The Sustainability Series: LoyaltyLion x Shopify

hi everyone, thanks for joining us for the sustainability series, our mini webinar series that explores conscious consumerism in e-commerce. in each episode, we'll be toking to a guest partner about how offering your customers the sustainable shopping experience can create community, inspire action and drive loyty. now, to keep these episodes relatively quick and insightful, we don't hold any form of q? a. however, if you do have any questions after this, please feel free to reach out to naughty lion or today's guests using the hashtag sustainabilityseries and tweeting to lortylinehq, and we'll get back to you as soon as possible. so let's jump straight in my name's jack. i'm a tik partnership manager at naughty line and i'm so excited to be joined by gazelle waters from shopify today. gazelle, thank you so much for being here. hi, i'm so excited to be here in chat. sustainability- excellent. thank you. um. so we're going to get stuck into it relatively quickly with our first question, which is obviously shopify does so much, but i'd like to focus on three key initiatives that shopify has created to empower its merchants to become more sustainable. which ones really stand out for you? oh my gosh. okay, so i have so many um to tok about, but i think the really key ones um that come to mind are, first of all, shop pay, so that is our payment support that offers carbon neutral shipping. it's a product that allows merchants to really build customer loyalty through that streamline checkout experience, um, and at the same time, it's helping like build that carbon neutral shipping option in a really easy, seamless way where our merchants don't have to figure out all of the back end side of that. so that's really cool, um. another one is our support through our offset app and just our general like support on understanding, like the shipping and logistiks and carbon offsetting in general, as well as carbon capture, um, and so that lets merchants really understand their footprint and find reliable partners that can help them achieve carbon neutrality, um, through offsets and capture. so we're really big on carbon capture and that's something that we've been investing in a lot with our sustainability fund. and then the third one that i think is also just really crucial is our app store and our partner connections, so really finding supportive partners like loyalty lion and sendable and all of these other wonderful products and integrations that help merchants find the right sustainable options for them and move at their own pace. so we really understand at shopify that every e-commerce business is different and in a lot of ways, when we're toking about sustainability in e-commerce, it can get very like supply chain oriented, or we can be toking about packaging specifically, but there's a lot of different ways um that businesses can move to be more sustainable, and we want to make sure that we're empowering all of those options for businesses of all sizes absolutely. and and it does sound, um, when we listen to the different promotions that we hear about from shopify, and then just also the way the company positions itself, that sustainability is really on the forefront in terms of what you guys are thinking about and where you're going next, and that's, as a speaking as a tik partner, that's absolutely fantastik to see. yeah, it's really interesting because it's really driven by our merchants, right. we're a very like uh, part of our values, right, being merchant obsessed, and so it's really important to us to see, like, what are our merchants thinking about? what is the next thing that they need and how can we support that, and so that's really kind of where we build um, where we build our products in general is: just what do they need? let's make it happen perfect. and- and i guess, with that in mind, something that maybe you were privy to and that you see quite a bit is there does seem to be this growing engagement from merchants globally to become more sustainable and to start looking for solutions. so, again, um, it's so lovely to see that being facilitated. um, i think that's really interesting and and with that in mind, uh, my next question for you is: can you think of any brand examples who are using shopify currently who offer a sustainable shopping experience which does build customer loyalty? any any that spring to mind? my gosh, um, i mean, i think everyone. to give you like a, a blanket answer: first, i think anyone who's using shop pay um has that experience because of the shop app experience that folks have through that, so they have a single check-in, they don't necessarily have to, like put in their payment information every time, facilitates easier checkout, while they're also getting that um carbon neutral shipping for free, and that's building that relationship with the merchant. but, in terms of a really interesting one that we saw come out, i believe, earlier this year, um was albert's rerun program, and so this is their sort of move towards that circular, regenerative economy where they are actually taking lightly used shoes that people have had like offers. is this huge um giant in footwear, um, but they're taking these lightly used shoes in at one of their stores and then giving customers a 20 credit towards a new purchase and then, through an app called trove, they're