Procter & Gamble – How Far Does the Sustainable Product Revolution Go? – Ethical Corporation
Great analysis of how the consumer packaged goods manufacturer is progressing along its sustainability path, a $20 billion sales goal of “sustainable innovation products” by 2012, and the issues a product company faces while attempting to innovate sustainably. Lots of loaded words, yes I know, but the author does a far better job than my little one-liner synopsis could dare attempt. But I will leave you with the money quotes:
“How is improvement defined, and against what base?
To qualify under the company’s target, the products have to have been launched in market since July 1st, 2007, and have a greater than ten percent reduction in one or more of the following: energy; water; transportation; material use. Energy use can also mean substituted by renewable sources as well as reduced overall.
That is a good, honest, forward–looking measure. It also begs the question as to what progress has been made, and who decides what is good.
Given the range of issues across the product range, P&G’s approach to setting targets for sales of improved product looks worthwhile.
What it measures is not environmental impact per se – but how the company is using its key focus on innovation to continue to drive improvement.
If one could balance the target out with an ongoing tally of the eco–efficiency of the whole product range – to ensure that the $20bn of sales by 2012 isn’t balanced out by a similar increase in more damaging products, you have a pretty robust approach.”
According to this SLM article, P&G has now raised its sales goal to $50 billion.