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PEO PLE
SUSTAINABLE SUSTAINABILITY
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BRANDS & RETAIL
NE
IT
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Table of contents
3 About Ebeltoft Group
9 Best in class cases
4 Introduction 9 Pioneer, activist, breaking barriers 55 Pandemic actions
19 Born to solve a problem
5 Context 29 Changing business model 61 How to start the transformation
39 Leading the positive transformation
6 Report overview 69 Get in Touch
49 Take outs
7 Objectives and method
3
About
Ebeltoft Group is a global alliance of brand & Our vision
retail consultants with members in 20 mature and Ebeltoft Group wants to change the future of retail,
emerging retail markets. We work closely with by working closely with the clients for a better
clients from around the world, to help transform understanding of business models, disruptors, digital
Ebeltoft
their business and develop innovative and strategic transformations, technologies and consumer demand
solutions. to predict trends and changes for the future.
Since 1990, we have helped brands and retailers Our mission
remain competitive and achieve their goals by Ebeltoft Group’s mission is to support and build the
Group
blending global consumer know-how and retail strongest local brands with a unique track record of
expertise with our members’ local insights. delivering concept development, inspiration, insights
and deep knowledge about the consumer and retail.
We use the global insights provided by Ebeltoft Group
in combination with strong local market know-how to
develop market relevant expertise.
SUSTAINABLE BRANDS & RETAIL
4
Sustainable Brands & Retail
Why should companies take environmental and social It must be said that we have come across countless
issues seriously? With recent crisis, far from being a companies that talk about sustainability, but not all
passing fad, it seems that this will be the best way to of them seemed to be coherent between what they
have a sustainable business over time. preach and what they do. Efforts have been done
trying to discern responsible actions carried out in just
We are facing unprecedented times of changes, greenwashing initiatives.
experiencing major transformations in consumption
habits and the way we do business, both driven by In positive, many examples of really committed brands
digitalization, the impact of the pandemic, as well as and retailers have been found. However, not all of them
by customers who have never been as socially and are included in this report despite deserving it.
environmentally conscious as they are now.
A selection has been done to combine multiple sectors
Consumers are asking for more transparency and more and companies’ profiles to show best inspirational cases
responsibility from companies, whether they are brand in the following four categories:
manufacturers or retailers since they want to feel part of
something superior when buying a brand. A connected Source: lush.com • Pioneers, activists breaking barriers
and empowered customer, as well as an increasing • Born to solve a problem
number of investors, who demand that businesses do • Changing business models
well for society and the planet, and thus increasingly It is time to change, but how? • Leading the positive transformation
becoming a survival company priority.
It became suddenly clear to society that the world needs An additional section has been included describing
Confinement and the pandemic have generated an a paradigm shift, a deep transformation but with no outstanding business initiatives to help people
unimaginable health and economic crisis, recognizing previous similar history or experience to be inspired counteracting pandemic effects.
how fragile we are, as is the world we live in too. from. And therefore, we will need tons of resilience as
well as innovative solutions to tackle huge challenges To inspire your business teams, some tips on how to start
This is putting greater focus on the relevance and the such as social injustices combined with the climate crisis the business transformation journey for a more positive
interdependence between both and the pandemic. impact company have been summarized. First, identifying
social justice, environmental, as problems generated by each company function to
PEO PLE
well as economic spheres, far Aiming to contribute with such inspirational visions, become aware of their potential negative impact. Then,
from dissipating the importance of Ebeltoft Group – Global Brand & Retail Experts – is listing and categorizing some concrete solutions to solve
previous aspects. SUSTAINABILITY
pleased to share relevant insights from a research carried the problems, as to become more sustainable, both
PLA
out to identify Brands and Retail companies from all over socially and business wise.
NE
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PEOPLE + PLANET + PROFIT O
F
the world with strong values, as well as to understand
T
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= SUSTAINABLE BUSINESS how they are tackling social and environmental issues.
5
Context
Sustainable Business Practices Importance Offering the right products at the right price at the
INABLE PRAC
TA T right time is no longer sufficient in today’s integrated
US
Nowadays, having superior products or services consumer-driven marketplace. Now it is about
IC
S
ES
#4
attributes is no longer sufficient to ensure the success persuading customers to buy into your brand by showing
of a brand or retailer, and even less the loyalty of them who you are, what you stand for and why you exist.
its customers. An increasing number of conscious
consumers are demanding and choosing brands with Consumers want to feel a connection with a brand that
values and a higher purpose. shares their values, buy something they desire from
someone they trust.
Brands need to deeply understand their target customers
and the values that most impact them, socially, ethically, It is becoming a matter of justice and survival for
and environmentally, to create customer engagement Global consumers consider the business since both more customers as well as
based on values they see in brands as an extension of sustainable practices from Retailers investors are increasingly demanding that companies
themselves. and Brands to be important: take responsibility for the negative impact they may be
causing.
85% 82% 81%
Sustainability Social responsibility Transparency, Business ethics
Brands and Retailers taking care of Good conditions for workers and Retailers’ information on how
environment, recycling, re-use etc... donations to charities products are manufactured
Millenials Generation X Baby Boomers Millenials Generation X Baby Boomers Millenials Generation X Baby Boomers
& Seniors & Seniors & Seniors
83% 84% 87% 81% 81% 82% 80% 81% 81%
Source: Global Consumer Report, Ebeltoft Group survey of 13.500 interviews, February 2020
SUSTAINABLE BRANDS & RETAIL
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Global consumers’ shopping behaviour: Transparency and visibility
From consciousness to action
It is thus becoming increasingly important for any
Even before the Covid-19 crisis, a rising proportion of company to act responsibly, as well as it is to explain
global consumers have acted in accordance with their those initiatives, so people are aware of it to act
responsible consciousness when knowing or having accordingly.
a product option from a company that demonstrates
sustainable efforts. Society is now demanding more transparency and
accountability, yet there is a huge lack of awareness.
