We’ve seen a real upsurge in the need for product manufacturers to address sustainability issues.
New clients are coming to us asking for help with meeting their clients requirements around sustainability. This could be in the form of certification, Ecolabelling or ISO14001. But it could also relate to sustainability more broadly in terms of social responsibility.
Companies like telcos, insurance, big banks and the construction industry want to know what product manufacturers and retailers are doing to address environmental and social risks. They want to know what strategies they have in place, what certifications they hold, how they are caring for their staff and addressing environmental and social risks in their supply chains. It’s really building momentum.
Why is this happening?
The big end of town is stepping up their sustainability procurement practices
Large multinationals and large Australian-owned companies, like construction companies, are really putting time and energy into their sustainable procurement practices. They are asking their suppliers what they are doing to address environmental and social compliance.
The industry is now moving towards the early majority
Rogers’s Innovation Adoption Curve shows the changing trend. That’s why we’ve seen more and more requests for our sustainability services.
Some government organisations have been in the innovators and early adopters category. City of Sydney is an example of this. But now we’re seeing greater momentum from other government departments and it has been rumoured that the NSW Government has undergone a ‘sustainability recruitment drive’.
A new swag of standards and certifications have come onto the market in the last 2 years
These standards are finally building momentum. Standards like ISO20400: 2017 Sustainable Procurement which provides guidance to organizations, independent of their activity or size, on integrating sustainability within procurement processes. And the WELL Building Standard which focuses on the health and wellbeing of building occupants.
The Australian Government is looking at adopting a Modern Slavery Act
This Act would call on organisations earning over $100 million dollars to report annually on what they are doing to address modern slavery. This would also apply to their supply chains.
The Modern Slavery Act would not just affect commercial businesses but other business entities like higher educational facilities. It is estimated that this will directly affect over 1000 companies.
What does this mean for product manufacturers?
Manufacturers need to understand their market and what their sustainability needs and expectations are
When we meet with new clients, the first thing we want to know is:
who their clients are
what their market is
what kind of projects they are going after
what are their aspirations.
We have a good deal of experience with a number of different product manufacturers. These include manufacturers of furniture and building products, retailers and wholesalers. There is such a cross section of markets. Government procurement requires different certifications than end users need. Larger construction companies have more sustainability requirements than second- tier construction.
Where are the opportunities for you in this?
1. If you are doing good things in this area, you should:
start talking about it
make sure you are clearly displaying your credentials on your website, your email tags and in your marketing material
include your certification logos on everything.
2. If you have no sustainability initiatives and strategies, you should:
start planning
Develop an action plan, set objectives (short and long term) to address market expectations
Get up to speed with Ecolabelling & Green Star requirements and the new WELL Building standard
make sure you don’t get left behind and miss out on specifications.
3. You should work out who your customers are.
Different sectors require different certifications and sustainability requirements. For example, NSW Government procurement for furniture requires ISO14001 certification for the larger projects. Universities, end-users, architects and designers require Ecolabelling certification to meet Green Star. And the top end of town want to know more about your whole sustainability strategy and credentials to include social responsibility and supply chain due diligence.
Listen to your customers. Find out what they want from you. Work out how you can help them be more sustainable.
What are the 5 key takeaways?
Understand your market
Know that the market is changing
Know where the opportunities are
Start planning
Get noticed
So we should see more in this area in the coming years.
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