Values, ethics and the business impact of sustainability

Doing good and making profit don't have to be mutually exclusive.

Author

Pietro Saccomani
June 12, 2025

Retention starts with customer experience. And increasingly, that experience has to align with your customer's values.

The lowest price and fastest checkout aren't enough anymore. For a growing number of shoppers, sustainability, ethical sourcing, and transparency are non-negotiable parts of the purchase decision.

What used to be a niche concern is now a mainstream expectation.

So how much does sustainability really matter? Do you need to build a fully transparent, climate-conscious brand to compete?

There's no universal answer. But if these values matter to your target audience, then leaning into sustainability isn't just the right thing to do. It's a smart business decision.

The State of Mobile Apps for Ecommerce

If you haven’t seen it already, we just launched a 56-page, data-packed report on how much revenue mobile apps are contributing for retail & DTC brands.

We looked at real data on areas such as:

  • AOV

  • CVR

  • LTV

  • Revenue & ROI

  • Push Notifications

  • Market Growth & Adoption

This might be the biggest study on mobile apps for ecom ever published.

We’re giving it away for free. Just hit the button below to download the report, and see the real impact apps are having in 2025.

Building a sustainable brand

In our latest Retention Edge podcast, Nihal talked with Sophia Legros, VP of Product Integrity, Social Compliance & Sustainability at Catalyst Brands.

With over 20 years of experience leading sustainability and ethical sourcing across retail, Sophia dropped insight after insight on how brands can actually make values a core part of their identity; not just talk about them.

From embedding sustainability into audit processes to avoiding greenwashing while maintaining customer trust, this episode is a crash course in building an ethical brand that lasts.

Check out the episode below, or head to YouTube or Spotify and watch/listen at your leisure.

What sustainability actually means

Sustainability gets thrown around a lot; often as a vague buzzword. But in practice, it spans a few clear pillars:

  • Environmental: Cutting emissions, reducing packaging waste, lowering energy usage.

  • Social: Fair labor practices, ethical supplier standards, and diversity across the supply chain.

  • Governance: Transparency, traceability, and accountability in how you operate.

It’s not about being perfect in every area. It’s about making a commitment to doing better. And what “better” looks like can vary depending on your category.

  • For a beauty brand, that might mean refillable packaging or upcycled ingredients.

  • For an apparel brand, it could mean fair-wage manufacturing and low-impact materials.

  • For a supplement brand, it might be supply chain transparency (mapping ingredients by source) or going plastic-neutral.

The point is: sustainability isn’t one-size-fits-all. It can touch everything from emissions to ethics to packaging.

That’s why it’s so important to define what sustainability means for your brand; not just as a marketing checkbox, but as a clear stance your team can commit to and your customers can believe in.

Does sustainability matter to modern shoppers?

The data certainly suggests that the demand for sustainability, ethics and transparency is rising.

A 2023 study by PwC found that most shoppers (75-80%) are willing to spend up to 5% more for sustainable practices, such as eco-friendly packaging, locally sourced or produced good, fair trade and ethical products.

The share of people willing to pay larger sustainability premiums is lower, but still 30-33% say they’re willing to pay over 10% more for sustainability.

A survey from McKinsey in 2020 found that 66% of people (75% of millennials) consider sustainability when making a purchase.

More studies show a similar share of consumers are willing to pay more for sustainable products, and place more trust in companies that are sustainable (and open about it).

The business case for sustainability (long-term value vs short-term margins)

In a perfect world, most brands would love to be fully transparent and sustainable.

But the reality is, doing the right thing often costs more. And that tension (between ideals and economics) is one every operator has to face.

It’s rarely a case of brands actively choosing unethical practices. Most teams want to do better. But sustainability requires active decisions that come with tradeoffs:

  • Third-party certifications

  • Supply chain audits

  • Ethically sourced materials

  • Low-impact packaging or ingredients

Sourcing and verifying each of these takes time, effort, and, ultimately, margin. And at a time when profitability is already under pressure, those choices can feel risky.

So, is there really a business case for sustainability? Or do you have to choose between doing good and staying profitable?

Short-term tradeoff, long-term upside

Yes, sustainable practices can hurt your bottom line in the short term.

But over time, there can be upside to spending extra on each product, especially if you’re interested in building a brand for the long haul.

It can pay off via:

  • Stronger retention: When your values match your customers’, repeat purchases go up and churn goes down.

  • Premium positioning: Brands that stand for something can often command higher price points.

  • Advocacy flywheel: Mission-aligned customers are more likely to refer friends, post UGC, and spread the word.

  • Talent attraction: Great people want to work for companies that align with their values.

  • Differentiation: In a sea of similar products, sustainability helps you stand out, not just in ads, but in memory.

And perhaps most importantly: you reduce your reliance on performance marketing. You’re no longer just chasing ROAS or fighting in a race-to-the-bottom on price.

Instead, people buy from you because they believe in what you stand for. That kind of brand affinity is hard to fake… and even harder to beat.

Notable brands leaning into sustainability

Sustainability and profitability don’t have to be at odds.

These companies show it’s possible to build a successful business with sustainability at the core; not just as a marketing angle, but as a foundational part of how they operate.

Ritual: A supplement brand known for radical transparency, offering full ingredient traceability, third-party certifications, and detailed impact reporting.

