\u201cClimate change threatens Avery Dennison\u2019s supply chain, our customers\u2019 businesses and the communities we\u2019re part of…the fight against climate change is just smart strategy.\u201d<\/em><\/p>\n – Dean Scarborough, Avery Dennison CEO<\/p>\n Avery Dennison faces various internal and external risks, including procurement threats as resources packaging product inputs \u2013 paper \u2013 become more scarce, as will the 570 million gallons of water consumed annually in production; production is also energy intensive, but presently 100% reliant on traditional electricity and natural gas.[3] As its highly visible customers gain increasingly sustainability-aware and -demanding consumers, Avery Dennison will inevitably be held accountable by a\u00a0set of powerful\u00a0customers.<\/p>\n Today\u2019s Sustainable Package<\/em><\/strong><\/p>\n Avery Dennison has rolled out process and product changes to turn a complex multi-stakeholder challenge into shared opportunity. While the initiatives have tremendous potential, time has yet to determine their true returns.<\/p>\n In its 2014, Avery Dennison announced three major sustainability commitments by 2025:<\/p>\n First, Avery Dennison has begun to concentrate growth in sustainable product and service development<\/strong>. In 2013, the company implemented responsible paper procurement policies, maximizing use of recycled and FSC certified fibers, and working with the Rainforest Alliance to validate tracking of paper and pulp sources. Avery Dennison has diminished use of PVC, PVdC, and DEHP, materials producing negative environmental impact. [5]<\/p>\n Avery Dennison has developed a new impact analysis tool across its product line, the Greenprint\u2122, which measures six dimensions of a product\u2019s environmental performance:<\/p>\n Source: Avery Dennison Sustainability Report, 2012-14.<\/em><\/p>\n Avery Dennison also uses this tool with clients to make packaging decisions. For instance, L\u2019Oreal worked with Avery Dennison to implement Greenprint to evaluate replacing product labels with a new Avery Dennison product line using less material, requiring little production water, and emitting fewer GHGs. The collaboration led to a 19% impact reduction for the replaced labels. [6]<\/p>\n To reduce emissions,<\/strong> Avery Dennison has begun optimizing energy use by piloting installment of wireless sensors to measure equipment component consumption and fine-tune production processes as well as coordinate shutdowns for idle equipment. Looking across unused and older facilities, they are closing and\/or consolidating plants. The company has also made the move to fluorescent and LED bulbs. [7]<\/p>\n To become landfill-free<\/strong>, Avery Dennison is redirecting manufacturing waste material from landfills to plants that can convert the waste to energy through combustion.<\/p>\n In the early stages of its transition, the progress of these final two steps between 2012-14 include, \u201c328,000 metric tons of GHGs\u2026not emitted from landfills\u2014the equivalent of removing nearly 280,000 cars from the road.\u201d [8]<\/p>\n Completing the Package \u00a0<\/em><\/strong><\/p>\n Avery Dennison has just started with its mix of innovative and incremental approaches, yet still has many opportunities ahead:<\/p>\n Client ROI Clarity:<\/strong> Avery Dennison\u2019s greatest opportunity lies in connecting the sustainability dots to its clients\u2019 top and bottom line. Without understanding the costs and benefits, how will clients be motivated beyond their good intentions and PR risks to contribute to Avery Dennison\u2019s sustainable revenue goals? Greenprint is a start, but it just measures external costs. Clients need to understand their share in the value created.<\/p>\n Quantifiable Targets:<\/strong> It is still unclear how, and by how much, Avery Dennison aims to grow from sustainable products. Concrete, quantifiable commitments around sustainability contributions to the top and bottom line will make their first 2025 goal more clear and realizable by enabling these goals to cascade into performance metrics by which leadership, departments, or individuals can target and be held accountable to. In addition, a measureable target will create more transparency to stakeholders.\u00a0<\/em><\/p>\n Renewables:<\/strong> While incremental changes to production are already making an impact, Avery Dennison still relies 100% on traditional energy, and has not begun to focus on reducing its water usage. The company should evaluate renewables, fuel switching, and even the energy reproduced from its own manufacturing waste. Otherwise, there are only so many optimization tweaks possible to curb incremental emissions.<\/em><\/p>\n Word Count: 794<\/p>\n Sources:<\/p>\n Will a leading packaging solutions provider catalyze a climate change Death Spiral, or sustainably change the industry landscape? <\/p>\n","protected":false},"author":2200,"featured_media":13690,"comment_status":"open","ping_status":"closed","template":"","categories":[161,1190,1189,1931,1791,1628],"class_list":["post-13689","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-manufacturing","category-packaging","category-paper","category-pulp-paper","category-sustainable-packaging","category-wastewater"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/climate-change-challenge-2016\/","yoast_head":"\n\n
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