FSI offers govt subsidised 'Green Skills' training programs

Are your people seeking “Green” credentials?

The FMCG Sustainability Institute is pleased to be able to offer accredited Green Skills Training to businesses who seek to increase the sustainability knowledge and skills of their people. Courses are heavily subsided by State and Federal funding – depending on circumstances by up to 90% -  and certificate of attainment is issued on satisfactory completion of the courses.  Currently FSI offer a 1 day Introduction to Sustainability in the Workplace and a 4 day Green Skills for Business Sustainability program (This course provides the knowledge and skills to develop workplace policy and procedures for sustainability and is part of the Business Sustainability- Diploma Unit).

Details below – contact Carole Young for further information: carole@fmcg-sustain.com.au or 0431 661 387.

Green Skills Training

Management Workshops Series Green Skills for Business Sustainability (Environmental)

Duration: 5 days Cost: $985

- government subsidies available upon application

Details: These Green Skills workshops for Directors, Managers & Supervisors apply the knowledge, processes and techniques necessary for implementing Environmental policy into your business. The workshop will explain ROI for Green Skill initiatives. Participants will help their company save on waste and cost and minimize environmental impact through Recycling, Waste management and development of environmentally focused techniques.

This is an excellent stepping stone for those undertaking ISO14001 accreditation.

This workshop is mapped to the Diploma of Business unit of competency Develop Workplace Policy and Procedures for Sustainability (BSBSUS501A).

Sustainability in the Workplace

Duration: 1 day Cost: $185

- government subsidies available upon application

Details: Green Skills training will assist employees to understand the concept of sustainability. It will help them identify existing programs for use in their workplace whilst developing strategies for monitoring and review.
Mapped to Certificate II in Business UOC (BSBSUS201A)

Leveraging Sustainability to Benefit your Balance Sheet

The final article in our series for Retail World Magazine, outlining the results of the 2008 FMCG Sustainability Barometer, focusses on using sustainability to improve your economic outcomes.

Download the article here:

#6 Article Retail World FSI Barometer

Sustainability in FMCG: who is driving it and why?

Sixty per cent of Australian FMCG companies report they are under pressure to become more sustainable. Where is the pressure coming from?

This is the third in a series of six articles for Retail World Magazine, our partners in a major sustainability survey of 271 Australian consumer goods and retail companies. Learn about the results, directions for the future, and next steps.

Download the article here 3-article-retail-world-250509-fsi-barometer

Published in Retail World Magazine 25.05.09

Economics and sustainability: how it is stacking up globally and locally

Major FMCG and retail businesses across the globe are implementing sustainability initiatives, but is there a business case?

This is the second in a series of six articles written for Retail World Magazine, our partners in  a major national industry sustainability survey of 271 Australian FMCG companies. Learn about the results, directions for the future, and what you can do.

Download the article here 2-article-retail-world-270409-fsi-barometer

Published in Retail World Magazine 27.04.09

Sustainability survey results: interesting times in FMCG

Sustainability is gaining traction in the Australian FMCG industry but the economic benefits are yet to gain awareness.

This is the first in a series of 6 articles for industry survey partner Retail World Magazine, outlining the results of a major national sustinability survey involving 271 FMCG respondents.

Learn more about where the industry is at and directions for the future.

Download article #1 here 1-article-retail-world-160309-fsi-barometer

Published 16.03.09 in Retail World Magazine

Sustainability in Australian FMCG: Presentation for ASMI

Today (26 May), Brent Couper and Peter Huskins of the FMCG Sustainability Institute presented to delegates of the Australian Sales & Marketing Institute about the results of our national survey of consumer goods companies, and future directions for sustainability in the industry.

You can download a copy of the presentation here asmi-presentation-26may09

Media Release: Australian consumer goods companies under pressure to be more sustainable

MEDIA RELEASE APRIL 2009

A large study into sustainability in the national consumer goods sector reveals companies under more pressure to be sustainable but hampered by a lack of understanding about the economic benefits.

The Retail World FMCG Sustainability Barometer Survey, released last month, involved 271 participants from across the spectrum of Australian consumer goods companies, with around 40% of respondents from the CEO / senior Exec level.
[Read more]

Sustainability Survey Results: Interesting Times in FMCG

Excerpt from Retail World Magazine March 16 issue:

Sustainability is gaining traction in the Australian FMCG industry but the economic benefits are yet to gain awareness, according to the 2008 Retail World FMCG Sustainability Barometer Survey.
- by Brent Couper and Lee McAllistair of the FMCG Sustainability Institute; providing Sustainability thought leadership, research, education and advice to the Fast Moving Consumer Goods industry. For more information visit www.fmcg-sustain.com.au

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Comprehensive results of the Retail World FMCG Sustainability Barometer Survey 2008 are now available via the Retail World March 16 issue and www.fmcg-sustain.com.au. The study is aimed at providing a ‘barometer’ to determine the state of the collective Australian FMCG & Retail industry in relation to environmental, social & economic sustainability.
Sponsors Retail World Magazine, Jigsaw Strategic Research and i-Link Research Solutions made the project possible through their generous provision of services and resources.
Supporters AACS, POPAI and ASMI also assisted with the promotion of the survey.
The 10 minute online, self-completion questionnaire was conducted 11September – 1 October, 2008.

