Sustainability Statement 1
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Untouched WorldTM finds its whole philosophy in a symbol representing a Maori kite; the emblem of an ideal relationship between man and nature. The kite is the outcome of an art involving natural materials and human skills. It symbolises a soaring freedom of the spirit. Cultures the world over have deep and intimate relationships with kites. According to many Maori tribal legends, kites in the shape of birds were used as an intermediary step between man and the gods. Specially made kites were used to prophesy the future, and omens were read from the kite’s movement in the air currents.
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Authors Note: This Sustainability Statement is the result of a considerable period of focused work, exploring the key sustainability issues which make up this detailed profile of Untouched WorldTM. It is at one level a snap-shot in time but also a template for continual improvement across the business and its relationship with key stakeholders. I would like to thank all who have contributed to this report, in particular Founder-CEO Peri Drysdale, for enabling these insights to be drawn and we look forward to further feedback from readers. I would also like to thank those peers in the sustainability field who have already shared their views in the front of this document. Dr Barry Law Director 360O Insight Copyright © Snowy Peak. The publication is copyright. No part may be reproduced by any process other than for the purpose of and subject to the provisions of the Copyright Act.
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Contents Who are we?
7
Business Systems and Accountability
8
What do we believe in? What do we strive for?
11
Systems Thinking Approach to Smart Business Practice
12
The Untouched WorldTM Journey
15
UNESCO (Education for Sustainable Development 2005-2015 - DESD)
17
Awards and Recognition
18
Untouched WorldTM Strategic Aspirations for our Planet and its People
20
Environmental Aspirations
22
Social Aspirations
24
Economic Aspirations and Commitment
27
Environmental Actions we have taken
28
Social Actions we have taken
36
Sustainability Staff Dinner
39
Children’s Christmas Party
41
Supply Chain Engagement Processes
46
Economic Actions we have taken
48
What drives our practice?
50
Framework for change
52
Community Education Programmes. Untouched WorldTM Charitable Trust 55 Clinton Global Initiative
56
Performance, Benefits and Impact
58
Our Contribution
60
Our People
62 5
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Who are we? Untouched WorldTM is a sustainable fashion and performance sportswear brand based on the New Zealand lifestyle. It grew out of a desire to create a positive, sustainable future. Social, cultural and environmental values are embedded deep within the DNA of Untouched WorldTM. We believe there is no need to give up quality, function and style to be good to the planet. We design without compromising performance and style.
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Business Systems and Accountability The governance model at Untouched WorldTM is viewed equally as a reporting structure and as an interconnecting web that relies on everybody functioning as a team. This approach to governance encourages innovation, responsibility and accountability. It also encourages individuals and specific management groups to communicate and work together, rather than work in isolated units. Keeping the web intact requires constant maintenance from everyone. Understanding and implementing a systems thinking approach toward sustainable practice has helped the business align management structures to model a connected approach to managing the business.
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STAINABILITY SU CEO
Marketing
Untouched WorldTM Retail and Marketing Operations Manager
Retail & Café Managers
Product Development Manager Performance Cycle Business
Advisory Board
Production
Sales
Sales
Ap
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Buying
Marketing les
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What do we believe in? What do we strive for? All life and systems on Earth are inter-related. Sustainability has several meanings, including:
to keep in existence; maintain
to supply with necessities or nourishment; provide for
to support from below; keep from falling or sinking
to support the spirits, vitality, or resolution; encourage
For us, sustainability is about all of these. It is about ensuring that the Earth’s resources are able to meet the needs of current generations and future generations. Our aspiration in business is to provide a platform for the human spirit to grow to its full potential. This platform is founded on environmental sustainability. We strive to use renewable resources, to reduce our energy, water and waste footprints to a level and rate that the planet can recycle and resupply these elements; and that meets the needs of future generations.
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Systems Thinking Approach to Smart Business Practice In our business we merge the social-cultural, environmental and economic aspects to better understand the inter-relationships and complexity of working toward sustainable practice. A systems thinking approach drives our business practice. A systems thinking approach focuses on the environment as the bedrock of business, and views ecological limits as a long term barrier toward economic growth. The underlying message is: “One must look after the environment to ensure social and economic benefits.” The major issue for business is the tension that exists between producing goods for profit, growth and expansion, at the expense of the environment, and in some cases people, thus increasing the potential for environmental degradation and poverty. At Untouched WorldTM staff are working hard to design the business to place more emphasis on an “environment first” approach. This outlook places high value on the Parliamentary Commissioners Office view, that “redesign must occur within ecological limits”, prioritising environmental protection.
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ir Fa e d Tra
e urc ent so Re gem f na go Ma din tan tion ers nd pta d U da an d A ge an led ge ow an Kn Ch Green Consumerism
Personal and Social Responsibility for Action
D Fa of istrib ir Re utio so urc n Un es Va de lue rsta a S s an ndin ust d A g C ain sp u ab irat ltura ion l le Fu Un tur s for de Kno e rsta wl nd edg ing e of and Bio div ers ity
Gr os sA Su sset sta V Pra ina alue cti ble of ce
Economic
t ou ey ab w th ge Ho led nd n ow s a Kn tem nctio ys fu os Ec
Social nd y a ss uit Eq airne F
ty ali Qu vs y tit an Qu
Life Ec Su olog pp ort ical Sy ste ms Le gis Co latio mp n lia and nc e
Environmental
Interdependence
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Time frame 1981 The establishment of Snowy Peak Ltd as a cottage
2000 Hosted Paul Hawken and Ray Anderson at
2007 Untouched WorldTM Charitable Trust executive
industry with 10 outworkers, knitters using natural fibres
Untouched World , subsequently invited to join the
Mark Prain worked with United Nations on sustainable
grown and made in New Zealand.
