36 SUSTAINABILITY
distribution. Companies like Amazon are rethinking last-mile delivery through initiatives that use unmanned aerial vehicles to deliver packages within a 10-mile radius of fulfillment centres. Such technology offers the prospect of energy-efficient local delivery, without the pollution and congestion that is typically associated with road transport.
Consumer use
The majority of the water footprint of personal care products comes during the consumer-use phase. Add in the amount of energy necessary for heating water before application, which results in additional CO2
emissions, and
products can be the source of alarming environmental impact when consumed. Part of the issue is being mitigated
through the design of innovative products such as those that require less water during use, and as a result of initiatives that seek to educate consumers about water conservation. However, an emerging- opportunity lies in interacting directly with consumers through technology, which has enormous potential for raising consumer awareness and recruiting end-users to take part in sustainability efforts. Such technology can educate consumers while also providing valuable data to companies on consumer preferences. The groundswell in consumer- technology has the prospect of transforming consumer-use by connecting personal care regimes to technology- enabled devices. Smart homes could monitor water usage and help users to make informed decisions regarding consumption. Companies could convey personal cost savings associated with responsible water usage, while raising consumer-awareness about global water quality and scarcity. Such communication could be positioned as a way to offer consumers additional value, and be attuned to fulfil different levels of customer curiosity. Coupled with machine learning, these systems could determine whether a consumer is acting sustainably and direct companies to offer promotions to encourage responsible behaviour. Connected-packaging, which could be a simple QR code on a product’s label, could lead to greater ingredient-transparency through digital-content linking to an ingredients database and a full-breakdown of a product’s environmental impact. Ingredient shortages, often triggered when trendy raw materials cause global shortages, could be flagged for consumers while apps offer brand-agnostic product
PERSONAL CARE EUROPE
alternatives based on a user’s profile. Those interested in learning about their products would have the opportunity to do so, while less-interested customers would be spared from being overburdened with information. Connected-packaging could also be an opportunity to raise consumer-awareness on proper disposal once the product is used to discourage littering. The focus of such efforts would be not only on shaping the opinions of the adults who purchase personal care products, but also on younger digital-natives, ensuring that responsible habits are acquired at an early age and carried forward into adulthood.
End-of-Life
The consumption of natural resources is rising at an alarming rate as economies develop, resulting in an unsustainable global competition for finite reserves. Society must find ways to use resources in a more productive and less environmentally- impactful manner.
During the end-of-life stage, personal
care companies can play an important role in better managing resources by adopting sustainable strategies for post-consumer use packaging. The past few years have seen a renewed interest to find solutions as consumer-awareness of the environmental impact of packaging has surged, especially among young, informed consumers. M.A.C is a good example of a firm that has embraced the circular-economy while burnishing its sustainability bona fides. Through its “Back to M.A.C” incentivised return programme, the company facilitates post-consumer recycling by offering customers a free lipstick after they have returned six package containers. Returned
containers are then transformed into new packaging. While recycling is commendable, most
current processes require considerable energy and the quality of the recovered material is lower than virgin material. A more environmentally-friendly alternative might be to offer reusable-options, whereby associated cost savings can be transferred to consumers. However a company
approaches end-of-life, educating customers on how to responsibly use and dispose of packaging is fundamental to the success of sustainability efforts.
The future rewards prescient leaders
Conventional wisdom suggests that sustainability is a trade-off between economic-efficiency and social- responsibility. This zero-sum perspective positions the dimensions of sustainability as constraints; limitations to be adhered to when necessary, and avoided when possible. This need not be the case. From a strategic perspective, sustainability can be powerful, and those who embrace it beyond compliance can garner advantage. Sustainability can be the catalyst to motivate a search for new products, services, and markets. Opportunities to differentiate products from those of competitors exist, but more importantly, sustainability has the potential to help shift companies away from commodity offerings and toward more fertile ground. Markets will increasingly reward sustainable companies with investment, while punishing others. Firms that embrace a purpose beyond the bottom-line will be better able to attract customers than their more transactional counterparts, and have the opportunity to turn them into throngs of fanatically-loyal allies. Such firms will also be able to better capitalise on the initiative, imagination, and passion of its workforce, especially among the younger generations who seek rewards beyond a paycheck. Economists see a new wave of innovation coming, one that has sustainability at its core. These changes will compel companies to redesign around environmental and social needs. Innovative new business models are already being forged by an army of startups, purpose- built to compete sustainably, and reinforced by courageous incumbents that look to upend the existing order and leapfrog less agile players. The future belongs to those that prepare for the coming opportunities and risks, and establish a basis for long- term success.
PC April 2020
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