Pela: A phone case company built around waste reduction in a high-waste category. They've sold over 1 billion phone cases annually and hit mid-8 figures in revenue, all while staying true to their sustainability mission.

Pangaia: An apparel brand that goes beyond organic cotton, developing innovative fabrics from seaweed, fruit fibers, and other natural sources. Sustainability is embedded in product development, not just packaging.

A Good Company: A lifestyle brand committed to carbon-neutral manufacturing and total transparency across its operations.

Elate: This beauty brand combines vegan, cruelty-free formulations with refillable packaging and ethically sourced ingredients, standing out in a crowded category.

MUD Jeans: Pioneers of circular fashion. Their unique jeans-leasing model encourages recycling and reduces waste, flipping the traditional ownership model on its head.

TOMS: Known initially for its “one for one” model, TOMS has evolved into a sustainability-focused brand, with ethically sourced materials and long-term commitments to community impact.

There’s no single formula to getting this right.

What matters is consistency, creativity, and commitment to making sustainability part of how you operate and grow.

Each of these brands approaches sustainability differently; and, crucially, they do so in a way that’s also sustainable from a business sense.

Where to next?

Think about what you want your brand to stand for, and whether sustainability should be part of that story.

This doesn’t mean overhauling everything overnight. You don’t need a full rebrand to make meaningful progress.

Start small:

  • Audit your supply chain.

  • Identify areas where you can improve transparency.

  • Explore partnerships with ethical or low-impact manufacturers.

  • Tell the story as you go. Customers respond to honesty and progress more than perfection.

In a market where many brands are chasing the next algorithm or ad hack, standing for something real can be a lasting advantage.

Investing in values (not just performance marketing) might just be the thing that helps your brand endure while others fade.

Quick Hits

Shopify AI Block Generation is Here

If you haven’t seen already, Shopify’s new Horizon theme is a drag-and-drop builder that features AI block generation.

With this feature, you can literally tell AI what you want to build, and it will write the code for you. Just like that.

It’s pretty wild. This kind of thing is only going to get better and more accessible, too. It’s never been a better time to be a lean team.

Shopify Catalog API

Just quietly, a massive new feature has started rolling out. Shopify’s Catalog API represents the start of the biggest shift in online shopping since ecommerce became a thing.

It lets AI platforms (starting with a pilot in Perplexity) access Shopify product data. Titles, prices, stock levels, etc.

It’s the first step towards a world where the shopping journey begins and ends in AI search.

Help Chat GPT Find Your Products

On that topic, here’s a reminder that Chat GPT shopping is on its way — and you can help make sure Chat GPT finds everything it needs to know about your products.

Their website (linked below) has a couple of important points. One, instructions to make sure Chat GPT can crawl your products; and two, an early signup form for when they open up feed submissions.

Don’t get left behind once AI shopping really takes off.

The iOS 26 Change You Need to Know About

It’s not Liquid Glass (though I actually kind a like it).

It’s a change to the Messages app, which just quietly may have a pretty big impact on SMS marketing.

Message filtering won’t kill SMS, but it makes it a little less effective. And that makes a significant difference when you’re paying per message.

Just another reason your brand needs to be sending push notifications.

The Impact of De Minimis on Shein & Temu

A recent report shared some crazy figures on Shein and Temu’s fall out of the US market.

From March to May, Temu lost 52% of their US DAUs — Shein lost 25%.

Tariffs played a big part, but so too did the removal of de minimis. For these companies, which were built upon this exception, there’s not really a plan B.

It’s a valuable lesson for other brands. If you’re built on a loophole or exploit or arbitrage opportunity, that opportunity is probably not going to be around forever. Plan accordingly.

Shoppers Stay Loyal to the Brands They Love (Even If It Means Paying More)

A recent survey found that the majority of American shoppers are willing to go above and beyond to support brands they love.

87% say they’ll support a brand, even if it’s not the easiest option. 72% will stay loyal to their favorite brands, even if it means paying more.

This is your regularly scheduled reminder that building loyalty and connections with your customers matters. The brands that do this survive (and thrive). Those who only focus on dollars and cents lose out in the long-run.

The State of BNPL

Beyond the jokes about paying for a burrito in installments, this is actually a pretty interesting read on the state of BNPL services (with a focus on Klarna).

It doesn’t make great reading — and some are drawing Big Short comparisons to the findings.

Impact vs Lift

This newsletter was a great read. It looks at the prioritization problem in retention marketing. What’s worth working on, and what’s ultimately just a waste of time/resources?

With CAC higher, margins tighter, funding drying up, and teams getting smaller, it’s worth a reminder about prioritizing the right things.

In short — if the lift outweighs the impact? Don’t do it.

(fyi this has been a big focus on what we do at MobiLoud — helping you launch mobile apps with as little lift and effort as possible)

That’s all for now.

I’ll be back in touch next week, with more on how successful brands are doing CX and retention right.

If there’s any topic you’d like to see us dive into, for either the newsletter or the podcast, just shoot me a message here.

Until next time,

Pietro and The Retention Edge Team

PS: want to boost retention, revenue and profitability? If so, launching your own app could be the best move you make this year.

See how: go to our website to get a preview of your app for free, or shoot me a DM on LinkedIn to talk about it.