Sustainability - are corporations doing enough?

Written by Julia Siiatski

In a business environment, achieving a competitive advantage is highly sought after. However, evident through the fast-fashion industry, seeking a competitive advantage could simultaneously be detrimental to the environment. Companies expend a large amount of natural resources to produce one clothing garment; the production of a single cotton t-shirt and pair of jeans can use up to  20,000 litres of water. To illustrate the magnitude of the water used, it would take one person 13 years to finish the amount of water it takes to produce the aforementioned clothing items. The aforementioned facts are courtesy of Second Hand September, a campaign run to encourage people to shop second hand or stop buying clothes for 30 days. 

However, many companies continue to set targets that are based on profitability and their competitors’ actions instead of science. Mike Bellamente, executive director of Climate Counts, synthesized this information with a clever analogy. He states that the actions of companies are similar to if he told his wife that he decreased the amount of cheeseburgers he ate by 20% but also failed to mention that his doctor suggested abstaining from eating cheeseburgers altogether to minimize the chance of developing coronary heart disease twenty years down the line. 

That leads us to ask: what are the drivers in the apparel and footwear industry doing to incorporate sustainability in their business plan, and is it enough?

To start, an analysis of the company Nike could be done, as they held a significant market share at 27.4% in athletic footwear in 2019. The sustainability efforts outlined on Nike’s website include moving towards zero waste through using a closed-loop model in their production. This closed-loop model features the fabric Nike Grind; this fabric is then broadly used, evident through being incorporated in 71%  percent of Nike’s footwear and apparel. They have also set goals for 2025, which includes reducing their greenhouse gas emissions by 70% through employing fully renewable fleet electrification and electricity. Although I agree with Nike’s actions and steps taken to imbed sustainability into its production chain, moving forward, they should make a plan focused on combating waste production. Although the amount of waste produced at Nike headquarters globally in 2020 has decreased by 7%, they still produced 4,846 metric tons of waste. 

Evidently, Nike is a large company which has been incorporating sustainability; however, the company was not founded with this idea in mind. Thus, let us shift gears to look at a company that was - Reformation. Reformation’s founder Yael Aflalo stated that the brand originally encompassed buying vintage dresses, then redesigning them and selling them out of a Los Angeles store front. As the company grew, she started to source sustainable fabrics, where suppliers would only use safe dyes for their silk and cruelty-free cashmere. The company has been climate neutral since 2015, and works with a non-profit organization called Climate Neutral. The Climate Neutral organization has a set of rigorous criteria to deem a company carbon emission-free. I noticed that Reformation’s fabrics are not fully sustainable, and the company still has to make up for their energy consumption through other channels, such as, through introducing offsets. However, the magnitude of having net-zero carbon emissions is also significant. To put this accomplishment in perspective let us observe the amount of carbon it takes to produce sneakers, an average jacket and electric car, which would be 20kg, 12kg and 12,000kg respectively.  

So, now that we have observed different businesses’ approaches to sustainability, what changes could be made by small businesses and consumers to minimize waste and confront the pressing issue of climate change? 

Steps Businesses Could take to be Sustainable

In Bill Gates’ book, “How to Avoid a Climate Disaster”, he outlines the idea of green premiums, which is the difference in cost of doing an activity by  using fossil-fuels versus doing the same thing emission-free.

In order for green initiatives to become more widely-adapted, clean tech has to be cheaper. Businesses could play a large part in decreasing green premium through using products such as wind, solar and electric cars. Moreover, if the workers within a company fly often, the company could take action to make that means of travel more sustainable through purchasing sustainable fuel to cover their flight miles. 

Companies should also look to expand research and development, and an example of a company that did so would be Impossible Foods, which sells plant-based meat. The company planned to double R&D in order to make their products cheaper. Currently the product is available in over 15,000 stores, which is a significant leap from last March where it was only offered in 150. 

In all of the instances above, attention to sustainable action will result in more innovation in the field allowing green technologies to be cheaper, and thus, more accessible. 

Steps Consumers Could take to be Sustainable

Be realistic and keep tabs on the amount of food that is bought and consumed; households waste significantly more product than estimated. For example, Switzerland, Canada and the UK each perceived their amount of food wasted to be 5%, when in reality 18%, 21%, and 15% were wasted in each country respectively. 

Igniting change as a consumer leads back to the simple economics of supply and demand. Thus, we need to collectively send a signal to the market that we want zero-carbon options and are willing to pay for them. Overall, competitive advantage could also work in our favour; if there is enough demand, usually businesses are quick to respond. With more environmentally friendly products on the market, this will drive down prices and allow for further adoption of sustainable policies.

Specifically, two of the most practical routes would be firstly, to illustrate to leaders that there is a change in demand so that they prioritize environmental issues. This could be done through becoming more active in politics: specifically, writing letters, making calls and attending town halls. In addition, you could grow demand for products that are more sustainable, like how the Reformation company mentioned earlier managed to do with their clothing items, or food products such as plant-based burgers, where eating substitute meat products significantly cuts down the emissions associated with its production. 

Overall, I hope this article provided some insight on key elements companies could focus on to promote sustainability and brought attention to the fact that  as consumers, we need to make smart choices that could benefit society through economic principles.