Consumer and Corporation Roles

Sustainable Management Roles of the Consumer and the

Corporation

Mark Alan Lenox Brand Consultant

www.markalanlenox.com

Three Case Studies

Sustainability and the Early Adopter – Birkenstock

Sustainability Today – Intelligentsia Coffee

Sustainability as a Design Method - fuseproject

Birkenstock Footprint Sandals

Sustainability and the Early Adopter

Interview with Margot Fraser, Birkenstock USA president, 1966-2007

Birkenstock Footprint Sandals, Inc. Overview

!  Birkenstock family in the shoe business for 230 years

!  Birkenstock USA founded in 1966 by Margot Fraser

!  Grew from a $40 to $120 Million business in USA from 1991-2001

!  Recognized as the 2015 Vendor of the Year by the National Shoe Retailers Association

!  Birkenstock now has worldwide distribution from China to California

!  Focused on environment and positive work conditions

Birkenstock – A Few Quotes from Former President, Margot Fraser

!  “In the beginning, not much awareness of the environment. Carl Birkenstock was just old fashioned. He was frugal and didn’t like waste.”

!  “From the beginning, Birkenstock used recycled paper and water based ink.”

!  “Cork and latex left overs were reground and reused.”

!  “Birkenstock talked about repair, and even offered do-it-yourself kits”

!  “Carl was always concerned about workers and their environment.”

!  “Birkenstock allowed us to talk to employees. Frequent visits to factory demonstrated synergies between workers and commerce.”

!  “Birkenstock customers in the early years were more aware of environmental impact, and comfort. Customers today know that they last longer and over time they are less expensive.”

The Footbed the Soul of Birkenstock Sustainable, Repairable and

Recyclable

Cork Bark

Cork bark and uses

•  Cork trees hold ground water providing cover and shade for smaller plants and animals.

•  Over 60% of cork production is from Portugal and Spain.

•  Cork trees are an important basis for traditional agricultural and farming economies.

•  Cork bark can be peeled away and it will grow back in 9 to 10 years.

•  Leftovers from the bottle cork stamping process are ground down in various sizes and then sorted by quality.

Jute

Jute Plant

!  Jute is a rain-fed crop with little need for fertilizer or pesticides.

!  Bangladesh and India are the top growers of Jute.

!  Jute needs a plain alluvial soil and standing water. The suitable climate for growing jute (warm and wet) is offered by the monsoon climate, during the monsoon season.

Latex

Latex Being Harvested

! Natural Latex protects plants from Herbivores.

!  Commercial Latex rubber is produced by the Hevea brasilienesis rubber tree and is the protective fluid contained beneath the bark.

!  Hevea trees mature at five to seven years of age and can be tapped for up to 30 years.

! More than 90% of the total world production of natural rubber comes from Asia.

Ethylene-vinyl acetate (EVA)

EVA sole material

!  EVA has become an environmental concern because of its poor biodegradability.

!  Recycling and composting are two major proposed solutions to end-of-life management.

!  Birkenstock claims that Left-over EVA from the sole production process is broken down and further processed for use in children’s playgrounds, sport fields and sound barriers along freeways.

Leather and Synthetic Uppers

Leather Hide

!  Leather is a by-product of the meat industry. Animals are not killed for hide.

!  Synthetic Birkenstocks are also offered, and account for a large percentage of the company’s revenues.

! Wool felt is 100% natural.

Packaging

Birkenstock Box

!  Birkenstock footwear is packaged in boxes made of 90% recycled paper and printed with inks that are environmentally friendly.

!  Stringent recycling and waste laws in Germany mandate that the manufacturer is responsible for all the packaging components and their recyclability.

Repair vs. Replace

Repairable Components

! Most components in a Birkenstock shoe are repairable or replaceable.

!  Lengthens the usable lifespan of the product.

!  Re-use rather than recycle.

!  Provides employment for trained repair people.

DER GRÜNE PUNKT

Factory and Workers Conditions-

Birkenstock Assembly

!  Most products made in Germany

!  Birkenstock workers are paid above the average industry wage.

!  Pays workers' commuting costs, and gives free shoes to employees.

!  Small teams whose members willingly swap jobs with each other.

!  Heat that would normally be wasted is used to heat the cork footbed drying plant, through which each cork footbed travels.

Retail Partners and the Supply Chain

Birkenstock Licensed ‘Name Store’

!  Early attempts to sell Birkenstock to traditional shoe stores failed, so a new retail model was used, partnering with small independent retail health food stores.

!  Annual educational sessions for retailers and employees are held at Birkenstock HQ, to help retailers in marketing, sales and business matters.

!  Supply chain designed for frequent small orders, minimizing retailer financial commitments.

Intelligentsia Coffee & Tea

Sustainability Today

Interview with Matt Riddle, Director E-Commerce

Intelligentsia Coffee and Tea History

!  Founded in 1995 by Doug Zell and Emily Mange

!  10 retail locations, Chicago, Los Angeles and New York

!  2 Roasting Facilities and 2 training labs

! Works with over 70 co-ops and farmers in 19 countries

!  Direct to Consumer Retail and E-com Wholesale - Whole Foods, Restaurants

Q & A with Matt Riddle

3 generations of farmers from El Tambor in Guatemala

Q: Regarding sustainability and the environment, what responsibility does Intelligentsia have to the consumer?