271 respondents completed the survey, including:

• a breadth of business sizes (over half less than 100 people, 14% over 1000 people) and industries with an ANZ focus
• an even spread of turnover (approx one third $100m+, while one third less than $10m)
• a mix of respondent roles (approx one fifth CEO/ President/ Managing Director and another fifth were General Manager/ Manager)

What are the key messages from respondents?

1. Sustainability pressures rising: The pressure for, and importance of sustainability is increasing. The main pressures are coming from customers, consumers and shareholders, as well as managers
2. Strategic Responses Vary: Organisations develop sustainability strategies for a number of reasons. The primary ones are that they see this is where business is heading and they want to be good corporate citizens. CEO commitment and attracting and retaining good people are also strong motivations. Reducing costs and increasing revenues are less important.
3. Cost v Benefit? Jury still out: The views about the impact of sustainability on profitability is mixed – about half feel that profitability will increase, while a third feel it will decrease
4. Pioneers are Forging Ahead: Although new, organisations are adopting sustainability. For example:
   • almost half claim to have sustainability strategies
   • a third have conducted an energy, water, waste audit
   • almost half use green credentials in marketing
   • a quarter of respondents have had training
5. Real Benefits: Sustainability is achieving benefits… mainly around branding & risk management & less so with economic benefits. Perhaps this is because organisations develop sustainability strategies primarily for ‘soft’ reasons, as opposed to ‘hard’ economic benefits
6. Not a Top Priority: However sustainability is not a top priority. The main reasons cited are:
   • there are other priorities
   • customers don’t require it…won’t pay for it
   • there are no penalties for not doing it
   • competitors aren’t doing it
   • managers don’t know much about it
7. Barriers: The key barriers are inadequate funding, difficulty in developing targets & controls and the perceived costsAlso, in most organisations there is no clear primary responsibility for sustainability. Rather, each department/division shares responsibility
8. Future Directions: The priority sustainability issues over the next 2-3 years are attracting and engaging good people, improving energy and water efficiency, reducing pollution (including greenhouse gas emissions), and marketing/branding to reinforce sustainability performance

FSI Thoughts: Implications and Recommendations

Overall, the results can be interpreted in two ways. Perhaps they are two sides of the same coin and reinforce each other:

1. Heads: One view is that Sustainability is new, and despite limited funding & resources & diffuse responsibility, there are actions underway, and ‘soft’ results are coming through;
2. Tails: The other side is a view that Sustainability is not delivering ‘hard economic’ results. When this is coupled with lack of internal & external pressure it means that Sustainability is not a top priority.

Taken together, these interpretations suggest that Sustainability is still relatively new, and is being taken up by innovators, early adopters & some early majority organisations (in terms of the innovation curve).

A number of drivers suggest that Sustainability will continue to increase as it travels through the Adoption Curve:

• Large suppliers and retailers like Woolworths, Unilever, Wal-Mart will continue to drive their sustainability programs;
• Legislation & external pressures will continue to increase; and
• Examples showing that economic benefits will become better known.

Unlocking the Sustainability Benefits

One of the key barriers to sustainability progress in the Australian FMCG industry is a lack of understanding about its potential economic benefits.

A recent study (May to November 2008) showed that “… during the current economic slow-down, companies that show a “true” commitment to sustainability appear to outperform their industry peers in the financial markets.Companies recognised as sustainability-focused outperformed their industry peers over both a three- and six-month period, and were well protected from value erosion… over three months, the performance differential across the 99 companies in this analysis worked out to be 10%; over six months, the differential was 15%”
- Source: “Green” Winners, AT Kearney, 2009, www.atkearney.com

The key issue here is making a genuine commitment to sustainability. Unless companies are seriously committed (i.e. not just improving public relations or playing catch up) and are in for the long term, best not bother at this time. Those that have a genuine commitment (being strategic and long term) are likely to see the benefits in their market performance. It may be in the interests of these companies to actually increase their sustainability investment to position them as emergent leaders from this crisis.

This suggests that organizations committed to sustainability should maintain or even increase this commitment to imprive their future positioning through and after the current crisis.

A recent Financial Times article, suggests that companies should identify how various aspects of sustainability will be affected during this economic crisis.