Most of Millennials (53%) act more consciously driven Customers are now fond of brands with strong social
when purchasing. However, we also observe a relevant values and respect for the environment. They want to feel
increase in older generations’ behaviour. a connection with brands they trust and which share their
values. And they also deserve to distinguish between
what is just greenwashing versus a true social and
environmental commitment.
44%
Source: wefood.noedhjaelp.dk
3 PP
vs 2019 Covid-19 pandemic accelerator
Consumers have chosen to buy products
The coronavirus pandemic has just accelerated the
from a company with sustainability efforts process, encouraging many citizens and companies to
rather than from a competitor not known become “socially responsible”.
for addressing them.
Some companies have demonstrated solidarity by
repurposing their facilities to produce essential products,
by using their supply chain to ship medical supplies, by
donating money, products or services to people in need,
by paying their employees’ wages despite their stores
Baby Boomers
being closed down, etc…
Millenials Generation X
& Seniors
2020 53% 42% 34% All were brave actions whose main profits went visibly to
people in need and not to shareholders. In return, many
2019 52% 40% 30% grateful customers are being engaged by those brands,
and are changing their purchasing preferences based
on criteria of social responsibility, inclusiveness, and
Source: Global Consumer Report, Ebeltoft Group survey of 13.500 interviews,
February 2020 environmental commitment. Source: camif.fr
7
Context
Research objectives Values Actions undertaken
Sustainable Business Practices Importance
Nowadays,
1. Searchhaving superior
Brands andproducts or with
Retailers services
attributes is no longervalues
responsible sufficient to ensure
to inspire ourthe success Sustainable actions to take care of the planet:
of a brand or retailer, and even less the loyalty of
customers Planet & Environment animals, nature, resources...
its customers. An increasing number of conscious
consumers are demanding and choosing brands with
values and a higher purpose.
2. Identify which values each company is
Brands working on to understand
need to deeply have a positive impact
their target customers
Initiatives to help those in need or to develop
and the values that most impact them, socially, ethically, Social Development poorer areas.
and environmentally, to create customer engagement
based
3. on values they
Evaluate see in
actions brands as an
undertaken byextension
each of
themselves.
retailer so to distinct real company
commitment from just an image
campaign Projects to improve local community, in both
Local Community the social and environmental spheres.
4. Select best-in-class examples to learn
from and share them
Programs to improve the wellbeing and living
Employees Wellbeing conditions of internal or direct workforce.
5. Synthesize learnings to inspire each
company department on how to start the
transformation
Ethical way of working, transparency and
Business Ethics fair trade.
SUSTAINABLE BRANDS & RETAIL
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Context
Methodology Best inspirational cases
Sustainable Business Practices Importance
Nowadays, having superior
International coverage:products or services Pioneer, activist, breaking barriers Changing business model
attributes is no longer
15 countries, 160 sufficient to ensure50
cases identified, theselected
success
of a brand or retailer, and even less the loyalty of
its customers. An increasing number of conscious • Patagonia • Coop-uk
consumers are demanding and choosing brands with • Beauty counter • REI
Diversity:
values and a higher purpose.
12 sectors, company profiles (small, medium, • Tony’s Chocolonely • Rema 1000
large,
Brands start-ups)
need to deeply understand their target customers • Everlane • Social foodies
and the values that most impact them, socially, ethically,
and environmentally, to create customer engagement
based on values
Research they see in brands as an extension of
method:
themselves.
Desk research by Ebeltoft Group consultants
Cases and actions assessment. Selection of Born to solve a problem Leading the positive transformation
best 16 cases Learnings synthesis
• Ecoalf • Botanic
• C’est qui le patron? • IKEA
Report authors: • Shift • Inditex
Oscar Caballud – Magda Espuga
• Biome • Dischem
Ebeltoft Spain
9
Source: Ben&Jerry’s
SUSTAINABLE BRANDS & RETAIL
10
“
“I want to work for a company that Pioneers or activists
breaking barriers
contributes to and it is part of the
community”
~ Anita Roddick, CEO and founder
The Body Shop
Among the reviewed cases, we found organizations whose objective is
to achieve environmental or social improvements and use their business
operations to finance such goals.
They become activists of their causes. They invest in actions to raise
awareness, inform and get followers who share their cause to act too.
Lately they even radicalize themselves to become lobbyists, to influence
governments to change laws, and thus the system.
Some of the companies that demonstrate the greatest consistency between
their actions and convictions become referents and get a lot of support from
consumers, who with their purchases contribute to continue financing their
actions for a better and sustainable world.11
Business Concept:
Ġ Founded in 1972 by climber Yvon Chouinard with the
idea of “creating the best possible product, without
causing unnecessary damage” to the environment.
Ġ This initial idea evolved into a company mission for
Patagonia activism by adding “using business” to inspire and
implement solutions to the environmental crisis.
Sector: Outdoor clothing and gear
Brand Positioning: Quality outdoor Ġ Patagonia is now recognized equally for the premium
clothing company being activist in the quality of its sports clothing and equipment and for
protection and conservation of the demonstrating that it is possible to combine business
environment with an active contribution to the sustainability of the
planet and all its creatures.
Business format: Clothing designer with
Source: patagonia.com
multi-channel distribution: online, few
single-brand shops and many multi-brand Ġ Certified B Corp since 2012.
shops.
Positive values as competitive
Headquarters: USA Ġ In 2017 it extended its range of products to food, with advantage:
the aim of solving the problems that the food industry
Product Mix: Outdoor clothes and gear for causes on the planet: exploitation of resources, global
men, women, children, and babies. warming, and the reduction of biodiversity. Activist and leader in environmental conservation
“1% for the Planet” is a program created in 2002 to extend
Since: 1972 to other companies the policy established in Patagonia since
Ġ Patagonia “Action Works” platform is a digital community 1985. This policy donates 1% of sales (or 10% of profits - the
that connects local communities with organizations to largest amount) to non-profit environmental organizations.
