Sustainable product

Sustainable Product September 2013

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Methodology and survey sample

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Europe Asia

N=1062

N=769

The survey was conducted in June 2013, on a sample of about 2300 professionals who work at prominent companies from the primary, secondary and tertiary sectors across different industries in Europe, North America, Central & South America and Asia.

The questionnaire was administered using the CAWI methodology.

N=326 N=272

N=138

Africa N=23 Central & South America N=150

N=148

Oceania N=36

N=270

TOTAL n=2309

46,0%

EUROPE 14,1%

Italy Netherlands

3,9%

Norway

3,6%

Finland

3,2%

Sweden

3,1%

United Kingdom

2,0%

Spain

1,9%

Denmark

1,9%

Germany

1,8%

France

1,2%

Poland

1,1%

Other

6,8%

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NORTH AMERICA USA Canada CENTRAL & SOUTH AMERICA Brazil Argentina Mexico Other ASIA China India Japan Taiwan Australia Korea Other

11,8% 11,3% 0,5% 6,4% 2,5% 1,4% 1,4% 1,1% 33,3% 11,7% 6,5% 6,0% 3,0% 1,4% 1,3% 3,5%

The sample is qualitative and not statistically representative

25% of the firms involved employ less than 50 people, 32% from 50 to 249 and 43% 250 and more

Most of the companies belong to the manufacturing industry, particularly food (5%), chemicals (5%), metals (10%), machinery (7%) and electrical (5%)

Approx. 63% of the survey respondents are directly involved in technical management, while approx. 10% are senior decision makers (CEO, COO etc.)

Industry Company size Up to 5 6 to 19 20 to 49 50 to 99 100 to 199 200 to 249 250 to 499 500 to 999 1000 and more

2,7% 8,1% 13,8% 13,8% 13,4% 5,0% 10,7% 7,3% 25,4%

Agriculture, Fishing, Mining Manufacturing Metal products Machinery and equipment Chemicals products Food products and beverages Electrical machinery Other manufacturing Electricity, gas and water supply Construction Wholesale and retail trade Hotels and restaurants Transport and communication Financial intermediation Business activities Public administration and defence Education Health and social work Other

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6,7% 55,3% 10,0% 7,4% 5,0% 4,9% 4,7% 23,2%

4,4% 6,1% 4,2% 0,6% 6,1% 0,8% 0,6% 0,9% 1,8% 4,2% 8,4%

Role Technical manager Ceo/coo/managing director/owner Plant manager Product manager Supply chain manager Chief financial officer Buyer Other

54,0% 9,8% 3,8% 2,7% 2,3% 1,1% 1,1% 24,6%

Need and capability to deliver sustainable products

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respondents all over the world agree on the need to deliver 89% of sustainable products.

Great extent + Some extent

-10

The strongest commitment comes from the Far East, with 95% of people surveyed firmly believing it is a key factor for the successful performance of their business. About 10 percentage points more than in Europe and North America.

83% Up to 49

89% 50 to 249

85%

95%

86% -9

Sustainability is a core issue not only for medium and large companies, but for small ones too. 83% of firms employing less than 50 people feel the need to deliver sustainable products too.

93% 250 and more

Chemical companies are recording the highest score overall among industries, well above average

96%

.

Primary sector, food, machinery and electrical businesses exceed 90% too.

Q3. For your company, to what extent do you perceive the need to deliver sustainable products?

TOTAL

% Top 2 Boxes Great extent + Some extent

2.309

88,7%

Europe

North America

1.061

272

Central &South America 148

84,7%

86,3%

89,8%

Asia 769

95,2%

Up to 49

50 to 249

250 and more

566

743

1.000

82,6%

88,5%

92,5%

Chemical companies 95,7%; Electrical businesses 92,6%;Machinery 91,2%; Food 90,2%; Primary sector 90,1%

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71%

Numbers become smaller when participants are asked if they currently sell sustainable products. Yet 71% of people interviewed consider its own products to be sustainable

79%

This percentage grows to nearly 80% for Asians, 82% in China and 78% in India.

78% 82%

Sustainable products come from both small, medium and large companies; 66% of small firms state to be selling sustainable products, just 5% below average.

66%

74%

72%

Up to 49

50 to 249

250 and more

Food, chemical, machinery and electrical

78% .

are the sectors selling more sustainable products. Rates in all these sectors are higher than

Q4. Are you currently selling products that you consider to be sustainable?

They are currently selling sustainable products

1.061

North America 272

Central & South America 148

67,6%

68,4%

61,9%

TOTAL

Europe

2.309

71,1%

Asia

Up to 49

50 to 249

250 and more

769

566

743

1.000

79,1%

65,7%

73,9%

72,1%

China 82,4%; India 77,8%; Electrical businesses 81,5%; Machinery 79,5%; Chemical companies 79,1%; Food 78,6%

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Key aspects for products to be sustainable

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For companies, product sustainability is mostly a matter of

environmental impact

94%

88% finance 82% ranks 4th among the aspects relevant for delivering a sustainable product and it is a crucial feature most of all for Central & South Americans (91%).

and

50%

70%

90%

94,3% 87,8% 81,6%

FINANCE

74% 76%

human rights employment

As a second step, respondents pointed out

74%

2.309 30%

% Top 2 Boxes Very relevant + Somewhat relevant

SAFE USE

Environmental impact is a key concern globally, slightly below average only in North America (88%), while safe use is key especially to Indian businesses (95%).

labor rights

TOTAL

ENVIRONMENTAL IMPACT

safe use

ethics 80%

Q1. In your opinion how relevant are the following aspects for a sustainable product?

