It’s time luxury took a lead on sustainability, says Sally Uren

11th January, 2012 by Sally Uren | 1 comments

Just showing off isn’t enough. Forum for the Future’s Deputy Chief Executive has new hopes for the world of high-end goods and experiences.

Sally Uren, Deputy Chief Executive at Forum for the FutureCan luxury be sustainable? Surely it’s an irrelevant question, given another record leap in levels of global carbon dioxide?

Think again. One of the biggest drivers of carbon emissions is consumption, and a key driver of consumption is the desire for social status. Right now, owning luxury products equals status for many people across the globe. And as entire economies lift themselves out of poverty and aspire to the lifestyles of the West, the demand for luxury goods and services is rocketing. Luxury may not make us healthier or happier, but at least we can show off.

Back to the question then. On the face of it, there’s nothing very sustainable about luxury. From cars (think urban 4x4s), to handbags (crocodile skin, anyone?), to spa experiences (high on energy and water), luxury can often be shorthand for excessive consumption.

On the other hand, luxury products are often built to last. That d"On the other hand, luxury products are often built to last."esigner handbag can have a long and fulfilling life, often adorning the arm of multiple owners. Many luxury brands, from Burberry to Jaguar, have been around for decades, and have helped sustain local economies and local jobs over that time. What’s left of the UK’s real economy actually has a big luxury flavour to it.

But, on balance, luxury isn’t very sustainable – yet. It could be, with values such as sound provenance, longevity, low-impact use and recyclability at its heart – as well as desirability. Imagine the beautiful garment, made from synthetic materials with zero embedded carbon and water; using state of the art zeroemissions technology, brought to market using smart logistics. It’s cherished for more than a season, then either freecycled or recycled… Or a sleek car, more like a Tesla than a humble Nissan Leaf (which boasts equally low emissions, but has zero sex appeal…).

The luxury sector, on the whole, has been immune to sustainability for too long. While it has been busy growing in emerging markets in particular, it has taken its eye off the big environmental and social trends that many other brands have taken on board. It’s high time for luxury brands to inject their high-growth business models with some of the best sustainability thinking from the fast-moving consumer goods world – the pioneering practice of retailers such as Marks & Spencer and manufacturers such as Unilever.

This would be a great step forward. But, if luxury goods and services are to have a role in a sustainable future, they have to deliver a wider social value. Simply perpetuating our wish to show off isn’t a long-term solution.

Sally Uren is Deputy Chief Executive at Forum for the Future.

@sallyuren

Photo: Jupiterimages / thinkstock

Featured in

No.83 - January 2012
Add your comment »

Comments

Julia Lawrence (not verified), 11 January 2012 - 11:41

Thanks for raising this important issue, Sally. Highlighting the "experiences" side of luxury consumption is particularly apt. Low impact services are of course possible - imagine spas associated with CHP and district heating, renewable energy and responsibly sourced products. However, most service companies are focussed on the quality of the service provided, and do not look at ways of providing the service sustainably, even though doing so could reduce their costs. Service industry waste can be extremely high - for example, in catering, it is normal to waste about 30% of the food purchased. Of course, this is true of all services, not just luxury.

It might be worth looking at a different angle on goods industries, however, because manufacturing industries are a little ahead of the services industries on sustainability. You rightly point to Unilever and M&S as leaders, and of course they sell many products at the luxury end of their ranges.

Arguably, the problems associated with sustainability of luxury brands are not necessarily rooted in the brands, but in the buyers. Lexus has a hybrid range. Many luxury food brands are organic and/or fair trade. I know of a luggage brand that is making sure its supply chain involves ethical and sustainable sourcing, even though they don't crow about it (yet). These firms are responding to a number of market pressures - current demand for sustainable goods, forecast future demand, and of course the increasing costs of producing goods unsustainably in the face of rising commodity prices.

The toughest problem lies with the consumer. The Lexus driver may drive a more fuel efficient car than their neighbour, but do more miles, carpool less often, and pay less attention to driving habits that influence fuel economy - just because they can afford to do so. They may waste more food, buy new luggage more often, and generally consume more, just because they can. Longevity of the good is irrelevant if it ends up in the bin because the owner isn't motivated to eBay it or give it away. Firms like P&G have in fact been working on this very problem, because they recognise that most of the emissions from their products occur in use, not in production.

Persuading luxury goods consumers to be less wasteful could have a tremendous impact on emissions from consumption, arguably much more than trying to reduce the impact of the brands they buy. Of course, all firms should be working to be more sustainable, but in terms of "where the money is", the big impacts on durables will come from behaviour.

Add your comment

The content of this field is kept private and will not be shown publicly.
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions. Case insensitive.
Image CAPTCHA
Enter the characters shown in the image.

Advert for subscriptions

Advertise block

Browse our archive

I read Green Futures from cover to cover (which I rarely do with magazines these days). It’s so full of inspiration and really thought-provoking stuff.

Lorna Howarth, Contributing Editor, Resurgence magazine