Sustainable Luxury: How CSR Excellence Elevates Luxury Brands

Global warming is an undeniable reality, and organizations are increasingly aware of their environmental impact. The luxury retail industry is stepping up and redesigning its business models to adjust itself to the changing environment. Environmental, Social, and Governance (ESG) factors are becoming increasingly important for companies due to the regulatory frameworks. Because of these developments, brands that are looking to set up luxury boutiques anywhere in the world, seek partners in the value chain that uphold sustainable practices.

This is where ESG rating agencies come in. For instance, EcoVadis, the globally recognized assessment platform, provides ratings for supply chains globally, making it possible for luxury brands to make informed decisions while choosing offshore design-and-build partners. As part of EcoVadis's assessment module, organizations are required to complete a comprehensive questionnaire customized to their industry sector, size, and country. Once the analysis and rating process is completed by EcoVadis' CSR experts, companies receive the results in the form of a detailed scorecard.

This scorecard provides actionable insights into CSR (Corporate Social Responsibility) performance, offering valuable guidance on areas for improvement and best practices. With EcoVadis, one can gain invaluable insights to enhance sustainability initiatives and drive positive, social and environmental impact. Abra has consistently ranked in the top 15% of EcoVadis’ sustainability ratings, with a silver rating on our sustainability performance for the fifth consecutive time.

As a brand that consciously follows developments in ESG, we understand that in today's world, social and environmental values increasingly shape consumer preferences, necessitating sustainable business practices. The physical retail space serves as the primary point of interaction between brands and customers, hence, sustainable efforts in these spaces become crucial for brand loyalty. As this concept gains momentum, luxury retailers seek supply chain partners who actively implement sustainable practices while building these spaces as per their brand requirements. At Abra we set ourselves apart by consistently achieving top-tier ratings because sustainability isn't just a checkbox for us; it's ingrained in our corporate ethos.

With so much discourse and several claims on sustainability, there is a need for companies to provide verifiable evidence of the quantifiable extent of their sustainability efforts. With growing consumer and regulator demands for higher environmental standards, the EcoVadis rating becomes a crucial validation. The methodology is based on international sustainability standards such as the Global Reporting Initiative, the United Nations Global Compact, and ISO 26000. The result is an EcoVadis score ranging from 0 to 100, facilitating industry comparisons and providing reliable rankings.

EcoVadis has defined 21 sustainability criteria based on international Sustainable Development standards. They are divided into four different categories of environment, labour and human rights, ethics and sustainable procurement. Our commitment to sustainability is evident through rigorous adherence to renewable energy utilization, our investment in solar power generation to power all our offices and our factory, the integration of biodiesel vehicles, and a steadfast dedication to the principles of reduce, reuse, and recycle throughout our manufacturing process. Furthermore, our sustainable material procurement practices ensure that environmental considerations are paramount in every aspect of our operations. Adherence to global and in-house policies and standards ensures fair wages, promotes equity hiring, and upholds labor rights across all facets and locations of our business operations.

Abra acknowledges that the journey toward sustainability is ongoing despite our consistent efforts. Hence, as we celebrate our fifth consecutive silver EcoVadis rating, we remain committed to continuous improvement by exploring innovative strategies to further reduce our environmental footprint and enhance our societal impact.