Retail Waste

Recommendations for downstream management

systems and upstream design strategies for optimal waste

disposal and minimization

Janna Ross Pratt Institute Sustainable Environmental Systems M.S. Capstone Project

“Who are businesses really responsible to? Their customers? Shareholders? Employees? We would argue that it’s none of the above. Fundamentally, businesses are responsible to their resource base. Without a healthy environment there are no shareholders, no employees, no customers and no business.” Yvon Chouinard Founder of Patagonia

Tab

le o

f Cont

ents

01 Introduction

02 Retail and Waste in the US

03 Corporate Social Responsibility

04 Case Studies and Industry Guidance

05 Client Recommendations

06 The Future of Retail

07 References

08 Appendix

1

Introduction

The fashion industry is the second highest polluting industry in the world after oil1 and is a business

fraught with antiquated, wasteful and inefficient practices. The global negative impacts of this

sector are extensive and include: resource depletion, climate change, animal rights abuses, human

rights abuses, food insecurity, air pollution, water pollution, habitat destruction and waste. With an

increasing public awareness of the “dark side of fashion,” many brands have incorporated

practices that are sustainable and socially responsible. Integration of these strategies is equally

meaningful for mass market and high-end retailers, as both business models can have negative

social and environmental impacts. As framed by the Harvard Business Review, “The companies

that are most vocal about environmental and social issues tend to be big, mass-market brands,

well-known retailers, consumer products giants, and tech firms that are telling a new story to

consumers who increasingly care about sustainability. It may seem that luxury goods companies

would not feel the same pressure, but the high-end brands face important questions about the

way their businesses impact the world. These companies can’t ignore sustainability.”2

The ideologies behind fast fashion and luxury apparel both encourage short-term wear and hyper

consumerism, which is the pressure to consume non-essential goods as a way of defining one’s

identity.3 As a result, 14 million tons of textiles are discarded annually in the US while more than

99% can be recycled or reused, over 85% of this material ends up in landfills.4 The waste from this

sector does not end there. From material sourcing, to production practices, packaging, shipping

and retail store operations, the opportunities for conserving resources and streamlining

inefficiencies are endless. As a working professional in the fashion industry, I have seen firsthand

many opportunities for waste reduction and management in the retail landscape. Waste polices in

the retail and commercial building sectors typically only address downstream waste disposal. This

refers to end of life (EOL) waste management through reuse, recycling, composting and landfilling.

1 Ditty, Sarah. "European Year for Development." Europe in the World: The garment, textiles & fashion industry | European Year for Development. Europa.eu, 01 Sept. 2015. Web. 23 Feb. 2017. 2 Winston, Andrew. "An Inside View of How LVMH Makes Luxury More Sustainable." Harvard Business Review. Harvard Business Review, 12 Jan. 2017. Web. 19 Feb. 2017. 3 Wikipedia contributors. "Hyperconsumerism." Wikipedia, The Free Encyclopedia. Wikipedia, The Free Encyclopedia, 3 Oct. 2016. Web. 23 Apr. 2017. 4 "Pollution and Trash " Reformation. N.p., n.d. Web. 23 Mar. 2017. <https://www.thereformation.com/whoweare#pollutionTrash>.

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Although the first three approaches are preferable to landfilling, the most effective waste

management strategy also includes upstream waste minimization. Designing for sustainability

upstream conserves resources, encourages sustainable material use and considers the

environmental impact of a product’s end of life at its inception. The aim of this research and

recommendations is to provide guidance for implementing downstream waste management

systems and upstream strategies that are specific to retail store operations.

This project is informed by my work in fashion, having most recently been the Visual Merchandising

Manager for the North American wholesale division, of an international brand. This experience, as

well as previous management roles in retail, highlighted the volume of needless waste produced

from product packaging, seasonal visual displays and general store operations (downstream

waste). For example, I have seen how the interior landscape of a retail store transforms many times

a year with each new product season or new merchandise delivery, leaving discarded props for

landfill after only being used for a short period of time. This investigation will delve into downstream

and upstream waste reduction and monitoring strategies as framed around the needs of my client,

Retailer X who is also my previous employer. Retailer X (who has requested to be anonymous) is a

global fashion brand that sells apparel, accessories and lifestyle products in retail stores around the

world. My direct client at the company, runs a one person sustainability department overseeing a

range of environmental initiatives with a focus on production. One space she has not yet been able

to tackle is the integration of sustainable practices in the retail environment, specifically with

regards to downstream waste management and upstream waste reduction. My client has identified

this as an area of opportunity and has subsequentially requested my assistance in creating a

downstream waste audit and monitoring plan. Additionally, she has asked for ideas on ways to

reduce solid waste from product packaging, visual props and other store functions. The ultimate

goal of this project is to provide guidance for my client that lays the foundation for systemic change

concerning waste generation and disposal throughout her entire retail channel. If these waste

strategies are successful, Retailer X could serve as a best practice case study for other brands

owned by the parent company.

3

Retail and Waste in the US To understand why waste management and sustainable retail operations matter to my client, it is

pertinent to first frame these concerns within the greater context of the economic and

environmental impacts of fashion, retail buildings and the presence of waste in the United States.

In the United States the impact of buildings on the environment is substantial, accounting for 30%

of total waste output, 38% of CO2 emissions and 60% of total electricity based on the 2009 LEED

for Retail Commercial Interiors report.5 There are 3.8 million brick and mortar retail locations in this

country, residing in both freestanding buildings and mall shells. Retail accounts for 20% of all

buildings in the United States.6 According to the same LEED report, 21,000 new retail spaces are

built annually, which is 23% of all new commercial construction. Approximately 1,000 new malls

are built each year and are prime candidates for sustainable construction and building operations.

In the US, the retail industry is the largest private sector employer providing 42 million jobs

according to the National Retail Foundation. This sector accounts for about $2.6 trillion dollars of

the annual GDP, which is about 14% of the total GDP.7 Although statistics are not available for the

cumulative waste output of all retail establishments in the United States, understanding the

sector’s economic and physical scope illustrates how this industry contributes greatly to total

commercial waste generation.

In discussing waste data and management

it is important to first note the framework

the Environmental Protection Agency (EPA)

has developed for defining and addressing

non-hazardous waste. The EPA developed

a ranking system for waste management

that illustrates disposal methods from most

preferred to least preferred shown in

5 “LEED 2009 For Retail: Commercial Interiors”, U.S. Green Building Council, last modified January 2016, accessed October 21st 2016. 6 LEED in Motion: Retail. Rep. U.S. Green Building Council, 27 Aug. 2014. Web. 01 Apr. 2017. 7 “The Economic Impact of the U.S. Retail Industry,” National Retail Federation, last modified September 2014, accessed November 29th, 2016.

Figure 1. EPA Sustainable Materials Management

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Figure 1. 8 The EPA created this hierarchy in acknowledgement that “no single waste management

approach is suitable for managing all materials and waste streams in all circumstances,” as noted

on their website. The EPA also outlines the benefits of “Source Reduction & Reuse” and

“Recycling/Composting” on the same site noted below in Figure 2.

