Manufacturing Partners - Sales

2012 Corporate Responsibility Report

and on our website, this has not been the norm in our industry. We helped craft the American Cleaning Institute’s (ACI) Voluntary Ingredient Disclosure initiative, which prompted many in the industry to disclose their ingredients on their websites, a big win for consumers. “As Chairman of ACI’s Sustainability Committee since 2011, I worked with other ACI members to develop the Sustainability Charter initiative, being piloted in 2013. ACI will recognize companies taking prescribed actions that include: commitment to ACI’s sustainability principles; participation in ACI’s industry metrics program covering key environmental parameters; and compliance with ACI’s voluntary ingredient communication program. The requirements for participation in the Sustainability Charter program will scale up over time and will provide a concrete method for raising the sustainability profile of the entire industry.” Manufacturing Partners Nurturing a close relationship with the companies that produce our products is crucial if we are to work together to tackle the environmental and social impacts within our supply chain. But we want to go even further. We would like to ensure that our manufacturing partners embrace the same overall commitment to sustainability that we do. To that end, we conduct detailed audits of our suppliers that cover their sustainability strategies, resource efficiency, materials and waste management, GHG emissions, air pollution, and community engagement. Audit scores on the sustainability-related questions were flat from 2011–2012. After several years of conducting periodic supplier sustainability audits, we are aware that these assessments are not driving the deep change we would like to see. We are focusing in 2013 on a new audit approach that will be tied more closely to our own 2020 Road Map and will target the key metrics we hope to influence. We developed relationships with five new manufacturing partners in 2012 while also dramatically increasing our numbers of new products. We now have 18 suppliers at 26 locations; much of our time was necessarily spent ensuring that our quality standards were met. ’09 ’10 ’11 2.8% 11% 7% ’12 Sales ’08 51% 9% Sales In a year characterized by our introduction of 48 new products and our entry into the personal care category, we achieved a 9 percent sales growth. This was driven by eCommerce, by sales in grocery stores throughout the northeast, and through our sales at Target. A notable new partnership was our expansion late in 2012 of our Walgreen’s sales to include Adult Personal Care products. Consumer interest led to significant growth in laundry, dish cleaning and diaper sales while paper products, household cleaners and feminine care were more challenging categories. 44  Seventh Generation, Inc. | FUTURE TENSE: Corporate Consciousness Report for 2012 Transforming Commerce


2012 Corporate Responsibility Report
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