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Entering New Markets: The Challenges of Social & Ethical Compliance

Industry Insights / admin / compliance, CSR, ethical, social, sourcing, Sustainability

Asian sourcing markets are in a state of flux. With the rise of protectionism, currency volatility and emerging manufacturing economies, companies are increasingly looking to pursue diversified sourcing strategies. Whilst the old adage of ‘not putting all your eggs in one basket’ rings true, entering new sourcing jurisdictions is not always easy. Not only must suppliers meet the quality, capacity, price and delivery requirements, but also all relevant compliance requirements. Certain markets present their own unique issues with regards to compliance expectations. Whether cultural, regulatory or standard business practices, having an insight will help mitigate the risk of buying from these countries.

New Sourcing Trends

In recent years, social and ethical compliance has become increasingly important for any purchasing decision, as issues like worker safety, modern-day slavery, fire safety and working hours have gained attention from not only NGO’s and consumers, but both governments and investors alike. ‘Corporate Social Responsibility’ strategies are widespread and ethical audits are not only common place anymore but mandated.

China’s manufacturing base has already been through an extensive compliance transformation , due to the audit requirements that have been in place for many years (backed by the Government recently on environmental practices). Similarly, Vietnam also has years of experience in the compliance arena; even to the point where new technologies are being invested in and the wider story is compelling. For example, one Vietnamese garment factory’s dye treatment plant is so good that they are using it to clean the local communities drinking water. That’s not to say that there is not any non-conformance in these markets, but just that the manufacturing base is well developed and generally understands the requirements to export products.

What about other markets that fall further from the China basket though?

Where is Sourcing Going?

Cost has always been a driver in determining emerging low cost manufacturing markets. Industries that have a reliance on cheap labor, such as garments and textiles in particular, are often the earliest entries into these markets. Many companies are therefore looking towards low-cost countries in Southeast Asia, such as Bangladesh, Cambodia, Indonesia and Myanmar, where there is an abundance of low cost labor, while others are focusing on newer locations in Africa, specifically Ethiopia.

cheap labour markets compliance — Industries such as garments and textiles often rely on cheap labour markets.

Clearly, Asia as a continent has its own idiosyncratic operational and regulatory business practices that provide an overlay of complexity when working in this part of the world. Corruption, language, cultural differences, developing fiscal and monetary policy are all often referred to. However, when entering new emerging manufacturing markets, which are not as experienced with exporting products, there are often additional challenges as the nascent manufacturing sector emerges. Being aware of such challenges in these alternative sourcing destinations should be an integral part of working with suppliers from these markets.

Bangladesh

Bangladesh’s large population, low minimum wage and high capacity strategically places the country as a great option as an alternative sourcing location. Although it has seen significant growth particularly in the traditional ‘cut and sew’ categories over the past five years, this has only seen an increase of 0.9% in exports of global market share .

Ever since the devastating and tragic collapse of Rana Plaza, workplace safety has been a key focus with the emergence of the internal initiative, the Accord on Building and Fire Safety. The accord has been responsible for the upgrading of just under 2,000 factories including fire door installations, compliant electric wiring and sprinkler systems. The Government is now looking to take over from the Accord even though some media outlets are reporting that they are not in a position to. The concerns around building safety persist with a spate of deadly fires breaking out in recent months. The decision is currently with the High Court as to whether the Accord can extend and continue its work.

sourcing compliance in Bangladesh — The Accord on Building and Fire Safety has been responsible for the upgrading of fire door installations, compliant electric wiring and sprinkler systems in Bangladesh.

Myanmar

After years of Junta rule, Myanmar does not have developed laws and regulations that support the manufacturing sector. While their fellow Asian counterparts have had exposure to social and ethical compliance requirements, many factories in Myanmar simply lack this knowledge. There have been multiple reports of underage workers and inconstant policies with minimum hiring age. Although child labor is illegal, companies have faced issues with proof of age and tampering with age verification.

The Sourcing Journal reported that many factories have found their employees regularly working more than the permitted weekly limit, usually without correct compensation, as employees do not know how to calculate their wages. Factories tend to lack compensation packages or have ones that conflict with Myanmar law for overtime and paid leave. The factories also lack experience with fire safety and emergency procedures leading to unsafe working environments and proceeds. The country’s limited rule of law and underdeveloped regulatory regime therefore make Myanmar a riskier sourcing destination as it is more susceptible to land disputes, corruption and general social and ethical compliance. There has also been the recent case of the treatment of the Rohingya People and the broader impact on international perception of doing business with this country.

Cambodia

Cambodia, like some other South East Asian countries, has duty exemptions on shipments to the EU. It is part of the ‘Everything but Arms program’ which allows what the bloc calls “vulnerable developing countries” to pay fewer or no duties on all their exports to EU bloc. However, the EU is considering revoking the special trade deal as they say the Cambodian Government had engaged in “serious and systematic violations of core human rights and labor rights”, which is one of the programs stipulations. According to Ecotextile, The American Apparel and Footwear Association (AAFA), Fair Labor Association (FLA) and six other apparel industry organizations have written letters to Prime Minister of Cambodia urging action. These letters highlighted problems linked to criminal charges and convictions of labor leaders, the Trade Union Law of 2016, and the diminished role of the Arbitration Council. Each cited as a factor for hindering progress towards improving workers rights. Beyond these, the country’s manufacturing sector also faces poverty wages, gender inequality and violence, and the potential impact automation may have on the further degradation of workers’ rights.

Ethiopia

Ethiopia offers a lot of opportunity for sourcing companies with low costs and the ability to become a source of raw materials. However, social and ethical compliance has been a significant issue. Like many Asian sourcing locations Ethiopia has many health and safety, workers compensation, and corruption concerns. However, unlike the Asian destinations mentioned, Ethiopia lacks a minimum wage. Companies already invested in Ethiopia have faced issues with land disputes as the Government has assigned land that communities consider to be jointly owned grazing land. This raises concerns of potential land grabs in Ethiopia and other potential social compliance issues. As one would expect, the general understanding of compliance is less widespread and therefore increases the risks to those investing in Ethiopia.

Summary

There is no doubt there is, to a certain extent, a commonality of issues around compliance when operating in Asia. It should also be remembered that there are examples of social and ethical non-conformance in developed markets as well. It is all of our responsibility to ensure that we are engaging with businesses, wherever they are located, that understand social and ethical compliance.

Ultimately, price will always be a driver. And with that, new markets can in certain industries provide cost savings but it is important to remember that there will generally be a higher level of risk in low cost markets. Often companies will look to leverage an established factory (such as Chinese, Taiwanese or Korean) that is relocating or opening a new facility in a new market. In these cases, there is often a presumption of similar compliance practices being transferred to the new site.

