Why is sustainability important?
Picture this: you’re halfway through your third coffee of the morning, trying to figure out why your packaging costs are up, your customers are asking what your Scope 3 emissions look like, and your CFO is mumbling about stranded assets. You’d rather be watching reruns of The Office, but unfortunately, business decisions don’t come with a laugh track.
Climate change has evolved into a present-day business risk, a customer concern, and an investor priority. In recent years, sustainability has moved from the sidelines to the centre — not just in marketing, but in operations, procurement, finance, and investment strategy.
Let’s unpack why sustainability matters now more than ever, and what it means for brands, businesses, and the investors backing them.
“I realised that we don't have the luxury to wait for someone else to come and fix the plastic problem because there’s no more time left.”
— Anna-Liisa Palatu, CEO and Co-founder of Woola
What’s driving the urgency?
We’re facing an ecological crisis, yes. But the conversation has also shifted into economics. Businesses are starting to feel the financial impact of the crisis we face, from disrupted supply chains to rising insurance premiums.
Investors are paying attention, too. Nearly half of all investors now say that climate change exposure affects a company’s financial risk. And 92% of this group expect to act on that insight by investing in sustainability-focused businesses, divesting from harmful ones, or lobbying fund managers to update their approach.
"We need to get rid of the ‘single-use mentality.’ Nothing should be single-use at this point anymore."
— Anna-Liisa Palatu, CEO and Co-founder of Woola
Everything we produce and consume has an impact:
Deforestation for raw material extraction accelerates biodiversity loss and reduces natural carbon sinks.
Plastic production releases greenhouse gases and leaves behind microplastics that are now found in oceans, soil, and even human blood.
Poorly managed textile waste contributes to landfill overflows and chemical leaching into water systems.
These are real effects, not hypothetical models. We at Woola like to look at the facts and then take action. So, let’s look at the effects as signals that we can respond to with solutions already within reach.
The investor pivot
Investors aren’t just relying on what brands say. They’re doing the work. Of the investors who trust sustainability claims, more than three-quarters still conduct their own research. And that scrutiny is increasing — nearly two-thirds say public attention on environmental claims will grow in the coming year.
What does this mean for business leaders? It means sustainability performance is no longer a back-office metric. It’s becoming an actual measure of risk, leadership, and resilience. Companies that can prove, not just claim, their progress in sustainability are the ones more likely to secure capital from worldwide investors.
Investors are also looking for credibility. That means aligning with recognised sustainability frameworks, disclosing material data, and speaking clearly about trade-offs. Sustainability is complex. Investors know that. What they’re asking for is transparency, not perfection.
Woola has raised a total of €7M in investments, out of which €6.5M has been raised in venture capital financing from Future Ventures, Metaplanet, Lemonade Stand, and a number of angel investors. While many funds out there still don’t prioritise sustainability, this is proof that there are investors out there who do.
The consumer shift
Consumer expectations are also evolving. More than 80% of Gen Z consumers — and a growing number of Millennials — say they expect brands to address environmental issues. Sustainability is now forming part of the product experience.
This shift is especially relevant for premium and luxury retailers. If you’re selling products designed to delight, such as skincare, jewellery, eyewear, or tech, then the entire customer experience, from retail stores to ecommerce packaging, needs to match.
Sustainability plays a key role in delivering an innovative, meaningful unboxing experience. It’s how brands show their values in action, not just with words on their sustainability page.
Consumers are watching closely and here’s what they’re seeing:
Fast fashion’s overproduction has led to massive clothing landfills, such as the Atacama Desert pile in Chile, visible from space.
Some supplements and skincare brands use palm oil derivatives tied to tropical deforestation.
Even electronics packaging can be a red flag when wrapped in layers of petroleum-based plastic.
These are the signals today’s buyers notice — and respond to with their wallets.
Why your sourcing matters
Sustainability doesn’t start with the finished product. It starts upstream, with sourcing.
Responsible sourcing means asking the hard questions. Where do your materials come from? Who handles them? How are they processed? What’s the real-world impact?
Customers and investors alike want supply chain transparency. Whether it’s cotton in a shirt, minerals in a smartwatch or wool in a package — getting closer to the source gives you more control over both quality and ethics. Local and traceable sourcing builds trust and business resilience.