Redesigning Resources Group of eight organisations in
business policy development.
1984 500 outworkers, working with a number of local natural fibres including New Zealand mohair and New Zealand cashmere. 1985 Bought state of the art computerised knitting machine from Japan, moved business into leased
TM
New Zealand and Australia working together to pioneer a pathway for organisations to work on a sustainable basis. 2000 A senior employee from Landcare Research, and a member of the Redesigning Resources group
2008 Peri Drysdale presented/exhibited Untouched WorldTM at World Mid Decade Sustainability Conference in Bonn. 2008 Leading practitioner and thinker Dr Barry Law appointed as dedicated sustainability adviser to guide
premises, gradually brought production in house.
worked with us in the company one day a week helping
1992 Knitted first garment ever in possum blended with
business in becoming a Sustainable Company; in turn
2008 Peri Drysdale attended Clinton Global Initiative,
he gained insights into the real life challenges of being a
personal invitation from President Clinton.
wool. First new natural fibre in yarn for knitwear for over 200 years.
overcome barriers and provide tools to assist the
sustainable enterprise.
1995 Untouched WorldTM by Snowy Peak Biogrow Certified Collection launched, sold in New Zealand and Japan.
overcoming quality issues associated with a possum fibre as a recovered material. Technically too short and with variation from the wild. Much of this research done in Japan. 1998 Launched Untouched World
TM
as a broader, more
2009 Signed partnership agreement with
2002 First sustainability report published.
Clinton Global Initiative.
2002 First Untouched World Charitable Trust Programme
2009 Blumine Island project achieves predator
at Blumine Island, Marlborough Sounds.
1996 Launched MerinominkTM – after four years research
business practice.
2004 Joined organic exchange, CEO and Head Designer attended organic conference. 2004 Introduced patented mechanically processed bamboo fabric. 2005 Launched Certified Organic Cotton Collection.
free status. 2010 Clinton Global Initiative partnership programme developed for January 2011. 2010 The first knitting machine purchased, number one of its generation, was farewelled by the whole company. Subsequent machines now being replaced
2005 First Children’s Christmas party (see page 41),
by fourth generation machines that operate with
and Native Garden Café concept.
making the company cards from recovered materials.
minimal waste.
1998 Research and development for Untouched
2006 Launched certified organic merino mountainsilk
2010 Three pairs of Kiwi from Okarito programme
extensive New Zealand lifestyle brand. Opened first retail
WorldTM Charitable Trust– coalescing stakeholders
collections.
released on Blumine Island by Minister of Conservation,
around the philosophy of the business.
2007 Peri Drysdale and Dr Barry Law asked to present Untouched WorldTM and Untouched WorldTM Charitable
Chair (Peri Drysdale) accompanied by two alumni from
2000 Established Untouched WorldTM Charitable Trust Board.
Trust as one of 12 global exemplars of sustainable
2000 Whole staff from supervisor level up enagaged in
meeting in Bonn.
‘what does being a sustainable business mean for us?,
practice in business at United Nations convened
Kate Wilkinson and Untouched WorldTM Charitable Trust the Blumine programmes, a great outcome after eight years of work on the island.
what are our aspirations for the business?’.
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The Untouched WorldTM Journey... Our journey towards being a sustainable business started when the parent company of Untouched WorldTM, Snowy Peak Ltd, was established in 1981. Back then, as she does now, founder and CEO Peri Drysdale saw business as a vehicle to bring holistic prosperity to all stakeholders, present and future, including the local and global community. Peri wasn’t interested in building a business that was one dimensional, concerned only with financial outcomes. She knew that she couldn’t work towards a goal that wasn’t for the benefit of all. The journey to create Peri’s business vision is ongoing. The vision includes creating enduring products and services that have the most positive impact possible on the planet and its people directly and indirectly through the Untouched WorldTM Charitable Trust. Our progress along the journey was greatly enhanced by engaging with eight organisations in New Zealand and Australia in a pioneering Redesigning Resources process. The process enabled participating organisations to share information and work together to shift their practice over a four-year period. The outcome was a book describing the cross-sector pathway of each organisation to illustrate some signposts for others to follow on their pathway. In 2008 a further step was taken: a leading thinker in sustainable practice (Dr Barry Law) was appointed to work with and educate staff across the company. This report documents our thinking now, our strategies and where we have moved on our journey over the past decade.
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UNESCO (Education for Sustainable Development 2005-2015 - DESD) Untouched WorldTM is committed to working towards a sustainable future. In November 2007, Untouched WorldTM become the first fashion company in the world to be given permission by UNESCO to carry the United Nations Decade of Education for Sustainable Development (UN DESD) logo on its labelling-one of a small number of organisations internationally permitted to use it. The use of the logo is in recognition for the holistic decision-making approach taken by the company, which considers not only the environmental, but also the social, cultural and economic principles associated with sustainability. More specifically, Untouched WorldTM was recognised by UNESCO for its leadership in sustainability, collective and strategic visioning, sustainability auditing, product research and development, the ethical values that underpin the design process and for the educational programmes for youth leadership that all focus on ensuring sustainable resource use for future generations. The logo recognises the efforts of Untouched WorldTM and the Untouched WorldTM Charitable Trust in the area of education for sustainability.
“Untouched WorldTM is an outstanding example of a company that takes a holistic approach to business. They are implementing projects that are outstanding case studies for what is possible with sustainable business.” - Hayden Montgomerie, Acting Secretary General The New Zealand National Commission for UNESCO
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Awards and Recognition 1990 Business Excellence Award.
1999 President Clinton endorsed his
1992 Export Commendation presented by
Untouched World™ APEC leaders garment as
‘smartest of a large number of garments i’ve
been given in seven years of being President.’
Prime Minister Jim Bolger at opening of new
Snowy Peak Ltd premises.
