Sustainability in practice: a case of manufacturing companies

The conscious economy is one of the main megatrends of the last few years around the world. This is an economy based on the ethical operation of enterprises, which, of course, do not forget about profit. In other words, in this case, the business includes environmental and social aspects in its work. One of the tasks of business today is to follow this path yourself and captivate your consumer with relevant ideas. The article will be useful to manufacturers and retailers who do not yet know where to start.

Step 1. Focus on the use of innovative “recyclable” materials

Take, for example, a product such as a sofa. Already today it can be made in such a way that 93% of it will consist of parts that can be recycled for later use.

Frames that were traditionally made of wood are now made of metal by progressive manufacturers. This allows, on the one hand, to exclude labor-intensive and dusty carpentry from the production chain, on the other hand, to make recycling more environmentally friendly, because, unlike wood, metal frames are simply melted down.

Textile upholstery and polyester fillers are processed into felt and other insulating materials. Here it is also important to choose more environmentally friendly materials at the stage of purchase. There is also PPU filler in the sofa — in the process of processing, it turns into technical “foams”, which are later used for the production of sports mats, special mats for cows and calves, and so on.

Many examples can be cited from other industries. So, for example, shoe market leaders like Ecco still use natural leather, but bags are sewn from one piece, and the remains are used in the production of belts and shoe parts. They also use DriTan technology, which eliminates water consumption when tanning leather.

And the sole is made not of rubber, but polyurethane, and without glue (the finished upper part of the sneaker is immersed in the shape with the future sole, so the parts are connected under the influence of temperature, and no glue or threads, but the strength of the shoe does not suffer).

Moreover, innovation does not have to be done alone. Joint projects tend to be more effective.

One recent example is the investment of Adidas, H&M, and the largest European online platform Zalando in the project of the Finnish factory for the creation of textile fibers from the waste of Infinited Fiber Company.

The factory is being built in response to a significant increase in demand from global fashion and textile brands for recycled textile fibers. Zalando, Adidas, and H&M will supply raw materials for the future factory. The enterprise is expected to start operating in 2024 and will have an annual production capacity of 30,000 tons.

Step 2. Pay attention to the transparency of the work of your partners (suppliers of materials, logisticians, sellers, and so on)

According to a study by IBM, during which people aged 18–73 from 28 countries were interviewed, buyers began to pay more attention to brand values. They are even willing to reconsider their habits and pay more if the brand performs well and it will benefit the environment. In addition, 73% said that transparency and traceability of production are important to them.

Audits are the starting point. Traditionally, companies have relied on audits to monitor their direct suppliers and ensure that responsible practices are followed in their supply chains.

To increase the effectiveness of the audit, companies must find ways to expand the scope to achieve greater impact.

For example, to increase oversight of its suppliers, Patagonia reduced the number of its suppliers by 58% in the late 2000s. As a result, the company was able to audit 100% of its Tier 1 suppliers annually, as well as a subset of Tier 2 suppliers, which account for 80% of all material costs.

These changes have resulted in a stronger and broader collaboration with suppliers, which has helped the company improve supply chain transparency and strengthen its reputation with consumers. Another approach is to conduct joint audits, where several companies pool their resources to audit common suppliers.

Step 3. Establish recycling processes

There are two ways here.

• The first is to find recycling partners and to clearly monitor the honesty of their actions.

• The second, more costly one is to purchase equipment, do it yourself, and if you look a little further in the future, become a recycling partner for other market players.

Fortunately, this niche is freely available at the moment, and recycling laws are becoming more stringent every year.

One of the splendid examples of successful recycling work around the world is Yellow Octopus, which works with clothing brands in 21 countries around the world. A lot of companies offer commercial partnerships in the field of plastic collection and recycling. In a word, if you want, then everything is possible.

Step 4. Enable the customer to be green

For example, you can start with recycling, and involve the buyer in this, so that he, too, can become involved and get satisfaction. According to the previously mentioned IBM study, 57% of people around the world are ready to change their consumption habits to reduce the negative impact on the environment.

One of the most obvious directions is a trade-in, where it is possible to hand overused items, often large-sized or those that are “sorry to throw away” and receive “buns” from the seller or manufacturer in the form of subsequent discounts.

Conclusion

Foreign manufacturers and retailers have long paid great attention to sustainable development practices. For them, working in line with the UN’s Sustainable Development Goals (SDGs) and rising customer expectations is the hygiene norm.

So here is the checklist for the first steps:

1. If you are a manufacturer, look for materials that have a lower environmental impact, or those that can be recycled and reused in another production. Conduct an audit of companies involved in the entire supply chain
2. If you are a retailer, then pay attention to your suppliers and the environmental friendliness of their products and materials. Here, too, it is necessary to regularly audit them for their compliance with accepted standards of sustainable development
3. Establish processes related to the disposal of used products that you make or sell
4. Educate your consumer about sustainable development and motivate him to environmentally friendly behavior

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