In today's interconnected world, the notion of transparency has become a cornerstone of trust in both business and governance. These tools, presented in the Sustainability Hub, can help you with compliance.
Transparency, in essence, is the unwavering commitment to openness and honesty, ensuring that every facet of an organization is readily accessible to scrutiny. It embodies the integrity to disclose all relevant information, empowering consumers to make informed decisions.
But why does transparency matter really matter? Beyond the realm of ethics, transparency breeds a myriad of benefits for both businesses and consumers alike. It cultivates stronger relationships with customers, bolstering trust and loyalty. It ignites a sense of accountability within organizations, fostering employee engagement and enhancing reputation. Moreover, it fuels better decision-making, steering businesses towards more ecological and ethical responsibility. Last but not least, transparency and traceability are the foundation for complying with a variety of new legal requirements. In the Sustainability Hub at this year’s OutDoor by ISPO, you can connect to a number of exhibitors, who foster and facilitate the shifting landscape of consumer expectations, where one thing remains clear: transparency isn't just a virtue; it's a strategic imperative.
Vaude has been doing it, Decathlon a little longer, Patagonia even longer, Bergzeit and Globetrotter are also involved: second-hand or rather "preloved fashion" is also establishing itself in the outdoor and sporting goods market. But is it even worth it? We have summarized the most important sales and key figures, explain what the difference is to ebay and co. and name challenges and target groups. We also reveal who is already making considerable turnover with secondary sales. Let's go!
A clothing bargain at the flea market or an old blouse from Aunt Christine - selling or inheriting used clothing is probably as old as clothing itself. Online marketplaces such as ebay, founded in 1995, have made the exchange of goods even more convenient. However, second-hand clothing has only experienced a real commercial growth spurt since ecological awareness has reached the center of society. For a few years now, this has also given the second-hand market for outdoor and sporting goods a real boost.
Overall, Global Data estimates in a study for the second-hand marketplace ThredUp Global Data puts the forecast global sales volume for second-hand fashion at 350 billion dollars for 2028. In 2023, the market volume was 197 billion dollars. Growth is driven in particular by Gen Z, 71% of whom like to buy worn outfits, compared to just 63% of the population as a whole, according to the survey.
Zalando is also exploiting this potential. The marketplace has been the first European fashion platform to offer second-hand goods since 2020. Although Zalando does not reveal how much turnover the retailer makes with second-hand fashion when asked by ISPO.com, it is particularly the 18 to 29-year-olds who use the offer. Since 85 percent of Zalando customers exercise at least once a week, this is also an attractive category in the second-hand sector, according to the company.
Decathlon also benefits from this. In contrast to Zalando, the sports and outdoor giant from France is willing to provide information about its figures in this segment. In 2023, Decathlon Germany sold more than 64,000 used products via the Second Use service. According to Decathlon United the Group generated around 420 million euros globally in 2023 with circular business models (Second Life, Repair & Care, Buy Back, Rent).
Specialists in the sports and outdoor market have also followed suit on the retailer and brand side, for example Bergzeit. Project manager Jens Oellrich says: " Bergzeit RE-USE was launched on June 1, 2022, and sales of used outdoor clothing, equipment and footwear have currently increased fivefold [compared to three months after the launch, the editorial team]. We even expect to grow even faster in the coming months." Bergzeit currently has around 8,000 used items available in the store, "most of which come from private individuals (approx. 65%). Bergzeit returns and goods from manufacturers, such as sample items, complete the range," says Oellrich. He estimates the potential for the coming years to be high, as a young target group in particular is interested in used goods.
Vaude only recently entered the second-hand market. 500 items of clothing were on offer at the opening. "Clothing is by far our most popular and best-selling product category," says Robert Klauer, who is responsible for circular business development at Vaude. "It therefore makes sense to start with this, as we can offer relevant quantities here. In the next step, we also want to sell used products from the rental service. This mainly involves hardware such as tents, sleeping bags and sleeping mats." As with Bergzeit, the declared aim is to extend the life cycle of the products and establish a circular business model.
The outdoor brand Rab relies on sales at specialist retailers and only secondarily on D2C. The Second Stitch program, which has been in place in the UK since 2019, sells "repaired warranty products that we have refunded due to age or damage. Returns from retailers are also sold through Second Stitch, and we make new products/items from factory remnants," says PR & Communications Manager Europe Sarah Kampf. "The Second Stitch products offered in our factory outlet sell incredibly quickly, often on the same day they are laid out." In 2023, 568 individual items were sold in the UK.
