Communicating Sustainability in Retail Sector

Retailers

Consumers

Suppliers

Consumers: Key Players

Thought Leaders for SCP Retailers influence to a great extent the

purchasing decisions of the consumers by what they make available in their stores.

Able to specify standards of environmental performance with a greater degree of expertise and market clout

Retailers are potentially a major force in influencing the market for greener and socially sustainable goods.

Effective communication is the key!

Objectives Any communication

campaign have one or more of the following objectives:

Raise Awareness

Change Attitudes

Change Behavior

Sustainability Communication

MYTHS

Any sustainability communication is good communication

Communications cost the Earth

Human beings are rational

FACTS

Targeting works

Be inspiring

Make it personal and practical

Developing a Communication Plan

Understand the situation before starting Conduct audience research Set clear and achievable objectives Define message(s) and channel(s) Plan how you will manage the campaign

as it progresses Measure and evaluate the communications

Communication Channels in Retailing

Publications (Brochures, Leaflets, Posters) Websites, CD ROMs Labels Take-back schemes / Recycling Booths Special Events

Promotional Events for eco-products Concerts, Speeches Competitions, Lucky draws Exhibitions

Special Membership Clubs Loyalty / Recognition Programs

Practical Barriers

Lack of explicit consumer demand for more environmentally and socially sound products, or else negative consumer perceptions that 'green products' are inferior in quality, performance or value for money.

Wariness of media and NGO interest. There is sometimes wariness about being seen to take positive action on one front, because of the risk of 'knocking' publicity on others.

Lack of a robust business case, often arising from conflicting business priorities between procurement, marketing and environment teams within the company.

Unconvinced senior management. Support at board level is crucial for creating the interest and willingness to improve environmental performance and to establish it as a core value in the corporate culture.

Practical Barriers The products ‘sacrifice' which may be involved by offering a

greener product, in terms of price, quality and appearance.

Reliability of supply - if there are concerns about the capacity of the supply chain to provide the greener product.

Lack of clear consensus about the environmental issue at stake, with a tendency to defer action until scientific opinion and consumer views are completely clear.

Lack of resources, in terms of staff time within the company, to develop the business case and manage the supply chain.

Some Examples

Communicating Sustainability in Retail Sector

Kesko, Finland Environmental Report since 1997, replaced in 2000 with a

comprehensive “Annual Corporate Responsibility Report” Annual award for sustainable development is given to

individuals or organizations for significant contributions related to sustainability

Plussa Customer Loyalty Program: reaching 1.5 million households in Finland through the distribution of a monthly magazine containing article on Kesko’s efforts in Sustainable Development

Other Efforts: Information on products & Customer Information Leaflets,

Boards about environmental affairs and the store’s expertise in this area.

Visible waste sorting. Wide selection offering of organic food. Recycling free-of-charge to consumers.

Kesko, Finland K-environmental Store Diploma

A model to reduce stores’ environmental impact and help customers choose environmentally friendly products.

Conditions to get the diploma: the hypermarket director, the employees responsible for

environmental affairs and the whole personnel are trained, a comprehensive environmental audit is passed to ensure that the

store fulfils the detailed requirements set for awarding the diploma.

Currently 270 stores are awarded the K-environmental store Diploma, it was developed by Kesko and the Finnish Association for Nature Conservation

Stores are audited by BVQI.

Ito Yokado, Japan Corporate Communication initiatives :

Environmental report since 1996 Sustainability report since 2001 Corporate responsibility report since 2003 Dedicated webpage on corporate website (Environment &

Responsibility)

Supplier Communication: on-site inspections of plants and sites for products both domestic and overseas and strict hygiene controls (unscheduled visits to plants and sites).

Customer Communication initiatives : Boxes for customers’ voice Publication of corporate social responsibility report Posters throughout stores Construction of environmentally friendly stores Eco Stamp campaign to reduce use of disposable shopping bags Fundraising campaigns to help the environment Collecting recyclable products at stores

Ito Yokado, Japan Campaign for Eco in June every year to

raise employee and customer awareness on sustainability issues.

