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Starting this month, a more <a href="https://www.afterpay.com/en-AU/business/access/exploring-sustainability/small-business-sustainability" rel="noopener noreferrer" target="_blank">sustainable</a> shopping experience is just one click away on Afterpay, thanks to a new partnership with API-carbon removal marketplace <a href="https://www.patch.io/" rel="noopener noreferrer" target="_blank">Patch</a>.

As the leading ‘Buy Now, Pay Later’ platform, Afterpay has long been committed to transforming the way consumers shop and pay, with a focus on financial wellness and consumer empowerment. Now, those shoppers can take even greater ownership of their purchasing habits by tracking and offsetting the carbon footprint of their Afterpay purchases.Not only is this good for the environment, but it’s good for the merchants that offer Afterpay. Increasingly, consumers are seeking out and rewarding brands that work to reduce their environmental impact, <a href="https://www.forbes.com/sites/forrester/2021/01/21/empowered-consumers-call-for-sustainability-transformation/?sh=519f719a2042" rel="noopener noreferrer" target="_blank">according to recent research from Forrester.</a>&nbsp;

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“As e-commerce demand steadily climbs, retailers are faced with mounting pressures to adopt sustainable practices -- and to help their customers do the same,” said Brennan Spellacy, Patch’s CEO and Co-Founder.&nbsp;

“As e-commerce demand steadily climbs, retailers are faced with mounting pressures to adopt <a href="https://www.afterpay.com/en-US/for-retailers/access/exploring-sustainability/sustainability-innovations" rel="noopener noreferrer" target="_blank">sustainable</a> practices -- and to help their customers do the same,” said Brennan Spellacy, Patch’s CEO and Co-Founder.&nbsp;By embedding Patch’s API directly into Afterpay’s consumer application, more than 10 million consumers will soon have the opportunity to take climate action and neutralize the impact of their shopping. As the prominence of e-commerce continues to grow, its carbon impact will only intensify. For example, the rising demand for faster shipping results in <a href="https://ctl.mit.edu/sites/ctl.mit.edu/files/library/public/Dimitri-Weideli-Environmental-Analysis-of-US-Online-Shopping_0.pdf" rel="noopener noreferrer" target="_blank">nearly triple the environmental footprint</a> of traditional online deliveries. Last mile delivery alone may account for a <a href="https://www3.weforum.org/docs/WEF_Future_of_the_last_mile_ecosystem.pdf" rel="noopener noreferrer" target="_blank">30% increase in urban emissions</a> in the top 10 cities globally, producing 25 million tonnes of CO2 annually by 2030 if not addressed.&nbsp;For shoppers who want to engage more deeply in climate action, the Afterpay app will feature a section where users can view the estimated carbon impact of their spend history and the cost to offset the related emissions. They can then select from Patch’s portfolio of nature-based and frontier human-engineered projects to purchase carbon removal and/or offsets from, such as forestry initiatives, carbon sequestration technologies, and more.&nbsp;

“We are thrilled to launch with Patch as we know our customers have an invested interest in taking sustainable actions towards their purchases,” said Zahir Khoja, General Manager of North America for Afterpay. “Through this partnership, we’re able to deliver on our brand promise of providing more ways for customers to contribute to sustainability initiatives or goals.”

“We are thrilled to launch with Patch as we know our customers have an invested interest in taking sustainable actions towards their purchases,” said Zahir Khoja, General Manager of North America for Afterpay. “Through this partnership, we’re able to deliver on our brand promise of providing more ways for customers to contribute to sustainability initiatives or goals.”Give your customers the gift of fair, easy, and greener payments this holiday season by <a href="https://retailers.afterpay.com/merchant-enquiry/" rel="noopener noreferrer" target="_blank">reaching out to our team.&nbsp;</a>

Patch and Afterpay Make It Easy to Go Green

<h3>What retailers and brands need to know</h3>When 22-year-old New Zealand designer Maggie Hewitt caught the eye of global luxury retailer Net-A-Porter, it was the start of a fairy-tale rise to the top of the fashion world.Over the next four years Hewitt and her <a href="https://www.afterpay.com/en-AU/business/access/exploring-sustainability/small-business-sustainability" rel="noopener noreferrer" target="_blank">sustainable</a> fashion label, <a href="https://maggiemarilyn.com/" rel="noopener noreferrer" target="_blank">Maggie Marilyn</a>, would quickly find their place among some of the most coveted brands in the world. The label was stocked by more than 60 retailers, from NAP to Bergdorf Goodman; worn by the likes of Meghan Markle and Michelle Obama; and feted by fashion magazines, with British Vogue describing her ascent as a “lightning rise.”But a “lightning rise” was never the aim for Hewitt, who has always placed a premium on <a href="https://www.afterpay.com/en-US/for-retailers/access/exploring-sustainability/sustainability-innovations" rel="noopener noreferrer" target="_blank">sustainability</a> and ethical production. So, at the end of 2020 she announced she was pulling her brand from the shelves of all her wholesalers and doing away with seasonal collections.&nbsp;Why? To reduce carbon emissions and “use fashion to create a better world.”At any other time, the designer’s decision might have seemed hopelessly idealistic. But her approach reflects a new commercial reality – and puts her at the forefront of the growing, global trend toward conscious consumption.&nbsp;&nbsp;Around the world, there’s been an explosion in sustainable fashion and beauty brands, from <a href="https://nagnata.com/" rel="noopener noreferrer" target="_blank">Nagnata</a> to Biossance, and an adjacent rise in profit-for-purpose retailers such as Warby Parker, which donates a pair of glasses for every pair sold, or Thankyou, which delivers 100 percent of its profits to charity. Meanwhile, a growing chorus of brands are lending their clout to social causes, from #BlackLivesMatter to non-binary and gender inclusion.&nbsp;“People are becoming more aware of the planet and of the impact they have,” says Tim Duggan, founder of youth media website Junkee and author of <a href="http://cultstatus.com/" rel="noopener noreferrer" target="_blank">Cult Status: How To Build A Business People Adore.&nbsp;</a>

“People are becoming more aware of the planet and of the impact they have.”

