OPI APP DEC 2022 A

BIG INTERVIEW

Johann Pintarich & Dr Martin Waldhäusl, MTH Retail Group December 2022

INSIDE THIS ISSUE l ECI buys ES Tech Group l Canadian dealer groups merge l ODP’s three-year plan l Plastic progress

l Greenwashing dangers l Workplace trends 2023 l NAOPA winners revealed l Industry Week ’22 review

GREEN

Thinking 2022

CONTENTS 20 Big Interview MTH Retail Group 26 Focus ODP’s three-year plan 50 Advertorial Smead rebrands 56 Research Workplace trends 2023 58 Review: Industry Week ’22 Getting together in Vegas 60 Review: NAOPA The winners of 2022

GREEN Big Interview: Buy, build, grow

Rooted firmly in retail, Austria’s MTH Retail Group has considerably spread its wings over the past 20 years. It now commands a solid position in the B2B as well as B2C space in our sector.

Under the entrepreneurial leadership of Group CEO Dr Martin Waldhäusl, the organisation has not only expanded its customer focus to become a multichannel operator, it has also ventured outside its home turf to explore the broader DACH region.

OPI spoke to Waldhäusl and Johann Pintarich –who runs Swiss entity Office World Group – about the need for consolidation in a shrinking market and the necessity to reach customers wherever they are.

FEATURE: PROGRESS ON PLASTIC

30 Feature Greenwashing dangers 32 Feature Recycle or reuse?

34 Feature The plastic problem 38 Advertorial Sylvamo’s promise 40 Spotlight SDGs – what are they?

42 Advertorial Edding’s return box 44 Category Update Vendor investments 52 Research The green last mile 54 Research Green Thinking survey

REGULARS 7 Comment 8 News 14 Green Thinking News 18 OPI Small Talk 64 5 minutes with...

Nathan Mitchell 66 Final Word Martin Eames

December 2022

Most plastics in use today are virgin – or primary – having derived from crude oil or gas. And while progress has been made in terms of reducing the amount produced through the use of recycled material, the total percentage being reused is still woefully low.

There’s currently a general acceptance that we can’t just recycle or dispose our way out of this kind of pollution – demand for the raw product must be drastically reduced.

Thinking 2022

5

COMMENT The OPI team EDITORIAL Editor Heike Dieckmann +44 1462 422 143 heike.dieckmann@opi.net Deputy Editor Michelle Sturman michelle.sturman@opi.net News Editor Andy Braithwaite +33 4 32 62 71 07 andy.braithwaite@opi.net Freelance Contributor David Holes david.holes@opi.net

SALES & MARKETING Chief Commercial Officer Chris Exner +44 7973 186801 chris.exner@opi.net Head of Media Sales Chris Turness +44 7872 684746 chris.turness@opi.net Digital Marketing Manager Aurora Enghis aurora.enghis@opi.net

EVENTS Events Manager Lisa Haywood events@opi.net Event Programmer Sophie Carus sophie.carus@opi.net

PRODUCTION & FINANCE Studio Joel Mitchell joel.mitchell@opi.net Finance & Operations Kelly Hilleard kelly.hilleard@opi.net

PUBLISHERS CEO Steve Hilleard +44 7799 891000 steve.hilleard@opi.net Director Janet Bell +44 7771 658130 janet.bell@opi.net Executive Assistant Debbie Garrand +44 20 3290 1511 debbie.garrand@opi.net

A

A damp squib

s the sustainability issue of OPI is the final magazine of the year, it just so happens to coincide with the annual UN Climate Conference, held in Sharm el-Sheikh in Egypt this time. While COP27 – as the 2022 event is known – has moved forward, overall, in terms of the fight against climate change in some fundamental respects, it has been a bit of a damp squib.

The conference has achieved some fantastic results: a much-deserved historic deal on loss and damage funding, and the launches of the Sharm el-Sheikh Adaptation Agenda and an early warning system for extreme weather by the UN. Other positive developments were a promise by Brazilian president-elect Luiz Inácio Lula da Silva to reverse deforestation in the Amazon; the We Mean Business Coalition reiterating the pledge to move away from fossil fuels; and the increase to 150 nations committing to the Global Methane Pledge.

You don’t have to be an expert to know we need to adopt more sustainable and circular economy practices But desperately required actions to meet the Paris Agreement’s 1.5°C were dismal, especially around phasing out all fossil fuels and reaching net zero. It means the likelihood of attaining this target by 2030 is becoming more and more unlikely. As COP26 President Alok Sharma noted at this year’s event: “I said in Glasgow that the pulse of 1.5°C was weak. Unfortunately, it remains on life support.”

While these are the banner headlines from COP27, there’s always plenty happening behind the scenes, and you don’t have to be an expert to know we need to adopt more sustainable and circular economy practices in our sector.

Many vendors are already making commitments (page 44). From the reseller side, raising the bar as ever, is Lyreco (pages 10 &14).

However, the latest OPI Green Thinking research suggests we’re simply not moving fast enough (page 54).

The business landscape will increasingly be filled with guidance and legislation.

Examples include action against greenwashing (page 30), the UN mandate to commence negotiations for a treaty on plastic pollution (page 34), and the move to electric vehicles, which will become ever more vital for last mile deliveries (page 52).

Get involved – a good start are the UN MICHELLE STURMAN, Sustainable Development Goals (page 40).

DEPUTY EDITOR

Twitter: @opinews Linkedin: opi.net/linkedin Facebook: facebook.com/opimagazine Podcasts: opi.net/podcast App: opi.net/app

Office Products International Ltd (OPI) Focus7 House, Fairclough Hall, Halls Green, Hertfordshire SG4 7DP, UK Tel: +44 20 7841 2950

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The carrier sheet is printed on Satimat Silk paper, which is produced on pulpmanufactured wood obtained from recognised responsible forests and at an FSC® certified mill. It is polywrapped in recyclable plastic that will biodegrade within six months.

No part of this magazine may be reproduced, copied, stored in an electronic retrieval system or transmitted save with written permission or in accordance with provision of the copyright designs and patents act of 1988. Stringent efforts have been made by Office Products International to ensure accuracy. However, due principally to the fact that data cannot always be verified, it is possible that some errors or omissions may occur. Office Products International cannot accept responsibility for such errors or omissions. Office Products International accepts no responsibility for comments made by contributing authors or interviewees that may offend.

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December 2022

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7

NEWS

From left: Paddy Donnelly and Dave Bent

ECI acquires ES Tech Group In October, leading technology provider ECI Software Solutions snapped up UK-based e-commerce and product content specialist ES Tech Group for an undisclosed sum.

ES Tech is principally known for its highly respected EvolutionX e-commerce platform and the FusionPlus content repository solution.

EvolutionX has gained a strong market share in the UK office products channel while, in North America, it has mainly made inroads into other verticals. Meanwhile, FusionPlus is viewed as the ‘go-to’ solution for product content in the UK. ES Tech will now come under ECI’s Distribution division, but will continue

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Canadian dealer groups merge

8

There has been an important development in the Canadian office products channel. At a meeting held at the end of October, the shareholders of leading dealer groups CIS and Basics voted to merge into a single organisation, effective 1 January 2023.

This transaction will bring together 42 independent resellers across Canada. All members will be individual shareholders in the new entity, with Guild Stationers – a separate group of smaller dealers – also having a shareholding. The enlarged organisation is to be headed by Angie Bukta, current President of CIS. Ian Landy, President of Basics, will leave his role at the end of this year.

Bukta highlighted recent industry consolidation as a catalyst for the merger, which included Staples’ acquisition of leading Basics member Denis/Supreme earlier this year. She confirmed to OPI that the two groups had been discussing a combination “for several months”.

Angie Bukta

In the short term, Bukta, in conjunction with board members from both Basics and CIS, will be working on the various legal aspects of the new organisation, including the shareholders’ agreement and the group’s name. Areas such as staffing and the office location also need to be finalised.

to be run by its current management team, including Paddy Donnelly in Europe and Dave Bent in the US. Donnelly said he sees “limitless opportunities” for ES Tech’s customers and teams now it is backed by the “firepower” of ECI. The two businesses seem a good fit, with plenty of cross-selling opportunities. ES Tech’s clients will now be able to benefit from ECI’s back-end ERP systems, while ECI’s Distribution unit can look to expand its addressable market by serving other industries – such as industrial and MRO – that ES Tech has been doing well in across North America.

It will also be interesting to see where ECI goes in the US with its newly acquired content syndication capabilities; no doubt, future discussions will be taking place with various stakeholders in the business products channel to see where its new platform could fit in.

For more on ES Tech Group, see our Big Interview with Donnelly and Bent in the September issue of OPI (page 20).

Comercial del Sur buys Carlin

Spain-based office supplies group Comercial del Sur has strengthened its position in its home market, announcing the acquisition of leading franchise chain Carlin for an undisclosed sum.

Established in 1989, Carlin currently has around 250 franchisees and some 300 outlets – down from almost 500 stores ten years ago and a reported 526 in 2018. There will now be a transition period, with the transaction becoming fully effective on 1 January 2023.

NEWS

Lyreco confirms B2B marketplace

Lyreco has officially launched its B2B marketplace platform, Sustainable by Lyreco. In partnership with marketplace provider Mirakl, Sustainable by Lyreco has been available in the Italian market since September. The reseller said it had chosen to conduct a testing phase in one country before it rolls out the initiative to other nations, which is expected to start happening next year.

“After undertaking research among its customers, Lyreco worked with external and internal experts to develop a clear and transparent assessment methodology to evaluate which sellers and products would be suitable for onboarding to the new platform,” the firm said.

To be approved to operate on the platform, all sellers must be able to prove they are recognised as sustainable by a reputable organisation such as EcoVadis or B-Corp. Alternatively, they can complete Lyreco’s assessment questionnaire, which provides them with a ‘Sustainability Score’.

Products – and their packaging – in addition to being sold by an assessed seller – also have to meet certain Lyreco sustainability criteria under three umbrella terms:

Dealer delivery solution goes live The Dealer Delivery Network (DDN) last-mile delivery solution for US independent dealers has gone live.

Last year, large dealer consortium SCIG announced the creation of an entity to develop a software platform – called DDN Hub – aimed at facilitating last-mile shipments to multilocation customers outside of a contracting dealer’s delivery footprint. Following a testing phase, the initiative has now moved to actual account onboarding and order fulfilment.

The DDN Hub was expected to be released in May, but was delayed to add accounting and payment functionalities – such as ACH electronic payment of fees to servicing resellers – to the original specifications. Dealer back-end systems can be fully integrated with the Hub or, as preferred by the dealer, used with various levels of manual processing.

A follow-on version will incorporate additional features to enable participants to coordinate on-site servicing dealer inventory with wholesaler shipments.

• Planet by Lyreco (protection of the environment) • People at work by Lyreco (well-being and safety of people at work) • Community by Lyreco (improving the societal impact on local communities).

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BOSS charity launches patronage scheme

10

The BOSS Business Supplies Charity has announced the launch of an individual and corporate patronage scheme. All those who have a connection with the business supplies industry are being invited to become an Individual Patron and partner with the charity on a regular basis for £50 ($55) per month.

In addition, 12 businesses that are among the charity’s strongest supporters are being recruited as Corporate Patrons.

All Patrons will receive acknowledgement on the new BOSS Charity website and a quarterly newsletter. They will also have the

chance to attend the first annual BOSS Charity Patrons’ Dinner at Stationers’ Hall on 16 February 2023 with guest speaker Eddie ‘the Eagle’ Edwards.

“We have launched the patronage scheme in response to the extraordinarily steep cost of living increases, which are now causing real distress,” said BOSS Charity Chair Martin Wilde. “Our discussions with businesses and individuals over recent weeks have shown there is a real desire to support the charity’s work – and becoming a Patron is a great way of doing just that.”

The independent charity – first established in 1925 by what later

became the BOSS Federation – has also announced the date of its next annual Charity Golf and Spa Day as 14 June 2023.

For more details about the BOSS Charity’s Individual Patrons Scheme, please contact Vice Chair Kelly Hilleard at Kelly@BOSSCharity.org.

ON THE MOVE

From left: Robert Brech and Rudolf Egerer

Peter Birks

Leading German independent dealer Kaut-Bullinger has been acquired by its former minority shareholder. The Egerer family, which previously held a 38% stake in the company, has now become the sole shareholder following a transaction between themselves and the Schambeck family, which held the remaining 62%. Financial details of the transaction were not disclosed.

The company has overcome some serious challenges in the past six years since Robert Brech was drafted in as CEO to lead a restructuring. He has had to make some difficult decisions, including exiting the retail business and closing Kaut-Bullinger’s iconic store in Munich.

The slimmed-down reseller now has annual sales of around €90 million ($87 million).

The new owners clearly have confidence in Brech. Despite his turnaround task seemingly complete now, it has been confirmed he will stay on as CEO.

Guichard family to delist Manutan

Shahin Hatamian

Philippe Chaventré

Michelle Naphtali

Experienced exec joins Nemo Office Club UK dealer organisation Nemo Office Club has named Nick Wilkinson as Senior Business Development Manager, succeeding Mark Allan who moved to a position at one of Nemo Office Club’s members.

Wilkinson has spent most of his career in our industry since joining Spicers in 1987. He has also worked for VOW, Snopake and The Business Performance Group/Highlands.

ECI makes senior appointment Shahin Hatamian has joined ECI Software Solutions as Chief Product Officer.

In his new role, Hatamian “will guide ECI’s product vision and be responsible for translating that vision into a strategy roadmap, overseeing the creation and execution of all product-related activities”.

Former HP exec joins Armor Remanufactured ink and toner supplier Armor Print Solutions has named Philippe Chaventré as Director of its key French market in a newly created role.

Until recently Sales Director of HP France’s Office Printing Services & Solutions division, Chaventré spent more than 14 years in a number of roles at HP’s Personal Systems and Printing units, having previously worked for the Hewlett-Packard Enterprise arm.

Senior promotion at Complete UK dealer Complete has appointed experienced executive Michelle Naphtali to the role of Managing Director of Sales. Reporting to Chief Commercial Officer Adam Noble, she will be responsible for the reseller’s three regional managing directors.

Naphtali joined Complete earlier this year in a people development role. She has 30 years’ experience in the UK business products channel and has worked for well-known companies such as ISA, Corporate Express and UKOS.

December 2022

The majority shareholders of European MRO and business products reseller Manutan are prepared to pay a hefty premium to take the company private.

The Guichard family group have proposed a public tender offer to acquire all of the firm’s outstanding shares. They are offering up to €105 per share, a significant premium on the closing price of €66 on 25 October.

The Guichard family group control around 73.5% of Manutan’s share capital, meaning it will require around €275 million ($275 million) to acquire all of the outstanding shares. Once they have secured 90% ownership of the share capital and voting rights, they will be able to delist the firm from the Euronext Paris stock exchange.

Nick Wilkinson

Leadership change at Ryman Peter Birks, CEO of Ryman and the London Graphic Centre, left the business in October.

Birks – who formerly ran Staples’ retail operations in the UK – joined Ryman in mid-2021 in a new position at the company.

Chairman Theo Paphitis told OPI: “Having spent many years running the business personally, I am delighted to once again be running the day-to-day activities of Ryman; steering it through a challenging time for the retail sector.”

NEWS

New ownership at Kaut-Bullinger

11

NEWS

Jamie Fellowes & Barry Lane honoured

ON THE MOVE

Dave McQuarrie

Jamie Fellowes

Fellowes Brands Chairman Jamie Fellowes has been named 2022 Legend of the Industry by the Business Solutions Association (BSA).

He was presented with the award at the BSA Awards Luncheon on 10 November during Industry Week ’22 in Las Vegas (for more on the event, see page 58).

