Sustainability Plan for Zubin Tea March 23, 2011 By: Zubin Amiri Managing Director & Brand

Owner

About Zubin Tea and industry Company: Zubin Tea Company is a public limited

company, which involves the processing of manufacturing, packaging and distributing its tea. The offered product by Zubin Tea consists of a 100% Healthy and Natural Organic herbal black tea. The factory is located in a small town in north of Iran called Amlash. The area is known for its good quality of growing tea farms on the rich magnificent hills of Alborz Mountains. Three years ago the company joined farmers to collaborate on organic farming of tea gardens. Today, Zubin Tea is known as the first organic black tea in the Iranian market. The factorys supply of tea leafs are gathered from farms in a radius of 8 miles, which are under biologic pests control and converting to organic farming. Industry: Currently, the domestic production of tea in Iran has been dominated by foreign imported teas, which are artificially flavored for taste, aroma, and color. Basically, any brand that is imported lacks quality and due to corruption there is no just in the health regulations and consumers are not all aware of the health hazard effects. The low price, low quality tea that is imported has caused for the domestic entities of tea to suffer. Every year many gardens of tea are abandoned, farmers go job less, generations move to big cities searching jobs, factories are being bankrupt and closed, and a 4-5 million people (3million farmers) engaged and dependent on this industry can vanish soon. Zubin Tea produces 0.8% of the total tea consumption of 130,000 tons per year in Iran.

Feasibility and Analysis STAR Analysis: Change in Society: As mentioned in the industrys outlook, farmers are greatly frustrated with the situation and considering the international sanctions on Iran, there is not much option by other than a to focus on and domestic fair market. and Therefore, creating positive working

community environment that respects the nature as well as providing a premium healthy organic tea to a population of 60% under the age of 30 years old that black tea is the nations number one drink, as it will give greater attention to its locality by creating mass jobs in the factory and farms, which will give a sense of place back to the community. This will be the backbone of the company, 200 workers, 1500 farmers, a community of 30,000. In addition, the company has a junior soccer team that hopes to invest in better soccer field in the community for their joy and health, and the Companys pride. Change in Technology: With the recent ADSL internet connection provider installed in the town, Zubin Tea plans to implement cameras around the factory and ultimately tea farms in order to have live views of the operations through our website, which not only management can view operations but the whole entire or mass can on view the and report This any will mismanagement behavior website.

dramatically bring down commute for managers from Tehran to Amlash (450 KM drive) as well as a great deal of transparency on operations for whomever concerned. In addition,

implementations of renewable energy technologies will take in place. Change in Resources: A very important concern in having a good tea garden in order to attain rich and healthy tea leafs is water. However, water on the hills and mountains depend on rain and the crops can go bad if it does not rain on time and enough. Therefore, implementing rainwater harvesting in the tea gardens as well as drop watering system will contribute a tremendous amount to the solution of water scarcity and dry seasons. Furthermore, a switch from fossil fuels and diesel sources for energy to renewable energies such as wind turbines in farms and solar panels in the factory will contribute to the reduction of environmental impacts.

Influence Grid

High
Customers*

Zubin Tea* Farmers*

Farmers* Iran Organic Association*

Workers*

Workers*

Unions*

Support

Empower(high support, low influence)

Partner (high support, high influence)

Community* Nature* Competitors* (Domestic & import products)

Monitor (low support, low influence)

Engage (low support, high influence)

Low

Influence

High

STRATEGY DESIGN: MANAGEMENT PLAN Zubinism: The fundamentals & tools for a sustainable plan
and future

The company will follow sustainability as a way of thought and culture, where in short it will be guided by core fundamentals such as Goodwill, Leaders of Wisdom rather than crafty or clever, Seek for truth/Transparency, Simplicity/We are One/Unity/Consensus, Long-term outlook/seven generation rule, Natural Capitalism-respect of scarcity of natural resources, Common sense, Evolution of civilizations, Urban planning for farming, Technology, Finances, Love, and Education. Goodwill. At the core of any thought or action; leaders, decision-makers, and the common man must reach its inner conscious to make sure that the motivation and thread of thoughts that have brought one to a decision or an action is pure in intentions and it is meant to consider the common respect of all rights of others (people, species, and nature) that may be impacted by that thought, decision or action. This is the core cell, the beginning, the first step, the most important, vital practice and way of life we must be guided by. A matter of fact, there is no judge better than ones conscious and we all have the ability to come to our own pure conclusions. Leaders of Wisdom. There are two kinds of people: the innocent and the crafty. The difference between the two is that one derives intelligence and knowledge by reaching in to the inner self, where we all have a sound of pure goodness, to create Wisdom (the innocent). The other disregards the pure

inner goodness and creates cleverness (the crafty). We must change the world by placing leaders with wisdom instead of clever ones. The approach is by a pure non-confrontational way. This will happen when people of wisdom continue their way of life. Why people and species are calmed by goodness and goodwill; therefore, will follow the way of the wise for eternal peace. Seek for truth. Reality on a matter for one can be different things but the truth is only one thing. Your perception is your reality but this does not necessarily mean there is different truth to a matter. So truth is one thing and it is believed that the judicial system is responsible for finding that truth not the way the reality of a subjective matter is being presented or buy in to the better side of the two arguments but rather to get to the truth of a matter; and this is really the main problem of our judicial system, the whole mentality of thought of humans with this creation of law and society governing system. This is the issue, who can defend so called their reality and not for the judicial system to seek and search the truth of the matter with a fairness of innocence. The whole judicial system needs to be based on the finding of truth rather than obedience of man-made laws. Where judges seek to find pure intentions from bad or misleading intentions guided by selfishness. Judges should be picked by their reputation of truthfulness, fairness and the ability to read people and pick up the vibe and energy of others. In addition, a young person can never be a judge, a judge has to be of an age over 50 years old, in order to have built enough talent of the above