Patagonia also has many years of experience with reselling, particularly in the USA. In Germany, there has been a pilot project in Berlin since 2022. In the USA, 33,015 kilograms of used clothing were sold in 2021, Patagonia employee Birgit Großmann told Sporting Goods Intelligence Europe.
In March 2024, the Patagonia team organized a pop-up store in Amsterdam for one day. The store only sold second-hand clothing that had been repaired by the United Repair Center Amsterdam. All proceeds from the day, more than 33,000 euros, were donated directly to four NGOs a in the Netherlands.
In addition to the brands and retailers mentioned, there are many other examples such as Maloja, which has set up a Preloved Corner in its stores, and Globetrotter. The outdoor specialist has been selling second-hand goods online and in stores since 2020.
One of the major differences between clothing sold directly between end customers and sales via brands or retailers is product control, preparation and care by the store. This also explains the higher price. Which brings us to the biggest challenges in the second-life game in the fashion industry.
But how much should used clothing cost? The process of determining the price is not that simple. The selling price of the first owner, the cost of reconditioning and the distribution costs have to be taken into account. The condition of the product must also be assessed. Second-hand service provider reverse.supply has developed its own software for this purpose. This takes into account the price at which the brand's products are sold on competitor platforms and how successful the sale is. Brand desirability is therefore a major factor in pricing.
In addition to pricing, the entire logistics is a complex process that is usually handled by a third-party provider. Vaude relies on WKS Textilveredelungs-GmbH. Among other things, it divides the products into three quality levels. Like Decathlon, Ortovox, Sport Scheck and Globetrotter, Bergzeit uses reverse.supply. According to Bergzeit, the service provider handles all "technical and operational processes in the background, such as price management, refurbishment, product data creation and fulfillment processes".
This means that, among other things, the refurbishment of the goods, photos, description, picking and storage are carried out by the service provider.
Of course there are lots of second-hand items. But good items from high-quality brands are still a scarce commodity. Mick Austermühle, Manager Central Europe Patagonia, explains that the main problem with reselling is the lack of goods. In the USA, vintage fashion pieces from the brand are sold out after just a few days.
Cam McGimpsey wants to solve this problem. He is co-founder of Birl. The company offers online stores and their customers the opportunity to return used clothing during the purchasing process and receive discounts on new purchases. Birl handles logistics and resale for the online store. The first customer for the SaaS start-up is British jacket supplier Lavenham.
Conclusion: In addition to the new habit of buying a used item of clothing from time to time, the habit of returning used clothing must also become established.
Halving CO₂ emissions every ten years is crucial for limiting global warming. Below we have listed tools that can be used to accelerate the corresponding measures.
While the Paris Agreement (1) aligns with scientific findings (2) and is theoretically feasible (3), there are disparities between science-based targets and national commitments. Industries must prioritize long-term goals over short-term politics to achieve net-zero emissions by mid-century, crucial for limiting global warming to below 2°C. Decarbonization models often struggle to capture transformative changes and dynamics associated with it: disruption, innovation, and nonlinear change in human behavior. To harness these dynamics to calibrate for short-term realpolitik, Johan Rockström and Owen Gaffney from the Stockholm Resilience Center, and a team of international scientists propose a "carbon law," halving CO₂ emissions every decade already starting as early as 2020. This heuristic approach is framing the decarbonization-challenge in terms of a global decadal roadmap- and it is strong because of a common global narrative. But overall, industries as well as civil society are lacking behind and still haven’t managed to reduce emissions overall. Check out these examples and service providers in the Sustainability Hub, who can help you on your path to Net-Zero.
REFERENCES AND NOTES
1. UNFCCC,ParisAgreement(2015).
2. H.J.Schellnhuber,S.Rahmstorf,R.Winkelmann,Nat.Clim. Chang. 6, 649 (2016).
3. J. Rogelj et al., Nat. Clim. Chang.
European legislation can be lengthy and compromises are often hard-fought. The EU Parliament has only just passed the Corporate Sustainability Due Diligence Directive (CSDDD or CS3D), the new directive for corporate due diligence - after many revisions and concessions. The method for CO2 accounting and its consequences are still being negotiated. So what do the various forms of the Green Deal mean for the sports and outdoor industry? An overview in two parts.