Fellowes began working in the family business while in high school in 1964, became a full-time employee in 1969, and has devoted his entire career to Fellowes Inc. He’s also been active in the wider industry for the past 50 years, being involved in several associations. He currently serves on a range of philanthropic charity boards and has been the recipient of many awards over the course of his career.

BSA President Travis Kaste referred to Fellowes as “truly an icon in our industry”.

Also honoured during the luncheon was Barry Lane who received the 2022 BSA Leadership Award. He began his career in the commercial OP industry in 1978 and joined Avery in 1982 where he is currently VP of Commercial Sales.

Lane has always put his energy into building customer relationships, spearheading manufacturer peer group exchanges and supporting the industry’s charitable efforts.

He’s been actively involved in several trade associations, particularly BSA and AOPD.

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Barry Lane

12

John Bruno

Constance Martiny Sondag

Simon Allan-Brooks

New Chief Commercial Officer at HP Inc HP Inc has appointed a permanent Chief Commercial Officer (CCO) to take on the role vacated by Christoph Schell earlier this year.

Since then, company veteran Luciana Broggi has been filling in on an interim basis.

Along with the news that Broggi is to retire from HP after more than 30 years, HP has confirmed that Dave McQuarrie, currently General Manager of Personal Systems, will be its new CCO as of early 2023. McQuarrie has been with the print and PC giant since 2017, joining from Lenovo.

Xerox names COO Xerox has appointed a COO following Steve Bandrowczak’s promotion to CEO earlier this year after the sudden death of John Visentin.

Joining the tech firm in the role is John Bruno, who most recently spent seven years at insurance brokerage Aon, serving as COO and CEO of its Data & Analytics Services division.

He has also held senior positions at NCR, UPS, Cisco, Merrill Lynch and Goldman Sachs.

Unite exec takes on bigger role Constance Martiny Sondag, previously Country Manager France at European procurement marketplace Unite for more than ten years, has been promoted to VP Sales Northern and Southern Europe.

Viking appoints regional MD Viking UK and Ireland has named an experienced supply chain exec as its Managing Director. RAJA-owned Viking has promoted from within for the role, appointing Simon Allan-Brooks to lead the business. Allan-Brooks joined the company in 2020 as Logistics Director.

The appointment of a Managing Director for the UK and Ireland forms part of RAJA’s strategy to give more autonomy to individual operating divisions.

SSI adds staff members Canada-based technology services provider SSI has expanded its team to support its growing user base. Joining the company are Rowen Rio Alfonso and Sara Densmore, who have been hired to speed up the development Rowen Rio Alfonso of new software features and provide additional technical support.

Alfonso will develop new features for SSI Web, the company’s web storefront, and give technical support to SSI customers using the solution. Densmore, meanwhile, joined SSI’s support staff and will provide technical Sara Densmore assistance to customers.

European visual communications and office furniture supplier Rocada has established a subsidiary in the UK as it looks to grow in the UK and Irish markets.

The Spain-based, family-owned manufacturer, which was founded in 1976, established Rocada UK as an entity a few months ago and the new subsidiary began trading on 10 October. The company has drafted in Ken Trenberth as a Director to run the operation.

Trenberth is a familiar face in the UK business products sector, particularly from his time at Setten & Durward and then Rapesco. He is charged with launching the Rocada brand into the market, and will initially be focusing on gaining traction in the OP channel, especially with mid-market resellers.

NEWS

Rocada launches in the UK

Climb of Life 2022 raises more than £50,000 About 90 participants took part in the Climb of Life on 4 November as the UK business products industry once again went the extra mile to raise funds for the Institute of Cancer Research (ICR).

While 2022 is the 35th year of the Climb of Life, this year it was christened ‘Sweet 16’ to mark the 16th year the event has supported the ICR. Tackling cold and windy – and this year incredibly boggy – conditions in England’s Lake District, eight groups of hikers conquered a total of ten peaks between them, raising almost £51,500 ($59,100) in the process.

In total, the Climb of Life has now

donated more than £1.75 million to the cancer research charity.

Leading the fundraising efforts were OPI, Hamelin and EVO, with Avery UK and Office Power also recognised by organiser Philip Lawson for raising significant amounts.

Richard Hoey, ICR’s Director of Communications, said: “It is fundraising like the Climb of Life that enables our scientists to continue finding new approaches to cancer treatment. It is hard to pronounce, but we have recently found working with the Royal Marsden that the experimental drug guadecitabine may reverse a cancer’s resistance to

immunotherapy – making it sensitive to treatment again. This gives new hope to a number of patients in the later stages of the disease, possibly prolonging their lives.”

The next Climb of Life will be held on 10 November 2023.

December 2022 13

GREEN THINKING N REE G in k Thin g

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Left to right: Luisa Harman, Social Value Specialist; Andrew Bryers, Head of Sustainability at Lyreco UK & Ireland; Michael Walby, Head of Sales Ireland

2022

Lyreco relaunches Goodness Supplier Support Programme Lyreco UK & Ireland has launched the Lyreco Goodness Support Programme for 2023 to assist microbusinesses and social enterprises.

After the comprehensive success of its award-winning Microbusiness Support Programme in 2021 – which saw ten companies receiving support packages that totalled £250,000 ($295,000) – the reseller is reintroducing the initiative.

Successful applicants will each be offered a package worth £25,000 in business and marketing support. This

will include: a bespoke page on the Lyreco webshop; external marketing and communication assistance; a free catalogue listing of up to ten products or services; preferred payments days; access to the Lyreco sales force; a dedicated account manager; and 12 months of ongoing business support.

Lyreco hopes to back ambitious businesses that align with its CSR and environmental credentials and those providing products and services in areas such as PPE, hygiene, catering

supplies, office furniture, workplace technology and office products.

The initiative follows the Lyreco Goodness philosophy whereby the business approaches the planet, its people, suppliers and products with social value and sustainability at the centre of its decision-making.

Recognised for this effort, the programme was crowned the Best Private Sector Project Award at the 2022 National Social Value Awards.

Speaking about the re-launch, Lyreco UK & Ireland Head of Sustainability Andrew Bryers said: “Since launching our award-winning Support Programme in 2021, we have been able to onboard and work with some great national microbusinesses.

“For 2023, we have strengthened both the application and support process and have expanded it to include social enterprises, so we can support a wider number of suppliers with different category solutions that meet our CSR credentials.

“All businesses are being impacted by a number of current global issues, from climate change to huge increases in energy prices. That’s why it’s so important for Lyreco to recognise this and support our national businesses where we can.”

The programme will remain open until all spots are filled.

To apply, visit https://why. lyreco.com/lyreco-goodness/ supplier-support-programme/ support-programme-apply

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Epson exits laser market in sustainability focus

14

Print OEM Epson has confirmed it will withdraw from the laser printer hardware market in order to focus on inkjet technologies. Last year, when it presented its Epson 25 Renewed corporate vision, the Japan-based firm put sustainability at the heart of its strategy.

The manufacturer promised to spend ¥100 billion ($720 million) over ten years in environment-related investments, including focusing resources on the development of products and services that cause less harm to the planet. “Inkjet produces less waste and consumes lower power compared to other printing technologies,” it said.

Now, Epson has reaffirmed what it calls a “significant commitment” to heat-free inkjet technology, which it claims uses just a quarter of the energy of comparable laser products. At the same time, it has announced it will end the sale and distribution of laser printer hardware in its remaining Asian and European markets by 2026, although it will continue to support customers by supplying consumables and spare parts after this time.

Paper company Sylvamo has announced a $3 million expanded partnership with leading NGO World Wide Fund Nature (WWF) to further its commitment to forest conservation and restoration. The initiative is part of Sylvamo’s environmental, social and governance (ESG) strategy and 2030 goals.

The enhanced collaboration through WWF’s Forests Forward programme will enable the supplier to make progress on its task to ensure healthy and productive forest ecosystems by focusing on sustainable sourcing, conservation and restoration projects. Through the Forests Forward programme, Sylvamo is collaborating with WWF to:

GREEN THINKING NEWS

Sylvamo partners with WWF

• grow the availability of fibre from responsibly managed forests in Europe and North America; • advance understanding of the role paper manufacturing plays in a circular, low-carbon economy in Europe; • expand restoration in Brazil’s Atlantic Forest, focusing on the Mogi Guaçu River basin, where Sylvamo has manufacturing operations.

“Sylvamo is demonstrating real leadership by focusing on responsible wood fibre sourcing and strategic nature-based investments in critical landscapes,” said Kerry Cesareo, SVP for Forests at WWF.

Interest in sustainable IT products growing

Sustainable cleaning solutions manufacturer Greenspeed has said smaller-format items are growing in popularity. The Europe-based supplier said the onus was on the market “to reduce waste by using the right cleaning products”.

“More and more cleaning products now come in a smaller form,” the company noted. “They benefit the environment and are easy to use: people no longer have to lug heavy items around and can significantly reduce their plastic waste.

The question is whether all compact goods are equally practical.

Loose powders or soluble capsules that don’t dissolve completely are a step in the right direction, but not the best solution, for instance, says the vendor.

Compared with six ready-to-use 300 ml sprays, Greenspeed claims that its Probio Tabs compact tablets, meanwhile, can save up to 99% in CO2 emissions during transportation, and – after 1,000 refills – will reduce plastic usage and CO2 by 49 kg and 86 kg respectively.

December 2022

IT products certification organisation TCO Development has said that interest in more sustainable choices is growing at “record speed”. TCO introduced Generation 9 of its certification programme at the end of 2021.

Since then, it has certified more than 1,000 products, exceeding the rate for the previous generation despite stricter environmental and social sustainability criteria.

“The direction is clear,” TCO stated.

“The IT industry’s interest in sustainability is at a record high and continues to grow.

Engagement among IT brands is largely driven by purchasers in both the private and public sectors – and they are demanding more sustainable IT products.”

Trend towards more compact products, says Greenspeed

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GREEN THINKING NEWS

IN BRIEF

The clock is ticking. We are in the fight of our lives. And we are losing. Greenhouse gas emissions keep growing. Global temperatures keep rising. And our planet is fast approaching tipping points that will make climate chaos irreversible. We are on a highway to climate hell with our foot still on the accelerator. […] Humanity has a choice: cooperate or perish. It is either a Climate Solidarity Pact – or a Collective Suicide Pact UN Secretary-General António Guterres

10.6%

Expected in greenhous crease in global eg by 2030 un as emissions nationally dder current contributio etermined n commitm ents Sourc e: UNFCC

C

PICTURE OF THE MONTH

COP27 saw kids stand up for their rights at the first ever Children and Youth Pavilion in the history of the UN climate conference. Among the attendees was 13-year-old Colombian climate activist Francisco Javier Vera (pictured).

Navigator gets SBTi approval

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Portugal-based The Navigator Company has received approval for its targets to reduce greenhouse gas (GHG) emissions from the Science Based Targets Initiative (SBTi). The paper manufacturer has committed to reducing Scope 1 and Scope 2 GHGs by 63% by 2035 compared with 2020. It has also said it will cut Scope 3 emissions by 37.5%.

16

New certifications for G&G Ninestar brand G&G has received Forest Stewardship Council chain of custody certification for its copy, label and photo papers. The company said it went through a “rigorous auditing process” conducted by Switzerland-based testing, inspection and certification organisation SGS.

Anti-greenwashing success Paper advocacy organisation Two Sides has said more than 970 companies have removed misleading anti-paper statements in the past 12 years

8 billion

Global population milestone that was projected by 15 November 2022, according to the United Nations

$4-$7 trillion Estimated amount the world will require per year to shift towards sustainable development and meet agreed Paris Agreement targets

SMALL TALK

RISING to the

CHALLENGE OPI highlights some of the core messages from a recent podcast episode with Colin Campbell, Managing Director of leading Scottish dealer Langstane, which is 75 years old this year

We must be sharper than ever right now and maintain that flexibility and adaptability we had during the COVID challenge Is being a Scottish business an advantage when bidding on local contracts?

“Sometimes, but not enough. It boils down to ‘business is business’ and you have to be competitive, in the right place at the right time and excellent at customer service. We’ve got to be all those things. We don’t just get [business] because we’re local.”

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Are you happy with your supply chain?

“While our competitors seem to be quite good at getting product into our area, our suppliers aren’t so clever. We aren’t receiving goods as quickly as we need to at times, so we have to still stock to provide the service we want to give. It’s very difficult getting next-day delivery from our sources.

“There was a time when you could rely on the wholesalers to do it...”

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How do you grow share of customer wallet?

“It’s the simple basic principle that, once we’ve developed strong customer relationships and have a good supply going with them, we look for other products and services we can offer.

It’s much easier to grow sales by selling more to an existing client than by finding a new one.

“We’ve been doing it like that to this day – it still works; it’s worked since 1947 and will continue to do so. There is such a diverse range of things we can begin to introduce to our customers – the opportunities are limitless.”

What’s been the impact of work-from-home customers for you?

“There’s been a lot of leakage, and I would say the whole industry has suffered from it. The easy route is you go online and buy everything from Amazon or other, similar options.

“We are slowly but surely getting back out there, reminding customers that we are still very much around.”

Your view on Ambiente 2023?

“We looked at attending and felt the content didn’t tick enough boxes for us. But we’ll keep an eye on [the event] and see if it develops to become more appropriate.”

What does the future hold?

“It’s hard to actually make any predictions because of so much uncertainty around us that’s out of our control. We’ve got to make sure we do the right things, so we’re in control of our own actions and decisions.

“We must be sharper than ever right now and maintain that flexibility and adaptability we had during the COVID challenge.”

BIG INTERVIEW

BUY, BUILD,

grow

R

A consolidator in the office supplies space – that’s MTH Retail Group’s remit. From the resulting synergies then follows organic growth

www.opi.net

ooted firmly in retail, Austria’s MTH Retail Group has considerably spread its wings over the past 20 years. It now commands a solid position in the B2B as well as B2C space in our sector. Under the leadership of Group CEO Dr Martin Waldhäusl, the organisation has not only expanded its customer focus to become a multichannel operator, it has also ventured outside its home turf to explore other markets.

It has done so through a steady M&A campaign which, in Switzerland certainly, has catapulted it to a market leadership position.

OPI’s Heike Dieckmann spoke to both Waldhäusl and Johann Pintarich – who runs Swiss entity Office World Group – about the need for consolidation in a shrinking market and the necessity to reach customers wherever they are. In our sector, this is increasingly online, but the death knell of traditional retail has certainly not rung yet.

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OPI: Martin and Johann, this is your first interview with OPI and while our readers will be familiar with at least part of the company, it would be great to have a short introduction. Martin, let’s start with you.

Can you give me an overview of MTH Retail Group and your role within it?

Martin Waldhäusl: Sure. My background is in investment banking and I’m the entrepreneur behind the whole MTH Group which was set up in the 1990s. MTH stands for Management Trust Holding and is a family-run entity headquartered in Austria comprising a portfolio of companies which operate in three

business areas. One of these is MTH Retail Group which, as the name suggests, has a focus on B2B and B2C retail with a product emphasis on office supplies.

Overall, MTH has revenues of roughly €1.2 billion ($1.2 billion) and we employ about 6,000 people globally. It’s essentially a large group of medium-sized organisations.

OPI: How big is MTH Retail within the group?

MW: It is by far the biggest part with about €900 million in revenues. In terms of geographical coverage, MTH Retail concentrates purely on the DACH region – Germany, Austria and Switzerland. We have approximately 5,000 staff.

OPI: Before we delve deeper into the various components of MTH Retail, can you tell me where you fit into the picture Johann?