At ET2C we are committed to social and ethical compliance. We are constantly monitoring our Asian supplier base and are in the process of setting up our own Code of Conduct at all our vendor sites to reinforce the practices we expect of our partner factories. We continue to stay up to date with new sourcing destinations through our network of partners where we do not have our own offices. For more information, please contact us.

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It’s Not Just a Phase: Why the difference between Greenwashing and Sustainability is Important

Industry Insights / admin / CSR, Greenwashing, sourcing, Sustainability

Hip… tubular… fly… slammin’… At one point, these words were a mark of being one with the times; status symbols displaying social aptitude. However, over the years and through thousands of uses, these worn words are more likely to prompt an eye-roll than a positive response. Today, Could the same be said for the word “sustainable?” How about “green?” Perhaps even “environmentally-friendly?”

If you have ever felt overwhelmed or exhausted walking through any grocery store as labels and signs proudly boast the words “all natural ingredients” accompanied by pictures of bucolic landscapes with welcoming farmers smiling with their products in the foreground, you may be experiencing what is known as Green Fatigue.

Green fatigue, as defined by the website EcoWho, “becoming tired with some of the constant messages of corporate green credentials and tales of impending global doom” (EcoWho, 2018). In today’s world, it’s easy to feel a bit of green fatigue. Nobody likes being told the world may be ending or that the food they’ve been eating all their lives comes from some nightmare-inducing industrial plant. This may cause some to look away from the promises of sustainable practices. The word gets used so often, how is the average consumer supposed to know what it means or if the company is really helping the environment?

difference between greenwashing and sustainability — Pictures like this are common in outlets that support sustainability. But what does it mean?

What Happened to the Word “Sustainable?”

A lot of things happened to the word “sustainable”. While environmental friendliness picked up steam as a widespread social movement in the 1960s counterculture era, words like sustainability didn’t start popping up so much in business rhetoric until the 1970s. In the 70s, various companies capitalized on the fresh environmental policies in the US at the time, such as the National Environmental Policy Act of 1970, the Clean Water Act, and the Endangered Species Act, in order to gain favor in the eyes of the public and government.

Sustainability in Politics

However, it wasn’t long till the word sustainable began to become politicized. Politicization of science is nothing new in the United States, so once green policies became popular among democratic politicians, the opposite side of the political spectrum became skeptical about the legitimacy of the evidence used to back up these policies. A report by political scientist, David Karol, states that:

“Endorsements and campaign contributions from environmental groups now overwhelmingly go to Democratic candidates, while economic sectors frequently at odds with environmentalists, including fossil fuel producers and much of agribusiness, increasingly support Republicans. Divisions between Republican and Democratic voters on the environment, while not as great as among political elites, have grown as well” (Karol, 2018).

The result of this growing divide has seen more eye-rolling at the word “Sustainable” by those who fall on the conservative side of American politics. Right-wing news sources are often quick to decry companies promising more sustainable practices or environmentalist policies passed by the government as part of an agenda to weaken other businesses or increase taxes. Hence, these sentiments have radiated out from this community, influencing the minds of many to doubt the credibility of the word “sustainable.”

Sustainability Becoming Greenwashing in Marketing

Most people in business are familiar with the term whitewashing, which is used in reference to an entity covering up certain vices by utilizing biased investigation techniques or data. However, not as many are familiar with the term greenwashing, but they definitely have experienced it in one way or another.

So what exactly is this…Greenwashing? Business News Daily defines greenwashing as, “when a company or organization spends more time and money claiming to be “green” through advertising and marketing than actually implementing business practices that minimize environmental impact.” The article continues to mention that this is rarely caused by evil intentions but usually occurs by overexcited marketers who desperately want to sell to the rising number of environmentally conscious consumers (Edwards, 2018). And the numbers provide a good reason for enthusiasm:

environmental impact and sustainability — Shoppers in the US are becoming more environmental conscious. And so are marketers (Walker, 2013).

However, there are also good reasons for nervousness when it comes to buying products that claim to be sustainable, even if one does support the concept. For instance, in 1991, DuPont, a chemical company, used an ad portraying animals rejoicing as the company showed off its new sustainable double-hulled oil tankers. Consumers who viewed the ad had their visions of a green DuPont dashed in front of them when it was discovered that the company was the largest polluter in the US that year.

So does this mean we should give up on companies that promise to be eco-friendly? Not at all. Like in most things, the bad minority of news tends to reach us before the good majority. For the most part, businesses that promise sustainability are making a difference.

A cliché, but a Good Cliché

Still, the word sustainable draws a lot of confusion. Are there any requirements for a company to call itself sustainable? What are the motivations to actually become sustainable? Is it all just a bunch of corporate jargon or are there results to back up these claims? These are all valid questions that any consumer doing their due diligence should be asking themselves. Nonetheless, most of these smart shoppers would be happy to report that, for the most part, there are hopeful answers.

Guidelines Exist for Responsible Marketing

For starters, there are many strategies companies can follow when becoming sustainable. One of these procedures was released by the U.S. Federal Trade Commission, which offers voluntary guidelines for green marketing claims including processes like “qualifications and disclosures should be clear, prominent and understandable,” “not [to] overstate, directly or by implication, an environmental attribute or benefit, “ and “to avoid consumer confusion about the comparisons” (Investopedia, 2018).

While these tips are voluntary, following these guidelines is great for risk management when marketing sustainability. Marketing responsibly, a company can avoid lawsuits, community outrage, or a multitude of other problems that could arise from greenwashing.

Interestingly, there is growing evidence that for a company to market ‘sustainability’, it needs to be an integral, innate part of the company’s strategy. It needs to resonate with the organization to the extent that all the stakeholders engage within the initiatives. The modern consumer has to believe that it is a genuinely held and executed mantra within the organization for it to have an impact on the brand/product resonance.

Sustainability Helps Companies Grow

The data-collection company GlobeScan points out that, “continuing the trend of the last few years, most high-ranked companies are consumer-facing brands” This means that more now than ever before, companies really do care what their consumers think about them.

The increased transparency of markets and increased access to information has boosted the practice of sustainable standards. Realizing this is companies such as Unilever, Ikea, and Patagonia, that follow through on their sustainable values which retain and capture audiences through their reputation as global leaders of sustainability (GlobeScan, 2018). This should send a clear message to marketers that the best way of selling the idea of sustainability is through actual implementation. This correlates with GlobeScan’s survey data which displays a majority of marketing experts agreeing that “Integrated sustainability values are the best way for a company to become known as a sustainable leader” (GlobeScan, 2018).

values for sustainability — Data from GlobeScan’s survey shows a majority of experts agree that integrated values are the best way for a company to become a leader in sustainability

Even so, the benefits of sustainability can help companies in more departments than just marketing. An article from McKinsley and Company presents executives of various and diverse industries sharing the benefits sustainable practices have offered to them, such as risk management, systematic management of value chains, and returns on capital through decreasing operational costs through better resource management (Bonini, 2011). So whether companies are trying to market to certain demographics or not, walking the walk for sustainability still offers many benefits for both big and small enterprises. Philip Kotler recently suggested, at Sustainable Brands 2018 – Madrid, that companies that ‘do good’ do better financially, even if there is an initial cost’. It can actually make the company more profitable.