79,9%

ETHICS

76,3%

EMPLOYMENT

LABOUR RIGHTS

74,2%

HUMAN RIGHTS

73,9%

FAIRTRADE

70,1%

COMMUNITY INVESTMENT

69,2%

EQUAL OPPORTUNITIES

61,2%

CAUSE RELATED MARKETING

Engaging in philanthropy doesn’t seem to be important for companies. Only 40% consider it relevant

PHILANTHROPY

57,5% 40,2% For details  Appendix (1)

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Stakeholders Influence

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Q5. In your business/market to what extent are the following stakeholders demanding/influencing you to deliver more sustainable products? % Top 2 Boxes Very demanding +Somewhat demanding

TOTAL 2.309 20%

40%

60%

80%

100%

78,5%

CUSTOMERS

CORPORATE LEADERS/POLICY

Pressure from

customers (79%)

is the number

one reason for leading corporations to deliver sustainable products

70,8%

65,3%

FINAL CONSUMERS

Corporate policies (71%)

and

final

consumers (65%) come next.

58,7%

REGULATORS

53,4%

COMPETITORS

The pressure is stronger in the Far East, with 90% of the professionals surveyed stating to be influenced by the pressure of customers, 83% by internal policies and 76% by final consumers.

50,4%

EMPLOYEES

48,8%

INVESTORS

investors, is pointed out only by 1 in 2 professionals, Pressure from

43,2%

SUPPLIERS

LOCAL COMMUNITY NON-GOVERNMENTAL ORGANIZATIONS (NGOS) UNIONS

40,3%

38,5%

with the exception of Asia where the proportion grows to 62%, and 70% in China. In Europe, investors are less influential than in any other region (39%), and they are not that influential in North America as well (43%).

25,8% For details  Appendix (2)

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11

Q5. In your business/market to what extent are the following stakeholders demanding/influencing you to deliver more sustainable products?

Q15. To what extent do you think the following stakeholders will demand more sustainable products in three years’ time in your business/market?

% Top 2 Boxes Very demanding +Somewhat demanding

When questioned about the

future.

professionals confirm that customers TOTAL

present

corporate policies will continue to be the

future

main drivers.

N= 2.309 0%

LOCAL COMMUNITY NON-GOVERNMENTAL ORGANIZATIONS (NGOS)

20%

40%

60%

80%

100%

55,4%

40,3%

52,7% 78,4%

65,3%

70,8%

58,7%

REGULATORS

58,5%

48,8% 25,8% 35,0%

UNIONS CUSTOMERS COMPETITORS SUPPLIERS EMPLOYEES CORPORATE LEADERS/POLICY

growing pressure coming from local communities but they expect a

38,5%

FINAL CONSUMERS

INVESTORS

and

87,6%

78,5% 53,4% 43,2%

61,9%

NGOs +14%, final consumers

+13%

51,0% 56,7%

50,4%

70,8%

+15%

76,9%

regulators

+12%

For details  Appendix (3-4) The content included herein is property of DNV Business Assurance © DNV Business Assurance. All rights reserved.

12

.

,

Sustainability focused actions

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But what do companies do in order to act in a sustainable way?

Q7. In the last three years, have you taken sustainability focused actions/initiatives regarding:

They take initiatives all along the life cycle of the product

TOTAL

% YES HOW PRODUCTS ARE MANUFACTURED/PROVIDED

HOW RAW MATERIALS/INPUTS ARE SOURCED

HOW PRODUCTS ARE DISPOSED OF (WHAT HAPPENS AT THE END OF THE PRODUCT'S LIFE)

2.309

68,7%

the strongest focus is on especially

manufacturing (69%),

(84%)

for

food

and

chemical businesses

62,1%

(85%)

55,7%

HOW PRODUCTS ARE TRANSPORTED/DELIVERED

54,2%

HOW PRODUCTS ARE USED BY CUSTOMERS/CONSUMERS

52,7%

For details  Appendix (5)

The larger the corporations, the higher the rate of initiatives undertaken and the focus on consumer behavior.

However, small firms are intensely working on the issue too.

Only 14% have done nothing in past 3 years …

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14

…as a matter of fact companies are engaged in a variety of actions but to date sustainability is mostly a matter of safeguarding the environment.

Apart from the implementation of a code of conduct for the staff (69%), the most performed actions are related to the environment:

reduction of energy use (77%)

Q8. which of the following environmental actions have you taken in order to improve the sustainability of your products?

Q9. which of the following actions related to economic impact have you taken, in order to improve the sustainability of your products?

Q10. which of the following ethical actions have you taken in order to improve the sustainability of your products?

Q11. which of the following social actions have you taken in order to improve the sustainability of your products?

TOTAL if at least one «yes» at q7

waste (72%)

1.995

77,3%

Reduced energy use

water consumption (53%) and avoidance

of hazardous substances (67%).

