The “Virtuous Circle”

Marks & Spencer, the prominent U.K. clothing, food and housewares retailer, launched an ambitious, five-year “eco plan” in January 2007 to force the organization of more than 75,000 workers spread globally to re-think the way it measures, manages and reports on social, environmental and ethical issues.

Plan A, as Marks & Spencer calls it, is a voluminous pledge of 100 commitments that challenge the breadth of the organization on issues ranging from climate change, waste, sustainable raw materials, fair partnering and health. It includes goals for M&S to “become carbon-neutral, send no waste to landfill, extend sustainable sourcing, be a fair trading partner and help our customers and employees to lead healthier lifestyles,” according to CEO Stuart Rose.

With 622 stores in the U.K., Marks & Spencer sources goods and services from 2,000 suppliers globally and is pushing an ever-expanding international business portfolio that includes ventures in India, Greece, Switzerland, the Czech Republic, Slovakia, Latvia, Lithuania and Estonia.

Opportunities for innovation
Influencing its business partners and suppliers to join in the effort is a tenet of Plan A. Rose says engaging suppliers, customers and employees is part of Plan A’s “virtuous circle” for ideas to advance progress and find solutions. The company wants its business partners to approach environmental and social issues as opportunities for innovation rather than as a means to achieving rudimentary compliance.

“We need their creativity and energy to help us deliver Plan A across our 35,000 product lines,” Rose notes in the company’s first systematic review this year of all 100 Plan A commitments.

Among socially active partners, Marks & Spencer credits groups like Forum for the Future, Oxfam, World Wide Fund for Nature, Breakthrough Breast Cancer, Save the Children, The Carbon Trust, Groundwork London and WRAP (Waste & Resources Action Programme) for helping it deliver results.

External partners have provided a number of solutions, such as WWF helping to address environmental issues associated with water, cotton, wood, fish and palm oil sourcing, Oxfam encourages clothing recycling, and Groundwork is assisting the company with a campaign to reduce the use of plastic bags.

In a campaign launched in May, Marks & Spencer is charging customers for plastic bags in its U.K. stores; trials at 50 stores saw use of bags drop by more than 70 percent. Groundwork is using the proceeds to create or improve green living spaces, such as parks, play areas and gardens in neighborhoods throughout the U.K. Rose notes that if Marks & Spencer customers across all U.K. stores cut the use of plastic food bags by 70 percent, a total of 280 million bags would be saved each year.

Marks & Spencer also has engaged with groups that include farmers worldwide to develop renewable energy generation facilities based on anaerobic digestion and wind power. Partnerships with clothing and home suppliers in Sri Lanka, China and Wales have produced new “eco” factories.

The company also is working with the U.K. government to develop policy frameworks on issues that include carbon footprint reduction and the recycling of information labels for packaging.

Setting the pace
The approach to sustainability is drawing positive attention and awards. Geneva-based Covalence Retail Industry Report ranks Marks & Spencer with Wal-Mart Stores as setting the pace for the retail industry on environmental issues in 2006 and 2007. The Washington, D.C.-based World Environment Center awarded its 24th Annual Gold Medal for International Corporate Achievement in Sustainable Development to Marks & Spencer for linking sustainability extensively with its supply chain, operations and customers.

Greenpeace has rated Marks & Spencer as the top retailer for the use of wood from sustainable sources to make paper tissue, and Compassion in World Farming judged it the top retailer for its leadership in food animal welfare standards.

“We believe that Plan A supports the growth of our business,” says Plan A director Richard Gillies. “The current difficult economic climate will provide additional challenges but we believe that strong Plan A actions will provide short-term cost savings and longer-term competitive advantage.”