Latest Manufacturing Industry Trend - Essay Example

?Evaluate the response of NEXT Plc. on Waste Management for being a responsible business unit. Introduction Waste management is one of the various purposes of preserving natural environment from the negative impacts of product life cycle at different stages. NEXT has been very particular on reducing waste and increasing its waste recycling strength from various manufacturing to selling functions of its products. NEXT is a signatory to the British Retail Consortium’s Climate Change Initiative, ‘A Better Retailing Climate’, which includes dedication to minimise waste and packaging among other initiatives. Various Methods of Waste Management Waste management deals with reducing waste through sustainable production of goods. This sustainability can be achieved through product design and process design. Production notions need to be changed to reduce waste. There are various methods of waste management, including product life cycle management, dematerialisation and industrial eco-management and through eco-friendly designs and eco-technology. Design phase of a product offers maximum possibility of managing waste. Latest Manufacturing Industry Trend A change in trends has been seen in manufacturing industries for attaining sustainable manufacturing by changing from end-of-pipe solutions to centring on product life-cycles for integrating strategies and systems to achieve environmental sustainability. The trend is increasingly shifting towards closed-loop circular manufacturing systems and for new business models (OECD, 2009). Preference for Environment Management Systems for Waste Control Businesses are going for Environment Management Systems (EMS) – integrated environmental strategies and management systems. Application of EMS ensures that environmental issues such as waste management are looked after through enforcement of programmes to achieve related goals, which are inspected for attaining performance level, rectifying problem areas and reviewing of systems for incessant improvement. Dematerialisation for Waste Management Another trend to control waste is dematerialisation wherein resource intensity of products and processes is cut down. It is the reverse end of the scenario for waste management. It is related to reducing and bettering the standard of the resources used in production of goods and services. Dematerialisation can be achieved through reduction in product size, weight, packaging, by increasing product life and variety of uses. Industrial Ecology for Waste Management Industrial Ecology (IE) can yet be another huge step towards waste control, wherein a firm’s by-products can be used by another firm as raw material, thus, reducing resource use and waste creation for the system overall. It offers a dynamic transformation in waste management from simply reducing waste from a specific function or location, to reducing its production at the bigger scale and level of the system as a whole. Role of the Government To analyse the measures taken by the government to manage waste, the government has released the document on Waste Strategy for England 2007. There has been a UK law promulgated from Packaging and Packaging Waste Directive on the Packaging (Essential Requirements) Regulations 2003, the Producer Responsibility Obligations (Packaging Waste) Regulations 2007. Further, the government has made it legal to take all possible measures to keep waste less hazardous. It is the legal responsibility of all manufacturers, importers, stockists, logistics, disposal and managers of waste under the Duty of Care Regulations. There has been the provision on landfill tax, which is controlled by HM Revenue and Customs and presently charged ?72/tonne (+VAT) for Active waste and ?2.50/tonne (+VAT) for Inactive waste. Evaluation of NEXT Plc on Waste Management Testing Next Plc on the above theoretical frameworks, as per the NEXT CSR Report 2012, the Company has been successful in 10% additional waste recycling relatively the previous year. Overall, it is using 85% capacity of recycling functional waste. NEXT manages waste from retail outlets, stock units, distribution centres and offices. It has fixed the target of disposing off less than 5% functional waste to landfill. It has succeeded in recycling 92% of its material waste (NEXT: Headlines and Highlights, 2012). NEXT has focussed on reducing and recycling waste all across its production functions in Ireland and the UK, measuring targets from the baseline year of 2007/08 and to put them in place by 2015/16. Through its in-store Green Champions, NEXT has been creating awareness on the new concepts on waste reduction among other environmental concerns (NEXT: Environment, 2012). 