The "What?" surrounding the topic of sustainability is almost a moot question these days. Because what should be sustainable? Ideally, everything! Therefore, today entrepreneurs and decision-makers are more concerned with how existing processes can be structured more sustainably and plan environmental awareness directly when tackling something new – be it a product, or a new process. But how to shed the burdens of existing processes, and find new means and ways, is hard to identify. It's like looking for a needle in a haystack. How sustainability is integrated into existing processes and possibly even fulfills one or another customer wish is explained by Artjom Bruch, CEO of Trusted Returns.

Sustainability must be thought of holistically

For the majority of consumers, ESG criteria are decisive in their purchasing decisions. This involves demonstrating corporate responsibility through concrete actions in terms of sustainability (Environmental), diversity, and the well-being of their own employees (Social), and oversight mechanisms (Governmental). At least in theory, every company is aware of this shift in values today. But in practice, this has only been partially or distortedly received by decision-makers. According to the Consumption and Media Analysis (VuMA, 2021), more than half of all Germans surveyed consider socially and environmentally responsible corporate actions important.

Many companies fall into the trap of thinking they only need to focus on sustainability in the product itself. They acquire environmental certification, use recycled materials, or otherwise signal commitment to the environment. But consumers want to see that a company's values align with their own. They recognize this much less in the product itself than in everything around it. Because even if the product meets all the criteria, all this is nullified if the production location is in a country without labor laws, the company headquarters is in a tax haven, and the solution to minor flaws is categorically triple the shipping route – shipment, return, and then reshipment of the replacement. Today, consumers know that with the "What?" – i.e., the product or service – the economic interests of a company have the last word. But with the question of how companies and retailers design their processes, consumers today want to see more than just economic interests.

Transparency creates trust

However, companies and retailers should not stubbornly stick to established processes and should instead focus more on transparency. Because there is now more mistrust among consumers: In the Returns Report 2023 from Trusted Returns, just under a third of respondents (30%) do not trust the information about the returns process from retailers and online shops. And more than two-thirds (69%) wish for more transparency in the return shipping process.

Companies and retailers should be aware that this creates room for action. Because the processes of their own business are often also interfaces with the customer. The new #umdenkbar campaign from REWE is a good example here: The retail chain changes the way it communicates offers to its customers – namely only digitally and discontinues the paper brochure. This results in both raw material savings and a significant reduction of the CO2 footprint. This effectively demonstrates to customers the importance of sustainability in the corporation. Other interfaces with the customer than a brochure, which can also tip the scales of sustainability, are for example goods returns. According to a Bitkom study from 2022, 70 percent of the surveyed online shoppers try to cause as few returns as possible in the interest of sustainability.

Returns as an important lever of sustainability

From a corporate perspective, returns management would also be a sensible starting point for better environmental practices, as returns and refunds are often the only options offered to customers when there is a problem with the delivered products: Whether it's a burst seam, or a completely different product arrives than ordered. An opportunity for customer contact is wasted, and the lack of individual solution offers is negatively noticed by customers – especially when they are already trying to send back as little as possible. If instances like brochures are rethinkable, so is the insert in goods shipment. This is particularly aptly summarized by a quote from Babymarkt.de, which uses the service platform of Trusted Returns: "With a low return rate of about 10%, previously 90% of the return slips ended up in the trash. Without inserts, we save over 2.5 million sheets of paper annually. In addition, more than 50 printers at the packing tables are eliminated, and of course their fine dust emissions."

If companies seize the opportunity to redesign their own processes like return shipping – even if they work flawlessly – they credibly demonstrate to consumers that this change is happening voluntarily and not just out of compulsion. And that is exactly what today's consumer wants: To remain loyal to a company.