Implemented a code of conduct for your staff

68,7%

Avoided use of hazardous substances

67,4%

Reduced water consumption

53,1%

Taken steps to avoid corrupt business practice

51,6%

Educated staff on how to deal with ethical dilemmas

In the Far East, once again, the implementation of these actions is above average. Asian companies implemented initiatives aiming to reduce energy use (80%), waste (76%) , water consumption (62%) and use of hazardous substances (73%). Proportions are even higher considering Chinese businesses only. Central & South American companies are also very dynamic, while Europe and North America are a step behind.

The control of energy use is a priority especially for food industries, while waste reduction is key to the chemical industry. A rational water consumption is crucial both for food and chemical sectors.

15

46,9%

Supported education program that increase awareness of good environmental or health and safety practice on your site

43,4%

Avoided consumption of non-renewable or scarce resources

41,2%

Implemented a code of conduct for your suppliers or agents

37,5%

Educated users of your product about how to reduce environmental impacts

35,6%

Promoted charitable activities

35,4%

Reduced climate change impacts

33,1%

…

For details  Appendix (6-9)

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72,3%

Reduced waste generation

Only 16% took initiatives to avoid trade in endangered species and, despite the majority states to take initiatives all along the life cycle of their products,

only 22% - made up mainly by large corporations – conducted a life cycle assessment in order to be scientifically aware of priorities.

Q8. which of the following environmental actions have you taken in order to improve the sustainability of your products?

Q9. which of the following actions related to economic impact have you taken, in order to improve the sustainability of your products?

Q10. which of the following ethical actions have you taken in order to improve the sustainability of your products?

Q11. which of the following social actions have you taken in order to improve the sustainability of your products?

TOTAL if at least one «yes» at q7

Selected suppliers that ensure a fair price is paid to producers at the top of supply chain

Economic actions are little regarded for their contribution to the development of sustainable products.

Only 32% selected suppliers that ensure a fair price is paid to producers at the top of the supply chain,

22% implemented a policy regarding fair payment of taxes 15% either created jobs that support disadvantaged communities or selected suppliers supporting occupation. and around

16

…

32,1%

Invested in programs to increase involvement of your staff in sustainability issues

30,3%

Other economically focused actions

29,0%

Changed design to increase recyclability at the end of product life

27,5%

Other socially focused activities

24,4%

Other ethically focused activities

23,4%

Implemented a program to understand stakeholder expectations with respect to sustainability

23,1%

Conducted a life cycle assessment

22,1%

Implemented a policy regarding fair payment of taxes across the value chain

22,1%

Supported education program that increase awareness of good environmental or health and safety practice in your supply chain

21,6%

Invested in local communities around your site (for example building schools or hospitals)

21,3%

Directly created jobs that promote or support disadvantaged communities or equal opportunities

16,6%

Avoided trade in endangered species

15,7%

Selected suppliers that create jobs in disadvantaged communities or promote equal opportunities

15,5%

Invested in local communities where your suppliers are based Selected suppliers that create jobs in disadvantaged communities or promote equal opportunities

For details  Appendix (6-9)

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1.995

7,5% 4,6%

Sustainable products are made up of ethical behavior too: almost

70% implemented a code of conduct for their staff 77% in Asia and 85% in China.

One in two took steps to avoid corrupt

business practices; the highest implementation rates are in North America

Q8. which of the following environmental actions have you taken in order to improve the sustainability of your products?

Q9. which of the following actions related to economic impact have you taken, in order to improve the sustainability of your products?

Q10. which of the following ethical actions have you taken in order to improve the sustainability of your products?

Q11. which of the following social actions have you taken in order to improve the sustainability of your products?

TOTAL

(59%) and, once more, in Asia (57%), particularly in China (63%). Europe (45%) is the least sensitive area on corruption.

if at least one «yes» at q7

1.995

77,3%

Reduced energy use

72,3%

Reduced waste generation

Sustainability also includes playing a role in the society. Supporting education (43%) and

promoting charitable activities (35%) are rather popular among companies, most of all in North America.

Implemented a code of conduct for your staff

68,7%

Avoided use of hazardous substances

67,4%

Reduced water consumption

53,1%

Taken steps to avoid corrupt business practice

51,6% 46,9%

Educated staff on how to deal with ethical dilemmas

While investing in programs to understand stakeholders expectations with respect to sustainability (23%) and investing in local communities (21%) are put on the back burner, especially in Europe.

Supported education program that increase awareness of good environmental or health and safety practice on your site

43,4%

Avoided consumption of non-renewable or scarce resources

41,2%

Implemented a code of conduct for your suppliers or agents

37,5%

Educated users of your product about how to reduce environmental impacts

35,6%

Promoted charitable activities

35,4%

Those who invest most in the local communities come from the primary sector (44%), presumably due to the tight bonds with the areas in which they operate

Reduced climate change impacts

For details  Appendix (6-9)

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17

33,1%

…

Awareness of sustainable products

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Letting customers and final consumers know about the sustainability of products is not

Q12. In the last 3 years, have you taken any of the following initiatives to improve the awareness of the sustainability of your products?

widespread.

TOTAL if at least one «yes» at q7

N= 1.995

MADE CLAIMS IN MARKETING ACTIVITIES (E.G. ADVERTISING, EVENTS, PR)

28,8%

marketing activities, even fewer among those who

PUBLISHED INFORMATION ABOUT YOUR PRODUCTS IN A CORPORATE SUSTAINABILITY REPORT

USED AN EXTERNALLY RECOGNIZED SUSTAINABILITY LABEL OR CERTIFICATE

MADE SUSTAINABILITY CLAIMS DIRECTLY ON THE PRODUCT LABEL

PUBLISHED THE RESULT OF A LIFE CYCLE ASSESSMENT

Less than one third of the respondents made claims in

25,9%

published information in a corporate sustainability report, with exception of large businesses.