92% construction waste recycled Store openings/refit Construction Waste 2011/12 Tonnes 2010/11 Tonnes Waste produced - tonnes 9,268 5,330 Waste recycled - tonnes 8,499 4,708 % waste recycled 92% 88% NEXT has been incessant in the process of quantifying the bulk of construction waste arising out of all its store projects where new outlets were going to open shortly or renovation work was undergoing on established locations. It has been adhering to both the legal necessity of developing a Site Waste Management Plan (SWMP) for constructing projects and making available a view of the recycling rates all along its chain of store projects. With the increasing success in the recycled percentage, NEXT has succeeded in encouraging the use of segregated skips, if possible and by collaborating with the Company’s third party provider. Efforts made in the direction of waste control through recycling will help the Company in establishing how the increased quantity of construction waste could be shifted away from dumping to the landfill. Another critical resource related to waste management is water. Supply of water lags behind the increasing demand of it all-over the globe. UK is no exception to the shortage of water. The problem of water scarcity is going to aggravate in near future. NEXT is not a direct and leading consumer company of water; its water usage is not big enough, nevertheless, the Company identifies water as a natural resource, which requires immediate attention for conservation. NEXT has been striving to reduce the quantity of water to be used for its business functions. Use of water is managed to the minimum level through the Company locations, materials and technologies and by creating awareness among employees for using water efficiently (NEXT Plc: Environment). NEXT has been randomly using such tactics for conserving water as employing various water conserving traits like percussion taps and toilets with decreased quantity of water used in flushing. Experiments of such scale are practiced at the Company Head Office first of all. A urinal system has been in use which facilitates reduced quantity of water to help conserve it. NEXT has been striving to better the used water consumption reading. Off late, it has started fitting water meters as an indicator in the new stores to conserve this natural resource. More than 85% of NEXT locations in the UK and Ireland are fitted with water meters (NEXT: Environment, 2012). Competitor Performance H&M, the competitor company is fully focussed to reduce, reuse and recycle waste with a mission to achieve zero wastes to landfills. It has started a new scheme focussed on business partners and customers. Customers can return old clothes to the store for making them new in stead of parcelling the old clothes to waste. It would be able to recycle 95% of its waste in 2013. Comparing it with NEXT 85% recycling of its operational waste and 92% recycling of material waste, one can say that both the companies are on the verge of maintaining their edge on waste management (H & M Highlights, 2012). Conclusion Comparing the NEXT Plc waste management responses on the parameters of various latest strategies in practice, such as industrial ecology and dematerialisation, one can understand that these are not relevant with the business processes of NEXT Plc while NEXT has performed well on the life-cycle responsibility of its goods by managing waste starting from Research & Development till Take Back and Recycling by minimising waste production and achieving reduced landfill percentages besides increasing recycling of waste years-on. Evaluate the response of NEXT Plc. on Social Impact for being a responsible business unit. Introduction Social impact is formed from social capital, which is a resource in itself. Society bounds together from the impact of social capital, which should not be observed in monetary terms but it adds the tangible value. Worth of social impact can be seen in different positive human traits such as faith, value, social unity, relationship and cooperation. Social impact comes from social empowerment and sense of justice. Connectivity among members of a group adds mobility to the social cause of the group. Various Approaches – Structural Approach A structural approach guides in creating social impact, starting from economic activity, which is, “ embedded in society, the innovative entrepreneur develops social capital through building networks which provide external sources of information, support, finance and expertise allowing mutual learning and boundary crossing…” (Cope et al. 2007:214). Social impact becomes transparent when fences are crossed between people, groups and societies. Contextual Approach On the contrary, a contextual approach related to norms and values impacting society. “…the idea of a group identifying a number of individuals sharing common values, where knowing and relating are important elements, where reciprocity is an important function and where peer pressure may shape processes and rules…” (Murdock, 2005: 9). Role of Social Capital and Social Enterprise We can say that social impact is the indirect creation of social capital & social enterprise. Where neighbourhoods are economically weaker due to economic under-development, it signifies lack of social capital. For under-privileged communities specifically, where there is a visible deficiency in the private and