Johann Pintarich: I joined MTH Retail in 2011. Beforehand, I had worked for Dutch operator Buhrmann in its paper merchanting division and then at Corporate Express/ Staples. I ran the Austrian and Central European business for Corporate Express for nearly ten years up to 2011.

BIG INTERVIEW Dr Martin Waldhäusl & Johann Pintarich From left: Johann Pintarich and Dr Martin Waldhӓusl

The B2B side is about 60% of our business right now At MTH Retail, I was Managing Director of Austrian B2B contract operator Pagro Direkt for several years. Before I joined, the group didn’t really have a big focus on B2B in the area of large and medium-sized accounts.

I moved to Switzerland when MTH Retail bought OfficeWorld and iba which we merged to create OWIBA. I have been there ever since in a number of roles.

December 2022

OPI: Looking at an organisational chart (see page 24), there are a lot of companies under the MTH Retail umbrella, including bricks-and-mortar and online resellers, and wholesalers with a B2C as well as B2B focus. How do you segment all the various components of the group?

MW: We are predominantly organised in geographical terms because of the slightly different models in each country. There are local management structures with country

CEOs, but with some overarching group functions coming from our HQ in Austria.

Germany is mainly B2C with two non-food discount chains – Mäc Geiz and Pfennigpfeiffer, so for your audience this is probably not hugely relevant. That said, both have a focus on stationery products.

In Austria, we have three components which are a mix of B2C and B2B: non-food chain Libro which sells, directly to the end consumer, electronics, gifts, stationery and books; Pagro Diskont is a speciality retailer for office, school and household items aimed both at private and business customers.

Pagro Direkt, finally, is a B2B platform with an extensive range of office products – this is the one Johann has just referred to.

Switzerland is a bit different in that it’s mainly B2B with a broad set of companies under the Office World Group umbrella. These are: Office World – stores and online; B2B reseller iba; wholesalers Ecomedia, Oridis and Papedis; and managed print services (MPS) provider Tramondi. Johann will expand on all of these I’m sure.

Overall, the B2B side is about 60% of our business right now.

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Dr Martin Waldhäusl & Johann Pintarich BIG INTERVIEW

OPI: With so many entities, what’s your overarching strategy?

MW: Essentially, we follow a buy-and-build strategy in different verticals – that’s the short answer. We acquire small and medium-sized companies and try and make them better.

Some come out of insolvency – Libro in Austria is a good example of this and it’s how MTH Retail started – while others may need restructuring. If we do that successfully, we then look for similar companies in the same vertical to achieve even greater relevance.

The idea is always to be a consolidator in the office supplies space, to create synergies out of this consolidation and then put ourselves into positions from which we can generate organic growth.

OPI: From a B2B perspective – if it’s even possible to generalise – can you pinpoint your target audience?

MW: We have a focus on small to medium-sized businesses. We can service large corporates and are very proud of this, but they are not our go-to audience.

JP: One of the advantages of having so many brands and channels is that it allows us to attract a wide range of different customers.

And often that addressable client base blurs.

Libro in Austria is quite family-orientated, for instance, but Pagro has a more functional outlook with a stronger B2B footprint – the distinction between the private and the professional user is not necessarily clear-cut.

The downside with a very broad approach is you run the risk of losing a bit of focus. On the other hand, our remit is to sell stationery products and office supplies to whatever customer and through whatever channel.

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OPI: Let’s talk about Switzerland where Johann is in charge – this is the part of MTH Retail that is best known to our readership.

JP: As I said, I moved to Switzerland in 2017 when we acquired OWIBA from Migros. I took over from Christa Furter in 2018, initially as

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CEO of iba. Since the end of last year, I’ve been CEO of the whole of the Office World Group which comprises the various entities Martin referred to.

Overall in the Swiss business, we have sales of around CHF400 million ($404 million) and 600 members of staff based in three different logistics centres and 19 Office World stores.

OPI: Tell me more about these entities.

JP: Iba is a pure B2B business with contract customers – we call them ‘attended’ clients.

It’s the classical sales model: we have sales reps and feet on the street for the larger clients as well as an outbound telemarketing team for smaller customers.

Whatever the size of the customer, every one of these accounts has a person looking after them and their activities with us.

Office World is a bit broader. It targets the ‘unattended’ customers. Still B2B to a large extent, but with no contracts in place, no individual price lists, and so on.

OPI: You said 19 stores. When MTH Retail bought them, I believe there were 24. And I seem to remember reading something about ambitions to double that number.

What happened?

MW: That was me – very well remembered.

It was an overestimation coming from my experience in Austria. We’ve learned since that the growth of the Office World brand would come primarily from the online business as opposed to the stores. And we are satisfied with that growth.

But you are quite right, my approach and outlook were different when we first bought the Swiss operation.

OPI: There’s also a wholesale component with Ecomedia, Papedis and Oridis. How large is this part?

JP: The three wholesalers combined are about the same size as iba and Office World.

In terms of product focus, Ecomedia is the

The Swiss HQ and logistics operations at various sites

OPI: You also referred to Tramondi earlier.

JP: Yes. Tramondi deals directly with Canon, Ricoh and Sharp. It’s a qualified partner for corporate customers and supplies them with MPS solutions, but also with office equipment and furniture.

Until earlier this year, we had another small MPS business – DocuServ – which we divested and an entity called Office Leader which we migrated into iba.

We are always open for new partnerships and acquisition opportunities OPI: Somewhere in the mix I think there’s also PEG, a cooperative of local Swiss stationers. Where does this fit in?

MW: PEG is our joint venture partner. It was set up as a group of individual stationery stores many years ago to facilitate joint purchasing and the offering of a range of services to its members. PEG is part of OFFIX Holding which has shares in Office World Group.

OPI: Are there any plans to combine all your operations under just one brand, either in the individual countries or across the DACH region?

Office World Group, in its current format and with Johann Pintarich at the helm, has only been in existence for about a year. The coming together of the various components began about 12 years ago, however.

Here’s a potted history of events since iba CEO Peter Basci, son of company founder Ilo Basci, sold his business to Swiss giant Migros.

• 2010: iba is sold to Migros which owns the Office World chain of stores; Peter Basci retires • 2011: Christa Furter, previously Marketing Director, is named CEO of iba • 2012: iba acquires Tramondi • 2015: Office World CEO Stéphane Willa leaves; Furter becomes Office World/iba Group CEO • 2017: Migros sells Office World and iba to MTH Retail Group • 2018: Furter departs; Annett Seonbucher and Johann Pintarich are appointed CEOs of Office World and iba respectively; Patrick Lobsiger replaces Annett Seonbucher shortly afterwards • 2021: Office World Holding and OFFIX Holding enter a joint venture agreement creating Office World Group; OFFIX Holding has under its umbrella wholesalers Papedis, Ecomedia and Oridis, as well as MPS firm DocuServ (now divested) and B2B reseller Office Leader (now part of iba); Johann Pintarich becomes sole CEO of Office World Group MW: I don’t think this makes sense right now.

We are targeting quite different customer groups with brands they are familiar with. Why alienate them with something else?

What we are most certainly looking to do – apart from generating good organic growth both in the B2B and B2C businesses – is to continue our expansion strategy. We are always open for new partnerships and acquisition opportunities.

OPI: In any specific geographies or even beyond your current markets?

December 2022

OPI: All quite complex, with a fair amount of M&A, consolidation as well as personnel change over the years (see ‘A Swiss journey’, right). What’s been your strategy, Martin, specifically for the Swiss market?

MW: As you know, this industry is not a growth sector. Digitisation has been going on for years and being a consolidator has become a no-brainer. Our colleagues at PBS Holding will tell you the same thing I’m sure, and are pursuing a similar multichannel strategy – although they’re more focused on Eastern European markets.

Our aim is to be a one-stop-shop for customers – any customers – where they can find everything they could ever want or need under the broad business supplies umbrella.

At the same time, we aim to create synergies by consolidating small and medium-sized companies which then allows them to be more competitive. We’ve done this pretty well over the past few years.

A SWISS JOURNEY

BIG INTERVIEW Dr Martin Waldhäusl & Johann Pintarich

country’s market leader for ink, toner and paper as well as printer accessories. Papedis is strongest in stationery and office supplies while Oridis develops customised service packages for retail clients.

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Dr Martin Waldhäusl & Johann Pintarich BIG INTERVIEW

MW: We are targeting mainly the DACH region, with little focus outside that geography.

OPI: Talking about growth – with your sizeable retail presence, it must have been a challenge throughout the pandemic period.

MW: COVID certainly had a significant impact on the business, particularly during the lockdowns when we had to shut our stores. It was very noticeable in Germany, a bit less so in Austria, and only very little in Switzerland. The latter was partly because when the physical Office World stores were closed, customers went to our online platform instead, so the damage was mitigated.

JP: Also, we had two lockdowns in Switzerland. The first one came when COVID first really hit Europe in March 2020 and we had to shut all stores. But through the second lockdown at the end of that year, we were allowed to open as a basic goods provider of office supplies. It meant we could at least sell part of the assortment.

We’re now comparing favourably again to 2019 for the whole of Office World Group.

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OPI: COVID gave us hybrid working too, of course, which remains a huge part of current work patterns. How has this affected you? Do customers – whose employees haven’t returned to the office full time – still buy from you, online or otherwise, or do they head to Amazon or elsewhere?

JP: We know from analysis that hybrid workers have less consumption, certainly when working from a home office, but often they take their supplies back from the office when they go in.

As Martin said, demand for office products is shrinking overall due to digitisation although, as far as we can tell, neither COVID nor the resulting increase of hybrid working has accelerated this decline.

For the majority of our customer base, hybrid working is also not a huge factor. The smaller the business, the less likely it is there’s been a big workplace shift. It tends to be the large corporate organisations that offer hybrid working – they simply have to due to employee pressures and demands.

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OPI: Has your product portfolio changed as a result of the pandemic or diminishing demand for core OP? JP: We sell a lot more technical equipment now and in that sense homeworking has helped. But you don’t replace a webcam or a keyboard like you do Post-it Notes.

Apart from some specialised dealers, nobody in our space sold masks before. We do now, but this has already reached lower

Austria

Switzerland

levels. Where we do see continued demand – and I think it will stay – is for disinfection and hygiene products. We didn’t sell these pre-COVID and we have good growth here.

It’s not a substantial part of our business but it helps offset some declines.

OPI: How would you describe the competitive landscape?

JP: In Switzerland, nobody has exited the market in the past two years, but the space is definitely getting more and more consolidated, especially in the contract business.

OPI: Your biggest competitor is Lyreco, is that right?

JP: Yes, for the contract business.

MW: Lyreco is an important competitor in all its markets – it’s doing a very good job.

OPI: I appreciate you probably don’t want to talk about the competition too much, but who else is causing you a headache?

MW: I’m not sure about a headache. And there’s not really a simple answer because you’re typically not comparing like with like. A company such as Lyreco focuses on a certain sales channel or customer segment – the B2B direct business, specifically with large global customers. We’re not in that particular space, with the exception of some iba business.

Other companies have a broader approach, either geographically or in terms of product offering. RAJA Group or PBS Holding are good examples.

OPI: What about the mighty Amazon – is it mighty in your markets?

MW: We don’t have the exact numbers, but yes, it’s big. In Austria, Amazon is probably the leader in the online direct business, though not necessarily in stationery products.

Switzerland is different because there are sizeable local online players. Digitec Galaxus

Germany

suppliers and customers. You have to work together to weather the storm to ensure you survive it without too much damage.

OPI: In terms of the overall European macroeconomic and political landscape, these are challenging times. What can you do to keep your head above water and mitigate any impact?

OPI: Talking of partnerships and given the supply chain constraints we’ve had – have you expanded your vendor portfolio over the past couple of years?

MW: We haven’t, no. Our range of suppliers has actually been concentrated. It’s a result of the consolidation process as well as focusing more on private label. We mostly deal with European suppliers and have very long-term relationships with them.

Of course, with the supply chain issues you mention in mind, we sometimes purchase products on the spot market, but that’s not our typical approach.

You have to work together to weather the storm to ensure you survive it without too much damage

MTH Retail Group HQ in Austria

MW: Absolutely agreed, these are tricky times.

It all started with COVID at the beginning of 2020 and we’ve been stumbling from crisis to crisis ever since. And they are mostly unprecedented situations.

Lockdowns, followed by reduced frequency and footfall in city centre stores, price increases, soaring inflation, forthcoming recession fears – it’s a multiple crises situation I’m sure you hear about in every interview.

Specifically for our business, order values are going down, so more orders but less in the basket, which creates higher costs. We have some initiatives in place to stop this evolution, such as pricing for multipacks, recommendations for ideal order sizes, etc, and they’re working quite well.

We are also seeing substantial price increases from our vendors and have no choice but to pass those on to our customers.

That is a huge challenge right now.

In terms of mitigation, I guess the important factor is that you remain a trusted and reliable partner in among all the obstacles – to your

OPI: How important is private label to you?

MW: It helps with the identity of each brand.

Many of our brands have individual private label products which align the item with the brand. We can also create synergies on a group level. It’s very important.

BIG INTERVIEW Dr Martin Waldhäusl & Johann Pintarich

is the number one, Brack number two, plus two or three others, so Amazon is definitely not a market leader in the country in our sector.

OPI: Finally, where will future growth come from?

MW: Most definitely from M&A and further consolidation. As regards organic growth, the biggest opportunities come from the online parts of our businesses.

That said, while traditional retail sales are fairly flat, there has been something of a renaissance. During the pandemic in particular, customers rediscovered that they like their local brands and don’t want to buy everything from Amazon. As such, many local businesses experienced a kind of revival which was also good for footfall and frequency in our stores. I wouldn’t write retail off just yet.

December 2022 25

FOCUS

Inside ODP’S

THREE-YEAR PLAN

In early November, The ODP Corporation held a long-awaited virtual investor conference to provide details of its new business unit structure and its strategy for the next three years. OPI’s Andy Braithwaite tuned in...

www.opi.net

S

26

everal months ago, it still appeared as if The ODP Corporation (ODP) would be broken in two. Its Office Depot consumer-facing businesses (the retail network and officedepot.com) were set to be sold off or, failing that, spun off into a separate, publicly listed company.

Meanwhile, ODP would continue as a B2B-focused group with reselling (ODP Business Solutions – BSD) and supply chain operations (Veyer), plus its new marketplace model, Varis.

It all changed in June when ODP announced it had rejected buyout offers for Office Depot and scrapped plans to split the group up. Commenting at the time on the decision to keep all its businesses under common ownership, ODP cited, among other things, the benefits of maintaining purchasing and supply chain synergies.

Since then, it has been finalising what it calls its ‘four-business-unit (4BU) structure’, promising it would update the investment community on its strategy before the end of the year. This happened on 2 November, when the company held an investor day to coincide with the publication of its third quarter results.

Senior ODP executives took part in a two-and-a-half-hour virtual conference that included individual presentations by BU leaders and a Q&A session as the company presented its plans for the 2023-2025 period.

The rationale for the 4BU model is clearly an

attempt to increase ODP’s share price by ‘unlocking’ value from its assets.

This is most apparent at Veyer, which was previously focused 100% on serving ODP’s retail and B2B businesses. In contrast to this is Varis, essentially a start-up operation, but one which aims to tap into existing customer relationships, especially at BSD.

The ODP story over the next three years will not be one of surging top-line growth FOLLOW THE MONEY Hanging onto the store network is without a doubt linked to the cash-generation capabilities of Office Depot. Indeed, CEO Gerry Smith described retail as the “cash engine” of the group. It is a key component of shareholder-friendly initiatives including a new $1 billion share buyback programme which was also announced on 2 November.