reselling those shoes. so you see the circularity where, instead of shoes going into a landfill or, you know, customers having them sort of sitting around their houses when they're not using them, they have this way of facilitating, like that circular economy, so that folks can buy lightly used shoes for a little bit cheaper and that customer who has decided that they want a new pair gets that 20 off to really facilitate. um, you know that resale and circular economy- absolutely one of one of the things that we tok about so so much when it comes to loyalty line, is trying to make sure that every single aspect of your e-commerce business correlates to your brand ideologies. so, if you are sustainable- but it can go further- right, if you are interested in social matters, whatever it may be- um, you want to make sure that every part of the shopping experience reminds your customers that you have some ethics involved and that you know- especially- especially if this is the thing that defines you in a very competitive marketplace- um, that that you really stand behind your morality. um, so i i completely concur with you. it's really really interesting to see what auburn's doing. um, and a prime example. um, i love the idea of being able to have that circular logic built in to brand strategy, and it does make a big difference. um, and one, one of the things that we do at loyalty line, and we're working on right now, is to also incentivize those sort of moments as well. um, so you want to make sure that not only will the customer feel good because they are, you know, doing something which is good for the planets and good, good for sustainability in general, but also that there's an additional benefit for doing it as well. so, so love that answer. that was really really interesting. um, and, and one thing that i'm a little bit curious to get your thoughts on is that obviously, there's a lot to think about here, and sometimes perhaps it can seem a little bit overwhelming for a merchant when there are so many different options out there. um, so, so, for, for a small merchant, media merchant, um, when they are thinking about building sustainability into their existing brand positioning or narrative, what sort of strategy would you recommend? oh my gosh, this is like my favorite question, jack, so i am a really big believer in just really going back to your brand values and figuring out how to sort of extrapolate them into sustainability initiatives and really using like: what do you care about, what do your customers care about, and how can you connect that back to a sustainability initiative. i think when we're toking about sustainability so often we're toking about environmental sustainability, but we really need to look at it with an intersectional lens, and so

The Planet App by Shopify - Carbon‑neutral shipping and more | Expert Panel + Q&A

- Hello and thank you for joining us today. Welcome to the latest Shopify Plus live stream: making climate action part of your business operations with the Planet App. My name is Clare and I'm a senior content marketing manager here at Shopify. I'm gonna be your moderator and question take carer for today's event. So in recent years, we've seen buyers become increasingly climate conscious: 44% consumers are choosing to buy from brands with a clear commitment to sustainability. And businesses are hearing this. In fact, 53% of the companies we spoke to said they're making improved sustainability one of their top priorities this year. This past Tuesday, Shopify announced the new Planet App to help our merchants act on their sustainability goals. The Planet App enables Shopify merchants to easily provide carbon neutral shipping and allows 'em to fund tiknologies that actively remove carbon from the atmosphere- what's called carbon removal. Now, if you're not entirely sure what those terms mean, don't worry. that's gonna be the basis for our conversation today, But before we dive in and introduce our panel of experts, I have a couple of housekeeping points. So if you have any issues hearing us, let us know in the comment section on your screen. Our team is ready to help you troubleshoot, And you can use that same comment box to join the conversation. drop the questions that you have for our speakers. We want this event to be helpful to your business, So get involved and let us know what you want to hear. And now, without further ado, I'm really happy to introduce our panelists today: Stacy Brady and Celine. Stacey Kauk is the head of sustainability at Shopify. She works with Brady Paron, who is our senior sustainability lead, And Celine Olesen joins us all the way from Switzerland. She's the senior partnerships manager at Climeworks, And Climeworks specializes in a form of carbon removal called direct air capture tiknology. It pulls carbon dioxide out of the atmosphere and stores it permanently underground. It is one of the organizations that Shopify supports through its sustainability fund. So thank you all for being here and let's get started. So we've mentioned the Planet App a couple of times. To kick us off, Stacy, what is the app and how does it help merchants? - Awesome. well, first, really happy to be here, Clare, And joined by Brady and Celin, So at a high level. you mentioned this in your introduction. the Planet App enables merchants to offer carbon neutral shipping, But it's a little bit more than