public-sector areas of the local economy and a comparative deficiency of other sources of financial and tangible resources, the creation of both, the social economy and local social value is a better and right choice strategically (Evans and Syrett, 2007). From conceptual point-of-view, social enterprise can be majorly for social purpose or profit-earning or for making of the social capital. Whatever the leading aim of an enterprise is, legal adherence is critical, as rules of the game demand. Company management can take personal interest to pursue social and ethical aims of doing business. Leadbeater (1997) considers that the ethical traits of the people in social businesses are a major differentiator between them and people in other organisations. No Equilibrium without Social and Economic Sustainability Equilibrium in sustainability is reached when social and economic sustainability merges. Such companies that desire of creating social value follow a strategy of supporting social programmes through business methods. Economic practices of such organisations lead them towards social responsibility, prompting them to run socially responsible business. In a way, social impact of a firm materialises when it covers both social and economic objectives, as without attaining economic objectives, social programmes related to mission motives and safeguarding of stakeholders’ interests can not be accomplished. Evaluation of NEXT Plc on Social Impact Evaluating the response of NEXT Plc on social impact, as taken from its CSR Report 2012, the Company has provided commercial support to charities and community organizations, amounting to ?3,146,354. Other than commercial support, NEXT has helped more than 350 registered charities by offering donations in both cash and kind, through the Company employees. NEXT does not follow the practice of selecting a singular organisation for social uplifting of the related community but it selects a number of charities to create the difference for a better time ahead on a wider scale. NEXT selects some organisations for extended and pre-determined time period so that social impact of its association could be seen and realised. NEXT has created the distinct social impact by computing the value of intangible donations from such products, which have been a part of its business. Various donation entities include registered charities, individual groups and institutions as well as commercial support and sponsorship (NEXT: Community, 2012). An analysis of its performance of community help indicates that comparative to the past year 2010-11, donations to registered charities and individual/local/national groups have got appreciated in the year 2011-12, while commercial support and sponsorship has been relatively less than the last year. At the same time, a number of fund raising activities have been additionally supported, such as charity events, gifts in kind-donations of products, charity-linked sales and fund collection by employees (NEXT: Community, 2012). Worth appreciation has been NEXT Plc joining hands with charities for disposal of waste products in stead of to the landfills, to charities and other groups for designing valuable material out of them. Clean reusable scrap material has been provided to the community of Scrap Stores, UK, for the use by children of the adjacent communities. Schools, play groups and community groups create creative products out of the waste material. From NEXT perspective, no other alternative can be better of disposing off waste material safely this way. Waste material is being used for educational and playful activities of the children (NEXT: Community, 2012). Another charity by the name of Don caster Refurnish has been selected for support, as situated near the Company’s warehouse. The charity has become the medium of providing reusable furniture in stead of showing it the way to landfill, so that socially and economically weaker sections could purchase them at discounted prices for their homes (NEXT: Community, 2012). Employees of NEXT have been roped in to contribute their undesired goods to another charity, Oxfam, so that Oxfam may derive value by using for its work worldwide. Employees also get an opportunity to fulfil their corporate citizen obligations. Employees have been also participating in games for raising funds for research in Cancer in the UK (NEXT: Community, 2012). On the whole, NEXT has been a leading social impact generator company. All products sold by the Company are safe as per consumer legislation. All stakeholders of the product life cycle such as suppliers can check online all related quality, safety, ethical and environmental parameters of the products. The Company ensures adherence to new legislations and any shifts in currently enforced laws at various levels. NEXT is a member of British Standards Institute Technical Committees for remaining updated on legislation enforcement dates (NEXT: Community, 2012). Competitor Performance H & M has also invested in creating social impact to strengthen communities all across the value