Unchecked raw material extraction often leads to soil degradation, deforestation, and polluted waterways. In contrast, regenerative sourcing can restore ecosystems, support local economies, and reduce reliance on high-emission transport chains.
The cost of climate change inaction is growing
Brands that ignore sustainability face increasing risks such as:
Regulatory fines
Loss of investor confidence
Customer attrition
Supply chain disruptions
Reputation damage
Meanwhile, businesses leading the way in sustainability are seeing stronger brand loyalty, increased investment, and access to new market segments.
Environmental damage is now measurable in business terms. Coastal flooding risks, wildfires near logistics hubs, water scarcity affecting production — these aren’t abstract possibilities. They’re risk scenarios modelled by insurers, governments, and investors.
An example of this can be seen in Thailand’s Eastern Economic Corridor, which is home to major electronics and automotive factories. They’re facing billions in potential losses due to rising sea levels and storm surges. Companies like Hitachi and Honda have already been forced to relocate equipment or temporarily shut operations.
Packaging is part of the picture
While sustainability extends far beyond packaging, it’s one of the most visible and emotional touchpoints for customers. It’s what they see, touch, and form a first impression on.
Sustainable packaging shows your commitment to sustainability in action. That’s why premium brands are investing in packaging made from carefully selected materials, designed to be reused, and crafted to reflect their values.
Packaging made from fossil fuel-based plastic not only fills up landfills but also contributes to over 1.8 billion tonnes of greenhouse gas emissions annually. On the flip side, packaging made from regenerative or repurposed materials helps close the loop, giving waste new value and meaning.
B Corp and beyond
Certifications like B Corp offer external validation that a business meets high standards of social and environmental performance. But they’re not the finish line — they’re a baseline.
Sustainability reporting is often opaque, inconsistent, or buried in the back pages of annual reports. That’s no longer good enough. Investors and consumers want clear, comparable information, and they want to know which global standards you follow.
“You can’t be the referee and the player. We needed a set of rules and an external party to audit them in order to know if we’re going in the right direction.”
— Anna-Liisa Palatu, CEO and co-founder of Woola
Whether it’s the Global Reporting Initiative (GRI), Task Force on Climate-related Financial Disclosures (TCFD), B Corp, or Science Based Targets initiative (SBTi), you need to connect your business’s environmental goals with third-party benchmarks. This provides investors and customers with a benchmark to measure and monitor their investment.
The real work is ongoing, setting science-based targets, improving circularity, and reducing dependency on fossil fuels. That’s how brands move from intention to impact.
“What we have seen is that there are a lot of companies in Europe and globally that, concerning the new regulations about leaving aside plastics and transferring to alternative materials in their packaging, they need some kind of proof for their management or their value chain.
— Kelli Roosimägi, Head of Operations at Woola
Sustainability should be a business foundation
Sustainability is a complex topic. As you evaluate your options, you’ll face decisions that involve “apples to oranges” kind of comparisons.
Sometimes, reducing plastic waste increases initial energy use. Sometimes, cutting emissions means higher costs. The brands that lead in this space aren’t the ones claiming to have it all figured out. They’re the ones who are transparent and say: here’s what we’re doing. Here’s what it costs. And here’s why we believe it’s worth it.
Sustainability is a meaningful shift that we need to make. Businesses that understand this will be the ones that succeed, not in spite of their sustainability efforts, but because of them.
To learn more about how we can help you achieve your sustainability goals, get in touch with our sales team or see how we can customise your packaging to fit your needs.
Frequently asked questions
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Not at all. While environmental health is a major driver, sustainability also includes social responsibility and economic resilience. It's about how businesses source materials, treat workers, manage waste, and plan for long-term viability, not just how they reduce carbon emissions. -
Yes. Sustainability isn’t only for large corporations with big ESG budgets. Small changes, like sourcing locally or switching to lower-impact packaging, can send a strong message to customers and investors. Many buyers today expect action from businesses of every size. -
Not always — and when it is, it often pays off elsewhere. Sustainable packaging can reduce damage rates, improve brand perception, and even increase customer loyalty. Plus, with mounting regulations and material shortages, plastic packaging could soon become the more expensive option.
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Stick to verifiable facts, not vague promises. Use recognised reporting frameworks like GRI or TCFD, and consider third-party validated certifications. Most importantly, be honest about trade-offs and progress. Today’s customers and investors value transparency over perfection.