The ODP story over the next three years will not be one of surging top-line growth. From forecast FY2022 sales of $8.45-$8.6 billion, the target by the end of 2025 is $8.5-$8.7 billion, a year-on-year increase of about 1%.

Instead, the narrative is about creating shareholder value following an “algorithm” based on a low-cost business model, EBITDA and cash flow conversion, and disciplined

More information on the Office Depot, BSD and Veyer BUs can be found on opi.net

FOCUS The ODP Corporation

and defined capital allocation. It also means ODP is not planning any major M&A activity over these few years.

Ruling out any strategic moves, Smith did suggest, however, that BSD would pursue its Federation programme of acquiring successful independent dealers in geographies where it is underserved.

In terms of what the company’s plan will mean for other stakeholders in the US business supplies community, below are a few observations: • A greater proportion of private label products will probably put more pressure on brand manufacturers.

• Traditional OP suppliers, in line with secular trends, will be further squeezed as ODP looks to grow in adjacent categories.

• Calling out that no significant M&A activity will be carried out over the next three years implies – unless something changes – there is little likelihood of a combination with Staples’ retail or B2B divisions. This raises questions about Sycamore’s exit strategy for its Staples assets.

• The US dealer channel could risk losing some of its successful independents to BSD as part of its renewed Federation emphasis.

Gerry Smith

MESSAGE RECEIVED With the investor day basically aiming to ‘sell’ the new ODP model to the investment community, there were a lot of soundbites throughout the session. However, it appears

the messages were well received: as of 21 November, ODP’s share price had risen by around 15% since the conference (although, in part at least, this is due to the share buyback programme).

While Varis and Veyer are new, there was no ‘wow’ announcement regarding BSD or Office Depot: keep focusing on the low-cost model, expand margins, generate cash flow, grow in adjacencies – almost like a ‘holding pattern’ strategy.

Looking at 2023 and beyond, one of ODP’s goals is to explore BU-level capital structures – could that result in the constituent parts eventually being broken up? It seems a distinct possibility.

THE ODP CORPORATION – AT A GLANCE At a corporate level, ODP is headed by Gerry Smith, who has been CEO since 2017. Key execs working alongside him – and who also took part in the investor day – include CFO Anthony Scaglione and Chief Human Resources Officer Zoë Maloney.

Corporate oversees four business units that each have their own P&L. These are: ODP Business Solutions: A B2B business products reseller, including Grand & Toy in Canada and the acquired Federation dealers in the US. Current annual sales are around $4 billion; it has been led since earlier this year by David Centrella.

Office Depot: The 1,000-strong store network in the US and officedepot.com. Annual revenue is approximately $4.5 billion and its President is Kevin Moffitt.

Veyer: ODP’s sourcing and distribution operations, where the goal is to become a fully-fledged third-party logistics provider. Current annual sales (to external customers) are about $25 million. Veyer’s President is John Gannfors, formerly Office Depot’ Chief Merchant and Supply Chain Officer.

December 2022

Varis: ODP’s new digital B2B marketplace and procurement solution, headed by former Amazon Business leader Prentis Wilson. Still in a start-up stage, revenue this year is expected to be about $8 million.

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The ODP Corporation FOCUS

FOCUS on VARIS

O

DP has assembled a team of seasoned Amazon veterans at Varis, led by Prentis Wilson (pictured above). The investor conference was seen as the occasion when there would be something of a ‘reveal’ of Varis’ go-to-market strategy and its financial targets.

As expected, Varis is a B2B digital procurement platform being pitched to both buyers and suppliers (resellers) in what Forrester has estimated is an $8 trillion addressable market in the US alone.

The question is then: is it just another Amazon Business? While there are similarities in terms of some of the reporting and compliance functionalities it offers, there are some key differences:

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• Varis is a platform, not a seller in its own right; it does not hold inventory nor ship products directly.

• It will work with selected suppliers, and not run “a race to the bottom with dubious internet sellers”. In a marketing document, Varis wrote: “You won’t be competing solely on price in a marketplace saturated with vendors offering the same products.”

• It is promising that its resellers will “own the customer relationship and pricing”, two subjects which have often rankled with third-party sellers on Amazon.

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TWO-PRONGED APPROACH During the investor conference, Wilson did not mention Amazon by name, but referred to a competing “subscription-based model that [costs] hundreds of thousands of dollars a year”, as opposed to Varis’ gross merchandise value (GMV) fee structure he views as “a superior business model”.

In fact, Varis appears to have two business models, one subscription and the other based on GMV revenue share. The former is a private B2B marketplace for enterprise-level customers – essentially the purchase-to-pay

solution Varis inherited from its acquisition of BuyerQuest in 2021.

However, where Wilson sees the real potential for Varis to grow is in the second, GMV model, which is aimed at smaller-sized customers. These are the kinds of businesses being targeted through Varis’ integration with Microsoft’s Dynamics 365 Business Central customer base, for instance.

“The GMV-based model really helps us reduce the hurdle rate for these [types of] customers, enabling them to adopt our platform quicker,” Wilson stated.

A key partner going forward is sister unit BSD and significant cross-selling opportunities have been identified in that regard. Wilson pointed to the “thousands and thousands” of BSD customers that could benefit from the Varis platform, while he also gave an example of how Varis had helped BSD increase its own sales.

If you follow this logic, then Varis could well be available to ODP’s Federation dealers, whose customer sweet spot is with the mid-market and SMBs. Varis might be seen as a point of differentiation for them, as businesses look to make efficiency gains in their procurement processes.

To help Varis achieve its growth ambitions, it is seeking third-party funding How Varis vets and selects its suppliers was not specified, but its website gives the criteria which must be met, including: providing a product or service that fills a gap in its current offerings; demonstrating a commitment to working with US customers in the segments and verticals it supports; and meeting criteria for product availability, delivery, returns and customer expectations.

While Varis’ revenue is modest today, Wilson said it has already onboarded enough new clients to meet its 2023 target. There has been 100% client retention since the purchase of BuyerQuest, he confirmed, with a 64% increase in spend under management.

The goal is to generate $120 million in sales by 2025 and to be cash flow positive by this time. To help Varis achieve its growth ambitions, it is seeking third-party funding. On this note, it was announced that investment bank Perella Weinberg has been hired to identify “strategic investors”. Wilson said this would externally validate the Varis value proposition and provide a valuation reference point for ODP shareholders.

FEATURE

GREEN

Thinking 2022

sustainable packaging, ingredients and sourcing, as well as relevant certifications.

Another handy guide is creative consultancy agency Radley Yeldar’s Words that Work report which discusses ‘stock sustainability’ (see Research, OPI November/ December 2021, page 46).

Now, the World Federation of Advertisers (WFA) has released the Global Guidance on Environmental Claims to help ensure communications are credible for consumers and regulators. According to WFA, the goal is to provide a “clear set of rules” to follow when communicating any actions a company takes to drive more sustainable outcomes.

Get it RIGHT

T

he topic of greenwashing continues to rear its ugly head. Every day, companies seem to be falling foul of it and are being publicly denounced for doing so.

Publicising environmental, social and governance performance is a tricky business.

It can lead to misleading statements – intentional or not – and is something authorities and governments are cracking down on globally.

In the UK, the Competition and Markets Authority has kicked off a campaign investigating company’s environmental declarations against its Green Claims Code.

Meanwhile, the Australian Competition and Consumer Commission (ACCC) has launched an internet sweep to identify false marketing.

STICKING TO PRINCIPLES The guidance identifies these six principles marketers should adhere to in order to ensure they are perceived as trustworthy and to avoid their brands being accused of greenwashing.

There are growing concerns that some businesses are falsely promoting their environmental or green credentials

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ACCC Deputy Chair Delia Rickard noted: “As consumers become increasingly interested in purchasing sustainable products, there are growing concerns that some businesses are falsely promoting their environmental or green credentials.

“This sweep forms a core part of our work in actively monitoring for ‘greenwashing’ in the market and will help inform what steps businesses can take to improve the integrity of their environmental claims.”

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MEAN WHAT YOU SAY Part of the greenwashing problem stems from a tendency in the marketing and advertising world towards the warm and fuzzy. Words and phrases such as ‘planet-positive’, ‘climate-friendly’, ‘clean’ and ‘mindfully made’ don’t really mean anything.

US-based start-up and online grocery marketplace Hive Brands recently released a useful ‘green dictionary’. It not only details these red-flag words along with others, but provides clarity on common terms used in

1. Claims should not be likely to mislead, and the basis for them must be clear.

2. Have robust evidence for all claims which could be regarded as objective and be capable of substantiation.

3. Do not omit material information in marketing communications. Where time or space is limited, use alternative means to make qualifying information readily accessible to the audience.

4. Marketers must base general environmental claims on the full life cycle of their product or business unless stated otherwise, and need to make clear the limits of the life cycle.

5. The basis for product comparisons should be clear and allow the audience to make an informed decision.

6. All information relating to the environmental impact of advertised products required by law, regulators or codes to which they are signatories must be included.

WFA CEO Stephan Loerke says: “Big reductions in CO2 emissions have occurred on the back of technology and innovation; the next big advance needs to be driven by behavioural change. This guidance is an essential first step to creating an environment where marketers and consumers can feel more confident about companies’ sustainability credentials.”

Read the full Global Guidance on Environmental Claims at https://wfanet.org/knowledge/sustainability-claims/about

FEATURE

RECYCLE or REUSE?

A combination of greater public awareness about single-use plastics and legislation could give fresh impetus to the ink and toner remanufacturing industry – by Andy Braithwaite

W

hen a leading OEM publishes a life cycle analysis (LCA) study for its reused cartridges, is this a sign things might be changing in the world of print consumables?

At the end of last year, HP Inc compared the environmental footprint of its recently developed EvoCycle 26X product – described as its “most sustainable cartridge” – with new build compatible (NBC) items for the same SKU. Unsurprisingly, the HP-commissioned report found that, in all assessed categories, EvoCycle showed a lower environmental impact than the NBC alternative. HP’s initiative – limited to items sold in France – is nonetheless an exception for the OEM, which recycles the vast majority of the cartridges it collects rather than reuse the empty shells.

One industry source – wishing to remain anonymous – is sceptical. “OEMs are mainly promoting recycling and collection, but not reuse. For decades, they have said that reman cartridges are bad and destroy printers; they can’t just now say reman is good.”

However, for Keli Posch, Clover Imaging’s VP of Marketing and Sustainability, HP is making a move in the right direction. “The study results were positive and hopefully represent HP taking a step forward in embracing a circular economy model which prioritises remanufacturing over recycling whenever possible,” she states.

CHANGING CONSENSUS Clover itself published a third-party LCA in 2022, comparing one of its remanufactured cartridges with the OEM equivalent. “The result aligns with the rising consensus in the environmental community that recycling alone is not going to solve the global waste challenges we are facing,” says Posch.

“In fact, Greenpeace recently came out with a study saying recycling is ‘a dead-end street’.

The way we like to explain it to end users is that recycling is good, but reuse is better. We have seen the [...] recycling centres and they are impressive; but you also see the massive energy expenditure required to break down

GREEN

www.opi.net

Thinking 2022

32

More details on the proposed EU legislation referred to in this feature and further reaction

by ETIRA can be found on opi.net

December 2022

LEGISLATION ON THE WAY In Europe, an important development occurred earlier this year when the European Commission rejected a voluntary agreement for imaging equipment and supplies in favour of implementing regulation – which has to be in place by the end of 2024. It is likely the concept of reusing will be embedded into this legislation. This could change market dynamics, particularly in the public sector.

Javier Martinez, President of the European Toner and Inkjet Remanufacturers Association (ETIRA) believes the new EU rules will be “very ambitious in terms of circularity” and there will be “a clear mandate” to give access to empty cartridges for reuse under “fair conditions”.

It is perhaps with an eye on the forthcoming legislation and growing demand for remans in Europe that China-based print giant Ninestar has been pushing its own remanufacturing operations. In October, the company held a virtual tour of its facility in Zhuhai as it looks to enhance its environmental reputation and remind the market that it has been a remanufacturer for the past 22 years.

Ninestar points to the “many sustainable workplace practices” it has developed in its operations. These include: the use of solar

CHINESE MISREPRESENTATION? David Gibbons, Publisher of RT Imaging World, believes China-based suppliers such as Ninestar have been maligned in terms of sustainability. “It is simply not true that they do not care about remanufacturing,” he argues.

“China is a pioneer when it comes to promoting a greener, more environmentally safe world.”

Since 2018, via its ‘National Sword’ policy, China has banned the import of e-waste, which includes empty ink and toner cartridges.

However, some Chinese companies, mostly the larger ones, have permits to bring used printer cartridges into the country.

“This is monitored very closely,” says Gibbons. “Empties coming from the EU, for example, must be returned to the EU after they have been remanufactured. Hundreds of thousands of empties enter China every month. Some are unable to be remanufactured and these companies have to prove that the plastics and metals are stripped out and recycled – and do not end up in landfill.”

Although Ninestar declined to specify what percentage of the products it ships are remanufactured, in 2021, the number of used toner and inkjet cartridges it collected globally amounted to around 20 million and 18 million, respectively. The company says it partners with local recyclers to collect empties or, in some cases, uses pre-paid envelopes to encourage end users to return them.

What happens to used cartridges in the future remains uncertain. ETIRA is “strongly asking” that empties are not shipped out of Europe and is hoping to see OEMs and remanufacturers working together to avoid single-use consumables as well as help European circular economy goals “reach their full potential”.

It is a point echoed by Clover’s Posch.

“In an ideal scenario, OEMs would divert their collections of newer, high-demand cartridges to remanufacturers for reuse, while accepting remanufacturers’ excess collections of lower-demand cartridges for grinding, palletisation and recycling,” she says.

“Properly managed, such an arrangement could be optimised to maximise the joint environmental benefits of remanufacturing and use of recycled plastic content.”

Green Consumables

Recycling is good, but reuse is better

power; investments in wastewater treatment and air-quality improvements; an efficient, automated production line; and recycling of all components which cannot be reused.

FEATURE

these cartridges when they could be reused multiple times before being recycled.”

Posch adds that Clover is experiencing “an unprecedented amount of interest in remanufactured products” in the US as an alternative to single-use plastic cartridges. She puts this down to a number of reasons, such as: the federal government considering a ban on single-use plastics; the prioritisation of remanufactured products in bid documents; and the growing influence of sustainability departments on purchasing decisions in the private sector.

“In addition, there are the impending environmental reporting requirements from the SEC, as well as private equity and investor pressures,” she notes.

“For us, it’s all about driving awareness with end users and educating them on the value proposition of remanufactured printer cartridges. This includes letting them know their printer warranty cannot be voided if they use our products and that, by switching from OEM to remanufactured cartridges, they can cut their carbon footprint in half.”

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FEATURE

Recent UN action is regarded as a seminal moment in the battle to prevent plastic waste polluting the land and seas – by David Holes

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he world is producing twice as much plastic waste as it was 20 years ago, with the bulk ending up in landfill, incinerated or leaking into the natural world, according to a recent report from the Organisation for Economic Co-operation and Development (OECD).

Shockingly, only 9% is currently successfully being recycled, with 22% evading waste management systems entirely and ending up in uncontrolled dumps, burned in open pits or simply discarded as litter. To date, 75% of all plastic ever produced has become rubbish, and volumes are rising rapidly.

In 2019, 6.1 million metric tonnes of plastic leaked into aquatic ecosystems, with 1.7 million of those flowing into the oceans. It’s estimated that there are currently 30 million tonnes in the seas, with a further 109 million having built up in rivers. This accumulation in waterways ensures seepage into oceans will continue for decades to come, even if mismanaged waste is halted today.