mentioned, knowledge, worldly, and reputation to take place of a judge. Moreover, social science and concentrated experience of the presented case is needed so they can be placed to judge that particular area; therefore, the working experience prior to becoming a judge can come in to play. Simplicity/We are One/Unity/Consensus. Have you ever used a back scratcher? Have you observed the varieties of innovation in design in such product purpose? How about if we have someone to scratch our back for us? We running out of ideas to serve and please our materialistic demands for shortterm conveniences with high negative impacts, now we must come with ideas to survive at where we live. There is only one planet that we live in, one sun that shines to give us warmth and light, and one universe that hold us together. The point is that there should not be separate entities that look after specific concerns, for example, in the environmental issues. What we consume, exhaust, waste, build and do or say eventually in the big picture is and/or will affect our planet and ultimately our universe. Therefore, all should be considerate for the well being of species, forest, water, land-use, civil rights and any other matter that is affected by ones action, where it should start from the thought. To change our management/relationship/governing views from authoritarian to consensus, where a whole group of people are interacting with one another for the best sustainable solution and result. Where, a simple fact of giving respect to the wisest will praise the soul to highness. To become one with the Mexicans, Americans, Europeans, Muslims, Jews, Waters, Mountains,

Tigers,

Fishes,

EPA,

CEC,

Regional,

State,

Federal,

International All To feel, understand, respect, and consider all, because whatever and however we think, say, and do is a thread of a story in our planet that impacts and affects our future and destiny. Long-term outlook. Following the concept that we are one; therefore, careful and thoughtful decisions and actions must take place for the respect of our future generations. All the decisions will apply the seven-generation rule, where every decision that is made should consider the impact all the way to the seventh generation that any particular decision should have. This way we can sustain our resources for the longest period possible; thus our existence on planet earth, and achieve goals and abilities that man has never thought of reaching such as peaceful, fair, and joyful societies, where the universe we live in is no longer our limit but we live and survive long enough to reach and connect with them. Natural Capitalism. "It is based on the simple proposition that ALL capital be valued. While there may be no 'right' way to value a forest, a river, or a child, the wrong way is to give it no value at all." (Ch.15 Once Upon a Planet, Natural Capitalism) The journey to natural capitalism, as explored in the book, follows and suggests four major shifts or principle guide lines in every aspect of our living system and business practices, all vitally interlined: 1) Dramatically resources. increase the productivity of natural

Reducing the wasteful and destructive flow of resources from depletion to pollution represents a major business opportunity and serving on earth. Through fundamental changes in both production design and technology, farsighted companies are developing ways to make natural resources-energy, minerals, water forests stretch 5, 10, even 100 times further than they do today. These major resource savings often yield higher profits than small resource savings not only pay for themselves over time but in many cases reduce initial capital investments. 2) Shift to biologically inspired production models/Biomimicry. Biomimicry (from bios, meaning life, and mimesis, meaning to imitate) is a new discipline that studies nature's best ideas and then imitates these designs and processes to solve human problems. Studying a leaf to invent a better solar cell is an example. I think of it as "innovation inspired by nature." Natural capitalism seeks not merely to reduce waste but to eliminate the very concept of waste. In closed-loop production systems, modeled on natures designs, every output either is returned harmlessly to the ecosystem as nutrient, like compost, or becomes an input for manufacturing another product. Such systems can often be designed to eliminate the use of toxic materials, which can hamper natures ability to reprocess materials. 3) Move to a solutions-based business model. The business model of traditional manufacturing rests on the sale of goods. In the new model, value is instead delivered as a flow of services- providing illumination, for example, rather

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than selling light bulbs. This model entails a new perception of value, a move from acquisition of goods as measure of affluence to one where well-being is measured by the continuous satisfaction of changing expectations for qualify, utility, and performance. The new relationship aligns the interest of providers and customers in ways that reward them for implementing the fist two innovations of natural capitalismresource productivity and closed-loop manufacturing. 4) Reinvest in natural capital. Ultimately, business must restore, sustain and expand the planets ecosystems so that they can produce their vital services and biological resources even more abundantly. Pressures to do so are mounting as human needs expand, the costs engendered by deteriorating ecosystems rise, and the environmental awareness of consumers increase. Fortunately, these pressures all create business value. Commons sense & Evolution of Civilization. Therefore, the authors of Natural Capitalism implement, these four constructive principles and approaches by a common sense bases in our entire living system. A new culture of living is established historic where it learns from passed such failures as of conventional, seemingly sometimes, short cuts, to an outlook of sustainable building techniques natural lightning, directing technology for sustainable use such as recycling wastewater, and bearing responsibility of actions of humans existence on earth by equaling nature to the whole value of worlds market, a sum of 40 trillion (Year 2000 estimates) dollars per year. A common sense is explained by

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actions that are for the common well being of all elements of our surroundings for a long-term sustainable living of all planet earths assets. Finances. It is believed that the huge part of the reason we are in todays world of imbalance is due to the way businesses have directed themselves with insufficient measurements. Business plan measurements need to weigh equally on the triple bottom line. Today, businesses focus heavily on the economic aspects, somewhat on social impacts, minimum for environmental concerns, and an unclear culture. This needs to be changed by an equilibrium that supports and have positive influence and by monitoring, of Cs. the engagement, Cosmos, empowerment author, Zubin partnership the 4 Cash,

Community, and Cultural dimensions, a concept named by the Amiri, Some fundamental measurements in a business plan that can be scored to be adjusted to balance equilibrium are: Cash dimensions; sales, profits, ROI, taxes paid, monetary flows, and jobs created. Cosmos dimensions; air quality, water quality, energy usage, and waste produced. Community dimensions such as labor practices, community input, human rights, happiness, and product responsibility should be as indicators. Finally, Zubinism explains the Cultural dimension. Ultimately, the Global Reporting Initiatives (GRI) indicators are strongly integrated in to measurements. Urban planning for farming. Communities will work for food based on urban farming with techniques such as Hydroponics Agriculture and sharing reduced animal sacrifices

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in neighborhoods, in order to engage as a society and community to provide food and bring interaction and friendship stronger and closer to one another. Where you are required to put time in planting, caring and harvesting for your basic need to eat. Imagine the sense of love and responsibility for not wasting one will have for food. Where unneeded paved streets/highways, walk paths and grasses are replaced with vegetables and fruits that are valued more than ever. Rooftops of buildings are used for similar purposes. Technology. With the technology trends in hand today, we have come to be so powerful. Imagine when we put all our power of science and technology to righteousness. Renewable environmental technologies and energies, measurements of science (hypocrisy against other data with its purity that can be used in courts), innovations for mitigations, sharing of information and education, and so many more opportunities that if we set the goal in the sustainable, benefit of all direction, it will bring planet earth a hope beyond measurements. Technology plays a great deal in turning things around from the current mess. Love. In today's life, we push ourselves, to compete with one another and overall society's expectation of prosper and importance, and we fight to attain and achieve them; however, we sometimes let the true meaning and origin of the concept of winning and loosing to slip by us. Love, is the origin of true wining and loosing in life. We should take the occasion whenever it occurs to fight for our love, to achieve it and make it happen. To want it with all that we have. This is heart and it

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comes from pure goodness. A purpose to fight for, Love for another. Education. Education is the most important issue. To teach our children to reach the sound of their inner selfgoodness that by nature is carried within us. The understanding of right and wrong that gives control to separates humans from other species. To teach children from early age (4-5 years old), where the brain takes-in the most like a sponge. We shall teach them about sustainability from early age; to know about their body, planet, universe, art, biology, respect for surroundings and how to live positively. To provide tools based on what sort of knowledge one wants to learn. To pick what you want to learn. To directly engage with their society and fulfill there needs of food, love and peace with nature. To teach our children about the impacts our actions may have on our surroundings and the dependency we have on our communities and natural resources. To teach them these core fundamental values in order to be able to live and plan for a future that serenity is at heart, truth in eyes, and logic in mind. In addition, it is believed that after serving as judge for ten years at the age of sixty you can become a teacher, where judges and teachers should be placed at the highest level of respect in the societies. Stakeholders: Target analysis An analysis has been done on the overall stakeholders based on the impact and priority on the organization.

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Impact chart takes in to account factors such as Human Rights, IT, Lobbying and proposed legislation, Economic Effect, Safety Impact, and Environmental Effects. Priority is calculated by; ability to help us (1-10) plus ability to hurt us (1-10) multiply by likelihood of acting (0-1). has been allocated to each category. Internal: managers, employees, and shareholders= 9 Value chain: Customers= 2.75, Farmers= 3.6, Workers= 2.7, Community= 3.5 External: Iran Organic Association (a very strong NGO that the company is part of for lobbying and proposing 6, legislation 2.4, www.IranOrganic.com), Competitors= 3.6 Although, farmers are not direct employees of Zubin Tea but rather suppliers of raw materials; it is strongly believed considering the fact that these farmers often live within 10 miles or less of the factory to be engaged in this fair attribution of profit, sustainability practices and motivation for the small town of Amlash to be led by example, in order to bring hope, spirit, and competitive advantage back to the domestic tea industry. Sustainability STRATEGIC PLAN: Holistic: The managing director and brand owner of Zubin Tea really takes to heart in addressing sustainability practices. As result the MD will implement the way of sustainability Government= Unions= A score

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throughout the companys activity of operations, suppliers, production, Customers, and the entire community and environment affected by upon completing the UCLA Global Sustainability certification program, which a general knowledge of management, law, engineering, and educational aspect of sustainability will be attained. With this tool the MD will engage the entire stakeholders in to an approach that is guided by Zubinism, goodwill, transparency, and equal fairness with respect to natural resources in order to achieve sustainability. It will be a culture that will be followed by. Formal Policy & Vision: In each section of the organization there will be leaders/supervisors that will set as examples of way of thought and behavior as well as putting up sign boards around the facilities for the workers to be constantly reminded by the pure vision that the organization follows to respect this opportunity of a fair working environment that is based on Zubinism. Seasonal seminars will be hold to discuss issues, bring the value chain closer, and guidelines for Zubinism. Measurable Objectives: It is estimated that a change from the current packaging, which is bleach virgin paper imported with aluminum virgin metalize to a unbleached recycled paper poly laminated from domestic producers will bring down the CO2 emission of packaging by 60-70%. If two fifths of energy use in this industry is allocated to processing, packaging, and distribution by cutting 70% of packaging and distribution, we can estimate that we have reduced about 20% of the total companys carbon footprint. The company aims to reach this goal by 2015. The Company is inspired by environmental best