23,6%

19,7%

Using sustainability making claims

labels or certificates (24%) and

directly on the product packaging

9,1%

(20%) have not become part of common business habits yet.

For details  Appendix (10) The content included herein is property of DNV Business Assurance © DNV Business Assurance. All rights reserved.

19

Benefits and investment intention

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48%

of people surveyed states that benefits from the different

Q14. How do you rate the overall cost/benefit ratio for the actions you took?

TOTAL

if at least one «yes» at q7

actions undertaken

1.995

exceed costs. Among those who profited most

are respondents from Central & South America and Asia (72% of Chinese).

Q13. Overall what benefits did you achieve from the actions you implemented TOTAL if at least one «yes» at q7

Gap = Benefits – Costs

Benefits greater

30,0%

47,6%

N= 1.995

IMPROVED ABILITY TO MEET CUSTOMER NEEDS

46,3%

GAINED BRAND REPUTATION AWARENESS

40,5%

Corporations benefited both in terms of ability

to

GAINED COMPETITIVE ADVANTAGE

31,4%

meet customer needs (46%), brand

REDUCED COST OF PRODUCTION

31,2%

reputation enhancement (41%) and

29,4%

competitive advantage (31%).

IMPROVED RELATIONSHIP WITH STAKEHOLDERS IMPROVED THE APPEAL OF THE PRODUCT

25,6%

Central & South Americans and Asians are the most

INCREASED MARKET SHARE/SALES

19,6%

IMPROVED FUNCTIONALITY OF THE PRODUCT

18,6%

enthusiastic, while smaller numbers are registered in Europe and North America.

For details  Appendix (11-12) The content included herein is property of DNV Business Assurance © DNV Business Assurance. All rights reserved.

21

And for the future, will companies keep on investing in sustainability?

No doubt, they will

Q17. In the next three years, are you going to invest in sustainable products…:

TOTAL

47% already state that they will even invest more than today.

N= 2.309

Don’t know

22%

No investments at all Less than today

2% 1%

Once more, the rising economies put sustainability on the agenda

Same as today

28%

68% of Central & South Americans and 47% of Asians state that will invest more than today.

Percentages are lower in Europe (45%) and North America (41%)

More than today

47,0%

For details  Appendix (13) The content included herein is property of DNV Business Assurance © DNV Business Assurance. All rights reserved.

22

Summary

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What the study confirms

Survey findings

 Delivering sustainable products is a need shared by world companies and the strongest commitment comes from the Far East.

89% of respondents all over the world agree on the need to deliver sustainable products 95% of Asians believe it is a key element for the successful performance of their business

 Sustainability is a core issue for small companies too.

83% of firms employing less than 50 people feel the need to deliver sustainable products

 The majority of companies, especially in the Far East, claims to deliver sustainable products.

71% of people consider its own products to be sustainable Percentages are higher in the Far East: nearly 80% of Asians, 82% of Chinese

 The most important aspects to consider for delivering sustainable products are environmental impact, safe use and financial sustainability.

environmental impact (94%) safe use (88%) financial sustainability (82%).

 Pressure from customers is the main reason for leading corporations to deliver sustainable products.

The pressure is particularly strong for companies in the Far East.

79% of worldwide professionals are influenced by customers 90% of Asians are influenced by customers

 The pressure for delivering sustainable products is expected to grow.

Particularly, the pressure comes from: Local communities (+15%) NGOs (+14%), Final consumers (+13%) Regulators (+12%).

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24

What the study confirms

Survey findings

 Firms take sustainability initiatives all along the product life cycle with a strong focus on manufacturing.

69% of corporations take actions regarding how products are manufactured

 Small companies are also actively working to increase the sustainability of their production.

61% took actions on how products are manufactured 57% took initiatives on how raw materials are sourced 53% worked for a correct product disposal

 Today, sustainability is mostly a matter of safeguarding the environment.

Reduction of energy use (77%) Reduction of waste (72%) Rational water consumption (53%) Avoidance of hazardous substances (67%)

 The implementation of environmental actions is particularly high in Asia.

80% of companies took initiatives aiming to reduce energy use 76% worked for waste reduction 62% implemented actions for a rational water consumption 73% is committed to avoid using hazardous substances

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25

What the study confirms

Survey findings

 Letting customers and final consumers know about the sustainability of products is not widespread.

Only 29% of respondents made claims in their marketing activities and 26% published information in corporate sustainability reports.

24% used sustainability labels or certificates and only 20% made claims directly on the product packaging

 Benefits from the sustainability actions undertaken exceed costs, especially for professionals from rising markets.

48% of people surveyed state that the benefits exceed the costs.

62% of Central & South Americans and 57% of Asians declared to have profited

 Companies will keep on investing in sustainability for the future, especially in Central & South America and in Asia.

68% of Central & South Americans and 47% of Asians state that will invest even more than today.

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26

Appendix

www.dnvba.com

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27

Appendix (1) : Aspects for a sustainable product - geographical area and company size -

% values

Q1. In your opinion how relevant are the following aspects for a sustainable product?

