For Manufacturers & Suppliers
Keep up-to-date with the latest updates in sustainable production and purchasing.
Learn about industry expectations, trade best practices and regulations.
Sustainable packaging|Features|7 principles to follow
What is sustainable packaging?
Eco-friendly packaging is one that minimally affects the environment during its life cycle. Impact can be assessed in several dimensions:
- How many resources were spent and how dirty the production is?
- Are recyclable and renewable raw materials used?
- Can the packaging be reused?
- Safety for humans. For example, when heated, the packaging should not be distinguished by harmful substances.
- Functionality. Packaging should preserve the appearance and quality of the product, as well as improve its storage conditions.
- Is it possible to quickly manufacture and how much will it cost?
Sustainable procurement |7 drivers and benefits
Sustainable purchasing is about ensuring that the products and services we buy are as green as possible, with the lowest environmental impact and the most positive social outcomes.
Environmentally friendly products should:
- Use natural materials and resources.
- Сontain less hazardous or toxic materials.
- Build a foundation for a longer lifespan.
- Reduce the amount of energy and water used in the manufacturing process.
- Produce smaller waste, for example, using recycled materials, reducing the packaging or allowing your supplier to recycle your waste.
Drivers for sustainable procurement
- Human rights
Respect for human rights when interacting with stakeholders of the supplier as a whole (team members, customers, suppliers, shareholders, and communities). Suppliers must uphold the principles of the Universal Declaration of Human Rights. They should avoid association with equipment that is used to violate these rights, such as instruments of torture, or with the production or transfer of weapons to repressive regimes.
- International, national, state, and local laws are all applicable
Suppliers must follow all local, national, and international regulations, including all environmental, health and safety, and labor rules, regardless of legislative practice.
- Forced and child labor
Forced, bonded, or compulsory labor must not be used by suppliers.. Also, persons under the legal minimum age for employment should not be hired. Children should not be involved in any hazardous work or work incompatible with their personal development.
- Equality and diversity
Combating all forms of discrimination in the workplace and promoting diversity. Suppliers must not discriminate in the hiring, compensation, training, promotion or retirement of their employees.
- Well-being and development of employees
Flexible working conditions are needed to ensure work-life balance, facilitate learning and personal development for team members. Respect and dignity should be shown to employees. Physical, verbal, or other forms of harassment are all forbidden, as is any threat or other type of intimidation.
- Health and safety
International norms and laws require that all employees work in a healthy and safe environment. This includes providing adequate facilities, training, and access to safety information.
- Impact on the environment
Implementation of processes for understanding environmental impacts and risks. Reducing environmental impact and promoting environmentally friendly policies. Areas covered include:
- Waste and disposal.
- Efficiencies in the use of finite resources such as energy, water, and raw materials have improved.
- Protecting biodiversity.
- Reducing emissions of CO2, methane, and other gases.
What does the research say?
- Companies that adhere to social or environmental standards performed better in 88% of studies, and 80% showed a positive impact on stock performance.
- Ignoring ESG exposes investments to huge risks and lowers profits. This behavior has devalued $534 billion over the past five years.
- Creating value through sustainable procurement practices can increase revenues by 5-20%, reduce supply chain costs by 9-16% and increase brand value by 15-30%.
Benefits of Sustainable Purchasing
- Reduced energy, waste, and travel costs.
- Minimizes risk in the company's business practices.
- Compliance with environmental and social legislation.
- Improving consumer perception.
- Creates markets for new products and services.
- Reduced energy, waste, and travel costs.
- Reduced risk of non-compliance with environmental legislation.
- Increased employee and customer loyalty as customers.
Green Marketing: Examples, Benefits, and 4 Strategies to Use
What is green marketing?
Often known as green marketing or organic marketing, sustainable marketing is a strategy that involves promoting, selling, and distributing goods and services that do not have a significant impact on the environment. The idea behind this approach is to encourage consumers to make more efficient use of goods made with recycled materials or goods that are made with fewer natural resources. Typically, the sustainability marketing process also includes an educational component that helps consumers understand the benefits of buying organic products versus buying similar products that have a long-term negative impact on the planet's ecology.
