Koell Collins is passionate about promo and the planet. That surprises some people, says the owner of STBL Strategies (asi/300412) in Augusta, KS. “I’m in the Midwest, and a lot of people not focused on sustainability think all of our clients would be in California,” she remarks. “No, we all care about our planet and water.”
Collins, a promo veteran who left the industry for a few years to work in the signage and graphics space, launched her distributorship earlier this year with the express purpose of serving clients who need sustainability data upfront, with metrics that include everything from water usage and carbon footprint calculation to where and how a product was manufactured or sourced. “When we deal with mid- to larger-size clients, data is really king,” she says.
Indeed, many promo firms are witnessing a shift in the way end-buyers approach their environmental, social and governance (ESG) goals. “They don’t want us just to check a box and say we have sustainable products anymore,” says Kate Alavez, president of Los Angeles-based Counselor Top 40 distributor PromoShop (asi/300446). “The movement now is into a more comprehensive, metrics-based, quantifiable response that’s a lot more reflective of the changing landscape.”
Certification related to supply chain transparency is of particular importance to clients, says Liz Haesler, chief merchandising officer for New Kensington, PA-based Counselor Top 40 supplier PCNA (asi/66887) and a member of ASI’s Promo for the Planet editorial advisory board. That encompasses credentials like Global Recycled Standard (GRS), Global Organic Textile Standard (GOTS) and Forest Stewardship Council (FSC).
Clients also frequently inquire about B Corp status, Science Based Targets initiative (SBTi), EcoVadis standing and what it means to have a CarbonNeutral certification, says Victoria Sierra, compliance manager at Counselor Top 40 supplier Koozie Group (asi/40480), in Clearwater, FL.
“There are so many certifications available – literally hundreds out there right now,” Collins notes, adding that some have more value than others. What’s most important, she adds, is whether those sustainability certifications are third-party validated and if suppliers are willing to share a copy of their sustainability audit. For instance, she notes, 1% for the Planet giveback programs – where companies pledge to donate 1% of profits to environmentally focused nonprofits – are great, but sometimes suppliers only include one product line in the program, which makes it difficult to provide specific metrics for her own clients. Asks Collins: “If it’s just one set of 12 items out of the 498 they carry that are part of a 1% giveback, is that enough?”
Percentage Of Companies Who Have Been Asked About Verification Of Their Sustainability And Social Responsibility Practices
Percentage by Distributor Size
Social audits are also growing in importance. Joe Butler, technology and operations manager at Ads-Up Promotions (asi/522810) in Springville, UT, counts the University of Utah as a client. In addition to needing to become officially licensed as a vendor, Ads-Up was required to become a part of the Fair Labor Association’s (FLA) Collegiate Licensee Program. “At first, we just kind of had to support them,” Butler says of the program. “But more and more, they’re pushing us to work with suppliers that have social compliance programs and certifications.”
Collins, Alavez and other distributors say that many promo suppliers are stepping up to the challenge of providing sustainability metrics to meet client needs. But, Collins says, overall, there’s still not enough data being collected. And sometimes, even when the data exists, it’s hampered by a lack of standardization. “I don’t know if we’re always measuring apples to apples in terms of scope,” Alavez says.
For suppliers, it can be a struggle to stay aboveground amid the shifting sands of end-user requests. “Customers are asking for things that we don’t currently measure or have a way to measure yet,” Sierra says. “Another challenge we face is that sustainability trends don’t necessarily fade, but new ones are created faster than we’re able to keep current with.”
She notes that Koozie Group has been hard at work measuring its Scope 1 and 2 – as well as some Scope 3 – greenhouse gas emissions and is finally at a point where it can start setting carbon-reduction goals aligned with the SBTi. But in the midst of this hard work, the supplier is getting requests to do lifecycle analyses of particular products – measuring their footprint from cradle to grave. “The interest in these metrics is increasing at a fast pace,” Sierra says. “Now, our customers are driving a good portion of the conversation, and we’ll need to keep the pedal to the metal to stay at the forefront of this crucial part or our business strategy.”
Hover over the bar charts to see more detailed State of the Industry statistics.
Sustainability Snapshot
The largest industry companies are seeing the greatest demand for sustainable products.
While it’s true that sustainability is an industry-wide movement, the impact isn’t divided equally. The greatest demand for sustainable products and certifications is driven by the largest buyers (often Fortune 500 and multi-national corporations), and it’s impacting how the largest distributors and suppliers are doing business. For example, distributors with over $5 million in revenue are far more likely to say that clients are requesting more environmentally friendly products. In addition, the largest distributors and suppliers are either becoming B Corps or planning to pursue that certification at twice the rate of their smaller competitors. The hope is that this trickle-down effect is ushering the promo industry into a more sustainable future.
“I don’t think the emphasis on ESG is all financially motivated. I do think there’s a sincere concern for the planet.”Debbie Abergel, Nadel (asi/279600)
We Asked Suppliers:
“Did clients ask for more environmentally friendly products than the previous year?”
(Percentage that agreed)
We Asked Suppliers:
“Did clients ask for more socially responsible products than the previous year?”
(Percentage that agreed)
of distributors said clients asked for more socially responsible products in 2023. The figure was highest for distributors with revenue over $5M (43%).
“My Clients Asked For More Eco Products In '23”
(% Of Distributors Who Agree)
“Are You Already Or Are You Considering Becoming a B Corp?”