Voice of the Industry

Sustainability and corporate social responsibility in ecommerce: a European benchmark

Friday 8 April 2022 11:41 CET | Editor: Raluca Constantinescu | Voice of the industry

Experts from the Centre for Market Insights (CMI), Amsterdam University of Applied Sciences, elaborate on what web shops are doing in terms of sustainability and corporate social responsibility today

To what extent do online stores communicate their corporate social responsibility (CSR) efforts to customers? What role does sustainability play in product assortment and fulfilment? Learn what web shops in Europe are doing to determine how you can distinguish your web shop in the field of sustainability and CSR. 

When it comes to sustainability and CSR, the ecommerce sector does not have the best image. The myriad shipments with polluting delivery vehicles, the mountains of packaging material in and around our online orders, as well as high numbers of returns are the typical culprits. Although some studies indicate online shopping is no worse for the environment than in-store shopping, the more prominent perception is that ecommerce is one of the least sustainable shopping methods (Weltevreden et al., 2021). There is no doubt that ecommerce can and should become cleaner, a fact the industry is aware of and attempting to transition towards. This transition is evidenced by the many innovations and investments in areas such as sustainable products and packaging, CO2-neutral transport, and recycling. 

In the autumn of 2021, the Centre for Market Insights (CMI) of the Amsterdam University of Applied Sciences surveyed over 2,600 Dutch online shoppers. It showed that 51% of online shoppers prefer not to buy products from web shops that cause damage to the environment, and a further 56% indicated that when there is a choice between two alternatives, they prefer to choose the most environmentally friendly product. These results show that sustainability already plays an important role for many online shoppers in their purchasing decisions. Moreover, similar trends can be observed amongst other European countries, offering opportunities for online stores that consciously focus on sustainability and CSR efforts (Swerdlow & Rose, 2021). 

A European benchmark 

To gain more insight into what web shops are doing, particularly in terms of sustainability and CSR, the CMI conducted a large-scale content analysis of 810 leading web shops in the EU-27 (30 web shops per country) in 2021. The goal of this content analysis was to better understand which types of online shops actively communicate their sustainability and CSR activities. Of the 810 web shops, 291 were found to share sustainability and/or CSR activities on their websites. A follow-up survey was conducted in 2022 amongst the 291 web shops to find out exactly what sustainability and CSR efforts they have taken. The results of both research projects are summarised in an interactive online dashboard (available here). 

Accountability 

In 2021, 36% of leading web shops across Europe shared information about their sustainable and CSR activities through their website. Interestingly, online stores with the highest amount of web traffic shared their efforts significantly more often than web shops with fewer visitors. For example, 61% of web shops with more than 50 million visitors a year shared this information, compared to only 20% of web shops with less than 5 million visitors a year. Additionally, the differences between countries are substantial, as web shops located in Western and Northern European countries are more likely to share information about their sustainability and CSR activities than Southern and Eastern European web shops. Online shops in Germany (70%), Sweden (60%), and France (57%) showcase their efforts most often, while web shops from Malta (10%), Lithuania (10%), Latvia (7%), and Cyprus (7%) show their efforts least often. 

Retailers operating internationally, as well as marketplaces, share more information with website visitors than retailers operating nationally. To be sure, there are different types of sustainability and CSR activities European retailers and marketplaces participate in. Most notably, European web shops share information about the environment and climate (82%), followed by human rights (62%) and working conditions (49%). Information for other causes is shared less often on European web shops, particularly animal welfare (30%), circularity (11%), and anti-corruption (5%). 

Encourage customers to make sustainable choices 

In terms of products offered, we see that almost all online stores sell some version of sustainable products (92%). In fact, for 1% of online stores, the entire product line can be labelled as sustainable. Additionally, FSC and Fairtrade labels were found most often on websites of sustainable and CSR-conscious web stores, as 44% mentioned one or more of these labels. 