For the past decade, Duggan has overseen Junkee Media’s <a href="http://youthresearch.junkeemedia.com/" rel="noopener noreferrer" target="_blank">annual survey</a> of Australian Millennials and Gen Z, and says that conscious consumerism has emerged as an unmistakable trend. “What’s changed over the past 10 years is this rise in desire for brands to act ethically and with integrity. Brands still need to offer quality… and respond to customers, but the desire for brands to act ethically just overtook everything over the past few years.”&nbsp;Junkee’s research is backed by numerous other global studies. One Australian <a href="https://www.bepartnerready.com/research" rel="noopener noreferrer" target="_blank">study</a> found that a third of consumers have actively boycotted a company or brand in the past year due to its poor social responsibility; another U.S. study discovered that <a href="https://www.csrwire.com/press_releases/38312-new-cone-communications-research-confirms-millennials-as-america-s-most-ardent-csr-supporters-but-marked-differences-revealed-among-this-diverse-generation" rel="noopener noreferrer" target="_blank">9 in 10 Millennials</a> would prefer to buy from a brand that supported a cause.And this isn’t just a feel-good trend. Studies suggest that conscious consumerism makes commercial sense, too. A 2019 <a href="https://www.stern.nyu.edu/experience-stern/news-events/nyu-stern-center-sustainable-business-and-iri-launch-new-sustainable-share-index" rel="noopener noreferrer" target="_blank">U.S. study</a> found that although sustainably marketed products made up just 16.6 percent of the consumer packaged goods market in 2018, between 2013 and 2018, they accounted for more than half of market growth.&nbsp;

<h2>What’s behind the rise in the conscious consumer?</h2>The advent of social media, as well as with our unprecedented access to information, is driving the trend, says Duggan. “Millennials and Gen Z are the most educated and connected generations in history. [These generations] have grown up online, and as part of a global community.”This has, in turn, fueled demand for more transparency and accountability. “So, for example, if you think a brand isn’t up to snuff, you can call them out on social media and other people can also call them out, which creates a critical mass.”

“if a brand isn’t up to snuff, it’s very easy call them out on social media.”

Today’s conscious consumer hasn’t come out of the blue; it’s an evolution of previous social movements, says Duggan. “The difference is that it’s mainstream [now]. So, in the past you would have movements like Fair Trade or [business leaders] like Anita Roddick from The Body Shop talking about cruelty to animals, but those people were seen as revolutionaries or environmentalists – or very far to the left. Now that entire movement has shifted so far into the center.”&nbsp;Clare Press, who hosts the sustainable fashion podcast <a href="https://thewardrobecrisis.com/podcast" rel="noopener noreferrer" target="_blank">The Wardrobe Crisis</a>, agrees. “The interest in sustainability has skyrocketed in the past two years. It now feels that I never receive a fashion-based newsletter or visit a fashion magazine website without being met by stories about upcycling, or even complicated issues like carbon neutrality.”&nbsp;This is a marked shift, says Press, who spent more than a decade working in magazines, including at Vogue. “When I worked in mainstream fashion media it wasn’t cool to be talking about values or ethics, but now you’ve got a whole generation that’s very motivated by this.”&nbsp;This is partly because today’s consumers are more aware of climate change and the textile waste caused by fast fashion, says Press. “We’ve doubled clothing production in 15 years. We’re producing more clothes, and we’re throwing them away at a faster rate.”&nbsp;The issue of textile waste wasn’t even on the agenda when Courtney Holm attended design school in 2012. But when she landed her first job in fashion, she was horrified by the waste she discovered. “I guess I had a moment of clarity where I had to decide: ‘Do I get out of this [industry] entirely? Or am I going to try to change it?’ and that’s when I decided I would give it a try.”

“The interest in sustainability has skyrocketed in the past two years.”

Today Holm runs the fashion label <a href="https://abch.world/" rel="noopener noreferrer" target="_blank">A.BCH</a>, which designs every piece – from the fabrics to the thread and buttons – with sustainability in mind. “We make garments that have fully considered life cycles,” says Holm, who sends care instructions out with every garment, offers free repairs, and provides a “pathway for [customers] to send the garment back to us to be recycled at the end.”Holm also teaches fashion and says, unlike her days at design school, sustainability has become a core subject.&nbsp;

<h2>What’s next for the conscious consumer?&nbsp;</h2>As more fashion students study sustainability, and as Millennials and Gen Z rise into positions of power at work, Duggan believes that the influence of the conscious consumer will only grow. “I think that traditional companies with traditional leaders at the helm will not survive the next 30 years,” he says. “There are a lot of new players coming in, and over the next 10 years they will put pressure on some of the traditional players.”What will change is that consumers will become more savvy about greenwashing, and third-party certification bodies such as <a href="https://goodonyou.eco/" rel="noopener noreferrer" target="_blank">Good On You</a> and <a href="https://www.bcorporation.com.au/" rel="noopener noreferrer" target="_blank">B-Corp</a> will become increasingly important. “On the surface, right now, it’s easy to say you’re sustainable or you use a recyclable material,” says Duggan. “The next change will be people really understanding what different labels mean.”Press believes that brands will need to work harder to appeal to consumers, especially after COVID-19, which has shown many people how to live with less.&nbsp;In the meantime, designers like Hewitt will continue pushing for change. “While in the last couple of years we have seen a rise in conscious brands and consumers, we are far from being a sustainable industry. But I believe one day we could be, and that is my North Star.”&nbsp;

