers into thinking about environment, human rights and transparency. For instance, a study by TerraChoice (http://www.terrachoice.com/files/6_sins.pdf) has analyzed over 1000 products, and among all those, only one was really sustainable! Some support the development of a sustainability label that would pass on to the consumer environmental, social and nutritional information. The question therefore arises: would it be possible to use already existing platforms (such as GRI that rates its sustainability reports) to certificate a certain product as being sustainable? Moreover, do consumers find in labels developed by Governments (e.g. biological logo) or by industries (e.g. FSC – sustainable forestry), an increased confidence? There are also those who support a sustainability triangle, where it would be established a value for each aspect: social, environmental and economic… There are prototypes for these ideas but the most important issue remains: how is it possible to convey such a broad set of information in a simple way, so it could be understood by producers, distributors and consumers?

Germany – environmentally friendly products and services

Luxembourg – environmental logo

EU – environmental logo

Luxembourg – environmentally friendly products

Austria – official environmental logo International Fair Trade – http://www.fairtrade.org.uk

Fig. 2 - European ecotourism labels, some examples.

Fig. 3 - Environmental, social and ethical labels, some examples.

more information: Ultimately, this work must be accomplished on behalf of consumers. Presently, different brands struggle against each other with http://www.globalecolabelling.net different labels. Brands that produce similar products find in these http://www.eco-label.com/portuguese logos a way to differentiate them and also to add value when http://ecolabelling.org/eco-labels compared to another rival brand. Will we get to a conflict of brands? http://www.fairtrade.org.uk Let us not be frightened, when nutritional information become http://www.greenerchoices.org/eco-labels mandatory, consumers had some difficulty understanding it, but nowadays it is something they are perfectly aware of. The next step, to manage this competitiveness among brands and to empower by Bruno Cachaço, Sustentare. consumers, will be to develop legislation according to which public

| LOGOS AND THEIR MEANING

BREEAM: BRE Environmental Assessment Method – Sustainable Building Certification For further information visit: www.breeam.org

| Im))pactus November | January 2009

Route

Reference websites

Events

Association for the promotion of Fair Trade http://alternativa.comercio-justo.org

May | June 2009

Fair Trade PT http://www.reviravolta.comercio-justo.org

9th May

World Fair Trade day 09 May Fair Trade Day at Ten Thousand Villages in Virginia-Highland.

31th May to 4th June

SUSTAINABLE BRANDS ‘09, Miami Beach. www.sustainablelifemedia.com

Fair Trade Cooperative http://www.equacao.comercio-justo.org\ QUERCUS http://www.quercus.pt/scid/webquercus

Reference international websites European Commission http://ec.europa.eu/consumers/index_en.htm Council of Europe http://www.coe.int/t/dg3/socialpolicies/platform/Observatory/policies_en.asp Sustainable Brands http://www.sustainablebrands08.com Global voice for consumers http://www.consumersinternational.org Research Group http://www.oneearthweb.org United Nations http://www.un.org/esa/sustdev/sdissues/consumption/conprod.htm Sustainability Branding http://www.sustbrands.com The Fair Trade Foundation http://www.fairtrade.org.uk Fair Trade Labeling Organizations International http://www.fairtrade.net International Fair Trade Association http://www.ifat.org European Fair Trade Association http://www.eftafairtrade.org Ethical Consumer www.ethicalconsumer.org

Books Governance of Integrated Product Policy In Search of Sustainable Production and Consumption

Edited by Dirk Scheer and Frieder Rubik , GreenLeaf Publishing

The Future of Eco-labelling Making Environmental Product Information Systems Effective Frieder Rubik, Institute for Ecological Economy Research (IÖW), Heidelberg, Germany and Paolo Frankl, University of Rome, Italy, GreenLeaf Publishing Sustainable Solutions Developing Products and Services for the Future

Edited by Martin Charter and Ursula Tischner , GreenLeaf Publishing

Growing Pains Environmental Management in Developing Countries

Edited by Walter Wehrmeyer and Yacob Mulugetta , GreenLeaf Publishing

Home Economy ( PT ) The Best Strategy to grow your money and leave the crisis behind João Martins APEFI - Portuguese Association for Strategic and Financial Positioning www.apefipt.org

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Sustentare, Lda. Av. Eng.Âş Duarte Pacheco, Amoreiras â&#x20AC;&#x201C; Torre 2, 8.07, 1070-102 Lisboa - Portugal For additional information, please contact us at: E-mail: geral@sustentare.pt | Phone: (00351) 21 384 93 90

Specialised course at INDEG

Corporate Sustainability and competitiveness Co-organised by AIP-CE and Sustentare Applications open until 6th February

MORE INFO: http://indeg.iscte.pt/cursos/especializacao/gestao/sustentabilidade