Nov. 20, 2009 - Using solar panels and geothermal heating as energy sources, creating “eco ambassadors” to lead environmentally friendly initiatives at work are some of the “green” activities that 15 of the world’s top eco-friendly retailers engage in regularly, according to a new report published by Ryerson University’s Centre for the Study of Commercial Activity (CSCA).
Mountain Equipment Co-op, IKEA Canada, Walmart and Home Depot are among the list of the leading green businesses in Canada. The other retailers among the 15 green leaders include: H-E-B, in the U.S.; LUSH, Marks & Spencer, Alliance Boots, Monsoon and Tesco in the U.K.; Musgrave Group in Ireland; Monoprix, and Carrefour in France; Aeon in Japan; and Woolworth’s Company, Australia.
“We developed the greening retail initiative to assist the retail industry worldwide in adopting more sustainable practices,” says Wendy Evans, one of the main authors of report and an adjunct professor in Ryerson’s Ted Rogers School of Retail Management. “The report’s goal was to demonstrate that by undertaking just a few of these initiatives, being green makes good business sense and lessens our carbon footprint.” The other main author is Marion Denney, Evans and Company Consultants Inc.
The report was completed in partnership with Professor Hersch Jacobs and Professor Kernaghan Webb, both from the Ted Rogers School of Management at Ryerson University; Professor Leigh Sparks, University of Stirling, Scotland; Marc Vilanova, ESADE, Spain and Hitosubashi University, Japan; University of Metz, France; Retail Council of Canada and the Sustainable Retail Consortium, National Retail Federation, U.S. The authors also drew on the expertise of the Toronto and Region Conservation staff who are a part of the Greening Retail program.
According to the researchers, Canadian retailers take up more than $1.2 billion square feet of space in Canada. A 2006 CSCA report also noted that the industry was responsible for emitting over 40 million tonnes of carbon emissions and producing six million tonnes of waste annually.
“If just five per cent of retailers and their suppliers reduced their energy consumption by 10 per cent, the estimated energy savings could power every home in Ottawa, which is half a million houses,” says Evans. “Greenhouse gas emissions would also be reduced by 1.4 million tonnes, which is equivalent to removing 233,000 cars off the road for one year.”
To determine the top eco-friendly retailers, the researchers reviewed more than 200 green retailers online. From that pool, 66 businesses representing a range of merchandise sold, sizes, formats, brands, ownership structures and geographic locations were selected based on 14 criteria that reflected environmental best-practice standards worldwide. Every retailer fulfilled each of these standards, which include having written environmental policies, evaluating the environmental impact of the company and measuring the effects of environmental practices on the company’s profits. Fifteen of these retailers were then selected to have their senior executives interviewed and eco-friendly corporate policies studied in more detail.
The authors found that, although the framework for achieving environmental best practices varied among the retailers, there were some common threads, including:
• A deeply held conviction by senior management that the company must reduce its impact on the environment,
• An environmental management structure,
• Head office and store staff who have environmental responsibilities, and
• A sound environmental plan and strategy.
Homegrown examples of environmental leadership are abundant, according to the authors. Mountain Equipment Co-op’s Toronto store had solar panels and a geothermal heating system installed in 2007. 77,000 Walmart Canada staff created 160,000 personal sustainability goals as part of the company’s vision to be a green retail leader. Home Depot associates educated customers on ways they can minimize water pollution at home.
Evans says the key to being a successful eco-friendly retailer must start from the top. “There has to be a commitment and passion from the CEO or senior management in order to implement sustainable practices. Once you have that in place, you can roll out a long-term plan that will benefit your company – and win you more customers, who are demanding companies be more environmentally responsible.”
In the future, the authors are working on a report that identifies the best environmental practices of leading developers and shopping centres worldwide.
A copy of the report and the full list of leading green retailers can be downloaded at http://www.greeningretail.ca
The report, Greening Retail: Best Practices of Leading Retailers From Around the World, was funded by Environment Canada and by SmartCentres.
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