<h2>What retailers can do to appeal to the conscious consumer</h2>Identify your impact&nbsp;“My first tip would be to take a step back from your day-to-day, grab your team together and try to quantify on paper: What is the impact you’re trying to have as a company?” advises Duggan. “If your impact is only to sell garments or make money for your shareholders, that’s not enough. These days you need to have a bigger impact.”Avoid greenwashing&nbsp;“Sustainability needs to be part of the DNA of your business, not just ‘bolted on,’󠄂 ” says Holm. “The true conscious consumer will ask the tough questions: Is there diversity in your team? Is there a plan to move to circularity, or a plan to eradicate modern slavery from the supply chain?”Evolve your business“Big brands and department stores must innovate on new business models, from rental to on-demand production,” says Press, who suggests taking on a sustainability consultant. “In the U.K., <a href="https://thewardrobecrisis.com/the-noticeboard/2020/8/28/selfridges-moves-into-rental-repair-amp-resale" rel="noopener noreferrer" target="_blank">Selfridges is a great example</a>.”&nbsp;Start small with sustainability&nbsp;&nbsp;“If you are a smaller independent brand or a boutique retailer, where [employing a sustainability expert] is not realistic, think about breaking up the work into manageable pieces – so start small,” adds Press. “Maybe your first project is to make the switch to more sustainable packaging. That process might fire you up to do more and learn more. Remember, it's a journey. We can’t turn this stuff around overnight.”

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All references to any registered trademarks are the property of their respective owners. Afterpay does not endorse or recommend any one particular supplier and the information provided is for educational purposes only.

Why the conscious consumer is here to stay

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We are proud to partner with <a href="https://www.afterpay.com/categories/blackownedbusinesses" rel="noopener noreferrer" target="_blank">Black-owned businesses</a> each and every day. It is critical that we show our support and love for brands founded and led by innovative, inspiring, visionary Black women and men.&nbsp;

It’s time to learn, listen, and advocate.&nbsp;There are many ways we can take action today: being an ally, donating to organizations that support social justice and equality, and voting in local elections, and supporting organizations founded and led by Black women and men. Next time you shop, consider supporting the incredible black-owned businesses that partner with Afterpay -- you can find them in our shop directory <a href="https://www.afterpay.com/categories/blackownedbusinesses" rel="noopener noreferrer" target="_blank">here</a>.&nbsp;We will continue to lift them up today and tomorrow. We will reflect on what we can do to remain constant and vocal supporters of equality. We will use our voice to condemn racial injustice. We will use our platform to amplify the voices that need to be heard. In addition, Afterpay has also donated to the <a href="https://www.naacp.org/" rel="noopener noreferrer" target="_blank">NAACP</a> to further the fight for racial justice, and are working on additional ways to advocate for Black rights.To our black business owners, our black community, and their allies: We stand with you. We hear you. Thank YOU for bringing your voices and actions to drive positive, lasting change.&nbsp;For more resources, please see below.&nbsp;

<h2>Educate&nbsp;</h2><ul><li><a href="https://www.ted.com/talks/melinda_epler_3_ways_to_be_a_better_ally_in_the_workplace" rel="noopener noreferrer" target="_blank">3 Ways to Be a Better Ally in the Workplace</a></li><li><a href="https://medium.com/equality-includes-you/what-white-people-can-do-for-racial-justice-f2d18b0e0234" rel="noopener noreferrer" target="_blank">75 things you can do for racial justice</a></li><li><a href="https://www.linkedin.com/pulse/my-white-boss-talked-race-america-what-happened-schumacher-hodge/?trackingId=34xoCLwhL7Abh%2FhJKcQshw%3D%3D" rel="noopener noreferrer" target="_blank">How To Address Racism in the Workplace</a></li></ul><h2>Take Action&nbsp;</h2><ul><li><a href="https://www.knowyourrightscamp.com/" rel="noopener noreferrer" target="_blank">Know your rights campaign</a> - Mission is to advance the liberation and well-being of Black and Brown communities through education, self-empowerment, mass-mobilization and the creation of new systems that elevate the next generation of change leaders</li><li><a href="https://secure.actblue.com/donate/ms_blm_homepage_2019" rel="noopener noreferrer" target="_blank">Black Lives Matter Fundraiser</a> - Verified donation page for the Black Lives Matter movement which works on justice reform</li><li><a href="https://www.naacpldf.org/" rel="noopener noreferrer" target="_blank">NAACP Legal Defence and Educational Fund </a>- The NAACP LDF is America's top legal firm fighting for racial justice. LDF seeks equality for all Americans</li></ul><h2>Be Aware&nbsp;</h2><ul><li>New York Times, <a href="https://www.nytimes.com/2020/05/28/opinion/minneapolis-police-brutality.html" rel="noopener noreferrer" target="_blank">George Floyd, and police violence in America</a></li><li>Mother Jones, <a href="https://www.motherjones.com/crime-justice/2020/05/breonna-taylor-is-one-of-a-shocking-number-of-black-people-to-see-armed-police-barge-into-their-homes/" rel="noopener noreferrer" target="_blank">Breonna Taylor Is One of a Shocking Number of Black People to See Armed Police Barge Into Their Homes</a></li><li>The Daily Social Distancing Show, <a href="https://www.youtube.com/watch?v=v4amCfVbA_c" rel="noopener noreferrer" target="_blank">George Floyd, Minneapolis Protest, Ahmaud Arbery &amp; Amy Cooper </a></li></ul>

It is critical that we show our support and love for brands founded and led by innovative, inspiring, visionary Black women and men.

Lifting up Black-owned businesses: how you can support

At Afterpay, we know that our retail and brand partners and shoppers alike are facing an unprecedented time that they could have never predicted nor prepared for.

