TAILIEUCHUNG - Moving Fast to a Cleaner CliMate: a manager’s guide

Some CG companies are fi nding an upstream approach works as well: using packaging and other in-store marketing promotions to drive consumers back online, where they can engage further with the brand. US-based Orabrush, for example, labels its tongue-cleaning products with “As Seen on YouTube” to fuel what the chief marketing offi cer, Jeffrey Harmon, calls “the engagement loop”. Viral videos drive consumers to retail outlets, which drive them back online to see more of Orabrush’s original video content, which increases awareness, engagement and loyalty. Consumers can purchase Orabrush products however they want—through retail outlets such as Wal-Mart. | A manager s guide How consumer goods companies can tackle climate change 1 CONTENTS The big picture Our approach across the value chain Seven steps to tackling climate change How it has worked for US 1 Engage 2 Measure 3 Prioritise 4 Define target and action plans I 5 Go alone or go together 6 Build in don t bolt on 7 Feedback and reward 2 4 8 10 13 14 16 18 22 24 26 47 Equals 5 x109 tonnes of carbon emissions. Estimate is based on Unilever s value chain CO2 equivalent emissions as a function of revenue. This ratio was extrapolated to the top 50 consumer goods companies worldwide across the entire value chain. The extrapolation is subject to different levels of carbon intensity across the value chain in different parts of the sector. Tonnes of carbon emissions emitted by the consumer goods sector each year1 The reduction in earnings consumer goods companies could face in the next decade if they don t respond to environmental pressures2 THE BIG PICTURE From ice cream to beverages from light bulbs to laundry detergent the consumer goods sector is large - over a trillion . dollars. Its supply chains often reach back into sensitive areas like agriculture and tropical rainforests and its products touch almost everyone on the planet. There are three compelling reasons why consumer goods companies should play their part alongside other industries in tackling climate change. First the sector contributes directly and indirectly to climate change through the sourcing or production of products and the way the products are used by consumers. Across the value chain we estimate that emissions in this sector could total as much as five billion tonnes of 5 billion Second the sector has a depth of expertise in understanding consumers and in inspiring them to change their behaviour. Insights into consumer needs offer the sector the opportunity to reach beyond its own production activities to help consumers mitigate climate change. Third the economic health of the consumer .

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