- Tom from TS Designs agrees that his sustainable products are more expensive, but he knows where his inputs come from versus a producer in Honduras who may use environmentally un-friendly dies
- cost comoonent sheet - buyers demanding this from suppliers
- leads to benchmarking
- instittutional buyer can almost be more important then targeting a consumer. Consumers are already overwhelmed by decisions, suppliers can focus more on this
- Green still isn't a motivator to pay more
- How do you leverage suppliers to
- Do you fund their investments in efficiency
- do you pull business if they don't
- Need to change ways to look at costs
- WMT - what are they worried about
- pure procurement, not a supply-chain org, know there is a ton of efficiency to be had
- no retailer in histrory has transitioned from one generation to another and they are worried about the consumer
- some buyers are transitioning to value based purchases
- want to deliver value at the low end of the economic spectrum
- big question is how do you get something to scale without having the price coming down in the first place
- hidden costs need to come out, hidden subsidies (corn, fuel)
- Successful green products that have are priced right
- gardening vs. Whole Foods
- mitigate volume of purchases to offset prices
- in the case of food, is healthier
- same w/ energy consumption
- Certificaiton system
- Is there a need for a loss leader that results in these things scaling?
- Need to take into account soft costs (employee productivity) but can't guarantee something like this
- Need borad case studies of success and gov'tal support
- Can design and build a LEED silver building with no additional cost
- Labeling may be the answer for food/consumer products but there are a proliferation of these
- USGBC set up LEED, went through a consolidation phase but have landed on LEED
- Is there an innovation opportunity around a certain sector
- Sustainability index, scorecard for transparency of products
- this will help consumer products
- We are all going to be naked, we might as well be buff
- transparency will help, in the information age
- Better world shopping guide - rates retailers and product manufacturers
- environmental working group has a similar thing for health & beauty - Skin Deep
- Good guide - does this for consumer products
- goal of this is to have an application on Iphone, when you are in a grocery store can use
- example of Burt's Bees, had to create own standard, conflict of interest
- transparency in the process of labeling (or rating process) as well as transparency in the labeling
- cradle to cradle protocol from will mcdonough is not transparent and people have problems with it
· How do we define these terms like sustainability?
· Compare energy efficient vs sustainability
o Adaptive mgmt
· Transparency in project and process!
· USGB ex showing that people can change things and use adaptive management, rather than govt making strict policy that cannot change and adapt
· Social justice, economic prosperity
· Efficiency can lead to dangerous places – link local economies to global scale
· Main points from discussion:
o Openness, transparency
o How to establish standards for other products (like LEED)
oHow do you bring to scale to get over cost hurdles