The European Green Deal which includes various laws and regulations, is intended to ensure that Europe becomes climate-neutral by 2050. At the conference changeNOW conference in Paris, KMPG's auditors presented the priorities for this systemic change towards a sustainable economy: Biodiversity, energy transition, adaptation to climate change, social inequality, protection of water resources. They are all part of the EU Climate Regulation.
All measures for ecological conversion, sustainable procurement and traceability contribute to this regulation, which will soon be legally binding in Europe. In France, the method for calculating the environmental impact, the Product Environmental Footprint (PEF), has now been officially presented. But which points are really important? And how do we implement the right measures?
Unlike luxury or ready-to-wear fashion, sports brands have to serve two different customer segments: On the one hand, top athletes, who need high-performance yet environmentally friendly equipment, and on the other, the general (sports) public, who provide the sales. This requires a customized upstream and downstream strategy. This is what forces the sports industry to produce strictly in accordance with the European Green Deal.
In March, all French MPs voted in favor of a legislative proposal aimed at "reducing the ecological footprint of the textile industry" in order to slow down the advance of low-cost and fast fashion. At the beginning of April, the French government announced that it had accepted the environmental labeling of textile products (PEF). It is to be introduced by 2025. The methodology is still in the consultation phase with brands and an implementing regulation is planned. These regulatory instruments are intended to increase transparency in the textile industry. The first brands want to present their results from fall 2024. Lagoped is the first French outdoor brand to have already published its "Ecoscore".
The proposal for a new regulation on ecodesign for sustainable products, the Ecodesign for Sustainable Products Regulation (ESPR), was published in March 2022. The regulation aims to significantly improve the circularity, energy efficiency and environmental sustainability of products in their design. It includes requirements for energy consumption and environmental protection as well as standards for the labeling of products to inform consumers. The regulation affects almost all categories of physical goods placed on the market in the EU. The information must be provided in a "reliable and easily understandable" way via a QR code or in a digital passport. At the heart of eco-design and environmental labeling are life cycle assessment (LCA) tools that accompany the measures.
According to Quantis™ and environmental expert Emilie Carasso, who is involved in the technical discussions with the European Commission, the manufacturers of LCA tools generally share their methods publicly for reasons of transparency. Companies can easily ask whether the tool complies with the Product Environmental Footprint Category Rules (PEFCR) or what deviations there may be. It is important to note that local methods for the environmental labeling of textiles, such as in France, may currently still deviate from the PEFCR. However, this situation could change when the ESPR delegated act for textiles is published.
At European level, the Product Environmental Footprint Category Rules are specific rules for assessing the environmental footprint of a product or product group throughout its life cycle. At this stage, PEFCR is not a methodology, but a proposal defined by the European Commission that provides detailed guidelines for data collection, environmental impact assessment methods and reporting of results. The PEFCR for apparel and footwear is currently in the development phase, with version 2.0 due to be published soon. The final European methodology to a final validation projection mid-2025.
Planning and preparation: According to Emilie Carasso, PEFCR Apparel & Footwear contain a wealth of information and methodological tools to steer companies in this direction. The impact of stock-outs is also an important aspect. Refining sales forecasts to adjust production volumes is crucial to reduce the industry's impact.
Key indicators of PEFCR: Reducing the use of toxic substances in production, carbon footprint and effective waste management of textiles are priorities. The goal is often to reduce one's own carbon footprint along the supply chain, including fiber production, transportation and distribution of the final products. This is followed by biodiversity and health as well as the protection of workers' rights in the producing countries, as these measures have many global implications.
All affected departments must synchronize at an early stage in order to maximize performance in data collection and analysis. Purchasing, sourcing, digital data management, sales and finance - everything must work hand in hand. A global focus on environmental labeling and product level governance is particularly important. The management of slow sellers is included at the level of individual products. This is because the proportion of unsold T-shirts is around 20 percent.
Corporate compliance also requires cooperation between departments and the cross-departmental use of services. The pooling of results and progress within the sector, as practiced by the European Outdoor GroupOutdoor Sport Valley, Eurosima in collaboration with SurfriderUnion Sport et Cycle or, in Asia, the Hong Kong Research Institute of Textiles and Apparel (HKRITA), makes a decisive contribution to the quality of data collection.