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practices. Therefore, by 2020 ZubinTea aims to be the first carbon free emissions tea company in the world. In addition, the company aims to improve the standard of living by 15-20% through 2030 for the farmers, workers, customers, and the surrounding community. Assessment of Legislation and Guidelines: In terms of legislations, Iran has not taken much initiation to advocate or regulate pro-environmental practices or better said it is at a very preliminary stage. Only recently, subsidies for energy usages such as gas, electricity and petrol have been lifted. However, Zubin Tea will continue to act as a responsible company and lead the way in sustainability practices in order to be ahead of future governmental legislations and regulations in Iran and follow standards such as ISO-14000 and Fair-Trade for social and environmental impacts. Clearly Defined Initiatives in All Areas of the Business: Management, as stated above will preach the new sustainability standards and way in every aspect and dimension of behavior, policy making and decision making. Marketing will be based on fair and sustainability practices, product healthiness, and local support. All Operations will aim to reduce carbon footprint to which source it gets energy from, of eco-friendly production, product reduce packaging design, reduce waste

distribution and transportation carbon footprint and energy star manufacturing machinery. Moreover, the goals stated above will be achieved through best choice of sustainable packaging, fair trade practices, organic farming, tight waste management, energy star manufacturing equipment, installation of solar PV

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and

wind

turbines

for

generating

electricity,

and

most

importantly serve its community of 1200 farmers and workers for a better and fair living environment. Cost/Benefit Analysis: All initiatives and strategies will be used to do business primarily to make profit, which will conduct cost effectiveness of all initiatives by ROI=Benefits/cost cost x 100, and then lead the company to measurements of sustainability; otherwise the business will not last to pursue its operations. Where the company gives farmers more profit than the industrys standard, it will give Zubin Tea a competitive advantage by getting premium quality of tea leafs by which the farmers provide by the great motivation created for them thus a great quality of tea, where no other company can compete with it in quality terms. Therefore, even though the company will increase cost in some areas but it will offset it in other initiatives or impacts, which will be more a more long lasting and sustainable operation.

STRATEGY DESIGN: OPERATIONS PLAN - PRODUCT & PROCESS In order to achieve the sustainability strategic plan stated above necessary steps and changes need to take place in order reduce carbon footprint, engage society, and enhance product quality. Zubin Tea Eco-design- [REPAIR] Resources: Fortunately, tea has limited negative environmental impacts on earth. In order for one to consume Zubin Tea, they will need cattle to boil water and a teapot
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placed on top of the cattle for the tea to brew. At this level, it can only be advised are to use energy from star stove/heating sources. equipment, which powered renewable

Cattles are usually made from metal and teapots from clay. This is the best sustainable equipment to brew good quality tea. In order for the company to prevent extra waste and resource extraction, it does not specifically introduce tea bags. Product is provided as a loose tea. Emissions: There are no environmental hazardous releases during the use of Zubin Tea. Packaging: More sustainable packaging is being planed and examined. From paper cartoon and poly propane packaging to Unbleached recycled paper and poly lamination from domestic sources. It is estimated that a change from the current packaging, which is bleach virgin paper imported with aluminum virgin metalize to a unbleached recycled paper poly laminated from domestic producers will bring down the CO2 emission of packaging by 60-70%. Awareness: The product has an Organic certification that is displayed on packaging. Furthermore, certification for FairTrade practices and ISO 14001 are strongly aimed to attain. The company is inspired greatly by the concept of sustainability and benefit of all; therefore, plans are being elaborated to engage farmers more in to the operations and partnership with a sustainable strategy. Farmers in this industry are highly neglected; although, they put much of the effort in producing tea. Therefore, as a motivation for producing greater quality of tea at the gardens, the company will allocate shares for the

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sales. In addition, further supporting Zubin Teas local junior soccer team to higher groups and investments in local fields will left the spirit of the community as well as a sense of stronger ties between brand and community, which will be projected in brand awareness by word of mouth and labeling. Inputs: Energy use for the machinery to process tea leafs for consumption are mainly cause of CO2; therefore, the company has set goals to operate on renewable energy basis by 2020. In addition, organic tea leafs, fair trade agreements, and ISO 14001 will be established. Retirement/Cradle-to Cradle: To begin with, the tea itself after brewed is 100% biodegradable and compostable. Therefore, the main concern is the packaging. There is not much that can be used from the C2C concept for this purpose other than using recycled packaging material and aiming for a closed-loop packaging cycle; however, an alternative packaging of glass or metal jars can be introduced for a long cycle of reusability of the packaging. Also, it is hoped in future to plan and create refill stations in supermarkets by using these jars. Of course this will highly depend on the practicality and consumer education to pick certain behavior. Defining parameters of the analysis for Zubin Tea of carbon impacts: Operational environmental impact assessment of the industry: emissions for its total cycle of operational