It is also important to note that in the United States, commercial waste regulations vary by

municipality, where state and local government mostly dictate legislation for waste disposal. The

Resource Conservation and Recovery Act (RCRA) of 1976 gives the EPA jurisdiction over

hazardous waste management from “cradle-to-grave” (the full life cycle of hazardous waste from

generation to disposal), though states play the “lead role in implementing non-hazardous waste

programs.”9 As also noted on the EPA’s RCRA webpage, “Non-hazardous solid waste is regulated

under Subtitle D of RCRA. Regulations established under Subtitle D ban open dumping of waste

and set minimum federal criteria for the operation of municipal waste and industrial waste landfills,

including design criteria, location restrictions, financial assurance, corrective action (cleanup), and

closure requirement. States play a lead role in implementing these regulations and may set more

8 "Sustainable Materials Management: Non-Hazardous Materials and Waste Management Hierarchy." EPA. Environmental Protection Agency, 12 Apr. 2017. Web. 23 Apr. 2017. 9 "Resource Conservation and Recovery Act (RCRA) Overview." EPA. Environmental Protection Agency, 09 Feb. 2017. Web. 07 May 2017.

Figure 2. EPA Sustainable Materials Management, Right image (https://craftbits.com/project/diy-copper-pvc-wall-planter/) Left Image (https://www.shutterstock.com/search/reduce+reuse+recycle)

• Preserves natural resources!• Conserves energy!• Reduces pollution !• Reduces waste toxicity !• Saves money for businesses

and individuals!

Source Reduction & Reuse (Upstream) !

• Reduces emissions !• Reduces water pollution!• Saves energy !• Supplies raw materials !• Creates jobs!• Stimulates development of green technology !

• Conserves resources !• Reduces need for new landfills and combustors !

Recycling & Composting (Downstream)!

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stringent requirements. In absence of an approved state program, the federal requirements must

be met by waste facilities.”

The EPA classifies source reduction, reuse, recycling and composting as the “most preferred”

methods of waste management, though federal law does not mandate these disposal types. As a

result, local laws vary for recycling and composting and generally there is limited legislation on

waste source reduction and reuse. In addition, commercial waste is either publically or privately

funded depending on the municipality. Regarding downstream waste, this survey does not attempt

to compare and comment on the varying city and regional commercial waste regulations in the US

as my client is specifically focused on Retailer X’s New York City location to first pilot these

recommendations. In light of this, it is important to further detail NYC’s commercial waste

management regulations. Firstly, all businesses are required to recycle metal, glass, plastic,

beverage cartons, paper and cardboard10, though this is not always enforced. Certain businesses,

which meet specific thresholds, are required to separate and recycle textile waste or compost

food, yard or plant waste as well as recycling. Businesses that do not meet these thresholds are

“encouraged” to do so on their own accord. Recycling laws play a valuable role in diverting useful

materials from landfills though the success of such a programs is reliant on stakeholder

participation and compliance. An additional consideration is that commercial waste in New York

City is not publically financed so all disposal pickups (for landfill, recycling etc.) are paid for by the

property owner or tenant. The relevance of this, in regards to retail store waste management, will

be revisited in the next chapter.

Another component of waste management in New York City is the Zero Waste to Landfill goal by

2030 from the mayor’s OneNYC Plan. This project for a “strong and just city” was first released by

the office of Mayor Bloomberg as PlaNYC in 2007 and has evolved under Mayor Bill de Blasio

since he took office.11 This four vision plan addresses goals for healthy growth, equity, sustainability

and resiliency in New York City. Under the sustainability vision plan is the Zero Waste to Landfill

goal by 2030 with sub targets and strategies to achieve 100% waste diversion and recovery by this

date. There are numerous elements of this plan that relate to commercial waste which impact

10 "Recycling for Businesses." DSNY - Zero Waste - Recycling-for-businesses. N.p., n.d. Web. 23 Apr. 2017. 11 One New York The Plan for a Strong and Just City. New York: The City of New York, n.d. PDF.

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building owners, managers and tenants. Initiative 8 of the Zero Waste plan to, “reduce commercial

waste disposal by 90% by 2030” (OneNYC Plan), specifically pertains to this project and my client.

The OneNYC Zero Waste strategies outlined below are specific to commercial waste management

and therefore relevant to note: 1. Conduct a comprehensive study of commercial waste collection zones

2. Encourage periodic waste audits for large commercial buildings

3. Create a Zero Waste Challenge program for large commercial waste generators

4. Review the commercial recycling rules to make recycling easier for businesses

5. Require all food service establishments to source-separate food waste12

Two other components of the Zero Waste plan that are relevant to Retailer X are the textile

collection program Re-fashioNYC and the newly launched donateNYC online portal that provides

residents and businesses with a digital platform to donate and receive other’s unwanted goods.13

These initiatives as they relate to my client will be revisited in the recommendations chapter.

In considering waste, it is also pertinent to understand what materials are the greatest contributors

to the total waste output in the US that end up in landfills, recycling plants or are combusted for

energy. A 2014 report produced by the EPA noted that 258 million tons of municipal solid waste

(MSW) was generated in the United States and a total of 136 million tons or 52.6% was landfilled.

The balance was either recycled / composted (34.6%) or combusted for energy production

(12.8%).14 The figures shown in Figure 3, are from the same report and show the % of total MSW

generated by material compared to the % of that total which was landfilled. Retail waste

contributes to all of these categories except for yard trimmings. Its relevant to note that rubber,

leather and textiles contributed 10% to the total MSW landfilled in 2014. As will be discussed later

in this paper, if retailers provide customer incentives and opportunities to return their unwanted

merchandise, this type of waste could be substantially diverted from landfills. In New York City

alone, 200,000 tons of textiles are thrown away every year, much of which could be recycled or

repurposed.15

12 OneNYC 2016 Progress Report. New York: The City of New York, 2016. PDF. 13 "DonateNYC." DonateNYC - About - donate NYC. The City of New York, n.d. Web. 08 May 2017. 14 EPA Advancing Sustainable Materials Management: 2014 Fact Sheet. Rep. Environmental Protection Agency, Nov. 2016. Web. 15 OneNYC 2017 Progress Report. New York: The City of New York, 2017. PDF.

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MATERIAL COMPOSITION OF 258M TONS OF MSW (2014)

Material % Total MSW 2014 % Total MSW Landfilled 2014

Paper 26.6 14.3 Food 14.9 21.6 Yard trimmings 13.3 7.9 Plastics 12.9 18.5 Rubber, Leather, Textiles 9.5 10.8 Metals 9 9.4 Wood 6.2 8.1 Glass 4.4 5.2 Other 3.2 4.2

Figure 3. EPA Advancing Sustainable Materials Management

Within the confines of this specific project, I will not attempt to quantify what percentage of total

commercial waste is derived from retail stores or what proportion of the material composition

shown above comes from this sector. Compiling that data is an endeavor in and of itself and not

within the boundaries of this research. Alternatively, inclusion of this information from the EPA is

meant to frame the issue of waste in a greater context in the United States. If scalable solutions are

considered through a corporate sustainability policy, applied throughout a brand’s retail network,

the overall environmental impact of buildings could be greatly reduced. Considering the retail

makeup of the built environment and its contribution to the US economy illustrates how meaningful

sustainable practices can be in this realm.

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Corporate Social Responsibility The term Corporate Social Responsibility (CSR) refers to company policies, which address and

take responsibility for the social and environmental impacts of business operations.16 CSR

programs and reports direct corporate environmental initiatives. These strategies are either

developed by an in-house team or in partnership with outside consultants. Such programs are

based on the pillars of the Triple Bottom Line (TBL) framework, which aims to support people, the

planet and profit. TBL is an accounting methodology companies use to evaluate performance and

track the complete cost of doing business inclusive of social responsibility, environmental impacts

and financial profits. A cogent (CSR) program benefits a company’s bottom line, their employees’

and their reputation.

