What are the sustainability criteria to continue selling on Zalando?

Lately we have often heard about the "EU strategy for sustainable and circular Textiles" that is a strategy that seeks to outline the transition path towards the sustainability of the textile and fashion sector, scheduling the measures that will have to be implemented.

In particular, by 2030, textile products placed on the European market will have to be durable and recyclable, made largely of recycled fibers, free of dangerous substances and produced in compliance with social and environmental rights.

With this Strategy, therefore, the European Commission sets itself the objective of improving the sustainability of the textile and fashion sector, reducing to a minimum the incineration and landfill of fabrics.

However, new strategies and regulations at EU level are not the only elements requiring fashion companies to review their production. Several ecommerces, for example, are setting increasingly stringent sustainability criteria for brands and partners who intend to continue selling on platforms.

In a previous article we analyzed the optional requirements for obtaining the Zalando Sustainability Flag. Instead, this article aims to delve into the mandatory sustainability criteria for companies that want to continue selling on the platform. These will likely soon be joined by others: Zalando has just presented the new Circularity Design Criteria, with the aim of extending the useful life of 50 million fashion products by 2023. The criteria have been initially tested on their own labels and the business plan plans to present them to the brand partners in the coming months.

Selling on Zalando: the sustainability criteria that partners and brands must meet

Zalando has set itself the goal of becoming a sustainable fashion platform, as is evident from the do.MORE.

Most of the sustainable development commitments undertaken by e-commerce involve its partners. Zalando, in fact, has established several mandatory sustainability criteria for companies that intend to continue selling on the platform.

The minimum requirements refer to compliance with the following guidelines and policies:

• Code of Conduct;
• Code of Ethics;
• Sustainable Sourcing Policy;
• Animal Welfare Policy;
• Product & Content Guidelines;
• Restricted Substances List.

Let’s analyze them together by deepening the contents in the following paragraphs.

The Sustainable Sourcing Policy of Zalando

As with the Code of Conduct, the Sustainable Sourcing Policy applies to all Zalando partners, to ensure that goods bought and sold have been produced ethically, safely and environmentally friendly. The policy, in addition to listing requirements to be met now, also indicates the objectives for 2023, which are even more stringent requirements for brands that want to continue selling on the platform.

In particular, several minimum sustainability criteria are provided for:

• Production processes: all products must comply with EU REACH regulations and all applicable standards set by international markets. Trade partners must comply with the Zalando Restricted Substances List and aim to reduce environmental impacts where possible. The use of sandblasting is also not allowed. By 2023, however, companies should demonstrate their progress through the adoption of the Higg FEM tool along their supply chain;
• Cotton fibres: cotton cannot come from countries at high risk of forced labor. (Uzbekistan, Turkmenistan or the Xinjiang region in China). By 2023 at least 50% of cotton (by volume) should come from sustainable sources, through participation in globally recognised certification programmes as defined, for example, by the CottonUP Guide;
• Synthetic fibres: Trading partners should aim to increase the amount of renewable or recycled material wherever possible. By 2023, trade partners should set public targets for the supply of renewable or recycled synthetic fibres;
• Forest materials and fibres: Trading partners must demonstrate progress in eliminating high-risk suppliers of man-made cellulosic fibers (MMCF) from sourcing from endangered forests (as indicated in the Hot Button Report). Furthermore, the sale of products based on species listed on IUCN and CITES is not allowed. By 2023, wood, paper, cork and rubber should be 100% certified, recycled or otherwise sourced from sustainable sources (e.g. FSC, PEFC, RCS, GRS, etc.) and 100% of cellulose fibres should come from suppliers with more than 20 points in the Hot Button Report.
• Animal Materials: Partners must comply with the Zalando Animal Welfare Policy (detailed in the next paragraph). The use of animal fur is not allowed and materials of animal origin can only come from waste from the food industry and materials from wild animals (for example from species listed on IUCN and CITES) are not allowed. Trade partners must also develop a robust traceability system to provide the name of the species and its country of origin. By 2023, however, partners should make public commitments to more sustainable leather procurement, have at least 50% of leather from LWG tanneries or other equivalent standards and have 100% recycled feather or from responsible sources;
• Plastics: Business partners should invest in increasing the percentage of recycled or recyclable plastic used in products, wherever possible. By 2023, polyvinyl chloride (PVC) will also have to be replaced in all products for which alternatives are possible (e.g. polyurethane);
• Jewellery: Partners selling metals and precious stones must have a responsible mining chain, in accordance with the Responsible Jewellery Council. By 2023, business partners should set public targets on the use of recycled or responsible materials and comply with the Kimberley Process Certification Scheme and the World Diamond Council’s System of Warranties;
• Electronics: All electronic products must comply with the Restriction of Hazardous Substances in Electrical and Electronic Equipment (RoHS) Directive. Business partners must also have a responsible mining chain. By 2023, trading partners should set public targets on the use of recycled or responsible materials and demonstrate the traceability of all raw materials used in electronic products (for example tungsten, gold and cobalt);
• Beauty products: all beauty products must comply with Regulation (EC) 1223/2009. In addition, no beauty products can be tested on animals and the use of solid microplastics (>5 mm), bee venom, snake venom and coral extract is not allowed. By 2023, however, trade partners should set public targets for sourcing materials from sustainable sources.