% Top 2 Boxes

TOTAL

Very relevant + Somewhat relevant 30%

Europe

50%

N= 2.309 70%

N=

Central North &South America America

Asia

up to 49

50 to 249

250 and more

566

743

1.000

91,1%

94,4%

96,1%

1.061

272

148

769

90%

India 95,3%

ENVIRONMENTAL IMPACT

94,3%

96,0%

88,2%

98,6%

93,5%

SAFE USE

87,8%

86,4%

88,6%

91,2%

88,7%

84,0%

89,7%

88,5%

76,9%

84,2%

86,4%

85,4%

78,7%

84,4%

81,0%

86,9%

84,8%

90,5%

65,7%

79,3%

80,7%

79,7%

77,9%

76,8%

81,8%

72,5%

76,3%

77,3%

75,7%

81,6%

FINANCE

79,9%

ETHICS

76,3%

EMPLOYMENT LABOUR RIGHTS

74,2%

80,8%

68,9%

85,8%

65,1%

72,5%

74,2%

75,2%

HUMAN RIGHTS

73,9%

81,9%

75,3%

80,3%

61,3%

71,8%

74,7%

74,6%

FAIRTRADE

70,1%

71,4%

62,7%

79,6%

69,1%

69,5%

72,4%

68,8%

COMMUNITY INVESTMENT

69,2%

67,7%

71,0%

85,7%

66,9%

65,8%

69,7%

70,7%

62,3%

56,6%

73,5%

59,1%

62,1%

63,6%

58,9%

52,4%

44,8%

66,7%

67,0%

54,2%

64,3%

54,4%

35,5%

39,9%

41,1%

46,9%

38,0%

41,0%

40,8%

61,2%

EQUAL OPPORTUNITIES

57,5%

CAUSE RELATED MARKETING PHILANTHROPY

40,2%

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Appendix (2): Stakeholders influence - geographical area and company size -

% values

Q5. In your business/market to what extent are the following stakeholders demanding/influencing you to deliver more sustainable products?

Central North Europe Asia &South America % Top 2 Boxes TOTAL America

Very demanding +Somewhat demanding 20%

40%

N= 2.309 60%

80%

70,8%

CORPORATE LEADERS/POLICY

65,3%

FINAL CONSUMERS

58,7%

REGULATORS

53,4%

COMPETITORS

50,4%

EMPLOYEES

48,8%

INVESTORS

43,2%

SUPPLIERS

NON-GOVERNMENTAL ORGANIZATIONS (NGOS) UNIONS

250 and more

1.061

272

148

769

566

743

1.000

73,2%

73,5%

69,4%

90,0%

69,8%

80,2%

82,2%

66,1%

66,2%

47,3%

83,4%

58,3%

70,6%

77,8%

59,7%

63,7%

57,3%

76,2%

57,2%

65,8%

69,5%

50,3%

66,9%

56,5%

67,2%

46,3%

62,1%

63,1%

45,8%

53,1%

44,8%

66,9%

44,1%

53,7%

58,4%

42,9%

43,7%

42,5%

65,2%

44,7%

50,5%

53,5%

39,2%

43,3%

54,8%

62,3%

37,7%

50,1%

53,9%

30,0%

33,5%

40,3%

65,8%

40,1%

46,1%

42,7%

38,9%

41,8%

42,0%

41,2%

33,8%

39,6%

44,4%

38,1%

37,2%

41,0%

38,7%

30,9%

35,9%

44,6%

23,7%

6,7%

23,8%

36,5%

20,1%

27,6%

27,7%

100%

78,5%

CUSTOMERS

LOCAL COMMUNITY

N=

Up to 49 50 to 249

40,3% 38,5% 25,8%

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29

China 70,9%

Appendix (3): Stakeholders influence in the future - geographical area and company size Q15. To what extent do you think the following stakeholders will demand more sustainable products in three years’ time in your business/market?

Central & North Europe South % Top 2 Boxes TOTAL America America Very demanding +Somewhat demanding N= 2.309 N= 20%

40%

60%

80%

CUSTOMERS

% values

Asia

Up to 49 50 to 249

250 and more

1.061

272

148

769

566

743

1.000

84,9%

81,0%

92,5%

93,0%

80,7%

89,5%

90,2%

100%

87,6%

CORPORATE LEADERS/POLICY

76,9%

72,6%

73,0%

69,2%

85,3%

62,4%

77,3%

84,6%

FINAL CONSUMERS

78,4%

76,9%

72,3%

84,1%

81,7%

72,9%

80,6%

79,8%

65,5%

76,0%

77,8%

73,6%

60,2%

70,1%

77,1%

56,9%

55,4%

70,8%

70,1%

52,9%

63,0%

66,0%

51,6%

44,0%

60,1%

67,9%

49,7%

56,6%

60,6%

51,3%

53,5%

72,0%

66,9%

47,9%

56,9%

65,4%

41,2%

37,8%

55,6%

68,6%

47,8%

53,5%

50,9%

55,2%

56,1%

66,9%

51,9%

49,1%

53,7%

59,9%

54,4%

47,2%

68,8%

48,6%

46,3%

49,5%

58,4%

35,1%

9,8%

35,7%

43,7%

29,4%

35,6%

37,6%

REGULATORS

70,8%

COMPETITORS

61,9%

EMPLOYEES

56,7%

INVESTORS

58,5%

SUPPLIERS

51,0%

LOCAL COMMUNITY

55,4%

NON-GOVERNMENTAL ORGANIZATIONS (NGOS) UNIONS

52,7% 35,0%

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30

Appendix (4): Stakeholders influence present vs. future - geographical area -

% values

Q5. In your business/market to what extent are the following stakeholders demanding/influencing you to deliver more sustainable products?