Walking the Walk in Sustainability

So, has sustainability become a buzzword? Unfortunately, there is no denying that it has. Politicians and marketers have sucked a lot of the meaning out of the standalone expression. However, this could be for the better. It is displaying to companies that they need to go the extra mile to win over the increasing number of environmentally-conscious consumers.

Consumers are getting more detail-oriented when it comes to buying “green products,” which may come off as a chore for companies to cater towards. Evidence shows otherwise though. For instance, Walmart, number one on the Fortune 500, has saved $12 billion in global supply chain savings in 2011 through a packaging “scorecard” that lowered packaging costs throughout the company’s global supply chain by 5 percent from 2006 levels (Bonini, 2011). Walmart displays what walking the walk in sustainability can do for your company, especially in the way of supply chains.

AT ET2C, we’re serious about sustainability and it’s benefit to our existence as well as the ultimate commercial benefits for purpose driven companies. We are therefore looking into different aspects of sustainability within the supply chain and what it may mean to some of our clients. If you want to talk to us about your own sustainability objectives and how to implement them, contact us.

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A Brave New World of Materials

Industry Insights / admin / Innovation, Materials, sourcing, Sustainability

Spiders. Simply the name of these eight-legged arthropods may be enough to cause some to stop reading here. Their terrifying fangs, pitch-black eyes, and intricate webs have earned them a spot as a quintessential horror troupe. However, what if instead of putting up fake spider webs to scare trick-or-treaters during Halloween, we wear them instead? That’s right. Bio-engineers at multiple apparel companies, including the popular The North Face, are now using synthetic spider silk in their manufacturing process. But why would anyone in their right mind, let alone engineers at one of the top clothing companies in the world, encourage people to wear what essentially is a bunch of spider webs?

As it turns out, the synthetic spider silk is “light, supple, stretchy, and stronger than steel,” according to an article appearing in Popular Science (Grushkin, 2015). These strengths have justified its use in all sorts of fields, including bulletproof vests, wound dressings, and car materials. The utilization of spider webs is just one example of new and innovative materials that have started to make their way into everyday products such as clothes, building materials food, and more.

Will the next generation of clothes be made of spider webs?

Innovative materials, raw ingredients used in production that deviate from the norm, are now more popular than ever. The Industrial Technologies division of the European Commission’s Research and Innovation branch estimates that 70% of all new product innovation is based on materials with new or improved properties (Sheppard, 2012).

But why are companies so eager to adopt these unfamiliar materials? As a matter of fact, there are many explanations as to why companies utilize these innovative materials. For starters, the use of most innovative materials often decreases energy-related costs, which is a prime concern for many manufacturers. Subsequently, there are also many tax incentives for pursuing these more sustainable production methods, on both and state levels in the US and through local governments in other regions (Lagas, 2015).

The macroeconomic benefits of using these materials offer an explanation as to why governments are encouraging these new practices. According to the American Chemical Association, advanced and innovative materials can “support more efficient and sustainable manufacturing practices… reduce dependence on imported oil… lower the burden of CO2 management and improve energy supply security, sustainability, and competitiveness” (American Chemical Society, 2015). These are just some of the many reasons for companies to jump into the new world of innovative materials.

How Companies are Using Innovative Materials

Innovative materials offer a vast variety of benefits, but what exactly are companies doing to integrate these exciting new materials into their supply chains? What new products are being developed with the newfangled materials? The answer is broad and covers a vast ranges of industries and sectors. Here are some more exciting examples of these new materials in action.

Ministry of Supply
Most people are familiar with the range of products for running. However, you may be surprised to hear of someone running a half-marathon in an hour and seventeen minutes wearing a full suit. Josh Whitehead did exactly that while wearing one of the Ministry of Supply’s three-piece Aviator II suits.
While still an impressive feat, the material of the suit may have provided some assistance to Whitehead. The suit is made from warp-knitted breathable poly, which allows the suit to be “breathable, waterproof, moisture wicking, and odor controlling.” In the words of the CEO of the Ministry of Supply, “This suit isn’t designed for running in, but the fact that it can be done is great” (Ducharme, 2016).

Adidas X Parley
There is a lot of plastic in the sea. Unfortunately, the amount keeps rising by an estimated eight million metric tons every year. By 2050, it is estimated that there will be more plastic in the ocean than fish, giving a sense of urgency to this problem (EarthDay Network, 2018). However, this has also caused some companies, like Adidas, to realize an opportunity for incorporating new resources into their supply chain while also doing their part to protect our oceans.

Adidas and Parley have partnered up to manufacture shoes out of sea plastic. Parley, an ocean conservation movement, collects plastic from beaches to send to Adidas to be manufactured into stylish and well-fitting shoes. Not only is Adidas able to save money by having their raw materials donated by Parley, but they’re also able to use the material of the shoes to target the rising segment population of environmentally-concerned customers. Adidas have also recently committed to using only recycled polyester in all of its shoes and clothing with the next six years to increase the sustainability of its supply chain.

Maybe this polluted beach is the resource of your new shoes!

Other Examples of Innovative Materials
While these two examples of companies using innovative materials are inspiring, it is also important to keep in mind the vast number of advanced materials making their way into supply chains are doing so a bit more silently. Even though these materials are not as publicized, they still have a huge impact on the companies that utilize them and the customers who buy the products.

Ultra-Strength Concrete
From 2012 to 2015, China used more cement than the US has in the entire 20th century (Swanson, 2015). This rapid growth has led to concerns about the oftentimes inversely-correlated relationship between quality and quantity, leading to many construction entities looking for alternative materials. Enter the new Ultra-strength concrete. This new kind of concrete changes the contents of cement using mathematical modeling procedures, allowing for a 40% reduction in the density of the water film and a more durable and sustainable form of concrete.

Neptune Balls
Neptune Balls, or Sea Balls, are made of the foliage of a sea-grass species called Posidonia Oceanica. The waste of these plants tends to roll up into small, sphere-shaped objects, oftentimes washing up on shores across the world. The material, however, has been recognized by some manufacturers as an innovative and renewable resource for textiles. It can also be used in its raw form as an insulating material with natural fire prevention properties. The Neptune Balls are a bit of a miracle product of nature as well, since they do not rot, contain no salts or proteins, and are not harmful in any way to humans.

