OPI APP DECEMBER 2023 B by OPI

Connecting the

business products world

BIG INTERVIEW

Alain Josse, RAJA Office

SCOPE 3 Understanding your value chain

December 2023

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INSIDE THIS ISSUE l North American partnerships hatched l Lyreco pulls plug on Lomax deal l Sustainable manufacturing: the need for commitment

l Navigating the jungle of ESG labels l Green Thinking Survey l Industry Week ’23 review l OPI Global Forum – looking to the future

CONTENTS 18 Big Interview The RAJA powerhouse 52 Preview: Ambiente Bigger and better 54 Review: OPI Global Forum Preparing for the future 56 Review: Climb of Life Fighting cancer together 58 Review: Industry Week ’23 Buzzing in the Big Easy 60 Review: NAOPA The winners of 2023

Big Interview: RAJA Office – packing a punch Alain Josse is no stranger to the business products industry, having worked for packaging reseller RAJA for the past 17 years. He was also a key part of the team that achieved tremendous success in the 1990s and early 2000s when Viking swept across Europe. The Frenchman is currently at the helm of RAJA Office which – somewhat ironically – includes all of the remaining Viking entities still active in Europe. However, while he fondly looks back on his prior experiences, Josse most definitely has his eyes on the future, looking to instil a growth mentality and a new dynamic across the business.

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THINKING 24 Focus Sustainable production 26 Spotlight Scope 3 explained 32 Opinion CSRD: are we prepared? 34 Advertorial Pukka Pads

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36 How to... ...pick the right ESG label 38 Advertorial The Navigator Company 40 Interview Inside Germany’s memo

FOCUS: UTOPIAN DREAMS

42 Advertorial Sylvamo

For manufacturers around the world, their commitment to environmental issues ranges from ‘absolutely business critical’ and ‘nice to have’ to ‘totally oblivious’. I can only assume this reflects the opinions of local consumers and governments. Is there a solution? There might be, but it’s likely a utopian dream. We need a political commitment to sustainability legislation around the world, standardised and easy for consumers and producers to understand, with targets. A commitment to the future.

44 Category Update Vendor sustainability 50 Research Green Thinking Survey

REGULARS 7 Comment 8 News

64 5 minutes with... April Fabien 66 Final Word Harry Dochelli

December 2023

14 Green Thinking News

COMMENT The OPI team EDITORIAL

Editor Heike Dieckmann +44 1462 422 143 heike.dieckmann@opi.net News Editor Andy Braithwaite +33 4 32 62 71 07 andy.braithwaite@opi.net Assistant Editor Kate Davies kate.davies@opi.net Workplace360 Editor Michelle Sturman michelle.sturman@opi.net Freelance Contributor David Holes david.holes@opi.net

SALES & MARKETING Chief Commercial Officer Chris Exner +44 7973 186801 chris.exner@opi.net Head of Media Sales Chris Turness +44 7872 684746 chris.turness@opi.net Digital Marketing Manager Aurora Enghis aurora.enghis@opi.net

EVENTS Events Manager Lisa Haywood events@opi.net

PRODUCTION & FINANCE Head of Creative Joel Mitchell joel.mitchell@opi.net Finance & Operations Kelly Hilleard kelly.hilleard@opi.net

PUBLISHERS CEO Steve Hilleard +44 7799 891000 steve.hilleard@opi.net Director Janet Bell +44 7771 658130 janet.bell@opi.net Executive Assistant Debbie Garrand +44 20 3290 1511 debbie.garrand@opi.net

All in it together? Perhaps

ypically, the publication of our Green Thinking edition coincides quite nicely with the annual UN Climate Conference. Not this year. We will definitely take a good look at COP28, taking place in Dubai, UAE, from 30 November – just look out for a write-up in the next issue. News of a US/China climate deal, announced just as OPI went to print in mid-November, certainly sent out encouraging signals ahead of the climate talks. It’s long been a no-brainer that without these two nations – the world’s biggest emitters of greenhouse gases – making some serious sustainability commitments, there’s only so much the rest of the world can do. But it absolutely is trying as this issue of OPI shows. There is so much to talk about, to consider and to be cautious about. On the latter point, for instance, I do feel that our industry is making progress as regards greenwashing, and I base this on countless conversations with unbiased experts on the topic.

Without [the US/China] making some serious sustainability commitments, there’s only so much the rest of the world can do Plenty of good stuff going on though – some of it because operators in our sector have an in-built moral compass which simply tells them it’s the right thing to do. But also as a result of society asking for ethical and socially responsible behaviour. I say ‘society’ rather than merely ‘customers’ because it has become more all-encompassing. David Connett refers to it in his Opinion (page 32). Business deals get delayed or fall through because companies fail to impress with their ESG strategies – investors don’t like that. It’s difficult – not to mention resource- and money-sapping – to get it right. Comprehensively ‘greening’ production processes is incredibly involved (page 24). Addressing the ‘Scopes’, especially Scope 3, is a minefield (page 26). Or choosing among the many options of ESG standards and labels (page 36) – which one is the most appropriate, especially for firms operating globally? I sincerely hope that, in addition to highlighting the impressive sustainability achievements of so many organisations in our sector, we’re also providing some much-needed answers in these pages. Talking of impressive: take a look at the winners of this year’s North American Office Products Awards (page 60) announced at Industry Week ’23 (page 58). HEIKE DIECKMANN, EDITOR See you in 2024 – happy holidays!

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December 2023

NEWS

Analysis: A spirit of partnership

OPI finds out more about two agreements that have been signed recently in North America, aimed at strengthening the independent dealer community

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Within the space of a few days in mid-October, two strategic developments were announced involving leading independent reseller organisations – one in the US, the other in Canada. The first came from national accounts specialist AOPD and jan/san buying group AFFLINK. They revealed a partnership that “will allow all members of each organisation the opportunity to take advantage of the membership options of each group”. They include, among other things, access to all preferred supplier programmes, national account contracts, training, and marketing and technology services. Speaking to OPI, AOPD Executive Director Mark Leazer confirmed the agreement is essentially an optional reciprocal programme between the two organisations. He explained: “AOPD has contracts in the OP space and AFFLINK has contracts in the jan/san, facilities and foodservice categories. We felt it would help both groups to allow access to each other’s contracts and membership programmes.”

MUTUAL BENEFITS Much of the groundwork for the two parties coming together was laid by Perry Office Plus President HB Macey, who saw an opportunity for a stronger relationship. He introduced AOPD Director of Sales Tom Buxton to Ron Wright, AFFLINK’s Senior Director of National Accounts, and it quickly became apparent there were benefits for both organisations. AFFLINK CEO Michael Wilson said the agreement will provide a low barrier of entry for

Michael Wilson

AOPD dealers into the three main categories it operates in: industrial packaging, foodservice disposables and jan/san. “We have the vendor relations, the marketing tools and the sales training capabilities to provide a much shorter ramp-up time,” he told OPI. Wright pointed to the better back-end programmes AOPD members will now enjoy with AFFLINK’s preferred supplier partners. He also highlighted the access to AFFLINK’s own brands – AFFEX, AFFEX Advantage and AFFPACK – that it has been able to develop in recent years using the leverage of parent company Performance Food Group – a $60 billion powerhouse. There is some blurring of product groups in cooperative and government contracts, namely the possibility of selling cleaning supplies on an office products agreement. However, to a large extent – especially with group purchasing organisations (GPOs) such as Vizient – categories are clearly defined. The new agreement therefore opens up possibilities for OP resellers to sell into the jan/san space and vice versa. COMPETITION CONCERNS QUELLED It naturally leads to the question of increased competition between independents: if I am an AOPD member selling through one of the group’s GPO contracts, won’t an AFFLINK distributor now be able to muscle in on my turf? While, in theory, this is possible, it is a potential scenario both organisations are playing down. “It’s all about the customer relationship,” said Wright. “Take a hospital, for example; there is always an ‘alpha dog’ there, whether it is a Grainger, a jan/san independent or an

We have the vendor relations, the marketing tools and the sales training capabilities to provide a much shorter ramp-up time

Mark Leazer

OP dealer. If it happens to be an AFFLINK member which has a facilities contract, this operator can now leverage the relationship to try and win business in the OP space. It is the same for AOPD, just coming at it from a different direction.” For Leazer, the market opportunity is so great and existing market shares so fragmented that there is a much bigger picture to consider. “If you look at [GPOs] OMNIA Partners, Vizient and Premier, they have thousands of end-user customers and we are just touching the tip of the iceberg at the moment.

“The prospecting opportunities we have are enormous. If there happens to be any conflict, we will handle it appropriately. At AOPD, there are bylaws which address this issue and they will apply to AFFLINK members that join. But overall, we just see tremendous synergies for both groups.” Historically, AFFLINK has had a strategic relationship with Independent Suppliers Group (ISG) and this programme is still in effect. How it will evolve in the longer term has not yet been determined. It was confirmed, however, that the agreement with AOPD has nothing to do with the fact new ISG CEO James Rodgers has come from Network Services, a group which competes with AFFLINK. Talks between AOPD and AFFLINK began well before the ISG CEO change was announced and there is no suggestion of any shift in allegiances between OP and jan/san groups.

COMPLEMENTARY NETWORKS With Denis out of the equation, it meant there was very little geographical overlap between the two groups – and even less following Staples’ acquisition of Beatties earlier this year. Bukta and her counterpart at Novexco, Denis Mathieu, had actually got the ball rolling at the OPI Global Forum in May 2022, waiting until the formal establishment of CWS in January 2023 before taking the idea further. Now, by combining purchasing, CWS and Novexco believe they will strengthen the wider IDC in Canada and make it a more attractive distribution channel for manufacturers, not only for branded items but also for private label opportunities. There will naturally be some disruption for the vendor community in terms of partner selection; however, with about 75% of the supplier base common to both groups, it is hoped this will be kept to a minimum.

There is no legal connection; it is an alliance where we are going to work together to identify opportunities “The initial reaction from suppliers has been very positive,” said Mathieu. “CWS has 170 stores; we have 100 outlets, plus our wholesaling and contract channels. That is a very strong network and the combined volumes will be better for all of us.” Steps are well underway for changes to come into effect in 2024. Both CWS and Novexco have five product managers who will jointly sit down with vendors in their respective categories. Going forward, dealers from each group will also be providing input into product selection, especially as regards new and growing segments which will need developing and/or expanding. The two partnerships are good examples of independent reseller organisations recognising wider trends and coming together to provide opportunities for their members and vendor partners. This is critical as industry consolidation continues and purchasing habits evolve.

December 2023

STRENGTH IN NUMBERS Meanwhile, across the border in Canada, leading players Canadian Workplace Solutions (CWS) and Novexco have announced a partnership “dedicated to increasing competitive buying conditions” for independent dealers across the country. With the terms “joint venture” and “strategic alliance” also used in the PR to describe this development, OPI had been wondering whether an actual merger of the organisations was on the cards, but this suggestion was swiftly kicked into touch. “There is no legal connection; it is an alliance where we are going to work together to identify opportunities and negotiate with vendors to keep both groups competitive,” confirmed CWS CEO Angie Bukta. The backdrop to the need for CWS and Novexco to come together as they have is the ongoing market consolidation in Canada, particularly with Staples having bought some leading dealers in the past 18 months. In fact, Staples’ acquisition of Denis in 2022 paved the way for the new alliance. Prior to that, while CWS and Novexco recognised the

Angie Bukta and Denis Mathieu

NEWS

benefits closer cooperation would bring, the presence of then Basics member Denis in the east of Canada – Novexco’s stronghold – was a source of conflict. As the independent dealer channel (IDC) continues to shrink, this – along with changes to product assortments – creates challenges in areas such as minimum order quantities and price competitiveness.

NEWS www.opi.net 10

Lyreco/Lomax deal abandoned after prolonged investigation At the end of October, Lyreco confirmed it was ending its interest in acquiring Lomax following a lengthy probe by the Danish Competition and Consumer Authority (DCCA). Lyreco had announced its intention to acquire the Denmark-based reseller back in August 2022. At the time, it was hoped the transaction would close in the first half of 2023, but the DCCA’s investigation took longer than originally planned. Indeed, as late as September of this year, it confirmed it had sent a new round of questionnaires to the companies’ mutual customers. In the end, the DCCA concluded that “a merger between Lyreco and Lomax would significantly harm competition if completed”, adding that its investigations showed the two resellers “are close competitors”. “The parties presented their own data and analysis, and the agency has tested both its own and the parties’ calculations in a new study,” the competition watchdog stated in a 1 November statement. “Our further investigations did not lead to a change in the conclusion that the merger could significantly harm competition.” In response, Lyreco and Lomax expressed their disappointment and frustration in the decision, adding that they disagreed with the DCCA on its understanding of the Danish business supplies market. “During the entire notification process, [we] have encouraged the DCCA to engage in a constructive

dialogue regarding the proposed transaction. In spite of these efforts, it has generally been a difficult process,” the resellers stated in a joint press release. They added: “Despite both companies’ continued interest in expansion, trying to convince the DCCA has proven to be impossible, thus withdrawing [...] is in each company’s best interests. Lyreco and Lomax will now separately continue to explore growth opportunities in the market to benefit their customers.” In particular, it will be interesting to see the direction Lomax’s owners take. Presumably, they are still open to selling the business as they brokered a deal with Lyreco in the first place. It may open the door for the likes of Wulff to further its presence in Scandinavia or for RAJA to enter a market it is clearly targeting for its office supplies business (see Big Interview, page 18).

BradyIFS/Envoy Solutions merger completed

Midwich makes Germany acquisition

US jan/san distribution firms BradyIFS and Envoy Solutions are now operating as a single organisation, the previously announced deal having become effective 1 November. It has created a business with around $5 billion in annual revenue which employs nearly Ken 6,000 staff across 180 Sweder locations in the US. The transaction sees private equity firms Kelso and Warburg Pincus, along with BradyIFS management, collectively becoming the majority shareholders in the companies. They also control the board of directors. Envoy Solutions’ former owner FEMSA – which received $1.7 billion in cash from the deal – retains a 37% stake. The new BradyIFS/Envoy Solutions entity will be led by BradyIFS CEO Ken Sweder. He promised the companies would “win as one” by coming together “to deliver the best value for our customers, suppliers and associates”.

Audiovisual specialist Midwich is to acquire a German distributor in a deal worth up to €22.1 million ($23.5 million). The UK-based firm has signed a definitive agreement to purchase the share capital of ProdyTel Distribution, a provider of professional audio and technical solutions products based near Nuremberg. Through its German subsidiary Kern & Stelly Medientechnik, Midwich will acquire 51% of ProdyTel for an initial cash consideration of €8.5 million. Put and call options are in place for the purchase of the remaining 49% in June 2024 for a fixed amount of €8.1 million. An additional performance-linked payment of up to €5.5 million will be made in 2026. ProdyTel was founded in 2003, originally as a manufacturer of audio codecs before switching its focus to distribution in 2014. From there, it has developed a strong vendor portfolio, including premium brands Biamp, Aver and Jabra, with a focus on the corporate and education market. In 2022, the firm reported revenue of €22 million.

NEWS

Staples Benelux rescued

BOSS names interim CEO The BOSS Federation has welcomed Debbie Nice to the interim CEO position while current CEO Amy Hutchinson takes maternity leave. Nice – who left EVO Group earlier this year – has over 35 years’ experience in the sector.

