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Understanding of Product Sustainability

5 Exploring the Way Product Development of Consumer Goods Companies

5.5 Understanding of Product Sustainability

Shifting the focus from the company level to product development, this section covers the interviewees’ individual professional understanding of product sustainability. It results from their company’s approach towards sustainability as well as individual values and attitudes.

It is characterized by the interplay of three aspects: sustainability terminology, evolution of sustainability, and influence on sustainability. Figure 27 summarizes the findings.

Figure 27: Findings for Category “Understanding of Product Sustainability”

First, sustainability terminology covers the nature of sustainability and discloses which issues product developers subsume under the heading of sustainability and how they weigh them. Second, product developers’ expectations towards the evolution of the importance of product sustainability and the role of driving forces are discussed. Finally, product developers’ understanding of sustainability is shaped by the degrees of freedom they experience when making design decisions in their everyday work.

5.5.1 Sustainability Terminology

Before specific sustainability issues were dealt with, the definition and perception of sustainability were discussed with all interviewees. First, the individual connotations of sustainability were inquired without revealing the researcher’s opinion to avoid skewing participants’ statements. Then, a common understanding was established to ensure comparability between the interviews.

Overall, participants share an understanding of sustainability similar to the TBL approach.

They are aware that sustainability is a multidimensional concept collating economic, environmental, and social aspects. However, participants express different opinions on the question if sustainability is a status to achieve or rather a performance to improve. Some participants from companies only little experienced with sustainability management consider sustainability to be something that can be implemented and is then documented through certificates and labels. Thus, to them, sustainability is an absolute concept and therefore a status their products can achieve. However, most of the interviewees agree that in their corporate contexts sustainability implementation cannot be achieved by simply moving a lever. They consider sustainability to be the result of an ongoing process that takes time – especially in well-established companies:

Product developers define

Sustainability Terminology Evolution of Sustainability Influence on Sustainability

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Being an old dinosaur, we have to change. For us, sustainable development is actually a continuous process because you cannot tear everything down in an instant. Of course, you have to take your consumers along. #12, Household commodities While being aware of the TBL dimensions, most interviewees are not overly concerned with terminology or the academic discourse about relative and absolute approaches to sustainability. Instead, they quickly illustrate their definitions through mentioning several product characteristics and how these could be modified to enhance sustainability. These improvements range from using recycled materials across sourcing from local manufacturers to extending the lifespan of products. However, differences exist between product categories. While interviewees in charge of non-durable goods also emphasize aspects related to the logistics or packaging of their products, developers of durable goods focus mostly on material issues or working conditions in low-cost countries. Respectively, participants reveal a hands-on take on sustainability. Thereby, it becomes apparent that economic and environmental factors seem to outweigh the social aspects of sustainability.

However, participants indicate that this is less a result of their personal priorities but of their perceived area of influence as product developers. Taken together, the nature of their products determines how interviewees concretize the notion of sustainability:

I think that is the biggest issue about sustainability: it always has to be reevaluated for every product, for every product group, and for every industry. Automobile manufacturers or a detergent company have entirely different criteria that they apply.

#11, Furniture and lighting

If you go for lower material usage or rather for energy saving measures truly depends on the product and the production process. #29, Consulting

The literature supports the two most important observations regarding sustainability terminology. First, it is confirmed that environmental and economic aspects until today outweigh social aspects in the context of product development research (Thomé et al. 2016, p. 2205). This is attributed to extant criteria of socially sustainable products as they feature only indirect reference to actual products and are restricted in terms of improvements through design changes (Hanusch & Birkhofer 2008, p. 219). Also, the understanding of sustainability, as well as the relevance of single aspects, typically depends on the audience that is being addressed (Short 2008, p. 22). Second, Alblas et al. (2014, p. 538) showcase that it is of high importance to acknowledge the various meanings and consequences sustainability has for different industries and companies. Based on the findings from data analysis and literature, the following proposition emerges:

Proposition 1: Product developers’ understanding of product sustainability appears largely unaffected by the academic discourse and instead refers to the type of products they are in charge of.

