Presentation on theme: "Blaine Shier Green Leaf Project Making Canadian Tire A Leader in Sustainable & Green Retailing."— Presentation transcript:
Blaine Shier Green Leaf Project Making Canadian Tire A Leader in Sustainable & Green Retailing
Overview Introduction Mission Statement Need & Reasons for Change Market Place Competitive Overview What Canadian Tire is Already Doing Market Overview Matrix Recommendations Ideas Costs Benefits Conclusions
Mission Statement To positively affect a reduction in the negative ways in which Canadian Tire & its employees impact the environment in the regular course of business Achieve an industry leading sustainable or green status for the corporation and leave a better Canada for the next generation of Canadian Tire customers Establish practices that will achieve a best in class rating on the Dow Jones Sustainability Index which Canadian Tire has been invited to participate inDow Jones Sustainability Index
The Need & Reasons for Change Canada is moving towards a sustainable economy Consumers are becoming more educated on the environment & environmental issues To avoid being forced by legislation to change (as with Ontario’s Light Bulb Ban) Much like our efforts to manage down costs, our currently strong position also allows for us to make sustainability changes on our terms
The Need & Reasons for Change Environics Research Group Two-thirds of consumers are likely to switch their spending to companies that have demonstrated a commitment to green policies.* 75 per cent of Canadians surveyed said they are likely to change their own shopping habits to purchase more environmentally friendly goods and services, even if it means paying a premium price.* *Survey of more than 1,000 Canadians conducted Feb. 7–14, 2007.
The Need & Reasons for Change Publicity & Need for Consumer Communication Apple Computers has recently come under regarding their environmental policy. This was not necessarily because they weren’t working towards being a “green” company but because they weren’t openly discussing their efforts with consumers. In this article Steve Jobs, CEO Apple Computers, replies to the issue of sustainability and he not only discusses what Apple is doing to be “green” but how they are striving to improve upon their communications of their efforts.
Market Place Review of Best In Class Retailers Wal*Mart Target Review of LEED Loblaws Loew’s Home Depot
Wal*Mart "This [“greening”] is the right thing for the business, for the environment and for the customers," Mr. Pilozzi (National Post 10/02/07) Sustainable store designed for stalled Vancouver store by Peter Busby (Busby Perkins + Will)Busby Perkins + Will This store was to be next to 26 Southwest Marine Dr. our new Vancouver development
Market Place Wal*Mart Solar Power Pilot Program Wal-Mart will have solar photovotaic (PV) electric generating systems installed in 22 locations in Hawaii and California combined. The total solar power production from the 22 sites is estimated to exceed 20 million KWh (Kilowatt hours) per year, which, as an aggregate, could be one of the U.S., if not world’s, top-10 largest ever solar power initiatives. Pilot project stores are expected to achieve savings over their current utility rates immediately—as soon as the first day of operation. Announced: May 7th, 2007
Market Place Target
Market Place Target Real Commitment. Real Progress. Real Results. Minimizing [Target’s] environmental footprint one store at a time.(excerpt from Target’s website)Target’s website
Example In summer 2003, Target installed a extensive green roof on a store in Chicago.
Example Toronto City Council approved a Green Roofs strategy to promote the use of city rooftops to grow gardens and other vegetation. Ryerson has two green roofs, one over an underground gym facility and another, which is a test facility, on the roof of the George Vari Engineering and Computing Centre (http://www.ryerson.ca/cpf/greenroof.html)http://www.ryerson.ca/cpf/greenroof.html
Loblaws In many ways, consumers are way ahead of us [Retailers]. They know the stakes of the environmental crisis. And they want to do something positive about it. [Loblaws’] challenge is to give them the means to do it and to lead by example. They want to be sure that a retailer's commitment is more than marketing-deep. (Galen G Weston: Globe and Mail, April 23 rd, 2007) Loblaws launches an eco-bag (Spring 2007) “Finally a shopping bag that doesn’t cost the earth™. Twice the size of a standard plastic grocery bag and withstands about 50 store trips – about 1 full year.”
Lowe’s In 2005, Lowe’s installed solar-powered rooftop energy generation systems at three stores in California, adding to the existing system in their store in West Hills. This on-site generation reduces demand on the electric grid, which offsets their stores’ energy use. Lowe’s LEEDS (Leadership in Energy & Environmental Design) Gold Award Store – Austin, TX
Home Depot In 1998, Home Depot established its Executive Environmental Council with the responsibility to integrate environmental considerations into every aspect of the company’s business. The Council oversees initiatives in merchandising, store construction, real estate, logistics and waste management.
Market Place Home Depot Home Depot’s Store Construction and Real Estate Task Force oversees integrating environmental considerations into new store construction and in upgrading old stores. From 2000 through 2004, energy consumption per square foot was reduced by 12%.
Market Place Home Depot Recently launched their line of Eco- friendly product called Eco-Options. Their website outlines not only the benefits of the products but gives consumers the tools to understand how these products will help them achieve their “green” goals.
What Canadian Tire is already doing Canadian Tire’s Website
What Canadian Tire is already doing Advance Green Smart Energy Solutions Line of products designed to help consumers reduce their environmental footprint Website and flyer exposure Corporate Programs New e-flyer program During 2003, the solid waste diversion rate at our warehouses was greater than 85%.
