MILAN — There’s already one company that has accepted Gucci’s CEO Carbon Neutral Challenge: The RealReal is pledging to be fully carbon neutral in 2021, in response to Gucci president and chief executive officer Marco Bizzarri’s call to action on Tuesday.
“Marco Bizzarri’s challenge to execute more radical and immediate change inspired us to respond with greater urgency and turn up the dial on the commitment we made with UN Climate Change’s Fashion Industry Charter for Climate Action [UNFCCC],” said Julie Wainwright, founder and ceo of the luxury consignment company. “Between the conversations had at this year’s Copenhagen Fashion Summit to the important work of activists like Greta Thunberg, it’s clear that we must do more and do it faster.”
When joining the UNFCCC earlier this year, The RealReal committed to a 30 percent reduction of greenhouse gas emissions by 2030, but it is now making “a bolder commitment” to accelerate its impact given the ongoing crises such as the recent wildfires in the Amazon. To become fully carbon neutral in 2021, The RealReal has engaged sustainability consultancy Shift Advantage, which is gathering data to measure the luxury reseller’s total GHG emissions. These emissions are either generated directly from The RealReal (such as fleet vehicles for transportation), from its electricity purchases or generated indirectly from the group’s business activities, such as shipping.
As reported, Bizzarri is urging his peers across different sectors to accept the CEO Carbon Neutral Challenge to reduce GHG emissions and that actions should include companies’ supply chains. “We are entering a new decade of corporate accountability. As businesses, we all have a responsibility to meet the reality of our global climate and biodiversity crises head on and find solutions that can amplify efforts to conserve and restore nature, while mitigating climate change,” Bizzarri writes in his letter, which was issued on Tuesday. “I believe that collective action is imperative if we are to help create a future in which society can thrive and business can succeed, while nature is restored and protected. I sincerely hope you will join us.”
In June, The RealReal started trading on the Nasdaq pricing its initial public offering at $20 a share, which put its valuation at $1.65 billion. The IPO raised $300 million.
Founded in 2011 by Wainwright, The RealReal resells apparel, shoes, handbags and jewelry, art prints and furniture.
In October, Burberry said it was partnering with The RealReal in an effort to promote a circular economy in fashion, as a means of educating and directing consumers who wish to consign their Burberry items, or to shop for old Burberry pieces, on The RealReal’s site.
Stella McCartney was one of the first designers to embrace consignment and launched a partnership with The RealReal in 2018, with McCartney’s U.S. boutiques offering information and programs to facilitate consigning.
In 2018, The RealReal processed some 1.6 million orders, a 42 increase from the previous year, and brought in revenues of more than $207 million. The RealReal sells online and also has three retail stores. In May, it opened up a 3,000-square-foot store and luxury consignment office in the Upper East Side in Manhattan. Its other two stores are in SoHo in Manhattan and in Los Angeles.