5.5.2 Evolution of Product Sustainability

While discussing sustainability terminology, almost all participants brought up their expectations on the evolution of sustainability and its relevance to their everyday work. Even though their companies currently operate on different maturity levels with respect to sustainability, all interviewees anticipate sustainability to become an increasingly important factor in the long run. Those working for Sustainable Traditionalists and True Believers comprehend sustainability as a major possibility to gain competitive advantage within their mature markets. Most other interviewees grasp sustainability at least as an upcoming trend that is here to stay:

I believe sustainability is an emerging trend. And if you miss jumping on this trend, in five years you might stand there with the egg on your face if you are not on top of the game by then. #30, Consumer electronics

This trend is not necessarily perceived as predominantly driven by consumer behavior;

much to the contrary as this is often referenced as a major inhibitor for sustainability initiatives throughout the interviews (this will be explained in detail in Section 5.9.2). Still, most interviewees expect sustainability to eventually become crucial for their consumers’

purchasing behavior. However, they are not able to articulate why and when this change of mind should occur. Product developers seem to share the looming feeling that the sustainability discourse might suddenly pick up speed and that they might miss the bus on product sustainability if they procrastinate any efforts:

Altogether, the consumers are moving into a direction where sustainability gets more important and will also be necessary for our products someday. This is by no means to be ignored. #21, Body care products

Another reason why sustainability is of growing relevance for the everyday work of product developers is seen in further developments with respect to tightening laws and regulation.

Some interviewees indicate, for example, that the introduction of REACH or the extension of EED onto new product categories already moved sustainability-related issues up on their agendas. Also, interviewees not yet affected by specific sustainability regulations expect them to come sooner or later. Again, they are not able to explain why and when this should happen but share the vague fear of falling behind:

In the long-term with 100 percent certainty, there will be legislative requirements; I truly believe that. And most of the time the industry reacts like a pile of headless chicken.

Everyone suddenly dashes off. #17, Toys

Taken aside growing external pressure, all interviewees share the belief that technological progress (e.g. advances in bio-based materials or additive process technologies) will yield new possibilities for sustainability improvements. This interviewee states that most options

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for sustainability improvements he encounters in his daily work cannot be implemented in an economically beneficial way. However, he quickly relativizes this pessimistic view on future developments:

This is clearly a strategy to ensure survival for companies. Those firms that don’t look into alternatives will be in trouble. Even though it may not make monetary sense just yet, because of the long development lead times, it is wise for us to start looking into this now. #28, Home and garden commodities

The extant literature supports the findings from the data analysis. Taking a bird’s eye view, a high number of authors evaluate sustainability as an important cross-industry trend and expect that public attention for sustainability will likely increase (e.g. Fawcett et al. 2011, p. 119; Dyllick & Muff 2016, p. 157). Also, sustainability is seen as an important trend for the consumer goods industry (Priess et al. 2013, p. 6). Regarding consumer behavior, a growing appreciation of more sustainable products and also an increase in actual sales is expected (e.g. Steinemann et al. 2013, pp. 35–39) even though the absolute number of truly conscious consumers and the growth rates are still rather small. Shifting the focus on product development, Alblas et al. (2014) find that while incentives for sustainable business practices are absent or fuzzy in their case companies’ environment, product developers reveal a strong belief in sustainability being an important driver for future business.

Accordingly, the findings of the data analysis in conjunction with the extant literature lead to the following proposition:

Proposition 2: Product developers share the vague belief that product sustainability is to gain importance by means of changing consumer behavior and tightened regulations.

5.5.3 Product Developers’ Influence on Product Sustainability

During the discussion of the future importance of sustainability, several interviewees from Reactors, Premium Manufacturers, Minimalists, and Test Balloonists appear skeptical on actually possessing exercisable leverage for the improvement of product sustainability.