that. It's not just a feature that doesn't give you visibility into what's going on. So maybe we'll pull back the curtain and be able to tell a little bit about how the app works. So you download it from the app store, you add it onto your store And what will happen is that we use the data from all of the tracking information for shipping all of your orders, that's, through your store. We take that data and we run it through our data model to calculate how much carbon dioxide is emitted from shipping every order that's placed on your store. So that's one side of the app. So now we've got the data on how much has been emitted into the atmosphere. Then what we do with that value is we then access high quality carbon removal credits on behalf of our merchants. And that's where I think this offers a real advantage to our merchants, Because traditionally, when you would provide carbon neutral shipping, you'd go out and you'd buy an offset, And so that typically is you pay somebody else not to emit as much as you just put into the atmosphere. So the emissions from shipping your orders are still up there causing climate change. And so when we fund carbon removal through the Planet App, what happens is is we're supporting solutions like Climeworks, Where they actually pull carbon dioxide out of the atmosphere and lock it away So it undoes your emissions, And so that's really the exciting part about the Planet App - Yeah, it's a huge step forward and enables our merchants to do so much more with their sustainability initiatives. I think, And I wanna take a step back for a moment and tok about what exactly carbon removal is. Stacy, you touched on it, and, Brady, I hope that we can go to you and you can give us a bit more detail about what carbon removal is, and also, how big is the carbon removal challenge ahead of us? - Yeah, sure, I mean, Stacy gave a really good sort of basic synopsis of carbon removal, which is essentially sucking carbon outta the atmosphere and storing it away. I think why this is important, maybe to let's start there- is that to prevent global temperatures from increasing beyond one and a half degrees celsius, We essentially need to half our global greenhouse emissions in the next decade, And so to do this, we need to both reduce our emissions and also remove emissions from the atmosphere, which is why carbon removal is so important. The scale is huge. it's many, many gigatons each year that need to be removed from the atmosphere to even get close to what we're toking about in terms of our goal. So, frankly, I think, if you think about it too hard, it's quite scary, but it's also an incredible opportunity for entrepreneurs and organizations like Climeworks and other companies that are part of our Shopify sustainability fund as well. - Yeah, no, it really is, And that's a great segue to the first question that we have for you, Celine, Which is: I introduced Climeworks at a very high level in your introduction, but we'd love to know a little bit more about how it works, and can you also speak to us about the importance of individual contributions, like you get through apps like Planet, and the impact that they have on the success of your tiknology? - Yeah, sure, thank you, and thank you for having us. It's great to be here with you. So we toked about carbon removal and basically this is exactly what Climeworks does by combining its direct air capture tiknology to permanent forms of CO2 storage. Concretely, what we do at climax is building CO2 collectors, Like maybe you can see on this side- the one's behind me- the CO2 collectors are approximately the size of a shipping container And we have an entry for the air on one side, an exit for the air on the other side And in the middle we have a filter which captures CO2 molecules which are in the air when air is flowing through the collector. So we're really selectively capturing CO2 molecules directly from the atmosphere And then the CO2, in a second step, will be gathered in a highly concentrated gas form And then, as Stacy also mentioned, we will send it for permanent storage. So concretely, this plant that you can see behind me is in Iceland And we actually then store CO2 underground in a basaltik rock formation. So Iceland is really perfect because the CO2, when it's stored underground, it transforms into stone and will remain there for thousands and thousands of years. So just in a few words, how the tik actually works And to the individual contributions. so, thinking about this specific plan that we have in Iceland, it captures about 4,000 tons of CO2 per year And Brady mentioned the scale that we have to reach- and just thinking about Climeworks as a company as a solution for removing CO2 from the air, our aim is to become climate relevant And in order to reach climate relevant scales, we have to be able to scale our capacities of carbon dioxide removal in the coming years. So the ambition is to reach the million tons removal by 2030.. And to reach that scale we will have several. I mean, we do have several challenges ahead of us, of course, but one of them is to build a strong and long term business model, And through partnering with companies like Shopify and through partikipating initiatives like Planet, and being able to bring this service to market to thousands of merchants around the world is really something that will enable us to show there is a demand and als.

