SINGAPORE: Selling clothes made with more sustainable materials and adding second-hand items to its platform are among the steps taken by online fashion retailer Zalora to reduce its impact on the environment.
The company wants to cut its carbon footprint and do its part to promote more sustainable consumption, chief executive officer Gunjan Soni told CNA.
It has set targets to achieve by 2030, such as using only sustainably sourced cotton for its own brands, having its fulfilment centres and offices fully powered by renewable electricity and achieving carbon neutrality in its operations and delivery.
It also has other goals, albeit not at 100 per cent, to use more eco-friendly materials and renewable energy in its own production, as well as tap zero- or low-emission methods for its last-mile deliveries.
“I have no qualms in saying that our industry is among the most polluting globally … given how we inherit two very strong industries – fashion and e-commerce – on that parameter,” said Ms Soni, who took the helm at Zalora in 2019.
“Therefore it is almost our obligation, as being one of the largest players in this space, to … come up with a pragmatic roadmap of how to address it.”
GO PUBLIC WITH GOALS TO BE ACCOUNTABLE: CEO
The company’s sustainability strategy, which was first announced in 2020, has seen the roll-out of two product ranges that use greener fabrics such as tencel, organic cotton and recycled polyester.
Other ranges under its own brands have also begun using recycled polyester. Overall, about 4 per cent of Zalora’s products incorporated sustainable materials as of last year.
The fashion e-tailer also curates and promotes products from other brands that meet its sustainability criteria through an Earth Edit range. Net merchandise value from this has grown 250 per cent since launching two years ago.
In a move to promote circular fashion, Zalora in 2020 introduced a second-hand category for customers to buy so-called “pre-loved luxury” products on its platform. This was expanded a year later, through a partnership with online luxury resale platform Reflaunt, to allow people to put their items up for sale.
This has created “different use cases for people to come on Zalora”, Ms Soni said.
“Originally, you would come only for purchases but now you can also come to sell past purchases … By creating that longevity of products, we think it’s a great way to enable the circular economy and continue to be relevant ourselves.”
At the same time, the company is working to reduce its environmental footprint by having energy-efficient lights in its warehouses and exploring the use of solar panels, cutting down on plastic packaging and experimenting with low-carbon last-mile delivery options in two markets.
These efforts are bearing fruit, Ms Soni said. Key achievements in 2021 include diverting 92 per cent of its warehouse waste away from landfills through recycling, and sourcing 88 per cent of its delivery and internal packaging from more sustainable materials.
Overall, the company managed to reduce its carbon intensity by 10 per cent in 2021 from a year ago, while achieving 100 per cent carbon neutrality on its operations and deliveries by purchasing carbon credits to offset its carbon emissions.
“We are making some very good progress in a short span of time, which makes me think that in 10 years’ time, there could be some real big differences,” said Ms Soni.
Zalora has been and intends to keep providing updates on its progress annually.
“I think one of the best ways of holding yourself accountable is to go public, so we decided to do that by following the global best practices on this topic,” the CEO added.
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