That’s why we’re doing all that we can to support organizations that are championing our communities during this challenging period. We’re excited to<a href="https://www.prnewswire.com/news-releases/afterpay-offers-covid-19-support-to-the-retail-community-and-customers-301066124.html" rel="noopener noreferrer" target="_blank"> announce</a> that in the face of COVID-19, we’ve teamed up with two incredible organizations helping entrepreneurs, business, and individuals recover from coronavirus impact – and any Afterpay user can get involved through our new donation “top up” program!&nbsp;&nbsp;&nbsp;Our Afterpay “top up” program will launch with two founding partners:

1. As a joint initiative between<a href="https://www.vogue.com/" rel="noopener noreferrer" target="_blank"> Vogue</a> and the<a href="https://cfda.com/" rel="noopener noreferrer" target="_blank"> Council of Fashion Designers of America</a> (CFDA), we are supporting<a href="https://c212.net/c/link/?t=0&amp;l=en&amp;o=2814596-1&amp;h=2648704085&amp;u=https%3A%2F%2Fcfda.com%2Fprograms%2Fdesigners%2Fcfdavogue-fashion-fund&amp;a=A+Common+Thread" rel="noopener noreferrer" target="_blank"> A Common Thread</a>, which was originally founded in response to the tragic events of September 11 as the CFDA/Vogue Fashion Fund. It has since been rebranded as an initiative dedicated to raising funds and awareness for the American fashion community impacted by the COVID-19 pandemic. A Common Thread is now awarding grants to small and medium size businesses including designers, retailers, factories, and other fashion companies to aid them in overcoming the effects of COVID-19.

"The American fashion industry continues to face unprecedented challenges, and Afterpay's contribution will help us raise additional funds to help our businesses.”

2. The second organization we are supporting is <a href="https://c212.net/c/link/?t=0&amp;l=en&amp;o=2814596-1&amp;h=681056682&amp;u=https%3A%2F%2Fbaby2baby.org%2F&amp;a=Baby2Baby" rel="noopener noreferrer" target="_blank">Baby2Baby</a>, a nonprofit which provides children living in poverty with diapers, clothing and other basic necessities that every child deserves. Over the last ten weeks, Baby2Baby has distributed 15 million essential items including diapers, formula, soap, shampoo, baby food and more to children and families across the country impacted by COVID-19.&nbsp;They have distributed over 100 million items over the last nine years to children in homeless shelters, domestic violence programs, foster care, hospitals and underserved schools."We're thrilled to participate in Afterpay's new top up program,' said Norah Weinstein and Kelly Sawyer Patricof, Co-Presidents of Baby2Baby. "Future contributions from their customers will help us even more as we continue providing basic essentials to some of the most vulnerable families across the country."

To get our 8 million+ Afterpay users involved in supporting our COVID-19 relief efforts, we’ve launched a global donation "top-up" program that allows Afterpay customers to "top-up" their purchases by adding a $1 donation to participating charitable organizations. In the US, the program will launch with A Common Thread and Baby2Baby as our initial launch partners, and we will welcome additional charitable partners as the program grows. We’ve also committed to donating more than $200,000 to several COVID-19 related charities around the world.Afterpay is donating directly to these organizations because of their strong contributions to helping our community recover from this challenging economic climate. To support participating organizations, shoppers simply buy any product via Afterpay and tick the $1 donation box at checkout.

Want to connect with our team about charitable efforts? Email us at <a href="mailto:philanthropy@afterpay.com" rel="noopener noreferrer">philanthropy@afterpay.com</a>

Afterpay “top up” program will launch with two founding partners.

Launching Afterpay’s “Top Up” Program: Do Good While You Shop

Diversity, equity &amp; inclusion, or DE&amp;I, is critical to the success of retailers today. From workplace policies to marketing campaigns, nearly every decision or action a company makes today must consider DE&amp;I principles.&nbsp;The good news is that many retailers are taking action: 74% of retail organizations indicated in a <a href="https://www.mmc.com/insights/publications/2020/november/retail-and-the-pursuit-of-a-diverse-and-inclusive-workplace.html" rel="noopener noreferrer" target="_blank">recent survey</a> that they are focused on improving diversity and inclusion across their business. By nature, many of these efforts are more than skin deep, concerning hiring practices, executive team makeup, pay parity, and other operational policies that customers don’t necessarily “see” from day-to-day.&nbsp;While external efforts like developing inclusive products or using diverse models in advertising are rooted in internal values, consumers are increasingly looking for the full picture of a company’s DE&amp;I efforts. With that, here are some ways to pull back the curtain and bring customers into your organization’s DE&amp;I journey.&nbsp;

<h2>1. State your position</h2>If your company is committed to hiring more women, people of color, or other individuals from underrepresented groups, make those goals public. Whether they are listed on a website or communicated via a blog and social media, be up-front with DE&amp;I goals. Then, share your strategy for achieving them, such as adapting hiring policies to generate a more diverse candidate pool. Finally, be transparent about where you are today. Consumes know that DE&amp;I is a journey, and don’t expect every brand to be perfect. What they do expect is for retailers to acknowledge where there’s still progress to be made.&nbsp;<h2>2. Report on progress</h2>From adopting a new DE&amp;I goal to reaching a milestone, it’s important to demonstrate progress to your customers. While a full social responsibility report isn’t necessary for many small or medium size retailers, merchants should regularly report on their progress (or lack thereof). This could be in an email newsletter, as part of a printed mailer, in a special section of your website, or on a blog. The process of reporting demonstrates to stakeholders that DE&amp;I is top of mind, and that goals are not static proclamations, but true guideposts to achieving greater diversity.&nbsp;<h2>3. Uplift voices</h2>Approaches to DE&amp;I should be framed as ongoing conversations, not static policies. This often involves creating forums in which different individuals and groups can share their experiences and provide advice. The best intentions can fall flat if they don’t include a diversity of perspectives. For example, the creative team behind a marketing campaign should be composed of, or advised by, diverse and inclusive minds if it is to be authentic to DE&amp;I principles. This also involves uplifting the voices of employees, partners, customers, and the communities in which your business operations. Create a dialogue with them about DE&amp;I, and then learn from it as you evolve as a more equitable and inclusive organization.

To learn more about diversity, equity and inclusion in retail, follow our retail blog.

Here are ways to pull back the curtain and bring customers into your organization’s DE&I journey. 

How to show your commitment to DE&I to your customer base year round

Sustainability is fast becoming an expectation of today’s consumers.

