Neiman Marcus Surpasses 2 Key ESG Goals
Neiman Marcus Group has extended the life of more than 1 million luxury items since 2021—two years ahead of schedule—through circular services, including alterations, repair, resale and donation.
These circular initiatives were the first set of goals the company set when it first established its environmental, social and governance (ESG) strategy three years ago, CEO Geoffrey van Raemdonck wrote in the retailer’s third ESG report, released this week. The Dallas-based luxury retailer’s analysis of customer trends found that shoppers who got items altered or repaired spent 73 percent more over 12 months after they received these services.
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“I am proud of the meaningful progress we’ve made in the area of sustainability and advancing workplace equity, as we continue ‘our journey to revolutionize impact,’” van Raemdonck said. “These achievements are a direct result of leading with love in everything we do to ‘make life extraordinary’ for our customers, associates, brand partners and communities.”
The company found that alterations, repairs and resale of customer-owned items have all nearly doubled since 2021, though alterations on new items were the driving force behind 2023’s progress. In second place was repairs to returned, damaged and excess inventory to the company’s Southeast Service Center, to be sold at Neiman Marcus Last Call. Resale with Fashionphile and donations through the Give Back Box were the third and fourth biggest drivers, respectively.
Neiman Marcus Group also increased racial and ethnic diversity in leadership roles, at the vice president level and above, to 21 percent by applying “evidence-based practices” to remove bias from the hiring, development and retention experiences. This is ahead of its stated 2025 goal.
“To make the greatest impact, we work cross-functionally to ensure all teams are held accountable across the business,” Eric Severson, chief people, ESG and belonging officer, said. “Over the past year, we’ve prioritized investing in key roles, systems and infrastructure to drive progress as we continue integrating ESG into our direct operations.”
Neiman Marcus cut Scope 1 and 2 emissions by 42 percent in 2023, aiming to hit a 50 percent reduction by 2025 off a 2019 baseline. The company believes that it will reach that goal this year. During fiscal year 2022, Neiman Marcus screened its Scope 3 emissions and found that purchased goods and services, downstream transportation and logistics represented about 92 percent of this output.
“We continue to address these categories through supplier engagement initiatives with Guidehouse and the U.S. Environmental Protection Agency,” the company said. This included getting 17 brands and vendors like Eileen Fisher and 7 For All Mankind to enroll in Guidehouse’s Supplier Leadership on Climate Transition program and complete training courses to help them measure emissions last year.
“As one of the premier luxury fashion retailers, our deep relationships with the U.S. luxury customer and the world’s most desired brands allow us to further influence positive change on the industry,” van Raemdonck said. “We know that empowering others to join us in our efforts amplifies our collective impact.”
Fifty-seven percent of electricity was renewably sourced; the company targets 100 percent renewable energy by 2030. Energy efficiency projects, done in partnership with Trane, reduced energy consumption by roughly 3.5 percent in 2023.
Meanwhile, advancing sustainable and ethical products remains a key focus.
In 2022, Neiman Marcus and Bergdorf Goodman’s Fashion for Change and Conscious Curation edits gave customers a way to shop by value and filter by sustainable materials, responsible manufacturing, diverse ownership or transparent supply chains. In 2023, sales from products in those edits rose to 7.4 percent. Over 400 brands including Stella McCartney and Triarchy were part of these edits.
Neiman Marcus also continued advancing workplace equity by “cultivating a culture of belonging.”
The company’s partnership with the National Minority Supplier Development Council (NMSDC) supported this effort. It gives diverse-owned brands access to resources and tools that help them scale through training and other measures. This year Neiman Marcus wants to certify 25 diverse-owned suppliers through the program.
That culture of belonging extends to the community, too. In 2023, the Texas company supported its first cohort of 10 Neiman Marcus Group x Fashion Scholarship Fund (FSF) recipients, awarding $10,000 to undergraduates student at U.S. universities who demonstrated talent and commitment to advancing sustainable and ethical fashion.
“Thanks to this partnership, students are embarking on impactful careers within fashion—including opportunities at Neiman Marcus Group,” Peter Arnold, executive director at FSF, said. “We look forward to watching our partnerships grow as we welcome the newest class of 2024 NMG x FSF scholars later this month.”