Fungus-Based Materials
While most people are at least familiar with fungus on an appearance level, the study of Mycology (the study of fungi) is still being pioneered in many regards. Because Mycology is relatively immature, new discoveries about the uses of these strange organisms are being made every day. One of these new uses is to produce hard foams naturally through the same processes the thread-shaped mycelium of fungi use to colonize wood, soil and other materials found nature. Essentially, the fungi create a system of very small threads that bind to various organic waste materials. These threads could be used as a reinforcing material in both construction and textile production, providing a cost-effective and natural way to develop products (Sheppard, 2012).

new materials — Mycelium of a Common Fungi Species on Wood

Integrating Innovative Materials into Supply Chains

Even while innovative materials are extremely beneficial for both the planet and the manufacturer, they don’t simply appear out of thin air. There are processes that companies undertake in order to enter into the brave new world of innovative materials.

Some of these processes include employing “green” or sustainable initiatives to keep the company on the cutting edge of technology while also showing respect for Mother Nature. Some common processes companies adopt include upgrading facilities to rid of energy-wasting processes of production, streamlining their supply chains and employee networks, and hiring “green” professionals, such as environmental economists and engineers, to help them eliminate some of the externalities that had to their total cost (Ryan, 2018).

new materials aid innovation — Massive Supply chains come with massive costs, causing many companies to look into how innovation can help them save valuable resources.

These initiatives led to a global movement of sustainable sourcing. One of the massive corporations participating in this movement is Unilever. Unilever states that its sustainable sourcing techniques have allowed them to “secure our supplies and reduce risk and volatility in our raw material supply chains,” while also “open[ing] up opportunities for innovation” (Unilever, 2018).

Companies are not always making the leap alone. Some NGOs, like the WWF, are helping companies trace products along the supply and distribution networks, measuring the impacts along the way. The information the WWF provides allows for companies to realize areas in their products that may be creating unnecessary expenses, allowing for them to explore potentially groundbreaking solutions.

In the words of the founder of Magnifeco, an online source that covers eco-fashion, “Buying isn’t the problem. Making isn’t the problem. Innovation is our way out [of wasting materials].” Eco-friendly and innovative materials not only adds value to a product but oftentimes it also saves the company from wasting valuable resources in the production process. As more and more of these new materials are incorporated into supply chains across industries around the world, industry and trade can become an asset to environmental protection efforts rather than a detriment.

Summary

Companies are opening up to using innovative materials in different ways. They bring a new range of characteristics and applications that will only go on to enhance the product experience. Whether it is textiles with enhanced properties, or materials that aid sustainability or the re-thinking of building materials like concrete, which the Romans had invented some 2,000 years ago, these are all good developments. Humans continue to evolve and with that evolution comes advances in the materials we use. Sometimes though, it is no bad thing to look at some of what Mother Nature has created and to take note, even if it may be hard for those arachnophobes.

At ET2C, we are dedicated to making a difference and understanding the development and commerciality of new materials is key to this. We have already utilized blended fibres (bamboo and Milk) in some of our babywear ranges and recycled plastic on sneakers (part of a sustainability drive). There is a lot of new materials being developed from resins, polymers, activated carbon, the use of recycled materials through to textiles. Our focus is understanding these attributes and, importantly, the application in mass production ensuring that there is the required level of commerciality. Sustainability also forms part of this piece of work, and utilizing materials in a way that can aide this initiative can only have a positive impact.
If you have any questions on any of the above, or ideas, please do not hesitate to contact us.

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Making Green Waves: 10 Companies that Are Leading the Way in Sustainability

Industry Insights / admin / business, environment, Sustainability

Ever since the release of Rachel Carson’s 1962 book “Silent Spring,” the idea of sustainability has always at least been in the periphery of many companies. Things progressed in the 1970s, as pressure for environmental protection was turned up by NGOs such as GreenPeace (1971), Friends of the Earth (1971), and the earlier-formed WWF (1961). In the 1980s and 1990s, catastrophic events such as the Exxon-Valdez oil spill and the Chernobyl Nuclear Disaster caused the call for global responsibility to become more compelling. Recently, with many governments and multilateral organizations pushing for sustainable development, many companies have adapted to the relatively-new emphasis on environmental through a multitude of devices.

There’s good reason for jumping on the sustainability bandwagon too. The business & Sustainable Development Commission recently revealed statistics on the value of sustainable business models and how it could “open economic opportunities worth up to US$12 trillion and increase employment by up to 380 million jobs by 2030.” With many nonrenewable resources running out and governments across the world giving subsidies to eco-friendly businesses, many firms have heeded the call for environmental protection.

However, even though many companies are acting to protect the environment, there are some whose massive-scale efforts and innovative ideas serve as an inspiration to others. Here are ten companies that are making a difference for a greener and more sustainable planet.

companies in sustainability — Here’s 10 Companies that are working together for a healthier and Greener Planet

10. Walmart

What They’re Doing: The number one company on the fortune 500 list, Walmart is also doing its part for the environment. Walmart has set some pretty ambitious goals for itself when it comes to sustainability. Walmart’s website states that its sustainability goals consist of “creating zero waste, operate with 100% renewable energy and sell products that sustain our resources and the environment.” While ambitious, Walmart has already made significant strides towards these objectives, boasting statistics such as “78 percent of global waste diverted from landfill” in 2017 and investing $25 million over five years on food safety projects in China (Walmart, 2018).
Big Project:
Project Gigaton– avoid one billion metric tons (a gigaton) of greenhouse gases from the global value chain by 2030.
How it works: suppliers can take their sustainability efforts to the next level through goal-setting, and get credit from Walmart for the progress they make (Walmart, 2018).

9. Google

What They’re Doing: With a motto like “Don’t be evil,” it’s no surprise that Google, one of the centerpieces of silicon valley, has already progressed in making their company more sustainable. Since starting their sustainability efforts, Google has touted some impressive numbers surrounding sustainability. Some of their remarkable accomplishments include Google data centers using 50% less energy than the average data center, diverting 91% of waste from their global data center operations away from landfills, and empowering their suppliers to use renewable resources. (Google, 2018).
Big Project:
Global Fishing Watch – “provides a transparent view of commercial fishing activities across the globe, in hopes of protecting critical marine habitats and providing new tools for sustainable fisheries management for the long term.”
How it Works: offers near real-time tracking of fishing activity through their public map, enables scientific research, and improving fishing management (Global Fishing Watch, 2018).