Revenue: 640 M€
take action on the most pressing issues facing the world
today. They opened a pop-up café in central London, Responsible consumption: Initiatives such as Common
Employees: 1,300
called Action Works Café, offering activist training Threads, Worn Wear, Product Lifecycle or Iron Clad
courses, an opportunity to “learn how to make a positive guarantee, where Patagonia commits to reduce, reuse,
Web: www.patagonia.com
difference”. repair and recycle all its products.
Planet Social Community Employees EthicsPatagonia 12
Key Success Factors:
Pioneers in welfare and work-life balance measures: Quality products.
Patagonia incorporated kindergartens to the offices in Obsessed with offering a durable, high quality product
1984. Flexible schedules allow employees to practice with functional technical characteristics. Their target
sports, be happier and achieve a healthier balance. audience recognizes and appreciates this value added
and is willing to pay a high price.
Their activism requires them to be consistent
They work with a small number of “partner” suppliers, Creating community.
who must share corporate values and environmental Patagonia has been able to create a community of
integrity. people who share its brand values: outdoor sports and
commitment for planet sustainability. They invest in
“The Footprint Chronicles” on its website informs about actions to evangelize and attract followers to its cause.
the social and environmental impact of each of its “Patagonia Action Works”, the platform connecting
products. volunteers and benefactors with environmental causes, Source: patagonia.com
transforms Patagonia from a simple brand into a global
movement co-created by its members.
Pioneers in corporate activism.
They have managed to build a great company thanks to
an authentic and strong brand reputation, prioritizing
sustainability and acting, both courageously and
consistently, against all forces.
On “Black Friday” 2015 they placed an impactful ad in The
New York Times saying “Don’t buy this jacket” to make
their customers think about excessive consumerism.
Patagonia sued the President of the United States
in 2018, after President Trump announced his plans
to significantly reduce the size of two national and
monument parks.
The success achieved as an activist business makes
Patagonia an inspiration for other companies.
Source: patagonia.com
PIONEER, ACTIVIST, BREAKING BARRIERS13
Business Concept
Ġ It was founded in 2011 by Gregg Renfrew with the
idea to “put truth back in beauty” after she discovered
the lack of regulation in the personal care industry.
The company advocates “for stricter guidelines and
regulations to shift the personal-care industry away
from using harmful and questionable ingredients.”
BeautyCounter
Sector: Skincare/Beauty Ġ They are a Certified B Corp and consider the triple
bottom line of people, planet, and profit in their
Brand Positioning: Safe and eco-friendly business decisions.
makeup and skincare company that
advocates for regulation in the beauty
industry. Ġ BeautyCounter’s use of clean, safe, sustainable
ingredients and advocacy work strives to change the way
Business format: online + 50,000 the beauty industry is run. Positive values as competitive
consultants + 3 stores + multibrand (Ulta,
Target…) advantage
Headquarters: USA
Sustainability beyond clean ingredients
Product Mix: Skincare, makeup, and bath They have a comprehensive responsible sourcing program
and body products made from responsibly that focuses on high risk ingredients such as mica, palm, and
sourced natural ingredients. vanilla.
Since: 2011 They use sustainable packaging by prohibiting harmful
materials like BPA and vinyl, eliminating any extra plastic,
Revenue: 277 M € switching to glass bottles, and providing clear instructions on
how to recycle the products and packaging.
Employees: 4,320
They divert 76% of their HQ waste from landfills through
Web: www.beautycounter.com their recycling and composting programs and 100% of
their carbon emissions from HQ associate travel are offset
through a leading sustainability agency.
Source: beautycounter.com
Planet Social Community Employees EthicsBeautyCounter 14
Key Success Factors
Safety of the product. BeautyCounter has also endorsed the Natural Cosmetics
They omit over 1,800 questionable ingredients currently Act, the first bill to combat greenwashing in the beauty
used in the industry, and each ingredient they use is industry in the U.S. alongside the Cosmetic Safety
assessed against 23 safety endpoints. They also use Enhancement Act, the Toxic Free Kids Act (Oregon) and
responsibly sourced raw materials and never test on the Safer Sunscreen Bill (Hawaii). Their actions include
animals. Additionally, they disclose all of their ingredients, 150,000 texts, 15,000 phone calls with lawmakers and
fragrances, and colorants. 1,500 meetings in the U.S and Canada.
Advocacy work. Creating a community of consultants, who is part of
Founder Gregg Renfrew did not set out to create a the activist rally.
company; she set out to create a movement. In 2019, she BeautyCounter uses the direct sales model because they
became the first clean beauty CEO to testify as an expert feel the story of clean beauty “is best told person-to-
witness at a hearing on cosmetic reform in Congress. person.” Each year, BeautyCounter sends consultants
to Washington, DC to talk to congress about safety in
Source: Instagram BeautyCounter
personal care products.
Safe working conditions also in suppliers
They have audited 100% of their mica suppliers by phone
and 77% in person, they partner with Sourcemap to
track where their mica is coming from, and they partner
with Kailash Satyarthi Children’s Foundation to support
solutions on the legalization of mica mining.
They also joined the Roundtable on Sustainable Palm Oil
and audit their vanilla suppliers to ensure there are no
violations of human rights.
Donations to notable causes
They invest in scientific research which supports
collaborations with academic institutions and have
donated over $2.4 million in cash and products to their
non-profit partners.
Source: www.beautycounter.com
PIONEER, ACTIVIST, BREAKING BARRIERS15
Business Concept:
Ġ Tony’s Chocolonely finds its origin in the Dutch television
program “Keuringsdienst van Waarde”, where some of
the dark secrets behind the production of the food and
goods are revealed. One of the presenters, Teun van de
Keuken, was shocked about the existing slavery in the
chocolate industry.
