When global fashion brand Tommy Hilfiger combined sustainability, inclusion and innovation in one team with a mission to drive purposeful business transformation, it was essential to embrace new ways of working.

In her latest podcast episode, Given CEO Becky Willan spoke with Esther Verburg, Executive Vice President of Sustainable Business and Innovation at Tommy Hilfiger Global & PVH Europe, about how their unique approach has transformed what success means for their iconic brand.

Listen to Purposing to  get the insider's story on how Tommy Hilfiger brings purpose to life by deeply understanding customer needs, finding new ways of changemaking within the business, and combining diverse skills, experiences and perspectives under one mission.

Do you want to learn how to build a purpose-driven brand from the company that’s helped some of the world's largest organisations become purposeful? Download the Insiders Guide to Purpose HERE.  

Apologies for the typos, this is an AI transcription

Purposing - Esther Verburg

One of the challenges is though, for many years, and despite the best efforts of brilliant thinkers and practitioners, sustainability and inclusion have remained a side project in lots of big companies with teams focused on report writing, stakeholder engagement, and delivering initiative after initiative rather than innovation and impact.

But what if you took a different approach? What if you made sustainability, inclusion, and innovation, the driving force behind your purpose? And what if you made a mission of transformation, not about incrementally changing business as usual? So that's what this episode is all about. What's the relationship between sustainability and purpose and how do you make a sustainable business transformation, the engine of your purpose-driven mission?

From Given, this is Purposing, the podcast that lifts the lid on how to run a truly purpose-driven business. I'm Becky Willan, and with the help of leaders from some of the world's most recognized brands, I'll be demystifying this often misunderstood topic into clear, actionable advice you can use in your own business. This week I'm joined by Esther Verburg, Executive Vice President of Sustainable Business and Innovation at Tommy Hilfiger.

Building the best team for delivering will change and impact and maintain momentum and drive progress in every part of your organization. Before I speak with Esther, let's take a quick look back at her career to learn how she became one of the most well-respected business leaders in a sustainable fashion.

Esther's story began somewhere you might not expect.

But we realized that really what we did not have was a point of view where it connected really to the brand and also to the consumer. And by that time we were also more ready to start speaking about it to the consumer. And we realized that if we don't actually make this a part of our brand and our brand DNA and our brand heritage, then it's gonna be very difficult to actually speak to the consumer because what's your point of view?

So when we talked to a forum that we called Future Voices, that group was really strong about social justice needing to be one of the causes. So at that point, we said, Okay, we want to have, something that's dual and equal between circularity and inclusivity and we started making the waste nothing, welcome all strategy.

After all, the people in your organization are also a reflection of the consumers outside.

Such as raising brand desire, creating more visibility around the brand, and also connecting more digitally and directly with consumers. Underneath all of that, we specified waste nothing, welcome all as the how. So we really looked at, okay, why are we doing things? What are we doing? And then how are we doing it?

And we felt waste nothing, welcome all should be a guiding principle that is actually infusing everything that we do in the organization. Whether you are working on a product or whether you're working on a brand experience, or whether you're working on connecting with consumers, you should take that into account and see how that can influence your day-to-day business.

But tell us on a really practical level, what are some of the things that you've done to drive progress around these two big topics? And I guess even more specifically, given that some of the step change came from that desire to make sure that this helped you connect better with your consumers. How have you done this in a way that really builds that brand desire and relevance?

We had a solar roof installed on our warehouse in Venlo, which was, I think for a short while, even the most powerful in the world. So we're very proud of that. On the inclusivity side, it's really about, on the one hand, how you show up as a brand and what the experience that you get is. So there's a lot of work that we did there with our People's Place program.

So collaborations that actually give a voice and a platform to people from the black and brown community. So the collaborations with Romeo Hunte and Patta were a part of that, but it's also of course about how you show up internally. And there we've done unconscious bias training, for instance, and I think an important part of showing up as a brand is also the way that we did the shows for a number of years.

You could see that inclusive thinking and how we show up as a brand, really has infused the way that we've done our runway shows. The Zendaya shows were an example of that, but also the last show where we actually cast talent, not out of the the regular model pools, but there was a lot of street casting actually done. Really with the idea to show different people with, you know, their own powerful stories, but not the ones that you normally see.

If you're using leather that's made from an alternative source.

So it's still about style, it's about pricing, it's often about uniqueness, and then it's also about sustainability or impact and so we've seen it most in the circular business work that we've done because for the last two, three years we've now been running different versions of re-commerce and rental and things like that.

And I think it was a big learning for us. Like the first re-commerce venture that we launched, we're very proud of it. We had thought it all out. And we launched it and it didn't really work. And so we really had to go back and say, Okay, actually we fell in love with the solution before we actually really tested what the problem was.

So also in this area, it's super important to remain very connected to that consumer and check with that consumer what they actually want. So we redid that strategy and said, Okay. A few steps back, let's do a lot more pilots to actually validate what we can do in this area and what's the value that we add as a brand because clearly, the consumer wants more, you know, secondhand shopping, like that market is booming.