Q15. To what extent do you think the following stakeholders will demand more sustainable products in three years’ time in your business/market?

% Top 2 Boxes Very demanding +Somewhat demanding

EUROPE

present

future

100%

0%

NORTH AMERICA

1.061 0%

20%

272

40%

LOCAL COMMUNITY

38,9%

NGO’S

38,1%

60%

80%

51,3% 84,9%

73,2% 45,8%

33,5%

41,2% 42,9%

CORPORATE LEADERS/POLICY

40%

LOCAL COMMUNITY

42,0%

NGO’S

41,0%

SUPPLIERS EMPLOYEES CORPORATE LEADERS/POLICY

47,3%

60%

77,8% 36,5%

80%

100%

51,9% 48,6% 76,2% 67,2%

72,0%

62,3%

81,7% 73,6%

66,9%

43,7% 92,5%

44,8% 42,5%

40%

41,2%

69,4% 40,3%

20%

38,7%

35,7%

CUSTOMERS

0%

84,1%

56,5% 23,8%

100%

68,8%

54,8%

UNIONS COMPETITORS

80%

57,3%

REGULATORS INVESTORS

769 60%

66,9%

FINAL CONSUMERS

73,0%

ASIA

148 20%

44,0% 66,2%

72,6%

CENTRAL & SOUTH AMERICA 0%

55,4%

37,8%

43,7%

51,6% 66,1%

81,0%

73,5% 53,1%

56,9%

30,0%

EMPLOYEES

76,0%

53,5%

9,8%

CUSTOMERS SUPPLIERS

43,3%

6,7%

100%

72,3%

66,9%

35,1%

COMPETITORS

47,2% 63,7%

65,5%

39,2% 23,7%

80%

56,1%

76,9%

50,3%

UNIONS

60%

37,2%

54,4% 59,7%

INVESTORS

40%

41,8%

55,2%

FINAL CONSUMERS REGULATORS

20%

70,8%

90,0% 66,9% 65,8%

55,6%

65,2%

60,1% 69,2%

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31

93,0%

70,1% 68,6% 67,9% 83,4%

85,3%

Appendix (5): Focused actions/initiatives adopted - geographical area and company size Q7. In the last three years, have you taken sustainability focused actions/initiatives regarding:

Europe TOTAL N= 2.309

N=

1.061

Central North &South America America 272

148

% values

Asia

Up to 49 50 to 249 566

769

743

250 and more 1.000

% YES HOW PRODUCTS ARE MANUFACTURED/PROVIDED

68,7%

HOW RAW MATERIALS/INPUTS ARE SOURCED

62,1%

Italy: primary area of action

60,5%

69,3%

72,9%

66,6%

56,8%

62,4%

64,8%

65,9%

67,0%

66,2%

74,7%

59,9%

56,5%

68,7%

HOW PRODUCTS ARE DISPOSED OF (WHAT HAPPENS AT THE END OF THE PRODUCT'S LIFE)

55,7%

60,0%

51,7%

62,8%

50,0%

52,6%

52,7%

59,7%

HOW PRODUCTS ARE TRANSPORTED/DELIVERED

54,2%

49,7%

56,1%

58,3%

58,7%

46,0%

54,0%

58,9%

HOW PRODUCTS ARE USED BY CUSTOMERS/CONSUMERS

52,7%

48,9%

49,1%

64,8%

57,5%

50,5%

53,8%

53,0%

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32

Chemical business 85,2%; Food 84,1%

Appendix (6): Environmental actions implemented - geographical area and company size % values

Q8. In particular, which of the following environmental actions have you taken in order to improve the sustainability of your products?

Central North Europe & South Asia America TOTAL America N= 1.995

if at least one «yes» at q7

77,3%

REDUCED ENERGY USE

72,3%

REDUCED WASTE GENERATION

67,4%

AVOIDED USE OF HAZARDOUS SUBSTANCES

53,1%

REDUCED WATER CONSUMPTION

931

229

137

652

74,9%

75,1%

76,6%

80,8%

68,2%

72,9%

77,4%

62,3%

69,9%

44,1%

53,3%

Up to 49

50 to 250 and more 249

466

638

86,3%

64,6%

76,2%

84,7% Food 89,5%

76,4%

77,8%

63,5%

73,2%

76,2% Chemical

68,6%

73,3%

79,9%

58,4%

66,9%

72,5%

68,6%

61,5%

73,1%

40,6%

51,1%

61,1% Chemical

China

891

86,9%

Food 75,2%; 71,0%

AVOIDED CONSUMPTION OF NON-RENEWABLE OR SCARCE RESOURCES EDUCATED USERS OF YOUR PRODUCT ABOUT HOW TO REDUCE ENVIRONMENTAL IMPACTS REDUCED CLIMATE CHANGE IMPACTS CHANGED DESIGN TO INCREASE RECYCLABILITY AT THE END OF PRODUCT LIFE CONDUCTED A LIFE CYCLE ASSESSMENT