The Zalando Animal Welfare Policy

Zalando’s Animal Welfare Policy includes a list of principles that business partners must adhere to when supplying products made from animal materials.

In particular:

• Zalando believes that the killing of animals exclusively solely for the production of fashion products is not necessary.
• Zalando is opposed to the sale of products made from materials from wild animals, and in particular those classes of species considered vulnerable or endangered, appearing on IUCN and CITES;
• No cosmetics/beauty products for sale on Zalando can be tested on animals;
• Trade partners selling products of animal origin should promote animal welfare along their supply chain;
• The use of live animals in photo shoots for marketing materials is not allowed;
• Trade partners should make the supply chain more transparent (including name of animal species, country of origin and any other documentation demonstrating respect for animal welfare);
• Business partners should implement systems or certifications that increase the amount of sustainable animal materials.

Zalando’s Product & Content Guideline

Zalando’s Product & Content Guideline defines products and content that are offensive, illegal or otherwise inappropriate and serves as a benchmark for Zalando employees and their partners.

Zalando has defined 11 cases that constitute offensive and illegal content. We list some as an example:

• Activities that discriminate or incite hatred: including disparaging rdepictions based on ethnic or national origin, gender, religion, political opinions, disability, age or sexuality;
• Political extremism, including any symbolism related to Nazism; specific numbers associated with political extremism;
• Glorification of violence, including representations of violence;
• Infringements of intellectual property rights;
• Violation of the Animal Welfare Policy and the Sustainable Sourcing Policy.

The Restricted Substances List of Zalando

Zalando has established a Restricted Substances List (RSL), a list of toxic and harmful substances that must not be present in the finished product. The RSL has been developed in line with the REACH regulation, as well as with the legislative and regulatory requirements set by the commercial territories with which Zalando operates.

All Zalando suppliers and partners must implement a strong chemical management system and due diligence testing to ensure compliance with the Zalando Restricted Substances List (RSL) and relevant international standards and legislation.

Failure by Zalando’s partners to comply with the requirements entails several penalties, such as:

• Rejection, return or disposal of non-compliant stocks;
• The withdrawal of the product from the market or/and the recall of the product from end users;
• Cancellation of any future deliveries.
• The review and termination of the existing business relationship with the supplier.

By 2023, brands must also demonstrate progress in eliminating hazardous chemicals from their production processes (ZDHC, Higg FEM, bluesign or internal MRSL).

The Zalando Code of Conduct

Zalando’s Code of Conduct refers to human and labour rights that must be respected by trading partners.

Zalando does not tolerate any violation of human and labour rights, violations of the law or other violations of the Code of Conduct, reserving the right to terminate relations with business partners that do not comply with the requirements outlined.

In particular, the Code of Conduct requires business partners to ensure fair treatment without discrimination with respect to origin, religion, sex, sexual orientation, age, pregnancy, physical or mental disability.

Particular attention is paid to workplace safety and the clarity of employment contracts, which must provide compensation and number of working hours in line with industry standards or local law.

Furthermore, Zalando does not allow and tolerate any form of forced or child labour with commercial partners, who must ensure that employees are guaranteed freedom of association and collective bargaining.

Finally, the Code of Conduct stipulates that Zalando’s partners must ensure that they use metals or minerals do not directly or indirectly fuel armed conflicts, comply with environmental conservation and protection laws, adhere to anti-corruption laws, avoid anti-competitive practices (such as antitrust violations) and act in a fair and transparent manner, avoiding harming customers, society and the environment.

Conclusions

The fashion sector is going through a transition process towards a more sustainable and circular model. This is evident both from the strategies undertaken at the EU level, such as the "EU strategy for sustainable and circular textiles" and from the sustainability requirements defined by buyers for their respective partners.

The various minimum sustainability criteria established by Zalando, which concern the social and environmental spheres, highlight the e-commerce company's willingness to assure consumers of the sustainability of products sold on the platform.

However, the process of adapting to these requirements is often minimal and complex.

Cikis Studio can help companies along this path, as in the case of the support provided to the Attesa Maternity company in achieving compliance with Zalando's standards: after conducting an analysis of the level of compliance of the collections with Zalando's sustainability requirements, we identified the necessary corrective actions.