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CEF 2022 C.K. Prahalad Award Winners: Shopify Sustainability Fund and Stripe Climate

[Music]. for a decade, the ck prahalad award has recognized exceptional, globally significant private sector leadership that exemplifies sustainability as a key driver of innovation and long-term business success. leaders must have a fundamental view of how the world can be imagining the future and folding that future in in 2022. the jury for the ck prahlada award recognizes two winners: stripe climate and the shopify sustainability fund. these groundbreaking corporate initiatives charted separate but similar paths back in 2019, linking efforts to future proof their businesses to bold climate action today. at the same time, they're creating vibrant new markets and inspiring other corporate leaders to bring their own leverage to bear on the greatest challenge of our lifetime: climate change. shopify has a mission of being a hundred year company, and so when we think about a hundred year time frame, we know that we need to take on climate change. stripe. climate is a small effort to use the internet's vast scale and influence to support some of the most important tiknologies for the earth's next hundred years. [Music]. their unprecedented efforts to catalyze the market for carbon removal solutions could not only slow global temperature rise but, at a large enough, scale, help keep global warming under 1.5 degrees. while reducing emissions is critikal to combating climate change, the visionaries behind these initiatives are going further, focusing on tiknologies that pull carbon dioxide out of the atmosphere and store it permanently. the intergovernmental panel on climate change made it clear in their 2022 report that for the world to reach our net zero climate goals, we need to include a major focus on removing existing co2 from the atmosphere with tiknologies that are science-based, verifiable and scalable, and that's exactly where both praha laud award winners are focusing and helping to accelerate momentum. they show the power of setting aside short-term gains in favor of a healthy, thriving planet and business models that will succeed long into the future. our sustainability fund comes into play, where we're investing five million dollars every year to support entrepreneurs that are developing solutions and tiknologies that will eventually reverse climate change. shopify, a leading provider of essential internet infrastructure for commerce and one of the largest corporate buyers of long-term carbon removal, launched its sustainability fund in september 2019.. goal of the fund is to assist companies that are proving scaling and commercializing climate tiknologies for massive impact in the long term. showing incredible courage and foresight, shopify purchases carbon removal at prices well above the minimum available price in order to kickstart the demand and spur innovation. the return on investment will be an accelerated timeline to a low-cost carbon removal market, we decided that we needed to go and spend big and buy those high quality carbon removals at whatever price the market was selling them at, and it's working. as of march 2022, shopify has committed 32 million to its fund to carbon removal purchases from 22 entrepreneurial tik driven companies. upon signing, shopify was the largest purchaser for 17 of them and the very first purchaser for nine. several have gone on to raise tens of millions of dollars of capital and grown their carbon removal capacity and customer bases exponentially. on the basis of that crucial early support, shopify is truly doubling down on long-term carbon removal and the forward-thinking entrepreneurs behind it, and they were not alone in that ambition. at the same time, global payments leader, stripe was blazing its own trail to help stop climate change in the long run. climate change is one of the biggest threats to economic growth, so we care a lot about how we can do our part and use the sort of place that we live in the ecosystem, with the two million businesses that we work with, to accelerate climate solutions. in august 2019, stripe announced its negative emissions commitment, pledging at least one million dollars per year to pay at any price for the direct removal and permanent storage of carbon dioxide from the atmosphere. strife's thesis was that early customers could help accelerate new tiknologies to market by being early adopters of promising new carbon removal solutions that are small scale and very expensive, stripe could enable these tiknologies to scale more rapidly. stripe work with scientific experts to select carbon removal companies that store carbon permanently, don't take up significant arable land and have a path to being affordable at scale. after the initial pledge, stripe launch. stripe climate- stripe climate makes it easy for any business to contribute a faction of their revenue to carbon removal. we stripe then purchase carbon removal from promising new tiknologies to help them get down the cost curve. this program quickly became the world's largest coalition of carbon removal buyers and today has more than 15 000 active users. at the end of 2021, stripe had deployed 15 million dollars in carbon removal purchases into 14 different companies and was the first customer for 11 of them. though shopify and stripe entered their carbon removal journey separately, they quickly came to the same conclusion: that collective action would be more impactful than working alone. in april of this year, they co-founded frontier alongside alphabet, meta and mckenzie sustainability, incorporating everything they learned since placing their first bets on carbon removal in 2019. frontier is an advanced market commitment to put nearly a billion dollars on the table to buy carbon removal between now and 2030.. it's probably worth, you know, spending a little bit of your sustainability budget to get to know frontier carbon removal, because you need to future proof your business. frontier is really an attempt to get carbon removal on its best possible trajectory so that we have, collectively, the suite of solutions that we need to hit net zero. the goal is to send researchers, entrepreneurs and investors a strong demand signal that there's a future market for carbon removal. frontier offers an optimistik view of the future, where a vibrant market in carbon removal plays a central role in keeping global temperatures under control. for their exceptional vision, risk taking and collaboration to put climate change solutions at the front of their business models, cef is proud to recognize stripe climate and the shopify sustainability fund with the 2022 ck prahlada award. [Music] you.