A: “Transparency throughout the entire process, starting with a sourcing model in which we work closely with growers. Work that intentionally delivers a higher quality product by increasing the knowledge base of farmers.” ”This, in turn improves the Farmer’s standard of living.”


4 Acre Estate in Nyeri, Kenya

Q: Does Intelligentsia follow any specific sustainability philosophy (Cradle to Cradle, Biomimicry)?

A: Sustainability towards what the farmer is doing. Observational experience based on bio-diversity of growth area. Monitor erosion, water usage. Make sure that cherry pulp is re-used for compost. We visit twice a year.

USDA certification is expensive and time-consuming for grower. 3 years to get certified. Certifications are narrow and many don’t take into account how it improves the quality of coffee.

Quality complements environmental stewardship.

Q: What are the key areas involving sustainability that Intelligentsia excels in?

A: Impact in coffee producing countries. Growing together doesn’t just effect one farmer, but it effects the work force and town and has an exponential effect on the way people are treating their land. We believe in long term relationships and are there for the growers when times are tough.

Reko washing station in the Kochere region of Ethiopia


Q: How does the coffee farmer or tea grower figure into the sustainability of coffee/tea production and the environmental impact of coffee growing?

A: Growers fuel all of the efforts. Grower pesticides can have a huge effect on surrounding towns and populations.

Coopedota – Costa Rica


“We use information from each country to educate farmers in other countries. Our ‘Annual Extraordinary Coffee Workshop’ shares ideas between growers.”

Ahuachapán region, El Salvador El Paradiso farm on the Finca Matalapa estate

Drying on tables versus flat concrete or patios. improvement in quality of flavor profiles. Less labor.

Roaster at Intelligentsia, Chicago

Q: What else does Intelligentsia do to lessen it’s environmental impact?

A: When shipping coffee from originating country, instead of palatalization at origin, now we load directly into a container and unload in Chicago. Send shipments to regional areas based on need. We roast full batches of coffee so that electricity is not wasted. Donate jute bags to local farmers for soil and erosion control as well as compost.


Jute Coffee Bag with Gas Permeable Liner

Q: Is there another key area of sustainability that Intelligentsia focuses on?

A: Infrastructure. Use a permeable bulk bag to maintain quality for longer period of time. Developing a 100% recycled store footprint.

Little things add up over time.


Q: What action would Intelligentsia like from their consumer’s?

A: Research more. Be more knowledgeable about what you are purchasing. Organic is not just the only factor to look into. Don’t fall into the organic trap.


Intelligentsia – HQ Chicago

Q: Can Intelligentsia continue to grow whilst maintaining a commitment to sustainability?

A: We think so. A lot of the farmer’s that we work with work with other companies, but they know that we will be consistent in our offers. That builds trust and loyalty.

Definitely, there is room for growth while maintaining quality.


Sustainability as a Design

Method fuseproject

One Laptop per Child

10-inch OLPC XO Tablet

!  It’s not a laptop project. It’s an education project

!  In 2002, MIT Professor Nicholas Negroponte experienced first-hand how connected laptops transformed the lives of children and their families in a remote Cambodian village.

!  The One Laptop Per Child Association has distributed 2.5 million of the original XO Laptop in 60 countries, and is now launching the a new $150 OLPC tablet in the US as well as in developing countries such as Uruguay, Cambodia and Barbados.

!  Centered around the idea of aspirational "dreams", the main screen is organized around topics rather than applications. A clear hierarchy of information makes tiers of learning within each dream easy to follow and access.

See Better to Learn Better – Augen Optics

Eyeglasses from Augen Optics

!  "See Better to Learn Better" is a free eyeglasses program in partnership with the Mexican government and Augen Optics. A collection of customizable and iconic corrective eyewear that is specifically designed for students, ages 6-18 years old.

!  Children receiving these glasses need frames that are durable, ergonomic and have key customization elements like shape and color that make wearing the glasses fun and personal. The glasses are designed to be worn beyond the classrooms utilizing advanced plastics, with hyper-flexible properties, making them practically indestructible.

Clever Little Bag - Puma

Eyeglasses from Augen Optics

!  The challenge was to look at one of the most difficult and stagnant issues facing the retail industry in regards to sustainability and environmental harm: packaging, and more specifically shoeboxes.

!  Boxes contribute to millions of tons of waste a year and even with proposed second uses, they are eventually thrown out.

!  Through diagrams, photographs and interviews fuseproject documented and mapped the supply chain, indicating key requirements and areas for improvement at each step.

!  Rooted in these insights, fuseproject designed an innovative solution called the ‘clever little bag’, which saves 20 million megajoules of electricity, 1 million liters of water, 500,000 liters of diesel fuel (lighter weight), and 8,500 tons of paper per year. At the same time, the solution is reusable for the consumer, and fully recyclable at the end of its life.

Whole World Water - WWW

WWW On-site Filtered Water

!  WHOLE WORLD Water is a Campaign designed to unite the Hospitality and Tourism Industry on a non-competitive platform to eradicate the issue of planet-wide availability to clean water.

!  Whole World Water replaces high-priced imported waters in hotels with filtered on-site reusable bottles, with 10% of proceeds going to important water programs that benefit the 1 billion people without access to safe and clean water.

Questions and

Discussion Mark Alan Lenox [email protected] www.markalanlenox.com Instagram: mlenox Twitter: @designplebe

Consumer and Corporation Roles

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