From ‘greenwashing’ to ‘green hushing’, can retail really promote a circular economy?

• Retail supply chain currently contributes to 25% of greenhouse gas emissions globally: Deloitte
• Fashion retail is responsible for around 3-5% of global carbon emissions: McKinsey & Company
• Globally, food that gets wasted is worth $230 billion: Boston Consulting Group

Thus, the big question: is there really no such thing as an environmentally friendly retail company?

We spoke to Ann Cantrell, Associate Professor, Fashion Business Management Program at Fashion Institute of Technology, New York to understand if the reality is really bleak.

Can retailers make better business decisions and build an end-to-end approach towards a circular economy?

There are so many ways in which retailers can help promote the circular economy. First and foremost, having products that will last and can stay in the supply chain as long as possible is a great start. Offering solutions to customers to help them make better choices is another great way to help please customers’ growing interest in environmentally conscious brands. As an example, in my modern general store in Brooklyn, Annie’s Blue Ribbon General Store, for the past decade we’ve offered a refill station for customers to refill their dish/hand and laundry soap and all-purpose cleanser in their reusable containers. It’s been a win/win on many levels and is one of many ways we can help to cut down on single-use plastics while also creating goodwill with customers.

Moving over to a specific segment within retail – for the longest time, it was believed that luxury and sustainability are at loggerheads. But can luxury and sustainability co-exist?

When done right, luxury is the ultimate in sustainability because they are well made, classic goods that will last years. As mentioned above, keeping things in the supply chain for as long as possible is the goal of the circular economy. While ‘buy better, buy less’ isn’t always a workable solution economically for many customers, in the case of the luxury consumer it can be a solution as long as consumption is curbed. As businesses of all levels come to terms that sustainability is the future of fashion, luxury brands have come on board and in some cases are setting a good model for change. One example is Kering’s (Gucci, Balenciaga etc.) Environmental P&L which helps brands think more deeply about the decisions they are making to produce goods and have a more holistic and conscious approach to their business decisions. Rethinking certain materials in the process is one example. While there have been issues along the way, brands such as Burberry have made significant improvements although still have a long way to go. On the other hand, Chloe has made thoughtful changes including becoming a BCorp which is gratifying to see.

How can retail businesses operate consciously with an intent and steer away from greenwashing?

First of all, do the right thing and do it because it’s ethical not because ‘someone’ is watching. Make solid and sound decisions that are good for all stakeholders, including the earth. Think about the triple bottom line with prosperity for all instead of profit for some. Create a baseline, track your progress and be open and honest about the results. So many brands have been called out lately for greenwashing that almost the opposite is happening, and brands are staying silent to avoid issues (or perhaps because they are doing nothing regarding the environment). Now we even have a new term – ‘green hushing’. I think retailers must be transparent and hold themselves accountable when changes need to be made.