Seattle’s Zero-Emissions Last-Mile Delivery Hub

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Earlier this month, the United Nations’ Intergovernmental Panel on Climate Change issued its latest report on the climate. It was not encouraging and clearly points to the need for the world to limit carbon emissions. Many cities and businesses are stepping already trying to do just that.

One opportunity for lowering emissions is the so-called “last mile” for online retail. This is the delivery to customers’ homes and businesses. This is seen as lower hanging fruit. So the city of Seattle is experimenting with some low-cost options, including cargo bikes, electric vehicles and pallets, and food trucks. This opportunity is leading to some innovation around delivery.

This Fast Company article describes “Seattle’s new zero-emissions delivery hub is an experiment in slashing e-commerce emissions.” This video (also shown below) describes some of that innovation. In Essentials of Marketing, we discuss innovation as a benefit of marketing (Chapter 1) and as part of new product development (Chapter 9). And of course this topic is relevant to distribution (see chapters 10, 11, and 12) Our textbook also covers sustainability in chapters 1 and 19.

A Couple of Examples of Companies Trying to Get Green (#M4BW)

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Many companies are seeking ways to lower their carbon footprint. Some, just because they want to do the right thing. Others because they want to build a better reputation with millennials. Some for both reasons. Here are a couple of short articles from Fast Company, that provide some good examples you might use in your class.

The title of the first one gives the top level overview, “Coke’s newest bottle is made from paper“. Consumer throw away millions of plastic Coke bottles every year. Is this a practical and environmentally friendly solution?

As you probably know, eating a more plant based diet might not be healthier just for you — but also for the planet. So a company like Sweetgreen (a restaurant chain focused on salads) is already ahead of the game. It is leaning into that with other efforts to lower its emissions. Read more in “How Sweetgreen plans to cut its carbon footprint in half in the next 6 years.”

 

He brought socially conscious change to Volvo without hurting profits, and challenges other CEOs to do the same (#M4BW)

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Another #M4BW (Marketing for a Better World) Monday post. Out of the World Economic Forum, former Volvo CEO Pehr Gyllenhammar wrote this op-ed at CNN Business, “I brought socially conscious change to Volvo without hurting profits. Other CEOs cab do the same,” (January 22, 2020). I hope that headline alone lures you into the article and a discussion with your students.

The most sustainable companies in America are beating the market (#M4BW)

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Regular readers, and those who have already seen the 17th edition of Essentials of Marketing know that we believe business can contribute to making a better, more sustainable world — without necessarily sacrificing profits in the process. Barron’s recently posted an article on this topic, and while the real thing is behind a paywall, I found this copy online (I hope it lasts there for your review).

After Barron‘s ranked the 100 most sustainable companies (#1 Texas Instruments), it compared their stock market returns in 2019 (+34.5%) with those of the S&P 500 (+31.5%). The article is optimistic that this trend will continue. Why? Some of the reasons given in the article include:

  • These companies attract employees — people want to work there,
  • They are better at employee retention,
  • Good environmental policies lower costs,
  • Customers want to do business with these companies,
  • Investors want to buy into sustainable companies.

Some #M4BW examples for you…

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As regular readers know, through this blog and the forthcoming 17th edition of Essentials of Marketing (publishing in February 2020) we have taken on the mission of highlighting organizations that are marketing for a better world (#M4BW).

Businesses are getting the message. McDonald’s has announced that it will soon buy all of its coffee from sources that meet international sustainability standards certified by Fair Trade and Rainforest Alliance. Consumers are concerned about plastic containers—we throw away lots of plastic. Recently, Unilever, Procter & Gamble (P&G), Nestlé, Häagen-Dazs and PepsiCo began testing reusable containers for their products. PepsiCo will use refillable glass bottles for its Tropicana orange juice, and P&G will use aluminum bottles for its Pantene shampoo and stainless steel containers for Tide detergent. Products will be delivered to customers’ homes with empty packaging returned, cleaned, and refilled. For more see “The World’s Biggest Brands Want You to Refill Your Orange Juice and Deodorant,” Wall Street Journal, January 24, 2019; “McDonald’s Transitions to Sustainably Sourced Coffee,” brandchannel, October 12, 2016; “Beyond Sustainable: The Growing Demand for Ethical Fashion,” The Robin Report, April 3, 2018. These examples can be used when you cover sustainability (Chapter 3), packaging (Chapter 8) and reverse channels (Chapter 10).