Over the last few years, Top 40 supplier PCNA (asi/66887) has taken a leadership role when it comes to sustainability, launching its ProudPath platform in 2022 and releasing its first-ever sustainability report earlier this year.

In this Q&A, Liz Haesler, chief merchandising officer, and Nick McCulloch, director of ESG, discuss the kinds of sustainability metrics promotional products clients are looking for and how suppliers can help distributors meet their own customers’ environmental, social and governance (ESG) requirements.

Q: Are you hearing from distributors that their bigger clients want promo campaigns to have measurable sustainability efforts? If so, what sort of metrics are they asking for?

Liz Haesler: Almost every day we receive requests for quotes on sustainable products with metrics they can trace – from givebacks for a particular order, to data around country of origin for cotton, to bluesign and Global Organic Textile Standard (GOTS). We’re seeing more requests for metrics around Scope 1 and 2 for carbon footprint reductions.

Distributors are being asked by their customers to provide promo product offerings that yield positive environmental impact. We’re hearing that larger customers are asking for this more frequently to align with their corporate social responsibility practices.

How each customer defines sustainability and what environmental impact means for each company varies, so it’s important to have different options. For example, one customer may want to purchase a product that comes with a giveback program, while another customer wants to purchase products that are made from recycled materials. Many customers are asking about carbon footprints since reducing CO2 emissions is the most critical activity in mitigating climate change.

Liz Haesler and Nick McCulloch of PCNA

Q: What’s the supplier’s role in these conversations? How can PCNA and other suppliers help equip distributors to meet more stringent ESG requirements coming from their clientele?

Nick McCulloch: In the near term, we believe suppliers’ major priority should be on creating the transparency needed to inform and enable sustainable purchasing decisions by end-customers. Related to this, the industry could benefit from “rules of the road” – a set of agreed-upon product sustainability standards that all industry suppliers agree to follow. This would help to build consumer trust in supplier sustainability claims and mitigate greenwashing, which undermines genuine sustainability efforts.

Q: What are some other sustainability-related trends and requests the promo industry is seeing from end-user clients?

LH: We’re seeing a big trend toward third-party certifications and recycled products. As stated earlier, not all customers are the same, so it’s important to understand their sustainability goals to determine the best offering to meet their needs.

Q: What’s your favorite ProudPath product, and why do you love it?

LH: Drinkware products from Klean Kanteen due to the quality. Its products are designed to last a lifetime, but are also made with recycled stainless steel. Also, these products have some of the best functionality in the market with twist lids and a great look and feel.

NM: I agree. Family- and employee-owned, B Corp and female-led, the Klean Kanteen team couldn’t be more committed to our planet and people.

Q: What’s the biggest takeaway you’d like distributors to get from the sustainability report you released earlier this year? What do you want them to know about your progress?

NM: I think the most important takeaway for any distributor evaluating PCNA’s relationship with sustainability is the rate at which we’re investing in and growing our sustainable product revenues. Since 2019, PCNA has grown revenue from environmentally conscious products by 67%. Sustainability isn’t an abstract idea for PCNA or something we’re going to do at some point; it is our single largest source of growth and something into which we’re continually driving more resources.

Q: What are the biggest pain points your distributor clients are dealing with when it comes to sustainability?

LH: As stated earlier, not all customers are the same, so it’s important to understand their sustainability goals to determine the best offering to meet their needs. The biggest issue for distributors is sifting through all the sustainability information to determine what truly meets the needs for their customers.

Q: What do you foresee on the horizon when it comes to sustainability and promo? Is there anything in particular the industry should be preparing for now?

NM: There are four areas the industry should be looking at:

1. Increasing its transparency by improving data collection and reporting.

2. Innovation and CO2 optimization through redesigning products, value chains and sourcing strategies.

3. Supplier engagement – integrating emissions key performance indicators (KPIs) into supplier selection and performance tracking.

4. Sector standards and initiatives (product standards, climate advocacy and buying groups).

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