AVOIDED TRADE IN ENDANGERED SPECIES

41,2% 35,6% 33,1% 27,5% 22,1% 15,7%

34,7%

34,9%

40,9%

52,6%

38,2%

40,6%

43,2%

33,8%

27,5%

40,9%

39,7%

30,9%

32,8%

40,1%

32,3%

21,8%

26,3%

38,5%

22,5%

29,2%

41,5%

20,9%

22,3%

40,1%

35,3%

22,1%

27,1%

30,5%

20,2%

21,8%

11,7%

27,1%

12,2%

18,7%

29,7%

11,0%

10,0%

16,1%

24,2%

13,7%

15,5%

16,9%

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33

Appendix (7): Actions related to economic impact implemented - geographical area and company size % values Q9. In particular, which of the following actions related to economic impact have you taken, in order to improve the sustainability of your products??

Central North Europe & South Asia America TOTAL America if at least one «yes» at q7

SELECTED SUPPLIERS THAT ENSURE A FAIR PRICE IS PAID TO PRODUCERS AT THE TOP OF SUPPLY CHAIN

OTHER ECONOMICALLY FOCUSED ACTIONS

IMPLEMENTED A POLICY REGARDING FAIR PAYMENT OF TAXES ACROSS THE VALUE CHAIN

N= 1.995

32,1%

29,0%

22,1%

Up to 49 50 to 249

250 and more

931

229

137

652

466

638

891

21,9%

22,7%

32,1%

48,6%

34,3%

33,5%

29,9%

26,9%

22,3%

31,4%

33,4%

26,2%

29,5%

30,2%

16,2%

7,0%

24,8%

34,2%

17,0%

23,0%

24,1%

Italy 10,8%

DIRECTLY CREATED JOBS THAT PROMOTE OR SUPPORT DISADVANTAGED COMMUNITIES OR EQUAL OPPORTUNITIES

16,6%

10,2%

14,4%

24,1%

23,9%

13,5%

17,2%

17,8%

SELECTED SUPPLIERS THAT CREATE JOBS IN DISADVANTAGED COMMUNITIES OR PROMOTE EQUAL OPPORTUNITIES

15,5%

10,4%

14,0%

14,6%

22,5%

12,7%

16,3%

16,4%

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34

Appendix (8): Ethical actions implemented - geographical area and company size % values Q10. In particular, which of the following ethical actions have you taken in order to improve the sustainability of your products?

Central North Europe & South Asia America TOTAL America if at least one «yes» at q7

N= 1.995

IMPLEMENTED A CODE OF CONDUCT FOR YOUR STAFF

68,7%

TAKEN STEPS TO AVOID CORRUPT BUSINESS PRACTICE

51,6%

EDUCATED STAFF ON HOW TO DEAL WITH ETHICAL DILEMMAS

46,9%

IMPLEMENTED A CODE OF CONDUCT FOR YOUR SUPPLIERS OR AGENTS

37,5%

OTHER ETHICALLY FOCUSED ACTIVITIES

SELECTED SUPPLIERS THAT CREATE JOBS IN DISADVANTAGED COMMUNITIES OR PROMOTE EQUAL OPPORTUNITIES

23,4%

4,6%

Up to 49 50 to 249

250 and more

466

638

891

China 85,5%

48,9%

66,1%

80,8%

India 68,9% Italy 35,7%

39,7%

49,7%

59,1%

46,3%

35,4%

44,8%

54,4%

40,9%

44,6%

21,2%

35,6%

47,4%

21,8%

30,7%

30,1%

18,5%

22,4%

26,7%

0,9%

6,6%

6,6%

3,2%

5,3%

4,7%

931

229

137

652

62,2%

67,7%

70,1%

76,8%

44,8%

58,5%

54,0%

57,1%

43,9%

55,5%

50,4%

32,7%

33,2%

18,3%

3,4%

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35

Appendix (9): Social actions implemented - geographical area and company size % values Q11. In particular, which of the following social actions have you taken in order to improve the sustainability of your products?

Central North Europe & South Asia America TOTAL America if at least one «yes» at q7

N= 1.995

SUPPORTED EDUCATION PROGRAM THAT INCREASE AWARENESS OF GOOD ENVIRONMENTAL OR HEALTH AND SAFETY PRACTICE ON YOUR SITE

43,4% 35,4%

PROMOTED CHARITABLE ACTIVITIES

INVESTED IN PROGRAMS TO INCREASE INVOLVEMENT OF YOUR STAFF IN SUSTAINABILITY ISSUES

30,3%

Up to 49

50 to 249

250 and more

931

229

137

652

466

638

891

41,0%

45,9%

36,5%

46,8%

31,8%

38,1%

53,2%

30,0%

59,4%

35,0%

32,7%

25,5%

32,1%

42,9%

25,1%

23,6%

42,3%

36,7%

21,7%

28,8%

35,8%

OTHER SOCIALLY FOCUSED ACTIVITIES

24,4%

21,4%

23,1%

24,8%

29,1%

20,6%

21,8%

28,3%

IMPLEMENTED A PROGRAM TO UNDERSTAND STAKEHOLDER EXPECTATIONS WITH RESPECT TO SUSTAINABILITY

23,1%

17,2%

24,0%

22,6%

30,1%

14,2%

20,1%

30,0%

SUPPORTED EDUCATION PROGRAM THAT INCREASE AWARENESS OF GOOD ENVIRONMENTAL OR HEALTH AND SAFETY PRACTICE IN YOUR SUPPLY CHAIN

