Communicating sustainability aspects of products using modern information technologies: the case of the retailer sector

Modern information technologies (MITs) are increasingly being applied by retailers to communicate within supply chains, and more recently directly with consumers. This report identifies and evaluates options for retailers to apply leading MITs to communicate sustainability related information to consumers. It reviews leading practice in the food, information and communication technology (ICT), automobile, do-it-yourself (DIY) and textile sectors of Europe, North America and Japan.

The MIT sector is developing through a number of different avenues, including the Internet, interactive screens, mobile technologies and customer club cards. Technological developments, such as RFID and i-mode technologies have enabled new ways for retailers to interact with consumers. While not fully mature as a communication technology, MITs can strengthen the message to the consumer by providing an interactive interface, which can hold more information than typical in-store or even beyond-the-store methods, such as the Internet.

The report suggests that as these technologies are so new to this application and are advancing, it is difficult to make many concrete conclusions regarding these technologies. However, several observations can be made:

• on the positive side, these technologies represent a more dynamic way to communicate sustainability criteria to the consumer
• they can allow the consumer to search for more information than ever before
• MITs have the potential to increase transparency, which is important for increasing consumer trust and loyalty, improving consumer’s awareness of the brand - these factors can possibly translate into the purchase of more sustainable products and the use of products in a more sustainable manner
• indirectly, they may also improve the sustainability of the supply chain - potential cost savings for the retailer may be realised from the decrease in advertising costs

• currently, many of these technologies present large implementation costs for retailers
• there is uncertainty about exactly where all of the costs will end up throughout the supply chain
• their potential to increase environmental damage and disagreement with consumer groups can cause a largeer problem
• their application in the retail to consumer interface has not yet been proven to be effective, and there is a concern that they will either not be useful to the consumer, especially regarding the in-store applications
• there is the potential that they could increase confusion and complexity among consumers