Market Overview Matrix CompanyGreen Products WebsiteStore DesignGreen RoofsRecycled/ Enviro-bags Corporate Social Responsibility Report Wal*Mart ½2½2 Target Home Depot Lowes Loblaws Canadian Tire ½1½1 ? 1: Although Canadian Tire does have a website it is very low on content and may in fact provide a worse image than nothing at all. 2: Although Wal*Mart does not have a CSR report it does document all things required for one on it’s website.
Ideas Conservation Programs Innovative Technology Work Environment Publicity
Conservation Lighting Replacing light bulbs with high efficiency bulbs Switching to electronic timers/computer systems Heating & Cooling Geothermal projects EnWave Deep Water Cooling project Green roof projects Electricity EnergyStar monitors/office appliances Energy conservation programs
Conservation Carbon Neutrality NativeEnergy, Bullfrog Power & Other Green Energy SuppliersBullfrog Power Green E Certified Renewable Energy Credits (Carbon Credits) Bullfrog Power client list >10k MWh/yr Wal*Mart Canada Ivanhoe Cambridge 5k-10k MWh/yr Cabury-Adams 1k-5k MWh/yr RBC Credit Union Central of Ontario
Conservation Logistics Hybrid or alternative fuel transportation trucks Increased efficiency of packaging Getting to Work Subsidies for using mass transit Car pooling programs Subsidies for high efficiency vehicles At Work Eco-based transportation between offices Car rental policy that forces high efficiency vehicle rental when ever possible
Conservation Water Saving Garden Centers Re-use and filter grey-water for irrigation purposes Use cisterns to collect rainwater for use in the garden center Examples Tanks collect rainwater for plants in the garden center at Loew’s in Austin, TX Image of cistern at a Mountain Equipment Co-op in Ottawa
Programs Green Leaf Website (employee version) A web-site designed to educate employees on products and hints and tips for the consumer Also provides education for use in their own home and day to day life Environmental Audits Optional program offered to dealers to evaluate ways in which their store can reduce their environmental footprint
Innovative Technology (Corporate) Partner with lease holders to grow/build towards green buildings Use Retail City to test technology before rolling it out to stores Work with vendors to leverage industry technology and processes Engage Wal*Mart in their offer to share knowledge and technology to help reduce the eco-footprint of a retail location
Innovative Technology (Stores) Green Parking Lots Planting trees to regulate heat Permeable concrete to allow water LED Lighting LED based lighting in signs for the outside LED lighting for tills & light boxes
Innovative Technology (Stores) Wind & Solar Power Install wind & solar farms on the roofs of CT buildings Images of the Wal*Mart test store in McKinney Texas. Wind turbine in the parking lot to provide kWh/yr
Innovative Technology (Stores) Biodegradable/Reusable Shopping Bags This product is used by Mountain Equipment Co-op in conjunction with a bag reuse program. Introducing a bag reuse program, similar to Loblaw’s or Whole Foods Market, where customers who bring in their own bags for shopping receive Canadian Tire Money for each bag they use. Offering a branded fabric bag which is intended for long term use
Work Environment Clean Air Natural air filtration using living walls Removal & recycling of carpet to be replaced with bamboo or cork Recycling Expanded & required blue box programs Life-Style Exercise & mediation areas (Green rooftops) Education programs on the sustainable home
Publicity Green Leaf Website (public version) A non-commercial web-site designed to educate consumers on building/running sustainable homes Research & Study Associate with a university to develop technology & best practices Create a professional association to develop and share best practices with like minded retailers
Costs Although some of the technologies are more expensive in the short term, the long term savings and fringe benefits would likely off-set any of these costs Each project would have to be looked at from a cost/benefit perspective with an understanding that like most changes this one may incur some higher costs
Benefits Revenue By offering products and information aimed at providing early adopters we can expect the high margin revenue from these consumers Publicity By doing the right thing before being legislated Canadian Tire can expect to long be considered one of Canada’s most trusted companies.
Retail City Actionable items for quick win Providing “green” vehicle only parking spaces Establishing a car pooling program Getting an environmental sustainability audit of Retail City Developing an electronic version only policy for RMA check lists and sign-offs Providing “Blue bins” with every garbage bin especially on the retail floor
Store Design Quick Wins High efficiency lighting solutions High efficiency vehicle parking Key Short Term Strategies Reducing volume/ type of store bags Using low-VOC construction materials Key Long Term Strategies Incorporating natural lighting Rooftop & parking lot power generation Grey water re-cycling Green roof tops
Conclusion Canadian Tire Although a leader in retail is dangerously behind the trend with Eco-Friendly or Green retailing practices Concept Renewal should have green retailing as a key component. Our customers will expect it. Our planned 170+ projects for 2007 and beyond allow for a great opportunity to become a leader in environmental sustainability & green design
Conclusion Positive Perception Increased Loyalty Increased ROI Sustainable Practices Green Retailing Circle
Resources Market Place Websites Wal*Mart Hudson's Bay Corporation Home Depot Target Lowes Timberland Serve lululemon athletica Whole Foods Market Interface Flor