What Makes a Product Sustainable? A Guide for Manufacturers and Retailers

From materials to manufacturing and end-of-life considerations, sustainability spans the entire lifecycle of a product. In this guide, we break it down in a way that’s easy to understand, practical to apply, and helpful for any business looking to step up its sustainability game. Whether you’re just getting started or looking to refine your approach, this guide has got you covered.
 

Why It Matters: The Business Case for Sustainability

Before we get into defining sustainability in products though, let's consider for a moment why it's important to do so. 

Sustainability isn’t just a nice-to-have, it’s a smart business move. More shoppers want sustainable products and are willing to pay higher prices for them. There is growing consumer demand for brands that can show real genuine sustainable principles being applied. 

In addition, there are cost and efficiency savings to be had. Sustainable practices can cut waste and improve operational efficiency. 

Another thing to consider is regulatory compliance. Environmental laws are getting stricter, and businesses that stay ahead of them will avoid future headaches.

So, consumer demand, cost savings, and regulatory compliance are 3 very obvious reasons why forward-thinking brands should be considering their sustainability strategy very seriously. And studies show that brands committed to sustainability outperform competitors in long-term profitability. For instance, 

• This research from the Harvard Business School indicates that companies with robust sustainability policies significantly outperform their counterparts over the long term, both in stock market and accounting performance.
• The analysis from this McKinsey & Company Report shows that companies that achieve better growth and profitability than their peers while improving sustainability and ESG outgrow their peers and exceed them in shareholder returns.

It’s easy to see then how planet-friendly thinking can be great for business, especially in the manufacturing and retail sectors. With that in mind, lets dive into what makes a product a sustainable choice. 

The Foundations of a Sustainable Product

So, what makes a product sustainable? At its core, sustainability comes down to three key areas:

• Environmental Sustainability: Reducing carbon footprint, minimising waste, and using renewable resources.
• Social Sustainability: Ethical labour practices, fair wages, and safe working conditions.
• Economic Sustainability: Ensuring long-term business viability without exploiting natural or human resources.

A truly sustainable product balances these three elements while still being useful, practical, and marketable. 

Later, we’ll discuss why consumers and manufacturers don’t always agree on the specifics of what makes a product sustainable (and show you the data that supports this insight). First though, let’s break down The 5 foundations of a sustainable product.

1. Materials & Sourcing: The First Step in Sustainability

One of the biggest factors in what makes a sustainable product is what it’s made from. The right materials make all the difference. There are different ways a manufacturer can legitimately claim the materials that go into their products are ‘sustainable’ - for instance:

• Renewable or Recycled Materials: Using resources that can be replenished or repurposed, like bamboo, organic cotton, or recycled plastics.
• Ethical Sourcing: Making sure raw materials come from responsible, sustainable sources (think FSC-certified wood or Fair trade cotton).
• Low-Impact Production: Opting for materials that require less water, energy, or chemical processing.

One of the biggest area’s of improvement brands can make with materials is to swap out traditional plastics for biodegradable alternatives, cutting down on long-term pollution.

2. Manufacturing: Reducing Environmental Impact

The way a product is made is just as important as what it’s made from. In fact, we’ve seen data that suggests the majority of sustainable product manufacturers prioritise their manufacturing process over anything else when it comes to green principles. Sustainable manufacturing means:

• Using Renewable Energy: Switching to solar, wind, or other clean power sources.
• Minimising Waste: Reducing production leftovers or repurposing scrap materials.
• Avoiding Harmful Chemicals: Keeping the environment and workers safe by choosing non-toxic production methods.
• Sourcing locally: Reducing carbon output by minimising the distances between raw material gathering, production, and delivery.

A good example of this is the changes some textile companies have embraced to use closed-loop water systems, cutting down on waste and pollution.

3. Product Design: Built to Last (and Be Fixed!)

A sustainable product isn’t just about materials and manufacturing. It’s also about how long it lasts and what happens when it breaks. Key principles include:

• Durability & Repairability: Making products that don’t need replacing every year.
• Modular & Upgradeable Designs: Letting customers swap out parts instead of tossing the whole thing.
• Timeless Design: Avoiding fast trends that encourage throwaway culture.

Product Example: Fairphone, is a modular smartphone brand that lets users replace individual parts, making their devices last much longer. Not only do they produce products made from recycled materials (which can be repaired more easily than the average mobile device), they let you trade in your old devices to be used in new product production. This creates a much more circular approach to product design and manufacturing. 

