Important Crisis Talk About PPE – Personal Protective Equipment – Excellence in Corporate Citizenship #3

by Hank Boerner – Chair & Chief Strategist – G&A Institute and the G&A team   — continuing a new conversation about the corporate and investor response the coronavirus crisis…continuing the second week of the conversation…   Post #3 – March 23 – first of two 

Introduction
These are the times when actions and reactions to crisis helps to define the character of the corporation and shape the public profiles of  each of the corporate citizens. For companies, these are not easy times.

Many important decisions are to be made, many priorities set in an environment of unknown unknowns — and there are many stakeholders to be taken care of.

The good news:  Corporations are not waiting to be part of the solution – decisions are being made quickly and action is being taken to protect the enterprise.  This is no easy task while protecting the corporate brand, the reputation for being a good corporate citizen, watching out for the investor base and the employee base — and all stakeholders.

What are companies doing? How will the decisions made at the top in turn affect the company’s employees, customers, hometowns, suppliers, other stakeholders? Stay tuned to our continuing commentary.

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Important Crisis Talk About PPE – Personal Protective Equipment

About those face masks…”PPE’s” for this conversation include protective clothing, gowns, face shields, goggles, face masks, gloves, and other equipment designed to protect the wearer.

These could be those PPEs especially designed for medical use (such as for use in surgery or dentistry) that are fluid-resistant, loose-fitting and disposable, for example. Many of the devices are regulated such as by FDA, or reviewed and registered with the agency.

Or the N95 that many refer to could be the ubiquitous industrial mask, tye disposable type, used in many industries.  It’s important to note that the medical version (“S”) is desperately needed in the medical crisis, of course.

And the corporate sector is stepping up to fill the gaps.

Many PPE items are in short supply. Right now, FDA is collaborating with manufacturers of surgical masks and gowns to “better understand” the supply chain issues related to the outbreak, and to deal with widespread shortages of products.

The U.S. government has strategic stockpiles of surgical (medical) N95s filtering facepiece respirators that exceed the manufacturers’ recommended “shelf life” — and so the Agency is considering whether or not to release the equipment during the crisis.

The good news is that many of the devices tested should provide the expected level of protection to the user. This varies by manufacturer and shelf life.

Manufacturers identified by CDC in its communications include 3M, Gerson, Medline/Alpha Portech, Kimberly-Clark, and Moldex. Other makers include Cardinal Health, Ansell, DACH, CM, Hakugen, Shanghai Dasheng, Yuanqin, and Winner. The CDC is providing guidance at: https://www.cdc.gov/coronavirus/2019-ncov/release-stockpiled-N95.html 

(Note: Kimberly-Clark also produces toilet paper, towels and diapers – items flying off consumer shelves these days.)

The N95 industrial mask is a different situation than the “s” model designed for medical use, since the N95 model is made for industrial and construction use (as examples) and not for medical care.

In a crisis such as this one, “something” would be better than nothing, or having medical workers fashion masks out of materials to try to be safe.

The “perfect” solution here would be the enemy of the good, as the saying goes. And so millions of N95 are pressed into action and industry is responding with donations.  And companies are in high gear to produce masks.

Background: With the masks generally in short supply, the Centers for Disease Control (CDC) is saying that the usual N95 respirators are not recommended for use by the general public to try protect themselves from respiratory diseases, including COVID-19. Also, people who are well should not be using surgical (face) masks to protect themselves from the virus.

Worn properly, the surgical mask (the “s”) can help to block large-particle droplets, splashes, sprays or splatter containing viruses or bacteria – but not small particles in the air transmitted by coughs, sneezes or medical procedures because of the loose fit (face mask, on the face). And the masks are suggested to be used just once and then discarded.

N95 Respirators generally are protective devices designed to achieve a fit tight and serve to filtrate airborne particles, exceeding the protection of the face mask. The design forms a seal around nose and mouth – as explained, there are both industrial and surgical version.

The industrial version is used in construction, food preparation, manufacturing, etc. The surgical version is the N95s, tested for various medical applications. Manufacture of these devices is regulated.

The N95s is in great demand for healthcare workers and the CDC is urging “conservation” of surgical masks and gowns (such as use of reusable gowns vs. single use) while supplies are being made available to medical professionals.

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3M – 24/7 Production Lines In Action

The company is the largest producer of the N95 respirator face mask – the global output was just upped to the target of 1.1 billion or 100 million monthly. Inside the U.S. the company makes 400 million-plus N95’s in a year. Investment is now being directed to produce 30% more over the next 12 months.

The company is advising consumers not to show up in stores for the masks  – production should be directed to the front lines, those caring for coronavirus-infected patients.

In response to the crisis, 3M is striving to produce 100 million masks per month going forward (the global output). Current production is 35 million per month. Healthcare workers will receive 90% of the production, and the rest will go to other sectors of the economy (like food, energy, pharm companies).

This week 500,000 respirators are going to sent to New York State/City and Seattle. The company also produces hand sanitizers, disinfectants and filtration solutions, and is working with government officials, customers and distributors worldwide to address the supply issue.

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Honeywell is expanding production of masks at its Smithfield, Rhode Island eye protection products plan to make N95 masks – and hiring 500 workers immediately to support the effort. The products will go to the U.S. Department of Health and Human Services for the national stockpile. (VP Michael Pence talked about this in the weekend briefing – orders for “hundreds of millions of masks” were placed through the Federal Emergency Management Agency.)

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Dr. Anthony Fauci (head of NIH Allergy and Infectious Disease) said fresh supplies of masks will be reaching medical professionals in days, not weeks.

Note that the U.S. Congress expanded the U.S. PREP Act to ensure both types of N95 respirators will be available to hospitals and healthcare workers.

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Challenge: Mike Bowen, principal of Prestige Ameritech (a mask maker in Texas), told The New York Times that 95% of face masks are made outside of the U.S. including by U.S.-headquartered companies that moves production offshore. He’s getting 100 calls a day now for his products.

Challenge: Even for those companies making masks in the United States, we cite the example of Strong Manufacturing in Charlotte, North Carolina, making of 9 million masks each month. The raw materials come from Wuhan, China – ground zero of the coronavirus outbreak. The materials are not arriving (yet) – the boxes are on the dock in China.

Challenge: Just one facility here in New York City (the Columbia-Presbyterian system typically would use 4,000 N95 makes per day — and is now using 40,000 per day and expecting to double that in the crisis.

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And so — the Corporate Sector Responds

Apple:  CEO Tim Cook is going to donate millions of masks to healthcare workers in the U.S. and Europe (according to his weekend Tweet) – Vice President Michael Pence said that on the weekend White House Task Force briefing and the company CEO then confirmed this:

“Our teams at Apple have been working to help source supplies for healthcare providers fighting COVID-19. We’re donating millions of masks for health professionals in the US and Europe. To every one of the heroes on the front lines, we thank you” (CEO Tim Cook).

Tesla – CEO Elon Musk donated a truckload of PPEs (masks, gowns etc) to a UCLA Health center in California. We know this from Twitter tweeting. Musk told California Governor Gavin Newsom that 250,000 masks will be donated to California hospitals.

Hanes Brands – President Donald Trump at the weekend briefing talked about Hanes, the clothing maker, that is retrofitting factories to make face masks. The goal is to make 1.5 million masks a week, and working with Parkdale Mills America (they make the yarn for Hanes) and a consortium of companies, will ramp up to 5-to-6 million makes every week.

The company’s experts in supply chain and product development worked with the U.S. Department of Health and Human Services to develop the products and FDA has given its approval to masks that are not the traditional N95 but a prototype that can be used in N95s are not available.

The Hayner Hoyt Corp, a local company doing construction work at St. Joseph Health, in Syracuse (upstate New York) donated 1,200 face masks to the hospital. “I encourage other construction businesses and construction supply companies to see if they have any PPE that they can give to our healthcare providers during this critical time,” says the firm president, Jeremy Thurston. The hospital itself has reached out to doctors, dentists and vet offices to ask for donations of masks, gowns, eyewear, thermometers and other PPEs – something we will be seeing all over the nation to help to meet local shortages.

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G&A Institute team note: We continue to bring you news of private (corporate and business), public and social sector developments as organizations in the three societal sectors adjust to the emergency.

The new items will be posted at the top of the blog post and the items today will move down the queue.

We created the tag “Corporate Purpose – Virus Crisis” for this continuing series – and the hashtag “#WeRise2FightCOVID-19” for our Twitter posts.  Do join the conversation and contribute your views and news.

Send us news about your organization – info@ga-institute.com so we can share.   Stay safe – be well — keep in touch!

 

Cradle-to-Cradle Case History: Shaw Industries

Guest Commentary by Jennifer Moore – at the Conference Board

Content originally prepared for Certification in Corporate Responsibility & Sustainability Strategies – on-line courseware by G&A Institute **

The early 21st century ushered in a new wave of heightened concern about resource scarcity and climate change. Consequently, consumers have been more concerned about the sustainability of the products they purchase and the effects they are having on the environment.