In the marine environment, it threatens around 700 species, with plastic presently found in the guts of over 90% of the world’s sea birds, in the stomachs of more than half of all sea turtles and in the digestive tracts of many whales. By 2050, there will be more plastics relative to fish in the oceans if action to tackle the crisis is not taken.

Plastic is not just harmful to animals. It breaks down into microparticles, enters the human food chain and potentially leads to multiple health issues across global populations.

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Thinking 2022

A PACKAGING PROBLEM Most plastics in use today are virgin – or primary – having derived from crude oil or gas.

And while progress has been made in terms of reducing the amount produced through the use of recycled material, the total percentage being reused is still woefully low. There’s currently a general acceptance that we can’t just recycle or dispose our way out of this kind of pollution – demand for the raw product must be drastically reduced.

As the OECD has emphasised, the main contributors to the problem are not applications in which plastics remain in use for many years, such as in furniture and building materials. Instead, two-thirds of plastic waste is accounted for by products used for fewer

9%

Percentage of all plastic currently successfully recycled

FEATURE Plastic Pollution

than five years. Key culprits include textiles, consumer products and packaging. The latter represents the largest market for plastics, with demand from this sector predicted to double over the next two decades.

In addition, it typically has a very short ‘in-use’ lifetime – not even six months. Yet less than 2% of the plastics used in packaging is currently recyclable, with the rest regarded as ‘single-use’ and particularly problematic.

Consequently, packaging is the dominant generator of plastic waste, responsible for 46% of the global total.

The mandate agreed by UN member states opens the door to a legally binding treaty that deals with the root causes of plastic pollution, not just the symptoms SIGNIFICANT INTERNATIONAL ACTION The enormous scale of the issue has prompted action at the highest levels. In March of this year, attendees from 175 nations at the UN Environment Assembly (UNEA) unanimously voted for a resolution to end plastic pollution.

Until now, a number of systemic barriers have hindered progress:

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• Voluntary initiatives have laid important foundations, but lack sufficient support and scale to drive real change.

• The current regulatory landscape is not particularly ‘joined up’, often failing to cover the full plastic value chain or tackle the fundamental problems.

• The lack of harmonised data at global, national and business levels limits the ability to monitor progress and evaluate the effectiveness of current measures.

• Gaps exist in critical markets which lack the capability, basic infrastructure and systems to keep plastic in circulation after initial use.

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The UN Environment Programme’s (UNEP) Director Inger Anderson has stated the resolution could be the most important multilateral pact for the world since the ratification of the Paris Agreement in 2015. Like the Paris Agreement, while the new treaty will be legally binding, it will still be up to individual countries to introduce their own laws to meet any set targets. The treaty negotiation process is expected to conclude at the end of 2024.

There had been concern from environmental groups that assembly attendees might opt for an agreement which didn’t require nations

to act on the production side of the process.

Thankfully, this did not happen, with UNEA stating all countries will need to act on every part of the plastics life cycle, including design, production, manufacturing, logistics, use, re-use and end-of-life management. There is also a desire to ensure all products and materials should be “re-used, remanufactured or recycled and therefore retained in the economy for as long as possible”.

BUSINESS PLAYS ITS PART The case for a UN treaty is clear as it would benefit companies as well as the environment, establishing a level playing field across the plastic value chain and accelerating industry transformation. This would be achieved by: • Helping to reduce operational complexity and compliance risk across markets.

• Enabling businesses to plan investments, while managing the costs.

• Simplifying data reporting, bringing greater transparency and better methods of measuring progress.

• Coordinating actions across the plastic value chain, improving the prospects for meeting ambitious corporate commitments.

The reputational harm to brands that fail to act is equally obvious, particularly with an increasing amount of regulation now coming into force.

In a notable show of solidarity, 80 brands, financial institutions and NGOs have recently announced a common vision to support the treaty. The newly launched ‘Business Coalition for a Global Plastics Treaty’ is convened by the Ellen MacArthur Foundation and the World Wide Fund for Nature (WWF).

The Foundation already operates the Plastics Pact Network – a globally aligned response to the plastic problem, enabling vital knowledge sharing and coordinated action. It integrates tailored national and regional initiatives,

bringing together key stakeholders to eliminate unnecessary and problematic packaging through redesign and innovation.

Specifically, the Network drives a move away from single-use, ensuring all plastic packaging is reusable, recyclable or compostable.

Ellen MacArthur herself sees the new treaty as a key moment in the effort to deal with the problem of plastic on a global scale. She says: “The mandate agreed by UN member states opens the door to a legally binding treaty that deals with the root causes of plastic pollution, not just the symptoms. Critically, this includes measures considering the entire life cycle of

Plastic Pollution

2%

FEATURE

Percentage of plastics used in packaging that is currently recyclable

plastics, enabling opportunities to design out waste before it is created, as part of a thriving circular economy.”

The Business Coalition regards the upcoming UN deal as the key policy mechanism to accelerating much-needed progress in the reduction of plastic production and the prevention and remediation of micro- and macro-plastic leakage into the environment.

It will develop ambitious policy recommendations, engage with the treaty negotiators, and bolster confidence in the business community on the benefits of an effective agreement which sets common goals, rules and obligations to be implemented by national jurisdictions. This means creating equal opportunity and preventing a patchwork of disconnected solutions.

PLASTIC MANAGEMENT All the criticism and the environmental impact aside, plastic is a material with exceptional properties and can even be preferable when taking into account a product’s life cycle.

However, its very durability presents a problem when it leaks from the value chain and becomes pollution persisting in nature for many years.

Hopefully, strong UN action backed by committed business coalitions can reduce our reliance on plastic and prevent it from contributing to an environmental catastrophe.

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ADVERTORIAL

a promise FULFILLING

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arlier this year, Sylvamo announced the launch of HP Earth First in Europe, further committing to its promise to produce paper in the most responsible and sustainable ways and a vision to be the employer, supplier and investment of choice.

HP Earth First has the same attributes as all HP Papers and is suitable for a range of applications and day-to-day office needs. In terms of the environmental credentials of HP Papers, Sylvamo’s processes are underpinned by several core pillars: • Mills are fully integrated: Sylvamo directly manages the pulp and paper-making process from forest to finished product, guaranteeing traceability and supporting the circular economy. It also allows waste generated in manufacturing to be used for other on-site processes.

• Sourcing responsibly and sustainably: Wood used in producing HP Papers comes from sustainably managed, local and controlled certified sources. All HP Papers are either FSC or PEFC as well as EU Ecolabel certified.

• Short circuit: Sylvamo ensures both sourcing and production are as local as possible, as the proximity of the mills to the forests limits the impact of transportation on the environment.

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HP PAPERS IN A NUTSHELL

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The HP Papers range consists of six different products, all of which are designed to meet a specific type of end-user requirement. It means the portfolio has a product to meet nearly all consumer needs in the marketplace, with the reassurance you would expect from one of the world’s leading brands.

Sold in over 80 countries, HP Papers – when combined with HP ink and toner as well as HP printers – are optimised to work together for better print quality, improved runnability, less waste and lower total cost.

“We manufacture HP Papers in the most sustainable and responsible ways, using renewable and recyclable raw materials from nature to ensure healthy and productive forest eco-systems,” says Gerald Demets, Sylvamo’s Commercial Director, Uncoated Wood-free Paper and Pulp, Europe.

With HP Earth First, Sylvamo has added many additional features. One of these is a paper wrapper, allowing for it to be recycled with paper. Secondly, and importantly, HP Earth First is climate neutral.

“Sustainability is one of our core values and we’re committed to continuous improvement.

HP Earth First is climate neutral because we want to go beyond conventional sustainable business practices and neutralise our climate footprint entirely,” Demets adds.

OFFSETTING THE UNAVOIDABLE Sylvamo works with Climate Partner, a specialist in corporate climate action, to guarantee all unavoidable emissions are offset throughout the HP Earth First life cycle.

Climate Partner supports a range of certified carbon offset projects.

Gerald Demets

SPOTLIGHT

SDGs – a BLUEPRINT

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Thinking 2022

for the FUTURE You may have heard of the United Nations Sustainable Development Goals, but wondered what they are and why you should care – by Michelle Sturman

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ccording to the UN, sustainable development is defined as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs”. It also calls for “concerted efforts towards building an inclusive, sustainable and resilient future for people and planet”. To achieve this, three core elements are required: economic growth, social inclusion and environmental protection.

In 2015, all 193 UN member states adopted the 2030 Agenda for Sustainable Development – essentially, it’s a master plan for “peace and prosperity for people and the planet, now and into the future”.

At the core of the Agenda are 17 Sustainable Development Goals (SDGs – pictured above), with all stakeholders – governments, civil society, the private sector and others – expected to commit and contribute. While the SDGs are not legally

1.9

billion Number of people globally that lack basic hand hygiene facilities Source: The 2022 Sustainable Development Goals Report

binding, their 169 targets are monitored and reviewed using a set of global indicators, and published in an annual report.

CLIMATE CHANGE LINK The SDGs and climate change are intricately linked – sustainable development investment will help address climate change, and action on climate change will drive sustainable development. Adopting circular economy practices – preventing waste from being generated by creating products and materials that are designed to be reused, repaired and remanufactured in the first instance – naturally lends itself to more easily attaining several of the SDGs. The most obvious one – and especially relevant for the business supplies industry – is Goal 12: responsible consumption and production. This, in turn, can accelerate progress in many others, such as Goal 3: good health and well-being; Goal 14: life below water; Goal 15: life on land; and Goal 13: climate action.

For a more in-depth look at the SDGs, read Transforming Our World: the 2030 Agenda for Sustainable Development which details the full plan of action. Still, despite their launch

NO TIME LIKE THE PRESENT In September 2019, UN Secretary-General António Guterres called for a ‘Decade of Action’ to deliver the SDGs on three levels: global action, local action and people action.

However, while noting the unmistakable stakeholder commitment to the 2030 Agenda, he said the indisputable fact is that we are “far from where we need to be. We are off track”.

The UN has subsequently talked about COVID-19 and its impact on all 17 SDGs, stating the goals provide a critical framework for recovery. Moreover, as the pandemic continues to “imperil” their progress, achieving them is “all the more urgent and necessary”.

In September 2020, a short film was released, marking the 75th anniversary of the UN and the fifth anniversary of the SDGs. Entitled Nations United – Urgent Solutions for Urgent Times, the film sets out the action needed to build a better world. If you haven’t watched it, it is highly recommended as it explains how the SDGs can be used as interventions to tackle our biggest issues – poverty and hunger, inequality and injustice, and climate change.

The aspirations set out in the 2030 Agenda for Sustainable Development are in jeopardy

22.8%

Global e-waste collection rate

Source: The 2022 Sustainable Development Goals Report

THE BUSINESS AGENDA The UN Global Compact is a valuable resource that aims to engage businesses with the SDGs, with a “call to companies to align strategies and operations with universal principles on human rights, labour, environment and anti-corruption”.

Encouragingly, numerous companies in our sector are signed up to the Global Compact network, including resellers Commercial Group (UK), Dacris (Romania) and Lyreco (Europe).

There’s no shortage of information to help companies understand and start working towards the SDGs. An excellent section on the official website involves key topics such as chemicals and waste, disaster risk, finance, energy, sustainable transport, technology and many more. Each subject is linked to relevant SDGs, including publications, events, documents, statements and milestones.

Another valuable information source is the World Business Council for Sustainable Development (WBCSD), which paints a gloomy picture: “Businesses cannot thrive in societies that fail, and long-term success hinges on the SDGs being realised.”

The WBCSD also points out the potential operational, regulatory and reputational risks of not aligning with them.

The WBCSD’s SDG Essentials for Business section offers a simple introduction to the goals – suitable for those just starting to explore them. Meanwhile, the SDG Business Hub provides the latest news, insights, developments and trends. It additionally includes a CEO Guide to the SDGs, sector roadmaps, country-specific insight and business perspectives and approaches.

December 2022

FINDING SOLUTIONS Many businesses may find it hard to see why the SDGs are important, or even applicable, as the goals themselves are not ‘business actions’. But for any company that has perhaps not yet got to grips with tackling environmental, social and governance issues, they represent a starting point and useful roadmap.

As several of the goals are interconnected, even undertaking one can have a ripple effect on others. The key is to prioritise, align them with business plans and understand where they can have the greatest impact.

While firms grapple with current crises such as energy price hikes, soaring inflation, supply chain constraints and so on in the short term, the SDGs form part of long-term strategies. It’s action on the ground that counts – and every small step taken adds to the global payoff.

But time is of the essence. The Sustainable Development Goals Report 2022 makes for sobering reading, but should also be seen as a push to radically ramp up the action.

The report details how the triple whammy of the pandemic, the war in Ukraine and climate change – the latter of which is a ‘crisis multiplier’ – have hampered progress towards attaining the goals; instead of moving forward, we have gone backwards.

In the opening sentence of the foreword, Guterres writes: “As the world faces cascading and interlinked global crises and conflicts, the aspirations set out in the 2030 Agenda for Sustainable Development are in jeopardy.”

He added: “We need an urgent rescue effort for the SDGs [...] and plan the urgent steps needed to achieve the 2030 Agenda.”

SPOTLIGHT UN Sustainable Development Goals

in 2015, many businesses are seemingly unaware of their existence.

Worryingly, recent research undertaken in the UK by YouGov and commissioned by business improvement and standards organisation BSI, revealed only 18% of SMEs were aware of the goals, despite making up 99% of all UK companies. Just over half (54%) of larger firms (250+ staff) were also oblivious.

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ADVERTORIAL

With every

LITTLE STEP…

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hether it’s extending the lifespan of products or repurposing their reusable components, it all adds up in terms of becoming more sustainable. ‘Too good to throw away’ is the mantra of German writing instruments vendor edding. Head of CR Coordination Patricia Siebel explains.

OPI: Plastic is a huge environmental culprit.

But for a writing instruments manufacturer like edding, it’s difficult to address the issue as plastic is such a core part of the end product. How do you deal with this?

Patricia Siebel: Looking at processes, we always strive to replace virgin with recycled materials. We, for example, are already using post-consumer plastics and renewable resources for the production of our EcoLine which has been climate neutral since 2009.

And we are always trying to prolong the lifespan of our products. We offer refill units for around 70% of all edding markers. Refilling prevents waste and helps conserve raw materials such as plastic and aluminium.

OPI: Is the return box specifically for edding writing instruments?

PS: No, it’s not. This project is about saving scarce resources and virgin material, so pens and markers from other vendors can also be added to the box.

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We are always looking to prolong the lifespan of our products

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OPI: What about the product’s ‘afterlife’ – what are the options for single-use or end-of-life refillable pens?

PS: A high percentage of the components can be recycled and used again to make high-quality goods such as those in the edding EcoLine. This is where our return boxes for empty and worn out markers and writing instruments come in.

These boxes can be ordered directly from edding – both the box and the return service are free of charge for users. Returned, full boxes are sorted in a workshop and then forwarded to our recycling partners that deal with the different materials. In total, we have about 73% recycled plastic, 4% aluminium and 8% other metal. Typically, about 15% of non-recyclable waste remains, which is sent away for thermal treatment.

Patricia Siebel, Head of CR Coordination, edding

OPI: What uptake have you seen for the return box?

PS: We initially introduced it in Germany back in 2013. As such, the largest numbers of returns certainly come from our own backyard.

The European rollout started about a year ago.

We can’t as yet report specific results from other countries as the process of filling the boxes, returning and then dealing with them takes a while.

OPI: Have you encountered any specific challenges along the way?

PS: One major challenge has been to organise the return transport of the boxes within Europe. Before we decided to have them sent back to Germany from other nations, we looked into the issue of ‘waste tourism’, conscious that the recycling benefits must outweigh any increased emissions resulting from longer transportation journeys.