Tony’s Chocolonely
Sector: food (chocolate) Ġ Teun decides to lead by example and the first Tony’s
Chocolonely bar is born on November 2005: it’s a
Brand Positioning: fair trade chocolate Fairtrade and “100% slave free” milk chocolate bar. The
with the goal of 100% slavery-free chocolate chocolate bars are divided in unequal segments, to
industry make people aware of the inequality in the chocolate
business.
Business format: Brand sold at
supermarkets and online
Ġ From then, the company’s focus grows into a mission to
Headquarters: The Netherlands achieve a “100% slave free chocolate industry”, including
all manufacturers. Source: www.tonyschocolonely.com
Product Mix: chocolate bars, tiny bars,
tasting packages and merchandise Positive values as competitive
Since: 2005 advantage:
Revenue: 69.9 M €
Changing the rules where it is most needed
Employees: 90+ Tony’s Chocolonely started implementing the Child Labor
Monitoring and Remediation System (CLMRS) developed by
Web: www.tonyschocolonely.com the International Cocoa Initiative (ICI) and Nestlé so they can
more closely monitor the risk of child labor at their partner
cooperatives in Ghana and Ivory Coast. Tony Chocolonely
deliberately chooses to work in Ghana and Ivory Coast.
That’s where the worst problems are, so that is where they
want to have a positive impact.
Source: www.culy.nl
Planet Social Community Employees EthicsTony’s Chocolonely 16
Key Success Factors:
Educating the industry Educating all stakeholders to do better Tony’s Chocolonely supports the farmers and their
Tony’s Chocolonely believes chocolate companies need Tony’s Chocolonely is a fair-trade chocolate company communities, making them more independent, and is a
to include 5 sourcing principles in their relationship with who has great intentions to make the chocolate industry great example of a fair-trade chocolate company to other
the cocoa farmers: traceable cocoa beans, a fair (higher) free of child labour and modern slavery. This mission is brands. Therefore, they are tending to a leading position
price, strong farmers, long-term improved productivity promoted in many ways, starting with their slogan ‘’crazy in this part of the food sector in which they truly inspire
and less dependency on cocoa. about chocolate, serious about people’’. Their web is brands to do better.
highly educational, constantly tells what we can do as
Transparency consumers and asks for our involvement in the activist
Tony’s Chocolonely shows what impact they are making actions.
with their concept, how many bars are sold, what is paid
in premiums for a fairer price, et cetera.
PIONEER, ACTIVIST, BREAKING BARRIERS17
Business Concept:
Ġ The founder, who comes from the world of computer
engineering and finance, asked himself: “If a T-shirt costs
$8 to produce, why does it sell for $50-$60? He saw an
opportunity to do things differently.
Everlane Ġ The differentiation is based on “radical transparency”
as disruption: everything revolves around the
Sector: Apparel communication of this transparency: from the
information on the cost of the product, to where it has
Brand Position: “Exceptional quality. Ethical been made and by whom.
Factories. Radical Transparency”
Commercial format: online mainly + 7 Ġ The target chosen was the young urban consumer:
stores socially and environmentally aware, who likes style and
design, and has a modern lifestyle. An image of timeless
Headquarters: USA style and quality product was defined, where “less is
way better”, with long lasting materials and design, and
Product Mix: men’s and women’s clothing, therefore not following fashion trends.
footwear and accessories.
Source: www.everlane.com
Founding year: Online 2010, Physical stores Ġ Initially, the distribution was only online to keep
2017 marketing margins down. Everlane positioned the brand
and products above the price level with pop-up spaces
in Nordstrom and high quality events. The success of the
Positive values as competitive
Turnover: + 100 M€ (2017 estimate)
pop-ups led to the opening of the physical stores. advantage:
Employees: 300-345
Web: www.everlane.com Ġ The communication strategy was through social Ethics / Transparency
networks: Instagram and Snapchat mainly, promoting All factories are selected for their ethics and fair treatment
“exclusivity” through the images’ style and the concept of workers, many of them in developing countries. The
of “out of stock” and waiting lists. When stores opened, customer knows where each product has been produced.
provoking queues outside. All products are shown with cost information for each stage
of production and the commercial margin.
Planet Social Community Employees EthicsEverlane 18
Key Success Factors:
To differentiate by finding a latent need of the
customer that was not attended by the textile
industry
To know where and how the products are manufactured
and to understand the price/value of the product
as well as retailer margin, in order to make better
purchasing decisions. They also have been very good at
communicating their approach to customers, making it
easy for them to spread the word: “radical transparency”.
Source: www.everlane.com
Brand Creation, Coherence and Consistency Very effective marketing
Transparency and attention to detail are shown in almost From creating expectation and give prizes to tag friends
everything they do, from the concise and clean design of even more than six months before their launch, to
their website and stores, to the photographs or videos on giving a $25 credit when a tagged friend buys; from the
the website’s product pages. Everything tells high quality, diffusion in social networks of infographics explaining
simple, clean, modern, desirable, accessible, and ethical. their value proposal –radical transparency-, to a program
of “affiliates” open to everyone with followers.
Source: www.everlane.com
PIONEER, ACTIVIST, BREAKING BARRIERS19
SUSTAINABLE BRANDS & RETAIL20
“
“Ecoalf emerges in 2009 from my Born to solve
a problem
frustration with the excessive use of
the world’s natural resources and
the amount of waste produced by
industrialized countries.”
~ Javier Goyeneche, President A seed for a sustainable business creation is the realization of an existing
and founder Ecoalf problem in society and the vision as well as the determination of an
entrepreneur to solve it.
Many startups or young companies led by millennials, and therefore more
aware that the planet they have inherited is sick and already exhausted in
terms of natural resources, have been created with a higher purpose than
just make profits for the shareholders.