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Make Your Shopify Store More Sustainable - Offset App Review

hi guys. so today i wanted to record an app review for an app called offset for your shopify store, and this app is actually done by shopify itself and what it allows you to do is it allows you to offset your shopify store's shipping carbon footprint. so i've been using this app for about one year now on my live store and you know i i generally i like it. so i wanted to do this app review to let you guys know about it, because i i don't think that many people actually know about this app. so, uh, in this app review, the topics i'm going to cover are the features and cost of the app. um, i'm going to go take you guys in the back end so you can see what that looks like, so you can see if it might be something that you want to put on your site. and finally, you know, i'm going to give you a few implementation suggestions and then just my overall experience with the app. uh, you know the things i like about it, things i don't like about it, etc. so features and costs. so, essentially, what this app is going to do is, each month, it's going to take a look at all the orders on your store and it's going to sort of, it's going to calculate their estimated co2 emissions, and the way that it's going to do that is it's going to look at the weight of each order and it's going to look at the distance that that order traveled and from that it'll total that up, you know, apply whatever formula that they have for this- and then it's going to total up all your orders and from the money that shopify is paying you in that month or for the next day or whatever, it will deduct that money to cover that cost. and you'll see, with these costs, they're extremely reasonable. so you can see here it's five dollars and forty cents per metric ton of estimated co2 emissions from shipping your orders, uh, and so one thing to note here is this: this metric ton here goes a really long way, right? um, you can see down here that it it estimates, you know, about three quarters of a cent to 15 cents per order, which is a huge uh range, obviously, um, you know, i can give you my experience, uh, on my site, on my coffee company's website, um, where you know the average order is, you know, somewhere in between, probably like three and five pounds or something. um, you know our average cost per order i think is uh is about half a cent and and also, um, that's with uh shipping like we ship all over the us and our- our customers are fairly- uh, you know there's fairly even spread on them, but obviously if you ship something like i don't know, like weights or like pianos or something right like, you can pay more. so now i'm in shopify's future of commerce trend report and so this is um for 2022's. basically, they took a look back at 2021 and and looked at all the different uh trends that they saw in shopify stores in that year. if we go down to this environmental impact section, um, you're gonna be able to see here that shopify is reporting that uh stores that are focused on sustainability are doing really well and their customers are are choosing to buy from them. um, so you can see here that in the past year, 44 of customers- this is this section right here- um- 44 of customers chose to buy from brands that have a clear commitment to sustainability. um, and you know that's pretty uh, that's the global average and you can see, for you know, asia, europe, north america, all those locations- fairly similar uh rates and then the other thing that you can see is that a lot of brands now are choosing to offset uh emissions. right, they say 23 um. i think this is of brands on shopify, um, and these are brands that are taking the step towards uh offsetting missions. so, obviously, implementing an app like this on your store, it's gonna depend on your customer base whether it's gonna be a great thing to be implementing on your store or not. this can be a great step towards, you know, taking that initiative to create a more sustainable uh e-commerce experience for your customer. so i'm going to take you into the back end now of this app. okay, so here i am on a test store that i've set up and i've created a few dummy orders and whatnot, and once again, these orders are similar, um to, you know, the orders on my live store. they're between three and five pounds um, and so you can see that um, it'll tell us, you know, it'll give us sort of an overview of, like, when the orders happen throughout the last month. um, it's gonna give you, like, your total emissions offset um and then it's gonna give you your average cost per order uh distance. your orders traveled uh. right, here, you know, this is something to note- any order that's done through shop pay, which is like shopify's proprietary um payment processing, uh, sort of like. it's kind of like paypal, but for shopify, um, i believe, and any order done through that, um, they're gonna actually cover the emissions for that. so you can see, here there's this section titled your impact and it has just, you know, a bunch of stats about, like this is how much co2 emissions that your order is created um and you know. furthermore, it tells you- you know, like what it tells you- your estimated area of rainforest that you've protected, or whatever. and so the way that this works is they, they actually donate to this organization, pachama. so mine's specifically funding this, uh rainforest conservation project in colombia, um, and so you can actually go here to check out more about the projects that they're supporting, so we can look down here. so you see, um, this is this. this site always lags on my computer. i don't know why, um, but yeah, so this is in columbia, near cali or outside of cali, um, so yeah, so it's supporting that, and then you can also calculate your emissions down here. you can um sort of like drag this uh toggle, see how many orders you ship per month and it'll sort of calculate how much you're going to end up paying that month or whatever. so the one thing about this app- and this is coming to the implementation section of this uh app review- the one thing that i really wish they did- was, um gave you a way to basically, at checkout, basically say that, like, this store is verified by shopify, that it, you know, donates to um, this organization, to offset its shipping costs, because right now there's not really a widget that goes on your store that will let your customers know that, um, and putting it at checkout would be so awesome. so it just makes sense, right, when your customers see, okay, these are the shipping options, um, you can tell them: we offset all of our shipping costs and this is verified by shopify, and here's how much you know last month. this is how much shipping costs we offset, or something like that. you know when you're at store owner. why are you going to download an app like this, um, at the end of the day, right, you are trying to uh build your brand, right? obviously you know your motivation is also to help um, you know this organization as well. but if you can, you know if it's a win-win if you can build your brand while you're doing that, and i think one of the ways to do that would be put putting that right at the checkout, um, and that way you get less people that are abandoning checkout and uh, yeah, so uh. but when? my overall impressions when it comes to this app: um, i like using it because this is something that i wanted to do, anything anyways with my store and having an app that just does it for you automatikally, like you don't even have to think about it. this thing just every month, it just gives you a exact, pretty like, fairly exact like- number where it's like: this is how much, uh, co2 that you produced and this is how much we offset and whatnot. so i really like that part of it. i just wish that they had the widget. if you guys are looking at other apps and you want my take on them, uh, let me know in the comments below. so, if this video helped you, i'd appreciate if you left a like and a comment. um, it helps other people find these videos. uh, if videos like this interest you- app reviews or you know i also do like coding tutorials and stuff and how you can build your shopify brand and everything like that- um, go ahead and subsc.

