HAVI helped a Fortune 500 global healthcare company after they publicly committed to reduce packaging by five percent within the course of five years. HAVI standardized an approach to measurement that leveraged industry best practices and worked across the global organization.
CASE STUDY FOCUS: SUSTAINABILITY
A Fortune 500 global health care company sought help benchmarking package sustainability across multiple business units and requested insight into industry best practices that would help it achieve its corporate sustainability goals.
A 120 year old, industry-leading health care company with more than 90,000 employees worldwide committed publicly to reduce packaging by five percent across its organization within five years. To do this, the company needed to develop a standardized reporting methodology that would enable it to compile, analyze and report package weight reduction metrics.
Though united in its pledge to reduce packaging, the company was disjointed in how it would do this. Its global footprint, multiple divisions and diverse product portfolios, including a mix of regulated and non-regulated, as well as consumer and medical products, made it nearly impossible for the company’s Packaging Sustainability Steering Team to secure alignment across the organization and develop a transparent and rational way to calculate progress toward the corporate goal.
HAVI began by conducting an internal survey of the client’s six primary divisions to determine what each uses as a metric (i.e. weight, specific material set, etc.), how they collect data and how they define packaging. For instance, while the pharmaceutical division defines the drug and bottle as the product, the nutritional division defines the protein drink as the product and the bottle it is sold in as the primary package. Identifying these differences in definition and the disparate data collection methodologies, resource needs and regulatory constraints across the organization demonstrated the limitations of the client’s current processes as well as its lack of standardization and provided a starting point on the path toward alignment. Next, HAVI searched its network of thousands of professional contacts at organizations across industries and around the globe to identify those with characteristics similar to their client—a diverse product set, global sales, multiple business units— and those with known corporate sustainability programs. The consulting team surveyed 14 external companies on sustainability metrics and reporting best practices, identifying issues, drivers and challenges at each of these organizations. HAVI presented its findings to the client and demonstrated how the company compared to the external companies they had surveyed.
Using the information they had gleaned from the survey, the consultants also developed a series of best practices that would work within the unique parameters of the client’s organization and different divisions. For instance, they recommended that the client include all packaging components (primary, secondary, tertiary) in the packaging goal, that they make no distinction between regulated and non-regulated products, and that they standardize data systems to systematize collection and provide for regular and transparent reporting. HAVI helped each division define the scope of what it would measure and then built a customized tool that could be used throughout the organization to capture each division’s information and calculate progress toward the corporate goal.