Staples Benelux has been acquired by online ink and toner specialist 123inkt. Following market rumours, Staples Netherlands was declared bankrupt by a Dutch court on 17 October, with its operations ceasing immediately. Wholesale customers reportedly switched their trade to Quantore, ADVEO Benelux and soft-carrier. About two weeks later, it was confirmed that Staples Netherlands – as well as its operations in Belgium and Luxembourg, which had not been part of the bankruptcy proceedings – had been acquired by 123inkt in a move that saved “most of” Staples’ 160 jobs. The transaction marks the end of the short-lived interest in the office products channel by private equity firm Standard Investment. As well as Staples Benelux, it had purchased the Staples Germany retail chain and Office Centre store network in the Netherlands. All three of those acquisitions ultimately resulted in the businesses collapsing. 123inkt owner and founder Gerben Kreuning described Staples as a “valuable addition” to his organisation, which is now positioned as a “total supplier of office supplies, facility products and furniture for business customers”.

OT Group makes brand changes

UK multichannel operator OT Group has announced that its contract business, going forward, will go to market under the Office Depot name. It marks the end of the OfficeTeam and ZenOffice brands. OT Group bought Office Depot Europe’s larger mid-market, major and public sector contract customers in the UK and Ireland in 2021. OT Group CEO Andrew Jones said the decision to realign its contract division was based on the need to provide clarity to customers. Moving forward, the group will use two distinct brands within its market approach – Office Depot for the contract space and Spicers for its wholesale channel offering.

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Double A buys Reflex

ON THE MOVE

Iconic Australian paper brand Reflex has a new home following the withdrawal of Opal Australian Paper from the office paper segment earlier this year. Reflex has been acquired by Thailand’s Double A, with the brand set to be relaunched into the market at the beginning of 2024. “Our Double A premium brand, complemented by Reflex, will provide customers with a highly recognised, complete and well-supported branded product offering,” said Tim Irvine, Double A’s Senior Channel Development Manager ANZ.

B2B change at Staples Canada Staples Canada has named Chris Saniga, former Head of Canada for Facebook’s parent company Meta, as Chief B2B Officer. His appointment coincides with the departure of Michelle Micuda, an 18-year veteran of Staples Canada. Gebauer joins Steinbeis Recycled paper manufacturer Steinbeis has appointed Marc Gebauer – who spent almost 20 years at Lyreco Germany – as its next Commercial Director and joint Managing Director. He succeeds Ulrich Feuersinger, who will retire on 1 April 2024. Logitech names CEO Logitech has named experienced FMCG and retail exec Hanneke Faber to succeed Bracken Darrell as CEO. Faber, a former COO at Ahold Delhaize, joined the tech giant from Unilever. Imperial Dade creates COO position Imperial Dade has created the new role of COO and tapped experienced exec Terry Owen for the job. Owen previously spent 28 years at Fastenal and was named its COO earlier this year. Staff moves at OT Group OT Group has announced a series of promotions and appointments. Martin Weedall became COO while former Group Sales Director UK & Ireland Stuart Derbyshire was made Chief Sales Officer. Michael Harrison joined as CFO. Staples role for Shady Mike Shady, formerly SVP Online at retailer Lowe’s, has been named Chief Digital Officer at Staples in the US. He is responsible for accelerating progress at Staples.com and Staplesadvantage.com. Highlands promotes internally Liz Bateman Grove has been promoted to the Marketing Director role at Highlands. She first joined the sales and marketing agency in 2018.

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Quocirca’s print sustainability trends

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Print research organisation Quocirca has said vendors need to offer more clarity around the sustainability credentials of products or risk losing their competitive position. According to Quocirca’s Sustainability Market Trends Study 2023, 69% of surveyed employees from SMBs, mid-market organisations and large enterprises confirmed their firms formally track the environmental performance of their print supplier. Meanwhile, 95% said their businesses’ sustainability goals influence supplier choice, and 46% believe it has impacted the decision to “a great extent”. Another finding showed that only 31% of companies are extremely satisfied with the sustainability information

provided by suppliers, indicating 69% feel vendors could do better. Quocirca’s report noted a growing urgency among companies to implement sustainability strategies, which are increasingly influencing print infrastructure buying decisions. As a result, it’s more important than ever for suppliers to deliver sustainability information. In response to more demand, the study found 77% of suppliers are accelerating their green strategies, rising to 81% in Germany and 84% in the US. It also looked at the main drivers behind implementing such initiatives. The report showed that improving operational efficiency, saving money and meeting industry standards are the top three reasons organisations make environmental performance investments. Further highlights from the report include: • Seven in ten decision-makers believe it’s important suppliers provide a range of sustainable products and services. • 80% said they are willing to pay a premium for items with environmental features, despite the cost of sustainable products being cited among the top challenges for firms to reduce their environmental impact. • 31% are using remanufactured or refurbished hardware, or are leveraging environmental analytics. • 70% said the digitisation of paper-based processes was a “central pillar of sustainability”, second only to the adoption of a cloud platform (75%). The full study can be purchased from: https://print2025. com/reports/quocirca-sustainability-trends-2023/

Lyreco’s GHG emissions validated

TD SYNNEX focuses on circularity

Workplace reseller Lyreco announced that Science Based Targets initiative (SBTi) has approved its greenhouse gas (GHG) emissions reduction goals, including reducing absolute Scope 1 and 2 GHG emissions by 50% by 2030 from a 2019 base year. The SBTi’s validation team has classified Lyreco’s target ambition and determined that it’s in line with the 1.5°C trajectory which was established under the 2015 Paris Agreement. Scope 1 refers to Lyreco’s direct GHG emissions, including those associated with fuel combustion in fleet vehicles, boilers and furnaces, and refrigerants. Scope 2 relates to indirect GHG emissions from energy generated offsite and consumed by Lyreco. The reseller has also made a commitment in relation to its supplier base. Lyreco has confirmed that 76% of its suppliers – by emissions – which provide purchased goods and services as well as upstream transportation and distribution, will have science-based targets in the next three years.

Tech distribution giant TD SYNNEX has shared an updated strategy for its services business unit to drive the circular economy with partners following a strategic review. It will now concentrate on providing additional trade-in and IT asset disposition options which will enable partners to encourage customer investment in IT products and services, while also meeting their sustainability obligations. These commitments are in addition to financial services that TD SYNNEX currently offers, including tech-as-a-service, which allows partners to suggest any combination of products and services on a subscription basis. Partners will also be able to use Flexscription TD CAPITAL to access end-of-contract options from the outset. Another element of the new approach includes a set of value-added services, meaning partners can offer tailored configurations, ‘bill and hold’ services, extended warranty options and net zero consultancy services to customers.

Manufacturer Exacompta is envisaging Global Recycled Standard (GRS) certification for a growing proportion of its product portfolio. GRS is a voluntary product standard for tracking and verifying the content of recycled materials in a final product. Alongside some items from the Exactive luggage range as well as the desk mats and pencil cases from the Teksto and Maïa lines, more products are set to be developed for GRS certification in 2024.

Antalis furthers carbon offsetting Antalis UK has continued its nine-year partnership with Forest Carbon and, in November, hosted a tree-planting day at its woodland creation project based at The Croft in Cumbria, UK. Antalis welcomed customers Egan Reid, The Printroom and Coventry Building Society to the event. The organisations planted a native oak, adding to the 9,000 broadleaf and coniferous trees previously planted on the site as part of the distributor’s carbon offsetting scheme. The Croft is one of three schemes Antalis supports alongside Forest Carbon in the UK. Near Kettering, 4,000 trees have been planted, with 1,000 tonnes of CO2 capture underway. Meanwhile, around 32,000 trees have been planted in Northumberland, meaning a further 4,000 tonnes of CO2 will be captured. Antalis has also partnered with Forest Carbon on an international project – ECO2 Rubber in Guatemala. This scheme has restored approximately 2,000 hectares (20,000 sq m) of degraded, overfarmed land and created around 300 jobs in low-access communities. According to the distributor, Antalis and its customers have planted almost 50,000 trees, restored 30 hectares of ecosystem and captured over 9,000 tonnes of CO2 to date.

Epson extends printer warranties

GREEN THINKING NEWS

Exacompta aims for GRS certification

Print OEM Epson has established an extended warranty and parts programme for its business printers – increasing typical product use and replacement cycles in an effort to support end-user and channel partner aims of improved sustainability. The new scheme will prolong average contracted printer life cycles by up to three years to a maximum of eight. Epson explained that its inkjet printers, using heat-free printing technology, have fewer stresses placed on their serviceable parts than printers using laser technology. They also use fewer consumables than laser printers, making them easier to service and manage. Epson Europe spokesperson Gareth Jay said: “By extending the warranty period and providing an easy parts replacement programme where needed, we’re able to provide a ‘peace of mind’ solution to using products for a much longer period of time. By doing this, we can extend the replacement cycle and reduce the need to create new products and dispose of the old. “This is something we know our channel partners and end users want – to be able to continue using working products rather than replacing them.” Henning Ohlsson, CSR Director at Epson Europe, added that the new programme moves the print OEM closer to its own goal of being “underground resource free” by 2050.

Essity advances recycling initiative

December 2023

Health and hygiene vendor Essity has announced the launch of a production line for professional hygiene tissue products with an unusual USP – the original materials consist of used food and milk packaging. The latest expansion of Essity’s plant in Hondouville, France, has increased the facility’s recycling capacity by 40%. The site recycles 25,000 tonnes annually, equivalent to 60% of all collected, sorted and recycled food and beverage cartons in France. In addition, the production line recycles “almost all” of the materials in the packaging, including plastic and aluminium. Essity then uses the fibre raw material to manufacture tissue products under the Tork brand. With the aim of achieving net zero emissions by 2050, the company has similar recycling initiatives in Germany, the Netherlands and Ecuador.

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IN BRIEF

We have so much of the clean technology [...] we need that will help us reach net zero – it’s not an innovation problem. What we have is a scalability problem Kate Smaje, Global Leader McKinsey Digital, McKinsey & Company

$62 billion

Estimated value of the global green technology and sustainability market by 2030 – up from $17 billion in 2023

EcoVadis upgrade for Exacompta

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74%

Reduction of p pollution e lastic pellet n by the Eurovisaged Commissio pean n by 2030

85%

Percentage of worldwide e-waste sent to landfills and incinerators

New guidance for sustainability deals

UK regulator, the Competition & Markets Authority, has published its Green Agreements Guidance to outline how firms can legally make agreements addressing sustainable goals. It aims to clarify when these contracts that deal with climate change will be exempt from competition law.

EcoVadis has awarded Exacompta the Silver award, following its receipt of the Bronze medal in 2022. The vendor ranks in the top 9% of firms globally for CSR performance. In the field of responsible procurement, it’s in the top 7%.

159 million tonnes Estimated plastic waste in 2023, according to EA Environmental Action

Brother launches Printer Pick Up

Brother New Zealand rolled out its Printer Pick Up service across the country at the end of October. The recycling initiative allows customers to have their old printer – of any brand – and new Brother printer packaging couriered to e-waste recycler Recycling Group.

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PICTURE OF THE MONTH

Approximately 70 ministers, negotiators and climate leaders from around the world attended Pre-COP28 between 30-31 October – a preparatory meeting in advance of COP28. The summit aimed to help countries lay the groundwork for negotiations and set the tone for the COP28 meeting which will begin 30 November.

BIG INTERVIEW

RAJA OFFICE: packing a punch

Industry veteran Alain Josse is not relying on past glories to rejuvenate previously struggling entities and turn RAJA Office into a pan-European business products powerhouse

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lain Josse is no stranger to the business products industry, having worked for successful packaging reseller RAJA for the past 17 years. He was also an integral part of the team that achieved tremendous success in the mid-1990s and early 2000s as Viking swept across Europe. Now, the Frenchman finds himself at the helm of RAJA Office, which ironically includes all of the remaining Viking entities that are still active in Europe. However, while he cherishes his prior experiences, Josse most definitely has his eye on the future, looking to instil a growth mentality and a new dynamic across the business, as he tells OPI’s Andy Braithwaite.

OPI: Alain, can you start by giving us a brief overview of your career to date? Alain Josse: I began my professional life at Henkel where, among other things, I was in charge of purchasing packaging supplies, so I was familiar with the RAJA name even back then. In the mid-1980s, I joined Xerox and was responsible for the purchasing and marketing of reprographic paper and assorted supplies. That was my first experience in a B2B environment and also in direct marketing because, at the time, Xerox had a small catalogue – 200 pages or so. Then, at the end of 1991, I received a call from Graham Cundick at Viking who asked me if I would be interested in joining Viking France, which was just about to be launched. I had read a lot about the incredible growth of Viking in the UK and its success in the US, so I accepted and joined as Category Manager. It was a tremendous journey and I learnt so much about providing a good customer

experience which has proven priceless over the rest of my career. In fact, I loved it so much that I asked to be involved if we ever expanded into other countries, and this is what happened. I was part of the team that opened in Belgium, the Netherlands, Germany, Italy, Spain, Switzerland, you name it. It was wonderful, rolling out the Viking model into all these countries and finding the same type of acceptance – and success – from the market. When Viking was sold [to Office Depot], I became Merchandising Director for Office Depot France and, in 2006, decided to look for something else. I chose to join RAJA as Purchasing Director. One reason for this decision was Danièle [Kapel-Marcovici, CEO of RAJA Group] who I recognised as an inspirational leader, not unlike Irwin Helford at Viking until that business was sold. Fast forward another 13 years, we made the first acquisition of the Staples Solutions’ companies from Cerberus, followed two years later by the transaction with Aurelius for Viking. At the start of 2022, Danièle asked me to become Managing Director of all the office supplies activities of the group which, as you know, we call RAJA Office.

BIG INTERVIEW Alain Josse

The idea of diversification was nothing new for us; we started in 2007

OPI: Just remind us of the make-up of RAJA Office. AJ: We operate our six brands in ten countries: France (JPG, Bernard, Welcome Office), Italy (Mondoffice), Spain (Kalamazoo), and then we have Viking in the UK, Ireland, the Netherlands, Belgium, Germany, Austria and Switzerland. We have six distribution centres dedicated to our office supplies and jan/san activities.

December 2023

OPI: Given your background, what was your role in the strategic decision to acquire those businesses? AJ: I think Danièle would give you a better perspective on this, but it is a move I was in favour of. To provide some background, the idea of diversification was nothing new for us; we started in 2007 when we acquired a small, local jan/san reseller called L’Équipier, which was integrated into RAJA France. A year later, we added Welcome Office, a start-up online office supplies business we still have today. Among the discussions I had with Danièle at the time was to take a hard look at the packaging supplies business. We acknowledged that it is a highly specialised market and less broad than the office supplies sector, which includes all types of businesses, regardless of size and focus.

Therefore, even though we had – and still have – a very strong position in the packaging segment, I was convinced we needed to branch out into other markets. When the opportunity [to buy] came up, Danièle asked the leadership team to work extensively on the project. Clearly, I had some relevant experience, but I was also very careful to reiterate I had not been active in this segment for a number of years and was not going to rely on the past. Similarly, when I took on the leadership of RAJA Office, it was not about trying to revive past glories. There is much we can learn from what made the acquired businesses successful, but it’s a different world today and we’re not going to go back in time.

Alain Josse BIG INTERVIEW www.opi.net

These cover more than 150,000 sq m (1.5 million sq ft) and mean we can deliver across Europe in 24-48 hours. Our product assortment totals about 200,000 SKUs, most of which we stock ourselves. RAJA Office is approximately 50% of total group revenue, so about €800 million ($850 million). We employ around 2,500 staff out of 4,500 people across the RAJA Group.