As the climate crisis pushes more people to examine their consumption habits, and issues like sourcing, manufacturing, and reuse/recycling become better understood, merchants are faced with a mandate to operate more <a href="https://www.afterpay.com/en-AU/business/access/exploring-sustainability/small-business-sustainability" rel="noopener noreferrer" target="_blank">sustainably</a>.&nbsp;Doing so involves much more than simply carrying sustainable products. A truly sustainable supply chain involves issues ranging from carbon footprint and air pollution to deforestation and water use--in addition to human rights challenges like the use of child labor and worker safety.&nbsp;What goes into making a product is often the focus of consumer scrutiny, but truly <a href="https://www.afterpay.com/en-US/for-retailers/access/exploring-sustainability/sustainability-innovations" rel="noopener noreferrer" target="_blank">sustainable</a> retailers go much further--evaluating and offsetting the energy usage of their stores, factories, and offices; streamlining logistics to have a smaller carbon footprint; rethinking packaging and shipping materials to be less resource-intensive; and much more.&nbsp;The <a href="https://www.afterpay.com/en-AU/business/access/exploring-sustainability/small-business-sustainability" rel="noopener noreferrer" target="_blank">sustainability</a> journey can seem daunting, but it’s an important one. Not only do sustainably-minded companies outperform their peers, but they play a critical role in the future of our environment and earth. Read on for insights to help you implement sustainable supply chain practices in 2021 and beyond.&nbsp;

<h2>1. Understand your current impact</h2>Ninety percent of a consumer company’s environmental impact (on air, land, water, biodiversity and geological resources) and 80% of greenhouse gas emissions comes from its supply chain,<a href="https://www.mckinsey.com/business-functions/sustainability/our-insights/starting-at-the-source-sustainability-in-supply-chains" rel="noopener noreferrer" target="_blank"> according to McKinsey</a>. These impacts carry significant social and environmental costs, which can be reduced by improving supply chain sustainability. Before making any progress, of course, retailers need to understand those impacts--recent research found only one-fifth of respondents have conducted a “<a href="https://www.mckinsey.com/business-functions/sustainability/our-insights/starting-at-the-source-sustainability-in-supply-chains#" rel="noopener noreferrer" target="_blank">comprehensive review of their supply chains’ sustainability performance</a>,” and more than half were unable to determine sustainability issues within their supply chain. Working with organizations like Carbon Disclosure Project (CDP), The Sustainability Consortium (TCS), Sustainability Accounting Standards Board (SASB), Global Reporting Initiative (GRI), and World Wildlife Fund can give retailers a sense of where to start, what to evaluate, and how to improve.&nbsp;

<h2>2. Choose suppliers wisely</h2>One key way to reduce impacts, and thus costs, is by working directly with suppliers (whether an energy provider or logistics company) to manage and eventually reduce risks. It’s easier for larger retailers to have these conversations about <a href="https://www.afterpay.com/en-US/for-retailers/access/exploring-sustainability/sustainability-innovations" rel="noopener noreferrer" target="_blank">sustainability</a> with suppliers, of course, but merchants of any size should at least research the practices of the “links” in their supply chain. Ending contracts with suppliers that don’t have solid sustainability practices sends a message, and the more small businesses gravitate toward environmentally-conscious partners, the quicker change will happen.Merchants of all sizes should ask pointed questions of their suppliers, including whether they subcontract work out to other entities. A supplier might look sustainable on paper, but fail to practice strong oversight of subcontractors. This is especially important in the apparel and fast-fashion sectors, which demand high volumes of product produced in tight windows.

<h2>3. Identify issues and set goals</h2>A sustainability overhaul takes time--often years. Thus, it’s critical to start by pinpointing issues a retailer can take action against over the short- and long-term. Increasing the recyclability of packaging materials might be as simple as changing suppliers, while reducing the carbon footprint of manufacturing practices is a much larger investment of time and capital. A tiered approach is wise, starting with quicker wins that can be addressed in a shorter period of time. Longer-term goals should be broken down into achievable steps.For larger retailers, this level of integration and transparency can result in medium-term financial impacts, such as increased interest from ESG-focused investors, consumer demand, or tax breaks.

<h2>4. Communicate your intent and impact</h2>When it comes to sustainability, action always comes first. Merchants on a sustainability journey will be eager to let their customers know, but there must be a “there there.” Meaning, consumers are quick to dismiss brands that claim to be sustainable without demonstrating clear impact. That’s why it’s vital to tackle more achievable environmental issues first, while demonstrating incremental progress towards more challenging goals. With this, it’s also important to bring customers into the sustainability journey. Invite them to recycle your shipping materials, or be creative in how products are reused at the end of their useful life. Share stories from across your supply chain--such as the farmers or artisans behind your products, or the workers and factories implementing sustainable products. After all, it is individuals like these who are having the true positive impact--and their efforts deserve a spotlight.

Sustainability is fast becoming an expectation of today’s consumers. 

How to implement sustainable practices into your supply chain in 2021

What does it mean to be a socially responsible brand?&nbsp;Decades ago, companies ticked this box by donating a portion of profits to charities or engaging in cause marketing campaigns. Today, that’s simply not enough--and at worst, can be perceived as inauthentic. The brands that truly and authentically engage in social, environmental, and even political issues are those that win big with Gen Z consumers. And it’s becoming more important than ever.&nbsp;The shift from check-writing philanthropy to truly purpose-driven corporate social responsibility has been a long time in the making. Driven by Millennials engaged in social causes they care about, more retailers have paused to examine their values, practices, and impact on society and the environment. Those that take concrete actions to advance progress by putting a social mission at the heart of their business have been rewarded handsomely, with consumers choosing responsible companies over others, and paying a premium for their products.

