Innovation in the UK Retail Sector - Nesta

Innovation in the UK Retail Sector
• In terms of packaging and waste, data from the Environment Agency show that in
the UK the amount of retail waste increased from around 8.5 million tonnes in
1998/99 to 12.5 million tonnes in 2002/03. WRAP suggests that as much as 50% of
household waste, which ultimately ends up in landfill, has originated from a purchase
from the top 5 retail supermarket chains. Packaging and waste is a very visible aspect
of sustainable consumption and one over which consumers express most concern
(70% of global consumers expressed similar levels of concern about packaging
waste) 27 . This is one area in which innovative solutions by the retail sector have
abounded. For example, in relation to plastic carrier bag use, Waitrose has trialled
‘carrier bag free’ stores and checkouts; Tesco has pledged to reduce packaging by
25% and provide on-pack information on recyclability; Asda has committed to
reducing own label packaging by 25% over the next year, but only Netto have moved
beyond trials to charge for bags everywhere. Yet the evidence in relation to, for
example, in relation to plastic bag levies is still unclear (Lamb, 2005), tensions still
exist between commercial and environmental objectives and there is a lack of good
practice in non-foods where 1mn tons of textiles are thrown away each year.
• In relation to standards, BSI and the Carbon Trust’s draft product carbon
footprinting standard, just out for technical consultation, is hoped to provide a
reliable and consistent framework for sustainable product innovation by retail firms,
although product carbon footprinting is not without its challenges. Recently, Tesco
announced that it would work with the Trust to assess the carbon footprint of 30
own-brand products.
• In relation to skills, research by the Australian Greenhouse Office identified several
years ago that training of retail staff on the awareness of environmental issues so that
they were “equipped and motivated to handle customer questions” is key, for
example, to the development of innovative environmental systems that promote cocreated
recycling solutions. Work by the Resource Efficiency KTN has supported this
finding in the UK and the KTN has been working with SkillSmart Retail and the
Basingstoke College of Technology to develop a 1-day basic level environmental
awareness skills programme.
• Finally, the ‘horizontalisation’ of policy (to create an appropriate infrastructure for
sustainable innovation) is illustrated by the Department for Transport’s recent
consultation paper on a new low carbon transport infrastructure (Department for
Transport, 2007).
8.23 This is just a small snapshot of the widespread consultations, initiatives and projects in
relation to sustainability, all of which have complex and interlocking implications for the
retail sector. But what should be the priorities for retailers’ attention? Care must be taken
to avoid ‘initiative-itis’, which can risk adding to the uncertainty of retail firms, rather than
providing the kind of integrated, authoritative guidance that will provide the retail sector
with a framework within which it can pursue innovation with confidence. It is important
that the retail sector can have confidence in the long-term direction and integration of
Government policies on sustainability in order to secure the sector’s willing participation
in both projects and consultations.
27 AC Nielsen, 2007.
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