We found, thankfully, that the balance is still very much tipped in favour of the positives.

The returns so far do not cover the quantities needed for our complete EcoLine production, but we’re seeing momentum building and are confident quantities will grow as sustainability moves further up the agenda and the concept gains greater acceptance. Even small steps can lead to the ultimate goal of becoming completely carbon neutral by 2025.

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CATEGORY UPDATE

Thinking 2022

Green INVESTMENTS The scope of eco-friendly initiatives that businesses are adopting is broad. OPI takes a look at what our industry’s vendors are doing – by David Holes

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hen OPI asked a selection of manufacturers across the business supplies spectrum for details of their sustainability programmes and projects, the answers were manifold. But, while diverse, they could be grouped into three broad areas.

Here’s an overview:

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1. Conserve resources, recycle, reuse “Sustainability is a journey, not a destination,” says Guillaume Desfourneaux, Director of Brand and Sustainable Development at writing instruments manufacturer BIC. “Our products have always been designed to use the minimum amount of raw materials, but sustainability has increasingly become the norm as we strengthen our efforts to reduce our impact on the planet.

“We’ve committed to many different programmes, such as halving the amount of virgin petroleum-based plastic used and ensuring that all packaging will be 100% recyclable, recycled or compostable by 2025. To increase BIC’s contribution to the circular economy, we’ve launched a

proprietary data-driven design tool into our product engineering phase, known as EMA (Environmentally and Socially Measurable Advantage). Additionally, we’ve announced the world’s first lighter dissembling machine at our factory in Redon, France.

“We still have a long way to go and will continue to find innovative solutions that lessen our environmental impact.”

Fellow writing instruments vendor edding sees the preservation of resources as one way in which businesses can make a significant contribution to sustainability. The company says 70% of its products – including its range of markers and highlighters – are now refillable. This extends a product’s lifetime, prevents waste and conserves raw materials such as plastic and aluminium (see also Advertorial, page 42).

Business Developer for Office & Industry Supplies, Sabine Brooks, explains how this is done: “For capillary systems, the marker is simply placed tip down in the refill bottle for an hour [see picture, right]. Alternatively, where the marker’s mouthpiece can be unscrewed, ink drops are dispensed into the barrel using a

THE IMPORTANCE OF CERTIFICATION The vendor regards respected third-party certification as vitally important as it offers customers additional reassurance that they are making a responsible purchase.

Last year, over 350 of its products from the PURELL range achieved Cradle to Cradle certification, a standard which acknowledges the safe, circular and responsible use of materials and products.

GOJO has also been recognised by sustainability business ratings provider EcoVadis, acknowledging it as a growing leader in sustainability and placing it in the top 25% of businesses evaluated by the organisation worldwide.

Chris Wakefield, GOJO’s Managing Director for the UK & Ireland, concedes that, in times of financial hardship, green goals can be impacted as customers make the trade-off between affordability and premium-priced eco-friendly products. “However, it’s possible to strike a balance on a budget”, he says.

“For instance, PURELL Healthy Soap was developed to clean effectively and preserve precious resources. It rinses quickly, saving an average of 22 litres of water per refill. This helps organisations meet both their green goals and lower their water bills.”

RECYCLING OPTIONS Cutting down the amount of waste produced in offices was a major goal for Tork manufacturer Essity when it introduced PaperCircle. It’s a recycling service for paper hand towels which helps businesses reduce their environmental footprint by 40% compared with conventional paper towel waste-handling options. The scheme is now operational in 14 countries across Europe.

Sustainability is a journey, not a destination Essity aims to reach net zero by 2050 and is looking at using hydrogen, geothermal steam and sustainable biomass as alternatives to fossil fuels. “We’ve already made significant progress with a biomass-powered plant in Lilla Edet, Sweden,” reports Sustainability Communications Director Reneé Remijnse.

“Additionally, in Kostheim, Germany, we have invested in a paper machine that uses green hydrogen to power it.”

December 2022

REDUCING WASTE In its latest Environmental, Social and Governance (ESG) report, China-based print solutions provider Ninestar gives an update on all its green initiatives, with a focus on eco-friendly and low-carbon printing.

As Chairman Jackson Wang asserts: “We give top priority to ESG advances and strive to pave the way for green and low-carbon sustainable development.”

Its SmartMate brand, for instance, includes extended-yield toner cartridges which prolong service life and reduce plastic waste. Ninestar has also introduced a zero plastic packaging policy, with 96% now made from recycled and biodegradable products.

Waste – or the reduction of it – is core to 3M’s ambitious sustainability targets. By 2025, the US-based global manufacturing giant pledges to cut down production remains by 10% and achieve zero landfill status at 30% of its sites. By that date, it will have reduced its dependence on virgin petroleum-based plastics by the equivalent of £125 million ($140 million).

Five years on, by 2030, it aims to decrease its global water usage by 25% and cut greenhouse gas emissions by 50%, with further reductions of 80% another ten years later by 2040.

3M is committed to achieving net carbon neutrality by 2050, with 100% of its electricity coming from renewable resources.

CATEGORY UPDATE Vendor Sustainability

pipette and then it’s ready to use again. Each bottle holds enough for 15 refills. The writing tip can also often be replaced when it wears out.”

GOJO Industries-Europe, meanwhile, has issued a commitment to use fully recyclable materials in its quest to supply hygiene products that are good for both people and the planet. From 2023, its collapsible polyethylene terephthalate refills will be made from 100% recycled material, and they themselves will be fully recyclable once used up. This reduces the company’s selection of virgin plastics and helps it contribute to a circular economy.

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Vendor Sustainability CATEGORY UPDATE

Trodat has been awarded the Austrian Ecolabel for over 90 of its bestselling products.

It continues to optimise its entire manufacturing process to support the circular economy and waste avoidance.

Surface protection mat vendor Floortex, as of this year, has been powering its UK production facility with 50% renewable energy. In terms of product credentials, its Ecotex range contains up to 50% of recovered material and all its chair mats are 100% recyclable, with packaging including up to 90% of reused content. Products are delivered in rolled, folded or flat formats to maximise transport efficiencies and reduce carbon footprint.

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2. Green energy and CO2 reduction Like 3M, many vendors are seeking to drive down their greenhouse gas emissions and convert to sustainable energy supplies.

Stamping manufacturer COLOP has taken a big sustainability step forward this year, with 90% of its products now CO2 neutral. The CO2 emissions of products – manufactured at one of its two production sites in Austria and the Czech Republic – which have already been significantly reduced by comprehensive measures but are unavoidable, are being compensated by investments in climate protection projects since the beginning of this year. Continuous further development and the associated further reduction of CO2 emissions is COLOP’s goal.

Fellow Austrian stamp vendor Trodat has also made significant progress in reducing its CO2 output. Its Original Printy 4.0 product is now climate neutral, with a 49% reduction in emissions having been achieved through a redesigned production process and the rest accounted for with carbon offsetting programmes recognised by the World Wide Fund for Nature.

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CREATING EFFICIENCIES Improved energy efficiency and reduced consumption are long-term projects at its facilities. The use of heating oil has been completely discontinued and plans are underway to reduce gas usage and convert to renewable sources. Plus, the company is changing its fleet of diesel vehicles to electric power and is already seeing energy savings of around 66% thanks to increased efficiencies associated with the new technology.

3. Paper and fibre In the hygiene sector, German manufacturer WEPA – through its Satino brand (see picture, left) – is dedicated to presenting washrooms as a company’s showpiece – while protecting the planet at the same time.

The firm’s UK & Ireland Sales Manager Alasdair Sharp comments: “Recycled fibres have contributed to our source streams since the 1950s, with cardboard packaging, office and printing waste making up the majority in 2022. In fact, 36% of the raw materials used are now recycled and we are committed to growing those figures to 60% by 2030 and then 100% by 2050.”

Elaborating further, he says: “We have been investing in alternative fibre research since 2013 and this had led to the company embracing miscanthus grass – a natural, renewable raw material rich in cellulose that’s one of the most sustainable fibres in the world. The plants are grown locally without fertilisation, irrigation or the use of pesticides.

They grow to their full size – up to four metres – every year and have an impressive 20-year life span. We’re proud to be the first manufacturer to utilise it in hygiene paper production.”

STRIVING FOR BETTER SOLUTIONS Tom Crowley, co-President at US-based NORPAC concurs, adding that providing sustainable solutions is the goal of every paper manufacturer: “Truly sustainable papers are both environmentally friendly and cost-effective. To assess the sustainability of a paper mill, one must understand the story of both the fibre and the energy used.

“NORPAC is located in Washington state where we have abundant, green hydroelectricity – 96% of the electricity we use is renewable. The company has ready access to two types of fibre – wastepaper and waste chips from sawmills. We use wastepaper to produce high-quality, lightweight recycled

Truly sustainable papers are both environmentally friendly and cost-effective Another company in the broad paper category is ExaClair – part of the Exacompta Clairefontaine group. It has recently received a bronze medal from EcoVadis, ranking it in the top 25% of companies operating within the paper and cardboard sector.

The group uses pulp from sustainably managed forests and powers its sites with clean energy, while promoting recycling and waste limitation. This includes the incorporation of solar panels within its UK

King’s Lynn facility and biomass boilers at its Everbal site in France.

Many of its products carry Blue Angel, PEFC and FSC accreditations, and some are made from 100% recycled post-consumer plastic waste. Innovations in operational processes have also enabled the vendor to cut waste thanks to the use of production offcuts. For example, up to 25% of the Exacompta Teksto range is made from previously discarded materials that are now being reintegrated into the manufacturing process.

Exacompta neutralises the carbon emissions caused by the production of its desktop accessories range 1928 by investing in a hydroelectric plant in the Congo.

Within the UK, it works in partnership with the Woodland Trust Carbon Capture programme which has contributed to the mitigation of 82,994 tonnes of CO2 emissions. Through ExaClair’s activities, over 2,000 sq m (20,000 sq ft) of native woodland have been created.

CATEGORY UPDATE Vendor Sustainability

packaging and waste chips to make graphic paper, including our Natural Choice Copy Paper. This is made with half the fibre, half the water and half the carbon footprint of regular copy paper.”

WEPA’s Sharp admits virgin fibres still play a vital part in its production, but that these are 98.5% sourced from FSC or PEFC-certified forests located in Scandinavia and Southern Europe to minimise the carbon footprints of the logistics. The remaining 1.5% come from FSC-controlled wood sourced further afield.

All of the examples highlighted in these pages are just a small selection of the initiatives being undertaken by vendors across our industry – for space reasons, we couldn’t include more. You can also find regular updates on sustainability topics in the Green Thinking news section of OPI and on opi.net

December 2022 47

Vendor Sustainability CATEGORY UPDATE

THE FUTURE OF COFFEE The breakroom, and coffee within it, is an important part of the workplace – wherever that workplace happens to be nowadays. But this ‘business product’ too is under threat as a result of climate change.

It’s predicted that rising temperatures will reduce the area suitable for growing coffee by up to 50% by 2050. At the same time, around 125 million people depend on coffee for their livelihoods and an estimated 80% of coffee-farming families live at or below the poverty line. As such, action is needed to ensure the long-term viability of this crop.

Nescafé, Nestlé’s largest coffee brand, has outlined its plan to help make coffee farming more sustainable. Known as the Nescafé Plan 2030, the brand is working with coffee farmers and investing over CHF1 billion ($1 billion) to accelerate the transition to a regenerative food system and achieve net zero greenhouse gas (GHG) emissions.

Says Philipp Navratil, Head of Nestlé’s Coffee Strategic Business Unit: “Nescafé aims to have a real impact on coffee farming globally. We want farmers to thrive as much as we want coffee to have a positive impact on the environment. Our actions can help drive change throughout the industry.”

SUPPORTING FARMERS Regenerative agriculture is an approach to farming that seeks to improve soil health and fertility – as well as protect water resources and biodiversity. Healthier soils are more resilient to the impact of climate change and can increase yields, helping improve farmers’ livelihoods.

Nescafé’s mission is to provide farmers with training, technical assistance and high-yielding coffee plantlets to help them transition to regenerative farming practices.

These include:

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• Planting cover crops which help to protect the soil. This also adds biomass which can increase organic matter and thus carbon sequestration.

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• Incorporating organic fertilisers to boost fertility – essential for good soil health.

• Increasing the use of agroforestry and intercropping which contributes to biodiversity preservation.

• Pruning existing coffee trees or replacing them with disease and climate-change-resistant varieties. This will help rejuvenate coffee plots and increase yields for farmers.

The company will be working with coffee farmers to test, learn and assess the effectiveness of these regenerative agriculture practices. The focus will be on seven key regions where Nescafé sources approximately 90% of its coffee: Brazil, Vietnam, Mexico, Colombia, Côte d’Ivoire, Indonesia and Honduras.

Action is needed to ensure the long-term sustainability of coffee AMBITIOUS TARGETS Targets are ambitious and the manufacturer aims to produce 100% responsibly sourced coffee by 2025. 20% should be sourced from regenerative agricultural methods by 2025 and 50% by 2030.

Nescafé is committed to supporting farmers who take on the risks and costs associated with moving to regenerative agriculture by offering a number of measures. These include cash incentives for adopting new practices and greater access to credit lines for farmers, for instance. It will track progress and assess the results of its programmes through a monitoring and evaluation partnership with the Rainforest Alliance.

In addition to improving soil health, regenerative agriculture contributes to absorbing CO2 from the atmosphere and reducing GHG emissions. This project forms a core part of Nestlé’s CO2 elimination roadmap which aims to halve its emissions by 2030 and reach net zero by 2050.

ADVERTORIAL

Rebranded & REFRESHED

Smead has a new look, but its values and priorities remain very much the same

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conic filing and organisation products manufacturer Smead recently unveiled a complete rebrand and refreshed positioning. The US-based vendor says its new identity is rooted in Smead’s three key drivers – heritage, innovation and people. OPI spoke to CEO Casey Avent to find out more.

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OPI: Smead goes back a long way – tell me about the company’s history and evolution.

Casey Avent: Smead was founded in 1906 so we’ve been operating for over 115 years. We introduced the bandless file in the early 1900s – the first of over 1,500 filing products we produce today. From 1955 until fairly recently, Smead was led by the mother-and-daughter team of Ebba Hoffman and Sharon Avent.

As a result of their strong leadership, Smead became and remains the largest filing manufacturer in the US. Our most recent transformational move was the acquisition of stationery and consumer products company U Brands in 2017. It instantly expanded our product categories and diversified our channels of distribution.

Today, we compete in over 13 categories including presentation boards, writing, desktop organisation, journals, office tools and other accessories. Our ongoing growth strategy involves leveraging both Smead and U Brands in new categories.

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OPI: Let’s talk about your rebrand. What prompted it and why was it needed?

CA: We felt it was important to modernise the Smead brand and do it in a way that reinforces our rich heritage. The tagline ‘est. 1906’ gives us instant credibility with consumers and allows us to use our brand equity as we position Smead in other segments.

But it’s not just about a new logo and tagline.

The rebrand further encompasses a new visual identity, website and refreshed brand positioning. We have also updated our digital content across our portfolio of products.

The design and execution of the rebrand were all done internally. Our marketing team in San Juan Capistrano, California, is a very talented group of people and I’m proud of what they have done.

OPI: How would you describe the new look?

CA: It’s exciting and different. It’s modern, but it very much reinforces our craftsmanship, heritage and commitment to innovation.

In addition, it was important to me that we continue the rich tradition of the historic Smead plaid. Ebba Hoffman introduced the plaid design pattern in the late 1950s, thereby establishing Smead’s distinctive brand identity, and becoming one of the industry’s most iconic symbols.

