Sustainability: a buzzword in retail or critical to success?

As Oscar Wilde said, “I can resist everything except temptation.” In this day and age, temptation is everywhere we look. The temptation to keep scrolling through the latest trends on our devices, the temptation to be lured into stores, and the temptation to shop ‘till we drop because of falling retail prices. The temptation is real. However, do we question our temptation when we’re confronted with the facts?

The state of sustainability in retail

The reality is that the fashion industry is one of the top polluting industries in the world. With water pollution, toxic chemicals, child labor, and high levels of landfill waste, fashion brands have made a huge impact on our world. The Attenborough effect has made us more aware of climate change and our carbon footprint, but has it also made us shop differently? The British government now actively encourages and incentivizes businesses to go green and works with the British Retail Consortium to address sustainability across the industry. But do retailers that are aware of their environmental footprint, and with sustainability initiatives in place, succeed in meeting consumer demands?

What do consumers want?

According to Nielsen’s 2015 Global Corporate Sustainability Report, 66% of consumers would spend more money on products if they came from sustainable brands, and 67% of business school students would aim to incorporate environmental sustainability into their future jobs. In addition, Nielsen found that more than 85% of millennials said that it is “extremely” or “very” important that companies implement programs to improve the environment.

In general, consumers want to see more from their favorite brands. Interestingly, 81% of consumers want brands to take a stand on environmental issues, according to Sprout Social. Rumor has it that retailers that show little to no compassion for the environment are destined to lose to their competitors. So, who’s a leader in this space? Here are some examples of global retailers that have created successful sustainability initiatives:

Brands investing in sustainability

LEGO

Backed by the Vice President of Corporate Responsibility at the LEGO Group, LEGO has committed to using sustainable materials in all of its blocks and packaging, aiming for zero waste across all operations by 2030. Additionally, LEGO has partnered with World Wildlife Fund to support and build demand for sustainably sourced plastic. Since establishing its partnership in 2014, LEGO has met or exceeded all of its climate targets, including: balancing 100% of energy use with renewable resources through investing $6 billion Danish Krones in two offshore wind farms, researching and developing more sustainable materials, and improving energy efficiency of producing LEGO bricks by more than 12%.

CHANEL

From toy bricks to little black dresses, the fashion house CHANEL has also shown its dedication to sustainability. The retailer has partnered with Sulapac, which creates sustainable packaging from biodegradable materials. There are many simple changes that brands can make to show their consumers that they are a part of this movement, and technology can enable them to do so.

Selfridges

Selfridges uses its social media channels to engage with and educate its consumers about the importance of sustainability in retail. The department store often shares statistics about this issue and gives customers complete transparency about its sustainability actions and goals. Awarded “World’s Best Sustainability Campaign by a Department Store” at the Global Department Store Summit 2016, Selfridges has shown its awareness of the sustainability issues at hand.

H&M

For brands that want to move toward being more environmentally conscious, there are some simple ways of achieving this – from hosting clothing swap events to holding talks about sustainable fashion products.

H&M, with its global garment-collecting strategy – the Global Garment Collection Program – is a great example. Its initiative focuses on rewear, reuse, and recycle, rewarding customers who hand in old or unused clothing to them. For every bag of clothes that consumers donate, they receive discount cards for 15% off for their next in-store purchases. H&M has also committed to hitting certain sustainability milestones in the next decade. By 2025, all of its packaging will be reusable, recyclable, or compostable. By 2030, all packaging will be made of 100% recycled or sustainably sourced materials. Furthermore, H&M has committed to ensuring that its employees and suppliers have fair compensation and good working conditions.

Zara

Zara’s parent company, Inditex, has recently announced how its need to be green has changed its entire business model. The shocking statistic that clothing items are worn about 7-10 times before they’re discarded has convinced Zara to amend its garment production and design strategies. Sustainable, organic, and recyclable clothing is all that Zara will sell in its stores as early as 2025. That’s less than six years away and shows that the retailer has made a serious sustainability pledge with a strong sense of urgency.

Everlane

Just one visit to Everlane’s website makes it clear that it’s passionate about transparency and sustainability. Interested in a particular product from Everlane? You can quickly discover the “true cost” of producing it, by checking Everlane’s breakdown of the cost of materials, labor, transport, duties, and hardware. It’s also committed to exclusively working with ethical factories, and each factory has to go through a thorough compliance audit before a contract is signed. A prime example of Everlane’s commitment to sustainability is found in its jeans. According to Everlane, it takes 396 gallons (1,500 liters) of water to produce an average pair of jeans. But when Everylane makes a pair of jeans, it only uses 0.1 gallons (0.4 liters) of water. What’s next for Everlane? Although the company is already a market leader in sustainable fashion, it has specific goals to tackle next: No new plastic in its entire supply chain by 2021. There are some easy ways for retailers to participate in sustainability efforts. They can set up “hire me” appointments, or “recycle me” appointments, to not only increase in-store traffic but to also show proactiveness in sustainability. As Oscar Wilde said, “I can resist everything except temptation.” The ever-growing and pressing need to live on both an ethical and sustainable planet has influenced everyone. From baby boomers to post-millennials, our temptation has switched and continues to move toward buying better. Our buying behavior has changed, and retailers that continue to keep abreast of sustainability issues will ultimately succeed in becoming industry leaders. Learn more about what consumers want by checking out our recent report: “Rewriting the rules of retail engagement”.