Employee Communication : Distribution of “Policy of Corporate Conduct

Booklet” “Helpline” Continuous employee training Guides and videos for training.

Groupe Casino - France Low Profile:

Humility in communication around ethical issues, so favors selective communication as the policy develops steadily.

Reluctant to make a major story of this issue before they are the leader in sustainable consumption.

The group has been cautious due to the fear of attracting unreasonable scrutiny. These programs are trust-based and a single violation publicized can undermine the effect of the whole agreement. The NGOs sometimes appear more like adversaries than allies.

Corporate communications to the public is mainly related to fair trade. However, little communication to the public has been done.

For Suppliers: “Ethical charter” introduced for vendors to sign

Certain suppliers have their own ethical trade commitment, e.g. Max Havelaar for coffee, Alter Eco, Artisans du Monde. These suppliers are preferred Casino.

Groupe Casino - France Communication Strategies:

Direct: Periodic mailings of educational material about environmental and responsible issues to loyalty customers.

Via vendors: In-store communication with customers on fair trade products primarily secured by vendors. Casino also has an own-brand for fair trade goods.

Via employees: training programs to ensure employees understand the range of sustainable / environmental / organic products available.

British Initiatives Kingfisher Group:

Opened its most sustainable store to date at Sutton in Ashfield, Nottingham, with a building management system maximizing energy efficiency, dimmable lighting, water harvesting systems for use in customer and staff toilets, photovoltaic and many other features.

Marks and Spencer: Named Farmer: Name of the farmer or grower included on

a range of food labels together with the name of the county the food was produced in to ensure transparency and traceability

Meet the Farmer: Customers can meet farmers and growers and sample their fresh food range at agricultural shows across the country or in their bigger stores.

Free Range Eggs: Multi-layered communication strategy, involving point of sale, advertisements, reports, websites, participation in league table benchmarking and wider stakeholder engagement.

Not invested huge capital in advertising “green” products.

Wish List! Market driven demand for sustainable products. Education and information campaigns funded by

governments and international organizations . Case studies showing that price is not the “only

factor” considered in the purchase choice. Sustainable products that add value to the

standard offer justifying the higher price Higher portion of sustainable products in the

product range commercialized by retailers. Support government to develop process

certifications, labeling Other policy interventions by the government

agencies

Towards an Effective Communication

Medium There is not a best communication medium specifically for this

field. Necessary to find an adequate combination of more than one

media, depending on the target and the objective of the communication.

Content of the message: Define the messages considering the average customer

awareness on sustainability issues Conveys a clear feel of a direct “usefulness” and “advantage”

provided to the consumers by the “sustainable” products compared to unsustainable ones.

Improved controlled labeling (through reliable certification systems)

Educating on new or confusing issues (e.g. climate change) essential as many concepts are still unclear to the consumer.

Towards an Effective Communication

For a Successful Direct communication campaign for sustainable products

Segmentation and target information: target very precisely the information you want to provide to the right group of consumers.

Visibility of products & of communication used: ensuring that products and communications are placed in visible spots, easily accessible and available.

Use change routine to capture attention: changing message and novelty will assure more attention for those products that are already known,

The Perfect Recipe (?) Communication campaigns, which explain the

importance of individual actions in a positive way and reduce consumer skepticism would increase the general level of awareness among customers and educate the consumer towards a more engaged behavior.

Concrete programmes that allow customer to “experience” the sustainable choices are among the most successful initiatives (e.g. binders, recyclable bags, etc.).

Programs like Take-back schemes is another idea where consumer can “participate” in sustainability initiatives.

Promotion of sustainable consumption through highlighting better quality of life rather than developing preachy messages and related feelings of guilt among consumers.

Thank You Very Much!

http://www.unep.fr/pc/retail/