1992 Founder/CEO made a Member of Order of
1999 CEO named one of 100 New Zealanders who
British Empire (MBE) for services to New Zealand
(Manufacturing and Export).
2002 Further endorsement of President Clinton’s
1995 New Zealand Way brand quality assessment
appreciation of garments when he returned to
personally shop at Untouched World™
1995 Official supplier of garments to state leaders in
Auckland in May.
New Zealand for CHOGM (22 Commonwealth
2002 Untouched World™ Auckland won top
Heads of Government).
Fashion Shop - Auckland in Top Shop Awards
2002 at the end of its first year in Auckland.
(highest score ever achieved at that time).
1998 Untouched World™ brand launched its flagship
store opened by Prime Minister Jenny Shipley.
1999 CEO presented keynote speech at welcome
2002 Gold medal print/package award. 2002 ‘Most Ethical Company’ award, runner up,
ceremony for SME (Small and Medium
Enterprise) APEC meeting held in Christchurch.
2002 CEO named New Zealand Businesswoman
1999 CEO presentation and panellist at APEC
Women’s leaders network meeting in Wellington.
1999 CEO at Untouched World™ restaurant hosted a
satellite link up of international speakers at
APEC breakfast.
1999 CEO presented at APEC Auckland business
symposium.
Deloitte Top 200 companies. of the Year.
2004 Best Retailer Award. 2005 CEO named New Zealander of the Year 2006 by
North & South magazine.
2006 Most innovative Retailer
(Auckland Top Shop awards).
2006 Winner Management/Deloitte Top 200
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made the most contribution to New Zealand.
Ethical Governance Award.
2007 CEO receives honorary doctorate in
Commerce from Lincoln University.
2007 The company becomes the first
fashion company in the world to
be given permission by UNESCO to
carry the United Nations Decade of
Education for Sustainable Development
Education (UN DESD) logo on its
labelling-one of only three corporate
entities internationally accredited.
2008 CEO winner of Supreme Award, 2008
World Class New Zealander Awards.
2008 CEO personally invited by President
Clinton to attend the 2008 Clinton Global
Initiative in Hong Kong, December 2008.
2009 Invited by UN to exhibit at Mid Decade
World Conference in Education for
Sustainable Development in Bonn.
2010 Minister of Conservation released first Kiwi
on Blumine Island since predator free
status achieved by students, teachers
and Doc staff involved in Untouched
World™ Charitable Trust programme.
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Untouched WorldTM Strategic Aspirations for our Planet and its People... Our aspiration is to ensure that we consider the environmental, social/cultural and economic impacts of our actions and how they affect all stakeholders on the planet. Five strategic aspirations underpin the Untouched WorldTM business approach. They are supported by 22 additional aspirations and 1 commitment that addresses specific environmental, social /cultural and economic outcomes/ objectives aligned to sustainable practice.
Environment 1. to minimise overall energy use and work towards the use of clean renewable energy 2. to avoid over harvesting and contamination of all natural resources
Social/Cultural 3. to ensure that the business and supply chain process directly and indirectly has a positive impact
socially, culturally, environmentally and economically for all stakeholders
4. to lead our sector as a responsible and sustainable organisation
Economic 5. to be financially sustainable Transparent reporting (pp 28-57) addresses what we have achieved under each set of outcomes (environmental, social/cultural and economic). There are a number of key initiatives that we have not mentioned. Once these initiatives are completed they will allow us to report in greater detail in our next sustainability statement. Currently we feel these ‘undisclosed initiatives’ are not yet sufficiently advanced to demonstrate clear outcomes. They highlight were we would like to be, not what we have achieved.
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Environmental Aspirations The role of Untouched WorldTM in business is to ensure that resources are used wisely, that we constantly improve our footprint and protect biodiversity. We recognise that we have only one planet and we need to protect it to ensure resources for future generations.
Workplace Change and Planet Footprint 1. to increase environmental monitoring to determine the extent of the business footprint 2. to minimise the waste, energy and water footprint of Untouched WorldTM 3. to make the most positive impact on biodiversity
Product 4. to maximise the use of renewable natural materials to produce quality products
Specific Water Objective: We seek to optimise water use, reducing volumes used and contamination. 5. to monitor and minimise overall clean water draw off, including where possible downcycling and recycling. 6. to avoid contamination of water with toxic substances 7. to work with suppliers who already have a strategy in place to achieve, cleaner water exiting their
processing operation than entering their operation
8. to ensure we are not purchasing from organisations that have processes that contaminate water supplies
endangering the health of local populations
9. to raise the health and wellbeing of current and future generations by teaching comprehensive water
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awareness programmes (WaterWise) through our Untouched WorldTM Charitable Trust projects for youth
We have committed to monitoring and implementing water reduction technique in our Christchurch-based production facility and head office, as well as working with our suppliers. We are also committed to raising the health and wellbeing of current and future generations by teaching comprehensive water awareness programmes (WaterWise) through our Untouched WorldTM Charitable Trust projects for youth. Through designing and initiating such programmes, young people will have the chance to examine their own water use and implement a range of options for reducing their footprint. The practical work of our Clinton Global Initiative partnership WaterWise programme will focus on water as a resource for present and future generations.
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Social Aspirations People deserve a fair return (pay) for their goods and services. Untouched WorldTM is committed to social justice, fair trade, no child labour and working conditions that meet or better internationally approved standards. Furthermore, Untouched WorldTM seeks to provide every human being involved in the creation of its brand and products, the opportunity to individually reach their full potential.