21,6%

20,3%

15,7%

27,0%

24,1%

13,3%

19,6%

27,4%

INVESTED IN LOCAL COMMUNITIES AROUND YOUR SITE (FOR EXAMPLE BUILDING SCHOOLS OR HOSPITALS)

21,3%

16,1%

35,4%

29,9%

20,4%

9,9%

16,6%

30,6%

4,7%

11,4%

8,0%

9,7%

4,9%

8,6%

8,1%

INVESTED IN LOCAL COMMUNITIES WHERE YOUR SUPPLIERS ARE BASED

7,5%

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36

Primary Sector 43,7%

Appendix (10): Initiative to improve awareness implemented - geographical area and company size % values Q12. In the last 3 years, have you taken any of the following initiatives to improve the awareness of the sustainability of your products?

Central & North Europe South America TOTAL America if at least one «yes» at q7

N= 1.995

MADE CLAIMS IN MARKETING ACTIVITIES (E.G. ADVERTISING, EVENTS, PR)

28,8%

PUBLISHED INFORMATION ABOUT YOUR PRODUCTS IN A CORPORATE SUSTAINABILITY REPORT

25,9%

USED AN EXTERNALLY RECOGNIZED SUSTAINABILITY LABEL OR CERTIFICATE

MADE SUSTAINABILITY CLAIMS DIRECTLY ON THE PRODUCT LABEL

PUBLISHED THE RESULT OF A LIFE CYCLE ASSESSMENT

23,6%

19,7%

9,1%

Asia

Up to 49 50 to 249

250 and more

931

229

137

652

466

638

891

27,2%

26,2%

40,1%

30,4%

21,5%

27,4%

33,7%

24,1%

17,9%

20,4%

31,9%

9,7%

21,3%

37,6%

24,7%

11,4%

20,4%

26,4%

19,1%

24,9%

24,9%

18,7%

7,0%

25,5%

24,7%

22,3%

20,7%

17,6%

9,1%

4,4%

4,4%

11,8%

5,6%

7,7%

11,9%

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37

Appendix (11): Benefit achieved from actions - geographical area and company size % values Q13. Overall what benefits did you achieve from the actions you implemented

TOTAL if at least one «yes» at q7

Europe

North America

Central & South America

Asia

931

229

137

652

466

638

891

40,2%

40,2%

51,8%

54,9%

39,9%

49,5%

47,3%

35,7%

30,1%

49,6%

48,0%

28,8%

37,6%

48,7%

N= 1.995

46,3%

IMPROVED ABILITY TO MEET CUSTOMER NEEDS

40,5%

GAINED BRAND REPUTATION AWARENESS

Up to 49 50 to 249

250 and more

GAINED COMPETITIVE ADVANTAGE

31,4%

23,5%

20,1%

37,2%

44,6%

24,2%

32,1%

34,7%

REDUCED COST OF PRODUCTION

31,2%

24,1%

32,3%

29,9%

41,9%

24,7%

30,4%

35,1%

25,6%

28,8%

36,5%

32,1%

17,6%

26,8%

37,5%

15,9%

20,5%

27,0%

41,0%

22,3%

25,1%

27,7%

IMPROVED RELATIONSHIP WITH STAKEHOLDERS

IMPROVED THE APPEAL OF THE PRODUCT

29,4%

25,6%

INCREASED MARKET SHARE/SALES

19,6%

13,1%

14,4%

14,6%

31,1%

16,3%

18,8%

22,0%

IMPROVED FUNCTIONALITY OF THE PRODUCT

18,6%

12,8%

14,4%

18,2%

28,5%

17,2%

19,4%

18,9%

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38

Appendix (12): Ratio costs / benefits - geographical area and company size % values Q14. How do you rate the overall cost/benefit ratio for the actions you took?

TOTAL if at least one «yes» at q7

Benefits – Costs

North America

Central & South America

Asia

931

229

137

652

466

638

891

18,5%

34,5%

47,2%

40,6%

21,7%

20,7%

41,9%

37,6%

49,3%

62,3%

57,2%

41,4%

42,7%

54,8%

N= 1.995 N=

Gap =

Europe

30,0%

Up to 49 50 to 249

250 and more

Total

Benefits greater

47,6%

China Gap benefits grater – costs grater 55,1% Benefits greater than costs 71,5%

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39

Appendix (13): Intention to invest in sustainable products - geographical area and company size % values Q17. In the next three years, are you going to invest in sustainable products…: Europe TOTAL

2% 1%

Same as today

28%

More than today

Up to 49 50 to 249

250 and more

272

148

769

566

743

1.000

Don’t know

21,1%

25,8%

10,8%

24,1%

23,0%

20,4%

22,3%

No investments at all

2,4%

2,6%

1,4%

2,9%

3,8%

2,4%

1,8%

Less than today

0,8%

0,7%

1,4%

1,3%

0,9%

1,2%

0,8%

Same as today

30,7%

29,9%

18,9%

24,2%

32,5%

26,9%

25,5%

More than today

45,0%

41,0%

67,6%

47,4%

39,8%

49,1%

49,5%

N=

22%

No investments at all Less than today

Asia

1.061

N= 2.309

Don’t know

Central North & South America America

47,0%

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40