An industry Best Practice for sustainability with VAUDE
Transitioning to a circular economy represents a significant shift in how companies operate and create value. For business leaders, it is crucial to understand where and how to adapt their business models to facilitate this shift effectively. We have discussed the impact of circularity principles on business models in our article here (https://businessdesign.org/knowledge-base/sustainable-business-patterns). We now want to take a closer look at the identified four key areas and discuss with you the practical application, using the company VAUDE (www.vaude.com) as an industry leader in adopting sustainability and circularity practices.
Dominik Kaiser
Sustainability Expert
Danny Locher
Business Design Coach
I. Product Design and Development
Adaptation needed:
Products must be designed not only for use but also for a continued lifecycle, which includes reuse, repair, refurbishment, and recycling. This adaptation works particularly well in conjunction with the seamless integration of partners, which will be addressed second (II. Supply Chain and Partner Integration).
VAUDE's Approach:
VAUDE is committed to designing products with a sustainable lifecycle in mind. They focus on creating durable, high-quality outdoor gear that can be easily repaired and reused. VAUDE incorporates eco-friendly materials and designs products for easy disassembly, making recycling simpler at the end of a product’s life. They have launched a line of products labeled "Green Shape" which meets strict environmental standards throughout their lifecycle, from the raw materials used to the final product's recyclability. https://www.vaude.com/be/en/blog/post/green-shape-a-success-story.html
II. Supply Chain and Partner Integration
Adaptation needed:
Supply chains must evolve from linear to circular, emphasizing the return and reuse of materials rather than the disposal of waste. This is particularly a Herculean challenge in the textile industry.
VAUDE's Approach:
VAUDE has integrated circular principles into its supply chain by fostering close partnerships with suppliers through initiatives like the "VendorClub" or the "FairWear Foundation-Index". Over time, these “suppliers” have evolved into true partners. By promoting close partner integration and raising awareness, VAUDE is gradually making its supply chain more sustainable. Transparency serves as proof and plays a key role in this process. They have established partnerships with suppliers that prioritize environmentally friendly practices and materials. VAUDE also works closely with these partners to ensure that materials can be returned, reused, or recycled. One of the biggest challenges in the textile industry is recycling textiles back into textiles. Despite years of effort, significant gaps remain, such as the technology to recycle mixed-fiber fabrics, an effective collection and sorting infrastructure, and economic incentives for using recycled materials. Since 1994, VAUDE has been working on this, but a complete solution is still out of reach. For instance, they have implemented take-back systems for used products, which are then either refurbished or recycled into new products. This helps close the loop in their supply chain and significantly reduces waste.
https://csr-report.vaude.com/gri-en/product/material-policy.php
III. Business Process Integration
Adaptation needed:
Business processes must be re-engineered to support circular practices such as leasing, sharing, or selling refurbished products.
VAUDE's Approach:
VAUDE has innovatively adapted its business processes to support circular economy principles. They have introduced a rental service for their outdoor gear (VAUDE Rent), allowing customers to rent products for short-term use instead of buying them outright. This model supports sustainable consumption and reduces the overall production of new items. Additionally, VAUDE offers repair services for their products, “do it yourself” guides and sells refurbished items (VAUDE Second Hand), extending the life of their gear and keeping it in circulation longer. These initiatives reduce waste and promote a circular economy within their business operations.
https://csr-report.vaude.com/gri-en/vaude/circular-economy.php
IV. Customer Engagement and Marketing
Adaptation needed:
Shifting consumer perceptions to accept and value circular products, such as refurbished or remanufactured goods.
VAUDE's Approach:
VAUDE places a strong emphasis on educating and engaging customers about sustainability and the value of circular products. They use transparent communication strategies to inform customers about the environmental impact of their purchases and the benefits of choosing circular options. VAUDE promotes its take-back and repair services actively and offers incentives for customers to return used products. Their marketing campaigns highlight the quality and reliability of refurbished gear, helping to normalize the use of remanufactured products and shift consumer perceptions towards valuing sustainability.
https://csr-report.vaude.com/gri-en/product/never-ending-responsibility.php
V. VAUDEs sustainable and innovative business practices in a nutshell
By focusing on these key areas, VAUDE demonstrates how integrating circular economy principles can lead to more sustainable and innovative business practices. They are a leading example in the outdoor industry, showing how companies can create value while reducing their environmental footprint. They showcased that decoupling from economic growth and resource consumption is possible and decreased their CO2-consumption by 30% (2019 vs. 2023), while their turnover increased by 32% in the same period.
