In a recent webinar hosted by CommonShare, an innovative protocol facilitating sustainable and resilient supply chains, the company introduced its new Sustainable Brand Benchmark®. This comprehensive tool aims to bring credibility and authenticity to the market, empowering brands and retailers to navigate sustainability regulations and effectively engage conscious consumers. This article provides a concise overview of the webinar, shedding light on the key points discussed and the implications for the industry.
Background and Objectives of CommonShare
Since its establishment in 2019, CommonShare has dedicated the past three years to categorizing and normalizing sustainability data. Bolstered by a team of 30 employees and a growing advisory board consisting of venture capitalists, foundations, and sustainability-focused organizations, the organization has made substantial progress in advancing sustainable development goals. Its primary objective is to address the challenges faced by brands and retailers in complying with complex sustainability regulations while meeting the evolving expectations of conscious consumers.
The Evolution of Sustainability and Consumer Demand
Martin Smith, founder of CommonShare, emphasized the noteworthy shift in consumer perception of sustainability over the past two decades. While sustainability initiatives were initially met with skepticism, a significant portion of consumers now actively seek out sustainable products and are even willing to pay a premium for them. This paradigm shift has forced brands and retailers to move beyond superficial marketing tactics and embrace authentic sustainability practices. Furthermore, as regulatory frameworks become more stringent, companies face the intricate task of integrating sustainable procurement policies, ensuring transparent communication, and leveraging sustainability investments to drive profitability.
Introducing the Sustainable Brand Benchmark®
The centerpiece of CommonShare's initiative, the Sustainable Brand Benchmark®, presents a comprehensive tool for assessing brand performance and facilitating comparison with industry peers. By evaluating sustainability measures, procurement practices, traceability efforts, and digital engagement strategies, the benchmark fosters healthy competition among brands, incentivizing them to adopt and champion sustainable practices. Although initially focused on the apparel industry, the benchmark evaluates companies based on five critical dimensions: credibility, relevance, commitment, performance, and improvement.
Dimensions of the Sustainable Brand Benchmark
Credibility: Recognizing the significance of third-party certifications in establishing trust, Common Share encourages brands to seek recognized certifications and provide transparent proof of certification at both the product and facility levels. Embracing third-party certifications and implementing digital audit trails enables effective communication and fosters trust among conscious consumers.
Relevance: To account for varying company sizes, the benchmark considers a brand's annual revenue relative to industry peers. While normalization of revenue may inherently favor larger companies, Common Share acknowledges that smaller organizations can excel by demonstrating unwavering commitment and notable improvement in sustainability practices.
Commitment: Publicly declaring and demonstrating a commitment to sustainability through tangible statements, policies, and goals is vital. Brands are encouraged to transparently communicate their sustainable procurement commitments to consumers and stakeholders. Common Share's platform allows brands to upload and verify their certificates, thereby enhancing their rating and bolstering their credibility.
Performance: The benchmark evaluates brands' performance across sustainable procurement, traceability efforts, and digital engagement. Challenges arise from data gaps and limited accessibility to relevant information, but Common Share's team of data scientists is diligently working to improve data collection and verification processes.
Improvement: Continuous improvement is indispensable for brands seeking to enhance their sustainability practices. Common Share provides tailored recommendations and ongoing support, enabling brands to align with evolving sustainability standards and meet the ever-growing expectations of conscious consumers.
Conclusion and Next Steps
The CommonShare webinar serves as a platform to emphasize the company's unwavering commitment to driving sustainable practices and fostering authenticity in the industry. The introduction of the Sustainable Brand Benchmark® equips brands and retailers with a comprehensive tool to evaluate their sustainability performance and propel continual improvement. By leveraging reputable third-party certifications, embracing transparency, and relying on CommonShare's robust infrastructure, brands can effectively meet the demands of conscious consumers and contribute to mainstreaming sustainable procurement and consumption.
As the benchmark continues to evolve and expand, it holds significant potential to shape industry norms and inspire widespread sustainability adoption across sectors beyond apparel.