Transparent business practices, which are socially and environmentally conscious, are powerful

marketing tools for building a brand’s customer base and attracting dedicated employees. In

response to market demand, independent research bodies and private corporations alike are

surveying and reporting on the value of triple bottom line programs. For example, Simon is one of

the largest owners of retail real estate in the US, with malls in North America, Europe and Asia. This

company has made various environmental commitments and publishes annual sustainability

reports. Last year, Simon produced a white paper about the environmental and socioeconomic

impact of shopping behaviors noting, “While retailers work hard to deliver convenience and

evolving expectations, shopping behaviors do have environmental and socioeconomic impacts.

Nationally, malls represent greater than 50% of U.S. retail sales, and given the numerous shopping

options today, an increasing number of shoppers are concerned about the environmental impact

of shopping.”17

Another study of interest regarding the impact of CSR initiatives conducted by Cone

Communications in 2015, calculated the below results from the responses of 10,000 global

consumers regarding CSR practices. This data provides a window into the public perception of

corporate sustainability and its value to customers.

16 Staff,Investopedia. "Corporate Social Responsibility." Investopedia. Investopedia, 29 Aug. 2015. Web. 06 May 2017. 17 Does Shopping Behavior Influence Sustainability? N.p.: Simon, Mar. 2016. Pdf.

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• “91% of global consumers expect companies to do more than make a profit, but also operate responsibly to

address social and environmental issues • 71% of global consumers would pay more for a socially or environmentally responsible product • 80% would buy a product from an unknown brand if it had strong social or environmental commitments

84% say they seek out responsible products whenever possible • 90% would boycott a company if they learned of irresponsible or deceptive business practices”18

Regarding environmental impacts, CSR programs outline strategies for reducing energy

consumption, sourcing renewable energy, conserving water and resources in addition to reducing

waste and directing optimal waste disposal. These waste strategies typically focus on downstream

methods that address end of life disposal (EOL) for waste generated at the manufacturing,

corporate or store level by way of reuse, recycling, composting or landfilling. Corporate guidance,

which supports the first three EOL approaches, plays a critical role in reducing a company’s

negative environmental impacts, though these strategies are limited by local regulation, regional

infrastructure, and in leased spaces, the will of the landlord. As a result, tenants are subject to the

interests of the property owner who may or may not be concerned with sustainable operations

such as recycling and compost collection. Additionally, the aim of this project is to consider

strategies that go beyond the conventional approach of addressing the impact of waste on the

environment only through disposal, which is often dictated by external stakeholders.

Because of all the factors mentioned, retail tenants may have more control over monitoring and

minimizing upstream and downstream waste rather than dictating the waste disposal method

used. The United Nations Environmental Programme (UNEP) defines waste minimization as,

“strategies that are aiming to prevent waste through upstream interventions. On the production

side, these strategies are focusing on optimizing resource and energy use and lowering toxicity

levels during manufacture. Strategies that are considered to minimize waste and thus improve

resource efficiency in or even before the manufacturing process are, for example, product design,

cleaner production, reuse of scrap material, improved quality control, waste exchanges, etc. On

the consumption side, waste minimization strategies aim to strengthen awareness and prompt

environmentally conscious consumption patterns and consumer responsibility to reduce the overall

levels of waste generation.”19 As a result of the retail tenant limitations, my upstream

18 2015 Cone Communications/Ebiquity Global CSR Study. Rep. Cone Communications / Ebiquity, 2015. Web. 9 Mar. 2017. 19 “Waste Minimization,” United Nations Environmental Programme Global Partnership on Waste Management. n.d. Web. Apr. 19, 2017.

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recommendations will center on minimization strategies that decrease retail store waste output.

This scope includes waste from product packaging, store packaging, visual props and fixtures in

addition to store office operations.

Since corporate social responsibility programs are the framework for many company’s

environmental initiatives, the purpose of this section is to introduce industry standard practices as

they relate to waste management and address some considerations that are not typically included

in CSR plans. My client recommendations are partially informed by best practices from the CSR

programs of other retail industry leaders that will be outlined in the next chapter.

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Case Studies and Industry Guidance In order to make informed recommendations for my client that align with industry standards, as

part of my methodology I referenced green design guidelines as they relate to retail in addition to

three case studies that serve as best practice examples for waste management and minimization

in this sector. These resources are the CSR programs for Apple, Ikea and Starbucks in addition to

the LEED for Retail Program and USZWB Zero Waste guidelines.

RETAIL INDUSTRY CASE STUDIES Retailer case studies serve as a benchmark and guidance for my client recommendations in

regards to waste management strategies. The corporate sustainability programs outlined here

have informed different elements of a multi-faceted proposal for my client. For brevity, I have

included the most salient components of the CSR programs and specifics on waste management

guidance, which relate to my client.

APPLE

Apple is not only a global leader in consumer electronics but also in corporate sustainability. The

core pillars of their CSR program address the environmental footprint of the company’s entire

supply chain including end of life disposal. The goals set forth in their “2016 Environmental

Sustainability Report,” center on strategies that aim to reduce Apple’s role in climate change,

natural resource depletion and incorporate the use of safe product materials. Apple is one of the

largest users of solar power in the world and 93% of all energy used in 2015 came from renewable

sources. Additionally, 97% of all Apple retail stores globally are powered through 100% renewable

energy, which equals 463 locations of their 475 retail outfits.20 As noted in their Sustainability

Report, of the total CO2 mitigated in 2015, 42,543 metric tons came from 268 retail stores in the

United States, an average of 158 metric tons per retail location. All new retails stores are designed

for energy efficiency through; LED lighting, heating, ventilation, AC systems with strategically

placed windows, insulation, shading and roofing materials.

20 “Environmental Sustainability Report: Progress Report, Covering Fiscal Year 2016,” Apple, last modified September 2016, accessed October 27th 2016.

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Another pillar of Apple’s sustainability program is protecting and preserving natural resources. A

core component of this goal is the Apple Renew program, which allows customers to recycle

qualifying Apple devices. This strategy is highly effective from a resource and cost conservation

perspective, as it benefits both the company and the consumer. Unwanted Apple devices can be

refurbished or dissembled for parts and the customer returning the item receives a gift card for the

products pre-determined value. Considering e-waste is toxic for humans and the environment,

diverting and reusing these valuable materials is highly beneficial. As a result, Apple reported that

since 1994, the company diverted 597 million pounds of e-waste from landfills. Just in 2015, 71%

of the total weight of products sold in the 7 previous years was diverted from landfills, equivalent to

90 million pounds of e-waste. The Apple Renew program serves as a best practice example of a

product giveback program, though of course its success is reliant on consumer awareness and

participation. Even though Apple has taken great strides to implement a comprehensive CSR

program, their business model inherently encourages hyper consumerism and short-term use. The

company has been accused of and sued over claims of built in obsolescence, which is the practice

of, “Incorporating into a product features that will almost certainly go out of favor in a short time,

thereby inducing the consumer to purchase a new model of the product.”21 This design/marketing

strategy has played a significant role in Apple’s financial success, though has contributed to

e-waste and an overall trend in the consumer tech industry. From my perspective, designing

products for durability is the single most impactful step Apple could take to be more sustainable.

Apple has also created an extensive recycling and composting program for their facilities, retail

stores and corporate offices. Given that Apple’s current diversion rate is 63%, waste management

is definitely an area of corporate sustainability that could be improved. In their sustainability report

there is mention of implementing zero waste polices at all of their retail stores, though this seems

to not be a current program or priority. The company uses wood fiber in their packaging and has

committed to; use recycled paper whenever possible, reduce the amount of packaging needed per

product (subsequently using less paper) and invest in forest protection/restoration. Apple’s

environmental commitments are substantial and impactful. Given the global platform Apple has,

any principles and business practices they adopt inherently influence the rest of the industry.