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The food sector uses about 10-15 percent of all energy in the industrialized countries, and somewhat more in the United States. Despite improving efficiencies, about two-fifths of that energy goes to food processing, packaging, and distribution, and another two-fifths to refrigeration and cooking by final users. Only one-fifths of it is actually used on the farm, half of that in the form of chemicals applied to the land. (Natural Capitalism, Chapter 10, Food for Life) Past establishments from conventional to organic farming: Zubin Tea has adopted organic farming by educating farmers and contracting long-term leases to be provided by organic tea leafs. This stage is called conversion period, which is the time that takes for the soil to purify (usually three years for tea farms on steep hills) by current organic agriculture practices such as biological pest control. This means that there are no chemical fertilizers used to pesticide tea farms. For this purpose, the company uses a kind of ladybug that acts as predator to eat pests produced in tea farms. This not only produces a more healthy tea but also preserves the soil from harmful chemicals for generations of agriculture. Therefore, it is crucial to understand the entire living system and elements of producing, packaging, distributing, consuming and wasting of Zubin Tea in order to be a responsible citizen of the planet earth. Tea, in general is perhaps the most sustainable product in the world. Therefore, with a great understanding of the living system one can manage on a very sustainable and eco friendly farming, manufacturing process and operations. As mentioned above,

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the organic agriculture done by the companys tea farms deducts half of the one-fifths of energy waste by chemicals applied to other lands. 10% total reduction on standard carbon footprint industry. Operational environmental impact assessment of Zubin Tea: Scope 1: Direct Emissions The direct carbon emissions production of manufacturing and packaging Zubin Tea consist of electricity used for the lightning of the factory facility and packaging as well as the machinery used for heating/drying processing tea is powered by Gas. Furthermore, 80,000 packages of 465 grams of Zubin Tea are sold per year, currently, which this is expected to rise in the following years to 200,000 PKG/Year. In this prospers, tea is a relatively energy-efficient beverage. A cup of tea, made by boiling only the amount of water you need, produces only about a tenth of the carbon footprint generated by a large cup of cappuccino (Source: The Worlds Water, 2008-2009 by Peter Gleick, et al, www.waterfootprint.org). To put this into perspective, if you drink four cups of black tea every day for a year, you would have only used up as much energy as a single 40-mile car ride. On the other hand, the energy involved in a three-a-day latte habit is equivalent to flying halfway to Europe! Even so minimal carbon footprint created by consuming tea, most of this is attributed to the manufacturing process. In this process there are big heaters, which use up a lot of Gas. Packaging is another element for producing carbon emissions. For this purpose, a life cycle analysis will be

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conducted to measure the best alternative for eco friendly packaging. Current packaging: Bleached virgin paper and virgin aluminum-imported. Alternative: Unbleached recycled paper and poly lamination domestic Scope 2: Indirect Emissions The company overseas and gets supplied from 40 hectors of organic agricultural tea gardens. From one hector of tea garden, 7 tone of tea leafs can be harvested per year. In order to manufacture one kilogram of black tea one needs 4.4 kilograms of green tea leafs. Zubin Tea does not own any tea farms; however, it has adopted organic farming by educating farmers and contracting long-term leases to be provided by organic tea leafs. This means that there are no chemical fertilizers used to pesticide tea farms. This not only produces a more healthy tea but also preserves the soil from harmful chemicals for generations of agriculture. Therefore, in supply of raw material there are no significant carbon emissions. Moreover, the factory is substantially close to farms therefore transportation of raw material is not sizable. Although, having farmers count only 1% of the total GDP, those who sell and buy from farmers- the entire food-supplying system, directly and indirectly- have a share about 14 times as large, means that not only the farmers are getting a very small cut of the profit but also creating the least amount of carbon footprint for any given agricultural product. (Natural Capitalism, Chapter 10, Food for Life) Scope 3: other emissions

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Supply chain is another part of the carbon emissions caused by the operations and sales of Zubin Tea. Currently, sales are taken part in mostly wholesales to big organizations and companies. In addition, other sales are collaborated by direct sales in expos. This is part of a sustainable act to provide direct sales to end consumers to bring down cost of commissions, inventory, and product travel. Management travel to production site as well as misalliance trips for factory operations are taken in to account as vehicle travels for carbon emissions. Type used Electricity produced 25,150 Kilo Watts by coil (Direct) Gas (Direct) Packaging (Direct) Vehicle (Other) 22,710 m^3 80,000 (of 465gram PKG) Travels 1,200 Benzene liters of 2,400 14,253 74,262 of energy Yearly consumption Carbon footprint

(Pounds of Carbon)

Total atmospheric carbon contribution is approximately 90915 pounds per year. That's 333355 pounds of carbon dioxide. Life Cycle Assessment for Packaging of Zubin Tea: Goal and scope of the study: The primary goal is to choose the best packaging and service for Zubin Tea with the least effect on human health and the environment. Conducting an LCA helped to guide the development of new products,
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processes, or activities toward a net reduction of resource requirements and emissions. In order to further analyze LCA for Zubin Tea packaging, these questions were evaluated and analyzed that were reflected on the LCA calculation. The report of the calculations on the www.LCAcalculator.com is attached on a separate file to this study. Additionally, the calculations are not accurate because of insufficient information in attaining LCA facts. However, the research was able to calculate the percentage difference in changing methods of packaging. An LCA includes all four stages of a product or process life cycle: raw material acquisition, manufacturing, use/reuse/ maintenance, and recycle/waste management. In this study raw material such as paper, aluminum, glass, poly UV plastic, and cardboard based on a virgin and recycled criteria were evaluated. Decision-making was finalized upon the least use of energy for extraction and later on for manufacturing.

