Case study | Positive Luxury on ESG, innovation trends in the next 12 months, biggest challenges brands are facing, and more

December 6, 2022

Positive Luxury are an organisation who help brands adapt to the new sustainability economy. They developed the ‘Butterfly Mark’ which is a well-recognised, industry-leading certification that recognises luxury brands who are committed to having a positive impact on nature and society.

Diana Verde Nieto, Co-Founder at Positive Luxury, answers our questions on Positive Luxury’s history, technical challenges brands are facing, sustainability, ESG, innovation trends in the next 12 months and more.

Tell us a bit about your company- its heritage, its story and its markets?

Positive Luxury’s origin lies in the chance meeting of Sir David Attenborough and co-founder Diana Verde Nieto, his inspiring story of the Large Blue Butterfly – which died out in the British Isles in 1979 – and the dedication of the scientist who successfully reintroduced it by unravelling the intricate web of interdependencies necessary for its survival.

Identifying the luxury industry as one that could drive enormous positive change, myself and serial entrepreneur Karen Hanton founded Positive Luxury and the Butterfly Mark certification in 2011.

At Positive Luxury, we power the Butterfly Mark certification, the only ESG assessment and certification tailored for luxury suppliers. Our ESG+ products and services enable companies to manage risk, embed innovation, benchmark performance, and communicate more effectively with internal and external stakeholders, bridging the ESG knowledge gap in organisations.

The Butterfly Mark certification is fully interactive, enabling businesses to build trust and communicate their sustainability performance directly to customers in one quick click. Try it for yourself. Our community of brands are proof of the butterfly effect where one small positive action can influence a much larger complex system.

Tell us a bit about you, what is your career background?

I have been one of the pioneers and global leaders in sustainability well before it became the business imperative it is today. I have over two decades of experience working with companies to promote ESG, sustainability and innovation – supporting and championing businesses to become more efficient, mitigate risk, capitalise on disruption and transformation opportunity, and communicate their sustainability priorities with integrity. I have a track record in driving co-benefits, in terms of environmental and social impact whilst also delivering financial returns.

In 2002, I founded Clownfish, one of the first dedicated sustainability communications consultancies in the world. Through Clownfish, you can say that I broke new ground in the field of ESG and sustainability. I successfully scaled its operations globally, including to China, the USA, Italy, and the UK and subsequently sold the company in 2008 to a trade buyer.

In 2011, Positive Luxury was born – and I have been at the helm of it for nine years. In 2020, Amy Nelson-Bennett joined us as an operational co-CEO enabling me to focus on developing the company’s IP including the smart diagnostic assessment and communication tools that sit at the heart of the company.

Positive Luxury’s exists is to help companies to adapt and transition to a new climate economy. It counts amongst its clients’ companies such as Dior, Selfridges, IWC, Tom Ford Beauty, La Perla and MCM to name a few.

Throughout my career, my entrepreneurial mindset combined with practical sustainability and ESG experience has helped companies and their teams, across multiple industries –including FMCG, Fashion, Automotives, to name a few – to understand and unlock sustainable economic growth.

As a company, what are you most passionate about?

Our mission is to shape a sustainable future for luxury by redefining the business model and rebuilding consumer trust.

What inspires you as an individual the most?

Anything can happen – the world and our future is not linear

What technical challenges do you see brands face to hit sustainability and ESG goals?

Brands’ biggest technical challenge is fidelity and access of data across the value chain, in particular scope 3. Secondly, legislation regarding reporting will increase – most businesses are focusing on the reporting rather than action which will present challenges.

What innovation trends do you think we can expect to see in the luxury packaging industry in the next 12 months? What do you see as the key challenges for the luxury sector?

The luxury packaging market is valued to reach USD 22.37 billion by 2026 and with a growing demand for sustainable packaging it presents a huge opportunity for innovation.

Material innovation- Bio-based and plant-based packaging: Butterfly Mark certified brand The Macallan are using paper boxes made from coffee husks and chocolate pulp to reduce their impact
Importance of Collaboration & Technology: L’Oreal’s partnership with Total creating the first cosmetic bottle made from carbon emission or Ren’s ground-breaking partnership with Infinity Recycling – fully regenerating plastic waste making recycled plastics identical to virgin are just a few examples of collaborative success for positive impact
Transparency: Not necessarily a new trend but one growing in demand. The packaging industry must play its part in communicating authentically sustainability performance not only to brands but ultimately the consumer
As highlighted in Positive Luxury’s Future of Beauty & Fragrance report – these innovations cannot be implemented in silo, a positive impact will only be seen when there are multiple technologies working across the entire product portfolio.

What do you see as the key challenges for the luxury sector?

The biggest challenges for brands and suppliers will be responding to the influx of legislation that is on the horizon globally, including the UK Plastic Tax, Extended Producer Responsibility and single-use bag ban in the United States.

What are you most looking forward to this year?

A successful outcome from COP15 regarding incentives to reduce deforestation.

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