Gen Z is only accelerating this shift, and they’re keen at sniffing out companies that talk the talk but don’t walk the walk. This generation has grown up with an understanding of the impact companies have on society, and are adept at researching brands before they buy: <a href="https://www2.deloitte.com/global/en/pages/about-deloitte/articles/millennialsurvey.html" rel="noopener noreferrer" target="_blank">nearly half of Gen Zers</a> have educated themselves on the environmental aspects of the brands they consume.While Millennials will opt not to patronize brands with business practices, values, or political viewpoints they disagree with, Gen Z takes things a step further. <a href="https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/true-gen-generation-z-and-its-implications-for-companies" rel="noopener noreferrer" target="_blank">More than 75% of Gen Z </a>will not only stop supporting brands they find unethical, but actively spread the word.&nbsp;Put simply, Gen Z has higher expectations of the brands they buy from. As an activist generation, they want to live their values. What they buy (and thus share on social media) must reflect their beliefs, and because of this, Gen Z is <a href="https://www.marketingdive.com/news/your-brands-real-offering-to-gen-z-is-community/572844/" rel="noopener noreferrer" target="_blank">three times more likely </a>than all other generations to say the role of business is to serve communities and society at large.&nbsp;Whether your brand has a clear social mission or is just starting on the journey, the following insights can help your organization meet the expectations of Gen Z shoppers.

<h2>1. Find your purpose</h2>Milton Friedman said the purpose of a business is to turn a profit. Today, the world’s business leaders have declared that view outdated, and at worst, harmful to a business’s long-term growth. In 2019, the Business Roundtable redefined the purpose of a corporation to serve all stakeholders, including communities and employees, not just shareholders. Having a purpose is no longer a nice-to-have, but a mandate.&nbsp;Defining your company’s purpose can be as simple as asking: Why were we founded? An athletics company was founded to give athletes the tools they need to perform. A clothing brand was founded to give buyers self-confidence and individuality. Find that germ of a purpose and align it with an authentic social issue. Using the same examples, that could be empowering youth athletes in underserved communities, and developing more sustainable (and fairly-produced) textiles used in apparel.

<h2>2. Examine practices </h2>A retailer that supports diversity and inclusion through its marketing and consumer engagement better have a diverse and inclusive leadership team and company culture. Before taking a public stance or integrating social issues in external activities, ensure your house is in order. It may take time to reform company culture or audit your supply chain, but these are worthy investments.&nbsp;If you haven’t already, define values that will guide your practices. Ensure those values align with why your company exists, who you hope to serve, how you operate, and what you offer to consumers and society beyond just products. And then, ensure those values are lived each and every day.

<h2>3. Talk about your journey</h2>There’s an important step on the social responsibility journey that many companies leave out: Communicate about your progress. It’s okay to acknowledge what your company is doing wrong on the path to fixing it. Unlike previous generations, Gen Z is surprisingly forgiving of brands that address their missteps or areas for improvement. They would rather support brands that openly work towards bettering society than those that cover up failings. Even Patagonia, the poster child for ethical and responsible companies, clearly explains the areas in which the company falls short by using environmentally-harmful materials in certain products. Patagonia then explains how they’re working to remedy shortcomings not only for their own betterment, but to help the apparel industry as a whole move forward.

<h2>4. Build community around your causes</h2>Community is one of the defining factors of Gen Z, and they’re redefining what it means to come together in society. <a href="https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/true-gen-generation-z-and-its-implications-for-companies" rel="noopener noreferrer" target="_blank">Sixty-six percent of Gen Z say communities </a>are defined by causes and interests, not by socioeconomic factors. This applies to brands, too--Gen Z are more apt to be loyal to brands that bring diverse groups together via shared causes as opposed to retailers that market to specific demographics and try to “force” community building. Rather, Gen Z wants to be equipped with the platforms and tools your brand offers to build their own communities and engage in the issues and causes that matter to them. <a href="https://www.marketingdive.com/news/your-brands-real-offering-to-gen-z-is-community/572844/" rel="noopener noreferrer" target="_blank">Nearly half of Gen Zers</a> want to participate in a brand’s social impact initiatives, and 56% want brands to provide them with resources to make a difference on their own.&nbsp;

<h2>5. Speak up on the issues that matter</h2><a href="https://newsroom.spotify.com/2019-06-03/everything-you-wanted-to-know-about-gen-z-but-were-afraid-to-ask/" rel="noopener noreferrer" target="_blank">Sixty-six percent of Gen Z </a>say brands should be part of the political and social debates of today, including promoting progressive values and playing a meaningful role in society. But, remember that while words are important--Gen Zers say brands should focus on messaging related to honesty, equality, and freedom--actions are non-negotiable. Companies that claim a stance or take a position are expected to back that up with concrete actions that Gen Z can join them in.

<h2>Looking ahead: social responsibility post-2020</h2>COVID-19, of course, has only heightened the need to be a socially responsible company. Throughout the pandemic, and now the Black Lives Matter movement, Gen Z has felt called to embrace their individuality and stand up for what they believe in. <a href="https://www2.deloitte.com/global/en/pages/about-deloitte/articles/millennialsurvey.html" rel="noopener noreferrer" target="_blank">Nearly three-fourths</a> say they intend to take actions that have a positive impact on their communities, and they expect companies to do the same.<a href="https://www2.deloitte.com/global/en/pages/about-deloitte/articles/millennialsurvey.html" rel="noopener noreferrer" target="_blank">Sixty percent say they will make an effort to buy more</a> from businesses that took care of their workforces and positively affected society during the pandemic. Today and tomorrow, the role of a brand will continue to evolve to play a greater role in society--not only because Gen Z expects it, but because retailers have the power to make a real, lasting difference. That’s a purpose worth working towards.

Gen Z is only accelerating this shift, and they’re keen at sniffing out companies that talk the talk but don’t walk the walk. 

How brands can meet the expectations of socially responsible Gen Z shoppers

It seems simple, but one of the best ways to engage Gen Z is to ask them for their opinions and ideas.