21 "Built-in obsolescence." Dictionary.com. Dictionary.com, n.d. Web. 05 May 2017.

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IKEA IKEA is a mass-market, affordable, furniture retailer with locations throughout the world. As noted

in a case study on sustainability and IKEA, produced by the Harvard Business School (HBS), the

company pursued an aggressive growth plan in 2014 to open 200 new stores with a focus on

emerging markets. In response to this planned expansion, IKEA’s Chief Sustainability Officer Steve

Howard is quoted saying, “Worldwide economic activity, if left unchecked, is already on track to

consuming 150% of planet earth’s resources, and on top of that we will have 3 billion extra

consumers by 2030, mostly from the emerging market countries. If we’re growing as a company,

we have to balance how we use resources to be sustainable. We can grow and be sustainable.” 22

Cited in the same report, IKEA implemented a sustainability plan in 2012 called “People & Planet

Positive” that considered the brand’s “entire value chain,” from sourcing of raw materials to the

lifestyle of their customers. The strategies and goals of this environmental plan became ever more

meaningful two years later when the company was positioned to expand its retail footprint by

almost 70%. As noted in the same case study, Mr. Howard is also quoted saying, “Sustainability is

a driver of growth and is now a fundamental part of our decision making—we have changed the

mindset across the business.”

One of IKEA’s many environmental initiatives

detailed in the company’s sustainability report is

to transition to a circular economy “that turns

waste into resource for new products,” in

addition to designing products that last, using

recycled materials and minimizing waste.

Key strategies for achieving such goals are listed

below from the Sustainability Report FY16 and

specifics for my client will be revisited in the

recommendations chapter.

22 Rangan, V. Kasturi, Michael W. Toffel, Vincent Dessain, and Jerome Lenhardt. "Sustainability at the IKEA Group." Harvard Business School (2015): n. pag. Harvard Business School, Faculty & Research. Harvard Business School, 8 Dec. 2015. Web. 6 May 2017.

Figure 4. Ikea Sustainability Report FY16

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1. “Design products that: • last as long as they are needed and give customers the best value for money • make the most efficient use of resources • use materials that are recyclable, recycled, or renewable, and from more sustainable sources • are easy to care for, repair, adapt, disassemble and reassemble and recycle

2. Produce and distribute goods efficiently by:

• minimizing or eliminating waste through attempting zero waste wherever possible • turning unavoidable waste into resources

3. Supporting customers in prolonging the life of their products by:

• repairing products • renting and sharing products • accepting returned unwanted IKEA products, to be given a second life in another home or recycled into a new product”23

STARBUCKS In 2008, most businesses in the United States were affected in some way by the financial crisis.

Many companies did not survive the economic downturn, while others were forced to reinvent their

business models to remain competitive, profitable and relevant in their respective industries.

Starbucks is a large, global corporation that suffered immensely during this time, laying off

employees and closing stores as detailed in their Global Responsibility Report. In the face of this

financial strain, the company ceased this opportunity to strengthen their existing environmental

commitments and further develop their CSR program, with even more aggressive

targets for 2015 being to:

1. Improve ethical sourcing in coffee and throughout their supply chain

2. Serve their communities and engage young people

3. Decrease environmental footprint from their store operations24

This strategy is admirable, ambitious and fiscally savvy. Now almost 10 years later, Starbucks has

emerged as both a highly profitable business and global leader in corporate sustainability. The

company has made great strides regarding the overarching goals for 2015, though for the sake of

brevity, I will specifically focus on the last initiative, to decrease their environmental footprint from

store operations. As further outlined in the 2015 Global Responsibility Report: “In the areas of environmental performance, we have implemented rigorous green building as a standard ! practice in new construction projects and renovations. In 2008, we had one LEED® certified store, and today, !we have more than 800, including the LEED® Platinum Starbucks® Reserve Roastery and Tasting Room in Seattle. We increased our purchases of renewable energy from 20% in 2008 to 100% in 2015, and exceeded an ambitious water conservation goal, reducing consumption more than 26% over 2008 – from 24 gallons of water per square foot of retail space to fewer than 18 gallons.“

23 Sustainability Report FY16. N.p.: IKEA , 2016. PDF. 24 “Global Responsibility Report 2015,” Starbucks, last modified 2016, accessed October 23rd 2016.

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Furthermore, the company has not only achieved LEED certification for many of their retail stores

but also partnered with the U.S. Green Building Council (USGBC) to develop the existing LEED for

Retail Program.25 Starbucks has committed to green building practices in both new retail store

developments and existing locations and is considering scalable approaches that can be adapted

for different sized retail spaces. In addition to green building for retail, this corporation is also

exploring environmentally responsible building operations and maintenance principles through

energy conservation, water conservation, renewable energy procurement, recycling and waste

reduction strategies.

Starbucks has approached waste minimization through a multi-faceted methodology, which

addresses: improved packaging design guidelines, the offering of reusable cups, advocating for

local recycling infrastructure and back of house recycling practices.26 As identified in their Global

Responsibility report the company has made the below progress in 2015 towards their waste

reduction and management goals.

As noted in Figure 5 from the Global Responsibility Report, most of Starbucks retail spaces are

leased in existing buildings and therefore recycling is reliant on the landlords, haulers and local

regulations. To address potential roadblocks, the corporation has invested in flexible recycling

programs that work in various facilities and tight spaces. Starbucks also engages with local 25 "LEED® Certified Stores." Starbucks Coffee Company. Starbucks, n.d. Web. 23 Apr. 2017. 26 “Recycling & Reducing Waste." Starbucks Coffee Company. Starbucks, n.d. Web. 24 Apr. 2017.

Figure 5. Starbucks Global Responsibility Report 2015

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stakeholders (landlords, haulers and cities) for their assistance to ensure the proper infrastructure is

in place to recycle a retail store’s diverse waste stream.

The initiative from the Starbucks case study that is most relevant for my client is the methodology

used for implementing an extensive recycling program. Firstly, their identification of annual targets

as part of an achievable timeline is a beneficial approach to mimic. The goal of 100% front of

house recycling in the US and Canada is being met through attaining incremental increases on a

yearly basis. For example, in 2014 Starbucks achieved 47% retail recycling in these regions and

then in 2015 59%, as noted in their sustainability report. Considering their volume of stores, an

increase of 10% is acceptable per year. For a smaller company like my client’s, with only a few

stores in the US, a recycling program could be erected in a shorter period of time. Starbucks’

influence and power is a bargaining chip for stakeholders. A smaller and less well-known company

may have far less influence over building managers, haulers and city governments. My client is a

familiar brand, though does not have the same clout as a retailer like Apple or Starbucks with

hundreds or thousands of stores around the world. Regardless, even if Retailer X has only one

store in a mall, if all stores owned by the parent company (in that same location) were to appeal to

the mall owner/building manager with an aligned sustainability strategy, the whole becomes greater

than the sum of its parts. For instance, in some major US mall locations there are up to 10 retailers

under Retailer X’s parent company and they would have more leverage as a unified front. If my

client desires to implement operational retail store initiatives that require approval from the landlord,

I would recommend she align with other retailers under the parent brand to gauge their interest in

participating.

