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28 FEATURE MINIMISING WASTE & An increasing number of retailers are introducing transparent manufacturing and sustainability initiatives into their businesses, but consumers are now asking harder questions about how much waste the industry produces in total. COURTNEY DEVEREUX considers what waste- management changes are being made, and whether they’re enough to combat climate change. FEBRUARY / MARCH 2018
30 FEATURE 31 A round 100 thousand tonnes of textile waste is thrown into New Zealand’s rubbish dumps yearly, Steve Abel, photo credit Charles Howell according to figures from Ministry for the Environment. Plastic waste is even more prevalent at 252,000 tonnes per year. And these are only the most retail-relevant waste categories. New Zealand is currently the 10th-worst nation for creating urban waste per capita, globally. This monumental pile of rubbish comes from both producers and consumers. While unsustainable businesses are now facing pushback from consumers if they do not comply with a new demand for sustainable, transparent manufacturing, those same shoppers are also increasingly asking for support from retailers in disposing of their goods responsibly at the end of the product’s life. In the real world, According to the New Zealand Geographic, the volume of waste New Zealanders send landfills has skyrocketed by 73 percent over the past 25 years. convenience At the same time, household consumption rates jumped by nearly 57 percent in often trumps the 22 years between 1992 and 2014, with only a small proportion of this increase attributable to population growth. good intentions. New Zealand Geographic’s latest-available figures from 2010 show that New Zealanders threw away just over 2.5 million tonnes of waste into landfill. This national rubbish pile would, if stacked into an 8500-square metre space, tower just over 30 stories. Of that tower, 2.5 percent is attributable to textile waste. The recent trend towards fast fashion means clothing is being discarded much faster than it used to – currently, landfills receive a volume of garments equivalent to every person in New Zealand chucking about 145 medium-sized men’s T-shirts a year. THE CIRCULAR ECONOMY Since launching the program, H&M has are leading the way. argue that those in the retail sector should About 8 percent of New Zealand's waste stream by weight is plastic. Because The holy grail for conscious consumers and collected 50,000 tonnes worth of garments Almost all plans that involve reaching zero be coming at the problem, from a position of plastics are lighter than many materials, by volume it is estimated they may use those who serve them is the ‘circular economy’. globally. It plans to increase the collected waste rely on some sort of social imperative. social responsibility. All of us need to be socially up to 20 percent of landfill space. Approximately 252,000 tonnes of plastic waste In this model, value is generated through the volume to 25,000 tonnes annually. Greenpeace New Zealand senior campaign responsible, particularly those big companies is sent to New Zealand landfills each year. sale and re-sale of existing resources rather Although the chain is offering programmes and political advisor Steve Abel says this kind who have influence. And that’ll help encourage With the science on climate change now undisputed and its impacts now a part than extracting, devaluing and disposing of and limiting what by-products are waste, of initiative is a good way to get consumers the government for legislative intervention.” of daily life, consumer awareness of waste management has become mainstream. new resources. However, maintaining a much of what is sent to landfill depends contributing to a good cause, but says educating According to Abel, retailers will always With that awareness comes both brickbats and bouquets – some retailers are circular economy means recapturing those on the consumer's actions. By educating consumers on why incentives are being offered have a responsibility to lead customers, being pulled up by members of the public for activities such as dumping unsold resources once consumers are finished with and offering incentives to bringing in old or is just as important as their effects. but consumers are increasingly leading the stock, while others are praised for initiatives like phasing out plastic bags. them, and that requires getting shoppers damaged garments for the garment collecting “I think it’s nice that some of the retailers change: “We think that all of us need to be Retailers with an effective waste-minimisation and management program are engaged in the process. programme, H&M is making itself responsible are offering discounts, it’s a simple thing that socially responsible, particularly those big seen as responsible, caring corporate citizens, sensitive to environmental issues– Swedish fast fashion chain H&M is publicly for every part of a garment’s life. encourages people to act,” he says. “I actually companies who have influence.” and they can attract customer who favour a ‘green’ image. working towards becoming 100 percent circular “We educate our customers about our think most people, when presented with the According to the 2013 US study, The Business Value of Changing Consumer and renewable. While its ‘fast’ strategy of circular vision by encouraging them to reuse information about how bad plastics are, don’t PROVIDING