People 10. to be socially responsible for future generations 11. to encourage staff to make healthy lifestyle choices that consider the environment
Process and Practice 12. to continually refine and implement a long-term vision for the company that integrates sustainable practice 13. to continually integrate sustainable practice into the operational, organisational and workplace environment 14. to create a culture and work environment that is based on sustainable practice 15. to advance our core strength in research and design that supports the sustainable practices agenda. 16. to increase Untouched WorldTM transparency in regard to the compliance and monitoring associated with sustainable practice
Product 17. to create products and services that demonstrate transparency, focus on fair trade and enhance quality of life
Partnerships 18. to align supply chain practice to sustainability aspirations 19. to develop partnerships with like-minded supply chains
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25
26
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Economic Aspirations and Commitment At Untouched WorldTM, sustainability is viewed as a smart strategic economic move rather than a nice thing to do. We believe that business can only be conducted if we ensure the long-term health of our planet. 20. to contribute as much as possible to the economy by using local products and services, and at the same
time provide value to our global suppliers and customers
Profit 21. to reduce Untouched WorldTM supply chain cost through sustainability efficiencies 22. to increase revenue through sales, modelling a sustainability brand
Commitment 1.
to provide 1% of sales to fund Untouched WorldTM Charitable Trust activities
Untouched WorldTM is a privately owned company and financial information is private property. Investment has been made to further increase the level of sustainable practice in the business. As a result both costs and savings have occurred in achieving this outcome. Examples of cost saving have been identified on page 48 in percentage figures based on historical expenditure.
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Environmental Actions we have taken Workplace Change and Planet Footprint Right House Energy audit completed to support in-house monitoring. This process has helped determine energy use and identification of areas where possible savings (environmental and social) can be achieved. Full Circle cardboard recycling stations established, 2008. Recycled card take-out coffee cups with Ingeo lids and brown recycled paper table coverings reduce water use in washing. Recycling stations set up company-wide. Reduced waste to landfill by a further 28% in 2009-10, plus increase in recovered materials to 84%. Laundry product re-formulated to meet Untouched WorldTM goals and objectives. Implemented a Bokashi system for all food waste. Bokashi system liquid is used by staff on their own vegetable gardens. Paper covers on table clothes reduce laundering. Long wash cycle for garments reprogrammed and reduced by 15 minutes per garment to save energy and water. Water is metered. A break in pipes underground identified, stopped waste of 370,000 litres of water per week. Blackboard menus introduced in restaurant to replace paper menus. In the last three months at time of this report we have reduced paper use by 3.62% based on our 2008 practice. Full recycled paper toilet tissue and hand towel product used in all toilets. Reusable, biodegradable woven bags made from pre-consumer waste fabrics, to protect garments shipped by mail to customers from web orders. Eco Store cleaning and toilet products used to reduce impact on biodiversity. Organic cotton and bamboo along with organic merino yarn are used in our garments. Recycled buttons and fusing are used in our garments.
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Informative Process A ‘measure to manage’ process has been implemented at Untouched WorldTM to assist with the decision making process but also to provide greater transparency for our customers, stakeholders and suppliers. The data provided outlines our impact and ongoing shift in our practice over the last two years.
96% Yarn Organic Waste
CCC Kerbside
95%
re-filling
30
Glass Aluminium
CCC Kerbside Recovery
99%
Other Waste
Landfill
12-15% of all purchased product
Total Paper Use
3300
3200
A 4.26% saving for gas
3150
3100
3050
reems of paper
3250
550
500 000
500
490 000
450
480 000
400
470 000
350
A 3.62%
300
saving for
250
paper
200
460 000
410 000
50
400 000
2009
2010
electricity
430 000
100
2008
saving for
440 000
420 000
2009 -10
A 2.39%
450 000
150
3000
2008-09 Cubic Meters
Electricity Use
kilowatt hours used
GAS - Cubic Metres
2008
2009
2010
Water Use Water monitoring and efficiency is a major 550
environmental aspiration for Untouched
500
WorldTM. Both internal and external reviews
cubic meters used
450
of water use and monitoring have been
400
carried out by our sustainability consultant
350
and Target Sustainability.
300 250
Monitoring in 2008 identified a high use of
A 85%
200
water. Testing with ultrasonic equipment
saving for
150
detected a water leak under the building.
water
100
As a result we have reduced our water use
50
2008
2009
2010
by 85%.
31 31
Informative Process In the areas related to our overall energy use we can state that we have and reduced our overall petrol /diesel consumption in company cars, our electricity, water and gas use, paper and waste to landfill. However, in 2009-10 we increased our air travel from 2008-09 figures. As a result our use of taxis was also higher, as we continue to grow the business. We will continue to review our performance related to total energy use in 2010 and explore ways to further align what we do towards our sustainability aspirations. A comprehensive effort is made in recovering materials for reuse, recycling and re-design. Internal reviews and efficiencies have been supported by third party verification. We are currently engaged in an external case study with Target Sustainability in Christchurch.
Waste and Recovered Materials 2008-2009
Waste and Recovered Materials 2009-2010 Tonnes to Landfill 2.6
Tonnes to Landfill 7.06 Tonnes Recovered 9.2
Tonnes Recovered 13.66
49% of current 2.6 tonnes to landfill is non-recycleable textiles. Further 28% shift in practice from landfill to recovered materials. 84% free from landfill.
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Becon Recovery System
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Product Our passion for sustainable design flows through every element of our collections, from our buttons, to our textiles, to where and how we produce each and every garment. We are focussed on building transparency in our sourcing and fair trade manufacturing initiatives. What we’re making the most of:
What we’re getting rid of:
versatility
contaminants and pollutants
durability
excess water use
the ability to re-use and recycle
adverse effects on biodiversity
minimising the environmental impact per wear of clothing Post-consumer garment care can have a high environmental impact. Almost all Untouched WorldTM garments are washable. Furthermore, Untouched WorldTM signature fabrics and yarns require less laundering. Nature is a great inspiration to us, having already created clever solutions for comfort and survival in extreme environments. Taking her raw materials, we apply our own technology to create high performance, sustainable luxury fabrics such as our Organic MountainsilkTM. .