LEADERSHIP IN ENERGY AND ENVIRONMENTAL DESIGN (LEED)

Leadership in Energy and Environmental Design (LEED) is the most commonly used third-party

verification for green buildings in the world, developed by the U.S. Green Building Council (USGBC)

in the early 90’s. Both commercial and residential buildings can achieve any of the 4 levels of LEED

certification through the implementation of sustainable building design and operational strategies.

The intent of LEED certification is to construct and maintain buildings that are efficient, reducing

water and energy use, greenhouse gas emissions and waste. In addition, even though green

buildings may have higher upfront costs, efficient infrastructure and operations result in significant

long-term savings. There are 5 LEED project types; Building Design and Construction (BD+C),

17

Interior Design and Construction (ID+C), Buildings Operations and Maintenance (O+M),

Neighborhood Development (ND) and Homes. 27 Within each project type there are 7-8 credit

categories such as “Water Efficiency” and “Energy and Atmosphere”. The points associated and

total credit categories vary by project type. In 2007, LEED piloted a retail specific program for

BD+C, ID+C and O+M projects to provide a rating system specific to sustainable businesses and

storefronts. As of 2014, almost 8,000 retail stores around the world had participated in the LEED

for Retail program it is estimated that by 2015 52% of all retail owners will engage in green building

development, noted in the previously mentioned “LEED in Motion: Retail,” report. Cited from the

same document, “Retail spaces have a number of unique considerations, from occupancy

demands to waste streams, energy !and water use, that warrant a more niche and specific LEED

offering.”

Guidance from the LEED O+M checklist regarding waste management is most relevant for the

recommendations I am providing to Retailer X. This checklist directly addresses the strategies

outlined in the “Solid Waste Management Hierarchy,” from the EPA mentioned previously in this

report.28 Whether or not my client is interested in pursuing LEED O+M certification, the systems

required in the Materials and Resources credit category shown below in Figure 6, can serve as

reference for industry standard waste strategies. The full checklist for LEED O+M Retail can be

referenced in Appendix A.

Figure 6. Checklist LEED v4 for Building Operations and Maintenance: Retail. 29

27 "Better Buildings are our Legacy." LEED | U.S. Green Building Council. U.S. Green Building Council , 2017. Web. 23 Apr. 2017. 28 "LEED v4." U.S. Green Building Council. U.S. Green Building Council, 2017. Web. 29 Apr. 2017. 29 "Checklist: LEED v4 for Building Operations and Maintenance ." Checklist: LEED v4 for Building Operations and Maintenance | U.S. Green Building Council. U.S. Green Building Council , 01 July 2016. Web. 23 Apr. 2017.

18

Noted below are the most salient strategies for my client, presented in summary from the USGBC

credit library site, specifically regarding the credit “Ongoing Purchasing and Waste Policy.”

Ongoing Purchasing and Waste Policy

Intent: To reduce environmental harm from materials purchased, used and disposed of in the

operations and maintenance of buildings.

Performance Indicators: Conduct a waste stream audit of ongoing waste once every 5 years

or divert 75% of ongoing waste from landfills

Strategies: Environmentally Preferable Purchasing (EPP), Solid Waste Management and

Environmentally Responsible Supply Chain

1. Implement an EPP policy for ongoing purchases (paper, toner, batteries etc.) and durable

goods purchases (electronic office equipment, appliances etc.)

2. Establish storage locations for recyclable material and environmentally preferable solid

waste management plan that addresses reuse, recycling and composting where available

3. Survey suppliers of retail merchandise regarding social and environmental practices,

engage retail employees and retail tenant representatives on environmentally preferable

supply chain strategies, establish criteria for retail products that encourage environmentally

responsible supply chain strategies and/or implement a customer engagement program

which educates customers on retailer’s environmental initiatives30

The LEED certification process is time and cost intensive, requiring robust environmental

commitments in multiple credit categories in partnership with contractors, engineers, architects

and LEED consultants. Regardless of whether or not my client or another retailer has the resources

to pursue certification, the guidance provided through USGBC is researched, exhaustive and

representative of industry standards. As a result, it is a reliable resource for any entity wishing to

implement sustainable practices in their building construction and operations.

U.S. ZERO WASTE BUSINESS COUNCIL (USZWBC) The U.S. Zero Waste Business Council (USZWBC) is an organization (now under the umbrella of

USGBC like LEED), which aids companies in achieving Zero Waste goals through education and

30 "LEED credit library." U.S. Green Building Council. U.S. Green Building Council, n.d. Web. 24 Apr. 2017.

19

performance metrics for sustainable waste management.31 As noted on their site, Zero Waste

businesses are efficient, cost effective, reduce litter, pollution and GHG emissions while managing

risk and creating jobs. It is also noted on their guiding principles page that;

“Zero Waste means designing and managing products and processes to systematically avoid and eliminate the volume and toxicity of waste and materials, conserve and recover all resources, and not burn or bury them. Implementing Zero Waste will eliminate all discharges to land, water or air that are a threat to planetary, human, animal or plant health. Measures of success in meeting this goal are outlined in the ZWIA Zero Waste Business Principles and the Global Principles for Zero Waste Communities. Businesses and communities that achieve over 90% diversion of waste from landfills, incinerators and the environment are considered to be successful in achieving Zero Waste.” 32

USZWBC has a certification checklist that can be used as guidance for implementing waste

reduction and management strategies. I have outlined below in Figure 7, the credits for my client

that would be beneficial to consider for a zero waste strategy and the complete certification

checklist is included in Appendix B. The guidance and goals outlined, as with those from the LEED

checklist could be pursued regardless of

obtaining the USZWBC certification. The

credits highlighted on the right are derived

directly from the checklist and are actions

that could be executed within a tenant’s

purview and my client’s reach. To note,

there is overlap between relevant LEED

credits and USZWBC so these credits

reflect strategies not already outlined in the

LEED section. This will also be revisited in

the recommendations section regarding

specifics for my client.

31 "Vision and Mission." U.S. Zero Waste Business Council. U.S. Zero Waste Business Council, 2016. Web. 24 Apr. 2017. 32 "Guiding Principles." U.S. Zero Waste Business Council. U.S. Zero Waste Business Council, 2016. Web. 24 Apr. 2017.

1. Design out or eliminate waste

2. Review supply chain 3. Track material flows to eliminate waste

4. Reduce size/amount of product packaging 5. Implement paperless-office program 6. Document 90% diversion or better

7. Track landfill costs, avoided costs and recycling revenue

8. Include Zero Waste in Climate Change Report 9. Adopt Zero Waste goal

10. Annual physical waste analysis 11. Complete recommendations from analysis

12. Staff engaged in waste and recycling analysis 13. Suppliers eliminate non-recyclable packaging

14. Implement 100% recyclable packaging 15. Upcycle non-traditional recyclable materials

Figure 7. USZWBC Certification Checklist.

20

Client Recommendations COMPANY BRIEF AND CSR OPPORTUNITIES Retailer X is an American luxury brand headquartered in New York City that sells products in brick

and mortar retail stores, online and through global wholesale partnerships. The company is owned

by a luxury conglomerate, which also has 70 other brands in its portfolio. Retailer X has 9 retail

stores in the United States in California,

Florida, Illinois, Massachusetts, Nevada and

New York. Of these locations, 4 of them are

outlet storefronts. My client requested this

waste management project be focused on

New York City retail locations as a pilot

plan. If the program is effective, she may

consider scaling the recommendations for

all other US retail locations.