chain; it has created additional 7,402 jobs in 2012. Further, it has invested USD 6.3 million in community projects through the H & M Conscious Foundation, impacting the lives of 430,000 people by educating them. Nearly 6 million people have availed better health conditions. Its Better Cotton Initiative has helped 150,000 farmers in learning better farming methods. The number of clothes given to charities has been more than 3.2 million. Comparing the performance of NEXT with H & M, NEXT has contributed ?3,146,354 to the cause of charities and community organisations, which comes to USD 4.8, which is way behind H & M’s contribution of USD 6.3. It needs to be mentioned that overall, initiatives taken by NEXT to create social impact relatively to H & M are quite comprehensive to include various segments of society (H & M Highlights, 2012). Conclusion A review of the community affiliations of NEXT makes it clear that the Company has been successful in garnering the goodwill and faith of the adjoining communities through invested resources for the welfare of various stakeholders of public life, including charitable and other organisations. Employees of the Company have shown exemplary corporate citizenship traits by helping the social causes through their tangible and intangible resources at hand. NEXT has attained success in accumulating the concerns of two issues at the same time by linking waste disposal with donating the waste material like furniture and other goods to charities for the use of children and creating innovative products out of waste material. Overall, theoretical underpinnings of reciprocity can be seen through the social impact, created by NEXT Plc. Evaluate the response of NEXT Plc. on Sustainability Reporting Introduction Sustainability reporting, known by various titles, such as CSR Report, Corporate Responsibility Report (CRR), Corporate Environmental Report (CER), does not have a universally agreed definition. Generally, it is non-financial reporting on sustainability. Nevertheless, it is “the practice of measuring, disclosing and being accountable to internal and external stakeholders for organisational performance towards the goal of sustainable development” (GRI, 2006). Sustainability reporting is mandatory as per the Companies Act 2006 for directors to report social and environmental reporting for encouraging innovation, creating business value and leveraging new opportunities, as critical motives. Trends and Industry Standards Off late, the trend in sustainability reporting has been on the rising for such causes as controlling green house gas emissions and water use by the industries. There are set guidelines and standards of reporting on sustainability, such as AA1000 principles, Global Reporting Initiatives (GRI) guidelines, national parameters and regulations. Otherwise too, there are stipulations on the reporting content to provide complete data on yearly basis, set targets attached to policy and auditing procedure besides including corporate and on-site reporting. Incidentally, it needs to be noted that GRI criteria is generally employed on sustainability reporting but no regulatory body has recognised the GRI guidelines. Evaluation of NEXT Plc on Sustainability Reporting Analysing the NEXT Plc sustainability reporting as per the common prevalent guidelines, it has included all financial and non-financial reporting on the basis of key performance indicators, besides including reporting information on environmental and workforce issues as well. NEXT Plc values very high the credibility of data for adherence to ISAE 3000 standards for outside assurance (NEXT: Criteria and Methodologies). Environmental reporting by NEXT includes Global Direct Carbon Footprint (tonnes CO2e). Carbon Emissions/Greenhouse Gas Emissions (GHGs) are measured with the purpose of acknowledging the source of harmful gases’ emissions to help in following a transparent reporting approach and to develop an emissions controlling strategy (NEXT: Criteria and Methodologies -- Environment). NEXT Plc has computed its carbon footprint by approximating the yearly emissions and their impact on the climate from the six GHGs, as given in the Kyoto Protocol, namely: carbon dioxide (CO2); methane (CH4); nitrous oxide (N2O); hydro-fluorocarbons (HFCs); perfluoro-carbons (PFCs) and sulfur hexafluoride (SF6). NEXT Plc has adhered to globally recognised standards of the Greenhouse Gas Protocol, released by the World Business Council for Sustainable Development and the World Resources Institute (WBCSD/WRI Protocol). NEXT has adhered to DEFRA Greenhouse Gas Reporting Guidance released in September 2009. It has computed GHG footprints through the latest 2011 conversion factors released by DEFRA/DECC. The CSR report 2012 also offers for comparison the last year data by restating it using the updated conversion factors to measure relative performance for year to year on a like for like basis (NEXT: Criteria and Methodologies -- Environment). Evaluating NEXT Plc on the standard parameters, as reported by the Company, it has achieved