Most online stores attempt to help consumers make sustainable purchasing decisions (89%). For example, 81% offer a filter or search function for online shoppers to easily find sustainable alternatives. A further 43% have a separate webpage dedicated to the sustainable assortment, and 38% use their labels or labels from third parties (e.g. FSC label) to indicate which products are more sustainable. Of these online stores providing sustainability and CSR information, 39% encourage customers to send used products (e.g. clothing and electronics) for recycling, and 4% provide information about the CO2 emissions of different delivery options. 

Charities are an important piece of the CSR puzzle for retailers and marketplaces. In fact, 57% indicate that they support one or more charities; 46% support external charities, and 35% have established their own charity. Additionally, 29% of web stores offer customers the opportunity to donate to a good cause when placing an order. 

Fulfilment and sustainability 

In terms of fulfilment, we see that European web shops mainly develop activities in the field of sustainable logistics (33%), the use of sustainable packaging materials for online orders (27%), sustainable product packaging (20%), and sustainable storage of goods (19%). Information on reducing and reusing packaging and padding materials is shared much less frequently by web stores. 

Making a difference 

Attention to sustainability can no longer be ignored by online stores, and CSR efforts have increasingly become important for retailers and marketplaces trying to differentiate themselves. Apart from the responsibility we have as a society to take care of our planet and the people living on it, we see that more and more European online shoppers take sustainability, fair trade, and working conditions into account in their purchasing decisions. Therefore, it is important that web shops communicate to (potential) customers which activities they are undertaking in the field of sustainability and CSR. 

At the moment, the majority of European web shops either do not have or do not communicate their efforts in this area, and the differences between countries and types of web shops are considerable. Perhaps most importantly, this research has revealed notable opportunities for web stores to distinguish themselves in the European ecommerce landscape – on the one hand by increasing their efforts in the field of sustainability and CSR, and on the other hand by effectively communicating their activities. Of course, web shops can still make great strides in the area of sustainable packaging and logistics, and greater environmental gain can be achieved in terms of the assortment that web stores carry. However, if more web shops than the current 1% that are already CSR-conscious switch to a complete – or at least a larger – sustainable assortment, they can start to make an even bigger difference! 

About the authors 

Dr Jesse Weltevreden is professor of Digital Commerce at the Amsterdam University of Applied Sciences (AUAS). Jesse is director of the Centre for Market Insights of the School of Marketing at AUAS. He is also chairman of the Retail Innovation Platform, a network of universities in Belgium and the Netherlands that conduct research on retail innovation. His research interests include cross-border ecommerce, online platforms, data-driven marketing, emerging retail technologies, and the mobility effects of online shopping. 

Sara Lone is a lead researcher in ecommerce at the Amsterdam University of Applied Sciences. 

Sjoukje Goldman is a lecturer-researcher in sustainable marketing at the Amsterdam University of Applied Sciences. 

Denny Djuheric is a graduate from the School of Marketing at the Amsterdam University of Applied Sciences. 

Nahid Harboul is a junior researcher in ecommerce at the Amsterdam University of Applied Sciences. 

 

About the Centre for Market Insights 

The Centre for Market Insights is the innovative research centre of the School of Marketing at the Amsterdam University of Applied Sciences. Our experts carry out challenging research projects for top companies and trade associations in the field of digital commerce and marketing analytics. 

 

Sources 

Weltevreden, J.W.J., W.M.M. Hopman & I.Y. Davidenko (2021). The Mobility Effects and Carbon Footprint of Online Shopping. Delft: Hogeschool van Amsterdam TNO and Connekt on behalf of Top Sector Logistics. 

Swerdlow, F. & R. Rose (2021). Global Consumers Drive The Market Toward Sustainable Retail. Forrester Research.


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Keywords: ecommerce, sustainability , online shopping, retail, marketplace
Categories:
Companies: Amsterdam University of Applied Sciences, Centre for Market Insights
Countries: Europe

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