Shifting to Sustainability: Merchandising & Gifting Go Green
In recent years, a growing environmental movement has pushed companies across industries to shift their practices and adopt more sustainable strategies. The pressure is on for businesses large and small to operate in environmentally friendly ways.
The promotional merchandise industry is no exception, and companies and consumers alike expect branded products, gifts and packaging to be eco-friendly.
As awareness of the need to protect our planet grows, so too does the demand for branded merchandise with a small environmental footprint. Consumers are increasingly interested in supporting companies that share their values, and sustainability is at the top of many people's lists.
The promotional products industry has a reputation for trinkets and trash destined for landfill — how can they, and the brands they serve, promote a world with less waste?
It starts with one fundamental question.
What is sustainability in merchandising?
Simply put, sustainability implies meeting current needs without compromising the ability of future generations to meet theirs. In the branded merchandise and gifting context, it encompasses a range of environmental factors, from carbon emissions and water usage to recyclability.
It also includes social and ethical concerns, such as labor practices and economic issues.
To be sustainable, a brand must consider the full lifecycle of a product, from the sourcing of materials to the end-user experience. It demands using eco-friendly packaging materials and collaboration with suppliers in their merchandising strategy, as well as energy-efficient transit and low- or zero-waste packaging.
The growing demand for sustainable products
There are a number of reasons why sustainability is becoming a larger focus for companies and retailers.
A study by Nielsen found that 66% of consumers are willing to pay more for sustainable goods. This number is even higher for millennials—73% of respondents said they would pay more for sustainable goods.
Publicly traded companies also see gains from going green.
A study by the Keenan Institute for Private Enterprise at the University of North Carolina found that companies with high environmental, social and governance (ESG) ratings experience higher stock returns. According to World Wildlife Fund, almost half of Fortune 500 companies are "capturing significant business value," from cutting emissions and using clean energy.
Environmental considerations are no longer "nice to have." Nor are they only prioritized by companies catering to outdoor enthusiasts and environmentalists.
A growing number of corporations and retailers are realising they need to evolve their merchandising and gifting strategy if they want to thrive.
It's not easy going green: The challenges of shifting to sustainable merchandising
There are a number of challenges companies face when shifting to more sustainable practices. First, it can be more expensive. This is because sustainable materials and processes often cost more than their traditional counterparts.
Sustainability can also be logistically difficult. Sourcing raw materials and packaging can be complicated and time-consuming in itself; on top of that, brands need to consider how transportation and other logistical aspects of sourcing goods affect the environment.
Promotional materials that are made out of recycled paper, organic cotton or bamboo, for example, but are transported via ships and trains that burn fossil fuels aren't truly environmentally friendly. Alternatively, companies might need to consolidate orders to minimize waste, which can complicate the supply chain.
Sustainability is still a relatively new concept in the promotional material market. There's a lack of standardization around claims and practices. Ultimately, purchasers have a difficult time knowing who they can trust.
For companies that operate globally, sustainability can create another layer of complexity. Environmental practices and regulations vary widely from country to country. Suppliers who are familiar with the landscape in each market are helpful in navigating legal requirements and standards.
There's another challenge that is rampant around the world and throughout the branded merchandise and gift industry—and many organizations and purchasers aren't even aware of it.
It's a practice known as greenwashing.
What is greenwashing?
Businesses, suppliers, retailers and stores use greenwashing to appease customers and appear more sustainable than they actually are.
Greenwashing involves companies marketing themselves as environmentally friendly without making the effort to actually reduce their impact on the environment.
This unethical and misleading strategy can damage a company's reputation. But identifying greenwashing can be difficult.
Common signs include:
Vague language like “eco” without reason
Unsubstantiated claims with no proof or certification
Colours or imagery that mislead consumers into thinking a product is more sustainable than it really is
Irrelevant claims emphasizing one small point when everything else isn’t sustainable
Fortunately, there are ways to ensure that a company is being truthful about its eco-friendly efforts.