OPI: How have you been performing? AJ: If we go back to 2022, it was a year of contrast. It started well, following on from what we had seen in 2021, but then inflation kicked in. An overall slowdown occurred, although this was masked on the top line by high inflation. We were also challenged by the well-documented paper shortage, which was an incredibly disruptive factor for the office supplies market. Because it was not a short-term issue, it triggered a change in customer behaviour that, frankly, none of us wanted to see on top of all the other obstacles. OPI: What changes do you mean, exactly? AJ: The acceleration of the digital consumption of data more than anything else.

If businesses cannot easily access paper, or if it becomes too expensive, they will reconsider how they manage the flow of data and decide they don’t need to print so many documents. This, plus a contraction in supplies due to completely having to rethink the office environment post-pandemic, was a double whammy for our sector. It’s not just digitalisation and paper usage. Another major issue for me has been the evolution of pricing. Customers are living with the consequences of inflation in all areas; this is forcing them to question their purchasing behaviour and consider cheaper alternatives. It means where previously they may have bought a branded product, they can now live with getting a cheaper own brand or white label. As a reseller, I don’t have a problem with this because RAJA has an own brand strategy. But we also know private label cannot exist without strong manufacturer brands. Therefore, for me, the bigger picture question is not exclusively about decreasing prices, it’s how we encourage a more competitive and reasonable approach to pricing for all of our products – because customers only have so much to spend.

OPI: Have you had these discussions with your RAJA Office suppliers? AJ: Certainly, but not enough of them yet. I can understand it from their point of view. Many had a great year and the overall value of their products rose tremendously. However, to what extent will they reinvest back into the business? OPI: Value has increased largely due to inflation, not volume growth, hasn’t it? AJ: Exactly. That’s why manufacturers have to take a longer-term view. If we do not have alternatives to offer the market except for very cheap versions, its ultimate value will eventually decrease. Again, as a distributor, I can live with it because I can find other options, but for manufacturers, it’s a different story. OPI: We digressed from talking about your financial performance. AJ: We did. Going back to 2022, even though we had those bumps, the overall result was still good because price basically compensated for the drop in volumes.

BIG INTERVIEW Alain Josse

OPI: What do you suggest? AJ: If I may make a comparison with the packaging supplies sector, we would generally approach this type of challenge by working directly with the manufacturers. Granted, it may be easier because there are only so many changes you can make to a cardboard box, but we look at areas such as composition, the layers of cardboard and how they are assembled, the type of glue, etc. We also consider where items are made, and how we could potentially bring production closer to our end markets. The result is profitable discussions, both for the suppliers and ourselves. I know it’s more difficult when it involves pre-marketed branded products. You really have to rely on manufacturers choosing to come up with more competitive alternatives without compromising the value-for-money ethics we have all tried to develop. Nevertheless, I believe there is a middle ground that can benefit both parties.

2023 has been a more challenging year. We knew it would start very slowly, but had expected – like many others – a recovery in the second half. Unfortunately, that hasn’t happened. RAJA Office is still growing, though not as fast as we had planned. OPI: Growing because of price inflation? AJ: Not really. It is more due to our efforts in activating our customer base and being able to grow our volumes. Not by a lot, but they are moving in the right direction.

I believe breaking even [for Viking] is still within reach OPI: Do you notice big differences between the various markets you operate in? AJ: There are some local differences and some units are performing better than others, but the factors influencing all our markets are essentially the same. OPI: You had predicted Viking would break even in 2023. Is that still on the cards? AJ: I believe breaking even is still within reach if we achieve our commercial and financial targets for the rest of the year. OPI: When you say ‘activating’ customers, do you mean trying to take share? AJ: For years, even going back to just before the pandemic, I have heard endless talk of declining consumption, the paperless office and what a difficult environment it is. But I know what percentage of the market we currently represent – and if it was 50%, I would certainly be more preoccupied with the global state of the sector. We have enormous potential to grow share of customer wallet and that is what we have been addressing in 2023. We are finding ways to generate more orders, partly because we are adding non-core office supplies lines to compensate for the longer-term secular declines in traditional supplies.

Pictures left & middle: RAJA’s Mondoffice and Viking sites Below: Alain Josse with RAJA Office’s managing directors and senior executives

December 2023 21

Alain Josse BIG INTERVIEW

Ultimately, products are part of our entire service proposition. Therefore, it’s a question of being aligned with what customers require. In our industry, they’re looking for good products, good quality, quick delivery and friendly, knowledgeable service from people they can either talk or write to or see face to face. That’s about it; it’s not rocket science, but you have to execute. To paraphrase Irwin Helford: “If we are delivering excellent service, customers will buy from us again and again.”

We cannot be strong internationally without being strong locally OPI: It could be seen as a risky move, acquiring these large businesses which, frankly, were not performing well. AJ: It is no secret all the office businesses we acquired were not in good shape and had been on a declining trajectory for a number of years. Our top priority, therefore, was to get them back on track, and that is what we did; we stopped the sales declines, and the businesses are growing again.

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OPI: Surely, you can’t just snap your fingers and generate sales growth. How did you turn things around?

AJ: There were many different components and it was not a one-size-fits-all approach. Underpinning it all, though, was knowing what it takes to be a good distribution partner and how to achieve customer excellence. OPI: You’ve got all these individual brands which have a high degree of autonomy. How do you leverage the wider RAJA Office structure to be part of the RAJA Group? AJ: Firstly, the group culture is absolutely to have all managing directors in charge of their businesses, with full responsibility for P&L. They all report to Danièle and the executive committee – including myself – and I feel lucky to work with a very strong and experienced team of RAJA Office country leaders. However, there is definitely the need to put on top of that a layer of – I don’t want to say ‘centralised’ – but what we call ‘coordinated synergies’. An obvious one is purchasing. We had already adopted this approach for contract discussions with European vendors after the Staples Solutions acquisition. After the Viking transaction, we then gave responsibility for negotiations to the team in Venlo because this was something they were experts in. Now, we are looking at other areas because we feel there are both business and functional synergies we can develop. A prerequisite is that these must deliver more value than the subsidiaries could achieve themselves – they cannot impair the ability of our business units to perform and be relevant in their markets.

OPI: What in particular are you looking at? AJ: I cannot elaborate too much at the moment. However, in addition to purchasing, we’ve made significant progress on sales, specifically with our international contracts business. As you know, we appointed Brian Hall [formerly with Office Depot] in early 2022 to lead this initiative. He has a small team working with him in close collaboration with the local commercial organisations. That’s critical because we cannot be strong internationally without being strong locally. The international key accounts unit is responsible for winning business, but the contracts are serviced at a local level. OPI: I didn’t think contracts were part of your acquisitions. AJ: It’s complicated. After the carve-outs with Cerberus and Aurelius, it was not clear-cut. In all the acquisitions, there was some activity with larger accounts and remnants of contracts with several international customers. It was not starting from scratch, but with some of the contracts coming to an end, it was important to set up this activity sooner rather than later. OPI: How’s it going so far? AJ: I don’t want to sound pretentious, but I believe we have a role to play in this segment. Customers are definitely looking for reliable partners and we have already signed a number of significant pan-European contracts which demonstrate the validity of our strategy. Obviously though, we’re still in the early stages. OPI: Is this business limited to the ten markets where RAJA Office operates? Or are you able to service clients in other countries where RAJA has a presence? AJ: Currently, we are delivering to all ten RAJA Office markets, out of 19 in which the RAJA Group operates. One obvious move is for RAJA Office to have the same geographical coverage as the rest of the group. This would certainly make sense from a customer standpoint. We have partnerships all across the world, but it is not the same as having internal capabilities.

OPI: Furniture is another area you have been developing at RAJA Office, isn’t it? AJ: That’s right. But this just goes back to changing working and product trends. When I started in this industry, PCs were only just appearing, there was no such thing as an individual printer, ink and toner were an unknown quantity, and paper was restricted to specialist copy centres. That was almost 40 years ago and since then, products and the mix have been constantly evolving to reflect changes in the working environment and consumption patterns. This will continue and we will adapt accordingly. Furniture, or rather the workplace in general, is very much in the limelight and customers are looking for more expertise than ever before. If they turn to us for advice and solutions to help reshape office spaces or equip remote workers, it’s a tremendous opportunity. OPI: Do you think you have that trusted advisor status? AJ: I believe we do, although it is not currently equally shared across the RAJA Office entities. Two of our businesses – JPG and Mondoffice – have made great strides in that direction. It’s now a question of leveraging that expertise. OPI: You recently opened Viking showrooms in Leicester and Venlo. AJ: Yes, there is also one at our Großostheim distribution centre in Germany. They are very much based on the example of JPG and allow us to demonstrate different types of workplace environments. We know not every customer will visit these showrooms, but they are still a very efficient tool – we even sign orders on-site. OPI: Taking a high-level view, how would you describe the vision of RAJA Office within the wider RAJA Group? AJ: As I said earlier, it is part of a bigger-picture strategy that we began to develop many years ago. Today, we have reached a stage where we are not only a very sizable business, but also one that covers a large chunk of the European market. The real question for us is how we transform these individual firms into a coherent group. The first step was to get them back on track; we are not completely done, but have all the positive signs we envisaged at this stage. Now, it’s about building these businesses up and having them work together more efficiently, without destroying the local momentum.

December 2023

OPI: So we could see some further M&A? AJ: We are always on the lookout for possible acquisitions There are potentially some interesting opportunities in the office supplies market, but we are not limiting ourselves to it. Jan/san is a key category for us; we have in-house expertise with Bernard, although it only services the French and Belgian markets at the moment, so there is great potential to expand. This would not only benefit our office

supplies subsidiaries but also our packaging businesses because there is quite a bit of jan/san product overlap between the two.

BIG INTERVIEW Alain Josse

For more from the interview, including topics such as sustainability and the continued use of catalogues, see our Xtra content in the December issue on opi.net

FOCUS GREEN

THINKING

UTOPIAN dreams

Graham Craik charts the progress of environmentally sound manufacturing and calls for dramatic change and more commitment

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s a global community, we have all embarked on a journey, aiming to reduce our impact on the environment and minimise climate change. Just to give a short timeline, the writing instruments industry took its first serious steps along the road to sustainability back in 2005/2006. I remember attending a seminar at a major UK supermarket chain talking about our carbon footprint and the need to reduce packaging. And this is how it started: Pilot launched its Begreen and Pentel the Recycology range, with other brands introducing similar eco-friendly initiatives around this time. Of course, there was also a lot of what would now be called ‘greenwashing’. But a step in the right direction nevertheless. Unfortunately, the 2008/2009 financial crisis was a major setback. The focus and attention given to sustainability was greatly reduced for a number of years, although interest did not fade completely. In 2015, a group of European office products vendors and resellers set up the Sustainable Office European Association (SOFEA) with the aim of collaborating to produce a set of standardised sustainability claims and a rating system across 23 different product categories. Sadly, as has been well documented, SOFEA was disbanded in 2019 – it could not achieve sufficient commitment from resellers to make the scheme viable.

GROWING AWARENESS A bit of a turning point came in 2017 with the screening of BBC nature documentary Blue Planet II. The series was credited, certainly in the UK, with dramatically increasing public and political awareness of issues affecting marine life, in particular marine plastic pollution.

End-user awareness has grown ever since, although COVID-19 in 2020 and 2021 proved to be a ‘distraction’. Especially among young people in higher education or just entering the workplace, sustainability has become a very hot topic. End users are demanding more information about the products they are purchasing and using. Initially, they wanted to know about recycled content and recyclability but, more recently, this has extended to the wider impact on the environment, such as CO2 emissions in production and distribution. Now, of course, governments and corporations are in the process of setting ambitious targets to reduce their emissions to net zero by 2050. It will take a huge, concerted effort to achieve these targets.

A bit of a turning point came in 2017 with the screening of BBC nature documentary Blue Planet II MAKING HEADWAY Considerable progress has been made over the past few years by the manufacturing community. Single-use plastics have been removed from product ranges; vendors have developed and introduced plastic-free packaging and reconfigured existing products to improve recycled content and recyclability. New ranges have come onto the market featuring greatly improved environmental benefits, such as using post-consumer plastic waste and plastic waste recovered from the oceans. All this positive effort has been achieved as the result of considerable investments made by brands. But it has also driven up product costs significantly.

We need a political commitment to sustainability legislation around the world There are many environmental organisations and schemes around the world competing to help us along the way, offering certification, audits and compliance (see also How to..., page 36). All these entities offer similar, overlapping but still different certifications. Each one comes at a significant cost to the manufacturer. Some major resellers are also insisting that vendors comply with their own particular environmental schemes, also with costs attached. On the other hand, the world’s largest e-commerce reseller does not collect sustainability data for products sold on its platform at all; it relies on the content supplied by its contributors, honest or otherwise and with no auditing.

Graham Craik

ENFORCED LEGISLATION Is there a solution? There might be, but it’s likely a utopian dream. We need a political commitment to sustainability legislation around the world, standardised and easy for consumers and producers to understand, with targets. A commitment to the future. The United Nations 17 Sustainable Development Goals are a good starting point, but they need to be backed by irrevocable legislation and a compliance authority. Not an easy task, but remember the Montreal Protocol? A treaty from 1987 with the intention to phase out various substances that were responsible for ozone depletion. 197 countries plus the European Union ratified this treaty and the Ozone Hole is slowly recovering. A great example of international co-operation. The buyer then has a choice to: a) purchase a product with poor environmental credentials, such as high CO2 emissions, but at a very low price; b) get a product with good environmental credentials, but very poor labour conditions; or c) buy a product with excellent, ethical labour conditions and environmental credentials, but at a much higher cost (and don’t let anyone tell you this is not the case). The decision is entirely down to corporate values and business needs and can vary wildly. However, accurate data is required to make that informed decision. Ultimately, the end consumer will make the final choice but it is also our responsibility, as a global community, to do the right thing. Brands that ignore both will do so at their peril. Graham Craik is Director of Sales at Pentel UK & Ireland. He is also the Chairman of the Writing Instruments Association in the UK and a founding member of the BOSS Environmental Forum. This article represents Craik’s opinion, not that of Pentel, the Writing Instruments Association or the BOSS Federation.

December 2023

KEY OBSTACLES I believe there are two fundamental problems that are slowing down our vital journey to a more sustainable world. The first one is complexity. A number of countries in Europe – Germany, France, Italy and the UK – are introducing their own recycling schemes which require country-specific labelling and logos. Each of these will need to be added to retail packs. If only the EU could agree on one Eurozone-wide system and logo. The second one is inconsistency. In my experience, consumers in countries such as Germany, Scandinavia and the UK are leading the way, insisting that major companies invest and deliver truly environmentally friendly products and solutions while lobbying their respective governments at the same time. Other nations such as the US, especially states like California, are catching up fast.

Sadly, however, there are countries and entire regions which are a long way behind, namely South America, Africa and parts of Asia. China, for instance, is a market leader in solar panels and electric car technology. But it’s also one of the world’s leading polluters with its hundreds of coal-fired power stations. India is the world’s most populous country, capable of landing a rocket on the moon, but its plastic recycling infrastructure is incredibly limited. As such, for manufacturers around the world, their attitude towards environmental issues ranges from ‘absolutely business critical’ and ‘nice to have’ to ‘totally oblivious’. I can only assume this reflects the opinions of local consumers and governments.