8. Nestlé

What They’re Doing: With an image of a bird feeding her offspring as their logo, it’s perhaps not much of a surprise to uncover that this food and beverage company has worked hard to protect nature. Nestle boasts an impressive eco-friendly resume, with actions like systematically reducing the weight of their packaging since 1991 (with a reduction of over 500 million kg to date), and utilizing a team of over a thousand agronomists to provide training to their farmers to minimize their environmental impact. (Nestle, 2018)
Big Project:
Water Stewardship – “aims to be responsible stewards of water, ensuring it is available and managed sustainably, protecting it through high-profile collaborations, treating the water we use as effectively as possible, supporting our supply chain in the use of water, educating communities on how to use water efficiently, and improving access to water and sanitation”
How it Works: Reducing water consumption, protecting and preserving water resources through research with NGOs like the WWF, and Zero Water technology (Recycled water). (Nestle, 2018)

7. Cisco Systems

What They’re Doing: Cisco systems, a hardware producer out of San Francisco and one of the key firms in Silicon Valley, has also stepped up to the plate to work for a greener planet. The company has implemented some inspiring environmental-protection measures as well, including having sustainable energy accounted for 80% of their worldwide electricity use.
Big Project:
Rhino Conservation – Cisco and Dimension Data partnered to track poachers at a game reserve in South Africa, successfully reducing rhino poaching in southern Africa by 96%.
How it Works: Cisco develops seismic sensors, drone cameras, thermal imaging, and biometric scanning technology to be used in anti-poaching efforts.

Cisco has implemented some inspiring environmental-protection measures, including having sustainable energy accounted for 80% of their worldwide electricity use

6. Apple

What They’re Doing: Perhaps one of the more well-known brands on this list, Apple has always set itself from the pack through innovation and creativity. Apple has carried these sentiments into its efforts in sustainability, achieving a fall in total transportation emissions fell by 3 percent in the fiscal year 2017 while their corporate employee headcount grew by 9 percent. In April 2018, Apple had 23 partners committed to 100 percent renewable energy for Apple production and to lower emissions by focusing on aluminum production, which “reduced emissions associated with every gram of aluminum in iPhone by 83 percent” (Apple, 2018).
Big Project:
Closed-Loop Supply Chain – This project will see Apple products made using recycled or renewable materials only and will return an equivalent amount of material back to the market to be used by Apple or other entities.
How it Works: Encouraging customers to return their iPhones during upgrades, recycled materials from outside recycling sources, and disassembly sections in factories.

Apple has always set itself from the pack through innovation and creativity and has carried these sentiments into its efforts in sustainability

5. Honda

A slogan like “You meet the nicest people on a Honda” seems to be a bit of a stretch, but it hasn’t stopped Honda from working tirelessly for a brighter and healthier future for the planet. Honda has taken sustainability measures such as aiming to reduce the CO2 emissions intensity of motorcycles, automobiles and power products by 30% compared with 2000 levels by 2020. Honda also has bragging rights as it became the world’s first mobility company to disclose estimates of all GHG emissions from its entire value chain in August of 2012 (Honda, 2018).
Big Project:
Triple Zero – Three goals relating to the number zero: Zeroing CO2 emissions using renewable energy, Zeroing energy risks, and Zeroing resource and disposal risks.
How it Works: Management of resources and working with disposal partners to ensure safe and effective transfer of waste materials, working with renewable energy companies to integrate technology into automobiles, and encouraging customers to pursue environmentally-friendly lifestyles (Honda, 2018).

4. Interface

When a company is known more for its sustainability efforts than the actual product it sells, then it’s clear that the company is serious about environmental protection. The company dropped jaws back in the nineties when it announced that it would eliminate any negative impact its company has on the environment by 2020. So far the company has done well in keeping its word, they’ve replaced latex in their precoat with recycled PVB, recycle used fishing nets for materials, and their factories all use 95% green energy, allowing them to run more efficiently (Interface, 2018).
Big Project:
Mission Zero – Eliminates any negative environmental impact the company has by 2020. So far they have reduced their carbon footprint per square metre of produced carpet by 98%, water usage by 93%, and factories use 95% renewable energy and send zero waste to landfill across Europe.
How it Works: Radically redesigned the company their products and the way they do business.

3. Ikea

Known for their DIY and oftentimes less-expensive furniture, IKEA is now aiming to get recognition for its environmental sustainability efforts. Ikea has introduced new products to aid people in cutting their energy and water use, such as a tap nozzle that reduces water usage by 90 percent, and air-cleaning textiles. The company has also introduced new and more sustainable materials into their production process, with 100% cotton 77% wood in IKEA products coming from sustainable sources, citing that it will ultimately help lower costs while also doing the right thing.
Big Project:
IKEA Group Sustainability Strategy for 2020 – Will see 91% of waste from their stores recycled or incinerated for energy recovery, increase in the use of sustainable materials in production, and selling LED light bulbs to save energy (so far they have sold 85 million).
How it works: Marketing campaigns encouraging the buying of LED bulbs, working with sustainable suppliers for materials, tracking the production of products to identify wastes of energy and materials. (IKEA, 2017)

2. Unilever

Unilever has a lot of products under its control, including Dove, Lipton, Axe, Popsicle (yes, it’s a brand), and Marmite. With great power comes great responsibility and Unilever has famously demonstrated itself as responsible. Unilever has set three main goals for its sustainability efforts which are to help more than a billion people take action to improve their health and well-being by 2020, halve the environmental footprint of the making and use of their products as they grow their business by 2030, and enhancing the livelihoods of millions by promoting fairness in the workplace, opportunities for women and inclusive business by 2020.
Big Project:
Unilever Sustainable Living Plan – Aims to create sustainable growth through brands with purpose, cutting business costs, reducing risks and building trust with consumers
How it Works: Unilever will follow the UN Sustainable Development Goals. Since the company is so gigantic and covers so many different products, the actions it is taking to be more sustainable range from the extraction of raw materials to manufacturing chemicals, causing the comprehensive UN Sustainable Development Goals to serve as a reliable tool for the company’s entire supply chain (Unilever, 2018).

1. Patagonia

Dubbing itself as an “Activist company,” Patagonia has put environmental protection as the company’s main priority. Patagonia has already claimed recognition as one of the largest funders of environmentalist causes. The company gives 1% of its sales (not its profit, its revenue), to environmental grants and organizations, funding everything from local nature perseveres to massive NGOs like the WWF. The company has donated 89 million dollars to environmental causes since 1985 in addition to giving 954 grants in 2017 alone. The company also encourages the buying and selling of worn wear, encouraging its customers to send back in their used gear so it can be repaired and sold again. The site also offers tips and guides on how to repair your own clothing, encouraging their customers to reduce clothing waste and learn a new skill.
Big Project:
Tin Shed Venture – Patagonia’s corporate venture capital fund partners with businesses focused on building renewable energy infrastructure, practicing regenerative organic agriculture, conserving water, diverting waste, and creating sustainable materials
How it works: Funds small businesses that apply for funding. The businesses must be working for a better environment and prove how they are doing so in their application. A full list of companies can be viewed here.

