Why Sustainability Matters In the Promotional Industry

July 5, 2024

The world is changing.

Companies large and small have pledged to act more sustainably. Chances are that you’ve heard about “ESG” recently, three letters which define many of the changes organizations are making. Those letters also underpin SanMar’s efforts, detailed in our 2023 Sustainability Report.

ESG stands for Environmental, Social, and Governance – the three non-financial factors that any organization must consider if they want to set goals that will make a difference for them and their customers. Each of these concepts is important in its own way.

A recent study from information agency Thomsen Reuters observes that ESG considerations are “increasingly essential for businesses to foster resilience and ensure long-term sustainability.” While the terms are sometimes used interchangeably, there is a difference between talking about the sustainability of an organization and referring to the ESG factors they consider. While ESG is a specific set of criteria, sustainability identifies a more holistic, long-term approach.

Put simply, ESG practices are a powerful tool to promote sustainable business and success in a rapidly-changing world. Let’s take a closer look at what each of those criteria mean for you.

Environmental Action: Good For the Planet & Your Business

Climate change can have a huge impact on your business, which is why understanding it is an important aspect of ESG. As with any intricate topic, there are dozens of jargon-y terms and acronyms. What exactly are PFAs? What does carbon neutral mean? How does a chain of custody factor in?

For our industry, ASI’s Sustainability From A to Z list provides a great starting point for learning more about unfamiliar terms and concepts. Once you understand how climate impacts your business, you can build strategies to improve your environmental footprint. As SanMar Chief Financial Officer Paul Whyatt says, investments like these “not only reduce our impact, but make good business sense.”

SanMar focuses on the planet as one of the three pillars of our sustainability efforts. We monitor our own emissions as well as those of the factories we work with, and we seek to reduce those emissions through our work with the Science-Based Targets initiative.

We also strive to reduce energy and water use, as well as waste. Additionally, we support circular product cycles through products like the RE Collection and the C-FREE line.

People: The Backbone of Every Business

The social aspect of ESG starts with people. But it has downstream effects on the supply chain and can be influenced by everything from local labor practices to global conflicts.

The Eco-Stylist, as a part of their mission to accelerate the transition to sustainable clothing, points out that even though some parts of the process of making clothing are automated, “there are human hands there to guide every step along the way.” From cotton farmers to factory workers, these are people working to support themselves, their families and their communities.

It can be a lot to consider when you’re looking at buying a new shirt.

At SanMar, a focus on people is the second of our sustainability pillars. As a part of this work, we:

Invest in our employees through a robust benefits program.
Give back to the communities in which we do business, such as the recently-completed addition to the Mhotivo School in Honduras.
Work to ensure fair labor practices in our factories.

Responsible Governance: Positive Follow-Through

Good governance means that organizations have adopted policies that enable sustainability and have oversight to make sure those policies are enacted properly.

This can include how executives are compensated, who makes up the board of directors and having a clear code of ethical business practices. Accountability and transparency in communications to customers and partners is also critical.

The IDEA Council is one way that SanMar approaches good governance. This group is chosen from employees across the company and helps to guide company-wide diversity and inclusion efforts. While this applies to the social aspect of ESG, one of the Council’s goals is to ensure that employee concerns are represented in the decision-making process and to communicate our progress to employees as well.

Our sustainability report itself also represents how we clearly communicate both our goals and our progress to customers and partners.

With this understanding of ESG in mind, let’s get back to the question: why does it matter to you? It comes down to two of the biggest aspects of your business — your customers and your employees.

Why Sustainability Matters To Customers

Customers are looking for a focus on sustainability.

Millennial and Gen Z customers are poised to take over in today’s marketplace, and they bring a greater focus on issues of sustainability and corporate responsibility.

Tracking that information down can take some work. You can make it easier — and position yourself as a go-to resource — by being clear about where your business stands on the issues consumers care about. Promote and celebrate your ESG initiatives in marketing communications, face-to-face conversations or through your social media channels.

Just be cautious to avoid greenwashing – don’t exaggerate your accomplishments and make sure you can back up any claim you make.

Having honest conversations with your customers is also important. By asking questions and understanding where their priorities lie, you show that you’re engaged and open to improving your business practices.

How Sustainability Impacts Your Workforce

Workers prefer to work for companies with a clear purpose

Prospective employees, especially Millennials and Gen Z job seekers, are looking to work for companies with a clear purpose. In a 2024 Deloitte study, nearly all of those surveyed believe that having a sense of purpose is important for job satisfaction, and almost half of them have turned down a job that doesn’t align with their values.

Your current employees are sure to have ideas on how your business can improve. Find out if they’re open to greener workplace policies such as reducing paper use or cleaner commuting options. Update your job listings to reflect newly enacted policies, and be sure that you hire from a diverse pool of candidates.

Being transparent with current and prospective employees tells them you’re invested in the things they care about – a winning strategy to attract and retain the best talent.

Sustainable Practices Help Future-Proof Your Business

While some of the big goals defined by ESG may seem abstract or distant, the truth is that every decision we make – which shirt to buy, which brand to support – has an impact. Educating and inspiring others to take a closer look at what they can do is one way even small actions can make a big difference.

The world is changing. Adopting sustainable practices matters because it empowers you to make changes that have a positive impact on your business, on the people you care about and on the future we all share.

This is how we create A Canvas for Good.

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