FOCUS Sustainable Manufacturing

We are now at a point where most of the ‘low-hanging fruit’ and the ‘easy wins’ have been achieved. The upcoming steps on our journey towards a better world for the next generations are going to be challenging. End users, for instance, are increasingly asking for science-based CO2 emissions assessments and policies, together with reduction targets. For global vendors with production sites and thousands of products around the world, this is a very complex and time-consuming undertaking requiring massive investment. Smaller businesses, meanwhile, are struggling to comply because they simply don’t have the resources.

SPOTLIGHT GREEN

THINKING

SCOPE for more

Scope 3 arguably deals with the biggest source of GHG emissions as well as being the hardest to reduce. Planet Mark’s Jonathan Withey highlights how companies can first measure and then reduce emissions in this scope

chieving net zero single-handedly is impossible for any organisation. Every stage of the supply chain contributes to the overall carbon footprint. Working towards net zero, therefore, requires companies large and small to pool together – to measure their carbon footprints, put in place carbon reduction initiatives, and collaborate to drive net zero into the business infrastructure we all depend on. We’ve been perfecting this process at Planet Mark over the past decade and have developed five key principles for tackling supply chain emissions. But first, it’s important to clearly define what Scope 3 is and why it is vital for businesses to manage. The Greenhouse Gas (GHG) Protocol has defined three different scopes. These identify the source of emissions as follows:

and disposal of products and services by customers. Scope 3 is split into 15 distinct categories. It often represents the greatest proportion of a firm’s carbon footprint – sometimes up to 90% of total emissions.

Reducing Scope 3 emissions has become a top priority for organisations globally By measuring Scope 3 emissions, firms can gain a good understanding of their carbon footprint. This, in turn, enables opportunities for radical decarbonisation as well as enhanced commercial resilience. Supply chain transparency, energy efficiency and cost reduction potential, supply chain engagement and risk mitigation to future-proof your business are all part of the equation. With the climate clock ticking, reducing Scope 3 emissions has become a top priority for organisations globally, especially those that have committed to net zero. It’s a challenging problem to solve, given the complexity of global supply chain networks. And, as mentioned, with Scope 3 representing such a large part of a company’s carbon footprint, it’s easy to see why this is a tough nut to crack.

Scope 1 Emissions from sources that a company creates directly, for instance from burning fuel in gas boilers and company-owned vehicles.

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Scope 2 Emissions a firm creates indirectly, associated with the production of energy it purchases, such as electricity and steam, which are produced outside a company’s direct control.

Scope 3 Emissions not produced by the organisation itself, but by those within its value chain: staff commuting; waste generated by the company’s operation, production and transportation of raw materials; and the use

Jonathan Withey, Director of Transformation and ESG, Planet Mark

COLLABORATIVE EFFORTS Many businesses are now entering an era of cooperation to reduce their Scope 3 carbon emissions by identifying new solutions, enhancing knowledge, sharing best practices, and driving collective action at systemic and industry levels.

Scope 3 SPOTLIGHT

A collaborative mindset will allow them to accelerate the progress of existing partnerships and create new ones where gaps need to be filled. Having visibility into your supplier base is crucial for businesses to take proactive measures. Why? • It allows you to make informed choices about how and where to allocate your resources to deliver maximum impact. • It empowers your supply chain officers and procurement leaders to implement responsible purchasing practices throughout the organisation, ultimately leading to significant reductions in upstream Scope 3 emissions. • It uncovers various opportunities for your company to enhance brand value, extending beyond emission reductions to create an efficient, resilient, cost-effective and customer-centric supply chain network. With the right combination of visibility, actions and collaboration, any business can reach its sustainability goals and accelerate decarbonisation. The five key principles to engage your supply chain are:

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1. Define your baseline Collecting data on current emissions from the supply chain serves as a foundation for measuring progress. It provides a starting point for identifying emission hotspots and setting realistic reduction targets. Without accurate data, it becomes challenging to track progress and evaluate the effectiveness of emission reduction initiatives. During this process, supplier trust is a significant factor to consider. Often, suppliers are unsure how their data will be used and may worry about potential penalties or loss of business if their responses are deemed unsatisfactory. It is vital for your team to be open and transparent, and communicate that data collection is part of an ongoing process and journey, benefitting both your company and its suppliers. By understanding their baseline, you can develop strategies to provide support. This approach is crucial for building meaningful and long-term relationships.

2. Map and segment Supplier mapping allows you to understand and target operators that have the biggest influence

on your supply chain impact and identify what they need to do differently. By locating and understanding the various suppliers in the chain, your business can effectively prioritise your engagement efforts and develop specific strategies for emission reductions.

Collecting data on current emissions [...] serves as a foundation for measuring progress One approach does not fit all. A common challenge is not fully understanding the maturity, knowledge and current activities of your suppliers. By appreciating their capabilities, opportunities and motivations, you will be in a much better position to set realistic and achievable goals. As regards ‘capability’: do your suppliers have the knowledge, skills and abilities to reduce their carbon emissions? If they don’t, organisations like Planet Mark can provide training, workshops and resources to enhance suppliers’ skills in measuring, managing and reducing their carbon footprint effectively. By the same token, if they have great ability already, you can learn from their expertise and identify potential areas for collaboration or joint investments in reduction projects. On the ‘opportunity’ front: the processes that guide our decisions and behaviours are influenced by planning, beliefs, desires and incentives. You may want to consider creating opportunities for your clients and suppliers by implementing sustainable procurement policies, offering incentives for emissions reduction, and integrating environmental considerations into supplier selection criteria. GLP, a global market leader in logistics real estate, offers complimentary Planet Mark Property Certification to its tenants for two years to drive down carbon emissions and encourage its customers to work more closely with GLP on their journey to net zero. By reducing barriers, aligning incentives and fostering a supportive environment, you can empower your suppliers to embrace sustainable practices. Lastly, ‘motivation’: this comprises factors which make action and behaviours possible, such as ease, accessibility and availability. It is important to understand your suppliers’ motivations, attitudes, values and perceived benefits to create good engagement strategies. This may involve highlighting the economic benefits of emissions reduction, showcasing leadership potential or appealing to suppliers’ commitment to CSR.

Scope 3 SPOTLIGHT

Implementing anonymised supplier benchmarking, for example, enables them to assess their performance relative to peers or competitors. This process can serve as a source of motivation for suppliers, as they can see where they stand and recognise areas for improvement. Armed with this information, they can approach the leadership team and highlight the importance of enhancing their performance. 3. Collaboration and support Once you have a clear understanding of the maturity level of your suppliers as well as the interventions that will make the most significant impact, you can develop a well-informed engagement programme to invite them to join you on the journey. It’s important to emphasise this is a shared endeavour. It’s not only about your company’s progress but also about collectively working towards a more resilient future. By fostering a sense of shared responsibility and building strong partnerships, you can collaborate with your suppliers to achieve sustainability goals. 4. Get the conversation started Initiating a discussion about climate with suppliers will provide an opportunity to directly communicate expectations. It’s vital you clearly articulate your commitment to reducing Scope 3 emissions. By setting ambitious targets and publicly sharing your sustainability goals, you can send a strong message to suppliers about the importance of emission reduction. This can be done through sustainability reports, public announcement events, or by updating your supplier code of conduct to include specific emission reduction requirements.

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5. Procurement policies Re-think your procurement policies and procedures and re-write them with sustainability at their core. This way you will ensure the system is robust, helping to integrate CSR at governance level. Include any requirements in the evaluation of new suppliers and renewal of contracts with existing ones. Your sourcing team has a fundamental role to play in making your supplier strategy effective. For this reason, the team must be trained on your company’s decarbonisation strategy – their buy-in is fundamental.

RESOURCES & COMMUNICATION Overall, provide tools and resources suppliers with different degrees of maturity on climate issues can leverage to commit and take action towards halving their emissions.

Launched in 2013, Planet Mark is now an internationally recognised sustainability certification. To find out more about the organisation – one of only ten official partners of the UN-backed Race to Zero campaign supporting businesses on their net zero journeys – visit www.planetmark.com

While some suppliers might be on track already to do that, others may not know where to start. Link them to useful public resources and offer ad-hoc support where needed. For example, through Planet Mark, Fora Spaces provided its members with Carbon Clinics – one-on-one meetings with experts to help increase activities for those suppliers with a lower level of maturity in their climate journey. Regular communication and consistent engagement are key to maintaining momentum and ensuring continuous progress. Your ongoing communication with suppliers should have three key objectives: 1) reminding them about the actions they can take to reduce their environmental impact; 2) raising awareness and educating suppliers as regards your company’s vision and goals; and 3) inspiring action and encouraging behavioural change among suppliers. Establish processes for communication – regular meetings, webinars or forums dedicated to sustainability. These platforms allow for the exchange of information and the sharing of success stories. They also provide a chance to address any challenges and explore potential solutions together. TRACKING PROGRESS Finally, define a clear process to track supplier climate performance at least annually, leveraging both disclosures requested directly from them as well as from publicly reported indicators. This provides insights into how specific efforts with select suppliers contribute to your wider supply chain climate targets. A comprehensive approach ensures a holistic understanding of suppliers’ overall climate performance. With this information available, you can gauge the next steps and the ongoing dialogue needed, creating further transparency and collaboration.

OPINION GREEN

THINKING

Is the imaging sector prepared for CSRD?

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ecently, a relatively low-value M&A unexpectedly stalled and neither the buyer nor the seller was the cause. It was the financiers. They had the requisite business plans and financial forecasts. Yet, during due diligence, they posed a vital question: “Where’s your ESG or CSR audit?” This simple enquiry delayed the deal by four months. The scenario mirrors a broader trend whereby ESG – environmental, social and governance – concerns are gaining traction beyond the financial sphere. Fuelled by escalating consumer interest in environmental and social accountability, the EU’s Corporate Sustainability Reporting Directive (CSRD) is set to expand sustainability reporting protocols. By 2024, an estimated 50,000 EU-affiliated businesses plus public bodies will be required to report their sustainability practices.

EXPANSIVE REACH Contrary to what some believe, the CSRD regulations have a broad reach, impacting publicly listed firms, those with over 250 employees, and businesses with revenues or assets exceeding specific thresholds. By 2026, they will also include listed SMEs. For companies mandated to disclose their corporate responsibility practices, there exists a vast repository of white papers on this subject. Nevertheless, the minefield is already being seeded when venturing into office imaging, especially if you’re poised to renew your managed print services contract or compose a tender. Take a moment to ponder: where were these products produced if they are remanufactured? Are those CE marks – symbols of conformity – truly authentic? Are the coveted Blue Angel, WEEE, REACH and RoHS certifications valid, or are they mere compliance tokens? Does each country where these products are accessible boast a robust take-back initiative?

And let us not forget what vast troves of data these printers ceaselessly collect, and to what far-flung destinations this information then travels. Amid this labyrinthine landscape, a critical question looms: do these cold, hard facts align with the seductive promises of marketing literature? Do the products’ real-world origins and attributes resemble the polished narratives spun by companies? If there is one, this conflict can be a stark reminder that the quest for truth transcends the glossy veneer of promotional materials. The ESG legislation may not yet include office imaging enterprises which supply such products, but they will be required to furnish vital information. This responsibility, in turn, compels them to scrutinise their supply chains to the same standard, ensuring transparency reigns supreme. Each query produces a further enquiry, creating a cascade effect throughout the supply chain.

The [office imaging] industry is at a crossroads with global shifts towards sustainability and digitalisation AT A CROSSROADS So how is the office imaging sector positioned? The industry is at a crossroads with global shifts towards sustainability and digitalisation. The ageing leadership – myself included – is being challenged to identify who will pioneer the next chapter of the industry and which competencies they’ll need. The imminent corporate sustainability and due diligence regulations emphasise the curbing of negative environmental and human rights implications within international supply chains. This challenge extends beyond original equipment manufacturers to envelop the whole office imaging spectrum. The need of the hour? Transformative business models with a core focus on sustainable innovations and visionary leaders who prioritise eco-friendly practices. The office imaging domain must recalibrate its traditional models in a world increasingly leaning towards digital over print. It’s evident now more than ever: steering towards sustainable innovation isn’t merely preferable but essential. David Connett is a member of the Institute of Electrical and Electronic Engineers and a partner at Connett & Unland GbR, a marketing and consultancy firm focused on the office imaging market.

ADVERTORIAL

BRIGHT

horizon

Making positive moves towards sustainability doesn’t necessarily require major changes or grand gestures – Pukka Pads highlights how “small, easy fixes” can accumulate over time

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hile stationery brand Pukka Pads has worked tirelessly to incorporate sustainable thinking into its manufacturing operations and product range, the vendor also admits this wasn’t a top priority from the outset. But for over a decade, the 25-year-old company has evolved its production processes to include eco-friendly materials, sustainable energy and green transport. Pukka Pads has also taken on the task of raising awareness of the human impact on the environment and is keen to inspire consumers to think about the repercussions of their actions. As a result, it launched the Pukka Planet portfolio in 2022, featuring eco-friendly, acid-free and vegan stationery made using fully recyclable materials. OPI speaks to Pukka Pads E-commerce and Marketing Director Jessica Stott about Pukka Planet, improving its manufacturing sites and other upcoming green initiatives.

OPI: Pukka Planet launched last year, but the company as such started its sustainability journey much earlier. Can you take me through the key milestones? Jessica Stott: When Pukka Pads was first established in 1998, sustainability wasn’t really a thing. Like many manufacturers, we didn’t necessarily use the best materials or always have the planet in mind, but we’ve been committed to doing better for many years. We have developed our products – including the Pukka Planet range – to be as eco-conscious as possible and come a long way. But no one can afford to be stagnant in the fight to protect our planet – we certainly aren’t. Looking back, the first step happened in 2006 with a recycled selection consisting of

four products, featuring 100% recycled paper. It was a foot in the door to explore sustainability further. The next milestone was becoming FSC-certified in 2015. The FSC badge meant we knew our paper was being sourced from forests that upheld strict environmental, social and governance standards. One by one, our products and portfolios were updated to use FSC-certified items. Currently, 73% of our timber-based products carry the label.

We wanted to remove the ‘doom and gloom’ by making it fun for people to be green We then spent some time looking at the rest of our SKUs and their packaging. We realised there was more we could do and brought in a series of new initiatives in 2022. This included all our bubble-lined envelopes containing 50-70% recycled plastic content; the production of bubble wrap from bubble roll with 40% recycled content; the switch to biodegradable tape on cartons, and the use of 100% recyclable shrink wrap. Additionally, the wire became fully recyclable as the plastic coating was reduced to 5%. Since March 2023, all shrink wrap and polybags used in the manufacturing process have contained a minimum of 30% recycled plastic, and the percentage is as high as 70% for all outer cartons. OPI: Where did the idea behind a range dedicated to sustainability come from? JS: Saving the planet is incredibly important, and we wanted to remove the ‘doom and gloom’ by making it fun for people to be

OPI: What else have you been doing in terms of sustainability? JS: We definitely haven’t stopped at our products and are committed to reducing our impact on the environment in other parts of the supply chain as well. In August 2023, we installed over 70 solar panels at the distribution site in Leicestershire, UK. This project saves around eight tonnes of CO2 annually. To put it into perspective, that’s equivalent to 175 long-haul flights. The energy generated will power the site’s forklifts as well as the electric car charging station. Another great thing about our UK base is that we can manufacture a range of products locally – from ring binders and lever arch files to box files and bubble wrap. This helps reduce the amount Pukka Pads and our customers are importing. OPI: What are the short- and long-term goals of your initiatives? JS: We’re aiming to expand the Pukka Planet range and would love to become the recognised brand for eco-friendly stationery. We also plan to install more solar panels at our UK facilities. We already have two electric company cars and are looking to replace a further four vehicles with electric cars soon. OPI: How does Pukka Planet stand out from the crowd?