When looking for a sustainable gifting or branded merchandise partner, we recommend:
Inquiring about the company's environmental policies
Asking about the social and economic impact of its products and practices
Finding out where the brand sources its materials
With planning and patience, you can avoid partnering with companies that use any form of greenwashing. The key is doing your homework to find a partner you can trust.
Questions to ask potential merchandising partners
The more you know about a company's environmental efforts, the easier it is to avoid greenwashing and make an informed decision about whether to work with them. Here are some questions you can ask to get started:
What are your environmental policies?
How do you choose eco-friendly materials?
Can you provide data sheets for the sustainable products you are producing?
Can you demonstrate a chain of custody for the sustainable materials you are using?
What kind of packaging do you use? Is it recyclable?
What are your social and economic sustainability practices?
Do you have any programs in place to reduce your carbon footprint?
Do you support any charitable causes? If so, which ones?
At the company level, Brand Addition takes a more scientific and measurable approach to validate sustainability claims. Our most prominent indicators are:
Carbon emissions
Levels of water use and reuse or lack of it
Impact on communities, ecosystems and biodiversity
Sustainable sources of raw materials
Product durability
End-of-life considerations, including whether an item is biodegradable or recyclable
Metrics and certifications to look for in a partner
Certifications are another way to evaluate whether brands are living up to their environmental promises—and to compare businesses when choosing between multiple options. Look for certifications like these:
EcoVadis
An independent assessment of a company's environmental and social performance, the EcoVadis Rating is determined by an analysis of publicly available information, including data from the Carbon Disclosure Project (CDP), the United Nations Global Compact, relevant government agencies and other sources.
B-Corp
A brand that meets certain social and environmental performance standards, public transparency, and legal accountability can earn B-CORP designation.
CDP Scores
CDP is an international non-profit that helps companies, governments and other organizations to manage their environmental impacts and encourages them to disclose greenhouse gas emissions and water use. CDP scores are based on factors like climate change, water security and forest impact.
Beyond tote bags and recycled paper: the latest sustainable options in promotional products
With promotional products and a merchandising partner in place, retailers and corporations can begin exploring a wide market of eco-conscious products.
Gone are the days when tote bags and water bottles were the main—and sometimes only—environmentally friendly options available for purchase.
Today, product categories cover a wide range of sustainable lifestyle needs like reusable drinkware, utensils, office supplies, personal care, technology, food, clothing and accessories.
The fashion industry has also made progress in its environmental efforts. Many brands now use a circular economy model to create textiles out of things like recycled plastic, or source low-impact and biodegradable materials like hemp and bamboo.
Large and small companies alike have more options than ever when choosing meaningful, long-lasting products and gifts.
The future of sustainable merchandising (recycled materials are just the start!)
The sustainable promotional products industry is just getting started. Here are some evolutions and trends we expect to see in the market over the coming years.
The use of recycled, biodegradable and compostable materials (like bamboo, organic cotton and even mushrooms) will continue to rise in both products and packaging.
Products will be created to last longer and be easier to repair.
Recycled water will be used more often in manufacturing.
Companies will focus on reducing waste throughout the entire lifecycle of the product or gift.
There will be an increased focus on local production, development and sourcing.
Sustainability reporting will become standard practice for businesses.
Products will be made using biodegradable or compostable materials instead of single-use plastic.
Renewable energy sources will be utilized more to reduce and offset carbon emissions.
The future of sustainable merchandising, gifting and packaging solutions looks promising. There are endless opportunities for businesses to embrace sustainability.
Getting started
Sustainability is never so costly that businesses can't compete. It's quite the opposite: businesses won't keep up with international standards without going eco-friendly. It starts with aligning your brand with sustainable partners.
Brand Addition helps companies begin, shift and grow sustainability efforts, with strategic approaches for spreading awareness and joy in memorable, eco-friendly and cost-efficient ways.
It's not impossible to find sustainable merchandise, and the results are worth it. If you have questions or are ready to get started, contact us to learn more.