Sustainability guidance for Retailer X comes from both the parent company and my direct client

who oversees their CSR program. Retailer X’s CSR initiatives are primarily focused on production

compliance in order to meet ethical and legal standards in addition to responsible material

sourcing. These are difficult systems to manage and are solely driven by my client, commanding

the bulk of her attention. As a result, my client has not had the bandwidth or upper management

support to develop sustainability governance for retail store operations. Organizations that have

robust CSR programs that concurrently focus on a myriad of environmental issues, allocate entire

teams, taskforces and/or the financial resources necessary to hire outside consultants. Because

Retailer X does not have the budget for an environmental team, my client exclusively manages all

environmental initiatives for the company. Developing and integrating a comprehensive corporate

social responsibility plan that tackles the environmental impact of all business operations, like in the

case of Apple, is a complex and time intensive process requiring the expertise of diverse

professionals.

In light of my client’s primary responsibilities at Retailer X and her desire to expand her reach to

sustainable store operations, she has requested my help with creating a blueprint for a retail waste

Figure 8. Retailer X store locations, PowerPoint template.

21

management plan. The parent company has a "Store Questionnaire”, which is the only corporately

produced material available for measuring sustainable practices in their retail stores. This is an

optional monitoring tool that is not currently being used by Retailer X because it lacks direct

guidance on how to execute sustainable store initiatives. Instead, it primarily addresses sustainable

indicators and metrics without the means for collecting such data. In considering the opportunities

my client has outlined, my recommendations address separate, yet interconnected factions of a

successful waste management plan in addition to collated, relevant guidance from industry CSR

programs and standards. As a result, the following recommendations are for a Waste Auditing and

Management Plan (addressing downstream waste management) and Upstream Waste Reduction

Measures. Also considered are strategies for engaging and incentivizing store employees and other

stakeholders to adopt, monitor and enforce waste reduction strategies in the retail environment.

The following chapter includes my recommendation document, which is designed as a standalone

tool for my client. This collateral presents the most relevant research in a brief, business format

alongside my recommendations. My client can also refer back to the full research paper and

appendix for additional, in depth information.

Waste Management PlanDownstream management and upstream design recommendations for Retailer X

Prepared by Janna Ross In partnership with Pratt Institute M.S. Sustainable Environmental Systems Capstone Project

Waste Management Plan2

Recommendation 01

1. Provide recommendations on how to create a waste management plan for Retailer X’s retail stores, using the New York City stores as a pilot.

2. Provide collated information on NYC’s commercial waste management regulations and voluntary programs which relate to Retailer X.

3. Provide references to relevant case studies and industry standards regarding waste management.

OBJECTIVES

Waste Auditing and Management Plan360 Days | 4 Phases

1-30 Days

Engagestore employees and stakeholders

30-90 Days

Assessexisting store

conditions regarding waste

90-270 Days

Analysedata and

benchmark against industry

standards

270-360 Days

Implementstrategies for optimal waste management

PHASE 01 PHASE 02 PHASE 03 PHASE 04

Waste Management Plan 3

Phase 01

1. Provide store management team with survey (see page 4) regarding existing waste management practices. This tool will aid the sustainability team in understanding the current waste disposal methods and the store employee’s role in store waste systems.

2. Sustainability Manager to host an open forum at the retail store to discuss feedback provided from the waste survey in addition to introducing commercial waste regulations/programs in NYC to the store employees. This also provides an opportunity to discuss the company’s overall environmental position and CSR initiatives.

3. Discover if the store is compliant with NYC commercial waste regulations and if not identify obstacle(s).

4. Schedule exploratory meeting with landlord and/or building manager to discuss waste disposal processes in building.

ENGAGE STORE EMPLOYEES AND STAKEHOLDERS

References

DSNY COMMERCIAL WASTE REGULATIONS & ZERO WASTE GOALS

U.S. ZERO WASTE BUSINESS COUNCIL (USZWBC)

• All businesses required to recycle metal, glass, plastic, beverage cartons, paper and cardboard. (http://www1.nyc.gov/assets/dsny/zerowaste/businesses.shtml)

• OneNYC Zero Waste target to reduce commercial waste 90% by 2030.• OneNYC Zero Waste initiatives encourage periodic commercial waste audits and potential revisions

to commercial recycling laws pending. (https://onenyc.cityofnewyork.us/visions/sustainability/)

• Staff engagement in waste and recycling analysis (https://www.uszwbc.org)

Waste Management Plan4

To be completed by one or more members of the store management team

Retail Waste Survey

1. Does your store recycle on-site? (If not skip to question 4)

2. Who is responsible for separating trash from recycling? Are employees directly responsible for recycling on site in designated bins or is the responsibility of the store’s maintenance team?

3. What type of materials does your store recycle?

4. If you store does not recycle, why not and what are the obstacles?

5. From your observation how would you rank the below categories of waste from most to least in your waste stream? (4 most – 1 least) a. Cardboard b. Paper that can be recycled c. Plastic that can be recycled d. Product packaging e. Visual props and elements

6. Are there any store operations you feel produce an unnecessary amount of waste? If so, how do you think these processes could be changed?

7. In general, do customers express interest in sustainability and ask about sustainable practices at Retailer X?

8. Have any shoppers or employees expressed interest in a textile “take back” program where customers can return unwanted apparel?

9. If provided the proper tools to easily track your store’s waste (type, quantity etc.) for a period of time, do you think this would be manageable and would you be willing to assist in this process?

10. Would you like to learn more about sustainability at Retailer X?

11. Do you have any additional comments?

Waste Management Plan 5

Phase 02

1. Execute waste audit for retail store (recommend hiring an outside consultant to perform audit).

2. Compile data from audit on waste streams and waste disposal methods to establish baseline.

3. Track waste weight and costs for 1 month for: total waste generated, total waste sent to landfill, total waste recycled, total waste reused.

ASSESS EXISTING STORE CONDITIONS REGARDING WASTE

ReferencesU.S. ZERO WASTE BUSINESS COUNCIL (USZWBC)

• Track material flows to eliminate waste • Track landfill costs, avoided costs and recycling revenue • Track waste weight and costs

Source: “Methodology for Gathering and Recording Baseline Data.” USZWBC PDF.

Waste Management Plan6

Phase 03

1. Analyse data to determine main waste streams.

2. Determine waste diversion opportunities based on waste streams.

3. Benchmark results of audit against industry standards, is Retailer X aligned or better or worse in terms of recycling rates and total waste output when compared to other retailers?

4. Develop overall waste management strategy based on data collected with achievable short and long term recycling and waste diversion goals. Suggest the below targets:

• Year 1 30% diversion rate

• Year 2 60% diversion rate• Year 3 90% diversion rate (Zero Waste)

ANALYSE DATA, BENCHMARK AND DEVELOP STRATEGY

References

U.S. ZERO WASTE BUSINESS COUNCIL (USZWBC)• Design out or eliminate waste • Document 90% diversion or better

Waste Management Plan 7

Phase 04

1. Implement waste management plan informed by the analysis phase.

2. Waste management plan should include monthly waste monitoring and tracking. Annual reports should be produced.

3. Adopt recycling and diversion goals.

4. Sustainability Manager in partnership with Store Operations Manager assign store employee roles in regards to monitoring and tracking waste.

5. Re-engage landlord/property manager to review final strategy and gain support.

6. Establish or reconfigure (based on findings) waste / recycling storage on-site to support goals.

7. Implement textile giveback program to customers where unwanted items can be returned to the store and recycled. Partner with existing city program Re-FashioNYC for free textile recycling.

