NOVEMBER 2024Retail Business Review8In My OpinionKari Ihle, Sr Director of EDPM + Sustainability, EVEREVEByINCORPORATING CIRCULARITY AND SUSTAINABILITY INTO BUSINESS PRACTICESSustainability is becoming increasingly important for fashion and retail brands, as the negative impacts of the industry on the environment and society have become more apparent. Fashion is one of the most polluting industries in the world, with massive amounts of waste, water usage, and greenhouse gas emissions. Added to that, consumers are becoming more aware of the need for sustainability and are demanding that brands take responsibility for their environmental and social impact. Sustainable fashion brands prioritize using eco-friendly and ethically sourced materials, reducing waste, and ensuring fair labor practices. By investing in more sustainable strategies, fashion brands not only reduce their negative impact on the planet and people but also build trust with consumers who prioritize environmentally conscious and ethical practices. Ultimately, incorporating circularity and sustainability into business practices is crucial for fashion brands to stay relevant and competitive in an increasingly environmentally conscious world.Conversely, sustainability and eco-friendly labels and declarations by brands come with more and more risk, as consumers become more informed, and regulations provide guides for accountability and structure for lawsuits. It is becoming more crucial that brands fully understand the complete footprint and lifecycle of all aspects of their products and carefully share information to consumers. In some cases, as brands launch new sustainability road maps and initiatives, a less is more approach to communications, may be the best way to start. Ideally, creating transparency regarding production processes and true social and environmental impact of all areas of the business will be important to share with consumers to mitigate risk. This includes being straightforward with successes and failures. That true authenticity is what consumers are looking for, and what will lead to more positive outcomes for brands in the long run. Sustainability, being such a complicated issue and problems for all areas of the world, makes it increasingly important for the fashion industry to partner together to make, even with competitors. There are already brands `partnering' together in a race to zero through an effort launched by brands Amazon, Walmart, Ikea, and H&M Group. The Race to Zero Breakthroughs: Retail Campaign, works to inspire other retailers commit to significantly reducing their greenhouse gas emissions in half by 2030 and getting to net zero by 2050. But being able to make commitments like this and joining partnerships requires investment through consultants, creating a sustainability department and/or implementing a tracking and reporting software. These daunting investments can often dissuade smaller brands and prevent them from starting any sustainability efforts. Kari Ihle
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