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Social Actions we have taken People Professional development programme for staff to communicate the business sustainability aspirations. Staff sustainabilitiy dinner established as a team exercise to create a community of interest in modelling sustainable practice. A range of ongoing support for employees’ training needs, both internal and external. Each year a children’s christmas party is organised by the sales staff to make Christmas cards using a range of recycled and re-used materials.
Process and Practice Company water and energy policy and strategic action refined and implemented 2009. In house water, electricity, gas and waste audits completed 2008 and ongoing monitoring 2009. Third party verification of water, waste and energy audits 2008-9. Courier service review completed in 2008 to explore and implement greater efficiency. Raw materials list identified. Product pathway implemented to explore the cradle to gate process of yarns and fabric. Implementation of a dry waste recovery system at manufacturing and retail sites that reduces 85% of waste to landfill. Review of all health and safety systems. Implementing a lean business approach to assist operational practice and develop quality systems. Researching new materials and design to improve our efficiency and reduce our environmental impacts.
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Work Place Profile 2009-2010
Culture 2009-2010 Full Time Permanent
European
Part Time Permanent
Asian
Casual
Pacific/Maori South American South African
Staff Retention and Leave 2008-2009
2009-2010
1
Total number of staff (includes all permanent, part-time and casual roles for each year
84
104
2
Females in Senior Positions
6
6
3
Males in Senior Positions
4
Employee Turn-Over Rate
5
6
7
7
Factory
no data
17.54%
*Retail
no data
29.82%
*Cafe
no data
26.31%
Includes design, administration, sales, IT & marketing
Admin
no data
7.01%
Includes a number of part-time and casual positions
*Others
no data
19.25%
Sick Days per Employee No. Staff involved in sustainable practice professional development (internal & external
2010 to date
6
At Untouched WorldTM there is a high percentage
120
7
of young female staff.
100
People on Staff
People
The business offers flexible employment above what
80
is legally required for 60
maternity leave, so that new mothers can balance
40 3.14 Days
employment and family.
3.23 Days
20 50
46
Female
62
Male
0
*includes university holiday workers in peak season.
2008
2009
37
38
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Sustainability Staff Dinner Staff professional development in sustainable practice has involved face-to-face training sessions in small groups for factory staff, individual support for staff involved in specific projects, senior management team training, retail staff training and whole company activities to model sustainable practice. The annual staff sustainability dinner is a great initiative and involves staff from across the business participating in teams to provide a dinner for between 50-60 people. Teams must consider the environmental, social and economic implications of their purchase, preparation and waste. This is a highly entertaining evening that recognises and respects a range of cultural practice, requires collaboration and encourages staff to think about sustainable practice both within and beyond the business. Key food themes for the 2010 sustainability dinner included “The Best of Asia”, “Kiwiana” and “Australia Fare”. The Untouched World restaurant is transformed for the evening with the chef and manager on hand to provide support and encouragement.
“It was good to understand why we make certain choices...but above all I was pleased to see people from different departments working and thinking as ONE” - Amit Had a ball! Great food, great company - enjoyed every moment, what a neat way to learn more about sustainability! - Fi
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Children’s Christmas Party... The Children’s Christmas Party involves children associated with the company. Sons, daughters, nieces, nephews, grandchildren and friends, with local schools now involved-getting together for a fun day, hand making the company Christmas cards, using recycled card and scrap materials from production. The money the company saves on Christmas cards is donated to the fund the children use to buy beautiful sustainable wooden toys made by special needs workers for other not so fortunate children at Christmas time. All time for developing and managing this project is donated by staff.
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Products
Policy Related to Sustainable Practice Policy
Completed, Implemented
1
Strategic alignment of business goals with sustainability aspirations
Completed
2
Water Policy
Completed
3
Energy Policy
Completed
4
Product Pathway Process
Implementation
5
Lean Business Systems
Implementation
6
Health and Safety Review
Completed and on-going Implementation
7
Ethical Procurement Guidelines
Completed and on-going Implementation
8
Sustainability Reporting Process
Implementation
9
Life Cycle Analysis Product
Implementation underway
Recovered Materials Strategy
Implemented and on-going
Progress has been made in implementing GOTS certified organic cotton, Biogro certified organic merino, sustainably farmed merino, patented chemical-free mechanically processed bamboo fabric, recycled fusing, recycled cotton buttons, nut buttons and organic cotton back sew in labels. Significant progress has been made in the New Zealand farming community regarding the merits of organic farming. It is still a small number, but more farms are converting to organic. Certified organic cotton is more freely available in a wider range of materials, and fabrics have been developed for performance sportswear, where adding a thin recycled polyester skin in a specific way to our MountainsilkTM has created a fabric that is superior, performance-wise to anything else on the market.
Partnerships Policy established for reviewing partnerships with supply chains.
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Third Party Verification 2008-2010 Policy
Who
1
Water
Target Sustainability
2
Electricity
Righthouse
3
Waste
Target Sustainability
4
Organic Yarn, Organic Fabric
GOTS, Biogro NZ ZQuie Certified
5
Sustainability Process
Dr Barry Law
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Supply Chains and Stakeholder Agreement We have stepped up our actions to ensure that all our major suppliers of product, material and service align their with Untouched WorldTM’s sustainable practice aspirations. By harnessing the collective knowledge and skills of both national and international supply chains, we will reduce our impact on the planet. Collaborating, listening and working with our employees, local community, customers, suppliers and stakeholders has been a central aspect of the Untouched WorldTM approach to corporate social responsibility. A commitment to work with supply chain partners and organisations that share our vision and approach towards sustainability. The shared vision is built around a collaborative partnership that allows Untouched WorldTM to influence change and also be influenced, by working with supply chains/organisations to ensure greater social responsibility. New supply chains that approach Untouched WorldTM are asked to participate in a partnership review process to help us determine the extent of the relationship and the benefit or risk towards the company’s sustainability aspirations and values.