4. Packaging & Distribution: Less is More

Sustainable packaging and shipping can make a huge difference. Packaging and logistics is one of the biggest contributors to waste in the manufacturing supply chain and whilst there are some commendable efforts to reduce this, the industry as a whole still has a long way to go. Some key areas individual companies can focus on include:

• Minimal & Recyclable Packaging: Cutting unnecessary wrapping and using compostable or recyclable materials.
• Eco-Friendly Shipping: Opting for electric delivery vehicles or carbon-neutral shipping.
• Low-Waste Retailing: Encouraging package-free options or reusable containers.

Some companies now offer refill stations for products like shampoo and cleaning supplies to cut down on packaging waste. This is particularly engaging because it not only reduces waste, it also forces the end customer to consider planet-friendly choices more at the point of purchase. 

5. End-of-Life: The Circular Economy Approach

A key part of what makes a product sustainable is what happens when it’s no longer useful. 21st century consumerism has created a monumental waste problem and unfortunately, the majority of products we buy still end up in landfill. Manufacturers and retailers, have a growing need to address this (some would say an ethical responsibility). Some key considerations are:

• Recyclability & Compostability: Designing products that can be easily broken down and reused.
• Take-Back Programs: Encouraging customers to return used items for refurbishment or repurposing.
• Cradle-to-Cradle Thinking: Ensuring every component can be reused or reintegrated into new products.

Brand Example: IKEA’s buy-back program lets customers return old furniture for resale or recycling, keeping waste out of landfills. They were one of the first major retailers to offer this and it really sets a new standard in corporate sustainability thinking. 

Consumer vs Manufacturer perceptions: A gap in understanding

In a recent study, the Sustainable Product Index Report revealed some interesting insights into how end customers and manufacturers seem to disagree on what makes a product sustainable. 

When asked about their preferences, consumers revealed that the product being made from sustainable materials was most important to them, followed closely by its ability to help them reduce their own waste or energy consumption (read more on pages 9-12). 

Brands however, tend to highlight their manufacturing processes (pages 14-15) as the key sustainability factor (perhaps because that’s what they’re closest too)… This mismatch means manufacturers and retailers may be missing an opportunity to connect with eco-conscious buyers. If you’re marketing a sustainable product, make sure you’re empathising with what consumers actually care about.

Take a deep dive into that insight in our article here or read the insights in full by downloading a free copy of the 2025 SPI Report. 

Transparency and avoiding greenwashing

It’s important to mention, and unfortunate to say that because sustainability has become so important in recent years, greenwashing has exploded… Greenwashing is a broad term and can be applied in lots of ways, but essentially its claiming your product is eco-friendly or ‘green’ when in fact its not, or embellishing or exaggerating its green credentials. 

The good news though is people are getting smarter about sustainability claims and are starting to see more clearly when a brand is not being truthful. And more and more, calling them out for it. 

How can you be one of the good brands then, that avoids greenwashing? Honesty is key, backed up with some clear communication to customers:

• Certifications & Standards: Using verifiable, third-party labels like B Corp, Fairtrade, or Cradle-to-Cradle.
• Clear Marketing: Avoiding vague claims like “eco-friendly” and instead giving real data and proof.
• Consumer Education: Helping customers understand the impact of their purchases.

A great brand example of someone doing it right is Patagonia. They are known for being transparent about their supply chain and sustainability efforts, which builds trust with consumers.

If you want to learn more about greenwashing and make a statement of intent against it for your brand, I encourage you to check out the good work being done by The Anti-Greenwash Charter. They help businesses ensure their marketing is clear and honest and the project is providing great benefits to those who want who value transparency in customer communications. 

Concluding thoughts 

So, what makes a product sustainable? I hope this article has given you some insight and topics to start thinking about in your own product development or purchasing habits. 

It’s about thinking beyond the immediate sale and considering long-term impact. Businesses that embrace sustainability aren’t just doing good for the planet, they’re building stronger, more resilient brands.

Next steps for brands:

• Look at your current materials and see where you can make swaps.
• Reduce unnecessary packaging and explore refillable options.
• Consider sourcing locally and how your delivery options impact overall carbon footprint.
• Set up a take-back or repair program to extend product life.
• Be transparent about your sustainability efforts, customers appreciate honesty!

By taking small but meaningful steps, you can create products that are better for both people and the planet. The future of business is sustainable, so why not get ahead of the curve?