Sustainability trends 2023: 7 ways retailers will make a difference
Top sustainability trends 2023 include greater transparency, the circular economy, and ethical supply chains.
As consumer preference for sustainable products grows, so has the problem of greenwashing. Many brands are positioning themselves and their products as healthy for the planet, but consumers have become skeptical, for good reason.
A 2022 Harris Poll for Google Cloud found 80% of 1,491 executives truly believe their companies are doing a bang-up job on environmental sustainability. Yet, 58% of those same leaders globally and 68% in the United States readily admit their companies have overstated their sustainability, or greenwashed, at times.
Top sustainability trends 2023 include greater transparency, the circular economy, and ethical supply chains.
When a brand’s claims about going green don’t match up with what they’re really doing to help the planet, that’s greenwashing.
The term was coined back in the 1980s by Jay Westerveld, an ecologist who exposed a hotel’s thin environmental claims. Since then, consumers have become wary of companies and products that purport to be eco-friendly.
A survey of 2,000 US consumers last year found that more than half strive to make sustainable buying choices, but 88% don’t immediately trust brands that say they’re sustainable.
Green commerce models are growing as consumers look to reduce their environmental impact by purchasing used items or renting.
A NewClimate Institute and Carbon Market Watch report that found net-zero emissions claims from 25 major companies to be highly exaggerated.
“We set out to uncover as many replicable good practices as possible, but we were frankly surprised and disappointed at the overall integrity of the companies’ claims,” said Thomas Day of NewClimate Institute, in a statement.
The risks of greenwashing are huge. Brands could face litigation (there’s a whole greenwashing litigation cottage industry now), regulatory fines, or a loss of public trust.
According to a Harvard Business Review study, customers are highly aware of the gap between a company’s stated environmental goals and actual implementation, which leads to lower customer satisfaction scores.
“Moreover, this blow to customer satisfaction is economically significant; prior studies found that even small changes in a firm’s customer satisfaction score can have significant implications for corporate performance,” researchers said.
Sustainability and fashion appear to be on opposing catwalks destined for collision. Fashion is a $2.5 trillion industry, producing 10% of global carbon emissions, 20% of global wastewater, and vast biodiversity loss. Consumers are demanding change, forcing sustainability in fashion as a requirement, not a trend.
The risk of being accused of greenwashing is making some organizations skittish about divulging their environmental plans and commitments.
In fact, even though 72% of 1,200 private companies polled by a consultancy called South Pole have emissions targets for meeting global climate goals, nearly a quarter say they have no plans to publicize their progress beyond what’s mandated.
South Pole calls this “green-hushing” and says the lack of transparency is counterproductive.
“More than ever, we need the companies making progress on sustainability to inspire their peers to make a start,” said Renat Heuberger, CEO of South Pole, in a statement. “This is impossible if progress is happening in silence.”
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Greenwashing has been with us for longer than most brands care to admit. With public and regulatory interest in saving the planet continuing to increase, it’s likely to become even more common.
By staying true to a brand and confining promotions and narratives to legitimate environmental activities, brands can avoid any greenwashing griminess.