Marshalls is the UK's No. 1 hard landscaping transformation company supplying both the commercial and domestic markets. With an annual turnover of £378m, Marshalls employs 2,500 staff across UK sites.

Headquartered in West Yorkshire, Marshalls was the first company in its industry to launch an online carbon calculator and most recently became the first in the world to carbon label an entire range of products.

Marshalls believes that sustainability must be at the heart of its business. In essence, achieving a goal of sustainability involves judging the long term merits of business decisions against the triple bottom line.

Chris Harrop is Marshalls' Group Marketing Director and the Director responsible for sustainability.

Chris has helped transform Marshalls into a leading sustainable business, ranked in the Top 10 for Quality of Marketing in the peer-ranked Management Today Most Admired Companies 2008 index for the third year running. In recognition of his achievements, Chris himself came 5th in Ethical Corporation's Heroes of Sustainability for 2007 and was named Marketer of the Year by the SWOT Awards 2008.

He has worked on the ground in India to raise awareness of Indian child labour in the national media. Back in the UK he has helped introduce carbon labelling on all of Marshalls' domestic range and full environmental profiles on their commercial range, as well as a ground breaking carbon calculator for customers to use through Marshalls' dedicated sustainability website.

Chris is a Chartered Director of the Institute of Directors and a Chartered Marketer of the Chartered Institute of Marketing.

Has Marshalls managed to reduce its carbon footprint?

"Yes. We have committed to reduce emission of greenhouse gases by 80 per cent by 2050 in line with Government targets and we're well on our way. Since we started our carbon reduction programme, Marshalls has made energy cost savings of over £525,000 and carbon emissions reductions of over 2,300 tonnes co2."

How was this achieved?

"Marshalls' carbon reduction programme is at the heart of what we do. Broadly speaking, our programme looks at our carbon management and how we can reduce emissions at each site. We have energy plans for each site and now have energy champions too who promote Marshalls' carbon reduction policy throughout the organisation.

"In terms of our products, we undertook an extensive carbon labelling programme with the Carbon Trust and we're currently working on environmental profiles with the Building Research Establishment.

"Marshalls has also engaged in a targeted communications campaign to raise awareness of environmental concerns and the dangers of 'greenwash'. Internally, there has been increased awareness of carbon throughout the business and supply chain, and we continue to invest in product development."

What is your position on the carbon labelling of individual products?

"Carbon labelling is essential for business and for consumers if we are to move to a low carbon economy. It was a bold move for Marshalls to carbon label as many products as we did. The process was arduous and involved a large cross section of the organisation because of the amount of data collection required for the effectiveness of the process. That included suppliers, builders' merchants, our sales force and Marshalls' works.

"The end result is that we've carbon labelled our entire domestic range, so our customers can compare our products and make an informed choice about what they buy. In all, we labelled 503 products which is the largest amount in the world.

"There's no point in just labelling one range - it doesn't give you the comparison and that's what carbon labelling is about. You need to be able to compare the carbon footprints of different products otherwise it's like measuring against nothing."

Why has Marshalls published an 'Anti-Greenwash' pamphlet?

"There are a lot of companies out there making claims about being ethical or green that they cannot substantiate. They then decide to communicate their 'credentials' but with no data or real substance to back it up.

"Without independent third party verification, anyone can say anything. There's no proof. Ill-informed miscommunication happens too often and we wanted to shine a light on this greenwash, because it is not good for business or our customers.

"Ultimately Greenwash will seriously damage the already fragile consumer trust in business and products."

Aren't paving products - and quarrying - intrinsically damaging to the environment?

"Ultimately everything we do has an environmental impact, our responsibility is to understand that impact and minimize it.

"Now that we've measured our carbon footprint and done the groundwork, we've found that actually when you do the calculations Marshalls' paving produces less carbon than crisps!

"If you look at production and consumption, 1 tonne of crisps produces 2 tonnes of carbon. The production and installation of 1 tonne of reconstituted concrete paving generates 0.176 tonnes of carbon. That's just taking information from a packet of crisps and our own calculations for our products. Now of course no one is going to eat that amount of crisps or use that amount of paving, but the comparison can be made because of carbon footprint labels.

"Marshalls is fully aware of its own contribution to climate change and impact on the environment and we've committed to an ambitious carbon reduction programme because we want to ensure that, where possible, our processes have the least impact."

How do you ensure sustainability throughout the supply chain?