In fact, when Gen Zers share their opinions with or about retailers, they’re<a href="https://nrf.com/sites/default/files/2018-10/NRF_GenZ%20Brand%20Relationships%20Exec%20Report.pdf" rel="noopener noreferrer" target="_blank"> twice as likely to give positive feedback than complain. Sixty percent say it’s important for brands to value their opinions</a>, and, <a href="https://www.accenture.com/t20170503T114448Z__w__/us-en/_acnmedia/PDF-44/Accenture-Retail-Customer-Research-Executive-Summary-2017.pdf#zoom=50" rel="noopener noreferrer" target="_blank">40% report that they give feedback to brands </a>often or very often.Inviting Gen Z to share what’s on their mind creates a feedback loop that provides Gen Z with a sense of ownership in the retailers they buy from, while giving retailers the more authentic and actionable insights. It also helps bring in new Gen Z customers: This generation overwhelmingly makes purchasing decisions based on peer feedback and online reviews.&nbsp;To empower your Gen Z customers to engage, ask yourself these questions:

<h2>1. How are you gathering feedback?</h2>The methods of gathering feedback have changed. Static review forms and lengthy questionnaires show Gen Z that your brand isn’t quite “with it,” and thus doesn’t understand how they operate. The traditional <a href="https://www.afterpay.com/en-US/for-retailers/access/operations/customer-service-examples" rel="noopener noreferrer" target="_blank">customer service</a> model is outdated--today, savvy brands are building customer experience and engagement teams, often staffed with “community managers” whose roles center on fostering connections with (and gathering input from) shoppers. While the most popular method among Gen Z is writing reviews directly on retailer websites, this <a href="https://www.accenture.com/t20170503T114448Z__w__/us-en/_acnmedia/PDF-44/Accenture-Retail-Customer-Research-Executive-Summary-2017.pdf#zoom=50" rel="noopener noreferrer" target="_blank">generation is more likely than Millennials to provide feedback via Twitter or posts on Facebook and Snapchat.</a> Ensure you’re active and constantly gathering feedback across those channels.

<h2>2. What opportunities are you offering?</h2>Gen Z is eager to provide far more than just product reviews. <a href="https://nrf.com/sites/default/files/2018-10/NRF_GenZ%20Brand%20Relationships%20Exec%20Report.pdf" rel="noopener noreferrer" target="_blank">Forty-four percent said they would submit product ideas </a>if given the opportunity, compared to 43% that said they would participate in a product review. Reach beyond simple product feedback to address business opportunities and challenges, and you might find that Gen Zers are your new “consultants.” Their insights can direct product development, brand marketing, pricing models, store locations, payment options, and more. (Many Afterpay partners have joined our platform at the suggestion of their own customers!)This is becoming even more important as brick-and-mortar stores continue to reopen post-COVID. If you’re not already, now is an important time to engage Gen Z in conversation around reopenings, to learn what they’re comfortable with and how they want to shop in a COVID world.

<h2>3. What are you asking them to create?</h2>Even more, Gen Zers can be powerful content creators: 36% would create digital content for a brand if given the opportunity to. That content doesn’t have to all live on owned brand channels, even when solicited. Encourage your customers to share their thoughts on social media, and especially YouTube: <a href="https://www.accenture.com/t20170503T114448Z__w__/us-en/_acnmedia/PDF-44/Accenture-Retail-Customer-Research-Executive-Summary-2017.pdf#zoom=50" rel="noopener noreferrer" target="_blank">Twice as many Gen Zers</a> turn to YouTube before making a purchase than Millennials. Not only do they want honest, authentic feedback from peers, but they want to see the product “in action,” put to use in real life.&nbsp;<h2>4. When are you responding?</h2>With feedback, it’s important to respond appropriately and quickly. While most positive reviews can be left alone (unless your brand has a robust customer engagement team), it’s wise to thank some customers for good reviews, and imperative to address negative reviews or problems. Doing so on a public forum demonstrates that your brand is receptive to feedback of all flavors, and ready to make things right, or just express gratitude. Gen Zers are more likely to share their opinion if they know they’re going to be heard. Speed is vital, too. Remember that Gen Z is always connected and adept at bouncing between different social and messaging apps. They expect a chat-like experience with brands, especially when they experience a problem.

<h2>5. How are you incentivizing?</h2>Although Gen Z is eager to speak up, they still want to be compensated for their time and insights, which they know are valuable to brands. Incentives can be as simple as a status or badging system to provide visible seniority to frequent contributors or “experts,” to discounts, access to exclusive products, sneak peeks, or rewards. Incentives are well worth the investment, and may end up costing less than traditional focus groups, which don’t always reach a brand’s actual, active customers.The best incentive of them all? Showing Gen Z the changes, improvements, or new offerings their feedback has resulted in. Once Gen Zers see their feedback and ideas brought to life, they’ll be eager to spread the word, advocate for your brand, and continue being a loyal customer.

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Inviting Gen Z to share what’s on their mind creates a feedback loop that provides Gen Z with a sense of ownership in the retailers they buy from.

How brands can effectively engage Gen Z consumers? Just ask!

Earth Day--April 22nd--is a reminder of the importance of operating a <a href="https://www.afterpay.com/en-AU/business/access/exploring-sustainability/small-business-sustainability" rel="noopener noreferrer" target="_blank">sustainable</a> business. Beyond being good for the planet, sustainable businesses are increasingly outperforming their less-environmentally conscious peers. Certain sustainable product categories demonstrated “<a href="https://hbr.org/2019/07/the-elusive-green-consumer" rel="noopener noreferrer" target="_blank">twice the growth of traditional counterparts</a>,” and more than <a href="https://us.anteagroup.com/en-us/blog/corporate-sustainability-consumers-3-trends-every-company-needs-know" rel="noopener noreferrer" target="_blank">30% of Americans</a> have rewarded companies that are doing their part to reduce global warming.&nbsp;Being a <a href="https://www.afterpay.com/en-US/for-retailers/access/exploring-sustainability/sustainability-innovations" rel="noopener noreferrer" target="_blank">sustainable</a> business can seem challenging for retailers with smaller footprints. After all, they may have less control over supply chain partners or logistics. But any business can take simple steps to reduce their environmental impact for generations to come. Actions as simple as emailing instead of printing in-store receipts, installing energy-efficient light bulbs in stores, or revamping shipping boxes can make a big impact over time.Some tips below that your customers and the Earth will thank you for.