It's predicted to be, I think, 50 billion in a couple of years. So it's massive. But what is the role that you play as a brand? So we're now looking at, okay, how with merchandising do we do that? How with working with partners, do we do? Where does that consumer actually go? What's in their consideration set?

And also there we found it's not about sustainability. So no, they don't want actually a product that you do up to the highest quality, and then it's still rather expensive. They expect something that is more fairly priced, with a level of uniqueness. I think our long-term innovation program is probably driven by consumers also because we know that we wanna move in that direction, but it's also driven by impact and by the knowledge that you know, if we wanna move, and still be in existence, in 10 years, 20 years, we'll have to find alternatives to cotton. The amount of waste that we produce as an industry is just way too big and the amount of land we have is not enough to foresee everyone's needs, be it feed or food or fuel, or fiber.

So you can't sort of just keep on using cotton, virgin cotton, and then just throw it away. After one or two seasons, you will have to find a solution for that waste problem and turn all textiles into new ones. So that, I think is the driving force behind our innovation program in that area. And we just this year concluded a contract with infinite fiber, one of the innovators, but also working with some other innovators on collaborations.

We had a circular business team. We had an innovation team. They were all sitting in different areas. But if you look at these functions, actually, there's a lot of overlap. There is no sustainability progress without innovation. We were just talking about the fibers. It's one example. There's no circular business without understanding.

How do you make a new product actually in a way that lasts and then also has the right data, for instance, to be able to be taken up in circular business models? The whole fact is that we created a strategy, with inclusivity and circularity as the two pillars. There's also a lot of overlap there and innovation in the area of inclusivity.

If you think about on-demand models, for instance, if you put these functions together, you actually stimulate the collaboration between those functions, and you make it easier to find themselves and also to work together and strengthen each other. And there's more weight, also, and there's a synergy effect.

But besides that, we also realize that all of those functions actually are functions that inherently try to transform an organization. And that's different than a lot of other business functions because most business functions are about running the business and we're all about making the business different.

And that is a really different way of working. Yeah. I strongly believe in learning also on the how. How we do our job between those functions and we see that happening. So there's a lot of, Oh yeah. Oh, let me learn from that person. Oh, let me connect with that person within the group now, which is wonderful to see.

Because as you said, this is about changing the business. So what does that actually look like in practice?

Nothing changes if we just work on it. We're a relatively small group, so change always happens with the business. So we really see that role as an igniter and an accelerator. And what it looks like in practice, I think is we do a lot of convening. We do also a lot of Kickstarting, our mandate is to lead that journey, right?

And to set that North star to say like, Okay, this is where we wanna end up as an organization. And then to make sure that there is the buy-in for that. So that was for a large part done in the strategy that we set. By the way, also in a very co-creational way. So I think it never works as a department, you set your goals in isolation.

You really have to do it with the business only because there is an immense amount of wisdom in the business, and it always gets better if you work together. We also still do a fair amount of project management. What we always try to do is to make sure that we go in a movement from kickstarting something, developing something together with the business, and then at one point handing it over.

So that's really something that goes for all of the functions in our group. . What I do think we should do more of, and that this is one of the things that, I think we can improve in is the monitoring part. So the monitoring and holding people accountable.

In that ownership, I think that's where the power sits because that's where the business starts to drive things. And then you have all of a sudden hundreds of people driving forward things instead of tens of people. But still, even within that ownership phase, I think there's a lot of nuance to how you make sure it keeps being set at the top of the agenda.

How do we make sure that it is actually really, truly embedded in the target setting, in the priorities? And how do we also make sure that we, yeah, that we measure that progress? I often see in a lot of professionals within our area that, you know, there is a lot of energy around inspiration, visioning, future, like getting things started, and maybe a little bit less energy about monitoring and seeing where we are and making sure that the ends are tied up.

Because that means that these topics are always part of the decision-making on a day-to-day basis and of the priority setting. And even if it remains a challenge, I also don't wanna pretend that that's all rosy and that that solves the governance issue because it doesn't. But it does allow you to always be part of the conversation of the agenda setting of the priority setting.

And that is a step I think that every organization should go and move towards because of that seat at the table and that opportunity to interact. On the same level is really important. It infuses all of the areas of the business. It should infuse all of the areas of the business. So it isn't part of only marketing or only HR.

And if you do it like that, I think it will be driven by that. It doesn't mean that it's always easier if you don't have it. Like if we look at inclusivity, I think, you know, there is a lot, obviously, a really important part of inclusivity is making sure that you have an inclusive culture and that you have

inclusive talent lifecycle practices, those are all a real part of the day-to-day of HR. And there's a lot to be said, I think for having an inclusion function that is maybe part of that, but then you miss out on the whole community and the whole market aspect, which is equally important. So how do we show up as a brand and how do we connect basically those two things?

So that seat at the table allows you to actually talk and see all of those elements and make sure that is taken into account.