JS: Pukka Planet’s point of difference is its fun, brave designs – they put a real smile on people’s faces. The price is also a differentiator as it comfortably sits in the middle of the market. Moreover, the items are all vegan-friendly and acid-free, making Pukka Planet a great option for ethically conscious shoppers. OPI: You’ve just referred to price. Eco items have a reputation for being costly. How do you deal with this perception? JS: Agreed, a lot of green products are typically more expensive, but this is simply not the case with Pukka Planet. Although the range is high in quality, the price is competitive and similar to our standard business or fashion ranges. We believe that sustainable stationery shouldn’t have to come at a premium price, and the more accessible it is to the market, the more people will buy into it.

ADVERTORIAL Pukka Pads

green, while still raising awareness. Pukka Planet was created to combine eco-friendly and socially sustainable stationery with attractive designs. The daring slogans help spread the word about saving the planet without the usual melancholy. For example, products include phrases such as ‘Don’t be a prick. Help save the planet’ with a bold cactus image, and ‘There is no planet B’.

A lot of green products are typically more expensive, but this is simply not the case with Pukka Planet OPI: What does the future hold for you? JS: We’re keen to increase our green accreditations and continue evolving our production processes. By 2024, we aim for 90% of our timber-based products to be FSC-accredited. As a result, at least 30% of the total assortment will be FSC-certified. In addition, we expect all Pukka Party and Carpe Diem product packaging to be plastic-free and FSC-certified within the next year, plus having all recycled cartons in our Far East imports FSC-accredited.

December 2023

OPI: What should other operators be doing in sustainability terms? JS: Absolutely everything across the sustainability spectrum will make a difference, regardless of whether it’s a major or minor change. It can be difficult to know where to begin, but even things which might seem small at first can accumulate over time. One obvious starting point is using materials that can be traced back through the supply chain to understand their origin. When it comes to products made from timber, opting for FSC-certified and recycled materials is a no-brainer. On top of this, reducing the amount of plastic waste is another positive step, not only for the planet but for businesses too. Overall, don’t feel overwhelmed and start on the small, easy fixes. Sometimes the first step can be the hardest.

GREEN

THINKING

HOW TO...

GREEN

THINKING

NAVIGATING

the jungle

Based on extracts from KPMG Switzerland’s Sustainability Standards and Labels report, OPI’s Heike Dieckmann – with help from Florian Bornhauser – offers a ‘how to’ guide to the plethora of ESG certifications in existence

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ustainability has become a powerful megatrend affecting businesses across sectors, driven by evolving regulation and behavioural changes in stakeholders such as investors, customers and employees. Globally, many jurisdictions have implemented or further advanced draft legislation that will have profound implications for the adoption of more sustainable practices across the business community. Recent years have seen a proliferation of standards and labels that attribute specific properties along environmental, social and governance (ESG) dimensions. According to KPMG Switzerland, there are now estimated to be more than 300 globally – and counting. It begs the question: how should companies select the right standards and labels that create the most value for them in line with their sustainability strategy goals? There are four key insights they should be paying attention to from the outset.

Insight 1 Embedding sustainability in corporate strategy has become more important than ever. Yet, as the ethical and commercial case for becoming more sustainable increases, so do concerns around greenwashing. There are plenty of examples of companies that have overstated their ESG credentials, purposefully or inadvertently. As such, there’s a growing need for companies to be credible when they are ‘virtue signalling’; sustainability standards and labels are a powerful device to do so. Insight 2 There are over 300 labels with varying scopes. This makes it difficult for companies to select the right one for them, and for consumers to understand what different labels represent. Insight 3 Label selection should be directly linked to a company’s ESG strategy. Going through

Insight 4 KPMG Switzerland proposes a six-dimensional framework to select the right label. It comprises 1) the audience being targeted; 2) the material areas the company wishes to address; 3) the scope of certification it wishes to obtain; 4) the desired rigour of verification; 5) potential sector specificity; and 6) the geographic region in which it would like the label to be recognised. LEVERS OF VALUE It can further be useful to recap your ESG strategy with the help of the ‘9 Levers of Value’ model. This provides a nine-point checklist which covers all relevant areas of a firm’s financial and strategic ambition as well as its business and operating model. Under the financial and strategic ambition umbrella term, questions could be: are you looking to just be compliant with changing regulations or are you aiming for more? For example, are you aiming to use ESG as a driver of competitive advantage, perhaps even making it the main purpose of your company’s existence? As regards business model, this is where it becomes specific in terms of industry and customer demographics. Which sustainability labels and certifications are relevant in certain markets, for instance? What ESG strategy is your competition pursuing? And are you planning to use any ESG-related claims to differentiate your products and brands? Are customers willing to pay a premium? Will ESG-related developments impact your sales channels, such as interactions with distributors? If so, what are their needs for ESG transparency towards them? The operating model section, meanwhile, covers a broad selection of sub-segments, including core business processes; technological and operational infrastructure; governance and risk controls; people and culture; and measures and incentives.

More and more organisations are beginning to see the value of third-party verification The type of certification can have a double-edged impact. Third-party-assured labels overall tend to be more rigorous than self-assessed ones, implying higher credibility and potential differentiation on the one hand, but also increased effort and resource needs to obtain certification on the other. In light of greenwashing concerns in particular, more and more organisations are beginning to see the value of third-party verification. It’s often a matter of trust. KNOW YOUR LABELS Sustainability labels have been created and are used for different intents and purposes. If a company’s ESG ambition is to “just be compliant with emerging regulation”, minimum requirements might be enough for the moment. However, if the committed goal is to embark on a true ESG transformation and there is a desire to make this visible to credibly differentiate the company in the market, more rigorous labels may be appropriate.

December 2023

DRILLING DEEP As mentioned under Insight 4, KPMG Switzerland has developed a framework that drills deeply into the specifics of selecting a label. Target audience is a top consideration. B2B or B2C? And to what stakeholder group are you attempting your virtue signalling: customers, suppliers or investors?

Florian Bornhauser co-leads KPMG’s Swiss Deal Advisory Strategy team, part of the company’s Global Strategy Group. He is one of the lead authors of the Sustainability Standards and Labels report, aside from Cornelia Burri, Sonia Slavinski and Verena Thiriet. View the full report at kpmg.ch/ecolabel

The second component of the framework should answer just one core question: which part of ESG are you trying to address – environment, social or governance? The three areas are then split into several sub-sectors. For environment, these are climate, biodiversity, deforestation, water, hazardous materials and energy efficiency. Out of the remaining four sections of the framework, vigour of verification is one that is vitally important for any firm embarking on this journey. The key issues here are: do my target stakeholders require third-party certification to believe the company’s claim? If so, who can provide such certification? What are the cost and effort implications? And for how long will a certificate be valid; what are the requirements for maintaining the certificate? Sustainability labels can be awarded by a range of bodies – if it’s not merely down to self-assessment. Second-party verification refers to assurance awarded by a group to which the organisation belongs or the standard setter, but where there is no third party involved. Third-party certification, meanwhile, means certification by an independent, accredited body aligned with rules developed by the standard owner, or incorporated into regulatory frameworks.

HOW TO... Sustainability Standards and Labels

certification consumes time, money and management resources. It’s therefore important for organisations to carefully choose what they need. They should always think about the standards and labels in the context of this strategy.

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For a GREENER PLANET

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or over seven decades, Navigator has been at the vanguard of sustainability, recognising the profound impact of forests on our planet’s well-being. The vendor’s commitment extends towards fostering a circular, forest-based bioeconomy that champions nature, economy and society, all while striving for carbon neutrality. At the heart of Navigator’s endeavours is its dedication to responsible forest management. This includes extensive tree replanting, safeguarding biodiversity and implementing sustainable practices. Annually, 24 million saplings are cultivated in the company’s nurseries, underscoring a steadfast commitment to forest regeneration. The active management of more than 100,000 hectares of planted forests ensures a harmonious balance between wood production and vital ecosystem services. This includes safeguarding over 250 types of fauna and 900 flora species and sub-species.

CERTIFIED PRESERVATION All of Navigator’s managed forest areas have FSC certification. An investment of approximately €4 million ($4.2 million) in forest fire prevention and firefighting in 2022 further highlights the manufacturer’s dedication to the habitat’s preservation. Navigator’s forests serve as formidable allies in the battle against climate change, containing over six million tonnes of CO2 by the end of 2022 and producing enough oxygen to sustain more than 2.5 million people a year. Among the standouts in these forests is the Eucalyptus globulus tree, a champion of photosynthesis which releases oxygen all year round while capturing CO2. This species leads the production of benchmark paper products and sustainable bioproducts due to its superior fibre quality. Its fibres also exhibit exceptional recycling capacity, supporting up to six more cycles than other trees. The company’s production processes are also rooted in the principles of the circular economy. Over 80% of used water returns to the environment, and 90% of raw materials

are renewable. By 2030, the aim is to reuse 90% of waste produced. The vision for 2035 is even bolder: Navigator aims to achieve carbon neutrality of the fossil emissions at its industrial sites. The company is committed to an 86% reduction in direct CO2 emissions compared to 2018. Furthermore, 100% of its primary energy consumption will be sourced from renewables by 2035 – up from 80% by 2030.

At the heart of Navigator’s endeavours is its dedication to responsible forest management SUSTAINABILITY COMMITMENT Aligning with this pledge, Navigator proudly introduces its latest product – Navigator Eco-Neutral – powerfully declaring its commitment to a sustainable, carbon-neutral future. In making this groundbreaking new product, Navigator is offsetting its entire carbon footprint, from forest to consumer. The primary fibre used in the Navigator Eco-Neutral, as mentioned before, is Eucalyptus globulus. The tree requires 40% less wood volume per tonne of pulp compared to pine, thereby reducing resource consumption and chemical usage. By choosing Eco-Neutral, consumers actively support tree-planting efforts that offset all fossil emissions from forest to consumer. The basis for the CO2 offsetting of the new product will be two 13-hectare pine plantations located in central Portugal. Furthermore, the CO2 remains fixed within the sheets of paper, whether archived or recycled. This means the positive environmental impact of Navigator Eco-Neutral endures, even after its initial use. There’s plenty to be done and Navigator invites everyone to become an active participant in securing the future well-being of our planet. For more information, visit https://navigator-paper.com

THE CONSCIOUS COMPANY: memo

INTERVIEW GREEN

THINKING

Three words describe this e-commerce player. Sustainable, social, fair. Inspiring is another term that springs to mind

GREEN

THINKING

ermany’s memo is regarded as one of the pioneers of selling sustainable and socially responsible business products in the country. Created as a mail order firm just over 30 years ago, the company has evolved into an online player that serves both the B2B and B2C space with an offering that puts the ‘conscious’ consumer at its very core. OPI’s Heike Dieckmann spoke to Henning Rook, one of three members of the memo senior executive team and board, to find out what this operator, little known outside its home market and neighbouring Austria and Switzerland, does and why it does it so exceedingly well.

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OPI: Please tell me about memo: what is the model and mission? Henning Rook: memo is an e-commerce business based in Bavaria, Germany. To put it quite simply, at the centre of our business model is the desire to establish and foster the consumption of sustainable products across society – not just within pockets of the population or within certain categories. Our mission is to “enable responsible consumption – always and everywhere”. All memo employees – we have about 150 – work together to help ensure our world remains healthy and intact for future generations. A place worth living in.

OPI: Can you give our readers a bit more company background? HR: Sure. Jürgen Schmidt, co-founder of memo, originally supplied eco/organic shops and stationery dealers in northern Bavaria with school and stationery items made from environmentally friendly paper. Together with

three friends – Ulrike Wolf, Helmut Kraiß and Thomas Wolf – he created a company called Recover in 1991. It was essentially a mail order business for B2B customers with a complete range of environmentally friendly office supplies and stationery items. Aside from the unwavering ‘eco’ aspect, the premise and ambition was that these products shouldn’t be more expensive than conventional items. A year later, in 1992, Recover became memo – the ‘office supplies company for environmentally conscious customers’. Today, we stock around 20,000 items. The scope has widened, both in terms of target audience as well as products. We sell office supplies, furniture and promotional items to the commercial office sector, but we also supply a large selection of ‘everyday’ products to the B2C segment, including clothing and textiles, cosmetics, technology and food. What hasn’t changed at all is that we continue to offer sustainable alternatives to everyday products at fair prices.

Henning Rook

OPI: Where is your customer focus – you mention both B2B and B2C? HR: With our three online shops – memo.de, memo-werbeartikel.de and memolife.de – we serve both B2B and B2C, but at around 66%, our B2B customers still account for the largest share of sales. They will continue to be our core target group in the future. With 30 years of experience in B2B mail order, we have optimised our product range and our entire service proposition to expertly meet the needs of this demographic. OPI: Your mission of sustainability and social responsibility sounds tough to enforce. What are the criteria for products?

OPI: What do you require from your suppliers in terms of their credentials? HR: We have always maintained close contact with our suppliers and have worked successfully with many since memo was founded. At the beginning of a new business relationship, suppliers confirm their corporate responsibility by signing up to our code of conduct. If suitable and in line with our guidelines, we also accept their own code. When it comes to procurement – as I’ve already mentioned – we are guided by the principle of local sourcing and favour suppliers within Germany and Europe wherever possible. Only three of our partners are based outside Europe. The agency through which we source our memo brand items that are made from certified organic cotton, for instance, has a presence in both Germany and India. As such, we are able to maintain constant contact.

We are guided by the principle of local sourcing and favour suppliers within Germany and Europe wherever possible OPI: How much do you think the sustainability needle has moved since memo was founded over 30 years ago? Germany has always been a frontrunner in terms of initiatives and legislation as well as in consumer mindset. HR: The topic of sustainability and social responsibility has certainly become increasingly important in society. We used to have to actively search for sustainable products – now they’re being brought to us. For the customer demographic we attract, sustainability has always been an important factor – as you say, there’s a certain mindset among a proportion of the population. And that client base is getting bigger, with more and more switching from ‘conventional’ to sustainable products. This is partly due to legal requirements, but also because of a comprehensive shift in thinking towards a more resource-conserving and socially responsible world. OPI: What are the big topics for you now? HR: Digitalisation, without a doubt. As an e-commerce company, all our processes revolve around it and we’re constantly searching for new and better solutions. Mentioning sustainability again, this is what we are all about so it’s vital for us to be 100% consistent in our approach and to never engage in greenwashing. We also see our role in this context as an educator that others can learn from.