Considering each partnership relationship includes : How does the partnership relationship contribute to the sustainable practices/values of our business? What are the limitations of risk in becoming involved with this client/business? How does the partner client meet Untouched WorldTM aspirations and objectives? What ongoing support mechanism is in place to keep this partnership relationship positive long-term and to assist the environmental, social, political and economic change process? What specific client contribution is provided to advance the business process? What is the expected contribution of Untouched WorldTM in this partnership and how does that affect our broader sustainability aspirations? 44
International Supply Chain We have an extensive organic cotton and merino sourcing programme. We are focused on ensuring there is transparency in our sourcing and fair trade manufacturing supply chains. Suppliers from a range of countries are used to source product that meets the high standards required by the business. The product pathway project, currently being developed at Untouched WorldTM, focuses on the pathway of raw materials through transport, manufacturing, delivery, further manufacturing and delivery to enlighten the business about the full extent of their global footprint and specific impacts.
New Zealand & Overseas Garment Manufacturing
New Zealand China India
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Supply Chain Engagement Processes There has been a long history of supply chain and stakeholder engagement with the business. Economic, social and environmental issues related to products and service have become an increasing aspect of this engagement over more recent years. Feedback from customers and suppliers is viewed as critically important in supporting change and verifying product disclosure statements.
Policy Related to Sustainable Practice
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2008-2010 Type
Process
Sustainable Practice Example
Online feedback
Web-based feedback from customers. Dedicated role responsible for monitoring and disseminating feedback to the appropriate person in the business
Feedback from customers on paper use, prompting a review of printed material. Feedback on new seasons designs and support for sustainability journey.
Formal meetings
Face-to-face discussion with supply chain and stakeholders
Carter Holt Harvey (Full Circle recovery) Courier Companyies x 5 (Review Process) Target Sustainability (Third party verification) CCC
Email, fax and phone
Regular feedback and communication with supply chain, stakeholders and customers.
Wide range of suppliers contact on a daily basis.
Visits to supply chain
National and international
Beacon Recovered Materials (landfill and recovered materials) The Textile Recovery Centre (Yarn recovery), China (manufacturing site)
Face to face informal communication
Information sheets used by retail staff to address questions from customers. Recording sheet used to identify key questions and issues from customers
Many international customers ask specific questions about Untouched WorldTM approach. Monitoring this process helps us address concerns and pass on positive feedback to inform decisions.
Online - Web portal review
Review of stakeholder commitment towards sustainable practice based on online data. Information gathering process.
Top 10 supply chains online review. Identification of social, environmental and economic commitment towards sustainable practice. Alignment with Untouched WorldTM aspirations.
Organic cotton manufacturer - India. Lammermoor Station, situated near the Paerua Valley in southern New Zealand - Organic Merino.
Beacon - Recovered materials company Christchurch. Carter Holt Harvey Fullcircle Recycling Suppliers of cardboard, plastic and paper recycling services.
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Economic Actions we have taken Procurement Purchasing policies for products and services developed and implemented to make sure that sustainability aspirations and objectives are considered when buying products and services across the business. Sustainability advisor employed one day a week to provide guidance, implement new approach and enhance staff capability.
Profit Full Circle cardboard recycle process 23% cost saving off cardboard repurchasing. All merino wool waste now recycled by textile recovery. Income generation per kilo for 100% wool and 95% wool. New products have been created out of recovered wool waste and discontinued lines, creating new income. 30% cost saving on overall waste disposal, due to efficient re-use and recycling process. 84% cost saving on restaurant waste due to merged waste disposal with factory. 76% cost saving on green bathroom products limiting footprint and waste. 10% cost saving on cleaning products by switching to green supplier. 10% cost saving on international courier services after supply chain review. 11% cost saving on green garment wash product. Water 8K saving per year on excess water changes due to the discovery of a major water leak during audit. Reduced kilowatt hours 2009 to 2010, 11355 kwh saving approximately 2.39% of energy costs. 4.26% reduction in gas costs in Christchurch, Head Office. 6% saving in total yarn costs in 2009-10 due to new whole garment machines. 66% saving in laundry liquid use per 4kg load in washing machines.
Charitable Contributions Untouched WorldTM Charitable Trust receives 1% of sales to promote youth leadership in sustainable practice. 48
Full garment knitting machines introduced in 2010 have reduced waste and recovered yarn, transport, energy and time as the business reduces a cut (waste) and sew (labour) model to keep the business competitive.
Manufacturing yarn waste and recovery Revenue from recovered yarn has increased to approximately 4% in 2010, and will increase by a further 3% by 2011 meeting environmental, social and economic aspirations. Reduced waste creates a higher product yield (94% in 2010 and approximately 97% in 2011) from purchased yarn, saving between 5-7% of total yarn cost. “Manufacturing waste from knitting machines in 2007 was 1.96%; in 2008% it was 1.026%. At the beginning of 2010 it has been reduced to 0.9% waste. Purchased cones of yarn left over from product runs are now used in full garment machine process to make small items. This process will reduce waste to 1% of purchased yarn and increase revenue per cone.” - Michael Stewart
Yarn Purchased 2008-2009 Yarn Waste 10%
Yarn Used 90%
Merino Possum Head Warmers
Yarn Purchased 2010
Yarn Projection 2011 Yarn Waste 3%
Yarn Waste 6%
Yarn Used 96%
*Recovered materials from cut and sew process
Yarn Used 97%
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What drives our Practice? An interwoven framework is used to convey the extent of the Untouched WorldTM commitment towards sustainable practice. Sustainable practice is not viewed as a stand-alone concept that supports the business, but as an integral interconnected part of the business DNA. The DNA model is underpinned by a shift in thinking (awareness, understanding and responsibility) and a shift in action (exploration, experimentation and implementation) through all dimensions of the business process. Interconnected thinking and action across the business provide a platform for innovation, change and new ways of doing things.