These upheavals lead to complexity and inconsistencies, depending on the size of the company or industry. Brands are required to position themselves in such a way that their plan is compatible with the Paris Agreement - an ambitious undertaking. Especially since for some protagonists, the number of tons of CO2 is not an absolute indicator that is the same in every industry.
Nevertheless, the changes bring structure and differentiation that we will need in the near future. The departments are talking to each other and working together on these issues. This breaks down silos and makes companies more resilient. This transformation requires a refocusing of investment and growth in circular economy solutions.
European rules are essential to harmonize measurement practices and promote informed decisions on sustainability. However, there are economic and legal nuances to consider that are critical to concretely improving social, climate and biological challenges.
In Part 2 we will take a closer look at the conditions of the Corporate Sustainability Reporting Directive (CSRD).
How hydrosystems work, water pollution, biodiversity, glacier melt ... Why should outdoor brands concern themselves with these topics? Quite simply, both the practice of many sports and the manufacture of outdoor sports equipment and textiles are not only dependent on water cycles, they also influence them.
In 2023, the sixth planetary boundary value for blue water, i.e. fresh water in lakes, rivers or glaciers, was exceeded. This means that the existence of glaciers worldwide is acutely endangered - with a corresponding impact on many winter sports regions. From 2025, however, something will change in Europe: due to mandatory environmental labelling for everyone, water data from brands and their suppliers must be calculated transparently. Fortunately, there are scientists, industrialists, athletes and explorers who are committed to the environment and are driving the measures forward.
Brands play a key role in informing people about the impact of their production methods and understanding the connection between different systems. At the same time, scientific evidence highlights the urgent need to address the risks of climate change. Melting ice caps and more frequent extreme weather events emphasize the importance of taking action to mitigate and adapt to climate change.
As early as 1975, polar researcher Paul Emile Victor warned of limited water resources with his "S EAU S" project. According to the Future Risks Report 2023 by the insurance company AXA™, climate change has been the number one risk for three years and only 13% of the experts surveyed believe that the public is fully aware of the effects of climate change. There is therefore a perception gap between the scientific community and the general public. To counteract this problem, the UNEP (United Nation Environment Program) offers and supports programs based on the 17 Sustainable Development Goals (SDGs).
According to a Quantis study the textile industry consumes an amount of fresh water equivalent to the volume of 86 million Olympic swimming pools every year, i.e. around 215,000 billion litres. Hydro engineer Charlène Descollonges explains: "Outdoor brands, like all textile industries, are heavily dependent on water resources, particularly in the production of raw materials, but also in processing - dilution, washing, heating, etc. - transportation and distribution. The brand Hoka brand, for example, has calculated a water footprint of 5,000 to 8,000 litres of water for a pair of trail running shoes. Textile production is very water-intensive and also requires land for the cultivation of cotton and other fibres."
The optimal response for the textile and outdoor sports industry would be a rigorous, cross-sector approach for the entire value chain. As well as providing tangible evidence of measurable impacts that can be presented to stakeholders. Public and private actors should continue to champion current global initiatives aimed at creating a framework that ensures access to reliable, robust, comparable and detailed data.
To accompany these steps and research, the non-profit organization China Water Risk (CWR), based in Hong Kong, advises brands on the water resources used and the environmental and social consequences. Their aim is to promote water sustainability and mitigate the risks associated with water scarcity or pollution. According to them, 4% of drinking water in China is used by the fashion industry. By 2030, the gap between water supply and demand is expected to be 40%. Based on international standards such as the IPCC report, CDP Water Disclosure or "The Science Based Targets Initiative" (SBTI), CWR carries out measurements at its suppliers as well as in its industry or during its production in Asia.
In addition, some labels or certifications fully incorporate the management and impact of water use into their assessment criteria. With Bcorp™, Bluesign™ or Fair Play For The Planet for example, this is the case. The latter is the very first environmentally friendly seal dedicated to sports clubs, venues and events. The FPFP label offers a holistic approach to tackling climate change and gives sports facilities the opportunity to improve their economic growth model while protecting the environment and people's well-being.