GRE

December 2023

OPI: What about the distribution of your products – how do you deliver? HR: We take our logistics responsibilities very seriously – it’s our job to find innovative solutions to protect the environment when we ship goods. We created the ‘memo Box’

Founded: In 1991 by Jürgen Schmidt Location: Greußenheim, Germany Leadership: Frank Schmähling, CEO Sales: €28 million ($30 million) Staff: 150 Coverage: Europe SKUs: 20,000 Web stores: 3

in 2009, a very sturdy, reusable system that avoids any other packaging and, for short journeys certainly, is delivered to customers by electric cargo bikes. We’ve been setting high ecological standards in the industry with the memo Box for many years and have won numerous awards for the concept and execution. In the past five years alone, we have been able to save around 164 tonnes of cardboard packaging in the dispatch of goods. As regards logistics, the continuous analysis and optimisation of our returns policy is another aspect we pay a lot of attention to. Our returns rate in 2022 – regardless of the cancellation period – was 0.45% which is phenomenally low. We check all products that come back to see whether they are suitable for resale and, on average, we do that with 96% of all returned items.

memo

OPI: I believe you have a comprehensive own brand range. How important is that? HR: Yes, out of our total portfolio, about 1,000 are own brand items. We are very proud of this range, as memo brand products meet particularly high standards in terms of minimising our environmental impact. The memo range accounts for about 29% of our sales. We’re delighted about that, as it means it enjoys high levels of customer acceptance and trust. Our own brand products stand out through a wide range of certifications, including Blue Angel, FSC, Global Organic Textile Standard and Grüner Knopf. But they are also known for their high quality, clear product declarations and fair prices.

MEMO FAST FACTS

INTERVIEW

HR: The process we deploy in listing products is based on the three pillars of sustainability in its broadest form: ecology, social compatibility and the economy. We’ve added a fourth one – quality. Everything we do is based on a holistic analysis of several factors. These include sustainable materials used; resource-conserving production methods; recyclable packaging; lowest possible health impact following consumption; energy efficiency during use, and recyclability or easy return of the product to nature. About 45% of the products we list are manufactured in Germany, 21% in other EU countries and 4% in European countries such as Switzerland and the UK.

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Building a better FUTURE

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aking significant strides towards advancing sustainable paper production, Sylvamo acquired Stora Enso’s paper mill in Nymölla, Sweden, earlier this year. This strategic move not only tripled Sylvamo’s uncoated paper capacity in Europe, it also brought under its umbrella a facility with environmental stewardship. The Nymölla mill, a producer of cut-size papers, business forms, digital papers and offset, boasts two pulp lines and two paper machines and stands out for low CO2 emissions. It seamlessly aligns with Sylvamo’s commitment to producing paper in the most responsible and sustainable way possible. The integration brings together talented teams, iconic brands, low-cost mills in favourable locations and a shared dedication to safety and sustainability. The acquisition also substantially strengthens Sylvamo’s product portfolio and enhances offerings for its customers.

A TALE OF TWO MILLS Both the Nymölla and Sylvamo’s Saillat mill in France prioritise renewable energy sources and benefit from low carbon grid electricity in their respective locales. For over two decades, the mills have proudly upheld ISO 14001 certification for their environmental management systems as well as fortified their energy efficiency with the implementation of ISO 50001. Both mills bear FSC and PEFC chain of custody and EU Ecolabel paper certifications, with Nymölla also earning the Nordic Swan Ecolabel. Sylvamo’s environmental, social and governance (ESG) commitment transcends paper production, aptly illustrated in its inaugural ESG Report through the tagline: ‘Building a better future through the promise of paper’. This pledge extends to the success of the entire ecosystem,

encompassing forests, communities and those reliant on its paper. The company’s ESG strategy is not a standalone endeavour; it is intricately woven into its business operations, with every department playing a pivotal role in seeking meaningful change.

Sylvamo’s environmental, social and governance [...] commitment transcends paper production In pursuit of its vision to become the employer, supplier and investment of choice, Sylvamo continues to forge a brighter future for its company and stakeholders. The progress achieved so far is nothing short of inspirational, marked by a consistent reduction in greenhouse gas emissions and a shift towards deriving more than 80% of mill energy globally from carbon neutral, renewable biomass residuals rather than fossil fuels. CONTINUOUS IMPROVEMENT Sylvamo’s pursuit is underpinned by ambitious 2030 UN Sustainable Development Goals (SDGs). These SDGs chart the course for continuous improvement in important ways: Sustainable forest management to ensure healthy and productive forest ecosystems l The protection and improvement of the lives of employees and support of communities l Responsible operations to mitigate climate impact and safeguard natural resources l

As a global producer of some of Europe’s most iconic paper brands – REY, Multicopy, HP Papers and PRO DESIGN – Sylvamo is resolutely committed to the enduring health of the entire ecosystem.

CATEGORY UPDATE

GREEN shoots

There’s an abundance of ways to tackle sustainability concerns in the manufacturing community. OPI takes a look at what 12 vendors are doing

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irst acknowledging and then addressing the many challenges that manufacturers in our industry are facing from a sustainability point of view is a monumental undertaking (see also Focus, page 24). Priorities and just how to get involved differ wildly. It’s interesting to note that several operators are concentrating on their Scope emissions, while others are putting the focus on circularity, recycling and the use of recycled materials within their products. Net zero by 2050 is a common theme, as is a shift towards the use of green energy, with many ambitious targets being set in this regard. Some are also setting out comprehensive CSR programmes with initiatives that support certified climate projects in an attempt to offset carbon output. In the following pages – and in alphabetical order of organisations so as not to prioritise one over the other – OPI provides a snapshot of some of the key initiatives and programmes. Many of the topics, incidentally, are covered in more detail elsewhere in this Green Thinking issue of OPI, namely Scope 3, the Corporate Sustainability Reporting Directive and the overall need for more legislation.

ACCO BRANDS EMEA

Jacqueline Wellhaeusser, Director Sustainability EMEA

One of our key areas of focus is climate change mitigation by measuring and reducing emissions. Our goal is to reach zero emissions from Scope 2 sources – which represent 75% of our total Scope 1 and 2 emissions – by 2025. At the same time, we’re looking to produce our own electricity from renewable sources, with the first project going live at the end of 2023. Products are the source of the majority of our Scope 3 emissions. We’ve carried out product carbon footprint calculations in all key categories to show us where the bulk of these emissions lie and where the opportunities for reduction are. For example, we know raw materials have the biggest impact and that using recycled materials always reduces the carbon footprint. This is why we use them whenever possible and will also use pre-consumer recycled plastic if post-consumer materials aren’t available at the right quality, quantity or price. Circularity includes looking at a product’s end of life. If materials are selected carefully and can be separated into different waste streams, we will be saving resources and reducing carbon emissions.

ESSITY

Audrey Rochais, Chargée Marketing Trade & Communication

Reneé Remijnse, Professional Hygiene Communications Director Sustainability

Printing has an impact on our environment. In Europe, 70% of print consumables are thrown away, with most ending up in landfill sites, mainly due to a lack of awareness of the recycling requirements. The path to proper recycling is further strewn with pitfalls because of the existence of patent-infringing cartridges that cannot be reused, those that fail to comply with safety regulations regarding hazardous substances, a lack of spare parts and firmware updates blocking the use of remanufactured cartridges. Armor Print Solutions offers remanufactured OWA brand products that limit environmental impact without compromising on quality. In addition, the company has removed single-use plastic from its packaging and provides a collection service for empty components. In line with a strategy to lower its environmental impact, the business has used its expertise to develop, produce and distribute water-based inks for semi-industrial applications. Reducing CO2 emissions and managing resources are two of the main eco challenges. Reuse and remanufacturing tackle both. It’s vital firms commit to the initiatives available.

Essity has committed to achieving net zero by 2050, having identified eight key action areas. These are: fossil fuel-free production, resource efficiency, zero production waste, reduced waste after use, clean transportation, breakthrough technology, sustainable innovation and the use of climate-smart materials. Responsible forestry and fibre procurement are also central to our ethos. In 2023, Essity has completely offset the carbon emissions of its core Tork washroom dispensers by investing in certified climate projects, including the supply of clean drinking water to Cambodia, the provision of energy-efficient cooking stoves to India, and supporting forest-protection activities in Indonesia. Essity offers a recycling service for paper towels. Customers signing up for Tork PaperCircle have their used hand towels picked up from their business premises and taken to local recycling centres where they are turned into other tissue products. This initiative is now enabling a 40% reduction in environmental footprint across several European countries, compared with other waste-handling alternatives. 2023 also saw the business recognised as one of the world’s 100 most sustainable companies by Corporate Knights. Additionally, as in 2022, it has again been included in the Sustainability Yearbook of S&P Global. This year further saw Essity gaining a place on CDP’s A List for helping combat deforestation. CDP is a not-for-profit charity that runs a global disclosure system for companies and other organisations to help manage their environmental impact.

CATEGORY UPDATE Vendor Sustainability

ARMOR GROUP

EXACLAIR

Lawrence Savage, UK Marketing Manager

December 2023

Studies show 64% of CEOs view CSR investment as a core component when creating their future business strategies. Research by Deloitte also highlights that over two-thirds of millennials – who will make up 60% of the workforce by 2025 – listed their company’s CSR commitment as a major influencing factor when considering whether to work for the organisation. The UK social and environmental engagement platform, Impact, meanwhile, has shown 68% of UK and US online consumers are inclined to stop using a brand if its CSR is seen to be inadequate. Conversely, companies that

communicate their initiatives effectively can potentially increase their market value by up to 3.5%. Environmental protection has been an integral part of Exacompta Clairefontaine’s strategy for over 40 years. Recently, the manufacturing team has begun to move away from using plastic shrink-wrapping for boxed products towards more sustainable packaging alternatives. Not only will this remove 52 kg of plastic waste per year, but it delivers a cost saving of over 70%. In the UK, ExaClair launched a specialist recycling scheme with a partner organisation to utilise the web cores that are left over from the manufacture of our manila products. Around 18 tonnes of this waste will be saved every year, transforming it into bales which are sold to paper mills for making pulp. These initiatives have been recognised with an upgrade of our EcoVadis status from Bronze to Silver. Additionally, the company was the recipient of the Sustainability Excellence award in the vendor category at the 2023 European Office Products Awards.

Vendor Sustainability CATEGORY UPDATE

FLOORTEX EUROPE

GOJO INDUSTRIES-EUROPE

John Barker, Marketing Manager

Floortex’s approach has mirrored the world’s focus on addressing environmental issues. By employing the latest developments in plastic material and processing techniques, the company launched the Ecotex BioPlus chair mat range in July this year. Manufactured from bio-based polycarbonate, the mats are a sustainable and eco-focused floor protection solution. The range uses 89% non-fossil based bio-circular material (cooking oil, vegetable waste and other biomaterials), which are reused rather than going to landfill. Production is powered by 100% renewable energy, with Floortex’s UK manufacturing facilities harnessing wind and solar power on-site. The resin has also been certified as carbon neutral. Every mat is carefully manufactured using a ‘Mass Balancing’ production process that has International Sustainability and Carbon Certification. Reaction to the new product has been roundly positive from trade buyers, business users as well as end consumers. Floortex is currently working on other bio-based material options to further enhance its eco-conscious surface protection solutions.

Chris Wakefield, VP European Marketing and Managing Director UK & Ireland Skin and surface hygiene specialist, GOJO Industries-Europe, has launched its ‘Journey to Green’ manifesto setting out specific objectives that are underpinned by four key pillars: • Plastics and circularity: The aim is to integrate circularity principles into the company’s operations, with a focus on product design to solve the problem of single-use plastic and achieve zero waste. The business will gradually replace virgin plastic with recycled plastic in packaging, using 100% recyclable material in all cartridges and bottles by 2025. • Clean chemistry: The company will continue to develop innovative and safe hygiene solutions to promote better health and well-being. Specific objectives include ensuring 100% of cosmetic formulas qualify as biodegradable by 2030. By 2025, it plans to remove any sensitising fragrances and offer alternatives that avoid the use of biocidal and surfactant agents. • Resilience and climate responsibility: CO2 reduction by monitoring and reducing emissions throughout the value chain. Having recently completed a carbon footprint assessment at the company’s French headquarters and manufacturing plant, GOJO aims to become net zero by 2050 at the latest. • Flourishing team: The business is committed to developing the leadership potential of each individual, aiming to achieve a score of 86/100 on the Gender Equality Index by 2024, while regularly monitoring staff satisfaction levels. Sustainability is part of GOJO’s legacy as well as its commitment to the future. The manifesto strengthens this commitment by defining clear, achievable goals which will make a real difference.

GREENSPEED

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Rosaliene Verhoef, Marketing Executive

Greenspeed’s vision is to create cleaning solutions which benefit both people and the planet, while transforming the industry for the better. That’s why the company created Probio Tabs – probiotic cleaning tablets that allow waste-free cleaning. The small tablets are added to water in reusable bottles to make cleaning sprays. Consisting of probiotics (good bacteria) and plant-based ingredients, they avoid the use of harsh chemicals. But what really sets them apart is their role in waste reduction. There’s no consumption of single-use plastic, no need to transport bulky water and CO2 emissions are reduced by 99%. The product has received ECOCERT certification, in recognition of the eco-friendly practices it embodies. Greenspeed is also committed to the Sustainable Development Goals (SDGs). The business will achieve these goals through initiatives such as deploying biodegradable formulas and user-friendly cleaning tools as well as developing circular economy products.

NESTLÉ PROFESSIONAL USA

Oriol Margo, Sustainability Transformation Leader, EMEA

Cassie Hoover, Senior Manager Nutrition and Sustainability

Many companies are turning to Power Purchase Agreements (PPAs) as a way of effectively managing and guaranteeing the reduction of their Scope 2 emissions. PPAs work because companies can purchase a consistent and predictable amount of clean energy that is aligned with their sustainability goals, and the energy sector gets a definite sale over a set period of time. Kimberly-Clark Corporation has committed to halving its Scope 1 and 2 output by 2030. Aligned with this, the B2B sector of the business, Kimberly-Clark Professional, has its own target to move to 100% renewable energy to power its UK production facilities within the next seven years – and has earmarked PPAs to help deliver on this.

Nestlé Professional is striving for a more sustainable future, towards a healthier planet, and a more responsible society. The company aims to achieve net zero by 2050 and has a detailed plan to get there. Already more than 85% of Nestlé packaging is reusable, recyclable or compostable and the vendor is helping to advance recycling infrastructure – because it should be easier to recycle. Additionally, the business is partnering with 500,000 farmers globally to accelerate the shift to regenerative agriculture as well as investing in renewable energy. The Nestlé Cocoa Plan aims to build a more sustainable supply chain, working with farmers and local organisations to implement solutions to the numerous challenges facing cocoa-farming communities. The ambition is to source 100% of cocoa through the plan by 2025. Via the Nescafé Plan 2030, Nestlé aims to provide farmers with training, technical assistance and high-yielding coffee plantlets to assist with the transition to regenerative farming practices. By 2050, rising temperatures will reduce the area suitable for growing coffee by up to 50%. With around 125 million people depending on this ingredient for their livelihoods and an estimated 80% of coffee-farming families living at or below the poverty line, action to ensure long-term sustainability is vital.

CATEGORY UPDATE Vendor Sustainability

KIMBERLY-CLARK PROFESSIONAL

December 2023 47

Vendor Sustainability CATEGORY UPDATE www.opi.net 48

PILOT CORPORATION OF EUROPE Cécile Poirot-Crouvezier, Brand Communication Coordinator Preserving the environment is a major challenge that has long guided Pilot’s actions. It is embodied in our ‘Write better with less’ programme which is based on four pillars: • Recycle: The extraction of raw materials needed to produce plastic represents 77.8% of a pen’s carbon footprint. Since 2006, we have used recycled plastic, allowing us to reduce their CO2 impact. • Refill: Over 60% of our products are refillable, enabling users to rethink how they consume and can reduce emissions. For example, a single bottle-to-pen product made from 89% recycled plastic and refilled three times, will cut CO2 impact by 85%, compared to four pens made without recycled material. • Reduce: Since 2010, we’ve reduced the quantity of virgin plastic used by over 80%, using recycled plastic and FSC-certified cardboard instead. In 2020, we invested in a plastic-free packaging line that uses 100% recyclable material.

