The worldwide pandemic lockdowns have resulted in less pollution, cleaner skies and a drop in CO2 emissions, stirring hope that nations and business concerns will see the potential and make deeper climate change commitments. The fear, however, is that companies will instead abandon sustainability commitments due to the financial pressures they currently feel and the uncertainty of the economy future.
In an early May Wall Street Journal article entitled, “Sustainability Was Corporate America’s Buzzword. This Crisis Changes That,” columnist John D. Stoll wrote, “Today, every occupant of every C-suite is trying to figure out what they’re willing to throw overboard as the economic storm spawned by the pandemic is swamping their ships. Businesses that were planning to help save the world are now simply saving themselves.”
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This withdrawal into survival mode is a move that some of the experts on the RetailWire BrainTrust see as a short-term necessity.
"Beggars cannot be choosers," wrote Kai Clarke, CEO of American Retail Consultants, in a recent RetailWire online discussion. "When a business has to choose between survival or minimizing its environmental impact, most companies cannot afford the luxury of going out of business. In the short term, this is what we should expect. Longer term, we can have different discussions and manage different expectations."
"2020 shifted our priorities," wrote Lisa Goller, content marketing strategist. "While consumers still care about sustainability, companies face urgent issues like health, safety and solvency. Single-use straws and bags take a back seat amid layoffs and bankruptcies. Yet, over the medium to long term, sustainability will make a comeback as the economy recovers."
Studies of the 2008 recession found an abrupt decline in public concern about climate change in the U.S. and Europe that was most likely driven by economic insecurity.
Some environmentalists find a pause, within limits, appropriate at this time to stabilize business. Emma Priestland, corporate campaign manager at Break Free From Plastic, told Adweek. “We’re looking at environmental performance over the long term. It isn’t about short-term initiatives that look nice and shiny in a press release.”
More ambitiously, Boston Consulting Group, Sustainable Apparel Coalition (SAC) and Higg Co. in late April jointly issued a study — “Weaving a Better Future: Rebuilding a More Sustainable Fashion Industry After COVID-19” — urging fashion companies to double-down on social and environmental commitments, despite COVID-19-related strains on resources.
For RetailWire BrainTrust members like Stephen Rector, president of Bakertown Consulting, continuing the commitment despite the circumstances makes sense.
"For retailers to pull back on their sustainability initiatives due to COVID-19 is not a smart move," wrote Mr. Rector. "I believe that there will be a positive push going forward for sustainability programs and the brands that push the farthest will be the winners."
The SAC report makes the case that collaborating with suppliers to reduce complexity and costs, elevating overall transparency, and demonstrating social responsibility will pay off with deeper trust from consumers and value chain partners alike.
“Early signals suggest that a global health crisis will increase overall consumer demand for products closely associated with trust, well-being, and the collective good — particularly in categories such as food and nutrition, but also in beauty and fashion, which are considered ‘close to the body’,” the study stated. “As consumers spend less money but more consciously, the expectation for sustainability, fair working conditions, and ethical action within supply chains will become absolute table stakes.”
The connection between the well-being of the environment and humanity’s shared future is one that BrainTrust member Dave Bruno, director of retail market insights at Aptos, saw as particularly important.
"While we all need to focus on business survival in the short-term, climate change is one of the risk factors for future pandemics," wrote Mr. Bruno. "We can’t afford to lose focus on this critical issue and, hopefully, consumers will push retailers to stay focused."
And even throughout the pandemic, as one BrainTrust member pointed out, environmentalism may not have been as much of a casualty as one might assume.
"While business will certainly be focused on saving itself, there have been many things the pandemic has taught us about how we can work without many of the practices that are bad for the environment," wrote Andrew Blatherwick, chairman emeritus at Relex Solutions. "People will probably travel less for business now as we have all become accustomed to using online calls. Many businesses will look to establish supply chains closer to home in part if not in total and many consumers have learned to live without the disposable fashion items they used to buy."
"This may not be labeled as an ecological strategy but will take business in that direction while business is saving itself at the same time," wrote Mr. Blatherwick.