There’s no question that the plaid has contributed to the company’s success for decades. The new logo remains ubiquitous and continues to lead Smead’s authenticity, strength and consistency. It represents the company, product quality and our promise to provide the best to all customers.

OPI: What early feedback have you had?

CA: I think our employees view the rebrand as a really positive investment in the future and as our commitment to still being relevant for the next 100 years.

Initial feedback from our customers has been extremely positive too. They will get the benefit of new packaging and improved digital content. The latter will further attract new consumers and allow us to upsell to more profitable solutions.

OPI: You mentioned U Brands. How does this entity fit into the rebrand?

CA: U Brands and Smead have unique brand personalities. Both represent quality: U Brands is fresh and modern, and fashion-forward focused, while Smead stands for craftsmanship, innovation and heritage.

OPI: You refer to a new website as part of the refresh. How is that being positioned now?

CA: The new Smead website certainly has a more modern look and allows us to reposition traditional filing products to be more appealing to today’s consumers.

Of course, consumers can shop directly from familiar outlets such as independent dealer sites as well as pureplay e-commerce resellers.

Another aspect which differentiates us I believe is that most of our paper-based products are produced in the US now – we recently moved our operations out of Mexico and back to the US. It’s important that we fully maximise our manufacturing footprint in this country and keep as many jobs as we can domestically.

Casey Avent

OPI: Are you saying you’re selling direct to end consumers?

CA: Yes, but it’s not our intent to compete with our customers. Our pricing is above market, so we don’t expect any channel conflict.

Consumers can purchase C and D items which may not be that easy to find through the traditional channels.

The rebrand allows us to leverage Smead in new categories OPI: Rebrand aside, what other plans do you have for Smead going forward?

CA: We will continue to be opportunistic by entering new categories organically or acquiring other companies or capabilities. Also, we believe we can grow globally. The breadth of what we offer today could be sold effectively in any country with the right strategic partners.

OPI: Do you have a specific country or region in mind?

CA: We are in the early stages of developing our global strategy. As such, we’re not ready to mention specific countries or regions.

OPI: How would you describe Smead’s core differentiating factor today?

CA: First and foremost, it’s our people. We have a very talented leadership team and employees who genuinely want the company to prosper for the next 100 years.

OPI: This is OPI’s Green Thinking special issue, so it seems obvious to ask about Smead’s sustainability positioning. What can you tell us in that regard?

CA: We are committed to working with our suppliers to take collective action in terms of addressing the topic of sustainability. We are hard at work to bring our customers high-quality products while at the same time reducing our carbon footprint.

Smead is proud of the number of environmentally responsible products we make – as I’ve just said, mostly produced in the US. We pay close attention to factors that include:

ADVERTORIAL Smead

The two appeal to different consumer groups with some overlap. Our efforts will continue to leverage both brands separately in new and existing categories.

• to harvest paper, wood, cork and MDF from sustainable forests; • to use recycled and post-consumer waste materials for both products and packaging; • to source all paper from Sustainable Forestry Initiative-certified suppliers; • to reduce the amount of packaging used; • to reduce the amount of virgin plastic used; • to work with suppliers to decrease energy consumption wherever possible.

OPI: Finally Casey, what’s your vision for the new Smead?

CA: The rebrand allows us to leverage Smead in new categories while we continue to grow and expand our U Brands offering.

We have a strong market share position in a few categories, such as filing, presentation boards, etc, but there are still significant growth opportunities across the 13+ product segments we market.

As we continue to invest in our brands and in category expansion, I am optimistic that we will bring more value and stability to our employees and customers.

December 2022 51

RESEARCH

GREEN

Thinking 2022

The

GREEN MILE

Cutting the environmental footprint of the last mile isn’t easy. There are plenty of ways to increase logistics efficiencies, however, that not only help lower costs but emissions too – by Michelle Sturman

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ccounting for up to 50% of total shipping costs, the logistical nightmare that is the last mile is currently being battered by an energy crisis, rising fuel prices and inflation, and labour shortages. Simultaneously, calls for the transportation sector to drastically reduce its carbon emissions is getting increasingly insistent.

E-commerce and hybrid working has upped the ante on last mile distribution considerably since the start of the pandemic. Metapack’s E-commerce Delivery Benchmark Report 2021 reveals some interesting consumer data: 32% of respondents, for example, say they value sustainability more than practical factors such as cost and speed in the ‘all-delivery’ economy.

Roughly half of the consumers questioned in Germany, the Netherlands, the US and the UK are willing to consider a lengthier wait for a more environmentally friendly shipment.

Only 40% of respondents from France said the same. Germans were willing to pay extra for a more sustainable delivery too (29%), as are the Netherlands (24%), the UK and the US (22%) and France (19%).

According to Metapack’s research, 75% of retailers say a more flexible logistics network is a priority, with 73% planning to use electric vans or hydrogen vehicles (6%), while 24% mentioned bicycles and 61% portering.

73% Percentage of retailers planning to use electric vehicles in last mile deliveries Source: Metapack

ELECTRICAL CHARGE In our industry, deploying more environmentally conscious modes of transport for the last mile is erratic at best. Some operators are way ahead of the game – WB Mason in the US, Lyreco across Europe and Complete in the UK spring to mind – but the majority lag behind.

The adoption of electric vehicles (EVs) appears to be leading the way in the transition to greener transportation. The Global Charging Infrastructure Market Report by design and consultancy firm Arcadis and the World Business Council of Sustainable Development (WBCSD) reveals that, when it comes to EV investments, the Netherlands emerges as a leader, alongside the UK and the state of California in the US. The report identified five key parameters critical for supporting investment: government leadership and incentives; EV market maturity and readiness; returns potential; charging infrastructure; and ease of doing business.

Based on these metrics, the overall ranking puts the Netherlands top, followed by Germany, the UK, China and Norway.

Says WBCSD Director of Mobility Thomas Deloison: “Widespread EV adoption is key, and even in the slower-to-develop markets, there is progress. This report is a snapshot in time, and regions will boost their scores as they adopt new government EV incentives, increase

THE SMART WAY US-based logistics intelligence firm Sifted points out that a consequence of recent supply chain issues hitting the headlines has been raised awareness of sustainability failures in the transportation industry. The 2022 State of Supply Chain Sustainability survey by MIT found approximately 80% of executives believed their company’s commitment to supply chain sustainability goals had remained the same or increased during the pandemic.

As Sifted Chief Growth Officer Caleb Nelson states in The Greener Last Mile: “It’s rare to find an industry where being more sustainable equals lower cost. But transportation-related sustainability is a 1:1 trade-off. Being greener can reduce overall cost while also reducing environmental impact.”

Source: US Environmental Protection Agency

In the US, EPA’s SmartWay programme is the “gold standard” according to Sifted, enabling users to measure, benchmark and improve efficiency. The voluntary, public-private endeavour provides shippers with a system for tracking, documenting and sharing information about fuel use and freight emissions across supply chains.

Supported by environmental groups as well as state and local governments, SmartWay certification is a way to show customers, employees and investors a commitment to a more sustainable last mile supply chain.

Aside from such programmes, there are plenty of other options for reducing emissions.

The combination of the pandemic and the explosion in e-commerce means end users are becoming accustomed to different delivery options, including increased parcel density or ship from store, kerbside pick-up, buy online pick-up in store, etc. Promoting these methods could lower last mile emissions by up to 26%.

December 2022

PACKAGING IT UP The spike in parcel deliveries has seen packaging waste skyrocket too – another huge pet peeve of customers. There are plenty of clever tools to optimise packaging and jettison anything unnecessary. Manufacturers and wholesalers are also becoming more adept at rightsizing boxes.

The latter is not only more environmentally friendly, but can help reduce last mile costs. Box fillers are becoming increasingly eco-friendly by using compostable and biodegradable materials and, where this isn’t possible, at least ensuring the filler can be reused and recycled.

Sifted believes a key to boosting shipping sustainability is to utilise existing data and analytical technology solutions. This can help to interpret patterns for optimised distribution; calculate mileage and fuel usage – crucial for figuring out carbon footprints; model packaging sizes to eliminate waste and lower overall expenditure.

Increasing efficiencies in last mile transfers represent a crucial aspect of building a better logistics infrastructure. Aside from software solutions, according to CB Insights’ Future of Last Mile Delivery report, other key technologies will include autonomous delivery systems, robotic stores on wheels, lockers and storage systems and digital twins.

The Last Mile

With clear leadership and the right policy levers in place, electric vehicles can play a prominent role in tackling the climate crisis

In the US, transportation accounts for the highest source of greenhouse gas emissions by economic sector

RESEARCH

their EV charging infrastructure, or as the EV market matures. With clear leadership and the right policy levers in place, EVs can play a prominent role in tackling the climate crisis and improving the quality of life for all communities across the world.”

Still, EVs represent a mere fraction of the overall transport sector. According to the US Environmental Protection Agency (EPA), for example, transportation accounts for the highest source of greenhouse gas emissions by economic sector (27%) in the country.

Globally, with e-commerce rising rapidly and hybrid working taking hold, demand for last mile deliveries is only going to intensify.

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GREEN

RESEARCH

Thinking 2022

Slow PROGRESS

OPI’s Green Thinking survey polled industry members across the globe and offers a snapshot of what’s happening in the business supplies sector in terms of CSR and sustainability

T

he fourth OPI Green Thinking survey reveals slow headway when it comes to certain aspects of sustainability such as single-use plastic, e-waste and the United Nations Sustainable Development Goals.

We will never know how much the pandemic stunted progress towards making our sector better for the planet and for people. But with some areas – e-waste, for example – actually going backwards, we clearly need to pick up the pace substantially.

But it’s not all bad news. Since 2019, steps to reduce carbon footprints have accelerated, the percentage of ‘green’ products sold has risen and the amount of more environmentally friendly packaging on offer has grown.

Are customers asking for more environmentally friendly products? n Yes, definitely n Not noticeably so n No

7%

30%

63%

20%

51%

29%

Do you think the move to the ‘sustainable office’ will transform your product mix? n It already does n It will soon n Not in the next few years

Specifically referring to single-use plastic, are customers asking you to reduce this?

Yes 54% No 46%

11% 80

9% What percentage of your current sales is due to ‘green’ products?

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34%

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n 1-25% n 26-50% n 51-75% n 76-100%

70

46%

60 50

In which categories do customers request more sustainable products? n Stationery n Office paper n Education/school n Jan/san n Breakroom n Office furniture n Safety

40 30 20 10 0

62% 47% 45% 37% 18% 17% 11%

13%

What are the primary influences driving the importance of sustainability in your organisation?

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n It’s the right thing to do n Customer expectations n Good for the brand n New product opportunities n Employee expectations n Legislation n New category opportunities

70 60 50 40

75%

30 Do you offer customers packaging that is more environmentally friendly? n Yes, all of it n Yes, some of it n No 10%

20 10

77% 68% 57% 44% 40% 41% 20%

0 Do you have a packaging take-back scheme?

Have you taken steps to reduce your carbon footprint in the past 12 months?

10%

35%

55%

No 21%

Yes 79%

n Yes n No

90%

Do you have a corporate social responsibility programme? n Yes n No n Working on it

12%

Do you have an e-waste policy in place for customers and/or your own business? n Yes, for customers n Yes, for my own business n Both n No n What’s e-waste?

16%

100

80

60

40

20

n Very important n Important n Not important

26%

42%

0

How important is sustainability to your organisation?

4%

What are the primary drivers behind your CSR programme?

12%

89% Good for the brand 49% Customer expectations 57% Employee expectations 57% It’s the right thing to do

48%

13%

46%

31%

10%

Are you working towards attaining the United Nations Sustainable Development Goals (SDGs)? n Yes, several of them n Yes, one or two of them n No n What are SDGs?

December 2022

40%

RESEARCH Green Thinking Survey 2022

12%

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RESEARCH

Back to work

– BUT WHERE? A

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re US workers planning to return to the office in 2023? If so, what does this mean in terms of future demand for business products?

A new research study by OPI and Martin Wilde Associates (MWA) investigated exactly that in October 2022. MWA asked approximately 400 buyers of business supplies where staff in their organisations currently worked and what the outlook was for 2023.

The US Business Products Consumer: Trends and Behaviours 2022-23 has the answers. While the majority of respondents had staff who currently worked only in the office, the largest share (63%) said employees worked both in the office and at home. About a third of survey respondents had staff who worked solely at home at present.

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RETURN TO THE OFFICE However, when these buyers were questioned about what percentage of staff worked in each of these locations at present and how they expected the pendulum to swing by late 2023, a clear shift back to the office is forecast.

By the end of next year, 57% of workers on average are expected to be back in the office, compared to 44% currently. This shift appears to be largely at the expense of hybrid working, which is forecast to fall from 41% now to only 24% in 2023. However, the share of employees working only at home is actually predicted to increase slightly from 13% currently to 18% next year.

Overall, there were significant differences in responses, depending on size of company as well as business activity, so the above numbers are averages.

The survey also looked at other contributory factors which will drive future demand for business supplies. Size of the workforce, projected revenues, how much time is being spent in the office by hybrid workers, and even

any expected changes in the amount of office space required by the 400 US businesses in 2023 were some of these circumstances.

Again, MWA found some significant differences in the projected changes of each of these elements due to business size. Research results further revealed that annual budgets for most of the products covered by the survey were widely expected to increase in 2023.

By the end of next year, 57% of staff [...] are expected to be back in the office, compared to 44% currently Seven broad categories were covered by the study: traditional stationery, office paper, computer & printer supplies, office furniture, breakroom supplies, cleaning items and PPE. The extent of the aforementioned budget hikes also depends on these specific segments.

To order your copy, go to www. opi.net/research/ trends2022

WORKING OUT THE TRENDS The US Business Products Consumer: Trends and Behaviours 2022-23 contains detailed information about the iterations – and repercussions – of the evolving workplace. It does not merely refer to changes in demand for individual items – for example, which ones will be dropped or purchased for the first time – but also to the method by which they are purchased, the average order value and the frequency of orders.

Finally, the 120-page report investigates which channels are being used to purchase each of the seven product categories, and which channels are being added – or dropped – by respondents.

The way people work is changing. This new study reveals what US workplaces want today, what they will require in future – and what it all means for the US business supplies industry.

EVENT

INDUSTRY WEEK ’22 POWERED BY ISG REVIEW

IDC shines brightly in Vegas

M

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uch of the US business supplies sector gathered under the bright lights of the Las Vegas strip in November as Industry Week, powered by ISG, took up residency at Caesars Palace.

The second outing for Industry Week offered a similar format to last year’s inaugural show in Orlando – with a few tweaks. One key difference was apparent early on as AOPD members were invited to join the one-on-one meetings with vendors which dominated the first couple of days on 7-8 November.

As the event progressed, it widened to include all of ISG’s membership, kicking off with a panel discussion on direct buying – a recurring theme – led by ISG’s EVP of Marketing Charles Forman and VP of Merchandising Jill O’Neill.

Day three also saw the start of the education programme which offered a selection of 12 seminars on a range of prevalent topics hosted by both ISG staffers and external industry experts.

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WORKPLACE OF THE FUTURE The general session after lunch began with a welcome by ISG CEO Mike Gentile. Next up was a keynote delivered by Phil Kirschner, a senior expert at McKinsey & Company, who spoke about the workplace of the future and what ‘office’ spaces might look like going forward post-pandemic.

Far from work being constrained to either the office or the home, Kirschner referred to “third places” where colleagues will meet and exchange ideas, such as bars, conference areas, hotels and leisure centres.

Also on a workplace note, Kirschner’s illuminating keynote was followed by a series of fascinating one-on-one interviews conducted

by OPI CEO Steve Hilleard. These featured experts from four distinct sectors of the business products industry: cleaning, furniture, breakroom and technology.