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Framework for Change... Unlocking the business potential requires an alignment between the way we think and how we act (practice). At Untouched WorldTM the aim is to achieve greater efficiency, less environmental impact and better conditions for supply chains. The change process is based on shifting thinking and behaviour through practical experience and improving workplace practice. While continuing to make use of general sustainability indicator frameworks, the Untouched WorldTM model goes beyond a mechanistic approach and uses a range of tools that have been customised to suit the company’s aspirations. This approach focuses on how the company addresses the social, economic and environmental implications of sustainability. Customised tools are used to gather data, guide practice and identify risks and opportunities. The Untouched WorldTM approach to sustainability is an inclusive process that engages staff in different parts of the company, both individually and collectively to unlock the business potential.
Risk Management Risk assessment and management is a critical aspect of the Untouched WorldTM approach to sustainable practice and considers environmental (ecological limits) social (risk to brand, social justice, responsibility and compliance) and economic (financial viability) factors. The tension for the business is balancing and maintaining financial bottom line outcomes while trying to redesign the business model and practice towards an ‘environment first’ systems thinking approach. Risk analysis forms have been developed to review stakeholder and supply chain partnerships, and review specific issues that have the potential to take the business away from its core aspirations (also see stakeholder partnership process). Working with our customers, suppliers and stakeholders is essential if the business is to achieve its sustainable practice aspirations.
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A shift in Thinking
CEO Commitment Driving Change CEO Vision and Aspirations
Sustainability Advisor Guiding Practice
Education Focus Workplace Collaboration
Breaking New Ground
Working Beyond Skilful Compliance Communication A Shift in Thinking
Identifying Risks Establishing and Impacts and Embedding New Opportunity Behaviour
Sharing What We Do
Learning Together and Harnessing Collective Knowledge
Reinforcing Brand Aspirations, Beliefs and Needs
Developing New Partnerships
A shift in Practice
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Community Education Programmes Untouched WorldTM Charitable Trust An important question for Untouched WorldTM to answer was: ‘What difference could be made with the profits of the company that couldn’t be done through the business alone?’ The result has been the set up and funding of the Untouched WorldTM Charitable Trust through company profits. The corporate board and Charitable Trust board cooperate closely to align the sustainability aspirations of both organisations. As a result both organisations mutually benefit and reinforce each other. The more successful the company is, the more funding can be provided to the Charitable Trust.
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Clinton Global Initiative Untouched WorldTM Charitable Trust has partnered with the Clinton Global Initiative and is currently working closely to implement the following commitment: We commit to raising the health and wellbeing of the current and future generations by teaching comprehensive awereness programmes for society to use as basic templates for building a better world. Through designing and initiating such programmes, current problems will be solved and future unnecessary ones will be prevented. The practical work on our CGI partnership Water Wise programme will focus on water as a resource for present and future generations.”
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Performance, Benefits and Impact Sustainable practice at Untouched WorldTM is both an action and a process. The staff education process has created an appetite for change, and has shifted thinking. Staff have been encouraged to explore new ways of working and ‘walk the talk’. Attracting new talent is a positive outcome when business practice aligns itself to a high level of corporate responsibility. Actions have led to new behaviour and new ways of conducting business. Recovering materials, reducing landfill waste, water conservation and working to reduce energy use have all improved our environmental footprint. Designing quality products with minimal environmental impact and placing higher expectations on suppliers encourages greater alignment with our sustainability aspirations. Improved performance has led to increased stakeholder relationships and a positive feel good factor attached to the brand. As a result the company was not adversely affected by the economic downturn in 2009, driven by the values, priorities and change that underpin the sustainable practice agenda.
Inclusive partnerships Stakeholder partnerships, supply chain reviews and customer feedback are all key aspects of the Untouched WorldTM sustainable practice journey. Regular interaction with suppliers, stakeholders and customers allows Untouched WorldTM to address issues and opportunities quickly. Constant feedback, innovation and challenge from staff provide a fertile environment for change, re-design and integration of new practice.
Informative process Untouched WorldTM has spent the last two years reviewing data and introducing new data collection processes to further ensure sustainable practice is interwoven through the business model. Data is used in a ‘measure to manage’ model to inform decisions and actions.
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Responsibility Untouched WorldTM has developed a range of policies, standards and guidelines to inform its sustainability journey. Third party verification has helped inform these documents. Implementation of new standards and guidelines is
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A brief snapshot of environmental, social/cultural and economic benefits and impacts identified. This provides a broad overview and builds on what we have done. 59
Our Contribution The biggest contribution this business can make to a positive sustainable future is to design clothes and products that reduce our impact on the environment, and in doing so, contribute positively to the people engaged in producing the garments and products. We can do this by making garments that deliver more wears for our customers. The process of creating a garment and delivering it to market has an environmental impact, regardless of what it is made from. From raw material through production to grave and point of sale, the environmental impact of a garment is minimised over the number of wears. We create garments that deliver more wears by using fabrics that hold their shape, colour and general quality over many wears. We design contemporary classic designs with a unique edge that transcends fashion-creating wardrobes. They are versatile, fewer pieces are worn more often. We reduce the environmental impact throughout the creation of each garment by: using organic and sustainably produced fibres up-cycling; recycling and closed system processing creating, where possible, fabrics and garments that need less washing; are washable and easily dried considering the end of life of the garment, a complex consideration to minimise the garment ending up in landfill and to optimise post-life environmental impact considering shipping and packaging impacts
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However, we have found that what seems, at a glance, to be a more sustainable option often creates other issues when we examine the full life-cycle process. We are constantly checking out new ideas and exploring advances in technology that will assist us to optimise our overall impact. The complexity of sustainable practice requires an in-depth examination of the business and how we do things. This process takes time, effort and energy to implement and requires us to really reconsider how we do things. However, the environmental, social and economic outcomes outlined in this report have definitely been worthwhile. We have continued to reduce our impact, and we have changed the way we do things. We still have things to work on and we are always keen to hear about new or better solutions to operate within ecological limits.