8. Upcycle other recyclable materials, like waste from visual props and fixtures. Explore partnerships with the below organizations for managing non-traditional waste streams:

• Evrnu: http://www.evrnu.com/• DonateNYC: https://www1.nyc.gov/assets/donate/index.shtml• TerraCycle: https://www.terracycle.com/en-US/• Thread International: http://www.threadinternational.com/

IMPLEMENT STRATEGIES FOR OPTIMAL WASTE MANAGEMENT

U.S. ZERO WASTE BUSINESS COUNCIL (USZWBC)

LEADERSHIP IN ENERGY AND ENVIRONMENTAL DESIGN (LEED)

• Track landfill costs, avoided costs and recycling revenue • Include Zero Waste in Climate Change Report• Adopt Zero Waste goal• Annual physical waste analysis • Complete recommendations from analysis

• Establish storage locations for recyclable material and environmentally preferable solid waste manage-ment plan that addresses reuse, recycling and composting where available (http://www.usgbc.org/cred-its/retail---existing-buildings/v4)

References

Waste Management Plan8

Recommendation 02

1. Provide industry guidance for product and store packaging that reduces waste output.

2. Suggest store packaging policy that reduces material used for customer purchases.

3. Recommendations for a Standard Operating Procedure (SOP) to address the re-usability and recyclability of visual props and fixtures.

4. Suggest Environmentally Preferable Purchasing (EPP) policy for ongoing purchases and paperless office program.

OBJECTIVES

Upstream Waste Reduction Strategies

Guidance for product packaging and

store packaging that reduces waste and employs

sustainable materials.

Standard operating procedure (SOP) for designing and disposing of props

and fixtures.

EPP and paperless office

program to reduce waste produced from operations.

Packaging Visual

Props and Fixtures

Office Operations

Waste Management Plan 9

Industry guidance for product and store packaging that reduces waste output. (Reference IKEA and Apple case studies for best practice examples)

Packaging

Packaging Guidelines

• Use only product and store packaging materials that are recyclable or made from recycled material

• Design product packaging that uses materials efficiently

• Reference “Sustainable Packaging Coalition” for guidance and tools (http://greenblue.org/)

Store Packaging Policy

• Implement policy for store packaging that reduces material provided to customers with purchases

• Charge customers a small fee for the use of a shopping bag or gift packaging

• Provide a credit for customers if they do not require packaging with purchase

• Eliminate the use of tissue paper

1 2

Office Operations Environmentally Preferable Purchasing (EPP) policy for ongoing purchases and paperless office program.

Environmentally Preferable Purchasing

Ongoing Purchasing and Waste Policy (Below from LEED Credit Library) • Reduce environmental harm from materials purchased, used and disposed of in the

operations and maintenance of buildings. • Implement an EPP policy for ongoing purchases (paper, toner, batteries etc.) and durable

goods purchases (electronic office equipment, appliances etc.) • Survey suppliers of retail merchandise regarding social and environmental practices,

engage retail employees and retail tenant representatives on environmentally preferable supply chain strategies

Paperless Office Program• Convert existing paper office systems to digital format • Eliminate paper receipts, move to e-receipts only

1

Waste Management Plan10

Because the retail space and visual props transform numerous times a year, establishing protocol that considers the design and disposal of these items will lower production costs and decrease waste.

DESIGN PROPS FOR PREFERABLE EOL DISPOSAL • Design props to be modular, so that they can broken down

by material and individual parts can be reused or recycled• When prop is branded ensure the logo is removable so

that it can be reused or recycled rather than destroyed

DEVELOP EOL PROTOCOL FOR PROPS AND FIXTURES• Identify companies in the stores region that offer buyback

programs or purchase scrap materials• Identify key recycling programs in each region for each

material type

MATERIALS AND RECLAIMED FIXTURES • Source sustainable materials whenever possible for new

props• Develop approved material list for prop manufacturers • Source reclaimed fixtures and props whenever possible

Visual Props and Fixtures

SOP for Visual Props and Fixtures

32

The Future of Retail It is undeniable that the function and relevance of physical retail stores has and will continue to

change. With the proliferation and success of online retailing the existing trend of brick and mortar

retailers going bankrupt and/or shuttering locations is accelerating. Even though consumer

spending is up, the majority of this growth is attributed to online sales, according to a recent NPR

story.33 As also noted in a Bloomberg article from April, “The shuttering of U.S. retail stores is on a

record pace so far this year.”34

Illustrated in Figure 9 from the

same Bloomberg report, there

are over 8,000 projected store

closures for 2017. This even

outpaces the volume of brick

and mortar stores that closed in

2008 and 2009 during the

economic recession. Over the

last few years, Retailer X has

gone through numerous restructuring plans, laying off hundreds of store and corporate employees

as a result of retail locations closing and sluggish sales.

Matthew Shay of the National Retail Federation discussed this sea change in the industry noting,

“The velocity of change is unlike anything we’ve ever seen. Before, things happened over a

generation; now they’re happening overnight.” (NPR, “Retailers Scrambling To Adjust To Changing

Consumer Habits”). Most large and many small companies have adopted an omni-channel retail

model, which is the blend of both physical and digital shopping experiences through retail stores

and mobile platforms,35 to meet consumer needs and stay competitive with online retail giants like

Amazon. Even though traditional retailers are diversifying their shopping experiences, in this “new

day”, the function of the brick and mortar retail store will inevitably continue to change for both 33 National Public Radio. Retailers Scrambling To Adjust To Changing Consumer Habits. N.p., n.d. Web. 11 May 2017. 34 Rupp, Lindsey, Lauren Coleman-Lochner, and Nick Turner. "Stores Are Closing at a Record Pace as Amazon Chews Up Retailers." Bloomberg.com. Bloomberg, 07 Apr. 2017. Web. 11 May 2017. 35 "Omnichannel retail - A guide for digital marketing professionals." Storm81. N.p., 19 Apr. 2016. Web. 11 May 2017.

Figure 9. Bloomberg, "Stores Are Closing at a Record Pace as Amazon Chews Up Retailers."

33

customers and brands. The physical store environment will not cease to exist, though the volume

of retail stores will be far less and their dominant purpose will be to provide a brand experience for

the customer, rather than a transaction.

I have concluded through this research and professional experience that there is a strong industry

shift in the retail sector towards sustainable business operations. In this evolving landscape the role

of environmentally and socially responsible practices will be ever more important. Customer

demand fuels change in the business world and much of the information presented in this project

supports the idea that consumers increasingly care more about transparency and sustainability. In

addition, the millennial customer is the fastest growing group of customers in the US with

substantial purchasing power. “Despite the fact that Millennials are coming of age in one of the

most difficult economic climates in the past 100 years, a recent Nielsen global online study found

that they continue to be most willing to pay extra for sustainable offerings—almost three-out-of-

four respondents in the latest findings, up from approximately half in 2014. The rise in the

percentage of respondents aged 15 - 20, also known as Generation Z, who are willing to pay more

for products and services that come from companies who are committed to positive social and

environmental impact was also strong—up from 55% in 2014 to 72% in 2015.”36 In light of these

findings, retailers will benefit greatly from offering a store experience that is innovative and is

grounded in sustainable practices. Also from a brand’s perspective, it will be highly advantageous

to keep store operating costs low. Incorporating environmentally conscious approaches in their

business model will provide numerous benefits including to their bottom line.

The recommendations presented through this inquiry for Retailer X serve as a foundation and

baseline for piloting a waste management plan, which properly manages disposal and reduces

waste upstream. Even though this framework only addresses one component of my client’s

business operations, this guidance can assist in making Retailer X more profitable and marketable

while lessening their negative impact on the environment.

