The importance of Sustainability

Sustainability

Sustainability is so much more than a buzz-word, and the industry is certainly growing more aware, not just of the steps needed to take now but also how to future-proof business. Here we catch up with some experts who share opinions and examples of how sustainability is become the norm.

The Sustainability In Licensing Conference 2021 took place in June, joined by over 500 attendees from around the globe - all on a mission to be updated, educated and informed on the latest movements as the consumer products industry heads for a more sustainable future. The conference was attended by brand owners, product suppliers and retailers from all core categories; toy, housewares, gift, greetings, apparel, textiles, and many, many more.

We caught up with Helena Mansell-Stopher, Founder of Products of Change about the conference and what the industry can take from it:

“At the beginning of the year we thought we would be in a position to host SILC live, but alas that was not to be due to Covid. We did however welcome over 500 delegates across the platform from 20 countries for the two day conference, which was an increase from last year showcasing the focus from the industry to drive sustainable change, a poll on day one of the conference actually showed that 75% of the audience already have a team in place dedicated to building sustainable practices up from last year which is extremely encouraging to see. “Across the two days we learned what retail is driving and requiring of the industry from Asda, Tesco, Dayrize and Character.com to brand owners and manufacturers such as Lego and Zuru showcasing their current sustainable journeys. The Eden Project, the gaming industry and marketeers focused on how as brand owners we can use the industry to drive real social and environmental change, we also learned what government is requiring with new EU legislation. With over 70% of a manufacturers scope 3 emissions coming from their supply chain it was important that we focused on how to reduce this with 3 sessions across the two days showcasing solutions. “The two days were pack with insights to transform and advance the industry, taking feedback from last year’s conference and making sure we kept the conversation moving forward. Summing up the conference, Helena said: “Our industry has been given a great opportunity to drive social and environmental change through the brands we manage, a responsibility to use this opportunity to make a difference and SILC is very much part of this. “Following the conference we are now creating specific workstreams within the Products of Change community to build change, and have already started working on the SILC22 agenda, more to be announced in the coming months.”

Publishing

In other recent achievements, Wastebuster’s not for profit, toy, and tech recycling programme, Recycle to Read, is now working with HarperCollins who will be supplying books as rewards to participating schools The Recycle to Read campaign aims to develop a UK wide infrastructure for the recycling of hard to recycle plastics and engage children in environmental education by showing them the value of their old and unwanted toys. Phase one of the programme, which is currently in the pilot stage, will see toy and tech takeback collections organised in schools throughout the UK. HarperCollins will be rewarding participating schools with a hand-picked list of fiction and non-fiction selected for the Recycle to Read campaign. Books from the Collins, Farshore and HarperCollins Children’s Books imprints are included, all available at 30% less than RRP for all schools collecting old toys and tech in exchange for vouchers to pay for books. In working with HarperCollins the programme ensures that participating schools will not only benefit from free

environmental education, they will also be able to claim back books and literacy materials in exchange for the recyclable materials they collect. HarperCollins will be joining all major UK children’s magazine publishers, local authorities, universities, plastic industry associations, trusts and NGOs, in this ground-breaking not-for-profit education, research and infrastructure development project that is designed to deliver on several UN Sustainable Development Goals and unlock considerable social, economic, and environmental benefits for the communities in which it operates. Wastebuster is an environmental education company specialising in recycling reward programmes. Developed by Wastebuster and in association with EPPIC and Products of Change, the Recycle to Read programme is a not for profit, consumerfriendly, infrastructure solution for recycling all plastic toys.

Sustainability Comes to the Fore with a Strong Footing

Utku Tansel LLB, MBA looks at heightened awareness in the fashion sector. The fashion sector is seeing a heightened awareness about its impact on climate, which has been accelerated by the pandemic. As mentioned in Mintel Trend Rethink Plastic, brands and consumers are reviewing their own behaviours to prevent plastic pollution. Our throwaway culture is also becoming a contentious issue and as highlighted in Mintel Trend Hungry Planet, consumers are looking for ways to conserve the planet’s resources. Over the past year we have seen a number of initiatives bringing footwear brands more in alignment with the concept of the circular economy. In light of this, we explore what steps European footwear retailers are taking to reduce their carbon footprint. Foot Locker Europe’s recent move to open a new sustainability driven store in Barcelona, Spain with recycled materials such as mannequins created from reused sneakers, is a clear confirmation that sustainability is gaining further traction in footwear, as highlighted in our latest Footwear Retailing Europe Report. In September 2020, French outdoor brand Salomon designed a pair of running shoes that are completely recyclable. The thread used to sew the shoes is the same material as the rest of the upper. The shoe’s upper, itself is made from recycled polyester, can be recycled again into new thread for fabric, and the foam sole can be ground up and used in the brand’s ski boots. Savana, a sustainable Portuguese footwear company, launched a new brand, Contagious, made entirely of 100% recyclable materials. The outside of the shoe is made of cork, recycled mesh and the entire lining is made of 100% organic cotton. Zouri, another Portuguese-based footwear brand – which is known for using plastic waste collected from the ocean in its productive process – is now using apple waste in its products. The brand has launched a new range of children’s footwear using apple peel as a material to make shoes. In October 2020, fashion designer Rick Owens teamed up with French sustainable footwear label Veja to create a range of eco-friendly shoes for the Autumn/Winter season. The collaboration is made up of two seasonally-appropriate knitted items, combining Owens’ signature aesthetic with Veja’s eco-conscious messaging. Both models are fully sustainable and feature Veja’s first-ever natural cork sole. In March 2021, footwear brand Melissa teamed up with Paris-based “hardcore vegan” brand Rombaut to launch a fully vegan collection of jelly shoes. The Melissa x Rombaut collection features two styles that have been reinvented in vegan jelly form. Each pair is made out of 50% recycled PVC sourced from factory waste and 30% bio-based renewable carbon content.

