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“Just as Publix cannot be sustainable with- out the participation of all 146,000 associates, we’re also not an island. We cannot be sus- tainable without partnering with our entire supply chain,” says Hewitt. “Sustainability is not proprietary,” adds Brous. “We believe it is an industry movement that shares on best practices and we are more powerful together,” she says, noting joint efforts with retail com- petitors and trade organizations. The firm’s latest venture involves a “climate leaders’ part- nership” with the Environmental Protection Agency, and a verification process to certify and reduce its carbon footprint.
“In a company the size of Publix, with retail operations spread out across five states, manufacturing and distribution operations as well as various other support facilities, it is a challenge to capture all of those greenhouse gases, but we are doing it,” Hewitt adds.
2) SUSTAINABILITY WITH SUBSTANCE
Actions & Results: Publix takes a compre- hensive and multi-faceted approach, under the premise that sustainability is made up of three silos; environmental, social and eco- nomic. All three silos must work in tandem. Many environmental aspects get priority because they can often generate cash flow by reducing energy costs, for example. Addressing fuel efficiency of its transportation fleet, the company is weighing the pros and cons of converting its heavy-duty trucks to bio diesel and looking at mechanical and aerodynamic improvements, as well as restructuring deliv- ery routes to reduce number of miles traveled and increase utilization rates of those trucks.
Other worthy projects might be tabled because they can’t be justified from a cost standpoint. “At the end of the day, we have stockholders that we answer to, which is each one of us in being able to be a financially viable company,” Brous explains. After the GreenWise Market in Palm Beach Gardens became LEED-certified, people wondered whether Publix would do the same for all its new stores. “Well, no. That’s unrealistic to look at a grocer with a 1,000 store footprint and ask us that. What’s the economic impact? What’s the long-term affect? What’s our goal and how does that impact the customer? Are we being responsible stewards? “
“The ‘Get Into the New Green Routine’ program grew out of a philosophy at Publix that is intolerant of waste, and advocating what’s right for its customers, the community and the environment. That equates to a reduc- tion of 500,000 tons of greenhouse gases, enough to power over 64,000 homes for a year,” explains Hewitt.
Publix recycled 215,00 tons of cardboard last year, and about 3,000 tons of that was wax cardboard. “We also have been trying to
find a home for as much of our organic waste material as possible, working on ways to com- post, or otherwise convert that material into a soil amendment or a fertilizer-type product.”
Publix utilizes its GreenWise Markets as experimental laboratories, perfecting ideas into workable solutions with its eye on incor- porating them into its mainstream portfolio. Go into a new store, and a consumer might not realize the significant savings generated by the decorative, yet highly sustainable bamboo floors and fixtures. It’s why Publix uses soy coating on the roof and is aggressively pursu- ing solar power. Among its forward-thinking reclamation projects, the produce refrigeration ducts are efficiently re-circulating the heat to warm the building’s water systems. The mis- ters keep produce fresh without excess water waste. The track lighting may be aesthetically pleasing to some customers, but it’s also a more energy-efficient source. Consumers walking down an aisle may be caught off guard at first, as the lighting builds from dark- ness to brightness in line with their footsteps — a high-tech method of conserving energy.
Even though the fluorescent lights are cool-looking, you can feel that they’re putting off a little bit of heat, explains Hewitt. The LEDs are not only more efficient, but generate much less heat, which makes sense when you’re installing lights into a refrigerated case. There’s an argument against retrofitting refrig- erator cases with LEDs because of the immedi- ate investment. It’s justified because over the lifespan of the cases and the products, there’s definitely a return, adds Brous. In the pre- pared foods areas, Publix is working on new technology to avoid as much air conditioning or heat loss as possible through the ventila- tion hoods.
GreenWise Markets provides a controlled area to try new things, but the company is also realistic in how they will translate to a range of store formats. “Our goal is to be able to go into any format or size store and maximize its
potential, but starting from the ground up is definitely easier,” says Brous.
As retailers confront a difficult economic climate, Publix is relatively well-positioned to pursue its goals. “In tough economic times, we are a debt-free company. We are making acquisitions. We continue to be strong,” says Brous. Priorities change based on consumer needs, and the economy plays a significant part, but the commitment level doesn’t change. “We can take more risk in a tough economy, but we’ve always been very cau- tious,” she adds. “We are a very lean company. There’s not a whole lot of fluff and excess.”
3) SUBTLE STRATEGY
Classy, Not Showy: Publix steers away from “save the polar bears” hype, or flashy, over- the-top signage. It doesn’t want to yield unfair expectations, or veer toward exaggerated or misleading claims. “We don’t believe in funny math,” says Brous.
Publix chooses to stay out of politics and issues of Fair Trade, says Hewitt. “We don’t like anybody coming into our house telling us how to do business. We don’t go into other people’s either.”
In this regard, the concept of developing national standards for sustainability doesn’t make sense to Hewitt. “Sustainability really has a lot to do with company philosophy. It’s very company-specific. I like to think that our sustainability strategy is unique to Publix, not to say that it’s better than anyone else’s, but it works well for us.”
The company is turned off by the dogma around food miles labeling. Transparency in labeling is important. “We want to be careful not to confuse the customer by providing them with information that might be hard to understand or is contradictory,” says Hewitt. “It can be very complex. It can be so complex that if you look at the carbon footprint of a product, one product that might be consid- ered a healthy choice might have a larger car-
22 PRODUCE BUSINESS • MAY 2009