Next we present a snapshot of companies’ cases created by people with their
ideas to solve a detected problem, such as: the excess of waste, sale prices
only possible under unfair working conditions, the rapid obsolescence of
technological products or the use of ingredients that are dangerous for the
planet or our body.21
Business Concept:
Ġ Spanish clothing company ECOALF does things
differently since 2009. Its initial objective was to produce
beautiful clothes with high quality fabrics obtained only
from recycled materials. As they initially did not find
suppliers of the desired fabric quality, they decided to
manufacture textiles themselves.
Ecoalf
Sector: Personal apparel Ġ After a lot of investment in R&D, they were able to
develop textile material by recycling plastic bottles, old
Brand Positioning: Sustainable fashion, fishing nets, used coffee grounds, used tires... and also
“because there is no planet B” to design production processes that use far less natural
resources (electricity, water...) and emit less CO2.
Business format: Online store, 5 branded
stores and wholesale. Sustainability projects
promoters. Ġ Madrid, Berlin and Tokyo have an ECOALF flagship store:
they were built with reused materials, they showcase
Source: www.ecoembes.com
Headquarters: Spain products and brand’s philosophy, and host conferences,
exhibitions and screenings that promote circular
Product Mix: Personal and athleisure economy, upcycling and sustainability.
apparel, and footwear
Positive values as competitive
Since: 2009 advantage:
Revenue: 4 M€ (2017)
Cleaning to Recycle
Employees: +30 (2017) In 2015 ECOALF started a project with a fishermen’s
association to collect plastic waste from the Mediterranean
Web: www.ecoalf.com Sea. 500 tons of plastic have been collected and the success
of this project has made it expand to other fishermen’s
associations in Spain and even in Thailand as well as in
Greece.
Planet Social Community Employees EthicsEcoalf 22
Key Success Factors:
Conscious consumption Activism
Promotion for a new customer approach to fashion The brand actively promotes
“Because there is no planet B”: ECOALF wants to change upcycling. All its products and
the customer’s perspective on fashion: offering beautiful, actions promote awareness of
high-quality pieces and accessories with a timeless excessive waste and the urgent
design, which does not need to be renewed every need to include sustainability in
season and raising awareness about how our current the fashion industry and society.
lifestyle is causing excessive use of natural resources and
generating a lot of redundancy and waste. Urban and sustainable style
Sustainability but with innovative
and chic style: its collaborations
with Apple, Sybilla, Goop,
Will.i.am... and its presence in
Harrods or Barneys with limited
temporary collections show that
great style and environmental care
can go together. Their designs of Source: www.ecoalf.com
sustainable pieces, aimed at an
urban public, make customers both dress and feel good.
Visibility/communication
The brand’s most notable success is the promotion and
leadership of collaborative projects between entities and
companies, such as the cleaning and collection of plastic
garbage from the seas, with excellent results in upcycling
and obtaining higher quality fabrics made from recycled
materials. Therefore, they have achieved market visibility
and a relevant competitive advantage in the industry.
Source: www.ecoalf.com
BORN TO SOLVE A PROBLEM23
Business Concept: Positive values as competitive
advantage:
Ġ After the milk crisis in 2015, when producers had to sell
below cost price, Nicolas Chabanne launched the idea 39 cents/liter for farmers (+18 cents than standard
of a fair milk brand: establishing a minimum price to be market)
paid to the producer so he gets a fair income. The specifications chosen by the members allow finding
a compromise between the quality of the product, the
C’est qui le patrón? Ġ The concept is simple: 10,000 members/consumers
remuneration of farmers and its cost. Consumers will give
their opinion on a range of factors having an impact on
are involved in a cooperative and they decide the
Sector: Food the price of milk: the producer’s remuneration, the origin
specifications of a product and set the optimal price.
of the milk, grazing/non-grazing... For each choice, a prize
Once validated, the products are manufactured
Brand Positioning: The consumer’s brand is associated (e.g. alignment at the World Price = +0 cents,
by committed partner structures according to the
producer does not lose money = +4 cents, the producer can
specifications voted by the members.
Business format: Brand sold in grocery have 2 weeks of holidays = +9 cents). So, the consumer has
stores all the cards in hand to choose the price that he thinks is the
Ġ In November 2016, the first “C’est qui le patron?” milk right one.
Headquarters: France cartons were produced. It became a sales success and
in 3 years, CQLP has launched 33 products known as No marketing or advertising investment
Product Mix: basic food products “good, healthy and responsible”. Every penny raised is optimally spent so that everyone is
paid a fair price. The strength of the brand is to benefit from
Since: 2015 a community you can count on.
Revenue: 3.5 M€ (2018) Positive ambition
The brand wants to develop as many partnerships as
Employees: 20 possible, even collaborate with large groups like Nestlé or
Accor in order to grow and spread its tactics to create more
Web: www.lamarqueduconsommateur.com sustainable and responsible products.
Source: www.mon-viti.com/articles/developpement-durable-rse/cest-
qui-le-patron-simpose-dans-le-commerce-equitable
Planet Social Community Employees EthicsC’est qui le patrón? 24
Key Success Factors:
Customer community
All customers can choose the Top 3 next products,
report the presence of products in stores, go further
and become a member of the Consumer Society
for a symbolic 1 euro... All members can vote in the
General Assembly to decide the main directions of the
cooperative, vote for the specifications of the products
and audit those specifications, meet the partner
producers as well as the distributors, participate and/or
organize animations in stores... CQLP goes even further:
suppliers are controlled by consumers who can visit and
see the production conditions.
Efficient marketing
The brand image is basic but visible and recognizable.
CQLP also uses social networks and its customer’s
community to spread the brand and convert customers
to its cause.
Wide distribution network
Source: Thanks to the buzz of the brand, they managed to
www.lamarqueduconsommateur.com/la-demarche/comment-ca-marche be distributed in almost all major retailers in France
(Carrefour, E. Leclerc…)
BORN TO SOLVE A PROBLEM25
Business Concept:
Ġ Shift is a small family-run business founded in 2014
by brothers Carsten and Samuel Waldec to produce a
modular smartphone. Their products are manufactured
under largely fair and sustainable conditions.