What we think

Strong environmental credentials could well become a clear product differentiator across Europe. It should be noted that it could be quite a challenge to communicate the benefits and the overall sustainability initiative to consumers. In order to overcome this, retailers could offer various incentives to tap into the opportunity and with the issue of waste high on the agenda, they should be looking at how they encourage their customers to recycle unwanted footwear. One way they could do this is via a reward scheme (perhaps linked to a wider loyalty scheme). We’ve seen retailers like TK Maxx in the UK trialling a scheme which rewards customers by exchanging unwanted items for vouchers that can be spent in store, while the US start-up For Days gives shop credits in return for clothes they no longer wear, which are then resold or recycled. Furthermore, specialist footwear retailers could look at creating areas in-store and online dedicated to sustainable footwear, so that customers can choose products based on their environmental preferences. For example, we’ve seen online giant Amazon launch an ‘eco-friendly’ shopping platform offering more than 40,000 sustainable products, initially in the US, but this has now been rolled out to Italy, France, Spain, Germany and the UK.

Alex Willcocks, Co-Founder of Digital Marketing Agency Engage, discusses why businesses should invest in sustainability marketing and how they can best showcase their credentials.

Sustainability isn’t only great for people and the planet, it’s great for business too. Customers today have their pick of competitively priced, high quality products and services. Adopting a visible and positive stance on the issues of environment, social and governance (ESG) that is authentic and aligned to consumer values will make a business stand out from the crowd. Thanks to the climate crisis and COVID-19, sustainability has never been so high on the consumer agenda. It’s therefore important that brands communicate their efforts clearly to drive loyalty in current customers, and generate new business. Evidence repeatedly shows that investment in combating the challenges faced by ESG increases business profits, with eight out of 10 customers happy to pay a 20 percent premium for products and services delivered through sustainable practices1.

Why invest?

Utku Tansel

While companies should invest in environmentally friendly initiatives to take care of the planet, businesses leading the way in sustainability, especially from a marketing perspective, are often proven to financially outperform those lagging behind. A new international study by Unilever revealed that a third of consumers (33%) are now choosing to buy from brands they believe are doing social or environmental good. A strong story is a powerful marketing tool with a proven positive influence on both brand and reputation. Aligning with what consumers care about also builds equity and value, and mitigates key challenges including strengthening stakeholder relationships, increasing attractiveness to investors, and offering a competitive advantage in a crowded market. This is particularly true for Gen-Z and Millennials who are increasingly using their spending power to affect the change they want to see. In fact, 58 percent of Gen-Z and 61 percent of millennials would pay more for ecofriendly products. While the future of business holds unparalleled opportunities, this is reserved for organisations which have a proven positive influence on society and the environment, and use marketing to showcase this effectively. Inaction can risk significant negative financial impacts and slower growth.

How to market?

It can be challenging to understand where to start when it comes to marketing and showcasing credentials to consumers and stakeholders. Posting across multiple internal and external channels for different brands, audiences and purposes can lead to inconsistent content, limited visibility, duplication of internal effort, and complex user journeys. Sustainability hubs are a great option for brands keen to invest in marketing. A centralised, user-friendly hub facilitates engaging content aimed at all audiences, which provides clear insights into a brand’s eco-friendly efforts. Businesses should also consider supplementing their external marketing strategy with internal training and education as this can lead to a cultural shift amongst employees, and greater movement towards sustainably conscious leadership. A study by SHRM found that morale was 55 percent improved in companies with strong sustainability programs, and employee loyalty was 38 percent higher4. Securing eco-credentials should be a priority for all companies, no matter their sector or customer-base, and sharing these externally is a great method of driving customer loyalty, invigorating investment and encouraging other organisations to follow suit.

Marketing in action

Sustainability is at the heart of everything that Taylors of Harrogate do, however the company previously had no single resource for consumers to find out about the projects, hard work and success stories. The tea and coffee merchant invested in an innovative hub and interactive annual reports in December 2019 to ensure the wealth of content is easily accessible and to drive engagement around its sustainability journey.