36 "Newswire " Green Generation: Millennials Say Sustainability Is a Shopping Priority. Nielsen, 05 Nov. 2015. Web. 23 Apr. 2017.

34

References SOURCES CITED IN FOOTNOTES 1. Ditty, Sarah. "European Year for Development." Europe in the World: The garment, textiles & fashion

industry | European Year for Development. Europa.eu, 01 Sept. 2015. Web. 23 Feb. 2017.

2. Winston, Andrew. "An Inside View of How LVMH Makes Luxury More Sustainable." Harvard Business

Review. Harvard Business Review, 12 Jan. 2017. Web. 19 Feb. 2017.

3. Wikipedia contributors. "Hyperconsumerism." Wikipedia,The Free Encyclopedia. Wikipedia, The Free

Encyclopedia, 3 Oct. 2016. Web. 23 Apr. 2017.

4. "Pollution and Trash." Reformation. N.p., n.d.Web. 23 Mar. 2017.

<https://www.thereformation.com/whoweare#pollutionTrash>.

5. “LEED 2009 For Retail: Commercial Interiors”, U.S. Green Building Council, last modified January 2016,

accessed October 21st 2016.

6. LEED in Motion: Retail. Rep. U.S. Green Building Council, 27 Aug. 2014. Web. 01 Apr. 2017.

7. “The Economic Impact of the U.S. Retail Industry,” National Retail Federation, last modified September

2014, accessed November 29th, 2016.

8. "Sustainable Materials Management: Non-Hazardous Materials and Waste Management Hierarchy." EPA.

Environmental Protection Agency, 12 Apr. 2017. Web. 23 Apr. 2017.

9."Resource Conservation and Recovery Act (RCRA) Overview." EPA. Environmental Protection Agency, 09

Feb. 2017. Web. 07 May 2017.

10. “Recycling for Businesses." DSNY - Zero Waste - Recycling-for-businesses. N.p., n.d. Web. 23 Apr.

2017.

11. One New York The Plan for a Strong and Just City. New York: The City of New York, n.d. PDF.

12. OneNYC 2016 Progress Report. New York: The City of New York, 2016. PDF.

13. "DonateNYC." DonateNYC - About - donate NYC. The City of New York, n.d. Web. 08 May 2017.

14. EPA Advancing Sustainable Materials Management: 2014 Fact Sheet. Rep. Environmental Protection

Agency, Nov. 2016. Web.

15. OneNYC 2017 Progress Report. New York: The City of New York, 2017. PDF. 16. Staff, Investopedia. "Corporate Social Responsibility." Investopedia. Investopedia, 29 Aug. 2015. Web. 06 May 2017.

17. Does Shopping Behavior Influence Sustainability? . N.p.: Simon, Mar. 2016. PDF.

18. 2015 Cone Communications/Ebiquity Global CSR Study. Rep. Cone Communications/ Ebiquity, 2015.

Web. 9 Mar. 2017.

19. “Waste Minimization,” United Nations Environmental Programme Global Partnership on Waste

Management. n.d. Web. Apr. 19, 2017.

35

20. “Environmental Sustainability Report: Progress Report, Covering Fiscal Year 2016,” Apple, last modified

September 2016, accessed October 27th 2016. 21. "Built-in obsolescence." Dictionary.com. Dictionary.com, n.d. Web. 05 May 2017.

22. Rangan, V. Kasturi, Michael W. Toffel, Vincent Dessain, and Jerome Lenhardt. "Sustainability at the IKEA

Group." Harvard Business School (2015): n. pag. Harvard Business School, Faculty & Research. Harvard

Business School, 8 Dec. 2015. Web. 6 May 2017.

23. Sustainability Report FY16. N.p.: IKEA , 2016. PDF.

24. “Global Responsibility Report 2015,” Starbucks, last modified 2016, accessed October 23rd 2016.

25. "LEED® Certified Stores." Starbucks Coffee Company. Starbucks, n.d. Web. 23 Apr. 2017.

26. “Recycling & Reducing Waste." Starbucks Coffee Company. Starbucks, n.d. Web. 24 Apr. 2017.

27. "Better Buildings are our Legacy." LEED | U.S. Green Building Council. U.S. Green Building Council,

2017. Web. 23 Apr. 2017. 28. "LEED v4." U.S. Green Building Council. U.S. Green Building Council, 2017. Web. 29 Apr. 2017. 29. "Checklist: LEED v4 for Building Operations and Maintenance." Checklist: LEED v4 for Building

Operations and Maintenance | U.S. Green Building Council. U.S. Green Building Council, 01 July 2016. Web.

23 Apr. 2017.

30. "LEED credit library." U.S. Green Building Council. U.S. Green Building Council, n.d. Web. 24 Apr. 2017.

31. "Vision and Mission." U.S. Zero Waste Business Council. U.S. Zero Waste Business Council, 2016. Web.

24 Apr. 2017.

32. "Guiding Principles." U.S. Zero Waste Business Council. U.S. Zero Waste Business Council, 2016. Web.

24 Apr. 2017.

33. National Public Radio. Retailers Scrambling To Adjust To Changing Consumer Habits. N.p., n.d. Web. 11

May 2017.

34. Rupp, Lindsey, Lauren Coleman-Lochner, and Nick Turner. "Stores Are Closing at a Record Pace as

Amazon Chews Up Retailers." Bloomberg.com. Bloomberg, 07 Apr. 2017. Web. 11 May 2017.

35. "Omnichannel retail - A guide for digital marketing professionals." Storm81. N.p., 19 Apr. 2016. Web. 11

May 2017.

36. "Newswire." Green Generation: Millennials Say Sustainability Is a Shopping Priority. Nielsen, 05 Nov.

2015. Web. 23 Apr. 2017. ADDITIONAL SOURCES 1. Braugart, Michael and McDonough, William. Cradle to Cradle: Remaking the Way We Make Things. New

York, NY: North Point Press, 2002.

2. Braugart, Michael and McDonough, William. The Upcycle: Beyond Sustainability – Designing for

Abundance. New York, NY: North Point Press, 2013.

36

3. Anderson, Bridget. "Solid Waste " Mini Course for Pratt Institute. Pratt Institute, Brooklyn. 12 Feb. 2017.

Lecture.

4. Yudelson, Jerry. Sustainable Retail Development: New Success Strategies. London, New York: Springer +

Science + Business Media B.V., 2009.

5. Meadows, Dru and Spiegel, Ross. Green Building Materials; A Guide to Product Selection and

Specifications. Hoboken, NJ: John Wiley & Sons Inc., 2012.

6. Daniel Brook, “MisLEEDING,” Scientific American, 2008, pg 54-59.

7. Mehalik, Matthew M., Gould, Court and Edwards, Beth, “Making Major Retail Establishments Sustainable:

The Case of the Mall at Robinson.” Journal of Green Building, pg. 1-22.

8.“The Rise of Green Building,” The Economist, December 2nd 2014. (no author listed)

9.Re-FashioNYC Free Clothing and Textile Recycling." NYC.gov. NYC.gov, June 2014. Web. 24 Apr. 2017.

<http://www1.nyc.gov/assets/dsny/downloads/pdf/promotional-materials/re-fashionyc-brochure-re-fa-

f.pdf>.

37

APPENDIX A LEED v4 Operations & Maintenance: Retail

38

APPENDIX B Zero Waste Checklist

39