DDi - October 2013 - (Page 12)

12 | Newsworthy | Sustainability Marks & Spencer’s Plan A (because there is no Plan B) D Photos: Courtesy of Marks & Spencer espite a challenging economic climate that has contributed to eight straight quarters of decline in the fashion categories of its business and overall declines in profitability, U.K. department store retailer Marks & Spencer says it is committed to sticking with its “Plan A,” a corporate social responsibility (CSR) platform considered to be the most comprehensive of any major retailer anywhere in the world. The program came about in 2007, after thenchief executive Sir Stuart Rose read Al Gore’s “An Inconvenient Truth” and decided his business should take a leadership position around environmental and social responsibility—believing a sustainable business could be a profitable one and also because “there’s no Plan B for our planet.” Starting with a 100-point, five-year plan, estimated at the time to cost $350 million to implement, Plan A has since expanded to include 180 commitments to be achieved by 2015, covering everything from the working conditions of factories that supply the company to emissions, recycling, facilities management and even a program called “Schwop” that encourages customers to donate used clothing to benefit local charities. The results are impressive: • Since the program’s inception, the company’s emissions have been reduced 23 percent and net CO2 emissions from operations in the U.K. and Republic of Ireland are zero. • M&S stores, offices and warehouses sent no waste to landfills last year and achieved a 28 percent reduction in their volumes of waste overall. • Since 2010, the company has provided training and education around health, employee rights and financial literacy to 244,000 workers in its supply chain in India, Sri Lanka, Cambodia, Bangladesh and China. • Fifty percent of products sold—more than a billion last year—have a Plan A eco or ethical quality, such as being Fairtrade, carbon neutral, made from sustainable materials or delivering health benefits to the consumer. • Through successful customer engagement, 3.8 million garments were donated last year through the Schwop program, contributing more than $4 million to charity. • The net benefit of Plan A to the business is up 29 percent year over year and is credited with adding almost $210 million for reinvestment in the last 12 months alone. While the company clearly is hitting high notes in performance and accolades, it already has delivered on 139 of its 180 commitments and earned more than 150 sustainability awards in the process. A compelling aspect of Marks & Spencer’s strategy comes from the fact that Plan A isn’t just about delivering value through its own operations, but instead also looks to deliver results by recruiting the help of everyone connected to the business, both customers and suppliers alike. While other department store retailers have made CSR programs part of their overall plan, few have made it as visible as Marks & Spencer. In recent interviews, current CEO Marc Bolland claims his company avoided scandals (such as tainted horse meat found in competitors’ food products and the Rana Plaza factory collapse in Bangladesh) because of how entrenched Plan A’s operating principles are within the business, something he claims is generating significant trust with customers. Ultimately, Plan A is an example that profit and social conscience aren’t mutually exclusive, and, in fact, form a strategy worth considering given the growing awareness consumers have around their purchase decisions and the values of those companies they choose to spend their money with. —ROBERT HOCKING | October 2013

Table of Contents for the Digital Edition of DDi - October 2013

DDi - October 2013
Contents
From the Editor
Newsworthy
Shopper Insights
Editor’s Choice
Design Snapshot
Restoration Hardware (RH)
Converse
American Express
State of the Retail Design Industry 2013
Right Light
In-Store Technology
Product Spotlight
Calendar
Advertisers
Classifieds

DDi - October 2013