Summary

The UN has set their Sustainable Development Goals (SDGs 2015) and there are a range of different elements from health to equality to environment that need addressing. Consumerism has been rampant for the past 30 years spurred on by the rise of technology (the likes of Amazon etc) and low cost products from the East. The consumer is now evolving and a Brand’s stance or position on sustainability and the broader horizon will become increasingly important as part of capturing a sale.

The above projects and the companies that founded them are part of the inspiration for us at ET2C to engage with the Sustainability discussion and to start the implementation of our own ideas within our business and across our supply chain in 2019. With operations in China, Vietnam and India, we have an opportunity to make an impact, however small, in emerging economies as well as through collaborating with our clients in their own respective markets. #dogood, #sustainability taskforce.
For queries related to Sustainability, why not email us at sustainability@et2cint.com .

Making Green Waves: 10 Companies that Are Leading the Way in Sustainability Read More »

Make it a Sustainable Christmas!

Company News / admin / Christmas, Sustainability

After attending Sustainable Brands Madrid, a lot of research, brainstorming (and coffee!), this year we finally launched “The Sustainability Taskforce”, our internal initiative to better understand and articulate what ‘sustainability’ means to us and our stakeholders but also more broadly as a catalyst for change going forward.

More than ever, this topic has been a frequent discussion point when speaking with clients about materials, suppliers and overall brand strategy due to changes in local regulations or the evolution of the consumers’ purchasing behaviour. We care about it, and we want to engage with this discussion, share knowledge and ideas and ultimately set in place a collective that makes a difference.

Make a difference. #DoGood this Christmas

Therefore, this Christmas we decided to engage with our clients and partners that are already part of this conversation. By sending them a personally selected eco-friendly gift, we are hoping to activate them to share their commitment to sustainability.
In particular, we’ll ask them to use their social media channels to tell a ‘sustainable story’ and explain their promise or commitment to sustainability, using the hashtags #DoGood and #SustainabilityTaskforce.

We have identified a range of partners in three different client markets, who have allowed us to send some very nice sustainable gifts. For the US, we have chosen The Little Market, which is a non-profit founded by women to empower women, offering handmade fair trade products created by artisans around the world.

For our UK clients, we have selected as a partner GlobalWAKEcup, a start-up with a mission to impact the use of single use plastics, proposing stylish and environmentally friendly alternative to single-use cups, bottles, bags and straws.

Lastly, for Australia and New Zealand, we partner with Ecostainable, a company that is focused on ‘Changing the world, one home at a time’ with a range of eco-friendly and sustainable products for you and your home.

sustainable

Join our Journey

This is only the start. As a business we are committing to driving forward a range of initiatives in line with some of the UN’s Sustainable Development Goals (2015). Across environmental issues to poverty to inequality, we are looking to start small and work towards some targets that resonate with us an organization to make a difference.
Do you want to be part of this journey and share with us your commitment to sustainability?
Follow this initiative on LinkedIn, Facebook and Twitter and share your story on our or your social media.
It can be anything. It could be around what you already do at home, or perhaps an initiative already in place at the workplace. We are looking for variety so by all means make them personal and fun!

Remember to use the hashtags #DoGood #SustainabilityTaskforce and add a picture if you want!
We are thinking big but are aware that this journey has to start with small steps.
Together we can make a difference.

sustainable task force

Make it a Sustainable Christmas! Read More »

Sustainability in Manufacturing: Made in China 2025 and the BRI

Industry Insights / admin / China, Made in China 2025, manufacturing, Sustainability

Sustainable manufacturing is becoming one of the key criteria for consumers when deciding what product to use. The process of sustainable manufacturing includes the creation of products through economically sound practices that limit the negative impacts on the environment. Consumer opinions, regulatory policies, and changing environmental conditions are all factors that have led to the emergence of sustainable manufacturing as a popular, profitable, and viable option for manufacturers that are seeking to capitalize on the green economy, minimize their impact on the environment, and reduce their consumption of energy and resources.

Made in China 2025 and Sustainability

Chinese manufacturers find themselves in a transitional period. The country is no longer the best location for cheap, low cost manufacturing, but it has not fully evolved into a high-tech, developed industrial economy. China is making great developments in its industry with new additions of automation and robotics in the factories, but there is still a lot of ground to cover. China is feeling pressures from both more developed industrial bases as well as more labour intensive export manufacturing regions. In order to overcome these challenges, China has launched the Made in China 2025 initiative to bring the Chinese economy to the cutting edge and make a high-tech, sustainable manufacturing base.

In the process of developing their manufacturing into a high-tech, automated industry, China is also investing in the creation of sustainable manufacturing. By relying on and using AI, and the digital economy, China is transitioning their manufacturing base to a modern, developed economy. This also reduces the use of heavy industry and relies more on mass customization consumption and makes use of Industry 4.0 practices, thus making this method of manufacturing more sustainable.

This reduces the use of heavy industry and relies more on mass customization consumption, hence increasing overall market sustainability.

Can the Digital Economy Keep the Belt and Road Initiative Sustainable?

One of the key areas where China is experiencing conflict between development and sustainability is with the “Belt and Road” initiative (BRI). Globally, the BRI has received criticism and has been questioned about its sustainability and the long-term impact that it will have on the environment. However, in 2017, President Xi Jinping addressed some of these concerns by announcing that cutting-edge technologies and business practices from the 4th Industrial Revolution are being brought to the BRI.

President Xi Jinping said, “We should pursue innovation-driven development and intensify cooperation in frontier areas such as digital economy, artificial intelligence, nanotechnology and quantum computing, and advance the development of big data, cloud computing and smart cities so as to turn them into a digital silk road of the 21st century.” The “Digital Silk Road” could bring new green technologies and sustainable manufacturing practices to emerging markets. This would help lay the ground work for the development of a more sustainable, and environmentally-conscious global market in the future.

The BRI/Digital Silk Road and the Made in China 2025 initiatives are efforts working towards creating a sustainable digital economy that can bring new opportunities to small and medium global actors, incorporate new markets into the global economy, develop high-tech manufacturing bases, and employ sustainable economic practices.

Green Manufacturing in China

Green manufacturing is a key development and a central trend in China’s transitioning manufacturing sector. Moving forward with the Made in China 2025 initiative and the BRI, along with the global environmental and economic forces, manufacturing in China will make a significant shift to become a potential leader in green manufacturing and sustainable industry.

