ACCOUNTABILITY, TRACEABILITY AND TRANSPARENCY
NANUSHKA RELEASES ITS FIRST SUSTAINABILITY REPORT WITH DELOITTE
Nanushka’s growing global success has enabled the brand to focus on and invest in sustainability more than ever before. The Budapest-based brand has experienced an impressive growth rate – going from a €1m business to a €28m one – and is recognised as one of the 1000 fastest-growing companies in Europe, according to The Financial Times 2020 list. As the company evolves, sustainability evolves with it, resulting in the commissioning of Nanushka’s first ever sustainability report.
“We feel it is our duty to be transparent with our customers about our operations, materials and processes. That’s part of the reason why we have commissioned this sustainability report. It enables us to share our beliefs, efforts and overall approach to sustainability with the public and to hold ourselves accountable going forward. Though 2020 has been a challenging year for business, we’re pleased to say that our sustainability efforts go on uninterrupted; in fact, they go on with increased vigour and determination.”
Peter Baldaszti, CEO and Sandra Sandor, Founder & Creative Director, Nanushka
Nanushka Founder and Creative Director, Sandra Sandor, has always had a deeply rooted intention to create a sustainable business. This intention has now taken a more strategic approach with the formation of the brand’s Sustainability Team, a more comprehensive sustainability strategy and a dedicated budget for sustainable initiatives in 2019. With a 360-degree approach, the brand focuses on the distinctive yet interrelated pillars of circularity, community and earth, while constantly improving its transparency both internally and externally. To make its journey transparent and progress measurable, Nanushka collaborated with Deloitte to measure its environmental and social impact across the supply chain for 2019, gathering data from its operations and local manufacturers in Hungary.
Nanushka continuously increased the certified sustainable materials within its collections and will continue to do so to reach its target of 100% sustainability by 2025. Current figures stand at 47% with menswear and 48% with womenswear, up from Spring/Summer 2020’s figures of 5% and 35% respectively. The extraction and production of fabrics accounts for the largest environmental impact; sourcing, therefore, is key. The Sustainability Team works in close collaboration with the design, development and sourcing departments to ensure that sustainability is now a deciding factor when it comes to the materials and production methods for each collection.
The company planted 4800 trees to offset its 2019 aviation air emissions, 500 of which were planted by team members in November 2020. The trees will also contribute to restoring the ecological value of a naturally degraded area in Northern Hungary. Measuring carbon emissions across the supply chain for 2019 has set Nanushka’s path for continuous action towards carbon reduction and offsetting across all Scopes.
Circularity is one of the key pillars in Nanushka’s sustainability strategy. The brand has been a member and participant of the Ellen MacArthur Make Fashion Circular program since 2018, partaking in the organisation’s workshops to set the rules for circular transformation. Alongside increasing the ratio of recycled materials, Nanushka made an inventory of its deadstock fabrics in order to support designers to do more with less in upcoming collections. This inventory also helps in donating lower deadstock fabric quantities for cultural and educational purposes, supporting the Green Theatre Movement in Hungary and various design schools. Other circular initiatives include: RePack, a returnable and reusable packaging option that has been offered as an online shipping option since 2020; a partnership with TheRealReal to lengthen product life cycles by supporting customers’ second-hand consignments; a professionalised repair and tailoring service across its retail locations; and rental programs through partnerships with RentTheRunway and an upcoming partnership with HURR launching in December. In its most recent pilot project, Nanushka has launched products with digital identities in collaboration with Eon, the leading connected products platform, to drive the digital transformation in the circular economy.
Nanushka’s social initiatives comprise creating a more transparent supply chain, supporting local communities and actively supporting the wellbeing and personal development of Nanushka team members. The brand developed a more comprehensive Code of Conduct and visited 83% of its manufacturers in 2019. In the same year, the brand created seasonal job opportunities in an economically challenged area of rural Hungary through the ongoing Noha x Nanushka collaboration, educating and equipping a small group of women to produce ceramic trims for seasonal collections. Although diversity and inclusion has been on Nanushka’s agenda, the Black Lives Matter movement prompted engagement on a deeper, more proactive level. With the launch of its Design for Life Mentorship Program in 2020, Nanushka aims to support young fashion talent from Black, Asian and minority ethnic communities by offering paid internships in the design department.
Although a milestone year, 2019 was only the beginning of Nanushka’s sustainability journey. The brand has committed to annual reporting, with an even richer scale of actions. Nanushka is striving to do better by the planet and its people with the hope to inspire brands and customers alike to build a sustainable future together.
Full report available upon request
AN EXPERIENCE IN EVERY GARMENT
NANUSHKA LAUNCHES CONNECTED FASHION POWERED
BY EON-TURNING GARMENTS INTO LIFELONG ASSETS
Nanushka is partnering with leading connected products platform, Eon, to turn selected sustainable garments from the Resort 2021 collection into intelligent and lifelong digital assets. Demonstrating Nanushka’s ongoing commitment to transparency, circularity and connecting with evolving customer needs, the partnership with Eon provides Nanushka the ability to to increase the lifetime value of customer, increase revenue from products, and track products from new to renew — to the benefit of the consumer, society and environment.
“We believe in the vision of a circular economy, and we recognise our responsibility as a brand to proactively take steps towards building a circular fashion system where products and materials are utilised at their most and where connected products enhance the user experience through an increased level of transparency. We partnered with Eon, who makes this step possible with their leading connected products technology shaping a better future of consumption and production.”
Sandra Sandor, Founder and Creative Director, Nanushka
When a customer purchases a Nanushka Connected Garment, they have access to a wealth of specific services and amenities. Simply scanning the garment’s QR code reveals styling insights, instructions for resale, sustainability credentials, services for rental, peer-to-peer sharing and more. This digitization of garments signals a positive change for the future of fashion – one where customers will no longer purchase just a physical product, but also the comprehensive digital services and information that come with it. It’s an opportunity for the customer to feel truly connected to the brand on deeper, more meaningful levels.
Eon is the leading Connected Products platform in the fashion industry. Powering the multi-faceted functionality for each Connected Product, Eon provides Nanushka with the tools to present a unique front-end customer experience, and the back-end tools to power new circular business models– giving brands visibility, intelligence, and control of their products across the lifecycle.
“Together, Nanushka and Eon are redefining what it means to connect with customers. Relationships with brands and customers have historically been entirely transactional – beginning and ending at point of sale. By introducing a vehicle for ongoing communication, service, sales, and sustainable care, Nanushka is pioneering the future of high-impact transformational relationships between brands and customers.”
Natasha Franck, Founder & CEO, Eon
This is just the beginning of Nansuhka’s ongoing commitment to strengthen the integrity of its circular value chain. By continuing to invest in and commit to digitizing products throughout 2021, Nanushka will next identify and authenticate products for resale, facilitating and benefiting from new business models and revenue generation.
Leveraging Eon’s CircularID™ Protocol, the Nanushka digitized products will similarly be connected to a broader network of circularity, enabling recycling partners to identify materials.