This form of green marketing can target niche markets or be used as a vehicle to reach consumers in general. In this regard, there are many strategies aimed at social responsibility and targeting people who prefer organic products.
Examples of such strategies:
- Creation of environmentally friendly products
- Packaging your products in a sustainable way
- Leveraging sustainable business practices
- Promoting the green benefits of existing products
- Using recycled materials in production
- Harnessing green energy
- Reducing production waste
- Using environmentally friendly methods
- Buying or selling locally, reducing transportation
- Reducing packaging
- Making reusable or recyclable products
Who Uses Green Marketing?
Supply Chain Sustainability: Features and 8 Approaches to Improvement
In the global value chain, maintaining a balance between economy and high quality, environmental and social standards, reliability, and security of supply is a challenge. An increasingly close relationship between suppliers and customers is the key to creating sustainable value through reliable, high-value-added chains. At the same time, supply chains have the potential to be at serious risk.
The management of environmental, social, and economic consequences, as well as the promotion of good management practices, are all part of a sustainable supply chain.
The main goal of supply chain sustainability is for all stakeholders to create, protect, and grow long-term environmental, social, and economic value.
Companies are motivated to work toward a sustainable supply chain for a variety of reasons. The main one is retaining old and attracting new customers. Other important reasons include risk management, the ability to manage reputation and compliance with laws and regulations while adhering to and supporting international principles of sustainable business conduct. In managing and striving to improve environmental, social, and economic performance, companies act in their own interests, the interests of their stakeholders and the interests of society as a whole.
Parameters Affected by Improving Supply Chain Resilience
- Consumer commitment
Customers want to know that the brands they trust are committed to sustainable manufacturing practices. This allows you to maintain customer loyalty and minimize possible risks of reputational losses, since the supply chain also affects your brand reputation.
- Competitiveness and profitability
Sustainable development is about preserving competitiveness, not only ethics. Companies that do not prioritize sustainability run the risk of losing out to competitors who do so.
- Cost savings
Ensuring the supply chain's resilience can help avoid many financial risks, including potential fines, lawsuits, and loss of customers.
A supply chain disruption can be devastating. Using vendors that do not follow best practices can lead
How sustainability is changing the furniture industry
Sustainability was once viewed as a quite original standard and rather rare that only the biggest and most aware companies would aim for. However, attitudes towards sustainability have changed, and it became almost imperative for any successful business to engage in environmental initiatives. Among many industries that have taken measures to protect the environment, furniture stands out as one of the most important product lines.
Eco-friendly furniture is essential in many aspects, be it for home, office, or entertainment. From wood used to make frames to fabrics and chemicals used to decorate pieces of furniture, the trend shows that many processes are done sustainably, and end-consumers do an additional check to ensure
What sustainability means for the Building materials industry?
What is a green building?
Sustainable building means using more ecological and recyclable materials in construction, it also includes reducing energy consumption and waste. The main goal of sustainable construction is to reduce the industry's impact on the environment.
Sustainable construction does not end when the building is completed, as the building itself should have a lower environmental impact throughout its life. This means that the building design must include elements that have a permanent positive impact on the building's environmental impact. These can include proper insulation to prevent heat loss, solar panels to reduce energy consumption, and long-lasting
Sustainability in the Textiles industry
The ecological footprint that clothes leave behind begins long before they are scrapped. For the production of raw materials from which the apparel will be made, many resources are needed: water, electricity, human labor, fuel, regardless of whether the fabric is natural or synthetic. For raw materials to grow, fertilizers and pesticides are almost always needed. Schematically, the life cycle of textiles can be represented as follows.
As a consequence of the increasing environmental impact of clothing, consumption (especially fast fashion), environmental awareness of consumers is growing, increasing the niche for slow fashion products that promote the idea of ethical clothing consumption.