(Figure 2, Life cycle stages, ISO 1997)

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In addition, domestic versus imported material and distribution are taken into account. Where imported raw material or manufactured goods have a greater carbon footprint due to transportation as oppose to domestic use of products. Furthermore, in choosing a sustainable and eco friendly packaging for Zubin Tea, it is deeply taken into consideration elements such as reuse, multi use and recyclable packaging at the end of its life cycle with less amount of energy needed for these purposes. Below are the three categories picked after finalizing evaluation based on LCA calculations and carbon footprint on packaging: A) Current packaging: Bleached virgin paper and virgin aluminum-imported B) Alternative: Unbleached recycled paper and poly lamination - domestic C) Compared with Aluminum but better alternative: Glass jar and cork domestic A) Bleached virgin paper and virgin aluminumimported VS. B) Unbleached recycled paper varnished domestic: The EIA states on its website that "a paper mill uses 40 percent less energy to make paper from recycled paper than it does to make paper from fresh lumber." Recycled paper is the greenest option overall it uses up waste paper and its production requires less energy and fewer chemicals. Paper manufacturing and printing ordinarily involves the use of a wide range of hazardous chemicals. It is estimated that a change from the

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current packaging, which is bleach virgin paper imported with aluminum virgin metalize to a unbleached recycled paper poly laminated from domestic producers will bring down the CO2 emission of packaging by 60-70%. If two fifths of energy use in this industry is allocated to processing, packaging, and distribution by cutting 70% of packaging and distribution, we can estimate that we have reduced about 20% of the total companys carbon footprint. (Estimations established from www.LCAcalculator.com) This significant is easily achievable with minor design modifications in packaging. C) Compared with Aluminum but better alternative: Glass jars and cork domestic: Zubin Tea has incorporated a packaging of glass jar in order to cultivate a system that consumers learn to manage a sustainable practices of a packaging that is multi use and 100% recyclable with a life cycle of over 5 years, as part of their sustainability ambitions.

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ZubinTeaLCA-PKG ENERGY (MJ) Extraction Manufacturing Normal Glass Virgin: Paper, Aluminum & Cardboard Recycled: Paper, other 0.27 5.64 0.15 6.06 plastics & Cardboard 0.95 51 0.22 52.17 9.9 & Transportat ion 5.4 Disposal 12.75 Net Energy Use Over Life Cycle 28.05

60 50 40 30 20 10 0 Extraction &Manufac turing Transport ation Disposal Net Energy Use Over Life Cycle Normal Glass Vigin: Paper, Aluminum & Cardboard Recycled: Paper, other plasticts & Cardboard

Recycled: Paper, other plasticts & Cardboard Vigin: Paper, A luminum & Cardboard Normal Glass

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STRATEGY DESIGN: Green Marketing Plan Generally, marketing for Zubin Tea will be based on sustainable operations, product exclusivity and healthiness, and local support. Elaborating on the three Cs and four Ps of green marketing, the company can draw a clear set of assets and qualities that contribute to the success of sales and marketing. Three Cs: Company/Core Competencies: Being the pioneer in introducing organic tea to the market, the value given to the community as for the company being truly socially responsible, and goals set for 2020 to be the first carbon emission free tea company in the world are core competencies and reputation of Zubin Tea that should clearly and loudly be conveyed to the consumers. Customers: Considering that 60% of the total populations of 80 million people are under the age of 30 years old, it creates a huge market for early adopters and risk-takers for trying and switching to a healthy organic tea, a population that is patriotic and health conscious. Therefore, through advocacy of socially and environmentally responsible operations, and presenting facts and evidence to the mass is highly considered for their choice of purchasing Zubin Tea. Competition: Currently, there are neither brands nor products that offer organic tea other than Zubin Tea, leave alone sustainable. Therefore, by staying ahead of the game and being the pioneer in the market as well as introducing varieties in products to the market, it will greatly contribute to the brand recognition and competitive advantage of the company.

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Four Ps: Product: Zubin Tea needs to follow the goals and plans previously stated seriously and by full dedication to them in order to establish a steady branding reputation of healthy, organic, green and sustainable as well as being known for the first and most advance tea company in the nation in those terms. The products consist of the organic spring followers, which is only 8% of the total production of any given tea manufacturing in the world. Promotion: Since organic products and sustainability is a relatively new concept in Iran, there are limited places for positioning the company in these categories. However, Zubin Tea has followed and led the industry by any new development in the country. Certifications: The Company is the first organic tea and yet the only company certified by the Iran Organic Association. Furthermore, it plans to attain and comply by the ISO-14001 and fair trade certification for international recognition and marketing. Green Slogans and Statements: The company will need to focus on creative slogans and statements that portray the role it has taken such as enhancing the living quality and standards of its stakeholders and the health of its consumers as well as respect for the nature, sustainability. Example of existing slogans, The Natural Way to Getting Healthy. PR and network marketing: By being a pioneer in this industry and movement in the country, the Company as been able to take advantage of free media and publications covered from the

