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Sourcing.eco Blog

Keep up-to-date with the latest updates in sustainable production and purchasing.
Learn about industry expectations, trade best practices and regulations.

  1. 3Rs - Reduce, Reuse & Recycle

     

    3Rs - Reduce, Reuse & Recycle

     

    The "3Rs" concept refers to the principles of waste reduction, reuse, recycling of resources and products. Reducing is selecting to use something with care to limit the amount of waste produced. The continued use of objects or parts of items that still have useable qualities is referred to as reusing. Recycling is the use of waste as a resource. Waste reduction may be performed more efficiently by concentrating on the first of the three Rs, "reduce," followed by "reuse," and lastly "recycle".

     

    Let's take a closer look at what reduce, reuse, recycle are.

     

    1R - REDUCE

     

    The best way to manage waste is not to produce it. This can be done by shopping carefully and following a few guidelines:

    • Buy goods in bulk. Larger economy

    3Rs - Reduce, Reuse & Recycle

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  2. Supply Chain Sustainability: Features and 8 Approaches to Improvement

    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[1].

    The main goal of supply chain sustainability is for all stakeholders to create, protect, and grow long-term environmental, social, and economic value.

     

    Motivating companies

     

    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.

    • Continuity

    A supply chain disruption can be devastating. Using vendors that do not follow best practices can lead

    Supply Chain Sustainability: Features and 8 Approaches to Improvement

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  3. H&M Faces Boycott in China Over Stance on Treatment of Uyghurs

    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

    H&M Faces Boycott in China Over Stance on Treatment of Uyghurs

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  4. Consumers Are Driving Brands Toward Sustainability

    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.

     

    Ecology trend

     

    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.

     

    Buyers' opinion

     

    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.

    Consumers Are Driving Brands Toward Sustainability

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