Environmental Impact of the Textile Industry
Sooner or later, any clothing ends up in a landfill: according to the US Environmental Protection Agency, about 11.2 million tons of unnecessary clothing is thrown away each year in the United States alone. It is easier to understand the scale of these numbers if you try to imagine 509 thousand and 100 more trucks, fully loaded with clothes that no one will ever wear again.
According to the UNEP study, of the total amount of used textiles:
- 87% is thrown into landfills or incinerated.
- less than one percent of old clothes are recycled and used to make new ones.
- 12% are used differently.
According to the United Nations Economic Commission for Europe, the global volume of greenhouse gases from textile production is 1.2 billion tons per year, which is more than the emissions of all international flights and shipping combined.
Let’s review what can and needs to be done to meet a more sustainable production in the textiles industry as well as the utilization of the used apparel.
- Material selection
The coronavirus pandemic, which swept the whole world in early 2020, created a real roller coaster for the global economy. What began as a local Chinese threat, by the end of March turned into a record loss since 2008 for the global market. Not only the most vulnerable segments of the population and the middle class, who lost their jobs and income, but also richer people whose fortunes in a short time decreased by more than a trillion dollars. Despite the development of vaccines, many are still wondering what a recovery might look like.
The Covid-19 crisis continues to change the realities of our daily lives and the world around us. The path to the normal path becomes more and more difficult to imagine. Companies, governments, and individuals are grappling with transformational change that has set new and unexpected trends in motion in virtually every industry. As the likelihood of reverting to a pre-pandemic state decreases, three key areas affected by the pandemic are the corporate environment, consumer behavior, and company operations. The changes caused by the pandemic have already changed our lives and our shopping habits. Trends such as work and homeschooling, as well as online shopping, are prompting a huge number of people to adapt to the changing world and use modern technology in their daily lives.
Demand for sustainable development in post-pandemic world
Companies and economies are recovering but not going back to normal. The trend says that the recovery is going back to a NEW normal.
According to economists, governments and businesses are motivated to take the trend into account while estimating the recovery plan. It is becoming mandatory to reduce emissions and make a transition to more sustainable energy sources and sustainable production methods. The past shows that when breaking into nature can have disastrous consequences like pandemics, the stronger the global warming is, the more pandemics and other
Swedish group H&M, which owns the second-largest clothing chain in the world, has released an official statement on the situation in China. In it, the company announced that it is working with Chinese colleagues and is doing everything possible to cope with current problems but does not provide any specifics.
Recall that recently, H&M was at the center of a scandal over its decision to abandon cotton purchases in Xinjiang Uygur Autonomous Region due to allegations of massive, forced labor camps in the region. A report by the Australian Strategic Policy Institute (ASPI) thinks tank, delivered in March, distinguished H&M as one of the recipients of a constrained work program through colored yarn maker Huafu, which possesses an industrial facility in eastern China's Anhui territory.
Who are the Uyghurs?
The Uyghur minority lives in the Xinjiang Uyghur Autonomous Region of China. They make up 45% of the area's population and 40% are ethnic Han people. In total, about 10 million Uyghurs live in China.
Since China regained control of the region in 1949, many ethnic Han Chinese have migrated to Xinjiang, which is why the Uyghurs are now worried about the possible crowding out of their own culture.
What is known about the situation of the Uyghurs in China?
Activists who fight for the rights of the Uyghurs say Beijing discriminates against them. One example is their so-called re-education. According to the testimony of journalists and human rights activists, the Uyghurs are being isolated in "educational camps." Some are sent to their hometowns "under arrest."
According to Reuters, citing UN activists and experts, 1 million Muslim Uighurs are being held in Chinese camps. China denies this and claims that these camps are merely providing vocational training for people.
The researchers say that activists are in constant fear of possible harassment. In addition to such violations of rights, everyday discrimination is also used against Uighurs, making the minority feel like second-class people. For example, Uighurs may be refused a hotel room.
