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Pharmacy Joins the Green Revolution
FMI Supermarket Pharmacy ConferenceSeptember 14, 2009
Robert P. Garrity
Agenda
Sustainability Definition/Scope
Sustainability: A Growing Issue
Company Perspective: One Company’s Approach
Pharmacy Opportunities
Definition / Scope
SUSTAINABILITYBusiness practices that promote the long-term
well-being of the environment, society and the bottom line
Senior Management
Toolkit & other Resources
Sour
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Retail Sustainability
A Growing Issue
Growing Issue: January, 2009 FMI Board PresentationMember Engagement in Sustainability
22 Board Member Companies
Task Force = 26 Companies4 Wholesalers
13 National or Regional Chains4 Independent Operators2 Canadian Chains3 Global Companies
Seafood Group = 20 Companies Carbon Group = 8 Companies3 Wholesalers 1 Wholesaler9 National or Regional Chains 5 National/Regional Chains3 Independents 1 Independent2 Canadian Chains 1 Global Company3 Global Companies
Growing Issue: January, 2009 FMI Board Presentation
Ahold USABuehler Food Markets, Inc.The Great A and P Tea Company, Inc.Hannaford Bros. Co.Harris Teeter, Inc.Hy-Vee, Inc.The Kroger Co.Loblaw Companies Ltd.Lund Food HoldingsPrice ChopperPublix Super Markets, Inc.
Raleys Family of Fine FoodsSafeway, Inc.Save Mart SupermarketsSchnuck Markets, Inc.SobeysSUPERVALU INC.Save Mart SupermarketsTarget CorporationUkrops Super Markets, Inc.Unified Grocers, Inc.Wal-Mart Stores, Inc.Wakefern Food CorporationWegmans Food Markets, Inc.
Growing Issue: January, 2009FMI Board Presentation
Sustainability 101Plastic Bag Policy and BackgroundersFMI Website – Collection of free resources + research
www.fmi.org/sustainability/Sustainability Starter KitIndustry EngagementUS Pork Council Cornell University American Meat InstituteRILA U.S. Chamber of Commerce American Society Assn. Execs.ROFTA National Fisheries Institute FMI ConventionANTAD Dairy Council Wal-Mart Sustainability IndexFMI Events University of Arkansas Portland State UniversityState Retail Assns. University of California Davis
Sustainability Summit – 350 attendeesLaunched Carbon and Seafood Groups
2007-2008 Completed Projects
Growing Issue: January, 2009 FMI Board Presentation
Carbon ProjectFree industry resources developed by STF with MBA students at Penn State and Verisae
The Carbon 101 ToolkitWhat is it and why should we care?Guidelines for strategy developmentIdentifies financial, legislative, market opportunitiesCase studies showcase long-term valueNavigation tools – organizations, government, experts
The Calculator Confidential snapshot of your company emissions Identify opportunities to reduce costsFor FMI members = industry aggregates for comparisonProactive preparation for upcoming legislationPositions industry to set voluntary reduction goals
Average Supermarket Footprint
Growing Issue: January, 2009 FMI Board Presentation
Growing Issue: January, 2009 FMI Board Presentation
FMI supports programs to promote a sustainable supply of seafood
FMI encourages the followingLearn about issuesUtilize sustainable seafood resourcesDevelop individual company procurement policies for sustainable seafoodConsider sustainable seafood certification programs
FMI will partner with suppliers, government advocacy groups and other experts to assure long-term viability of seafood supply
FMI Sustainable Seafood Working Group will develop voluntary industry guidelines to be presented to FMI Board in 2009
Proposed Industry Position on Sustainable Seafood
Growing Issue: January, 2009 FMI Board Presentation
Our Understanding is Growing
80% of opportunity in supply chain = collaboration
Thoughtful “Stakeholder Engagement” is valuable
Water is the next “carbon”
Goals, measurements, metrics complement best practices
Sustainability will be embedded in all parts of our business and decisions – it will “go without saying”
Growing Issue: January, 2009 FMI Board Presentation
Sustainability Task Force is Evolving
StakeholdersGMA &
Suppliers
Growing Issue: January, 2009 FMI Board Presentation
Working GroupsEvolutionary - based on current or over the horizon issues
SustainableSeafood
FMI Sustainability Task Force8 Executive Committee Members, 26 Member Companies
SustainableAgriculture
SustainablePackaging
Carbon Footprint
Water Footprint
Green Building
GMA & Supplier Advisory Group Stakeholder Advisory GroupGovernment, Experts, NGO’s, Universities
Growing Issue: Coca-Cola Retailing Research Council
Growing Issue: Coca-Cola Retailing Research Council
Reducing Waste
Reducing Carbon
Developing Sustainable Agriculture
Growing Issue: Coca-Cola Retailing Research Council
Growing Issue: Coca-Cola Retailing Research Council
Growing Issue: Coca-Cola Retailing Research Council
Growing Issue: In the NewsWal-Mart to Increase Company’s Sustainability Focus:
Current Wal-Mart CEO Lee Scott “began the retailer’s environmental push in 2005, outlining plans to one day use only renewable energy and creating zero waste. The efforts have been seen as a way for Wal-Mart to improve its reputation, help the environment and cut costs.Reuters reports that incoming Wal-Mart CEO Mike Duke plans to “accelerate” and “broaden” the company’s sustainability initiatives, saying at a Sustainability Milestone Meeting this week, “I am very serious about it. It’s not something of the past. This is all about the future.”In related news, Dow Jones reports that Wal-Mart's Canada division plans a new environmentally themed private label program called “For the Greener Good.”