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City and governmental events in the past. Reports on national television have been broadcasted that has shown the brand and the speech of the managing director. Consequently, the Company has received awards and recognitions that the Company display on the website and expos. Therefore, Zubin Tea plans to further use the word of mouth by officials and its community by setting itself as an example. Open Source Marketing: In order to test the market and get costumer feedback, the Company focused on many event and expos for one year, where they provided sampling to get direct feedback from customers, inform and educate them by Zubin Teas product and operations. Green Events: So far 80% of the events and expos that Zubin Tea has participated have been specialized for green products, and it tends to continue its participation in such events, where the brand can be associated with titles and subjects of the event. Green events such as the first healthy and organic food and agricultural products Expo, host by the city, and healthy and organic drinks are some of the events participated. These events have all been first time category and Zubin Tea has been always part of them. In addition, great promotional discounts were offered in these events as a result of goodwill and direct distribution from producer. Experience has shown that these sorts of participations have great impact in customer awareness, as there is a chance to present product and operations as sustainable as well as to provide great prices as direct sales.

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Green Publications: The same matter as Green Events goes to Green Publications. Basically, the company has either led the movement of organic products and sustainability or waited for opportunities to participate in occasions. Either way the company is established itself as a green company in the directory of the companies and tends to strongly continue its focus on this matter. Placement: One matter that Zubin Tea has kept its focus and strategy is that it has associated its product and company with organization and companies that share the same value or purpose, and it will continue to follow this strategy. For example, the company did not take any initiatives to distribute its product in supermarkets until there was a place for organic products in sales points. Therefore, meanwhile it continued with expo sales, Internet, and telephone sales. In Iran, there are centers around the cities, operated by the City, which recently began a chain like Farmers Market with a touch of Traders Joes concept, where healthy and organic products are being sold. Again, Zubin Tea was the first brand of tea to be introduced by these locations. The Company plans to fall in to negotiations for big supermarket chains to establish Organic sections within the supermarket and for Zubin Tea to provide sampling to further pursue its strategy and goals for marketing and being associated as a green product. Pricing: One study on Organic Consumers Association, explains that regardless the economic hardships, rising prices for energy, food prices and other factors, Consumers show that they continue to purchase healthy and organic food. Moreover,

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the article state that consumers will not sacrifice quality for price; the quality of that food will remain high in order to preserve truly satisfying and enjoyable experiences. In short, consumers will not compromise their values (e.g., health, wellness, sustainability, etc.). On the same website it illustrates that 54% of US consumers would prefer to see organic agriculture become the predominant form of food production--as opposed to conventional, chemical-intensive farming or agricultural biotechnology. Zubin Tea has many advantages and opportunities to price its product to 100% higher than the average non-organic and non-sustainable products. Currently, the product is being sold 20% higher compared to the average non-organic product, yet making substantial profit, which it is gathered to pursue cost in the sustainable plan. Typically, it is known that a safer, healthier, eco-friendly, and socially responsible product is priced higher. Therefore, for a premium organic and sustainable product, the benefit for all its stakeholder is available; since the Company plans to share profit fairly, provided the sustainable strategic and green marketing plan allows for the product to sell at a reasonable higher price. Greening the Consumers: As Zubin Tea adopts and

implements sustainability practices and cultures, customers will be informed through labeling and expos that Zubin Tea will participate, how Zubin Tea is serving its community, farmers, worker, employees, as well as its eco-friendly packaging and its product, organic spring flower tea, how it will benefit their

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health and pleasure substantially as oppose to the artificial and chemical teas in the market, as well as the important role of the support they can have by choosing Zubin Tea as their primary source of tea instead of imported teas in order to support fellow country men farmers and all that Zubin Tea operations impact responsibly and really show by heart that it respects the nature and its community.

STRATEGY DESIGN: HUMAN RESOURCES PLAN At Zubin Tea is planned to bring hope and demand the creation of a new path in the industry that mostly gives greater attention to its suppliers of farmers and workers. Treatment of Employees: Zubin Tea continues to follow on the importance of a healthy, safe, and positive working environment, which has strongly focused in establishment during the years. Safety and healthy measures are above compliances set by government entities. It aims to demonstrate true meaning of looking out for its Value Chain that can be affected of operations or directly engaged, and preaching the way for others in order to achieve the sense of support of local domestic production by customers as well as to attain full prosper. Employees will be trained towards a mentality that they, themselves get to decide on how much salary they deserve to have, approved by other colleagues. A 50% profit will be allocated to all employees and workers. In addition, performance on task, sincerity, consistency, and positive

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goodwill attitude are measurements for a ones upward mobility or dismissal. Actions of Employees: Organization: The management tends to lean more decisions and brain storming of a consensus method of organizational management in order to enhance creativity and consideration of all matters. Although, farmers are not direct employees of Zubin Tea but rather suppliers of raw materials; it is strongly believed considering the fact that these farmers often live within 10 miles or less of the factory to be engaged in this fair attribution of profit, sustainability practices and motivation for the small town of Amlash to be led by example, in order to bring hope, spirit, and competitive advantage back to the domestic tea industry. Training: All that are engaged or impacted in the operations are taught ethics the way of the culture of Sustainability defined by Zubinism, which focuses on goodwill, truthfulness, and transparency behaviors. Top management will lead and behave by example and seminars will take in place, where these fundamentals will be discussed. It is planed to implement the sustainability mentality and thought in order for the organization to be able to execute decisions by these core values rather than setting detail practices; however, details will come to attention by implementations. Seasonal seminars will be hold to discuss issues, bring the value chain closer, and guidelines for Zubinism. Information: The flow of information of new developments and key strategic measurements as well as communication