"Marshalls joined the Ethical Trading Initiative about four years ago. The ETI brings together global companies, trade unions and NGOs, with the focus on developing practical solutions to ethical trade that deliver concrete benefits for workers. We were the first in our industry to work with the ETI and we continue to work with them to improve the lives of workers and their families.

"We also work very closely with our overseas suppliers to ensure we share best practice. In India, we've helped our sandstone supplier with accreditation to internationally recognised standards, put in place a quarry restoration programme and funded local health and education camps through a specialist NGO.

"Over the years I've found that it's only when you work together, share goals and focus on productivity that the supply chain becomes sustainable."

What about waste and water management?

"Water is key to our business. We've continued to invest in water recycling plants to reduce dependence on mains and borehole water supplies. Our focus is to improve the balance between recycled and externally supplied water. In 2008, use of treated water from mains sources declined by nearly 15 per cent overall.

"In terms of waste, we've significantly reduced the overall impact of waste generated from our operating sites. Last year, 90 per cent of Marshalls' waste was reused or recycled with only 10 per cent going to landfill."

What is your proudest 'green' achievement?

"My proudest achievement has to be the opening of the first Marshalls school for quarry workers' children in Garrda, India. Before we set it up, 47 children had received no education whatsoever.

"I'm also really pleased with our carbon labelling work. It took a lot of people a lot of work but we've labelled 503 products and that's the most any company's done in the world.

"On a personal level, being named 5th most influential person in 2007 by Ethical Corporation is a tough one to beat."

What's top of your in-tray?

"There's a real struggle at the moment between the government's agenda on low carbon versus the argument for recycled. Not all recycled products are the most environmentally friendly. We know because we've done the work, and it's difficult for businesses to prioritise one over the other.

"Just underneath is the lack of implementation and enforcement of the government's new laws on permeable surfacing for front gardens. The legislation is actually very positive for the environment but it actually needs enforcing by councils."

Any advice for fellow carbon-reduction/sustainability practitioners?

"In terms of carbon reduction, I think it's really simple. Businesses need to stop trying to intellectualize and accept PAS2050 as the definitive methodology for carbon footprinting. Once there is a commitment for carbon reduction, take the first step and get on with it! Carbon reduction is not easy but it has to be top of any business's agenda if they want to be sustainable."

[Contact: Chris Harrop, Marshalls Group Marketing Director, Tel: 01422 306400]

The Green path to shareholder value

Doing good for the environment and society has long differentiated consumer product companies. But now, because of a range of factors including consumer interest, rising commodity prices, retailer requirements, or pending legislation, senior executives in other sectors are making sustainability a top agenda item.

It is clear the cost of doing nothing is too great, but what pitfalls exist for companies on the path to sustainability? Below are the key issues companies need to consider as they work to ensure their sustainability efforts are delivering shareholder value.

Pitfall 1: Confusion from the start

Sustainability is a broad and complex concept that has not been consistently defined. Despite this, it is becoming commonly accepted that sustainability encompasses the triple bottom line, including environmental, social and economic factors.

The strategic opportunity for sustainability lies at the intersection of these – addressing the environmental and social implications while continuing to build shareholder value.

Where this may become tricky is when the environmental or social benefits outweigh the short-term financial bottom line. Nonetheless, defining sustainability is a critical first step to leveraging it as part of an enterprise’s strategy. Employees need to clearly understand what it means, and does not mean.

Pitfall 2: The missing link – organisational DNA

Defining sustainability is a critical first step, but a definition alone isn’t enough. A sustainability vision statement should also be developed to guide decision-making on strategic issues.

By having an inspiring, action-oriented sustainability vision statement, a company can further engage its employees and stakeholders. This is the first step in embedding sustainability within the company’s culture.

A company’s mission statement commonly defines the organisation itself – so important, that it is sometimes referred to as the company’s DNA. With something so central to a company’s being, it is critical that the sustainability vision statement aligns closely with the company’s mission statement.

Pitfall 3: Pursuing without priorities

Sustainability is a large, strategic issue that can impact multiple areas of an enterprise. Developing clear priorities can help decision-making when the ROI is unclear or the payback seems a long way out.

Hybrid vehicles, for example, can reduce greenhouse gas emissions for large fleet owners. However, these can cost at least 75 percent more than conventional vehicles, and may require a 10-year payback for the fuel savings. However, the long-term cost of not taking sustainability seriously may be as large as the short-term cost of adopting sustainability initiatives.