Businesses have also taken on the challenge of incorporating sustainability strategies into their business models. Many more companies are now integrating sustainability practices through product stewardship and their R&D activities.

These companies are focusing on life cycle assessments of their products and are aiming to achieve Cradle-to-Cradle status. As defined by the Ellen MacArthur Foundation, the Cradle-to- Cradle school of thought is an important branch within the circular economy concept.

Cradle-to-Cradle focuses on products that have a positive impact and reduce the negative impacts on commerce through production efficiency (see footnote 1).

Cradle-to-Cradle and circular economy goes beyond the “reduce, reuse, recycle” campaign of the late Twentieth Century to focus more on the design and production of products, rather than on consumption by the consumer.

The authoritative work, “Cradle to Cradle: Remaking the Way We Make Things”,  authored by Michael Braungart and William McDonough called for a new era of production, wherein, companies should be focusing more on “doing more good,” rather than “doing less bad.”

The goal and focus should be on the end of the product’s lifecycle, and whether it will either be safely re-entered into the environment — or be recycled back into production.

Cradle-to-Cradle aims to achieve three things: (1) eliminate the concept of waste, (2) power with renewable energy, and (3) respect human and natural systems. (2)

This concept argues that resource consumption and economic growth should not be isolated from each other. In fact, they often go hand-in-hand. (3)

The private sector is not siloed; it has been highly influenced by the public sector and discussion forums. Many non-governmental organizations (NGOs), driven by public demand, have advocated for the advancement of a circular economy. The World Economic Forum, Oxfam International and the United Nations in particular have been vocal about transitioning to a circular economy.

Also, the emphasis of the Sustainable Development Goals (SDGs) released in 2016 by the United Nations is on developing a more circular economy and seeking to implement sustainable development across the UN member states. (4)

While the SDGs are driven by politics and protecting human rights, the goals cannot be achieved without businesses and were developed with input from the private sector. There is business value for companies to align their strategy with the SDGs. (5)

Many companies have recognized the benefits of aligning their goals with the SGDs and the relationship between resource consumption and economic growth.

Consumers are now expecting companies to provide products that are eco-friendly and reduce resource waste. According to a survey conducted by Nielsen in 2014, “55 percent of on-line consumers indicated they were willing to pay more for products and services provided by companies that are committed to positive social and environmental impact, an increase from 50% in 2010 and 45% in 2011.” (6)

The Business Community’s Embrace of Cradle-to-Cradle

Businesses across all industries are now developing their product stewardship products to meet these consumer demands. Companies cite “customer demand for solutions that address global sustainability challenges, such as climate change and resource scarcity” as primary drivers of sustainable product initiatives. (7)

For example, 3M is striving for 40 per cent of their new products to be sustainable and Kimberly-Clark is developing solutions for used diapers. One exemplary model of sustainable product stewardship is Shaw Industries’ dedication to Cradle-to-Cradle.

The Shaw Industry Model

Shaw Industries is the largest producer of carpet tile in North America. While carpet tiles can have a lifespan of 10-to-25 years, commercial owners and tenants often update their facilities more frequently than that to reflect contemporary trends, resulting in a high-waste industry.

Historically, when the time came for flooring to be removed from businesses, schools, retailers, hospitals and other properties – whether for wear-and-tear or aesthetics, it was sent to landfills.

Recognizing the opportunity to create a better solution for customers and to create a product that would help advance toward a more circular economy, Shaw developed EcoWorx-backed carpet tile, which it introduced in 2008 and continues to optimize for sustainability performance.

The world’s first Cradle-to-Cradle Certified carpet tile — EcoWorx — was designed for reuse. To create a carpet tile that could be infinitely recycled with no loss of quality meant removing PVC, phthalates and other chemicals. As a result of its meticulous design process, Shaw understands what’s in its EcoWorx products and, therefore, what’s going into the next generation of its products.

Today, with 16 years and more than 3 billion square feet of EcoWorx installed, Shaw continues to optimize the product’s performance in alignment with Cradle-to-Cradle criteria – material health, material reutilization, energy, water and social responsibility.

Most recently, Shaw worked with one of its suppliers to remove an ingredient from its latex that was added to the list of banned chemicals within version 3 of the Cradle-to-Cradle Certified Products Program Standard.

