Environmental Sustainability

For some retailers, environmental sustainability has been built into their company's core values from the beginning; for others, it's been embraced more recently. Regardless of its origin, environmental sustainability is becoming a core consideration for the retail industry, one that affects strategy, operations, workforce engagement, and connection to consumers and communities.

The next big environmentally minded startup may be funded by an unlikely source: Patagonia. The clothing giant recently decided to launch an internal venture fund, called $20 Million & Change, that will invest in startups working to make the world a better place via the clothing, food, water, energy and waste industries. Patagonia has never been a traditional clothing company. It's always cared more about environmental impact than most of its counterparts. Last year, the company went so far as to launch a campaign asking customers to buy less stuff. 

Cause-based marketing — i.e., attaching your business to a philanthropic endeavor or social cause — has become increasingly popular among retail brands today. Consumers want to know that the brands they're purchasing from are committed to more than just growing their bottom lines. They expect retailers to be involved in the communities where they operate, whether that means donating to the local children's hospital or helping to build a park. Three retailers that are at the forefront of cause-based marketing when it comes to environmental sustainability are Kohl's, Ikea and Staples.

Wal-Mart is eyeing greater energy efficiency and less reliance on fossil fuels as key drivers of its low-cost, low-price business model. The company on Monday announced several new targets that are designed to put it further along the path to becoming supplied 100 percent by renewable energy and save an estimated $1 billion annually in energy costs.

H&M has launched a global garment recycling initiative, rewarding shoppers who donate used garments. Through the initiative, H&M shoppers who donate clothing will receive a 15 percent off voucher on their next H&M purchase for each bag of clothing donated. Any piece of clothing, from any brand and in any condition, will be accepted at all H&M stores worldwide. Global Green USA, the American affiliate of Green Cross International, will be the sole U.S. beneficiary of the H&M garment recycling program. Donated textiles will be recycled and proceeds given to Global Green.

Apparel retailer The North Face has launched "Clothes The Loop," a program that encourages shoppers to recycle used apparel. Shoppers can bring used gear - any brand, any condition - to any of the 10 participating retail locations. For each drop off (one per day), they receive $10 off their next purchase. The items are then sent to a recycling center where they're sorted based on over 400 categories. They're then reused to extend their life or recycled into raw materials for use in products like insulation, carpet padding, stuffing for toys and fibers for new clothing. 

Benetton Group is the latest global apparel company to join Greenpeace’s Detox Program. The Italy-based retailer, which operates 6,500 stores in 120 countries, is another coup for Greenpeace. With its commitment to eliminate the release of toxic chemicals...

At the closing session of the National Retail Federation's Big Show in New York City yesterday, executives from Home Depot and ANN Inc., parent company of Ann Taylor and LOFT, discussed the role social responsibility plays in their companies.

Amazon.com, Macy's, Leon Max, and Sears, Roebuck and Co. and its Kmart subsidiaries have agreed to pay $1.26 million in penalties to settle lawsuits filed by the Federal Trade Commission (FTC) that they mislead consumers by labeling textiles as made of bamboo, when they were actually Rayon. The FTC charged the retailers violated the Textile Products Identification Act and the FTC's Textile Rules. While so-called bamboo textiles often are promoted as environmentally friendly, the process for manufacturing rayon — even when it's made from bamboo — is far from a "green" one, the FTC said in a statement.

H&M is the first fashion company to launch a clothing collecting initiative worldwide, which begins in February. At that time, customers will be able to hand in used garments in H&M stores in all 48 markets. "Our sustainability efforts are rooted in a dedication to social and environmental responsibility. We want to do good for the environment, which is why we are now offering our customers a convenient solution to be able to leave their worn out or defective garments with H&M," said Karl-Johan Persson, CEO of H&M.