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between the top management and between leaders and ultimately workers is key for any organization in order to provide clarity and creativity to further pursue in the positive direction. At Zubin Tea it is planned to create a Transparency that all concerns, strengths, new developments on strategies and measurements, are sent and received between all members of the organization by taking an active interest in sustainability and by looking inside and outside the company for solutions daily to leaders that will reflect to top management as well in order to Engage everyone in the Network with the Respect of all input and analysis. It is vital for everyone in the network to understand that the sustainability of their work, community and benefits rely on the basis of goodwill, truthfulness and respect of the point of view and communications that can contribute to great success of the production quality and customer satisfaction, which provide sparks for constructive ideas. Recruitment/Compensation: Zubin Tea aims to create a sustainable working community primarily for the local residents that live poorly, seek jobs that pays for basic living, and provides long-term stability. However, the tea industry has had a very difficult path for all that are involved in the domestic production, which has resulted in moved out gardens, factories and communities for other working industries and bigger cities, an issue that can been seen globally. Therefore, if Zubin Tea creates a new life of sustainability by a faith to help and give back fairly to the workers and farmers that deserve the right and fair share of profit beyond any corporate standard in the

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agriculture industry because the company can not make profit if it was not their work, and make everyone realize the value of the goodwill the company has for them to appreciate and respect the durability of the organization. It will become a place and community that people will want to be part of it to benefit of such fair and good conditions to live and work; therefore, they will follow the way of respect of all with goodwill and truthfulness and this is what really the company seeks to feel and see in the recruitment, people that are wise and not clever. The compensation will follow, as generations will work in the farming, producing and sales of the product, as the companys asset becomes their reliant future. Implementations & Action Plan: Base goals, guidelines, and directions for achieving sustainability for Zubin Tea in accordance with Global Reporting Initiative (GRI) in order to attain different certifications such as ISO14001-measurements-benchmarking, cost benefit analysis, and return on investment. In addition to GRIs 3 categories of the triple bottom line defined as Social, Economic, and Environmental impact, the Company will follow Werbach concept of categorizing the Social Impacts by two added by a Cultural aspect, where is defined and measured by Zubinism. The sustainability plan for Zubin Tea is a broader approach in finding solutions in solving current financial and social aspects of the stakeholders defined in this project with an added spirit to the business sense for benefit of all and longterm outlook following strong bonds with a significant amount

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of population in the local mass encountered by operations and respect for the scarcity of natural resources as explained and stated in this plan, the Company should take necessary guided steps for implementation.

ASSESSMENT AND FOLLOW-UP GLOBAL REPORTING INITIATIVE INDICATORS: GRI should be used to do business primarily to make profit and then lead company to measurements of sustainability. All properties and stakeholders are taken in to account to get measured and what gets measured, gets done. Significant risk to the organization, critical factor for the organizational organization sustainable indicators. Environmental Impacts: Material Aspects. The Company has reduced carbon footprint of packaging product by 65% by using recyclable material, a 20% of the total carbon emissions of the operations of Zubin Tea. Product Aspect. In addition, practicing organic farming contributes to a 10% reduction of carbon footprint due to elimination of any chemical fertilizer and artificial flavoring, comparing to conventional industry average. A total of 30% reduction of the overall previous carbon footprint. Social Impacts: Equality Aspect. The lack of motivation of farmers to harvest good quality of tea, the risk of vanishing success, and how the they are core can competencies or could metrics of in the to GRI contribute

development

additional

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farmers and gardens by current industry regulation bugs and standards have been addressed by improving living standards by 10% through using 100% of the local community workforce paid by task, free from any discrimination of men or women. Additionally, fair allocation of profit sharing to the external stakeholders such as farmers and internal such as workers has given a socially responsible sense to the Company, promising a sustainable community. Economical Impacts: Market Presence Aspect. The Companys performance on economic dimensions has created a niche-market for the domestic farmers and producers to differentiate themselves as an organic and socially responsible operations, compared to imported non-organic and nonsustainable products, which will impact the survival of the entire chain of financial dependency of families and businesses in the industry of tea in Iran provided the rest of the industry follow the sustainability. However, Zubin Tea shows as an example of solidarity, fairness and longevity of sustainable practices, which contributes to the Companys asset of brand reputation. In addition, switching to recyclable paper and lowering commute benefits the Company by a 10% reduction in total cost. long-term operation supported by the local

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Although many of the suggestions in this philosophy may seem intuitive, the fundamental changes encouraged by them will not be easy for people, societies and businesses to accomplish; however, in time with rightful way of thinking and practice of Zubinism, it will be soon, like second nature to peoples system thinking. To make people better off requires no new theories, and needs only common sense. Change for sustainability is done by people that go against the flow of society.

Zubin Amiri March 27th, 2011

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