• Reclaim: Between 8-12 million tonnes of plastic enter our oceans annually, with 70% then sinking to the seabed where it’s hard to tackle. Pilot is taking a lead in the fight against this by adding reclaimed ocean plastic – including material collected from waterways, beaches, lakes and riverbanks – to the recycled PET material used in manufacturing.

THE NAVIGATOR COMPANY

TRODAT

João Escoval, Head of Brands

Werner Mayr, Head of Corporate Environment, Health and Safety

The Navigator Company’s main corporate sustainability goals centre on four main pillars. The first is CO2. This requires an 86% reduction in EU-ETS industrial sites' fossil CO2 emissions by 2035 (compared with 2018). By 2022, the company had already achieved a reduction of 28.2%, so needs a further 57.8 % in 13 years. Second is renewable energy. 80% of our total energy consumption is to come from renewable sources by 2030. Navigator had hit 76% by 2022, so has to find the missing 4% over the coming eight years. The third concern is water, with a 33% reduction in usage by 2030 (compared with 2019). Last year saw a milestone 14.7% cutback, but another 18.3% drop is still needed to meet the target. The final goal focuses on certified fibre. Navigator aims to obtain 80% of wood from certified sources by 2030. It is already hitting a level of 68%, so needs to improve by a further 12% in this area. Navigator welcomes the European Union Regulation on Deforestation-free Products, which came into force on 29 June 2023. Under the regulation, operators that place certain commodities in the EU market – such as wood – need to prove where exactly the product originates from to ensure full traceability back to source. Navigator is a member of the World Business Council for Sustainable Development and its Forest Solutions Group. It further participates in the WWF Forests Forward programme, implementing the New Generation Plantations concept, and is a steering committee member of The Forests Dialogue.

Trodat has three key sustainability programmes. The first is the response to the European Commission Corporate Sustainability Reporting Directive (CSRD). The company will meet the legal requirements of the CSRD in 2024, a year earlier than the mandatory date. This is a broad project with all departments involved. All environmental impacts must be recorded in a process lasting around 16 months. Every employee will be surveyed and a climate-mitigation path developed and put in place for the rest of the decade. The second initiative concerns reducing carbon emissions. Trodat has been running extensive carbon footprint calculations since 2010. Product impacts are mitigated based on a three-stage model. Firstly, they are reduced in weight, then the use of post-consumer material is optimised and, finally, any remaining emissions are offset through the Gold Standard Project of the WWF. Initiatives around recycling form the third programme. The business has been conducting extensive operational process recycling for more than 20 years. All recyclable materials are specifically collected during the production process and reused internally, based on the ISO 14001 standard from 2015.

GOING

backwards? OPI’s annual Green Thinking Survey polled industry members across the world to illuminate our sector’s current actions and future plans regarding sustainability and CSR

Are customers asking for more environmentally friendly products?

THINKING

35%

n Yes, definitely n Not noticeably so n No

64%

10% 57% Do you have a CSR programme?

33%

n Yes n No n Working on it

Are customers asking you to reduce single-use plastic?

No 57%

Yes 43%

In which categories do customers request more sustainable products? Stationery n Office paper n Education/school n Jan/san and hygiene n Office furniture n Breakroom n Other n Safety n

60 50

10 13%

11%

39%

40%

n Yes, for customers n Yes, for my business n Both n No n What’s e-waste?

40%

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35%

53%

Do you have an e-waste policy for customers and/or your business?

56%

11%

19%

he results of the fifth OPI Green Thinking Survey show that taking the slow path towards sustainable practices actually risks going backwards. With organisations recovering from the pandemic – which certainly paused progress on planet-friendly developments – you would hope to see customers and vendors returning to pre-COVID priorities. However, the progressive attitude we had a few years ago seems difficult to rediscover. Compared with last year’s poll, the percentage of firms counting sustainability as “very important” has fallen; requests for less single-use plastic have also dropped. Some manufacturers attribute the change in customer priorities to them not being willing to pay more for green products. More positively, several results were on par with last year which, given the rocky road we’ve had, speaks volumes as regards our industry’s dedication to sustainability. Companies have maintained initiatives such as CSR programmes and e-waste policies, for instance. Better even, the percentage of firms offering entirely ‘green’ packaging has almost doubled. So it’s not all bad but there’s still a long road ahead.

GREEN

31%

RESEARCH

40%

n Yes, several of them n Yes, one or two of them n No n What are SDGs?

49%

ing Avoid any greenwash on mm co t op ad and both nomenclature that is r and me specific and custo ly nd frie er consum

7% How important is sustainability to your organisation?

36%

n Very important n Important n Not important

46%

Bring down the cost of d environmentally soun re mo g kin ma by cts du pro on cti du and reducing pro of the opposite

11%

Yes 80%

No 20%

13%

Have you taken steps to reduce your carbon footprint in the past 12 months to reach net zero?

15%

25% Do you offer customers environmentally friendly packaging? n Yes, all of it n Yes, some of it n No

71%

What percentage of current sales is due to ‘green’ products? 1-25% n 26-50% n 51-75% n 76-100% n

that Identify key initiatives ive ns pe ex will not be too h wit ly mp co to for SMBs Implement educational campaigns; provide clear information on eco-friendly alternatives; encourage manufacturers to design products with durability in mind; implement programmes for the recycling or repurposing of products

Do you have a packaging take-back scheme?

Yes 7% No 93%

December 2023

64%

Move production from places like China to areas where the market is

11%

Explore sustainable transport options such as electrification of road freight; remove packaging altogether from bulk products

RESEARCH Green Thinking Survey

WHAT CAN THE BUSINESS SUPPLIES SECTOR DO BETTER IN THE FUTURE?

Are you working towards attaining the UN Sustainable Development Goals (SDGs)?

11%

EVENT

Bigger AND BETTER

AMBIENTE WORKING 2024 PREVIEW

mbiente Working had a difficult first outing in 2023, it would be fair to say. It was a new concept following the decision to axe Paperworld, with many vendors and buyers adopting a ‘wait and see’ attitude before committing their attendance. In addition, the ‘Working’ area was confined to a portion of Hall 4.2 alongside suppliers in the retail stationery trade. This certainly didn’t help to create a sense of identity for specialists in the B2B channel. Messe Frankfurt listened to stakeholders and addressed some of the shortcomings. A key development for Ambiente Working 2024 has been the shifting of business products and technology vendors to their own space in Festhalle 2.0 and neighbouring Forum 0. The new layout has attracted 90 exhibitors, with the whole Ambiente floor space now sold out.

the exhibition centre. Creativeworld is located in neighbouring Hall 1, for example, the Future of Work plus the Office Design & Solutions spaces are on the east side of Hall 3.1, while stationery and education vendors can be found in Hall 4.2. Former Paperworld stalwarts will recall heading to Hall 10 to find suppliers from Asia and it will be a familiar experience for them next year, with the ‘global sourcing’ section for office and stationery installed in 10.0.

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A key development for Ambiente Working 2024 has been the shifting of business products and technology vendors to their own space

NEW OP FOCUS The trade show organiser has also given fresh impetus to its relationship with German trade association PBS-Markenindustrie. It has resulted in an expanded ‘Office Heroes’ exhibition area which features companies such as Durable, Maul, Novus-Dahle, Sigel, edding and tesa. Other exhibitors include Acme United, Hopax, Luxor, Monolith, T3L and Zebra Pen, although readers will note the continued absence in Frankfurt – officially, at least – of the likes of 3M, ACCO Brands, Fellowes Brands and Newell Brands. Messe Frankfurt is highlighting the idea of a Working “cosmos”, with easy connections to adjacent product groups in different parts of

MARK THE DATE

Ambiente 2024 takes place in Frankfurt, Germany, from 26-30 January. Creativeworld runs alongside it from 27-30 January

LOOKING TO THE FUTURE A key component of the Future of Work area will be a set of four wooden dome constructions designed by German firm MTTR Architekten + Stadtplaner. Each of these futuristic domes houses a different theme, based on the idea of ‘new work’: socialise, collaborate, concentrate and educate. Furthermore, a Future of Work Academy will be held during the five days of the show. Taking place in Hall 3.1, stand B10, the programme will see industry experts discussing current trends and the latest developments in the working world of tomorrow. One day (30 January) will be devoted to Sustainable Office Day, held in collaboration with German environmental organisation BAUM. Yvonne Engelmann, Director of Ambiente Living, Giving and Working, asserts that the office and stationery sector will be back “in full force” in 2024. This, in addition to attracting suppliers which offer smart furnishing solutions, “makes synergies with living, interior design and [the] contract business even more tangible” in an era of hybrid working. She said: “A very heterogeneous visitor target group […] will find concentrated inspiration in Frankfurt when it comes to furnishing and equipping contemporary workplaces or public spaces.” Perhaps this remains to be seen, but all the indications are that the Working component of Ambiente 2024 will be a step up from 2023.

EVENT

OPI GLOBAL FORUM 2023 REVIEW

A forum for

PROGRESS

he OPI Global Forum continues to attract a strong selection of business products leaders from around the world. In early November, almost 100 delegates – about 20% of them women – gathered in the US city of Chicago, including strong contingents from Europe and Australia. There was once again a varied and engaging conference programme aimed at helping businesses to not only understand the ‘here and now’, but also get a sound grasp of future trends, opportunities and challenges. It was encouraging to see so many channels represented at the event and witness a willingness by senior executives to participate in ‘moving the needle’ on some longstanding industry issues and stumbling blocks.

If there is one buzzword in 2023, it is probably AI

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EXPAND FROM THE CORE It is no secret that many traditional business supplies categories are declining, so a key theme was how to drive sales growth in this market context. A shining example of how this can be achieved was provided by Kevin Johnson, CEO of Chicagoland independent dealer Warehouse Direct. In a follow-up to a

presentation he gave at the 2018 OPI Global Forum, Johnson demonstrated how his company has been able to fend off the competition through an offering which is based on equipment and services. An important reason for Warehouse Direct’s success is its decision not to deviate too far from core categories and geographies. There has been a thoughtful process of building out the service proposition in incremental steps, establishing a strong foundation before adding a new layer. Johnson also provided some insight into how staff have been trained in new areas – or ‘talent adjacencies’. CHALLENGE PERCEPTIONS If there is one buzzword in 2023, it is probably AI – and the Global Forum had this covered. Trendwatcher Henry Coutinho-Mason delivered an entertaining and thought-provoking session on the topic, highlighting the extraordinary pace of change the AI sector is undergoing. The key takeaway of the event was arguably that we live in an ‘expectation economy’ and what may seem left-field or niche can quickly become normal and expected across a multitude of case uses. Digitally native Gen Zers who are used to having their ideas manifested instantaneously on a gaming platform, for instance, will demand this kind of immediacy in other areas of their daily lives – including buying products. Coutinho-Mason also urged the audience to challenge their basic assumptions about areas such as remote working – a trend which is having a profound impact on business supplies. There is an acceptance that this is only for white-collar workers. AI and 5G networks are changing this perception, he argued, showing examples of remote truck drivers, surgeons and even tattoo artists. While it’s impossible to cover the full event programme on this page, it would be remiss not to say a big ‘thank you’ to Fellowes Brands for hosting a tour of its Design and Experience Center in Chicago. For most delegates, it was their first chance to visit the facility, and not a single person left without being highly impressed by what the vendor has created.

EVENT

FIGHTING

cancer

TOGETHER

CLIMB OF LIFE 2023 REVIEW

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n 10 November 2023, OPI joined over 100 members from the UK business supplies community to raise money for the Institute of Cancer Research (ICR). Continuing the long-running Climb of Life (COL) initiative – now in its 36th year – industry peers once again hiked some of the most challenging peaks in the UK’s Lake District. This year’s theme of ‘The Base is Ace – Supporting the ICR from the Ground Up’ celebrated a return to the spiritual home of COL, the newly refurbished Swan Hotel in Grasmere. Although the area saw torrential rain on the evening preceding the climb, participants awoke to relatively clear skies the next day. Such conditions have only been seen once before in the history of the event, according to veteran climbers. Nevertheless, warm layers remained a necessity as temperatures at the top of the mountains and towards the end of a long day dropped, with some climbers finishing their descent long after sunset. Only one week before the team arrived at ‘base camp’, Storm Ciaran had swept across the UK, of course, leaving snow and ice on the peaks of Scafell and Helvellyn. Remaining rainwater, meanwhile, made for tricky terrain when ascending already unsteady rocks.

A GOOD CAUSE The intrepid climbers, as ever, remained upbeat and positive and kept the charitable cause foremost in their minds. And it’s to see why. With a predicted 28 million new cancer cases worldwide each year by 2040, the ICR’s research is crucial to better the odds of prevention, recovery and cure. COL organiser Phillip Lawson noted: “Cancer continues to affect us all, with one in two of us contracting the disease in our

lives and all of us knowing someone who suffers from it. Finding treatments that extend lives and keep cancer in check is something humanity should strive for.” There was a supportive ICR presence at the event, including former CEO Professor Paul Workman who explained 98% of the funds go directly into further research. In addition, the collaboration between the ICR and the Royal Marsden Hospital means developments can go directly from research laboratories into treatment rooms and vice versa.

Finding treatments that extend lives and keep cancer in check is something humanity should strive for

MARK THE DATE

The Climb of Life will return on 15 November 2024 and again be hosted at The Swan Hotel in Grasmere

EXCEEDING TARGETS Last year’s COL raised approximately £50,000 ($61,000), with climbers keen to surpass this already impressive figure in 2023. And so they did. Thanks to generous donations, the combined monies this year came in at over £71,000. More than £20,000 of the total came from the OPI team, making it the top fundraiser. Other substantial contributors included Avery, Egan Reid, Hamelin and Raby Estates. The fundraising goes on. COL founder Graeme Chapman MBE announced the launch of his book, By Thumb, To The Lowest Point On Earth, reiterating that all sales proceeds will be evenly split between COL and the BOSS Business Supplies Charity. Since its inception, COL has raised over £1.94 million and with the £2 million mark in sight, Lawson confirmed the event would be back in 2024 for a “landmark year”.

EVENT

INDUSTRY WEEK ’23 POWERED BY ISG REVIEW

HITTING the HIGH notes

he independent dealer community’s largest annual meeting – Industry Week, powered by ISG – enjoyed its third edition in New Orleans in October. Despite a slightly reduced programme, it was once again hailed as a resounding success, with 1,000 attendees and over 100 exhibitors at the tradeshow. There was a hiatus this year for the one-on-one vendor meetings for Independent Suppliers Group’s Pinnacle dealers. However, the first day of Industry Week ’23 – Sunday, 8 October – was once again given over to the large group, with a dedicated meeting and peer exchange gatherings for Pinnacle dealers.