Shift Ġ The company and all its actions are characterized by a
striving for Shift. The goal: manufacturing smartphones
Sector: electronic devices that are both high-performance and resource-saving
devices. The focus lies on the modular design concept.
Brand Positioning: new approach to
electronics: to do as much good as possible
and cause as little harm as possible Ġ Shift wants to promote the common good and recycling
management. Since 2018, they have been members of
Business format: online store the Gemeinwohlökonomie (GWÖ), which defines the
increase of the common good as the highest corporate
Headquarters: Germany goal before financial profits. Source: www.shiftphones.com
Product Mix: smartphones, tablets
Ġ No profits are taken from the company and all surpluses Positive values as competitive
Since: 2014 are reinvested in sustainable and social projects.
advantage:
Revenue: unstated
Employees: 20 Manufacturing planned to be fair and sustainable
Since 2018, the company has had its own factory in
Web: www.shiftphones.com Hangzhou, China, because primary products (circuits,
displays…) come mainly from the Asian region and it is
more sustainable to assemble them there than freight them
individually wrapped to Europe, causing packaging waste.
The planning of the factory and production process was
carried out together with an NGO. The aim was to create
good working conditions (e.g. working hours and a pleasant
Source: www.shiftphones.com working atmosphere) in addition to fair pay.
Planet Social Community Employees EthicsShift 26
Key Success Factors:
Holistic approach
Shift does not just try to fix individual inefficiencies but
pursues a sustainable concept from the ground up. From
the outset, the products are manufactured so they are
more durable and therefore consume fewer resources
and produce less electronic waste.
Transparency
Absolute transparency strengthens the credibility of
the company to act in a truly sustainable manner. In a
comprehensive impact report published by Shift in May
2019, information on sustainable aspects in the areas
of social justice, raw material procurement and product
manufacturing processes is communicated.
Agility
“Shift” is not just their name. They are especially aware
that procurement of raw material from African countries
is not yet ideal and are always working on measures to
improve this. The products are also constantly improved
Source: www.shiftphones.com
thus offering the user a more durable, sustainable
alternative to Apple and Co.
Raw materials used are as environmentally friendly A device deposit, no loss of warranty for self-repair,
and sustainable as possible. Supply chain is disclosed low-cost repairs, return options and upgrades are just
and conflict materials, such as coltan, are avoided. some of Shift’s measures to extend the lifecycles of
Additionally, educational trips to the raw material regions smartphones and thus reduce electronic waste.
and support of aid projects underline these efforts.
Fewer natural resources used and less waste
The modularity guarantees fast and cost-effective
reparability, an above-average life expectancy and more
efficient recycling. This is intended to strengthen the
circular economy and reduce the ecological footprint.
BORN TO SOLVE A PROBLEM27
Business Concept: Positive values as competitive
advantage:
Ġ Biome, Australia’s first online eco store, offers all the
products and tools needed to live a zero waste, toxin Sustainability to trust
free and ethical life, ranging from reusable coffee cups Biome vetoes 1,000’s of products every year against their
and beeswax food wraps, to organic skin care and strict standards of ingredients and truth in labelling. They
waste-free lunch boxes. have a “Dirty 30” list of banned ingredients. All skin care and
Biome beauty products at Biome are 100% cruelty free, palm oil
free, and free from synthetic preservatives, petrochemicals,
Ġ “Planet-saving choices you can trust”. Since 2003,
Sector: Sustainable shopping and fragrances.
they have been obsessed with finding solutions to
environmental challenges, scrutinising everything about
Brand Positioning: Australia’s first online Additionally, it offers complimentary instore or mail-in
the product to uncover any green-washing, hidden
eco store to live sustainably recycling for products purchased from Biome and for
toxins, or dubious ingredients.
a range of items purchased anywhere, such as: beauty
Business format: 6 stores + online packaging, pens, pencils, markers, highlighters, toothpaste
tubes and toothbrushes, wine corks, coat hangers, stockings
Headquarters: Australia and tights, straws and bras.
Product Mix: products and tools needed to Ethics lead business decisions
live a zero waste, toxin free and ethical life Biome operates with the highest standards of ethical, social,
and environmental performance. In the past 12 months
Since: 2003 Biome has:
Revenue: unstated • Become Australia’s first certified B Corporation retailer
Employees: 100 • Helped customers save 6.7 million single use plastic
items from waste
Web: https://www.biome.com.au/
• Launched Australia’s first zero waste beauty bar
• Become the world’s first Palm Oil Investigations (POI)
approved retailer.
Source: www.biome.com.au
Planet Social Community Employees EthicsBiome 28
Key Success Factors:
Anticipating and educating. Biome has pioneered many
of the concepts that now seem mainstream. In 2003,
they were the first to introduce online in Australia the
concept of a ‘reusable water bottle’, shampoo bars, and
clean beauty. Over the years, Biome has shone the light
for Bokashi composting, reusable coffee cups, straws, and
plastic free alternatives such as wire pegs.
Clear vision and growth to become a leader.
This progressive and innovative product range realistically
takes guts to produce and stock for a market that is
unprepared for change, but it also takes a strong vision
for a better future. Holding on to that vision have seen
Biome’s move from success to success and expand
their range exponentially (+5,000 products) to become Source: www.biome.com.au
a powerhouse in the ability to deliver sustainable and
environmentally friendly products to the Australian
consumer.
Source: www.biome.com.au
BORN TO SOLVE A PROBLEM29
PEO PLE
SUSTAINABILITY
PLA
NE
IT
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SUSTAINABLE BRANDS & RETAIL30
“
“We are stronger as a group than Changing
Business Model
an individual. Think in a cooperative
and communal way, set up local
food hubs and create growing
communities.”
~ Arhur Potts Dawson, In the past, many businesses’ unique purpose was to exclusively make
Chef and Speaker shareholder wealth, at the expenses of anything else.
