Sustainability and Philanthropy: Why you need both
The Difference between Sustainability and Philanthropy
And why you need both
There is a lot of buzz around sustainability nowadays – and rightfully so. You see it everywhere. Though people, companies, and communities may be using the terminology differently (reuse, sustainability, ESG, etc.), the values behind the words are the same. Creating sustainability relates to using what means we have to reduce our impact, reduce our waste, and create or assist systems for changes that make a lasting impact.
The implementation of sustainability has been most visible in the fashion industry. Historically, fashion has had a tradition of creating an inordinate amount of waste. In fact, an estimated 92 million tons of textile waste is created each year. For those like me that grew up in the 1980s, scouring Goodwill and other secondhand stores began the cycle of sustainability. Luckily, the fashion industry is finally starting to catch on to what consumers have known for years.
While the COVID-19 pandemic has strained the sustainability-based commitments of many fashion brands, it has also forced companies to accelerate their progress on sustainable initiatives in order to be competitive in a post-pandemic market where 77% of consumers are motivated to purchase from companies committed to creating a better world. "Over the last several years we have seen a much-needed shift toward more responsible business practices in the fashion industry. From encouraging behavioral shifts as the likes of Gucci, Valentino and Bottega Veneta are doing by bringing vintage goods into their own business models to brands like Stella McCartney (a leader in fashion sustainability) and Pangaia focused on new more responsible materials, to the many companies like Tommy Hilfiger adding buyback and resale programs to their models, says Kate Sheldon, CEO of Fashioneering LLC.
Thankfully, this progress now includes all areas of the production cycle from creation to supply chain, manufacturing, and distribution. “Customers love purchasing beautiful, new (to them) things, they also know the world is on fire. They want to do the former without contributing to the latter. Smart brands are understanding this," Sheldon continues. Brands such as Everlane, Rothy’s, and Patagonia are embracing the spirit of sustainability from every angle. “For us, it's not about sustaining status quo, but actually repairing systems and building a more livable future for all,” says Alex Dabagh, CEO of ANYBAG Inc.
Philanthropy, on the other hand, is sustainability’s older cousin – it’s been around a lot longer (centuries, in fact) but remains steadfast. Thanks to high-profile gifts from Mackenzie Scott and Laurene Powell Jobs, philanthropy is also having a moment. And yet, I see more and more communication about sustainability without the flipside of philanthropy.
With the recent exploding growth of sustainability, it is vital to incorporate philanthropy hand-in-hand with our efforts as the two complement each other. In fact, one without the other feels lopsided and causes a disconnect. But, why is it important to have both? These are our top reasons to include the values of both sustainability and philanthropy as you create a lasting impact.
If sustainability and philanthropy are detached from one another, companies may actually miss the chance to see where these two elements align, an opportunity that could lead to reinforcing their sustainability commitments through their philanthropic programs.
Sustainability is solidifying as a basic expectation as Americans in the post-pandemic world become increasingly interested in socially-conscious products in industries such as apparel, nutrition, and beauty. More than 87% of consumers support companies that advocate for issues they care about, and 64% of adults surveyed say that a company’s primary purpose should include ‘making the world better.’
Including sustainability in your philanthropy may actually lead to financial gains. Studies show that these socially-conscious companies had the highest growth in stock price over the past 20 years and have historically seen higher returns.
In a culture where employee retention is becoming increasingly difficult, it’s clear that incorporating sustainability and philanthropy into the company culture is a key to keeping employees engaged. Studies show that nearly 70% of employees say they wouldn’t work for a company without a strong purpose. Additionally, 93% percent of employees believe companies must lead with purpose.
For more on how sustainability and philanthropy can work together, take a look at the United Nations’ Sustainable Development Goals and listen to our podcast interview with Sensi Graves, the founder of Sensi Graves Swim– a sustainable swimwear line that empowers women to feel good in their bodies. If you’re in the beginning stages of incorporating philanthropy into your sustainability, feel free to reach out. We’d be happy to help answer your questions!