The 4th Industrial Revolution, Made in China 2025, and sustainable manufacturing all pair well together. The digital aspects of the 4th Industrial Revolution and the automation of manufacturing in Made in China 2025 can reduce the waste, energy consumption, and environmental cost of production. Xin Guobin, vice-minister of the Ministry of Industry and Information Technology said that “Green Manufacturing Association of China will also explore a new development mode by connecting green manufacturing and the internet and establish a green manufacturing system and ecosystem for the country’s green and sustainable development.” By using the Internet of Things and modern software to connect the manufacturing process at all stages waste can be cut down and the production process will be more sustainable in the long term.

Sustainable manufacturing is not only a trend in China, but also globally. For example, there has been an emergence of innovative sustainable manufacturers outside of China in countries like Vietnam and Indonesia (industries such as apparel). In order to remain competitive within the global economy, China needs to continue this evolution to maintain its value proposition to Global retailers and Brands. The initiatives set out by the Government only go to build on the environmental inspections carried out in 2017 and also accelerate investment in sustainability on a broader scale. China therefore has one of the fastest growing sustainable manufacturing sectors and it is a great location for foreign businesses seeking to outsource their production to ethical and sustainable manufacturers.

Sustainability in Manufacturing: Made in China 2025 and the BRI Read More »

Deconstructing Sustainability

Company News / admin / manufacturing, Retail, Sustainability

Sustainability is a broad term, and one that is probably at risk of ‘burn-out’ in the retail sector the world over. Brands, retailers and suppliers are increasingly aware of the necessity to be formulating their own position around sustainability due to their respective stakeholders. Clearly, this is mainly driven by the end consumer and the need for a much deeper connection between a particular product/brand and the values that they stand for; they need to be purpose driven.

However, it is often easy to get lost in a ‘sustainability haze’ and not fully understand or be able to articulate what it means to both you and your organisation. Is there a cohesive sustainability strategy? Is it relevant and personal to all the organisation’s stakeholders? Is it simply someone putting up a sticker over a bin for recycling the staffs’ lunch containers? Is that sufficient? Are we sustainable? This confusion should not be surprising. The list of topics that fall within this category are many and understanding how one can change the world looking at this list relative to what you and your company do on a day to day basis is perhaps beguiling. From conflict minerals, material wastage, women’s rights, child labour, water filtration (700 million people do not have access to clean drinking water), climate change, lighting use, energy efficiency, single use plastics, plastic fibres to ‘one for one’ schemes, circular services (re-cycling) and brand activism, the list goes on.

The point is that any change is good. Making an impact on our earth and society, however small, as an organisation can only be a good thing. But, it needs to be personal. It needs to resonate with your company’s staff and is something that makes them engage in this change. The interesting part of this puzzle is that ultimately companies that ‘do good’ (and there is a purpose driven aspect to what they do), actually generate higher profits ultimately even with the initial capital investment/cost required at the outset.

So where to start? All we need to do is take little steps to make a change and this starts with you, as an individual. It does not need to be a ‘moon shot’ moment (an audacious statement to change the world in a big way tomorrow); such as halving the impact of climate change or giving every person on the planet access to clean water. But it needs to start with you and what’s important to you? And, hopefully, together we can all make a difference to future generations.

We are currently articulating what Sustainability means to our staff and stakeholders on a personal level to develop some emotive issues that we as an organization can seek to address.

While we continue to provide updates, please read our latest article about sustainability.

Deconstructing Sustainability Read More »

Can China Meet Millennial Consumption Demands?

Industry Insights / admin / China, Consumption, Ecommerce, Millennials, sourcing, Sustainability

Millennial Demands

Millennials. A term which has sent shudders down more than a few backs. They are known for being socially and environmentally conscious which affects what they buy and from whom. However, many companies are quick to brush off Millennials’ consumer habits, as something which will pass, thus putting off change and progression and in doing so only hastening their demise. What these companies have evidently not considered is that Millennials (in America) will soon surpass the previous largest generation becoming the largest sector of the market as a whole. According to the Pew Research Center by the year 2019, Millennials (in the United States) are expected to surpass Baby Boomers and become the largest part of the population in the America.

millennial consumption — According to a Viacom study there are 2.5 billion millennials (19-36 yr olds) worldwide.
Photo credits: State Farm

Millennials major concerns are social and environmental justice and price of their goods. In the world today it has become very important for companies to offer products that are customizable, cheap, sustainable, and quick produce. This makes it crucial for companies to adjust and meet the new market demands.

One of the best ways to meet the shifting manufacturing demands is to use a relatively cheap but developed industrial base. A possible solution to this could be an increase in the outsourcing of manufacturing to China. This is beneficial to companies in a number of ways and solves many of the challenges caused by this consumer majority.

The Social Cost of Production

First, sourcing from China is an option which will fulfill the Millennial need for conscious consumerism. Millennials desire to buy goods from companies that are sustainable and fair. One of the major social demands that millennial consumers have is that workers are treated fair and paid a livable wage.
In the past decade, Chinese factory workers have experienced increases in their hourly wages. Currently, there are rising wages and improvements to conditions in Chinese factories. For example, according to CNBC, in 2017 Sri Lanka’s average hourly wages were just 50 cents (USD) to China’s $3.60 (USD). To compound this, it also means that China’s hourly wages are more than 5 times that of India, and that its wages are more on par with countries like Portugal and South Africa . Also, some factories have introduced counseling programs and extracurricular activities, both of which will improve the standard of living for their worker.

Environmental Concerns

Another area that Millennials place a lot of concern is a companies impact on the environment. Millennials wants businesses to be conscious of their carbon footprint and to work with a certain degree of corporate-social responsibility.

This creates a challenge. Certain companies like Nike, might have pro-environment policies and take efforts to protect the environment, but certain manufacturers that are being sourced might not. In 2011 Greenpeace did an investigation at one of the factories that supplies Nike. What Greenpeace found was that this factory was dumping hormone altering pollutants left over from various manufacturing products into the water. Despite the fact that Nike may not have been using this facet of the company (Nike claims it was not) this displeased Greenpeace and they called for Nike and many other fashion industry leaders to clean up their acts (literally). Due to even the threat of a boycott like in the 90s, Nike fairly quickly proposed a plan to be more environmentally friendly by the year 2020. That perfectly demonstrates the power that consumers now have over companies; and this strong willed attitude concerning ethical and environmental actions of the company is only likely to increase.

More than other generations, Millennials are sensitive to sustainability and want companies to be active in the environment protection

Therefore, it is more important than ever to comply with consumer demands lest one fall victim to the Millennial industry killing machine for a perfectly preventable reason. Not only that, but the government of China itself has been putting restrictions on pollution. According to The Diplomat, in 2017 China penalized over 30,000 companies and more than 5,700 officials, and plans to continue these biennial inspections as part of their dedication to their new stricter laws and regulations concerning the environment and its protection. Chinese President Xi Jinping can be quoted saying, “The damage that humanity does to nature will ultimately harm humanity itself – this is an unavoidable rule”. This really seems to illustrate China’s new dedication to environmental reform, something Millennials are, and will continue to be, pleased with.