Fortunately, other visionary entrepreneurs know that their project
depends on the welfare and development of their workers, suppliers and
communities. So to address all stakeholders’ needs, new business models
have arisen, such as cooperatives, where both decision-making and results of
their operations are shared.
Today new ways of doing business are emerging. Those that advocate for all
stakeholders, including planet and people, should obtain a positive impact.
These responsible business models measure results by balancing economic
profit, social development and environmental impact.31
Business Concept:
Ġ The pioneer and one of the largest consumer
cooperatives in the world, owned by more than eight
million members. It is the 5th largest food retailer in the
UK and it is also the 1st provider of funeral services, an
insurer, and a growing legal services business.
The Co-operative Group
Ġ But above all it is recognized in the market for its social
Sector: Food retail, insurance, and legal objectives and programs to help communities.
advice
Brand Positioning: Consumer co-operative, Ġ The company is owned and managed by its own
convenience and ethical Trade members, not by shareholders, as they believe this helps
to promote ethical business behaviour and conduct.
Business format: +2500 food stores +
online; +1000 funeral homes.
Headquarters: United Kingdom
Product Mix: Food, insurance and funeral
services
Since: 1844
Revenue: 12.113 M€
Employees: nearly 70.000
Web: www.co-operative.coop
Source: The co-operative group
Planet Social Community Employees EthicsThe Co-operative Group 32
Positive values as competitive Key Success Factors:
advantage:
Principles are more valuable than benefits
Putting people at the heart of the work and They believe in a better, fairer and different way of doing
strengthening communities business: aiming for the common good. Their values are
Leaders in fair trade and giving back to local communities self-sufficiency, self-responsibility, democracy, equity,
(19 million € donated to 4,000 local community projects equality, and solidarity.
in 2019). They also collaborate with The One Foundation
and Water Unite - for every sale of Co-op water, they fund A cooperative business model
projects that enable communities around the world to They create value in many ways and do so for their 4.6
have clean water-. million members who buy every week and own the
business collectively, not a few shareholders. They use
Rethinking everything they do to minimize the the profits to support local communities and give back
negative impact on the planet. to their members (5% of Coop products or services
From the ingredients used or packaging, everything purchased by each).
has an impact, and that’s why they work to minimize
it, reducing waste. They prioritize the purchase of local Responsible business
product, 100% renewable electricity, and 96% of waste is The co-operative group is known for its ethical nature
reused, recycled or recovered. and Fair Trade principles. At Co-op they are aware that
the products they sell impact millions of people and
communities around the world, as well as the planet.
Source: The co-operative group
Healthy lifestyles
They make it easier for consumers to buy healthy,
seasonal products, and their food products contain
less sugar and less salt. They do a great job in raising
awareness and helping customers to lead a healthier life.
Source: The co-operative group
CHANGING BUSINESS MODEL33
Business Concept:
Ġ What began as a group of 23 mountain friends today
is the largest consumer cooperative in the US with 19
million members.
Ġ REI operates outdoor clothing and equipment stores
REI nationwide, and is dedicated to inspiring, educating and
equipping its members and the community for a lifetime
Sector: Sport retail of outdoor adventure. REI’s purpose is to “Reconnect
people with nature”
Brand Positioning: Outdoor Retail Co-
operative
Ġ They use the online channel to communicate with
Business format: 154 large stores + online customers and spread their passion for outdoor
adventure, as well as to display, sell and rent an
Headquarters: USA extensive catalogue of products, both new and second-
hand, therefore encouraging reuse.
Product Mix: Sports clothing and
equipment
Ġ REI members earn dividends, and have exclusive
Source: www.rei.com
Since: 1938 services and offers. Becoming a lifetime member only
costs $20.
Revenue: 3,120 M€ Positive values as competitive
Employees: nearly 15,000 advantage:
Web: www.rei.com
Preserve the environment
REI donates millions of dollars annually to support
conservation projects nationwide and sends dedicated
teams of volunteers - REI members, clients and employees
- to build roads, clean beaches, restore local habitats, etc. In
addition, through responsible business practices throughout
the company, they strive to become a “climate neutral” and
zero waste organization by 2020.
Planet Social Community Employees EthicsREI 34
Key Success Factors:
Taking care of employees A different company with a different impact
REI’s community of employees are recognized for their They create, produce, sell and rent more sustainable
efforts with a reward package that includes competitive products. They strive to earn a reputation for quality and
base salaries, comprehensive incentive and benefit integrity every day. In 2019 it donated almost 70% of
plans, generous discounts and other advantages, as well its profits to the Outdoor community. Not only do they
as programs that support good health and work/family sell products, they are also actively involved in raising
balance. awareness, conserving nature and people’s health.
Benefits include paid vacation and sabbatical time, Commitment to employees and the work
as well as two “Yay Days” per employee, a day paid to environment
go outdoors. Moreover, workers can get high-quality, This has helped REI become one of Fortune magazine’s
affordable health care if they work an average of 20 “100 Best Companies to Work For” for 23 years in a row.
hours, and they also have a generous retirement plan.
Source: www.rei.com
Acting on and communicating their responsible
values
They take risks inspired by their core values, and in return
customers respond positively with increased brand
loyalty. In 2015 REI decided to give his employees a day
off and closed its doors during Black Friday. #OptOutside
campaign turned Black Friday into a day to enjoy
outdoors and improve the environment with clean-up
initiatives. From 2019, #OpttoAct campaign proposes a
yearlong commitment to sustainable living with small
weekly steps.
Source: www.rei.com
CHANGING BUSINESS MODEL35
Business Concept:
Ġ 100% franchised supermarket chain (1 owner = 1 Ġ A crucial factor in its high popularity among Danes
single store), which enjoys all the advantages of a is its localization. Each store, as a franchise, is
neighbourhood store, and at the same time has a responsible for a large part of the product range in it,
unique culture that is deeply rooted and based on ensuring that it is relevant to its local customers. It is
responsible people and values. REMA 1000 leads the also up to each owner to decide which projects they
Scandinavian market and is part of the REITAN group, a wish to support in the local community.