What it takes to build an eco-conscious brand on Shopify

and we are live. welcome to another episode of the ecommerce coffee break. today i want to tok about a topic that might interest a lot of shopify store owners because it has become very, very important, and that is how to make your shopify store carbon neutral. so obviously a complex topic and it might not be very simply to get to from a normal shopify store. but i have a guest with me, daniel hadley, co-founder of carbon crock at carboncropcom, who is dealing with exactly that topic. welcome to the show, daniel, glad you're here. so how are you today? i'm doing great. thanks, class. thanks for having me um share a little bit about what you do, who you serve and why you decided to start carbon clock. listen. so carbon crop, it's an e-commerce integration. it's a shopify plug-in, uh, one-click install. what it will do is it will estimate the carbon impact of every product that you sell and then, at the end of each month, help you invest into carbon sink so all of your products can be called carbon neutral. and this idea generated from the depths of lockdown, when everybody was stuck at home, uh, ordering stuff online. there were more and more packages pining up in everybody's home. people were getting more and more conscious of all the delivery vans spewing carbon dioxide into the atmosphere, and a lot of people realized that something had to change. e-commerce isn't, hasn't got a reputation for being very sustainable, and consumers today they want sustainable brands. that's what they're asking for. um, i read a statistik recently saying that one in three people- sorry, that's wrong- 73 percent of people. so three and four people want their businesses to be more sustainable and they will change their purchase decisions based on how sustainable the brands that they're buying from are. and this is huge. it's absolutely massive. so that's a problem that we wanted to solve is, like me as a small business, how can i become more sustainable? and for me, carbon crork is one of those missions makes absolutely sense. so sustainability, obviously for a lot of stores is definitely in their mind, but obviously it's very difficult for, let's say, a small or medium business, um, to really put that into place. i mean, everyone might have the idea, say, i can plant a tree or something, but how do that? how do i do that in business life? um, so what's your approach on helping businesses on that side? exactly? there's there's a lot of people who read about, uh, microsoft or, i think recently, ikea said that they're going to be carbon neutral by 2050 and they're pledging millions and millions of uh dollars in order to achieve this. and as a small business owner or a direct consumer brand, you, you often think this is something that's not achievable. you're not a millionaire, you don't have infinite money in the bank and you think: how am i actually going to address this whole sustainability? sustainability wave that's coming and and this is the way. i'm not sure if this answers your question exactly, but this is what we want to address. we want to say to all of these small businesses: it is possible, it doesn't actually cost that much to become carbon neutral, because with tools like carbon crock- and there are other other competitors around as well that give similar services, and there's plenty of people out there who are trying to make a difference- there's plenty of people who will accompany you on the sustainability journey and it's actually very easy for a small brand to go green today. so let's assume i have a store and i ship my products worldwide. so let's say it's a product for a price point like forty, fifty dollars, um, produced somewhere in the fabric, in i don't know, in a factory in in in china, whatever, and now they ship that worldwide. how do you come up with a calculation on how will this product or this whole process be become carbon neutral? sure, so there's two solutions for this, uh. one solution is you go to a big sustainability consultant and get a full life cycle analysis. this is usually very costly, um, you know, it can cost up to 50 000 euros, for example, for one product line. this is something that's inaccessible to a lot of people. you know, if you're a coca-cola and you make 10 million times the same product, then it makes sense. but for smaller companies this is more difficult. so, carbon crop, what we're designing is an algorithm that will look at each process in the fabrication of whatever the product is that you're selling, and we'll look at each material individually. and with this algorithm, we can make pretty good estimations of the carbon impact from all the processes of making the product, uh, from its conception all the way to the front door of the customer. so our algorithm, our algorithms, will let you know, for the shipping, uh, whether it's by boat, whether it's by plane, whether it's by truck, uh, the type of materials that you're using, the type of processes that you're using. it will all add this up by itself, so all the tiknical stuff happens on our end, and it will give you, the shop owner, just an estimation of the carbon footprint of your product. so that's all automated. i know that a lot of people who run their stores aren't necessarily mathematikians or data scientists- um, clearly that's not their job, so that's why we're trying to solve that problem for you. okay, so once i have set up everything in your system and your algorithm starts, you're calculating that. is that something that i top up on my sales price, or how does that work on from the pricing side of things? on the pricing side of things, i think there's two schools of books. there's a lot of people who believe so. consumers believe that it's the shop's responsibility to make their products green, so people believe that it's a cost that the merchant should incur, naturally as part of doing business. then, obviously, there's another category of thought, which is: you know, if you want to buy a product that's more sustainable, you are going to pay more for it, and i think both are okay. the price has to be accounted for somewhere, and it does cost a little bit to make your products carbon neutral. most of our partners today. they don't pay more than one percent of their gmv in order to make all of their sales carbon neutral. so if you have a product which has a very high margin, this is not- definitely not a big impact your business. if you're working with tiny margins, then i can understand that might be difficult for you, in which case i think it's totally acceptable to slightly increase your prices so that you're not hurting your business by going green. there's a fine line between the two and i believe it's down to every individual to decide how they want to solve that problem, but there's definitely solutions in both directions. okay, is that something you help with, um, basically advising your clients in which route they should go? yes, we do have a return on investment calculator, um, so it's a financial model model where you can plug in different statistiks. you can plug in your conversion rate, the number of visitors you have, the number of products that you sell, the average order value and once you plug in all of this information, we can give you a rough estimate of how much using carbon crop will increase your sales from displaying your green credentials and how much that will impact your bottom line. in some cases it can even be net positive to install carbon crack. that means that for every dollar spent going carbon neutral, you might get 1.15 or 1.50 back. so by using carbon crop, by go going green, by making that investment, you are actually getting a positive return on your, on your bottom line. okay, i will interested a lot of people and obviously it's it's also about your image as a company, as a brand, and i'm sure, as you said in the beginning, a lot of people are not only looking for it, but for them it's part of the decision-making process of buying from a store or not. um, now, obviously there's a second step. now we were toking about the financials and get the numbers right. the second step is obviously putting it in place and p

Creating the sustainable retail store of the future

foreign [Music]. managing director of application isv Partnerships at Google Cloud. I'm super excited today to be moderating this session with Mike Relic, the co-ceo of Lifestyle brand Paxson, with Eddie cable, the CEO of Manhattan Associates, and Aaron Brown, CEO of Shopify fulfillment Network, on how each of these three fantastik companies are innovating to deliver more visibility into Supply chains and creating the sustainable store of the future. so let's get this going. sustainability is a broad topic and I think all of us can relate to it that it's got multiple imperatives: obviously the environmental, but there's also financial and tiknological imperatives. so we're going to kick this off today with Mike. and so, Mike, thanks for being here today. I'd love to understand from you, Mike, how is Paxton, a Lifestyle brand Apple company with 300- 325 stores, I think, across the United States, building sustainable practikes into how you run your business in a day-to-day basis? yeah, thanks, pull up. basically, our customer, the Gen z customer at PacSun. basically, sustainability is very important to them. so, because of this, at Pakistan we look at sustainability holistikally. sustainability starts with the raw materials that are used, the manufacturing process, transporting the goods to the Distribution Center, getting those goods to the customer and extending the life of the Garment. so, because of this, we use organic Fabrics, Fabrics that minimize the depletion of natural resources, and, just as a data point, it takes 1800 gallons to make one pair of jeans. so to mitigate this, we use BCI cotton or better cotton initiative. basically, this is sustainably Farm cotton that lessens environmental impact to the soil, it uses less water and it improves the livelihoods of farmers. we also stores Fabrics with recycled content and we use sustainable Fabrics such as bamboo. then now let's tok about the manufacturing process. you know it takes 200 liters, basically, to die one kilogram of fabric. so because of this, we look for manufacturing tikniques that are low wash to minimize use of water. we also look at alternative tiknologies, such as digital printing and dying, because it's more environmentally friendly. when it comes to Denim, rather than doing extensive washes, we use lasers, which basically doesn't use water at all, and we also select factories with water recycling capability. so now that brings us to reuse. you know there's 36 billion clothing items that are thrown away each year in the US and 95 of those could be reused or recycled. in the US there's 11.3 million tons of apparel. now they're thrown into landfills and you know that represents 