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Our People... Our people are innovative, collaborative, care for the planet and are prepared to make a difference. Here’s what they have to say...
“Sustainability dinner was the best professional development exercise I have ever been on. Great fun and learnt heaps!” - Marion
“Nice environment, supportive team and good work ethics. This job has opened my eyes up to sustainability and what it means!” - Amit
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“The atmosphere, friendly people and working in a good cafe, with high quality food, is fun, I really like the garden and natural environment. It is good to see the cafe team working towards sustainable practice.” - Donna
I enjoy wearing the company's clothing brands because they last. Some staff place items on lay by and pay them off because they know the quality of the product. -Fiona
The friendship, fun and support for staff in the factory is the main reason I enjoy working here. -Dennis
People in the factory get a buzz out of being creative and innovative in reducing yarn and fabric waste. It has become a challenge for some people. -Margaret
Everyone gets a card on their birthday and business success is celebrated with staff on a weekly basis. - Jill 63
Peer Reviews of this Document The honest truth for most companies is that sustainable development remains an add-on. To remotely meet the challenges we face today, UK Sustainable Development Commission Chair, Jonathan Porritt, suggested sustainable development needed to be not left on the fringes but put at the heart of things - it needed to become the central organising principle underpinning all our lives. Reading Untouched World's Sustainability Statement, it is clear environmental sustainability resides at their heart. They understand the need for change at their core. A rare endeavour indeed, and as they make great strides to make sustainable development their key organising principle, they offer a genuine beacon of hope to others. Markus J. Milne, Professor of Accounting, College of Business and Economics, University of Canterbury
“Corporate reporting on sustainable best practice varies widely - most in terms of what constitutes ‘best practice’. Accepting that, at day’s end the best reportage is about authenticity and integrity in the marriage between a company’s values and how those values are expressed in the daily practicalities of the journey (as Ray Anderson puts it), up the many faces of ‘Mt. Sustainability’. Untouched World has very high aspirations and it has been a privilege for me personally to play a small, ongoing role in their formation and execution. But although it’s ‘been hard at it’ for over 10 years, and has received a plethora of accolades along the way, UW is not (yet) a perfect show-case for best practice, no one is. This report demonstrates that fact with a high degree of transparency - which should be applauded. Therein lies the essence of both the company’s internal value proposition and its value-add to those externally who may want to join the journey.” Mark Prain, Executive Director, Hillary Institute of International Leadership
“Applying a systems concept such as sustainable development at the organisational level provides a significant challenge. It is good to see organisations like Untouched World trying to grapple with these issues. I particularly appreciated their acknowledgement of issues such as accountability, social justice and the limits to growth which are ignored in many corporate social and environmental reports. I look forward to watching the ways Untouched 64
World continue to develop reporting of their performance against their economic, social and environmental aspirations. In terms of transparent reporting, I would encourage them to think about reporting on targets against which future performance might be assessed (e.g. reduction of ecological footprint, workplace diversity, fair trade wage and supplier payments, occupational safety and health) and engaging their various stakeholding communities in these endeavours. This might help to further illustrate some of the tensions Untouched World recognizes for business in the sustainability concept. Too often, corporates gloss over these in pursuit of a ‘business case’ approach to sustainability which focuses on simple win-wins.” Judy Brown, Professor of Accounting, School of Accounting and Commercial Law, Victoria University of Wellington
‘There is an ancient Chinese saying that ‘when the winds of change blow, some build walls while others build windmills’. There is a storm, rather than a gentle wind, blowing at the current time regarding the need to change the ways in which we treat planet earth. Part of this involves the need to achieve sustainable development, which involves a balanced blending of the natural, economic and social environments. This is a major global concern and challenge for all individuals, communities and societies, regardless of whether they are in developed or developing countries. The challenges are far too large and important to be left just to Governments to handle. Success will only be achieved through effective partnerships between individuals and groups in civil society, various levels of government and, in particular, by fully involving the business sector. In this regard Untouched World New Zealand is a very positive role model for the corporate sector. It is a powerful, giant ‘windmill’ on the New Zealand and world landscape that is addressing the challenge of sustainable development head on, by turning environmental sustainability problems and challenges into opportunities for the betterment of our planet and humankind.’ Professor Rupert Maclean, former Director, UNESCO-UNEVOC International Centre for Education, Bonn, Germany; currently Chair Professor of International Education and Director of the Centre for Lifelong Learning Research and Development, the Hong Kong Institute of Education
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Untouched Worldtm Retail Stores Auckland: 20 High Street, Auckland, Ph 09 303 1382 Wellington: 147 Featherston Street, Wellington, Ph 04 473 2596 Christchurch Flagship Store: 155 Roydvale Avenue, Christchurch, Ph 03 357 9399 Christchurch Downtown Store: 301 Montreal Street, Christchurch, Ph 03 962 6551 Queenstown Store: Eichardts Building, The Mall, Queenstown, Ph 03 442 4992 Worldwide Online Sales: www.untouchedworld.com www.untouchedworld.com