Cost and Efficiency of Chinese Manufacturing

This leads to the second reason why China can serve as the factory for Millennials, cost and efficiency. Sourcing from China will help the company provide inexpensive goods that they can distribute quickly and efficiently. Speed and accuracy are crucial, as reports have shown that Millennials despise when an order comes late and/or is incorrect with about 40% of them having this issue. According to Supply Chain Dive, they dislike it so strongly that it is likely that they will abandon their shopping cart on a website and go elsewhere. When it comes to speed specifically, 69% of the total population surveyed for one particular study would choose to go elsewhere if their order was late. If one then takes into account that it is more important to Millennials that their order be at their door quickly than previous generations (it was a main concern for this segment of the population when it came to reasons for being displeased by a delivery), then it is assured that this is not something that one can afford to ignore going forward. Therefore, it is extremely important that when procuring and shipping one makes sure it happens as quickly as possible with the accurate products. Based on this it would be prudent to source from China, as products will be inexpensive to import even with the tariffs that have been put in place.

According to Radial’s Consumer Study One-third of millennials frustrated by late deliveries

The challenges to delivering on demands by Millennial consumers is that certain demands are not always compatible with each other. For example, it is challenging for companies to meet strict regulations and also be able to provide the cheapest option for their products. One of the biggest challenges that Millennials and producers have to face is finding the balance between affordability and sustainability.
Millennials are and will continue to be a driving force in the economy for a long time. There is no point in burying one’s head in the sand and ignoring this fact. Therefore, now more than ever before it is imperative that companies listen to what this new generation of consumers wants. They want an ethical company – both environmentally and socially – as well as a company that can sell them an inexpensive product and efficiently get them their order. Finding the balance between these characteristics is centripetal to the future development of businesses and producers.

Can China Meet Millennial Consumption Demands? Read More »

Sustainability, but at what ‘cost’?

Industry Insights / admin / environment, Retail, Sustainability

BY: Simon Archer-Perkins – Director

sustainability

Retail has and is evolving. The interaction between the consumer and the Brand has become closer. The consumer is now exposed to an array of multi-channel advertising, ‘likes’ and other targeted media advertising. It is therefore no longer good enough just to be selling a product at the right price. With all this choice, broadly the consumer now wants an in depth understanding of the Brand’s ethos – what they stand for – and how this is integrated into the product that they receive in the post the day after pressing ‘add to cart’ on the chosen company’s website.

Increasingly, one aspect of this new ‘under the hood’ perspective focuses on ‘Sustainability’ and ‘Environmental Footprint’. This appears to have been born out of the emergence of the Millennial as a consumer force the world over. This is an age group between 16-36 and it is estimated that there are 2.5 billion of them globally. Due to the widespread adoption of technology, they make purchase decisions that are more engaged and complex. There is an expectation that products can be ordered at a touch of a button, shipped (of course for free within domestic markets) direct to their home and if they do not really like the product, they can return (and again without actually paying for the return shipping). At the same time, they want to make sure that the products are manufactured in a sustainable way, are environmentally friendly (using recycled ocean plastic, or organic yarn, or packaged in natural sea-grass fibres) and still meet any functional or design needs.

63% of millennials want their employer to donate to social or ethical causes that they value. Source: Brookings.edu

There is nothing wrong with wanting sustainable products. There is nothing untoward with wanting a good environmental footprint. There is nothing incorrect with wanting Asian factory workers to be treated well by the factories who employ them. That is all commendable. In most people’s Utopia, sustainability and protection of the environment would be a given. There would be no waste, period. However, are these demands realistic?

Consumer Brands are, and have been scrambling, to promote sustainability and are increasingly providing full transparency across all their global factories whether wholly owned or third party. Pictures of the factories and the individuals who made the products are more and more commonly adorning the sustainability pages of a Brand’s website. Some companies are even moving to give consumers the choice at the point of purchase which country and factory they want to buy from. It is becoming an integral part of the decision-making process whether to buy a dress or some jeans from China or Sri Lanka. This all costs money, and some will argue money well spent.

There is one issue that is prevalent in a lot of the conversations we have had over the past year with retailers and Brands. For all their good intentions (and they are good), the notion of the ‘sustainable Consumer’ is in fact oxymoronic. It is a contradiction. The issue that is consistently raised is that the consumer does not want to pay any more for this level of sustainability. It is a ‘given’. A part of the price they have always paid for the product, and if it is not, well, they will move to put their money in another Brand’s coffers.

For a Brand to properly implement a sustainability strategy it must be an innate part of their core strategy. They need to live and breathe it and this needs to infiltrate down through their manufacturing partners to the very product make-up. There are therefore concessions to make that will and have to cost money. The recycled pulp shoebox will cost more than the traditional version, and it will not visually look as nice, and you will not be able to use the same print but it is more sustainable, as an example.

Adidas recently revealed it has sold more than one million pairs of sneakers made from ocean plastic with its partnership with Parley. Photo Credits: designmilk

In order for the Brands to properly implement sustainability as a core strategy, the consumer must be willing to pay a little bit more. This is particularly true of emerging brands who do not have the margins or cash reserves of their established multinational competition. Key to this point is that the monies have to likewise filter down to the manufacturers and their sub-suppliers and in certain circumstances the salaries paid to the workers themselves. There is no point in requesting gold when you only are willing to pay for brass.

Sustainability starts with a decision by the consumer. They need to be prepared to pay more to ensure that it becomes an innate part of any Brand’s strategy and the investment is strategically harnessed in a way that empowers the supply chain to really innovate and deliver true sustainability.

sustainability

Sustainability, but at what ‘cost’? Read More »

New Sourcing Trends

Where is Sourcing Going?

Bangladesh

Myanmar

Cambodia

Ethiopia

Summary

What Happened to the Word “Sustainable?”

Sustainability in Politics

Sustainability Becoming Greenwashing in Marketing

A cliché, but a Good Cliché

Guidelines Exist for Responsible Marketing

Sustainability Helps Companies Grow

Walking the Walk in Sustainability

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Integrating Innovative Materials into Supply Chains

Summary

10. Walmart

9. Google

8. Nestlé

7. Cisco Systems

6. Apple

5. Honda

4. Interface

3. Ikea

2. Unilever

1. Patagonia

Summary

Make a difference. #DoGood this Christmas

Join our Journey

Made in China 2025 and Sustainability

Can the Digital Economy Keep the Belt and Road Initiative Sustainable?

Green Manufacturing in China

Millennial Demands

The Social Cost of Production

Environmental Concerns

Cost and Efficiency of Chinese Manufacturing

BY: Simon Archer-Perkins – Director

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