ALTERNATIVES Behaviours, in one survey of 54 of the world’s leading brands, almost all of them offering a rapidly-changing range of runway- their shopping bags. We also offer canvas want to be part of it and are happy to be Clancy Simmonds, marketing manager for reported that consumers are showing increasing interest in sustainable lifestyles. inspired garments at low prices encourages totes as an alternative which are available in encouraged to use alternatives.” Ecobags, agrees that the convenience of using The study showed that 40 percent of companies surveyed are encouraging consumers to replace their garments frequently, a range of sizes and colours all made from Once consumers understand why they’re plastic bags must be phased out by changing more sustainable practises. Companies such as Ford, Puma, Nike, Levi’s, a spokesperson for H&M New Zealand says the sustainably-sourced cotton.” being encouraged to change their behaviour, consumer behaviour. Timberland, Coca-Cola, and BMW are leading the way with sustainable models company now intends to limit how much of its However, discarded clothing which isn’t they’re more likely to comply, Abel notes. “You can never compete with plastics, it is and limiting the by-products of their manufacturing. clothing and by-products go to landfill. taken care of by the supplier typically ends “The more people know, the more they’ll almost five times cheaper to purchase them. Those focusing their attention on improving their operations’ eco-friendliness “We are consistently increasing our use up in landfills or is dumped at charity shops. realise why these things have to be acted So what needs to happen is a behavioural are also realising that beyond the environmental advantages, there are tangible of materials that decrease the dependence These categories aren’t mutually-exclusive, upon. I think there has been a lot of coverage change from consumers.” benefits to their bottom line. on virgin resources, require fewer chemicals, either – in the last financial year, the Red Cross about the pollution in our oceans and I think Ecobags are an environmentally friendly Some companies may still be swayed by energy, and water and minimise the number of spent approximately $50,000 in rubbish tip people do understand the reasons, but I think alternative to plastic bags and can be found in the barriers that come with the change towards a sustainable business model. materials that end up as waste.” costs to dispose of donated goods which were a constant need for education can never go stores such as New World. The company has The top four barriers as stated by the study are short-term pressure, lack of hard H&M is one of the largest chains to have a unable to be sold. That means, yes, sending amiss. We don’t need plastic bags, so why do also designed biodegradable checkout bags data for benefits, difficulty quantifying intangible outcomes of action and lack of full circular approach, meaning no stock is sent them to landfill. we keep using them?” that are made from natural corn starch. knowledge from the consumer. to landfill from the company itself. Industry-led change is important, Abel says, “These bags are 100 percent compostable For the most part, consumers control what happens to a product. Now, as “Most of our product is sold through our CHANGING BEHAVIOUR but he believes only government intervention and are specifically designed to be sustainable some companies are realising, placing the burden of recycling entirely on the stores, but anything left goes through our Creating initiatives for consumers to limit and widespread consumer behavioural from start to finish. Ideally everyone would consumer is not an effective strategy —especially when tossing something garment collecting program where it can be landfill waste is one way to get them involved. change can address the problem of waste carry reusable bags, however, not everyone away will always be the easiest and most convenient option. In the real world, re-used, re-purposed into new textiles like car Businesses such as New World, which offers management in New Zealand. does and shops want to offer their customers convenience often trumps good intentions. seat stuffing or cleaning cloths, or recycled.” a discount with each reusable bag brought in, “I think in terms of a social good, we always alternatives to plastic,” says Simmonds. FEBRUARY / MARCH 2018 THEREGISTER.CO.NZ
32 FEATURE 33 “In-store marketing communications Ecobags (left page) ; Kalen Acquisto (right page) drives a 3 to 4 times greater sales lift when it is part of the in-store program.*” Do you struggle getting the right posters and marketing communications put up in store? Does it arrive in the right quantities, with the right messages, to the right stores, and get put up in the right place and on time? Lots of retailers struggle with these challenges, but in Ecobags, as well as promoting for a change that they bring their old garments that we can World a wave of public approval, but within the Soft Plastics scheme. This multi-retailer programme enables retail, nothing should be left to chance. Experience and in consumer behaviour, say that government donate on their behalf.” weeks, Countdown one-upped New World by customers to drop off a range of soft plastics at their local results prove that in-store marketing communications intervention for a change around single-use As a more conscious consumer becomes the announcing it