Photo: REI
REI lifts the sustainability bar
REI has introduced rigorous product sustainability standards that apply to each of the more than 1,000 brands sold at the co-op.
Addressing key environmental, social and animal welfare impacts, the standards stand out because they apply to most vendors and will eventually be mandatory.
Some of the requirements, such as establishing a code of conduct for supply chains, take effect immediately, while others need to be implemented by fall 2020. For example, by 2020, REI will no longer carry any sunscreens or sun-protection products made with oxybenzone, a chemical known to exacerbate bleaching in coral reefs.
Other requirements include restrictions on certain chemicals, including banning flame-retardant chemicals for tents, as well as ensuring wool or down products only come from humanely treated sheep and geese. REI includes a list of “preferred” attributes, such as earning bluesign, fair trade and Leather Working Group certifications.
Shaped by input from dozens of vendors of various sizes and across categories, REI in a statement said the standards are “feasible, address the most relevant topics and reflect best practices.”
REI will also list its preferred sustainability attributes for shoppers. Browsers on REI.com can shop by sustainability attribute, by searching for terms like “organic cotton” or “fair trade.” The retailer will highlight attributes with in-store signage and train associates to explain certifications.
Having certifications promoted to consumers is expected to further motivate vendors to invest in sustainability goals.
With Millennials and other younger generations looking to purchase from socially-conscious brands, REI’s reputation should receive a boost. But the standard will be available to other retailers to use and REI hopes others will follow.
Said Adam Siegel, SVP of research, innovation and sustainability for the Retail Industry Leaders Association (RILA), in the statement. “By going so broad with requirements for their suppliers and approaching this with such a spirit of collaboration, REI has not only moved their own operations forward, but they’ve raised the bar for the entire industry.”
Among the challenges, compliance may raise costs for vendors and that may affect smaller ones in particular. Making sure brands abide by the rules may be difficult as many work with sub-contractors overseas.
- REI Co-op introduces new standards to raise bar on sustainability across outdoor and retail industries – REI
- REI Product Sustainability Standards – REI
- Do you want to sell your products at REI? Then be kind to the planet – USA Today
- REI rolls out rigorous new sustainability standards for suppliers – The Seattle Times
- REI’s stringent new checklist to ensure every product it carries is sustainable – Quartz
Discussion Questions
DISCUSSION QUESTIONS: Is REI going too far with its sustainability requirements for vendors? Do you expect other retailers to embrace REI’s standards?
Poll
BrainTrust
Joanna Rutter
Marketing, Dor
Lyle Bunn (Ph.D. Hon)
Strategy Architect – Digital Place-based Media
This is more of a socio-political question than a retail question. I applaud REI and the few companies like them who have strong environmental values and stick to them. If every business in the U.S. were as conscious and self-regulating about such matters, we wouldn’t need an EPA. Regrettably, such is not the case. Oftentimes costs/profits trump the environment (you should pardon the expression).
I’d love more businesses to adhere to a triple-bottom-line model (People, Planet, Profit) and hold each other accountable, but like you say, often that last P comes before the other two.
Love the three P’s! The triple bottom line is something REI has had a keen focus for the company. From giving employees the day off after Thanksgiving (a bold move especially in this climate over the past few years), driving the charge on sustainability standards and setting up a co-op for a customer owned business model gives REI role model status.
The good news is that many students are learning about sustainability in coursework today and as they enter the workforce, the future of sustainable models will continue to improve. REI inspires the younger generation of leaders to “act more” and “do more” than generations before them in terms of our planet.
How is it “going too far” to be kind? How is it “going too far” to attempt to protect the humans’ habitat? To be clear, the planet will go on without this species — it’s about keeping it safe for the creatures that live here now.
How is this even a question? Do we prefer fouling the air and oceans and continuing to cut off the same branch we’re living on?
I HOPE other retailers will do so. I’d rather pay a few cents more for good karma products.
Thank you, yes! The fact that this is even a discussion has me utterly baffled.
REI takes pride in its brand and has an audience who respects them. Taking a harder line on sustainability requirements for vendors is excellent and makes a strong statement. They will lose some vendors who can’t make the grade, but that too is fine. Overall, customers will respect their policies, and I would expect other retailers to take a similar position once they see REI achieving success. Someone always has to be first to take a stand before others can follow. REI is smart to realize that is apparently fine taking the lead.
You can’t sell outdoor gear when there is no more outdoors! Holding suppliers to environmental and fair trade standards isn’t a retail trend. Pivoting like this is quite literally the only way that retail as an industry (or even a cultural concept) survives, to end current supply chain practices that are polluting the earth and exploiting labor. The fact that this idea could even be perceived as a radical or “alternative” business move is chilling to me. It’s the most mainstream move there is.