Part of the general session was also given over to the 2022 North American Office Products Awards (NAOPA), presented by OPI’s Director Janet Bell (see page 60 for a full NAOPA review). The day concluded with another round of seminar sessions before some much appreciated evening networking and relaxation.

It was back to business the next day with a broad schedule, including updates from trade organisations such as the Business Solutions Association and the Independent Office Products and Furniture Dealers Association as well as several awards presentations.

MARK THE DATE

An exuberant Mike Gentile announced Industry Week ’23.

The date is 8-11 October 2023 and the venues the Hilton New Orleans Riverside and the Ernest N Morial Convention Center

WHOLESALER UPDATE The morning further included an Essendant general session hosted by President/CEO Harry Dochelli, who spoke of the challenges the industry is facing and what Essendant is doing to help its dealers tackle them.

In the afternoon, attention turned to the trade show with a real buzz of excitement on the exhibition floor – booths were busy and orders were written.

Industry Week ’22, naturally, concluded with a party. The famous OMNIA Nightclub in Caesars Palace was taken over by ISG with cocktails, delicious food, eclectic music and plenty of dancing. The end – though not quite for some hardcore revellers – of another successful event.

Said Gentile: “The atmosphere was all about the spirit of being independent and genuine entrepreneurship. The members of ISG are truly resilient and ISG will continue to strive to be a progressive force in our industry.”

EVENT

BESTof the BEST

This year’s NAOPA were another sign of the times – the good times

F

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NORTH AMERICAN OFFICE PRODUCTS AWARDS 2022 REVIEW

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or the second time, the North American Office Products Awards (NAOPA) were hosted by OPI in association with Independent Suppliers Group (ISG) as part of Industry Week ’22, held at the fabulous Caesars Palace in Las Vegas from 6-10 November (see also page 58).

Nine awards were up for grabs, acknowledging both product innovation in our sector as well as the people who sell those products and make a considerable contribution to our industry in one way or another.

There were some familiar names among the winning companies, testament to the continued drive and

innovation in these organisations which are clearly paying off. We had two double winners this year, so a special shout-out goes to 3M and The HON Company for impressing in two categories.

As for the individual awards, emotions ran high as three worthy winners from the independent dealer community (IDC) were announced. They took to the stage to address a highly appreciative – and entertained – Industry Week audience with tales of their professional journeys.

A very big congratulations from the OPI team – for outstanding innovation, dedication to our sector and a relentless pursuit to learn, adapt and succeed.

BEST PRODUCT – CORE BUSINESS PRODUCT & INNOVATION OF THE YEAR WINNER: 3M – SCOTCH CUSHION LOCK PROTECTIVE WRAP The first NAOPA was given to the best Core Business Product. Despite all the talk of the decline of this segment, it was in fact a somewhat traditional office product which not only won this, but also another, category – Innovation of the Year – announced later on in the award proceedings.

3M’s Scotch Cushion Lock Protective Wrap ticked all the boxes for the NAOPA judges and was the clear winner in both categories. It addresses the need for safe packaging and offers a sustainable alternative to plastic.

The durable, all-in-one expanding paper wrap cushions, immobilises and conforms to items for protection during shipping, moving or storage. With a pull, it expands up to 60x its original volume, providing stabilised cushioning while eliminating the requirement for additional void fill.

Cushion Lock also uses an Advanced Self-Locking Technology to remove the need for tape, making it – in line with current customer expectations – 100% recyclable.

Speaking to OPI, a delighted Emily Hiner, 3M Stationery Office Channel Marketing Leader, said: “Thank you for this wonderful recognition. We are honoured to receive both the Core Business Product and Innovation of the Year awards.

They mean so much to the Scotch brand and 3M. “We are excited to bring an alternative to bubble wrap as our Scotch Cushion Lock is made with 100% recycled paper and is 100% recyclable. We are proud of our team’s dedication to lead with innovation while making the world a better place.”

There’s no doubt that the Facilities, Breakroom, Safety & Infection Control category has captured the innovation imagination – thanks to COVID-19.

It was Fellowes Brands who scooped the award for the second year running, this time with the AeraMax Pro AM4 FLEX. The judges appreciated the ‘plug-in and purify’ concept and thought it offered inventiveness and great market timing.

This air purifier is the vendor’s first unit on casters for ease of mobility throughout larger spaces.

It has dual 4-Stage H13 True HEPA Filtration and features active air quality monitoring using EnviroSmart Technology. PureView Technology, Fellowes’ patented sensor technology and display, provides real time status updates as the air is cleaned.

Always seeking to really own and lead its product categories, Beth Wright, Chief Commercial Officer at Fellowes Brands, commented: “We are thrilled to be recognised with this award as Fellowes continues to demonstrate market leadership in localised air quality management systems for shared environments.

We look forward to our launches and reseller sales opportunities in this category in 2023 and beyond.”

BEST PRODUCT – FURNITURE & DESIGN WINNER: THE HON COMPANY – WORKWALL PEOPLE’S CHOICE WINNER: THE HON COMPANY – COFI A category which has seen somewhat of a renaissance – partly pandemic-induced with changing work environments in mind – is that of furniture. The HON Company has risen to the challenge and won two awards for different products.

The Workwall proved hugely popular with the NAOPA judges and triumphed in the Furniture & Design category while the Cofi chair was the firm favourite with OPI readers and attendees of Industry Week, comprehensively winning the People’s Choice award.

Workwall – described by the judges as functional, personalised and attractive – is a dynamic and easy-to-install, cohesively engineered tile system which mixes and matches fabric, metal, glass and laminate materials with smart tools and accessories.

Hon’s Cofi executive chair, meanwhile, is equally customisable with three control mechanisms that support different positions and postures.

Ric Andersen, VP & General Manager of The HON Company, said: “We are excited to win the NAOPA for innovation in the furniture space and the People’s Choice overall award. Both awards showcase the capabilities and innovation of HON as well as the support of our dealer community.”

December 2022

BEST PRODUCT – TECHNOLOGY WINNER: KENSINGTON – UNIVERSAL 3-IN-1 PRO AUDIO HEADSET SWITCH No other segment impacts the way people work currently as much as technology. And the scope of what ‘technology’ can mean is vast as the shortlist showed, incorporating everything from health and wellness-related tech products to items which facilitate mobility and flexibility.

Kensington is an expert in the field and it was its Universal 3-in-1 Pro Audio Headset Switch taking home the award. “Clever and simple” is how the NAOPA judges referred to this communication tool.

Explaining how it works, Ada Yang, Director of Global Product Management at Kensington, told OPI: “The Universal 3-in-1 Pro Audio Headset Switch addresses the reality that today’s mobile professionals are typically multi-device users.

“It enhances productivity by giving workers the ability to connect a single headset to multiple wired and wireless devices, such as a laptop, tablet and smartphone, and switch between them instantly with the press of a button.”

EVENT NAOPA 2022

BEST PRODUCT – FACILITIES, BREAKROOM, SAFETY & INFECTION CONTROL WINNER: FELLOWES BRANDS – AERAMAX PRO AM4 FLEX

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NAOPA 2022 EVENT www.opi.net 62

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roducts aside, the second set of awards recognise individuals who, in some way, are making – or have made – a valuable, outstanding even, contribution to the US business supplies space. They are at varying stages of their careers but are, without question, shining examples among their peer groups.

YOUNG EXECUTIVE OF THE YEAR WINNER: HB MACEY IV, PERRY OFFICE PLUS If the shortlist of the Young Executive of the Year is anything to go by, there’s plenty of talent coming through the ranks. But the NAOPA judges ultimately settled on one individual who impressed them the most – HB Macey of Perry Office Plus.

Introduced by his father Harry Macey, HB is a hard worker who has always loved getting stuck into this industry – all the way back to elementary school!

Since graduating in 2010, he has helped Perry Office Plus on a full-time basis to grow – organically, in new product categories, expanded geographies and through acquisitions.

A big milestone came in June 2021 when he became President of the Texas-based dealership. Another huge occasion occurred at the beginning of this year when HB, with his wife Lynnsay, bought the company from his parents. And he’s already bought his first firm as owner with the purchase of V-Quest Office Machines & Supplies in October.

HB referred to himself as a “true creature of a succession story”, but pointed out that this was “not an HB award, but one for the whole team”. The future of Perry Office Plus looks safe in the hands of HB Macey.

INDUSTRY ACHIEVEMENT WINNER: DAVID GUERNSEY, GUERNSEY As always, for the Industry Achievement trophy, the judges look for an inspirational person – someone who may have been instrumental in the success of his own organisation or has helped advance the US business supplies sector as a whole.

The winner has done both and plenty more, and when his name was announced by fellow IDC great Bruce Eaton, nobody was surprised.

There’s no shadow of a doubt that David has dedicated his professional life to supporting the US – the global, in fact – independent dealer channel.

In his heartfelt introduction, Eaton

PROFESSIONAL OF THE YEAR WINNER: CHARLES KENNEDY, KENNEDY OFFICE

Real leaders see solutions, not problems; they guide rather than direct. They have passion for what they do. Enter Charles Kennedy, CEO of Kennedy Office.

A second-generation leader of the business, Charles started his Kennedy Office career in 1992, early in his tenure facing considerable – and new – competition, while always striving to keep the dealership relevant and on a growth path.

As his sister and business partner Mary Catherine Kennedy Sigmon said when announcing this NAOPA winner: “The IDC and its cast of characters are his passion. He is a natural salesman and has been instrumental in the success of Kennedy Office by networking and winning new customers, many of whom remain loyal to us today.”

In addition to his evident commercial talents, Charles is also an individual with a fantastic sense of humour – and musicality – as he proved when accepting the award and bringing the Industry Week house down by breaking into song several times. Here’s a current leader, who has plenty more to give in the years to come.

referred to David’s 50+ years in business and paid tribute to his friend and, metaphorically speaking, partner in crime.

“This person has redefined the term collaboration. The list of his achievements is endless: from uniting dealers to compete with big box competitors that formed in the 1980s, to spearheading an effort to combine Independent Stationers, TriMega and Pinnacle into a single entity that is now ISG; and finally organising a small group of independents into Supply Chain Investment Group. His boundless energy has made us all more successful.”

There is so much more that could be said about this individual – pages and

pages which could be filled (as OPI has over the years with his insight).

Picking up his award to rapturous applause, David’s first two words summed it all up: “How special.”

The only senior executive forum for the business and workplace supplies industry.

Join this exclusive event and Understand the unique changes to the European market Learn new strategies and best practice from an inspiring agenda l Discover practical takeaways to enable informed strategic decisions l Enjoy unrivalled networking opportunities l l

EUROPEAN Forum 2023

SAVE THE DATE

22-24 MAY PESTANA AMSTERDAM RIVERSIDE, THE NETHERLANDS This year’s OPI Forum was one of the best that I have attended. As always, plenty of networking opportunities but combined with interesting, relevant, thought-provoking presentations that provided me with some tangible takeaways for my business to work on

For more information and to book, go to www.opi.net/ef2023

GREEN

5 MINUTES WITH...

Thinking 2022

Nathan Mitchell

CAREER Q&A

What makes you happy?

Lots of things – life is beautiful. But nothing compares to my small circle of loved ones.

What do you do in your spare time?

Studying, personal development and strength training. Occasionally dusting off my guitar. Above all, showing my children that I’m still the biggest kid in the house.

Early bird or night owl?

Early bird.

Humankind’s greatest invention?

It has to be the internet, surely! Although I guess electricity had to come first for that.

And computers…

Nathan Mitchell, Greenspee d

What song puts you in a good mood?

Smash Mouth’s All Star – 23 years after its release, it still seems fresh and current. It is to me anyway.

What subjects should be taught in schools but aren’t?

Entrepreneurialism and finance.

What skill would you like to master?

How to master skills.

Favourite time of the year?

Autumn – jumper weather is the best.

What word do you use the most?

Absolutely.

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Your childhood ambitions?

To be a superhero, an astronaut, a pilot, a wrestler – all my ambitions were quite fickle and short-lived.

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Describe your current job.

I’m the International Key Account Manager for the UK & Ireland at Greenspeed. My remit is to provide hygiene solutions to customers which benefit both humanity and nature.

Your worst ever job?

One of my earliest work experience roles was putting letters in envelopes and sealing them for seven hours a day. It was extremely boring.

Best way to stay motivated and complete goals?

Motivation can be fleeting, so discipline is always key.

Your favourite ‘office product’?

I no longer enjoy using envelopes – I wonder why! Everyone loves a stapler though, right?

If you weren’t doing your present job, what would you like to be doing instead?

Some form of nutrition coaching. Or touring the world in a rock band.

Actually, yes, definitely the latter.

FINAL WORD

N REkE G Thin ing 2022

F

TOP of the AGENDA

ew would argue that the office products industry is a mature sector. And, typically, mature industries employ mature people.

The differential in average age profile between those employed in our sector and most users of business products has probably never been greater. I would hazard a guess it’s at least a generation.

With this in mind, the challenge is to bridge the gap in attitudes and interests between the generations. And nowhere is this gap more evident than in the area of sustainability.

DRIVEN BY THE YOUNG Most young people – by which I mean anyone under the age of 40 – have an interest in the environment far exceeding that of previous generations. It is this demographic which now makes up the majority of ‘office’ workers. The environmental headlines are sobering:

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• By 2050, there will be more plastic in the oceans by weight than fish.

• 100,000 marine mammals and turtles, and one million seabirds are killed by marine plastic pollution annually.

• Producing one tonne of plastic generates up to 2.5 tonnes of CO2.

• CO2 and methane are released at every stage of the plastic life cycle; every piece of plastic ever produced is still with us in some form.

• Relying on trees to absorb enough carbon emissions to achieve net zero by 2050 would require new forests covering five times the size of India.

• Within 20 years, global temperatures are forecast to rise by 1.5℃.

• Rising sea levels caused by melting ice sheets and glaciers will submerge the homes of 200 million people within 70 years.

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Given those stats, it is hardly surprising that most young people, and more and more older ones, are concerned and want to take action to reverse the trends and change the outcomes. This is increasingly reflected in their buying choices in all vertical markets – including business products.

In the UK, industry federation BOSS formed the Single Use Plastic Forum in 2018. The idea behind it was to help steer our sector through the challenges of a marketplace that was demanding information about the supply chain’s policies and plans regarding more sustainable operations and environmentally friendly products.

The forum was initially launched in response to consumer feedback resulting from the use of blister packs in retail packaging for writing instruments. It quickly became apparent that concerns were not just about single-use plastic, but plastic in general. As such, the brief of the forum was widened.

While demand for environmental information and products with sustainability credentials slowed during the height of the COVID crisis, it has recently accelerated. As one London-based reseller said in October 2022: “Sustainability is now the #1 issue in every client meeting.”

Martin Eames, Director, Product Promotion Services & Chair, BOSS Environmental Forum

Sustainability is now the #1 issue in every client meeting GETTING EVERYONE ON BOARD Now called the Environmental Forum, the BOSS initiative continues to grapple with a broad range of issues such as standards and definitions, making steady progress ahead of legislation but behind the market.

As resellers face growing demands from their customers for more detailed environmental information about both products and the entire supply chain, they relay this pressure to the next stop in the chain – the vendors.

Sadly, there still appear to be manufacturers that think the sustainability push is merely a ‘phase’ which they can accommodate with a bit of greenwashing and plenty of smoke and mirrors.

I appreciate the complexity – and the cost – of truly sustainable processes and products, but the direction of consumer travel is clear.

The pressure is not going to go away and those vendors picking up the baton and really running with it will be the winners.