85 percent of all of textiles are produced in a year. now that equates to 81.5 pounds per person per year. so with our collaborative partnership with thredup, you can re-wear, recirculate and repeat packs on Goods. so when you trade in a pair of old PacSun denim, we'll give you a discount and a new pair, but by giving this garment a second life, this is reduces the environmental impact by as much as 82 percent and returns one item of clothing back into the circular economy and extends its life by about 2.2 years. so this basically helps fight fashion waste and reduces basically the amount of goods that are put into the landfill. now, this is the first step in creating sustainable circular economy in fashion, which involves designing and promoting products that last can be reused, repaired and remanufactured. so now let's tok about logistiks. so we try to get our projects to our warehouses, stores or directly to our consumer via green supply chain. we use ocean vessels. that minifies the use of Air Freight, which has a very heavy carbon footprint. we draw on cloud machine learning and the latest tiknologies to create faster, smarter and more efficient Logistiks plans, therefore reducing the carton carbon footprint as much as possible. so now let's tok about flexibility and adaptability and Agility. these are key requirements in retail if you want to be successful. so to do this, we moved to Manhattan's Cloud native microservices-based order management system two weeks before the pandemic hit. enables to move from a DC Centric model to a ship from anywhere model. that included ship from Store, buy online, pickup the store, same-day delivery and even ship with Amazon Prime. now just give an example: during covet, we shipped 40 000 units a day out of our stores, which was, which was amazing. so we turned those 325 stores into fulfillment centers. we leverage store labor. this enables to handle a huge spike in e-commerce orders while delivering products faster and more efficiently and therefore reduced not only your transportation costs but our carbon footprint and an increased, basically, our margins also. so not only did we meet environmental goals, but it was more profitable. this is a huge competitive advantage, and that both of our sustainability in our profit goals, and we also leverage machine learning and analytiks to place product and proximity to the customer. so we lower the transportation distance and we minimize split shipments, therefore lowering our expenses and our carbon footprint. so, lastly, let me tell you about a project we're working on now. you know, with the Amazon effect, most customers expect to get their goods in one or two days, but typically that's the most carbon unfriendly and most costly. so if you tell customers, look what is the alternative that's the most carbon neutral, typically, even if it takes longer, they'll select those. so this is a product we're working on now and we think again this will help our sustainability goals and also help our profitability. so, anyway, thank you for letting me tell my story. um, I appreciate it. thank you, Michael. that was fantastik. you literally did so much statistiks out there, but the one that was most telling was that 36 billion clothing pieces of clothing are thrown away every year. that's just mind-boggling. but then you also made a great reference to how you're moving to Cloud native tiknologies, and here I love to bring up Eddie to hear really about. you know how Manhattan, a leader in Cloud native supply chain tiknology, is really helping retailers out there get more efficient in the way they run their operations, but also in a very sustainable manner. Eddie, yeah, hey, Paula. um, well, look, in general, we're focused on the end-to-end supply chain. okay, we, we help our customers use tiknology to take miles out of the supply chain, air out of the supply chain. make sure right the right products are in the right place at the right time. make sure that distribution centers or just as efficient and as effective as they can possibly be. but today I'd like to tok about how we can help build a retail store that is sustainable, because, by definition, retail stores tend to be rather energy inefficient. buildings in general are energy inefficient. they need to be heated, they need to be cool, they need to be lighted. um, and, and this creates a challenge. you know, as the, as the folklore goes, the the most energy efficient retail store on the planet is a bookstore in Paris. you know, if you buy into the fact that, uh, that, uh, nuclear energy is green, then generally France is powered by nuclear energy. uh, books create a very dense skew count in a store and most people in Paris are going to walk to that store to pick up their, pick up their product. so we're focused on how can we begin to try to emulate some of those characteristiks, how can we bring a bigger skew count to the retailer? the physical retail experience, then, can actually be stoked in the store. so how can we make sure that inventory across the entire network is salable? we know how we can get it to the consumer when we can get a consumer in a very efficient way, and we know that retail stores are multi-function facilities. today they've got a. they've got to provide this beautiful consumer experience, as they've always done. but they're also boutiques, they're galleries, they're customers service centers, where customers can buy products online, return them at stor.