Morning News Beat, January 28, 2009
Growing Issue: In the NewsAmerican Grocery Shopper Study from Brand Spark International - 50,000 U.S. shoppers:
70% of consumers feel motivated to buy products that are better for the environment, but only 40% are willing to pay more for them75% of consumers believe that some companies are exploiting environmentally friendly claims for marketing purposes (a practice known as 'green-washing')58% of shoppers consider it important for a new product they purchase to be "natural"78% of shoppers believe that manufacturers have a long way to go to reduce the amount of packaging used68% expressed increased concern about chemicals in food products, compared to 63% for household products and 57% for skin-care products
The Wise Marketer! February 12, 2009
Company Level Perspective:
One Company’s Approach
Conceptual Work Design
Low:
•Ambiguous Definition
•No Goals
•No workflow
High:
•Clear Definition
•Stated Goals
•Optimized Workflow &Design
No LineParticipation
Total LineResponsibility
Ownership
Issu
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atur
ity
SustainabilityIssue
Conceptual Work Design Example: Sustainable Seafood
Issue: Global seafood supplies not keeping up with demand
First Identified to Company: FMI Sustainability Task Force, Winter, 2008
Approach:Discussions with Merchants, May, 2008Conflicting industry views: NFI, NGOs, Governments, Certification GroupsCreated FMI Sustainable Seafood Working Group with Merchant participation, August, 2008Evaluated NGO relationships and selected partner, Fall, 2008 Established Seafood Procurement Policy, December, 2008Signed on to “Common Vision” January 2009Line currently establishing work plan for clarity of issue, NGO partner role, education of team members, sustainable species offerings and customer communication.
Conceptual Work Design Example: Sustainable Seafood
May 2008
August 2009
Low:
•Ambiguous Definition
•No Goals
•No workflow
High:
•Clear Definition
•Stated Goals
•Optimized Workflow & Design
No LineParticipation
Total LineResponsibilityOwnership
Issu
e M
atur
ity
The Green Revolution:
Pharmacy Opportunities
Pharmacy Opportunities: Waste Reduction
Reduced Paper Usage:“Wegman’s Food Markets here has cut its paper usage in pharmacy perscription refill information to the tune of 10 million fewer pieces of paper a year.” SupermarketNews, July 28, 2009
Recycling Plastic:“Green” Packaging Initiative
Reuse Supply Bottles
Pharmacies
Re-processor
Pharmacy Opportunities: Medicine Disposal
Extended Producer Responsibility (EPR) a.k.a. Product StewardshipA government strategy to place responsibility for end of life management of products and associated packaging on producers andconsumers rather than on taxpayers or local governments.
Product Policy Institute www.productpolicy.org
“Group asks companies to pay for medicine disposal”National Association of Counties adopted a policy supporting producer responsibility for unwanted medicines
Waste & Recycling News, July 30, 2009
SMARxT Disposal: Promoting Responsible Consumer Medication Disposal to Ensure Healthy Aquatic Ecosystems
National public awareness campaignPartnership: American Pharmacists Association, U.S. Fish & Wildlife Service, Pharmaceutical Research and Manufacturers of America
www.SMARxTdisposal.net
Pharmacy Opportunities: Common Challenges
HIPAA
Costs
Change
Priority
Pharmacy Opportunities: Take a Stand
Interface with company sustainability effortsDefine Pharmacy specific sustainability objectivesConsider Pharmacy industry position and collaboration opportunitiesLeverage supplier initiativesLearn from stakeholder insights (no blind eye)Talk to & more importantly listen to the customerGet started…
Pharmacy Joins the Green Revolution
“Trusted Professional” carries an implicit obligation to the community!
Thank You