<h2>1. Revamp your shipping materials</h2>As online shopping has surged over the past decade, so too has the resulting environmental impact of shipping those products to consumers. You can make an impact by switching to recycled shipping boxes, environmentally-friendly fillers, and cutting back on paper use. Take it a step further by including instructions on how customers can recycle or reuse your packaging (if you already have custom-branded packaging, include these tips on the inside flap or bottom of the box).<h2>2. ...and your packaging</h2>&nbsp;Are your products packaged with environmentally-friendly materials? Many retailers don’t realize that even customer packaging like candle cylinders can be produced with recycled materials. Encourage customers to reuse your packaging (that candle cylinder could hold matches, for example). This does double-duty by keeping your brand on display in homes.&nbsp;

<h2>3. Invest in carbon offsets</h2>While you may not be able to measurably reduce the carbon footprint of your shipping partners or the factories that make your products, you can <a href="https://www.forbes.com/sites/devinthorpe/2020/02/04/buying-carbon-offsets-for-your-home-or-business-is-so-cheap-and-easy-you-wont-believe-it/#460b19153232" rel="noopener noreferrer" target="_blank">offset them.</a> Carbon offsets are essentially investments in environmental efforts like planting trees and building renewable energy facilities. The positive effects of those efforts are used to balance out the negative environmental impacts of a business. <a href="https://carbonfund.org/take-action/businesses/carbonfree-programs/small-business-partner/" rel="noopener noreferrer" target="_blank">Carbonfund.org</a> has affordable offset opportunities for small businesses.&nbsp;<h2>4. Give shoppers the tools to make a difference</h2>Consumers are more environmentally-conscious than ever. Not only will they pay more for sustainable brands, but <a href="https://www.forbes.com/sites/solitairetownsend/2018/11/21/consumers-want-you-to-help-them-make-a-difference/#4b1b15c76954" rel="noopener noreferrer" target="_blank">88% say they want brands to help them reduce their own footprint.</a> Consider offering products or services that help your shoppers live sustainable lives. Coffee companies, for example, can make reusable cups and straws, while clothing retailers can provide reusable bags for their customers to use while making grocery or pharmacy runs.&nbsp;

<h2>5. Be creative with excess and extras</h2>Nearly every company that produces physical goods has manufacturing waste. Whether scraps of fabric or “seconds,” think of creative ways to prevent those materials from reaching landfills. Many retailers are responding to the COVID-19 pandemic by using excess fabric to manufacture non-medical masks for the public. Evaluate your extras and consider donating less-than-perfect products, repurposing excess materials into rags or other useful items, or pairing leftovers with fun DIY instructions. Beyond reducing your footprint, these efforts go a long way toward showing your customers that you care.&nbsp;<h2>6. Join a coalition or counsel</h2>Organizations like <a href="https://www.onepercentfortheplanet.org/" rel="noopener noreferrer" target="_blank">1% for the Planet</a> help businesses of any size maximize their impact. Through this initiative, companies pledge 1% of annual profits towards values-aligned environmental initiatives.&nbsp;The <a href="https://www.asbcouncil.org/" rel="noopener noreferrer" target="_blank">American Sustainable Business Council</a>, <a href="https://www.wemeanbusinesscoalition.org/about/" rel="noopener noreferrer" target="_blank">We Mean Business</a>, <a href="https://www.theconsumergoodsforum.com/initiatives/environmental-sustainability/" rel="noopener noreferrer" target="_blank">The Consumer Goods Forum</a>, and <a href="https://www.rila.org/retail-compliance-center/sustainability" rel="noopener noreferrer" target="_blank">The Retail Compliance Center</a> all have excellent resources and communities for businesses of all sizes.

<h2>7. Craft sustainable messaging</h2>Sustainability is about action, not talk--but it’s still important to let your customers know how you’re implementing sustainable practices. Whether you’re investing in carbon offsets or developing special environmentally-friendly products, let your customers know why these actions are important, and how they can help.&nbsp;<h2>8. Audit your operations</h2>Back office operations can have a significant environmental footprint. SustainAbility counsels: “Don’t just consider the impact of individual products, make sure you are considering the sustainability of the system as a whole.” For smaller businesses, an easy way to start is to measure impact over the course of a month. How much paper does your business use, how often do your staff drive, how much is recycled, what is your electricity usage? Then determine where you can cut back. Something as simple as putting out a recycling bin or holding virtual instead of in-person meetings does make a difference.

<h2>9. Measure and improve</h2>While it may not make sense for smaller retailers to have a comprehensive, formalized sustainability program, it is important to develop internal guidelines, external sustainability values, and to measure impact. There are <a href="https://compareyourfootprint.com/measuring-key-kpis-sustainability-business/" rel="noopener noreferrer" target="_blank">several tools and services </a>that can help businesses track and report on the impact of their sustainability initiatives. Impact metrics can not only provide you with a compelling story to share with consumers, but it can make the case for further investments in environmental initiatives.&nbsp;<h2>10. Get certified</h2>“Greenwashing” is when companies claim to be environmentally friendly or sustainable, but don’t walk the talk. Demonstrating your business’s legitimacy as a sustainable company is vital to earning consumer trust and loyalty. Explore <a href="https://www.businessnewsdaily.com/10950-sustainability-certifications-guide.html" rel="noopener noreferrer" target="_blank">third-party certifications</a> like <a href="https://www.fairtradecertified.org/business" rel="noopener noreferrer" target="_blank">Fair Trade</a>, <a href="https://www.greenseal.org/" rel="noopener noreferrer" target="_blank">Green Seal</a>, <a href="https://fsc.org/en" rel="noopener noreferrer" target="_blank">Forest Stewardship Council</a>, <a href="https://www.epa.gov/smm/wastewise" rel="noopener noreferrer" target="_blank">Waste Wise,</a> or <a href="https://bcorporation.net/" rel="noopener noreferrer" target="_blank">B Corp</a>.

How is your business building a more sustainable future? Let us know at sales@afterpay.com.

Any business can take simple steps to reduce their environmental impact for generations to come.