Fashion e-retailers frequently market themselves as sustainable – yet most fail to integrate returns into their sustainability strategies.
Dr. Petisme’s research reveals that:
• Sustainability teams focus on production, not post-purchase impact. Most efforts target materials and supply chain emissions, but returns, overproduction, and reverse logistics are rarely addressed.
• Returns are absent from sustainability reports. Despite their environmental impact, returns are not systematically included in corporate sustainability strategies.
• Overproduction is a hidden consequence of high return rates. Many retailers manufacture extra stock to compensate for the fact that a significant portion of their inventory is always in transit between customers and warehouses.
What retailers can do differently:
• Returns must be part of a company’s sustainability strategy. A truly sustainable business cannot ignore the waste and emissions generated by returns.
• Overproduction should be tackled as a return management issue. Producing more than necessary to offset high return rates is neither efficient nor sustainable.
• Additionally, upcoming CSRD (Corporate Sustainability Reporting Directive) requirements will force companies to take sustainability reporting more seriously. This could push the industry to finally address returns in their ESG strategies.
• The twin-transition i.e. an emerging concept that acknowledges the intricate dependencies between green- and digital transformation. Use the collection of data and digitalisation to get smarter in operations and your decisions long and short term.