Innovation in the UK Retail Sector - Nesta
Innovation in the UK Retail Sector - Nesta
Innovation in the UK Retail Sector - Nesta
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Recommendation 3:<br />
Promote <strong>in</strong>novation <strong>in</strong> susta<strong>in</strong>ability.<br />
<strong>Innovation</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong> <strong>Retail</strong> <strong>Sector</strong><br />
Desired outcomes: The reduction of risk for retailers <strong>in</strong>novat<strong>in</strong>g <strong>in</strong> susta<strong>in</strong>ability through <strong>the</strong> application of<br />
a mean<strong>in</strong>gful susta<strong>in</strong>ability framework, hard measures of performance aga<strong>in</strong>st this<br />
framework, and prioritisation of fund<strong>in</strong>g support and advice to <strong>the</strong> retail sector to<br />
stimulate appropriate <strong>in</strong>novation.<br />
Background: A small number of very large retailers, toge<strong>the</strong>r with a number of smaller speciality<br />
bus<strong>in</strong>esses with strong ethical values, have developed relatively clear strategies <strong>in</strong><br />
relation to susta<strong>in</strong>ability which have resulted <strong>in</strong> <strong>in</strong>novative products, processes as well<br />
as wider, more <strong>in</strong>tangible <strong>in</strong>novation. However, <strong>the</strong> rema<strong>in</strong>der of <strong>the</strong> sector struggles to<br />
come to terms with <strong>the</strong> challenge largely because of <strong>the</strong> cacophony of conflict<strong>in</strong>g<br />
advice and guidance from a wide variety of sources.<br />
Evidence: The lack of widespread retail support for <strong>the</strong> work of organisations as varied as <strong>the</strong><br />
Carbon Trust and <strong>the</strong> Resource Efficiency KTN, alongside disjo<strong>in</strong>ted, often populist<br />
(and potentially <strong>in</strong>effective) <strong>in</strong>novation <strong>in</strong> susta<strong>in</strong>ability.<br />
Analysis: Eight specific measures which might act as stimuli for <strong>in</strong>novation <strong>in</strong> susta<strong>in</strong>ability have<br />
been identified by <strong>the</strong> sector:<br />
• Support mechanisms<br />
3.1 VAT reductions to stimulate green product <strong>in</strong>novation<br />
(work at <strong>the</strong> European level required to reduce VAT <strong>in</strong> relation to such<br />
products as energy efficient light bulbs & DIY materials)<br />
3.2 Bus<strong>in</strong>ess rate relief on energy efficient build<strong>in</strong>gs<br />
(There is disagreement on <strong>the</strong> extent to which rates relief might stimulate<br />
<strong>in</strong>novation. This should be fur<strong>the</strong>r <strong>in</strong>vestigated for retailers <strong>in</strong> <strong>the</strong> context of<br />
<strong>the</strong> bus<strong>in</strong>ess requirement to display Energy Performance Certificates)<br />
3.3 Encourage development of shared waste facilities by SMEs<br />
(Most attention has focused on <strong>the</strong> largest retail firms. Innovative solutions are<br />
required to ensure higher recycl<strong>in</strong>g rates amongst <strong>the</strong> <strong>UK</strong>’s 167,000 smaller<br />
retail enterprises)<br />
• Reduction of barriers<br />
3.4 Faster and easier plann<strong>in</strong>g regimes for susta<strong>in</strong>able technologies relevant to<br />
retail<strong>in</strong>g<br />
(for example, <strong>the</strong> need to dist<strong>in</strong>guish between applications for microw<strong>in</strong>d<br />
projects and large scale w<strong>in</strong>d turb<strong>in</strong>e schemes)<br />
3.5 Foster a standards-based framework to manage susta<strong>in</strong>ability and reduce<br />
uncerta<strong>in</strong>ty and risk<br />
(for example, <strong>in</strong> relation to account<strong>in</strong>g standards)<br />
3.6 Work towards identify<strong>in</strong>g susta<strong>in</strong>ability metrics and require retailers to publicly<br />
report on <strong>the</strong>ir achievement of <strong>the</strong>se<br />
(for example with<strong>in</strong> Social Responsibility paragraphs of annual reports)<br />
• Foster skills<br />
3.7 Build environmental awareness amongst retail staff<br />
(through <strong>in</strong>centivis<strong>in</strong>g or provid<strong>in</strong>g appropriate tra<strong>in</strong><strong>in</strong>g and development)<br />
3.8 Low carbon technology skills to support growth <strong>in</strong> retail <strong>in</strong>itiatives<br />
(for example, <strong>in</strong>creas<strong>in</strong>g <strong>the</strong> number of tra<strong>in</strong>ed technicians available to work<br />
on low-carbon technology projects)<br />
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