German fashion e-tailer Zalando has raised its target of Gross Merchandise Volume (GMV) generated by more sustainable products from 20% to 25% by 2023, following significant progress on its sustainability targets in 2020.
The move is outlined in the Berlin-based firm’s first stand-alone Sustainability Progress Report which details its progress since the launch of its do.MORE sustainability strategy in October 2019.
In the year and a half since the strategy launch, Zalando says significant progress has been made but adds matters are no less urgent.
Among the highlights are setting science-based targets and already achieving one of them: Zalando is sourcing 100% renewable electricity in its own operations, leading to a 64% decrease of emissions in its own operations since 2017.
Over the past year, the company has also tripled its sustainability assortment to 80,000 products with 16% of its GMV generated by the sale of more sustainable products. This is up from 6.7% in 2019.
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Zalando’s previous target was to generate 20% of its GMV with such products but, based on its “fast progress” that goal has now been increased.
“We believe we can challenge ourselves, and our partners, to go further, which is why we have decided to raise our standards and our target to 25% by 2023,” the e-tailer said in its report.
To help consumers identify these more sustainable items, Zalando provides a sustainability filter in its Fashion Store and a sustainability flag on its products. These highlight products that have one or more sustainability benefits, compared to a conventional product of the same type. It also includes information about the benefits on a product detail page, which might include third-party certifications such as the Global Organic Textile Standard or Fairtrade Cotton. This information is collected from suppliers and verified by its teams.
The criteria Zalando uses for products to carry the sustainability flag cover a range of environmental, social, and animal welfare topics and are aligned with industry best practice, including third-party standards and data from the Sustainable Apparel Coalition’s Higg Materials Sustainability Index (MSI).
Other highlights include making sustainability assessment mandatory for its more than 3,500 brand partners and private labels, and receiving sustainability information from over 250 brands on their activities for 2019 via the Higg BRM from the Sustainable Apparel Coalition (SAC) and Higg Co.
Zalando has also reduced the amount of single-use plastic in packaging per item shipped by 22% to an average of 7.8 grams as part of its commitment to design its packaging to minimise waste and keep materials in use, specifically eliminating single-use plastics, by 2023.
Of the 53,000 metric tonnes of packaging materials it used, 87% stems from recycled input and 99% was recyclable.
“Driving change does not come for free. However, we should view every Euro and every minute that we spend on our sustainability vision not as a cost but as an investment to stay relevant for our customers, to further define our role in the fashion industry, and to attract the best talent globally,” says Zalando co-CEO Rubin Ritter. “I am convinced that if we make the right investments fast, they will form an important competitive edge for Zalando in the future.”
The e-tailer said this week it plans to grow GMV to more than EUR30bn (US$25.2bn) by 2025 and aspires to serve more than 10% of the total European fashion market in the long-term.