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There was a real buzz of excitement on the show floor, with busy booths and order pads at the ready

The following day, the event widened to include the rest of ISG’s membership. After some early morning presentations and an ISG members-only panel discussion on direct buying, it was time for the education programme. This, in total, offered a selection of 12 sessions on a range of industry topics, hosted by both ISG staffers and external industry experts. After lunch, the general session began with a welcome address by ISG CEO Mike Gentile. Overall, the session’s focus this year was on the importance of diversification, first highlighted by Gentile and then echoed by

MARK THE DATE

The next Industry Week, powered by ISG, will take place at the Gaylord Palms Resort and Convention Center in Orlando, Florida, from 21-26 September 2024

OPI CEO, Steve Hilleard, who hosted a series of one-on-one interviews with four progressive ISG dealers – Perry Office Plus, Strive Workplace Solutions, Stationers Inc and 1st Source Business Supplies. HANDING OVER THE REINS Before Janet Bell, Director of OPI, took to the stage to present the 2023 North American Office Products Awards (NAOPA), several ISG executives – including Chairman Yancey Jones Jr – sang the praises of independent dealers and the collective spirit of the IDC. They also bade a fond farewell to the departing Gentile and welcomed incoming CEO James Rodgers, who laid out an initial 90-day plan for his tenure. Gentile, incidentally, received further industry recognition at the NAOPA (for a full review, see page 60). The working day concluded with another round of seminar sessions before the evening’s entertainment commenced. This included the official Welcome Reception – ideal for a spot of informal networking. A number of ISG presentations the next morning were followed by the Essendant general session which was hosted remotely by the wholesaler’s President/CEO Harry Dochelli (for more, see also Final Word, page 66). After that, the seminar programme resumed for dealers, while vendors and other business partners attended a meeting of the Business Solutions Association. The event continued with the highly anticipated trade show which took place in the afternoon. There was a real buzz of excitement on the show floor, with busy booths and order pads at the ready – a fitting end to the working aspect of the show. As always, Industry Week ’23 concluded with a party and the New Orleans branch of the legendary Fillmore music venue hosted this year’s celebration.

EVENT

WINNING ways This year’s NAOPA recognised the industry figures and organisations leading the way in innovation

NORTH AMERICAN OFFICE PRODUCTS AWARDS 2023 REVIEW

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or the third time, the North American Office Products Awards (NAOPA) were hosted by OPI in association with Independent Suppliers Group (ISG) as part of Industry Week ’23 (see also page 58). Taking place in one of the most distinctive cultural centres in North America – New Orleans, Louisiana – around 1,000 attendees visited the Big Easy from 8-11 October and a small group took home a NAOPA. Nine awards were presented in total. Each one acknowledged either product innovation or the outstanding contribution to our sector by a number of individuals. Some winning names will be familiar to OPI readers as they have shown dedication to advancing the industry for many years. Fellowes Brands impressed in two categories

BEST PRODUCT – CORE BUSINESS PRODUCT WINNER: LAVAZZA NORTH AMERICA – FLAVIA CREATION 300 + CHILL REFRESH It was a special day for Lavazza North America which won its first NAOPA, an achievement made even sweeter by it being in one of the most highly contested categories. Yet, the FLAVIA Creation 300 + Chill Refresh beverage system was the clear winner. The judges commented on its “modern design and sleek footprint”, delivering premium drinks while requiring minimal space. The compact

with a product which has increased hugely in popularity in the aftermath of COVID-19, thanks to its health benefits. Office furniture vendor The HON Company is another perennial contender which won again this year. Meanwhile, Lavazza North America picked up its first-ever NAOPA in the Core Business Product category. Similar to the product awards, the winners in the individual categories were met with rousing applause as their names were called. Accepting the awards, they shared both their appreciation of the recognition as well as humorous glimpses into their inspirational career paths. The OPI team extends a huge congratulations to all NAOPA winners for their endless dedication to being the best of the best.

size and competitive price point of the machine, meanwhile, had made it an instant sales success for Lavazza. Beverage systems have without a doubt become more important as workplaces seek solutions to invite more employees back to the office and away from their homes. Senior Associate Brand Manager Nathan Route concurred: “Our award recognition shows that coffee and beverage equipment are very impactful innovations in the workplace, especially given the change in so many sectors to a hybrid schedule.”

BEST PRODUCT – FURNITURE & DESIGN WINNER: NOOK POD USA – NOOK AIR The office furniture category has seen considerable changes of late. While initially it adjusted to meet work-from-home needs, now it’s taken another turn as employers call for a return-to-the-office. As a result, people must readjust to a bustling work environment, and the noise and privacy challenges this presents compared with home set-ups. Nook Pod USA responded to these changing requirements and developed Nook Air. The judges loved that the multi-purpose pod offers a unique solution for creating private and productive spaces without isolation. Nook Pod USA Principal Stewart Brown said he was immensely proud of the organisation’s vision and execution of building a more neuro-diverse workspace. “It’s truly meaningful to see the industry embracing and acknowledging neuro-inclusive design. The traditional office setup often falls short when trying to cater to the different needs of today’s workforce,” he added.

December 2023

PEOPLE’S CHOICE WINNER: THE HON COMPANY – FLEXION Another familiar face collecting an award was The HON Company for Flexion – a versatile chair designed to be as flexible as the spaces that have transformed into offices. According to the vendor, it’s perfect for “unassigned seating spaces” including benching, touchdowns and hybrid areas. Winning the People’s Choice award is a very special honour. The shortlist comprises the top-scoring products in the NAOPA, including all the product category winners. These items have already impressed the judges, but are then put to another vote by the IDC and OPI’s North American readers. More than any other award presented on the day, People’s Choice is a recognition by the industry as a whole of a well-liked and truly innovative product.

BEST PRODUCT – TECHNOLOGY WINNER: ONESCREEN – TOUCHSCREEN TL7 A segment which has seen drastic evolution over the past few years is technology, and the winning product in this category has had a truly positive and longstanding impact on its user base. OneScreen’s Touchscreen TL7 – a teacher-centered interactive whiteboard – has been a success in schools because of the flexibility of its application. Services available with Touchscreen TL7, including the LearningHub which allows users to record lessons and conduct hybrid classroom sessions, make it an invaluable tool for modern teaching. NAOPA judges also referred to the “unlimited help and training” available when choosing it as their winner.

EVENT NAOPA 2023

INNOVATION OF THE YEAR & BEST PRODUCT – FACILITIES, BREAKROOM, SAFETY & INFECTION CONTROL WINNER: FELLOWES BRANDS – FELLOWES ARRAY NETWORKED AIR PURIFIERS & MONITORING As OPI Director Janet Bell said when announcing the winner of this award: “Fellowes Brands is no stranger to the stage in this category.” Indeed, the vendor consistently impresses NAOPA judges and its dedication to innovation meant the team earned two awards this year: Innovation of the Year and Best Product – Facilities, Breakroom, Safety & Infection Control. The winning product in both categories was Fellowes Array Networked Air Purifiers & Monitoring which documents air quality using real-time data and helps to clean air. With health an increasing priority following the pandemic, the Array is a reassuring addition to any workspace. Speaking to OPI, Global General Manager for Air Quality Management Arti Lyde said: “We thank the judges for recognising the breakthrough in employee well-being that’s possible with Array. We are especially proud of winning Innovation of the Year because we believe Array is a game-changer in how businesses can not only solve their indoor air quality challenges, but gain insights into facility usage trends.”

NAOPA 2023 EVENT www.opi.net 62

he final part of the NAOPA recognised individuals – at varying stages of their careers – who have made a real difference within the North American business supplies space. One key criterion the following winners share is that they wholeheartedly support our sector.

YOUNG EXECUTIVE OF THE YEAR WINNER: ALICIA KOLBUS, STINSON’S The first individual award handed out aims to recognise a young person’s significant contribution to the industry. Historically, the prize has typically been presented to junior members of family businesses in the independent dealer channel. Not this time. Alicia Kolbus, Analytics Specialist at independent dealer Stinson’s, bucked that trend, having joined the industry from a completely different sector about nine years ago. She has worked incredibly hard ever since to eventually create a department at the dealership that focuses on data analytics. Stinson’s VP Russ Haley – who presented the award – highlighted the extent of her commitment to the industry as he welcomed her to the stage. “Alicia has established herself as a respected member of our company, with our vendors and her industry peers. She represents our industry well and exemplifies the type of executive who will be part of its future.” Speaking to OPI after the award ceremony – and playing down her contribution somewhat – she said: “I’m very thankful to everyone who considered me. All I can do is come to work every day and do my best to support co-workers and customers. No two days look the same in this sector – it’s part of what keeps me interested and excited.”

INDUSTRY ACHIEVEMENT WINNER: MIKE GENTILE, ISG The biggest and arguably most prestigious NAOPA went to an individual who really needs no introduction. Nevertheless, OPI CEO Steve Hilleard welcomed outgoing ISG CEO Mike Gentile to the stage with a humorous tale involving former incumbent John Kreidel entering the stage of another event around 20 years ago in a rubber wetsuit. Hilleard recalled Gentile’s “mortified” face and his belief this would be the last anyone saw of him at an industry event. Thankfully, he was wrong, with Gentile having gone on to have a “magnificent and influential career”. Gentile took over at ISG (then Independent Stationers) in 2005 – not long after the Kreidel incident – when it was going through a rocky period.

PROFESSIONAL OF THE YEAR WINNER: BARRY LANE, AVERY

Professional of the Year is an accolade that rewards a bright, established talent who is influencing a specific channel, but also the sector as a whole. Barry Lane, Commercial Sales VP at Avery, was named the deserved winner in this category in a touching moment on stage as two special guests – his sons Todd and Kirk – presented the award. Lane started his career in the late 1970s with Canadian company Apsco. He spent two decades working in various sales leadership positions until moving to the US in 1996. From there, Lane held roles in retail – OfficeMax and Fasson Roll – and finally leading commercial sales at Avery. Todd and Kirk drew attention to Lane’s commitment to the industry being as important to advancing his career as his own family’s support – a lesson he taught his sons. “Dad’s example made it clear that a strong family structure is critical to success,” they said. Visibly moved, Lane said: “There are special days in everyone’s lives. My wedding and my boys being born are among them; today is certainly another.”

But he turned the group around, forging key alliances with the likes of Pinnacle Affiliates and AFFLINK, to name but a couple. Planning to step down from his current role at the end of 2023, Gentile leaves a remarkable legacy which made him more than deserving of this accolade. The countless friendships and professional relationships Gentile has formed over his career became evident – and audible – when Hilleard announced him as the winner. While the applause settled, Gentile was clearly still composing himself. Some moments later, he addressed the crowd with a tribute to his colleagues: “To lead this organisation you need to have a team. Over 20 years, I’ve been blessed to have a wonderful group of people around me.

It’s not easy, my middle name is not patience, but they deal with it, and I appreciate all they have done.” Summing up the emotion of all NAOPA winners, Gentile added: “This award is so special because it’s a recognition from all of you.”

5 MINUTES WITH...

CAREER Q&A Describe your current job. As Senior Director of Marketing at S.P. Richards (SPR), I’m responsible for managing the production of print catalogues, the development of electronic content, and advising vendors on its implementation.

April Fabien What is your life philosophy? To have no regrets and keep moving forward. Whatever happens is just one of many opportunities to learn something new. What would you sing at karaoke night? Call Me Maybe by Carly Rae Jepsen. I’d sing it with my kids because they’ve changed the lyrics and it would be hilarious. Do you have a must go-to destination? Bali. I find the sound of water by a beach incredibly relaxing. What else is on your bucket list? Travel more. There are many places to explore – from beautiful beaches to an African safari. What’s your guilty pleasure? Popcorn and Hallmark movies. If you could change one thing about yourself, what would it be? Stop self-editing myself. What has been the greatest invention of humankind? I’ve been told it’s sliced bread, but I prefer the internet – the whole world is at your fingertips with the World Wide Web.

April Fabien, S.P. Richards

What word do you use the most? ‘Literally’. Are there any songs that always put you in a good mood? Two: As by Stevie Wonder and Happy by Pharrell Williams. What gameshow or reality TV programme would you love to be on? Wheel of Fortune. I used to watch it with my mum when I was growing up. Who wouldn’t like to spin the wheel?

What’s the hardest thing you’ve ever done? Losing my mum to amyotrophic lateral sclerosis, a progressive neurological disorder. If time travel was an option, where would you go – back or to the future? Back – to spend more time with my mum.

mily The Fabien fa

What is the best career decision you have ever made? Deciding to quit my job, move to Atlanta and try something new. I was open to new adventures when SPR snapped me up 23 years ago and I’ve not looked back since. What was your worst job ever? I once apprenticed with my dad as a chimney sweep. He thought it would be funny to send me to the snowy rooftop of a two-story home and have me drop a vintage cleaning tool down the chimney. It ended with me having a face full of soot – I can still hear my dad laughing about it.

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Do you have any advice for someone who has just joined the OP industry? Hang in there, change is coming.

If you could change just one thing about our sector, what would it be? I’d like to see more diversity in it.

FINAL WORD

Look at the data –

THEN ACT

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conomic indicators over the past year have been all over the place. Some headlines suggested that we were heading into a recession (in the US); others said we already had one while others still concluded we narrowly avoided it. My advice: don’t read the headlines; instead, look at the data. Headlines influence our behaviour and our thought processes, but only data provides the real answers. The figures are clear: GDP is up compared to 2022 which is great. But our trade deficit continues to widen – not as much as expected with $65 billion in July, for example – but it’s definitely concerning that we’re importing way more than we’re exporting. In terms of inflation, we’re in better shape than most countries at 3.7% (in August). But while retail sales are up – people are still spending money – consumer confidence is actually down. On the plus side, unemployment is also encouragingly low at just 3.8%. Overall, CEOs, after an almost buoyant August and September and a muted October, are starting to feel pessimistic about next year; they are worried about the economy, about revenue and about income. In addition, it’s an election year in the US in 2024, of course, which typically means everything is unsettled and in ‘pause’ mode.

AI TO THE FORE There’s another, ever-growing macro elephant in the room: AI. It’s everywhere and will have a major impact on economies globally going forward. To me, AI is as important as when the internet was first developed – it’s that big. At Essendant, we are piloting AI in several facilities to improve order fulfilment, which will be beneficial to our customers as we become more efficient and cost-effective. But there’s no doubt that smaller operators – our dealer customers, for instance – will be concerned about the affordability around AI. It’s because all the big companies are jumping on the AI train and gaining a competitive advantage. Amazon is a good example; it’s making huge investments in technologies SMBs just can’t keep up with.

So what can dealers in our space do to remain competitive and relevant at a time when overall cost structures continually go up – from product prices and transportation costs to employee wages – while demand declines? What’s needed is a rethink of some basic strategic objectives and priorities I believe:

Harry Dochelli, President/CEO, Essendant

• Take a step back, assess your core competencies and find a ‘white space’ you can play in. • Focus on selling solutions as opposed to products. It is not enough to just be ‘local’ and ‘personal’ anymore; the demographics of decision-makers are evolving and younger buyers view the likes of Amazon as being ‘personal’. However, the large e-commerce players do not (yet) offer solutions, especially in categories such as furniture and jan/san.

Take a step back, assess your core competencies and find a ‘white space’ you can play in • Rethink your delivery models. Not only are there a lot of hidden costs built in, but does the office channel still need to promote and offer next-day delivery, and does it really give a competitive edge? Jan/san distributors don’t deliver next day and nor do their customers ask for it. • If your sales model is the same as it was ten years ago, you need to look at changing that. Essendant has moved a lot of its business to a combined outside/inside model and this has resulted in efficiencies. Think long and hard about sales team design and compensation models. PREPARING FOR THE FUTURE There are many macro and micro factors which affect our industry. Life for pretty much anyone in the business supplies space is more challenging than it’s ever been. Whatever ballpark (channel or even product segment) you play in, grab all the help and tools you can to remain a strong force in 2024 and beyond.

Harry Dochelli gave a pre-recorded, virtual presentation to delegates of Industry Week ’23, powered by ISG (see also Event, page 58). This Final Word contains extracts from the presentation