What happens if no action is taken? The result could be rising tensions over material and energy prices, including water, false messages to customers and a lack of understanding among the public. Ever stricter standards and conflicts with third parties are conceivable. The role of the associations, trade shows and NGOs concerned is also to contribute to agile, adaptable and scalable standards so that they can finance, organize and apply them to their entire value chain.
Charlène Descollonges: "People often put the cursor in the wrong place and imagine that eco-gestures are enough in times of drought. But we need an overall picture in order to take relevant and effective measures - both to stop the climate crisis and to slow down the water cycle. We have accelerated this through urbanization, intensive agriculture, canalization of rivers, deforestation or intensive timber cultivation."
In societies that pay little attention to this issue, there are also psycho-social risks and ecological fears that can slow down productivity and sales.
According to the European Union's CSRD Directive, companies with more than 500 employees and a turnover of 50 million euros must report on their sustainability activities more comprehensively and according to more uniform standards from this year onwards. The impact analysis will also include an assessment of the water resources used for production. The consequences of this water consumption - including pollution of the oceans, climate change or biodiversity - are part of the scopes for assessing the impact of the environment category. Thomas Buberl, CEO of AXA, writes in the Risk Report 2023: "The results of the survey draw the contours of a world in a polycrisis, where risks are now interconnected. Anticipating these risks helps us to protect ourselves from them and prepare for them more effectively so that the future does not pose a risk for us."
The water cycle inspires athletes, mountaineers, skiers and trail runners. This is exemplified by the film Aurora Riding North by Mathieu Crépel and Damien Castera, the brand ambassadors of Oxbow™ and Picture Organic™ respectively, who follow water from snowflake to wave. Outdoor athletes are directly connected to and involved in the preservation of the environment in which they practice their sport. International brand athletes are committing to ever stronger, science-backed decisions. "Outdoor sentinels" is the name chosen by the Lafuma™ brand to represent the community committed to protecting their adventure areas.
Picture Organic has surrounded itself with a strong family of ambassadors who are champions in snowboarding, skiing, mountain biking and surfing. Together with them, the brand funds and promotes documentaries to raise awareness and share stories of exploration and virtuous practices. In 2022, Cédric Gras and Matthieu Tordeur dedicated a film to the longest mountain glacier in the world, a forgotten glacier in Tajikistan: the Fedchenko. At Salomon, the Mountain Academy program raises awareness through experience. In the film "Will a ski resort without ski lifts change the sport?" shows a freer and less intrusive practice of skiing in the Hankin Evelyn area of British Columbia.
These works are intended to sensitize us to the fragility of the world. In the Pyrenees, the Vinhamala glacier will be one of the half of the mountain glaciers that will disappear in the next few decades. "Guardians of the Climate" is the title of the latest book by Dr. Heïdi Sevestre, a glaciologist, documentary filmmaker and researcher specializing in glaciers and polar research and a member of the Secretariat of the Arctic Monitoring and Assessment Programme. In her film "Heïdi's ice, en arctique avec une glaciologue", she observes the retreat of glaciers in the Arctic. With optimism and realism, she is committed to conveying warning messages to companies, institutions and the general public to engage them in an educational way. They are equally inspiring to develop the imagination internally and to convey messages to outdoor sports enthusiasts.
There are numerous associations that outdoor brands can partner with for education or to support scientific observations and research: Mountain Wilderness, Protect Our Winters, Fondation Eau, Neige ] Ice Cream, Water Family, Surfrider Foundation Europe, Under The Pole. When it comes to communication and marketing, it is crucial for a brand to anticipate its impact and leverage its content. For example, through a compelling narrative that connects the key offerings, the functional and emotional benefits, and the role of the brand with biodiversity and the users of the products. Presented in an appealing, authentic way.
If the polar regions are already severely affected, will we also see Europe's glaciers disappear? Outdoor brands face the major challenge of remaining desirable by innovating with less harmful products. The challenge is to preserve the playgrounds in order to benefit from our environment instead of depleting it. This is also the task of the regenerative company. After all, the mountains remain one of the few playgrounds where responsibility and freedom coexist, and that is the message of many explorers. The best response may be to advocate for greater transparency and develop rigorous cross-cutting standards, as demanded by public and private actors who maintain their commitment to ongoing global initiatives. To create a framework that ensures access to reliable, robust, comparable and detailed data while advocating for coherence between different standards and laws.