The second one is to set everybody up for action. Because as I said, we don't do the change. So if we do our work well, we have to set others up to make the change.

And the third one is embracing a passion for learning. Because of all the work that we do in all of these areas, it's a matter of pioneering.

And if you're afraid to fail, you are probably not trying enough. And that is really hard because in, I think, a regular business context, failing is not always comfortable, but failing is necessary to learn. Like you can't pioneer if you never fall.

So what are your biggest learnings about how you do that well? So on a really practical level, you know, what's worked to drive that engagement and ownership, and what are the failures that you've embraced in terms of not getting it right, the first time?

If I look at the sustainability side of things, and I think it's still sometimes a pitfall, is that you create a lot of awareness and noise about things. And awareness is good. People need to be aware of the problem, but it can't stop there. And if you do too much awareness raising around things and you rally people, but you don't have anything behind that, then it becomes really difficult.

So at that point in time, we really switched to making sure that it's very clear to people, like how do you integrate sustainability or inclusivity measures into your day-to-day business, and that's something that we've always kept up most of the time. The most motivating thing, is if you see your colleagues from product development or you see your colleagues from IT and you hear them talk about, Hey, why am I developing this program?

Or look at that initiative, that's really cool. That's where people start to believe, Okay, everybody in this organization can actually change something.

And those are around governance. So getting the right structures and processes in place to support decision making. It's about leadership because clearly, you've got to have leaders who set the right tone and kind of role model so that they can inspire teams into action. Colleague engagement, as you've talked about, is really important in terms of creating conversations, and sharing stories that keep everyone engaged. Brand and innovation so you know, how do we integrate these ideas into brands, not simply just making new kind of marketing campaigns, but in everything from the product to the pricing. And then as we've touched on metrics and measurements, so you know, how do you identify the right indicators and data to really measure progress and impact?

And I was wondering, based on your experience, are some of these easier to deliver on than others? And maybe particularly in the context of the setup that you have at Tommy and kind of why have you found that experience.

So for instance, if you look at inclusivity or, inclusion, diversity, it's a very difficult topic and often people feel very, yeah, feel uncomfortable talking about it. People are afraid to make mistakes or how do I create a goal? So, before you even start about how I create more diverse talent practices or how I create a more diverse culture, the starting point is already, how do I create a better environment to actually have a conversation about it?

So we did listen and learn sessions. You know, if I look back at our years of activation, creating those kinds of events and creating space for conversation and for sharing stories, that's always possible.

I also think from a brand and innovation perspective, like to think that through formally and structurally, maybe more intricate, but at the same, product or service, if you're service-oriented, is a really tangible thing that a lot of people in your organization actually know a lot about. So starting to change something in the product is, also, I think a good starting point.

I often find that the debate around it takes place too much in the area around like, okay, creating the culture and, and creating a better space for everybody. But let's not forget, this is also about good business, like a diverse population within your company make sure that you can actually innovate and that you have the most complete input for innovation and for developing products that actually speak to communities around the world.

I would like all of our products to be designed in a circular way. By that time, we should be definitely on a hundred percent sustainable materials as well. But then I would also like to see some of the more innovative ways of doing business. So the on-demand part is less waste creation with on-demand systems, but also on-demand, more products that suit the consumer specifically.

I would like more services and products that aren't based on virgin resources. So yeah, quite a bit there. I think that we still have to do it, but we're on our way.

Because measuring whether something is or is not a circular product or a circularly designed product, is not so easy. And then we have a lot of innovation on the way, in the area of on-demand and also in the area of digitally created fashion. So that's a real focal point. For instance, you also saw the runway show where we had a physical runway show, but we also had a digital runway show in Roblox at the same time.

So we just did a project around digital twinning so you can actually buy the same product for your avatar. As you can buy for yourself in real life so you can make sure that your avatar actually really looks like you or vice versa in your favorite Tommy outfit. Yeah, and it's very exciting also to link those different areas and you create a sort of an ecosystem within the organization that's not necessarily grouped together, but that's all working around the same topic.

It's very powerful.

Make your team the change makers on the inside, and be clear about the change you're trying to create, the mindset you need, and your plan of action.

Co-create with your team to unify diverse skills, experiences, and perspectives under one mission. Then make it easy for other parts of the business to get started and stay involved, and to use their expertise and resources to drive projects further.

Bring the customer into your world. The purpose, sustainability, and inclusivity agenda in your business can feel pretty far removed from your customers' daily lives. But if you want to create business value as well as a positive impact, always start by understanding your customer needs and expectations first, and then work back.

Adopt a test-and-learn mindset, celebrating the journey, successes, and failures.

Not simply within your own team, but across the business. That's about finding high-impact moments to shout about the great things you've achieved, celebrating efforts and achievements, and finding time for reflection to learn, grow, and come back stronger next time.

If you'd like more practical advice on building a purpose-driven business with brilliant insights from people like Esther, download the Insider's Guide to purpose at givenagency.com/insidersguide.

Purposing is produced by Fascinate Productions