Defining the priorities requires analysing the enterprise’s inputs and outputs at the operational level.

Pitfall 4: Baseless progress

Many Consumer Businesses have pursued some sort of sustainability-related initiative, but what is lacking in many cases are baselines against which year-on-year benefits can be measured.

Defining a baseline for greenhouse gas emissions is difficult, but is an issue that will draw increased public attention. To aid companies, the Greenhouse Gas Protocol has developed an accounting framework that provides guidelines and models that are freely available.

Another option is to work with The Carbon Disclosure Project (CDP), an independent non-profit organisation that gathers voluntary data from questionnaires. However, CDP’s methodology and processes are not subject to third-party scrutiny.

Pitfall 5: Lifecycle Analysis Paralysis

Lifecycle assessments can be a powerful tool to assess environmental impacts along the value chain for a particular product in order to select options with the least impact.

However, the lack of a standardised methodology and training may prevent meaningful results, while the resources and time needed to carry out a thorough analysis across product lines could be significant. One alternative is to create a “sustainability index” as an internal tool to evaluate each product line against the others, based on sustainability attributes and overall value to the company.

Determining the “sustainability index” requires developing criteria that aligns with an enterprise’s value chain and these criteria should be weighted according to strategic priorities.

Pitfall 6: The Lone Rider

Going it alone can be arduous, if not impossible. Companies must keep up with innovations that provide a better understanding of environmental and social effects of an enterprise’s operations, and also new solutions to sustainability challenges.

Companies should collaborate with non-profit organisations, academia or industry groups to develop a more comprehensive understanding of the issues, to identify more innovative tactics or technology to address the issues, and to engage potential stakeholders to achieve their sustainability goals.

Pitfall 7: Lacking Leadership

Like other major strategic issues, sustainability requires a senior executive champion to drive accountability, evaluate risks, overcome organisational barriers, and speak in an informed manner to investors and other stakeholders.

Relying on lower-level managers to pursue sustainability does not tend to deliver the desired results. In addition to pushing the sustainability agenda, gaining leadership buy-in can also help set the stage for attracting future leaders to carry out a company’s sustainability priorities.

Pitfall 8: Communicating too early or not at all

Reducing greenhouse gas emissions, is commendable and a natural instinct may be to broadcast this success to the world. However, before penning the press release, it is critical to assess the true benefits offered by a company’s sustainability initiatives, products, and/or services to avoid being accused of making unsubstantiated claims or so-called “greenwashing”.

Besides the time and resources needed to publish sustainability reports, official guidelines and metrics to use for sustainability management and reporting are lacking. However, companies should seek to automate data capture processes to accelerate the process of report development.

Pitfall 9: Betting on the consumer

Going green appears to be a big deal on store shelves due to the growing number of consumers that are becoming aware of sustainability issues and modifying their purchasing decisions accordingly.

However, it remains unclear whether consumers will sacrifice convenience or price for sustainability and thus, how lucrative sustainability will be for a company over the long run. A recent Ipsos Reid study revealed that four in 10 Americans are not more willing to pay a price premium for “green” products. Many are skeptical about green product claims and companies risk losing consumer’s trust. Nonetheless, sustainability can certainly drive competitive advantage when targeting the right consumer segment.

Creating a ‘pitfall-free’ foundation

The first step is to develop a sustainability definition and link it with an organisation’s DNA to create a sustainability vision statement – a guide for employees and stakeholders alike. Assessing how sustainability will impact competitive advantage is critical to identifying top priority areas.

Companies should then establish an operational baseline to identify key metrics and targets, as well as to compare year-on-year progress for key inputs/outputs.

Finally, sustainability initiatives should be identified that align with the company’s priorities and in some cases, opportunities for collaboration with academia or non-profit organisations should be exploited to drive innovation.

An executive sponsor is critical to progress towards the enterprise’s sustainability priorities. The Chief Sustainability Officer (CSO) should establish a communication protocol for both external and internal audiences, and a process to review and approve initiatives to provide visibility to the senior executive team.

What will likely differentiate those organisations who realise environmental and social benefits while delivering shareholder value is the strategic foundation they rely upon to avoid the pitfalls.

Peter Capozucca is Principal Sustainability Leader, Consumer Products, Deloitte Consulting LLP. Peter has 15 years experience of operational and supply chain processes, including strategic sourcing, procurement, logistics and supply chain planning.

Michael Daher is Senior Manager, Corporate and Competitive Strategy Practice Deloitte Consulting LLP.