was to wholly eliminate single-use supermarket for recycling. converts shoppers into buyers. But you have to get it right. plastic needs more work. norm, Piatek says there is a need for retailers to plastic carrier bags by the end of 2018. The soft plastics recycling scheme includes plastic bags, “It is a challenging time for the industry evolve as customers and their expectations do. New World matched Countdown’s but they are still mostly sent to landfill. If a bag is thrown away Retailers have a myriad of people juggling spreadsheets, because there isn’t outside support set up. Sure, “What I’ve learned even in the last year or commitment, and was later joined by Mitre today, it can be expected to biodegrade by 2025 if exposed to ordering copious amounts of marketing print with there may be compostable bags and coffee cups, two is that you can’t stay complacent in thinking 10, which is also phasing out single-use direct sunlight, but in the darkness, such as at the bottom of a specific messages for certain stores only for it to fall but if they’re just going to landfill then what is that 10 years ago you started an ethical cotton plastic bags and boot liners this year. Further landfill, it can take up to another 100 years to fully disappear. down on compliance. Fortunately, there’s an easy way the point? We need more compost facilities set brand and that’s the only future. The problem is Progressive Enterprises brands SuperValue to replace time-consuming guesswork with smart, fast up in order to fit the growth in demand.” if a business doesn’t have that sustainability or and Fresh Choice have also indicated an BEYOND BAGS marketing deployment. “Support is needed because the industry ethics at the forefront of their ethos, they’re not interest in phasing out plastic bags, but are yet Many businesses are working hard to reduce their RMS empowers businesses to manage and deploy in-store can’t grow without it,” says Simmonds. going to prioritise that because it requires a lot to finalise their transition deadline. environmental impact beyond just plastic bags. Retailers marketing, compliance and communication quickly and “Businesses need to start taking responsibility.” of conversational times.” Countdown GM corporate affairs, Kiri create waste in a number of back-of-house ways, from food Piatek says re-orienting a business model Hannifin, says the chain has further committed waste to pallets wrapped in plastic. nothing in the market quite like it. And it delivers results. BUILT FOR SUSTAINABILITY around sustainability can be tricky, but it’s no to being zero waste by 2020. This is an Mashbone, a dog treat company, was born from Garage Does your retail business want: Some retailers have been listening to longer an option to stay complacent and hope important step for the future of the grocery Project Brewery being smarter about its by-products that consumer demand for more ethical practises other businesses pick up the slack. store, she says. came from production. It turned by-products that contained • intuitive visual aids and a cost saving platform from the start, and bet their businesses on the “You have to lead by example. What is “Reducing waste isn’t just about diverting high protein and fibre into sustainable dog treats. • reduced staffing costs, better accountability, and more likelihood of this demand’s growth. Clothing the point in not? I just don’t understand why food from landfill, it’s also about getting our Project manager and leader of the pack, Kalen Acquisto, consistency of in-store programs, locally, regionally retailer Kowtow has featured on the Deloitte you would be doing something knowing forecasting right and innovating to help reduce says as a sustainably focused business Mashbone was and nationally Fast 50 index in 2014, 2015 and 2016, boasting that it is harming something else. The world food waste across the board.” determined to use waste products more wisely. • less repetition and more creativity growth of 297.7 percent at the latter. is changing, the climate is changing and Hannifin says Countdown’s ‘Odd Bunch’ “I would say that smart use is something we care a lot • user-friendly automation freeing up time and resources Founded on being completely ethical, resources are becoming tighter along with scheme, which takes imperfect produce and about. We have our sustainability programme here at the • better conversion and return on marketing investment. sustainable and transparent, it scored an A+ for population growth, and as a business, you have makes it available for cheaper prices, has brewery and we’re always looking for ways to use our by- If so, take control of your retail communications today all categories in the 2017 Ethical Fashion Report. to move with that.” saved around 500 tonnes of produce from products but also cut down on resources and be more with RMS. Owner and founder Gosia Piatek says her the landfill. efficient. I think success for us is others doing similar things For more information, retailx.co.nz/RMS company’s transparency allows for closer TAKING A STAND “Countdown has moved towards recyclable and kind of catching on what needs to happen.” Gina Brugh 021 034 4800 or gina@retailO2.co.nz relations with consumers and the people they During the latter half of 2017, New Zealand meat trays, which are also made using Yet the issue surrounding the sustainable treats plastic work with to create all Kowtow products. grocery retailers