Their doubts are less based on unpredictable consumer behavior or technological feasibility but more a result of different company-specific inhibitors. For example, some participants stated only to have limited influence on the sustainability of their product as major improvement options with respect to their established product concept are rare. This may seem uncritical since almost all interviewees agree that sustainability progress also can mean making a lot of small steps instead of working on huge leaps forward. However, sometimes participants indicate that measures undertaken are too marginal to move the needle on overall product sustainability. Hence, sustainability improvements that are

implemented by product developers can appear to have next to no influence when looking at the whole product life-cycle:

I am personally engaged here because this is a topic close to my heart. I want to see us use compostable materials to package all of these products. However, that is more like a drop in the bucket. That does not make the product sustainable. #31, Leisure and sports equipment

The feasibility of more sustainability on a product level… well, the CPG behemoths might have other possibilities there, but for us? Dream on… #17, Toys

This concern is exacerbated when product developers experience decisions made out of their area of influence that have a strong negative impact on overall product sustainability.

This is particularly the case if companies are not deeply committed to sustainability but initiatives to improve product sustainability are driven by individual developers. Some interviewees appeared to be discouraged by such examples. One participant contrasts his perceived influence on product sustainability with the impact of the business-driven decision to use air transport instead of the much more environmentally friendly sea transport for shipping their products from the Asian manufacturers to the European markets:

Even if you consider a blister packaging that is not exactly favorable for the environment: how big is its impact compared to air transportation of the products to Europe? #25, Consumer electronics

An even more important issue emerging throughout the interviews is the problem of the lack of company power due to size and minimum order quantities. More than half of the companies from the sample are small or medium-sized, and most of them experience difficulties to source intermediate goods they deem more sustainable. Collaboration is seen as opportunity to overcome such roadblocks:

It has to be a collaborative effort, especially for completely new and innovative things.

That’s impossible without the right supplier. #21, Body care products

However, close collaboration with suppliers is the exception rather than the rule throughout the sample. Often, interviewees compare their company to automobile manufacturers regarding hypothetical order quantities to illustrate their limited possibilities and the lack of interest from the suppliers’ side. Even when it comes to only source material, sustainability requests do not always resonate well with the supplier base, as this interviewee points out.

His company is a well-known player in the international furniture markets. However, he is only able to source whatever suppliers offer to him:

If we would like to source chipboard made exclusively from Western European spruce, then we are allowed to ask for it… however, it is not like that is going to happen. #11, Furniture and lighting

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The notion that product developers believe to have little exercisable scope to enhance product sustainability is to some extent contrary to their perception about the evolution of sustainability: if the people developing the products expect product sustainability to become more important and at the same time experience few degrees of freedom to actually incorporate sustainability features, the question ‘Who else could make a difference then?’

emerges. While the individual inhibitors may indeed pose considerable barriers for the product developers, it seems that some interviewees (especially those working for companies not truly committed to sustainability) somehow try to let themselves off the hook.

At the same time, these interviewees often have (sometimes quite radical) ideas how product sustainability could be improved. However, they seem to be unsatisfied about the gap between their personal interest and their actual activities regarding product sustainability and try to blame it on issues that are allegedly out of their reach. This interpretation is supported by the fact that participants working for Sustainable Traditionalists or True Believers perceive their influence on product sustainability as rather high. While these companies expose an entirely different take on sustainability, they most probably face the same difficulties about technological feasibility, consumer behavior, or material sourcing but somehow manage to cope with them.

Thorough literature analysis returned the result that behavioral aspects in sustainable product development have only seldom been investigated until now. As introduced in Chapter 3.3, most authors focus on providing tools to support the development of more sustainable products or analyze the implementation of sustainability into existing development processes. Product developers’ attitudes and behaviors in a sustainability context are less often subjected to research to date. Two of the rare exceptions are Verhulst

& Boks (2012c) and (2014). They manage to shed a first light on the important role of human factors in successfully implementing sustainable product development practices and yield meaningful findings for companies being on their way towards considering sustainability. In general, however, literature assumes product developers can and want to implement every sustainability initiative that is technologically feasible. Company-specific and individual inhibitors for such initiatives receive little to no attention. Based on the empirical findings, the following proposition for further research emerges:

Proposition 3: Product developers believe to have little exercisable leverage to enhance product sustainability in their routine development tasks.