In our profit-driven, price conscious world REI is gambling its future on vendor sourcing standards. The cost of managing these and the promotional exposure of their not maintaining these or their being lied to is high. As in all such cases, the benefit is realized not in making policy declarations but in increasing the consumer awareness or perception of value realized through exercising these standards. Standards exist everywhere. The more narrowly these define sourcing options, the higher the cost of administering standards and the smaller the customer base.
This type of move is completely in line with REI’s ethos as a company. Certainly, some of the requirements might be difficult to attain, but REI will work with suppliers to raise standards. And the changes should also ultimately help to strengthen sales as they further differentiate REI from rivals.
All that said, REI’s success isn’t just down to sustainability or its ethical stance. It is also a very good merchant with excellent standards in everything from store displays to customer service. That, plus its social credentials, make it a hit!
On brand, on trend and right on the money for the planet – which happens to be pretty important to REI (and the rest of retail). A win-win-win. Standing ovation!
This is certainly on brand for REI, which is why it will be embraced by its outdoor-centric consumers and acceptably received by its vendors (because consumers of these brands will be looking for this type of initiative from the company regardless of distribution channel). I’m not certain this type of hard line will work for other genres of retail where the end-consumer isn’t already aligned to the mindset, though I sure do wish more would try!
No, not only is this not a bridge too far, it’s a perfect example of what I think all retail brands should be doing to endear themselves to, “the new consumer,” — late Millennials, Gen Zers and enlightened Boomers and Gen Xers — who are looking for REAL authenticity, a genuine economic commitment to values, and the building of ethical communities that unite buyers and sellers. Will other retailers follow? Most will want to. Some will try. But getting really serious about “walking your talk” requires a huge commitment on the part of management and — even then — is easier said than done because of the vast amount of supply chain research and management involved. But I believe REI is doing exactly what all retailers are going to increasingly have to do going forward. Is the retail world going to change into some kind of values-driven Eden? Not today. Maybe not five years from now. But in 20 years it will be a lot closer to what REI is proposing.
Completely in line with everything REI’s brand represents! We should applaud their decision to act and encourage other brands to do the same. From a business perspective, REI knows its customers’ values and is aligning to those values 100 percent with this approach. It’s a shame that this type of action is so newsworthy today, but these are the times we live in. Businesses beyond retailers should be equally encouraged to adopt this mentality — in the end, the planet doesn’t really need us, but we need it! Doing everything we can to sustain it is simply good business sense no matter how you look at it.
REI promotes a mission of sustainability to the public which has found a strong following. Selling brands that also adhere to that image is consistent with REI’s mission and will be popular with loyal REI shoppers. Not all retailers are committed to sustainability or believe that becoming sustainable will attract loyal consumers. Only those retailers that also promote a strong sustainability mission will follow.
This is bigger than just a sustainability play. Every retailer should have non-negotiable standards consistent with their own brand. The days of leaving this up to their resources and vendors are over.
I commend REI for their move, someone has to be a leader, a first mover — why not them? It’s great that they have a sincere vision for their business model. I really hope it works for them as there are a lot of good outcomes in this for all of us.
Product standards are meaningful step for sustainability. Often the focus is on the materials, such as organic cotton and oxybenzone.
Another step in the right direction is supply chain sustainability. This encourages low emissions vehicles for ground distribution, route optimization for shipping that favors rail over air, and smart packaging with more recyclable materials among other principles. I am delighted this question was asked, and that we are having this discussion.
To REI’s credit, it has relocated to the Spring District in Bellevue, WA, where a light rail stop is being opened to reduce traffic congestion. As a “neighbor,” who lives and works in Bellevue, I see this is not only convenient, not only serving the cause of lower emissions, but also another laudable example of REI’s ethos.
More retailers, and ALL of us, should be “going too [this] far! Brands and retailers need to actively stand for a meaningful purpose and grasp social responsibility. Not only is the right thing to do but it’s also expected by Millennial and Gen Z shoppers.
The move is perfectly aligned with REI’s brand identity and will likely foster both stronger loyalty from existing customers as well as bring new customers who align with the brand’s identity. It was actually a necessary move if they are to retain and strengthen their brand identity as a leader in this movement for sustainable practices. The exciting thing is that this will likely lead to other retailers following the lead where economically viable and where it is helpful for telling a story to their customers.
Even for those retailers whose brand identity does not rely on being seen as leading the sustainability movement, they will benefit when they can financially afford to go along with the trend. However, if a retailer’s brand identity is not authentically a part of this movement, participating will have no value in keeping or gaining customers, and would only raise their cost burden. Only authenticity works today.
When retailers stand for a cause, it can bolster loyalty. Merchandise may be priced competitively, but the loyal “cause focused” consumer may be willing to pay a little more. If the cause results in higher prices, the retailer may lose some of those general consumers. I like what REI stands for (always have), and they are pretty darn smart when it comes to understanding their customers. Looking forward to seeing how this shakes out.