re-certification of the Carbon Trust Standard for measuring, managing and reducing its carbon emissions during 2011. In energy usage, the Company has been able to reduce its usage by 5% relative to the past year besides registering 26% cut down in electricity usage against the 2007 baseline. In distribution sector, it has been successful in cutting down 9% fuel consumption and reducing 8% fuel consumption in litres against the 2007 baseline (NEXT: Criteria and Methodologies -- Environment). Stats for environmental sustainability of the NEXT Plc Group show its global direct carbon footprint at 208,738 tonnes of CO2e, showing reduction of 3% relatively to the past year, measuring reduction aims from a baseline of 2007 till 2015. The Company fixed the target for reducing energy use and cut down in emissions from its stores, warehouses, distribution centres and offices by 35% in kg CO2e/m2. In retail distribution, it has aimed at 10% cut down in fuel use while it could achieve 9% cut down only in comparison to the previous year. Overall reduction was 8% (NEXT: Criteria and Methodologies -- Environment). NEXT Plc has complied with the legislation over limiting the use of dangerous chemicals. Such chemicals that create risk to the health of people and the environment are being used decreasingly in the products of the Company. NEXT has categorised such substances in the Restricted Substance Standards (RSS), which is a segment for the Company’s technical needs for the goods produced by the suppliers of NEXT. RSS needs have been formulated by NEXT on: • Legal standards: NEXT has adhered to and crossed the benchmarks of European standards besides some non-European standards have also been included for compliance. • Recommendations by industry specialists: NEXT has followed the recommendations of related experts where chemical substances are proved to be harmful, so that lack of legislation in place does not hurt the environmental and sustainability interests. • Pressure group focus: Formation of pressure groups has helped in tagging certain chemicals for alarming risks. • Customer feedback: It has helped in stopping the use of certain chemicals, not prohibited by law but found to be reactive. Competitor Performance H & M is globally on number one position in using organic cotton for the garments produced by the company, as per the Textile Exchange’s latest Global Sustainable Textiles Market Report, for the second year consecutively. It is almost near to meeting its target of using sustainable cotton, with 11.4% cotton being grown from these sources. Of course, NEXT cannot boast to any such claim. It has been using natural resources efficiently. From 2013 onwards, it as totally stopped the use of perfluorinated compounds (PFCs), which is not the status at present of NEXT, which is just meeting the global standards given in Kyoto Protocol. H & M is way ahead in using solar energy, the renewable source of energy to help in the cause of climate change. It was able to generate 784,200 kwh of solar energy through its solar photovoltaic panels. NEXT has yet to use this natural resource although NEXT has been quite forward in updating certifications and global level legislative adherences on carbon emissions (H & M Highlights, 2012). Conclusion NEXT Plc has taken all stakeholders of the Group along with it in complying with the sustainability reporting standards. Out of various certifications and regulatory norms, it has strived to adhere to European and the UK based quality benchmarks in reporting efforts. It has adhered to Kyoto Protocol and DEFRA GHG reporting standards as well. The Company has complied also with the Restricted Substance Standards for matching with the new legislation in 2011. It is keen to comply with any emerging legislation on hazardous chemicals. It regularly updates the suppliers for immediate follow-up over any legislation. As a policy matter, all precautions are taken as a way-out to control the use of hazardous chemicals It is ensured that information flow on the use of chemical material to the suppliers remains uninterrupted. All support guidance and skills are imparted to the partners in business. During the year 2011, suppliers were given relevant training to help ensure they know the exact needs of the Company in the related product segment. Further precaution is taken through concurrent due diligence programme to see that products sold by the Company fulfil stipulated parameters. Monthly audits help NEXT Plc to follow a risk appraisal procedure. Internal procedures of standardisation are followed strictly through two independent specialist laboratories, where products are zeroed-in on risk parameters for evaluating them in-line with the needs of RSS. Full precaution is taken to withdraw such products from the markets that do not pass the internal measurement criteria of environmental sustainability. Suppliers are informed well in-time about the audit report of the product evaluation to withdraw such products that do not fulfil the selected sustainability reporting criteria. Read More