CASE STUDIES
Trade associations have always been a key stakeholder group in TSC’s work. Representatives and experts from trade associations have provided research on environmental and social hotspots, and helped TSC researchers understand industry structure and supply chain configuration. They have suggested standards and other initiatives to align TSC’s KPIs to, and have been a voice for corporate stakeholders not well-represented in TSC’s membership, such as small businesses.
A trade association is a voluntary organization made up of corporate members who see value in working together on certain, “pre-competitive” issues, in a particular domain of industry. Trade associations are typically non-profit and maintain the autonomy of their corporate members, and address such issues as common standards, fair competition, labor, legislation and policy, and systemic risks and opportunities. Trade associations can play a critical role in sustainable business practices. Trade associations can be the place where sustainability science is promoted, shared, and acted upon. They can participate in standards-setting processes that create efficiency and effectiveness in the sector. They can help communicate the sector’s actions to become more sustainable, to both consumers, other non-profits, and government.
How Trade Associations Help Promote Sustainability
Examples from some of TSC’s Trade Association members
First, trade associations create industry standards, bringing both the technical expertise and governance to make collective decisions. For example, since 1988, the American Chemistry Council (ACC) has helped companies improve their safety practices through the Responsible Care® principles. CEO commitment to these principles is required for an organization to become a member of ACC, and ACC says that over $17 billion has been spent by companies since then to improve facility safety. According to ACC, Responsible Care companies have a three-times better safety record than other companies in the chemical sector.
The Sustainable Forestry Initiative (SFI) is another example of a trade association that has had significant market impact by developing standards and certifications for sustainable forest management. To date, SFI has certified one-quarter of a billion acres of forest, and has supported over $1.5 billion in R&D on sustainable forest management.
The Sustainable Purchasing Leadership Council (SPLC) is an association of institutional and government purchasers and other affiliated stakeholders who have developed guidance for how buying organizations can develop sustainable purchasing programs. They have created a framework based on the members’ collective experiences, and sustainability criteria that buyers can use to specify or select greener product choices.
Trade associations also develop communication to consumers. The American Cleaning Institute has recently collaborated with TSC to develop the Cold Water Saves program, a communication campaign aimed at millennials regarding the benefits of washing clothes in cold water. The program rolled out at University of North Carolina in 2016 and is being launched at Arizona State University this year.
Trade associations help their members recognize key areas where investments are needed and bring the financial and social capital together to create action. The Sustainable Trade Initiative (IDH) has a number of such projects, focused on different agricultural commodities. For example, in palm oil production, IDH supports investments in smallholder inclusion, and convenes industry members in a traceability working group. The Sustainable Phosphorus Alliance is another example of a trade association that provides values to its members through synthesizing existing science and developing new R&D.
Trade associations can help industry members benchmark performance against one another so that continuous improvement occurs. The Potato Sustainability Initiative collects member benchmark data on such metrics as nutrient use, irrigation use, pesticide stewardship, greenhouse gas emissions, reuse and recycling, and worker safety.
Trade associations represent their industry members in regulatory development. For example, the Vinyl Business and Sustainability Council (VBSC) works with government agencies like the U.S. EPA on determining environmental health and safety standards for vinyl production, and recognizes the efforts of safety leaders. Because vinyl is used in multiple industry sectors, it helps it members understand the different issues emerging in housing, trade, and water infrastructure that might impact them.
Trade associations are an efficient and effective way for organizations within an industry sector to collectively promote sustainable production and consumption. They can synthesize existing science, create new R&D, share best practices, help smaller businesses adopt such practices, and recognize industry leaders.