H&M is determined to overcome the crisis
The company said it does not work with any garment manufacturer in the region and will no longer buy cotton from Xinjiang, which is China's largest manufacturing region. However, the Swedish group admitted that it had “indirect commercial relations with a factory” located in Shangyu, Zhejiang Province (southern China) and owned by Huafu Fashion.
Recently, against the backdrop of growing tensions between China and the West, angry calls to boycott H&M began to appear on Chinese social media. A few Chinese influencers and celebrities quickly quit teaming up with the organization, while the brand's items vanished from major online stores in China.
As a result, a boycott of the retailer was declared in China - it was blocked access to all major Chinese platforms, including Tmall, Taobao, JD, and Pinduoduo, and some landlords forced the company to close physical stores as well - according to H&M, about 20 outlets are now closed in the country.
The wave of consumer boycotts in China coincided with an agreed set of sanctions imposed by the UK, Canada, the European Union, and the United States last week for what they say is a violation of hum
Generation Y (or Millennials born between 1981 and 1996) and Generation Z (born after 1996) represent an ever-growing consumer power in the global economy. In the US, the purchasing power of Gen Z has already exceeded $ 500 billion. Millennials make up about a quarter of the world's population, and statistics show that the purchasing power of Generations Y and Z is high and growing.
For years, millennials have been a central stage for brands and marketers. But for some time now, the new group has been gearing up to take its share of Gen Z's consumer attention. These are the consumers that companies want to conquer. This audience is expected to overtake millennials, who make up 32% of the world's population. And as Gen Z enters the workforce and their purchasing power increases, they will undoubtedly be a key target for brands to achieve customer appeal.
Climate changes are caused by changes in the earth's atmosphere, processes occurring in other parts of the Earth, such as oceans, glaciers, as well as, already in our time, the effects associated with human activities. Poor ecology is pushing Gen Z and millennials to new consumption patterns that consider the ethics and sustainability of what we consume. While sustainability considerations are not yet a major buying driver, it is expected that sustainable brands will continue to gain market share as the purchasing power of these generations grows.
It is clear that both consumers and brands are trying to reduce their impact on the planet, and as we approach the critical mass of consumption, we can expect sustainability issues to grow in importance.
Consumers are concerned about the quality of the ingredients used in the production of goods, the conditions in which the goods are produced, as well as the processing and recycling of packaging. This trend is confirmed by many large companies. For example, the British company Lush was one of the first to understand the importance of minimizing packaging waste and for many years has been producing cans for products only from recycled materials. L'Oreal plans to phase out single-use plastic by 2025. The brand has already launched the Source Essentielle hair care line, where shampoo bottles can be refilled - just go to the L'Oreal Professionnel salon. And there are many such examples in various areas of business.
Successful green products do not have to look or feel any different than green versions but bringing these products to market in more sustainable ways will undoubtedly become a more important direction for consumers.
First Insight's 2019 report, The State of Consumer Spending: Gen Z Shoppers Demand Sustainable Retail, finds that 62 percent of Gen Z who will start shipping this year prefer to buy from sustainable brands.
Also, the majority of Gen Z (54%) say they are willing to spend an extra 10% or more on green products, with 50% of millennials saying the same. This compares with 34% of Gen X and 23% of baby boomers. It can be concluded that with each generation, the desire for sustainability is increasing.
Deloitte's Global Millennium Generation Survey 2020 shows young consumers are concerned about climate change and unequal wealth distribution. In a survey, 65% of millennials and 57% of Gen Z said they had increased their recycling efforts, and half of 50% and 41% of Gen Z had reduced or stopped their fast fashion consumption.
It is also important that consumers are willing to pay more for products that are manufactured with sustainability in mind. According to an Accenture survey, more than half of consumers said they would pay more for green products that are intended for reuse or recycling.
According to a Nielsen study, consumers across all regions, income levels, and categories are willing to pay more for green products. The level of potential willingness of consumers to pay more for the products of companies that are responsible for society and the environment is more than 80%. At the same time, in developing countries, Millennials and Generation Z are willing to pay the highest prices.