They suggest that:
the concern for corporate governance will increase

• regulation will increase
• philanthropy will suffer
• the outlook for eco-efficiency will be mixed, continuing in most companies, but focusing on lower-key and lower-cost measures
• consumers will be more conscious of product impacts, but also more value conscious
• retailers with strong and growing sustainability ambitions should flourish

- Source: Why sustainability is still going strong, Vermeer & Clemen, Financial Times, 12 Feb 2009

Respondents reported that another major barrier to progress is lack of targets, measurement and reporting. Only1 in 5 have sustainability targets in their business plans, and only 1 in 10 are formally reporting on social impact and performance. Obviously this makes it hard to focus their sustainability efforts and measure real benefits. Note: Large companies are leading the way here – in 2008 almost 80% of the world’s largets companies prepared sustainability reports, and 68% of ASX N100 companies published information on sustainability. (Source: KPMG, 2008).

Shifting From Tactical to Strategic Response

Another further key barrier to sustainability progress is a lack of understanding about how to leverage sustainability for strategic advantage. For us at the FMCG Sustainability Institute, ‘strategic’ sustainability is different from ‘tactical’ sustainability. As discussed in our previous reports, we believe that strategic sustainability is:

• integral to the business model and fundamental to the business;
• a source of differentiation, builds organisational reputation with key stakeholders and helps branding;
• gives a leading edge through innovation, patents, licences, low cost, speed to market and first mover advantage;
• hard to copy;
• builds margin and returns via increased prices, lower costs, lower assets; and importantly;
• it is likely to be specific to the firm, in the organisation’s upstream business processes and is often externally focused.

Tactical sustainability, on the other hand, is an ‘add on’ and does not impact core business – every firm can do it. Many environmental programs fall into this category, and whilst essential to addressing sustainability as a whole, offer no real differentiation or strategic advantage. In fact, we believe that carbon programs, in particular, are likely to become a ‘hygiene factor’ as legislative activity increases and more retailers seek carbon savings via suppliers.

Ultimately, the more strategic the approach to sustainability, the greater the benefits, including economic benefits.

So, What Should We Do?

Six key things:

1. Develop Capability: Respondents in the FSI research indicate that sustainability is becoming more important. Organisations need to develop the capability to scan the external environment for changes in legislation, pressure from key customers, consumers and competitors, cost increases in key inputs, technology opportunities, etc.
2. Bottom Line Focus: During this economic crisis, economic performance is even more important. Set sustainability strategies with higher expectations of economic benefits and focus on those sustainability initiatives that attract customers and consumers, and address costs, without being capital intensive.
3. Link to Business Strategy: Consider how your approach to sustainability aligns with your overarching business strategy and differentiates your offer and market position from your competitors. The more strategic your approach, the greater the benefits will be.
4. Set Targets: Research / develop targets, measures and controls and report regularly.
5. Resource Appropriately: If you have a sustainability strategy, allocate good people, assign clear responsibilities, clarify priorities, coordinate/simplify the multiple initiatives , and share/replicate successes.
6. Build Capacity: If you don’t have a sustainability strategy, educate managers and seek out best practice (including results), pilot various approaches and demonstrate results, audit key areas to identify improvement opportunities, prepare a strategy to prioritise and coordinate the overall approach.

This article is the first in a series about the state of sustainability in the Australian FMCG industry.

Future articles for Retail World Magazine will include:

• Economics and sustainability: how it is stacking up globally and locally
• Sustainability in FMCG: who is driving it and why?
• The Sustainability Roadmap: how to drive on the ‘right side of the road’
• Leveraging sustainability to benefit your balance sheet
• Sustainability targets and measures: navigating the territory

Retail World FMCG Sustainability Barometer Survey to be released March 16

Results of the Retail World FMCG Sustainability Barometer Survey will be published in Retail World Magazine on March 16, 2009.

The study is the most comprehensive to date of the collective Australian Retail and FMCG industry and where it is at in relation to sustainability.

A total of 271 respondents across the industry participated – a broad and robust sample.

The results provide a clear picture of where we are, how we compare globally as well as implications for moving forward.

The full reports will be available on this website after March 16.

Many thanks go to our major sponsors Retail World Magazine, Jigsaw Strategic Research and i-Link Solutions for making the project possible.

Thanks also go to affiliated organisations AACS, POPAI and ASMI for promoting the survey.

Watch this space after March 16.

Retail World FMCG Sustainability Barometer Survey set to kick off

Retail World Magazine and the FMCG Sustainability Institute (FSI) have joined forces to benchmark sustainability in the Australian industry via a major research project.

The Retail World FMCG Sustainability Barometer Survey will be the most comprehensive view of sustainability progress in the sector to date.

The project is made possible through the generous sponsorship of Jigsaw Strategic Research and i-Link Research Solutions. The study will also be conducted with the support of the POPAI Sustainability Committee via its Future’s So Bright Green Sustainability Conference.

The Barometer aims to determine where the collective Australian FMCG and Retail industry is at in relation to environmental, social and economic sustainability.

For more information about the study and how you can be involved, visit our Retail World FMCG Sustainability Barometer page.

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