Guide to customer-facing sustainability communication [External] Last updated: October 2024 Supporting the External Sustainability Communication Policy Welcome to Zalando’s Sustainability communication guide. With the latest Zalando Group Strategy , we’ve set ambitious sustainability goals, like offering our customers sustainable & inclusive choices. However, in doing so we want to ensure that all sustainability-related customer communication does not use greenwashing - which we can’t do without YOU, our partners. Our Sustainability Claims Policy sets out the core principles and expectations for sustainability-related communications, and this additional guide will give you the foundations to compliantly communicate about your brand’s sustainability-related efforts on Zalando. Agenda 1 | Introduction ● Zalando Group Strategy & sustainability ambitions ● Customers’ perception ● The problem of greenwashing & how it’s regulated ● Our sustainability customer experience 2 | Let’s communicate compliantly ● Communication guidelines ● Having proof ● Avoiding greenwashing ● Prohibited style names ● Design & imagery 3 | Process & Support ● Processes for co-developing messaging or revising content 4 | Pre-approved messaging ● Products and collections with product standards ● Brand storytelling & other product messaging 5 | Messaging that requires approval ● How to seek approval ● Beyond our product standards 6 | Appendix ● Attribute vs. Impact claims ● Product standards overview ● Glossary Sustainability Communication Introduction 01_Introduction With the Zalando Group Strategy, we have set ambitious sustainability goals that require the support of our partners We aim to minimise negative impact caused by Zalando's operations (via the Net Zero emissions and Decent Work ambitions outlined in our strategy), and offer customers sustainable and inclusive options. Zalando is committed to delivering on this as a competitive advantage , to create a better sustainability-related experience for customers, enabling them to buy better, wear better, feel better. While we’re not perfect, nor are the products we sell, we want to keep talking about these efforts , which are important to us, our stakeholders and customers. However, in order to communicate to our customers in a compliant way, we must first lay some groundwork. Sustainability Communication Introduction Our customers care about sustainability Most customers care about sustainability , even though it’s not their dominant purchasing driver. Enthusiasts (Zalando’s target audience) care about sustainability as “ quality ” (eg. durability, material, cut, resale value, versatile styling, easy care, known brand), or develop trust in sustainability on a brand or company level. On a brand level, sustainability (both on & offline) contributes to positive perception of Zalando. While interested in the concept, customers respond to things they can see (ie. packaging, labels, delivery etc.) The sustainability-related content was interesting, but not new. It's more about the fact that Zalando makes it visible to people. Sarah, 43 “ Sustainability Communication Introduction Moreover, Zalando aims to protect consumers from greenwashing, in line with EU regulation. Therefore, we must be cautious of the messaging that we showcase. At Zalando we showcase sustainability-related information at a product level (also called attribute claims) to help our customers make more informed purchasing decisions. We also showcase digital content and marketing campaigns related to these products, that are either directly developed by you - the brand (e.g. Brand Homes) or co-developed with you (e.g. ZMS campaigns, regional marketing campaigns, etc) When sustainability-related content or campaigns are false, misleading or can’t be verified, that’s greenwashing. We must work together to proactively avoid this, and ensure the information we showcase to our shared customers is trustworthy and accurate. Sustainability Communication Introduction How is this reflected on Zalando? Our current sustainability-related customer experience focuses on product standards Due to recent regulatory changes, we updated our sustainability-related customer experience in April ‘24. We no longer talk about “Sustainability”, a vague umbrella term that implies one product is better for people and planet than another. Instead, we have shifted to communicating about additional “ Product standards ” (e.g. attributes) based on third-party certifications, trademarks and licences that are reviewed annually. Keeping an experience is already an accomplishment given the complex constraints, but the result is less prominent (no icons or the old “green flag”), removing the term “sustainability” in the customer experience. Sustainability Communication Introduction Removal of icons from the catalog (and PDP) Sustainability terminology replaced by Product Standards in the filter and PDP page Continuing to show certification and material details on PDP page Updated “Sustainability” Page So what does our customer experience currently look like? Sustainability Communication Introduction The product standards that underpin our experience We have 19 product standard groups for Fashion & Beauty within our framework, each containing individual third-party certifications, trademarks or licenced materials. Whenever we have a campaign or content that speaks directly to sustainability-related product aspects (e.g. a Statement story, ZMS campaign or collection), product standards are the proof that we need in order to include this messaging. In some cases, we expand this rule to speak to credible innovation or brand storytelling, though Zalando must review and approve these. Fashion Product Standard bluesign® approved material Biobased material Certified wool Certified down Cotton (farming standard) Designed for circularity Forest-based material Leather alternative Leather (production standard) Organic in-transition materia Organic material Recycled material Regeneratively grown material Wood-based material Beauty Product Standards Cruelty free Forest-based material Organic ingredients Natural ingredients Recycled packaging Refillable Sustainability Communication Introduction In addition, we continue to invest in storytelling around innovative, credible assortment The Statement CAMPERLAB, Girlfriend Collective, Klättermusen, Timeless Wardrobe + more. Features on high-traffic Theme Homes eg, Wardrobe Essentials Product highlights Mainstages in seasonal campaigns Social Media Creator content (TBC July ‘24) Sustainability Communication Introduction 02_Let’s communicate compliantly Sustainability Communication Let’s communicate compliantly Do you have proof? Can you prove the claim or message? (i.e. for the specific product, your brand of the service your offer) To support our shared customers to buy better, wear better and feel better, we want to talk about sustainability-related product attributes & brand stories that matter to them - in a compliant and trustworthy way. How can you communicate it without greenwashing? 