Top Tips for Kicking Off a Sustainability Journey
Companies realize the importance, both socially and economically, of taking critical steps toward more sustainable practices. While that is easy to agree on, every organization must evaluate its appetite and ability to execute against those good intentions. The difference between intention and action often comes down to preparation for the process as well as preparation for navigating the inevitable barriers that will be encountered.
Virgin plastic supply chains have a 50-year head start on the PCR market. While emerging companies of the green-era revolution are developing an approachable track to sustainability, the path is not yet clean and tidy. And organizations must examine their leadership, product, and sourcing teams before taking on the task at hand.
Leadership Support
Advancing any sustainability initiative further than the whiteboardingSpecial Data stage almost always requires support at the executive level, and may even demand board buy-in.
Garnering leadership’s support is particularly prudent when the fundamental shift in practices requires changes to design, production, sourcing, or the bottom line economics. The cascading effects of even a minor tweak in plastic resin suppliers (for product or packaging) often entail a substantial amount of effort from a cross-section of departments and individuals who must comprehend the intent and scope of the change.
To ensure leadership’s support for sustainability initiatives, it must be established as a company-wide priority and integrated into the overall corporate strategy. No longer just a nice-to-have target for teams to tackle when things are going well, a firm executive commitment telegraphs to everyone involved that this matters to the organization’s future and that true urgency indeed exists.
Management should also be made aware of any financial implications of these actions. Whether it’s a change in the cost of goods sold (COGS)—and any corresponding pricing changes—or simply a modification to existing procurement agreements or relationships, there must be full transparency and no surprise “gotcha” moments that may stall or permanently stymie the initiative. Also, check to see if the company has entered into contract supply agreements with manufacturers who might not be aligned with internal goals.
Finally, in situations where the inspiration to embark on a sustainability-driven change comes from the rank-and-file, these cases should also be escalated to the executive level to lock in support. Skipping or delaying that step runs the risk of a cautious stakeholder learning about things elsewhere and quickly hitting the brakes. Pointing to external examples of brands that have made a big splash (and have seen great acceptance) with their sustainability efforts can help ease their concerns.
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Manufacturing and Sourcing
When it comes to greening an organization’s use of plastics, manufacturing is possibly the most interested and affected party within the company. The desire to reduce the use of virgin plastics and/or incorporate PCR material into the workflow significantly impacts this area. And, since manufacturing is often outsourced to a third party, organizations must work with purpose and conviction to demonstrate their commitment to achieving their sustainability goal.
For manufacturers, it’s unquestionably a risk to adjust something that is already working and they may have fears about the impact on their equipment, their throughput, their supply chain, and their profit margins. Further, they may even have contractual rights to disregard such a request.
To counteract this, brands should include their manufacturers in the process as early as possible, making them a partner on the path to sustainability with their own skin in the game. Sharing examples of other products that have already successfully transitioned to incorporating PCR in their traditional manufacturing processes is a great way to begin this conversation. After all, seeing is believing.
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