Rema 1000 Danish family business.
Sector: Food retail
Ġ REMA 1000’s way of working is differential - “we make it
Brand Positioning: “Discount with attitude” simple, fast and affordable for a customer to purchase
responsibly”.
Business format: + 300 discount
supermarkets
Headquarters: Denmark
Product Mix: Groceries
Since: 1994
Revenue: 2,3 billion €
Employees: 13.000
Web: www.rema1000.dk
Source: Rema1000
Planet Social Community Employees EthicsRema 1000 36
Key Success Factors:
Connecting Sustainable Development Goals (UN) with Local management
REMA 1000 targets Without any doubt, its greatest competitive advantage
Sustainability, innovation, circular economy and is the independent trader having his own initiative,
responsible consumption. It was the first chain to the empowerment of people, who work together in
cooperate with the NGO Stop Wasting Food, and one a company with a strong culture and a very efficient
of the initiatives was to eliminate the multi-purchase concept, led by very clear and powerful values: people
discounts that encourage customers to buy more than and trust. The franchise business model encourages the
what they need. local merchant to do well, linking them more closely to
customers and local employees.
Transparency and ethics: “At REMA 1000 we sell more
than food - we sell trust” Community engagement
Certifications on as many products as possible: fair trade, Customers identify Rema 1000 with a retail concept that
sustainable, animal welfare, ethical suppliers … They is close, committed to people and to the planet, that
publish their objectives and responsible projects, as well prioritizes sustainability, health and well-being, and that
as the results of these. creates community and a close emotional relationship
Source: Rema1000 with the brand. Health understood not only as nutrition
and physical exercise, but also as being part of a safe and
comforting community, where Rema 1000 contributes. All
Positive values as competitive this makes Rema 1000 the second most popular brand in
advantage: Denmark, only surpassed by Lego.
People’s health and well-being
They offer high quality healthy products at great prices,
and a range of activities to improve the community health
and well-being, such as organizing sports camps and
health academies.
Although they do not have an e-commerce, they offer
collaborative economy solutions for home delivery: digital
platforms such as VIGO. Neighbours help each other by
shopping at their local Rema 1000 and delivering it to
other neighbours who cannot go shopping.
Source: Rema1000
CHANGING BUSINESS MODEL37
Business Concept:
Ġ Social Foodies is a social business concept that sells
sustainable quality confectionary products to create
a profit to invest in projects that ensure work and
education in Africa and in Denmark.
Social Foodies Ġ Involvement in the full value chain: Raw ingredients
are produced in organic farms in Africa, where Social
Sector: Confectionery Foodies educates farmers in sustainable agriculture and
environment to improve the economy for both parties,
Brand Positioning: Socio-economic concept and security and profit for the farmers is ensured so that
selling sustainable quality chocolate they can provide for their families.
Business format: 1 flagship + 7 stores +
online Ġ The flagship store hosts lectures every Friday on socio-
economy with the goal of making Social Foodies an
Headquarters: Denmark advocate for food that makes a difference.
Product Mix: Chocolate, ice cream and
cream puffs + workshops
Since: 2012
Revenue: N/A
Employees: 158 in seven stores (ex.
flagship)
Web: www.socialfoodies.dk
Source: Social Foodies / Christoffer Sandager
Planet Social Community Employees EthicsSocial Foodies 38
Positive values as competitive Key Success Factors:
advantage:
Focus on quality.
Sustainability Social Foodies customers go there to buy good quality
Farmers working with Social Foodies get educated in chocolate they can eat with a good conscience. The
organic and sustainable agriculture to ensure good focus on the social concept speaks to the modern,
quality products while taking care of the environment. conscious consumer, that nowadays both care about the
That way, the land doesn’t get impoverished. environment, the development in foreign countries, and
want to make a difference, even when they want to enjoy
Social responsibility a sweet bite of chocolate.
The products of Social Foodies contribute not only to the
profit of the company but also make a positive impact Branded social responsibility.
in the world by providing fair economic support to the Consumers looking for brands that take responsibility
farmers. Social Foodies also invest in the education of and make an active difference in the world do not
the farmers and producers. These farmers are from poor have to look that far. Social Foodies put the concept
towns in Africa, and Social Foodies helps them climb out of the business right on the name, making it easier for
of poverty and provides a better and more secure future consumers to figure out what it is all about. The business
for the farmers and their families. takes both environmental and social responsibility,
focusing on some of the poorest places in the world and
helping some of the most misfortunate people.
Source: Social Foodies
Local Community
The company collaborates with local organizations in
Denmark to offer disabled people a job with which they
contribute to society: they are responsible for packaging
the nuts and seeds of Social Foodies.
Source: Social Foodies
CHANGING BUSINESS MODEL39
SUSTAINABLE BRANDS & RETAIL40
“
“Wars and corporations vying for Leading the positive
transformation
profit-at-any-cost have been two of
the most damaging and ravishing
forces on the planet since the 19th
century […] What we need is a new
model that works to bring out the
best in people, the planet, and for Sustainability and injustices are growing concerns for our society. Also for
companies.” leaders of companies which were created without those specific purposes,
because business as usual is not sustainable anymore.
~ Raj Sisodia, Author, Professor
and “Conscious Capitalism” We are seeing how some companies of all sizes and profiles adapt their
Co-founder strategies and operations to assume responsibilities and take courageous
actions to start transforming in order to minimize or eliminate their negative
impact on environment as on people.
These brave organizations are driving a change in business paradigm, seen
as necessary, and even promote a new way of consuming that is more
sustainable for everyone. It is important to mention that the bigger the
organization, the bigger the responsibility, but also the bigger the complexity
and opportunity to positively impact their sector.
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