Applying ESG in Banking
In this article, we’ll explain what ESG banking is, why it is important, and how you can apply ESG in banking.
ESG / CSR
Industries
Ecology
Greenly solutions
Known for its annual astounding deals and slashed prices on all consumer products, Black Friday was created in the 1950s in the United States before being exported all around the world. In 2022, the rate of online shopping saw an increase of 6% compared to 2021. In recent years, criticism has been raised against this practice, which encourages compulsive buying and overconsumption. Although it generally lasts only 24 hours, this event results in a disastrous carbon footprint.
Greenly has looked into the impact of Black Friday, particularly one of its most successful areas: fashion online purchases.
At the beginning of the year, Forbes estimated that the U.S. e-commerce market would reach over $1.1 trillion in sales in 2023, while the global e-commerce market is was expected to total $6.3 trillion. (Forbes)
According to Finance Online, the factors influencing online purchases are as follows:
Let’s take an example. According to Greenly’s experts, the carbon footprint of one session on one website is 11gCO2e per session (for an average selling website). In 2022, the traffic increased by 38% between November 19th and Black Friday. If we focus on the number of studied sessions by SaleCycle only (409 607 109), we can already say that their carbon footprint was about 4500 tCO2e.
NB: These calculations only take into account the emissions from network infrastructures, not from data centers.
Although discounts apply to products and equipment from all sectors of activity, certain areas are more coveted than others and encourage overconsumption.
According to our research, the fashion sector generates the most traffic (58%), followed by retail (37%) and airlines (5%).
Considering the figures provided in the SaleCycle Report, we can assume that the estimated Black Friday 2022 carbon footprint related to clothing sales amounted to 33,012 tCO2e - which is +72% more than a normal day (19,325 tCO2e).
However, the production of clothing is not just synonymous with a carbon footprint. As a reminder, producing 1 kg of cotton requires 10,000 liters of water, of which 33% is drinking water. A simple t-shirt represents 2,700 liters of water. T-shirts are among the product types with the most success online outside of Black Friday (24% of textile category sales (SaleCycle report) - followed by dresses and sweaters.
Referring to this single example, the carbon footprint related to the sale of t-shirts jumps from 841 tCO2e to 1430 tCO2e in the space of a single day.
It should be noted, however, that according to SaleCycle report – that vests, hoodies, and sweaters see the most significant increase in sales (79%, 78%, and 76% respectively).
According to Queue-it, the Internet traffic induced by Black Friday amounts to 66 million visits compared to 22 million for a “normal” day in October. However, visits and online sales are not made without creating an impact.
Few internet users are aware, but the web is not immaterial. On the contrary, it consumes a certain amount of electricity (whether it’s a computer plugged into the mains, or a data center operating 24/7 to store computer data) and rare resources (to manufacture the terminals).
According to a 2022 ADEME and ARCEP study, greenhouse gas (GHG) emissions related to digital technology represent 2.5% of global emissions.
The ADEME report entitled "On the Road to Digital Sobriety" provides two interesting figures regarding the impact of digital technology:
Favored by consumers for their speed, express deliveries and air freight of goods have a more significant environmental impact than slower modes of transport.
Particularly when it comes to expedited deliveries, businesses frequently resort to air transport as an emergency measure to fulfill tight shipping deadlines.
According to the ADEME Base Carbone v20.2, goods transport carried out:
Locally, the figures are striking. For example, in Paris, France – Black Friday leads to approximately 2.5 million deliveries per day - 10 times more than on a “normal” day. We examined how DB Schenker, the second-largest parcel company in France, operates in the Paris area and found that they use four terminals (labeled A, B, C, and D in the figure). Terminals B and D are responsible for delivering parcels within Paris.
A few approximations:
Assuming deliveries are made with average utility vehicles:
NB: we assume that the emission factor related to these trucks is 0.826 kgCO2e/km (ADEME: VUL/<3,5 tonnes/road diesel, 7% biodiesel incorporation).
NB : these calculations do not take into account the entire impact of transportation, only the impact of the delivery between the terminal (next to Paris) and the final customer. There are additional emissions, seeing as parcels can come from other regions of France or other countries.
The promotions of Black Friday encourage excessive consumption of products and equipment. Once they become obsolete or unused, they are simply thrown away instead of being repaired or sorted.
According to ADEME's Footprint Database:
To this are added the releases of toxic substances that pollute water and soil.
Reducing the impact of this event primarily involves raising consumer awareness about the disastrous impact of this day.
Several important questions should be asked before purchasing:
In this context, second-hand and used purchases are good alternatives. However, beware of the rebound effect!
According to a study by the Boston Consulting Group, 70% of consumers would resell new products second-hand in order to increase their purchasing power in the new market. A practice that is not sustainable, since the overall demand for new products may increase.
In conclusion, prioritize buying second-hand and used items, but do so responsibly — avoiding the lure of excessive purchasing, even when prices are discounted.
What's the point of buying a low-priced product with a limited lifespan? For economic and environmental reasons, it is better to purchase a product that is a little more expensive, but whose quality ensures a much longer lifespan.
To minimize your environmental footprint, prioritize the following sustainable products and equipment:
In this regard, low-tech solutions are a way to combat the mass consumption of digital equipment. These objects and practices fight against planned obsolescence, limit energy consumption, and contribute to reducing waste.
As Black Friday gains momentum, the ideal would be to eliminate this event in favor of more ecological alternatives, such as: