Questions, Please

Are your store brand suppliers helping or hindering your eco-initiatives? By asking the right questions, you'll not only get your answer, but also uncover ways to augment efforts.

A clean store, a decent assortment, fair pricing and excellent customer service no longer are enough when it comes to building or maintaining a strong retail image. Many of today's shoppers also are adding social responsibility to their list of merchant requirements.

Chances are, your company has been working hard to "green up" overall retail operations during the past few years, looking for ways to reduce the eco-impact of everything from transportation to in-store lighting. And your store brands likely are part of that push — with the goals of greener manufacturing practices and sustainability-minded packaging top-of-mind.

But are you really getting what you've been promised from your private label manufacturers?

We asked a number of folks from companies and organizations boasting a strong environmental commitment to detail some of the most critical questions grocery retailers should be posing to their store brand suppliers. Read on for their top 10 — and the thinking behind them.

1 What does environmental responsibility mean to you, your company and your products?

According to Steve Shriver, founder of Cedar Rapids, Iowa-based Eco Lips Inc., the answer to this very broad question will immediately define the scope of a supplier's environmental commitment.

"It gives the supplier an opportunity to adequately convey their sustainability initiatives, or fail the questioning by conveying their lack of a focus on sustainability or expertise in that area," he says.

A truly eco-minded company will be eager to tout its commitment and should be able to speak in-depth about programs or initiatives in place, Shriver adds, as well as to share information about ingredient/material sourcing and manufacturing/shipping practices.

2 How can you demonstrate your environmental responsibility to us?

Retailers also will want to ask for proof that the supplier's information is accurate, reliable and complete, says Lisa Feigen Dugal, North American retail and consumer advisory practice leader for New York-headquartered PricewaterhouseCoopers. They need to be able to verify that "progress is being made toward mutually established environmental goals," she adds.

James Pruden, director of industry public relations for Cotton Incorporated of Cary, N.C., agrees that verification is essential.

"Transparency along the supply chain is becoming more a part of daily business," he stresses. "If a supplier cannot produce an acceptable sourcing-to-disposal snapshot of their product these days, then they might be selling a figurative bill of goods, too."

3 How do you measure and enforce compliance with your environmental standards?

Kirsten Osolind, CEO of San Diego-based Reinvention Inc. and former national marketing director for Whole Foods, says retailers also need to ask their store brand suppliers about the methods they use to evaluate environmental progress (e.g., onsite eco-audits, document-based review, third-party verification, DNA testing). And, of course, the methods and measures should be well recognized and credible.

4 What specifically are you doing to track and reduce your carbon footprint?

This question is worth asking separately because "carbon equals energy, and energy equals costs," notes Claire Douglas, partnerships director for Silver Spring, Md.-based Carbonfund. org, a non-profit organization that supports third-party validated renewable energy, energy-efficiency and reforestation projects that reduce carbon dioxide emissions and the threat of climate change. Suppliers that identify carbon-intense processes in the supply chain can begin to focus on reducing costs effectively (and perhaps pass some of the savings on to the retailer). But cost is certainly not the only issue.

"Legislation is coming, and retailers are seeking companies that can report on and reduce carbon emissions," Douglas says. "These companies will certainly have a competitive edge in the near future."

Larry Goldenhersh, founder and CEO of Carlsbad, Calif.-based Enviance, a provider of environmental health and safety software, agrees that carbon content represents a valuable way for retailers to differentiate their products from their competitors.

"Cloud-based computing systems are available today that deploy easily from San Pedro to Chen Jin, and cost-effectively measure actual emissions based on accepted protocols and standardized data collection and calculation," he notes.

5 Have you considered carbon neutrality?

Joe McGurk, a spokesperson for The CarbonNeutral Co., New York, explains that a strategy of "offset-inclusive carbon management" calls for a supplier to use an approved protocol to measure the emissions associated with a product's lifecycle. The supplier then takes all possible steps to introduce efficiencies that reduce emissions, finally taking the operation to "carbon neutrality" through the purchase of third-party carbon credits generated by a verified emissions-reduction project.

"All the elements of this approach, including the measurement of associated emissions, the internal efficiencies and the purchase of offsets, should involve third-party verifiers that can endorse the environmental benefits of the process and any green claims from the supplier," he says. "There are many labels and certifications associated with carbon neutrality, but retailers should ensure that the environmental claims the supplier is making stand up to public scrutiny."

6 Are your paper products made from certified wood fiber sources?

Bruce Woodlief, director of marketing for Clearwater Paper Corp., says disposable paper products manufactured from certified sources help promote sustainable forestry. Such products exclude sources that secure fiber from 1) forest areas in which traditional or civil rights are violated, 2) uncertified forests that threaten high conservation values, 3) genetically modified trees, 4) illegally harvested forest areas and 5) natural forest areas cleared for plantation or other uses.

Several certification schemes have emerged over the past two decades, Woodlief explains, with the globally recognized "gold standard" for forestry certification being the Forest Stewardship Council (FSC).

"Having a certified supplier of paper products will provide added support that the retailer is in compliance with the U.S. 2008 Lacey Act legislation, which prohibits trading in illegally harvested wood and plant products from domestic or foreign sources," he adds. "While certification alone does not confirm compliance, it can add credibility to a company's compliance statement."

7 Do you offer sustainable, environmentally friendly packaging?

Ask about the availability of biodegradable bags, packaging made from recycled fibers, and/ or paperboard printed with inks boasting a low level of volatile organic compounds, Osolind recommends.

"In packaging, the supplier probably buys from a packaging printer, who buys paperboard or containers on price, from someone else," adds Mark Mitchell, CEO of Tailford Mitchell, a Toledo, Ohio-based package design agency. "Store brand suppliers need to engage the printer to make sure they understand green goals as well."

8 Are you willing to commit to environmentally friendly practices above and beyond what you are doing now?

As Mitchell sees it, store brand leaders will need to be sure their suppliers understand that an environmental commitment calls for much more than, for example, the use of recyclable packaging. Retailers should challenge existing suppliers to go the extra mile.

"Can they load trucks more efficiently to get more product on each load, reducing the amount of fuel and emissions?" he asks. "Can they schedule deliveries more efficiently to do the same thing? And what about the supplier's suppliers and their impact on lifecycle analysis?"

9 Are you taking advantage of available tax credits, incentives and grant opportunities for alternative energy strategies?

Potential climate change and energy tax legislation, combined with President Obama's commitment to encouraging and incentivizing U.S. businesses that implement green initiatives, translate into energy-efficiency-related tax opportunities, according to PricewaterhouseCoopers. Here's your chance to at least get the thought process rolling (and to consider such initiatives for your own company as well).

10 How can I help?

Sometimes a major expenditure such as an investment in capital equipment would greatly enhance a particular supplier's environmental efforts. Mitchell says retailers should work with suppliers to find out what they need in terms of resources to enhance overall environmental performance — and be willing to be part of the solution. "What would it take to make that purchase possible?" he encourages retailers to ask. "A longer-term contract, giving consideration to lifecycle analysis?"

Finally, to ensure the best-possible outcome, retailers will have to do much more than ask questions of their suppliers, Mitchell says. They will have to become more engaged in the entire process.

"They will have to get involved and understand how those who supply even ingredients and packaging are supporting the green movement," he says.