began to move. New World 50-95 percent recycled PET (polyethylene packaging remains. Fortunately, Acquisto presents the “We have a workroom where people can launched its ‘BagVote’ campaign in September terephthalate). This will reduce 500 tonnes of forthcoming solution of biodegradable plastics. come in and see how the garments are made. last year, allowing consumers to vote on the old black foam trays in landfill each year,” “We are in the process of sorting biodegradable packing for We donate to the Red Cross, we also ask when whether or how much they should be charged says Hannifin. the treats as well. Because all our products are made from locally *Well that’s what research from Prime Consulting Group says. people come into one of our workroom sales for plastic bag use. The campaign brought New Countdown was also a founding member of sourced ingredients already, it’s the one thing we’re working on FEBRUARY / MARCH 2018 THEREGISTER.CO.NZ
34 FEATURE 35 Mashbone (left page); James Calver on the right (right page) ONE THING WE TRY TO Things like ‘biodegradable’ and ‘compostable’, unless explained to the CONVEY consumer, are just words that sound nice. TO PEOPLE IS THAT SUSTAINABILITY improving and should be ready in 2018.” big change already seen within New Zealand. Yet according to the New Zealand Waste IS A JOURNEY, NOT A Acquisto encourages businesses to actively “We take responsibility as much as we Strategy, the number of landfills in New work towards reducing waste, no matter if that is fuelled by consumer demand or following the steps of a larger business. can from cradle to grave. I think we can put our hand up and say we’ve had a very heavy influence in changing the industry and Zealand is reducing. In 1995 there were 327 and 115 in 2002. Recent reports estimate about 54 landfills exist, with much stricter DESTINATION. “I think it is too easy to be caught up in changing the country.” regulations surrounding them. IT IS AN EVER-EVOLVING the day-to-day, and the little baby-steps. It’s Calver says that the growth in sustainability However, consumer demand for greater so important to reconnect with that bigger efforts can also be seen by his company’s 607 transparency and sustainability is likely image by connecting with other sustainable percent top-line growth. to open doors in this area as time goes practices and to know that every step makes a “Although this is also a reflection of hard on. Conscious consumers are increasingly PROCESS, AND THE difference along the way.” work, it is a reflection of the country moving mainstream, Calver says. “It’s a two-part thing. A lot of what we do forward and trying its best to adopt more “What you’re seeing now, just through is because we care, and I think it’s exciting to sustainable practises. It’s not that hard to do, consumer influence, is big corporates having see that sustainability matter more and more it’s just about doing it, but we’re here to hold to include sustainability in their bottom line,” to consumers everywhere. I think people aren’t people hands through the process as well.” says Calver. “It is becoming the norm.” just doing it to fit in, which is also fine, but you can tell people are truly striving to be more educated.” Calver emphasises the importance of educating consumers because from education comes awareness of what happens to products “Consumer voice for change is only just getting started. I think New Zealanders are waking up to what we have to do because we SOONER YOU JUMP IN at the end of their lives. are falling behind in sustainability in a global THE BIGGER PICTURE Ecoware founder James Calver says businesses must lead by example and listen to “It’s complicated, and people who aren’t educated are the ones blurring the lines. It’s complicated not from the products perspective level. If we don’t change things now it’s going to be too late.” Calver expects retailers’ focus on limiting THE SOONER YOU’LL consumer demand to truly target the problem. but from the industry and the infrastructure, waste to increase their ‘green’ image, as GET AHEAD. “I think what’s happening is that consumers and the end of the line which includes the this is more favourable to consumers, but are becoming more aware themselves. council and its different standards per region.” also reminds retailers that changes must be However, it is quite a complicated evolution. Each regional council has different consistently carried out, not just promised. Things like ‘biodegradable’ and ‘compostable’, standards of waste disposal, making it “As retailers fully adapt and promote unless explained to the consumer, are just confusing for retailers to comply with different it then they’ll be ahead of the competition words that sound nice.” expectations per area. The newest updates because that what consumers are looking for. Ecoware has been supplying companies to the Waste Minimisation Act of 2008 are One thing we try to convey to people is that with biodegradable alternatives to packaging being implemented in the hope of significantly sustainability is a journey, not a destination. for six years, and since its initial stages, has reducing waste going to landfill by 2020 It is an ever-evolving process, and the sooner known that its work is an important part of a through synchronising laws across the country. you jump in the sooner you’ll get ahead.” FEBRUARY / MARCH 2018 THEREGISTER.CO.NZ
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