1 2 YES NO ❌ Don’t do it. Get a reliable proof first, then come back to us. ...so how do you get started? Sustainability Communication Let’s communicate compliantly Do you have proof? Environmental Impact Claims: Impact claims require a full life-cycle assessment of a product, measuring the holistic environmental footprint of the item. That’s why we cannot make claims like “This product saves X% water”, “reduces emissions X%” or “better for the planet”) Zalando is exploring how to best work with our partners to assess products’ environmental footprints, and showcase this to our shared customers, but we’re not there yet. Interesting in highlighting your sustainability efforts in your marketing and digital content? Check the pre-approved messaging for more details on the claims that we can make. Product Attribute Claims: If a product is made of [e.g. organic material] and has a product standard [e.g. GOTS Organic certification] meeting our Sustainability Product Standards we’ll likely be able to talk about the use of organic materials in the campaign or digital content. Sustainability Communication Let’s communicate compliantly Communication Guidelines How to communicate without greenwashing? Be humble and transparent ● We’re on a journey, we have a long way to go ● Since we often do not have “full transparency”, we do not claim this (rather we’re working on “steps towards transparency”) Use customer-centric language ● Not all customers care about sustainability, we should meet them where they are ● Avoid overwhelming, technical terms. Focus on “what’s in it for customers?” ● Follow a “style-first, sustainability second” messaging hierarchy (mirroring customer preferences) Don’t use broad terms like “sustainability” ● We don’t say sustainability, sustainable, green, fair, ethical, conscious, environmentally friendly, ecological, biodegradable, vegan, circular, etc. ● This also applies to visual clichés like leaf icons or the color green when talking about sustainability-related topics. Don’t use impact-related claims ● We don’t describe the environmental benefit ● Instead, we focus on the attribute claims we can prove (e.g. made with xyz product standard, certification, material) Sustainability Communication Let’s communicate compliantly Communication Guidelines Prohibited Style Names / Product Titles Prohibited Phrases: We no longer accept the following phrases to be used in product/style names on Zalando. Prohibited style/product names will automatically be blocked and adjusted. These phrases are considered “green claims” and are difficult to prove in all cases. If you wish to highlight the sustainability attributes of your products we encourage you to instead utilize the voluntary Sustainability Product Standards, which showcase approved attributes in the product detail page. Ethical Eco Eco-Friendly Environmental Earth friendly Sustainable Sustainability Kind Clean Kind to Animals Cruelty Free Bio Biodegradable Organic Recycled Vegan Circular Conscious Ocean Friendly Less Waste Less Impact Carbon Neutral Regenerative Responsible Examples: Communication Guidelines Sustainability Communication Let’s communicate compliantly Design & Imagery Guidelines In visual design we must avoid greenwashing the same way we do with words. - No leaf icons: Don’t use icons like leafs in your marketing and labelling, as they can be a non-compliant, vague "green claim" suggesting that the product is better for the environment, which cannot always be proven. - Not just green: Don’t just use the color green when talking about sustainability (but all colors). - No nature out of context: Don't use nature or plant images as a generic background to allude to sustainability for products or collections, unless it’s intended to be used in the outdoors (e.g. Sportswear) Sustainability Communication Let’s communicate compliantly Communication Guidelines 03_Process & Support Sustainability Communication Process & Support 🏅 2) Share your messaging ideas with your dedicated Zalando contact or submit via Brand Homes Your dedicated Zalando contact will support you in developing content that is aligned with our Sustainability Claims Policy and the guidelines. Direct feedback does not apply to Brand Home content. Once you submit self-service content to Brand Homes, you’ll receive automatic feedback if anything needs to be adjusted. 🤓 3) Whenever possible, utilize the Pre-approved messaging If your campaign or messaging is based around the product standards you have in place begin by taking advantage of the compliant, pre-approved messages found here. 📖 1) Check the communication guidelines in this deck Start from this guide to ensure that all campaign or content messaging ideas you share with Zalando (e.g. for ZMS) or directly submit (e.g. brand home) are in line with our do’s & don’ts. Developing a sustainability-related message on Zalando Sustainability Communication Process & Support 🏅 2) Work with your dedicated Zalando contact to revise the messaging Your dedicated Zalando contact can support you in revising the messaging to be aligned with our Sustainability Claims Policy and the guidelines shown here. 🤓 3) Prevent it from happening again Ensure that all relevant people in your organization are made aware of the non-compliant messaging and share the policy & guidelines to ensure future non-compliant cases are prevented! 📖 1) Zalando may identify messaging that is non-compliant In these cases we will reach out to you to explain how the messaging is non-compliant to our policy & guidelines, and ask you to revise it in a specific timeline. Revising messaging identified as non-compliant Sustainability Communication Process & Support