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          Firms adopt sustainability as lofty goal

          By He Wei in Shanghai | China Daily | Updated: 2020-07-14 09:50
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          German chemical giant Covestro AG, with 30 production sites globally, has announced a string of detailed approaches to realize the company's circular economy strategy. [Photo/covestro.com]

          Covestro has also joined hands with partners to develop elastic textile fibers produced using carbon dioxide as a raw material. They have already been tested by the first companies from the textile industry and medical technology and processed into yarns, socks, compression tubes and tapes.

          On the same page is Dutch lighting giant Signify, which vows to become plastic-free on all consumer-related packaging in 2021. This goal is built on top of the existing 80 percent recycled paper for its products.

          The company already began replacing its plastic blister packaging for its LED lamps with paper-based materials in the Pacific region, where the switch was received very positively and resulted in an increase in sales.

          "When we replaced our packaging in the Pacific region, customers said that it was more appealing and environmentally friendly," said Eric Rondolat, Signify CEO. "I call upon other companies to join us in making the switch and we will gladly share our lessons learned."

          The company does see more energy-efficient, sustainable products being favored by consumers, said Nicola Kimm, vice-president of sustainability, environment, health and safety at Signify.

          "And on the converse, if there are elements that consumers do not agree with, like the plastic packaging, we will hear about it. And consumers will become of course much more vocal," Kimm said. "And it goes both ways, meaning we will lose consumers if we don't act."

          There are even brands like Allbirds whose business philosophy is basically anchored on the concept of sustainability.

          Founded in 2016, the US company produces a wool fabric made specifically for footwear, generating an entirely new category of shoes inspired by natural materials.

          Erick Haskell, president of Allbirds' international business, said sustainability has shifted from a "nice-to-have" for many consumers, with design and comfort driving purchasing decisions, to a "must have" in the urgent pursuit of leaving a low carbon footprint.

          "Our consumers, including those in China, are starting to reflect more on their own behavior-they're looking for ways to live more sustainably and are demanding the same from the labels they buy," Haskell said.

          Haskell believes the company has treated the environment as a key stakeholder, meaning each decision is made by weighing both financial and environmental impacts. He said a decision to transform shoelaces from virgin to recycled polyester would probably triple the cost, but they insisted doing so and absorbed the cost in the margins.

          "That kind of decision is unheard of in businesses built solely for driving shareholder profits," he said. "And we consistently hear feedback from our customers that validate these choices and echo broader industry trends."

          Haskell noticed a change in attitudes among Chinese customers from 2019 when sustainability wasn't on the radar for footwear shoppers. Now the concept of environmental protection has become more appealing. He attributed this in large part to products that pretty much speak for themselves.

          "When consumers see the carbon number labels on their shoes, it places sustainability front and center-similar to nutrition labels on food," he said. "In just one year, we've seen the environmental movement gain significant traction in the fashion industry, as Chinese consumers are starting to demand more sustainable options."

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