Further, the company employs sustainable manufacturing practices – making efficient use of materials and natural resources, using alternative and renewable energy sources when possible, and designing and operating its facilities and manufacturing processes in accordance with widely recognized sustainability and safety standards.

It completes the sustainable manufacturing process by delivering its products using the most efficient mode of transportation feasible while meeting customer deadlines.

Shaw has committed itself to embracing Cradle-to-Cradle practices and has lead the way in carpet reclamation in the flooring industry. Today, 65 percent of its products – commercial and residential – are Cradle-to-Cradle Certified, with a goal of designing 100% to Cradle-to-Cradle principles by 2030.

Not only is Shaw committed to upcycling within its own operations, it also looks for opportunities in other industries.

For example, the company converts plastic drink bottles into residential carpet through a joint venture with DAK Americas: The Clear Path Recycling Center in Fayetteville, NC produces 100 million pounds of clear flake each year, recycling approximately three billion plastic drink bottles annually.

Furthermore, in 2016 alone, Shaw supplied more than 200 million pounds of post-industrial waste to other businesses for a variety of recycled content needs. For instance, the wood flour – waste fiber from hardwood flooring operations – is used by a major producer of composite decking and the minimal waste from its resilient manufacturing facility is used to make garden hoses.

The Future for Cradle-to-Cradle in Industry

Today, sustainable leadership companies, like Shaw, can strive to achieve cradle-to-cradle production through the certified program by the Cradle-to-Cradle Products Innovation Institute.

The Institute examines certifiable products in five (5) quality categories – (1) material health, (2) material reutilization, (3) renewable energy and carbon management, (4) water stewardship, and (5) social fairness. (Footnote 8)

Sustainability managers must partner with their design and strategy teams to develop sustainable solutions to the products and services their company offers. Not only are these products essential ecologically and socially, they are also drivers of revenue growth.

If managers are concerned about getting [internal] corporate buy-in to fund ESG R&D, they are able to present the business case of how other companies — especially like Shaw Industries with the illustrations here in this case study — have seen Cradle-to-Cradle’s positive impact on their revenue. (9)

According to The Conference Board, “revenues from sustainable products and services grew at six times the rate of overall company revenues.”

In order to address Earth’s ecological crisis, companies must lead the way by ensuring they are designing eco-friendly products and services that respects the finite resources available on the planet. Sustainability managers can look to Shaw as one company that is leading by example.

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Jennifer Moore is Manager, Executive Programs, Sustainability & EHS at the Conference Board. She engages with senior executives from Fortune 250 companies to understand their needs and help solve their business issues. She oversees and executes all aspects of 15 roundtables per year.

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**  Information about the G&A Institute on-line course:

http://learning.ga-institute.com/courses/course-v1:GovernanceandAccountabilityInstitute+CCRSS+2016/about

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Footnotes:

(1) Ellen MacArthur Foundation. Cradle to Cradle in a Circular Economy – Products and Systems. Retrieved March 5, 2017. https://www.ellenmacarthurfoundation.org/circular-economy/schools-of-thought/cradle2cradle

(2)  Ellen MacArthur Foundation. Cradle to Cradle in a Circular Economy – Products and Systems. Retrieved March 5, 2017. https://www.ellenmacarthurfoundation.org/circular-economy/schools-of-thought/cradle2cradle

(3) Strahel, W. (2015). The Performance Economy. Palgrave MacMillan: 2006

(4) United Nations. United Nations Economic and Social Council. Millennium Development Goals and post-2015. Development Agenda. Retrieved March 5, 2017. http://www.un.org/en/ecosoc/about/mdg.shtml.

(5)  Yosie, T. Is There Business Value in the UN Sustainable Development Goals? Retrieved March 5, 2017. http://tcbblogs.org/givingthoughts/2017/02/07/is-there-business-value-in-the-un-sustainable-development-goals/#sthash.L0MLUAN7.xHIHNvHZ.dpbs

(6) Singer, T. Driving Revenue Growth Through Sustainable Products and Services. New York: The Conference Board, 2015. p. 17.

(7) Singer, T. Driving Revenue Growth Through Sustainable Products and Services. New York: The Conference Board, 2015. p. 8.

(8)  C2C Product Certification Overview – Get Certified – Cradle to Cradle Products Innovation Institute. Retrieved March 5, 2017. http://www.c2ccertified.org/get-certified/product-certification

(9)  Singer, T. Driving Revenue Growth Through Sustainable Products and Services. New York: The Conference Board, 2015. p. 6.

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