Blue Cast: Diana Verde Nieto on Luxury’s Quiet Innovation and Cultivating Culture
Blue Cast is a podcast series from the TENCEL™ Denim team. Each episode features a conversation with a special guest from within the industry or the fringes of the denim community. The following is a recap of Episode 513.
Quiet luxury pertains to more than just a fashion trend, as high-end brands tend to keep mum on their sustainability efforts. But just because they’re not loudly publicized doesn’t mean their initiatives lack impact.
As sustainability expert and “Reimagining Luxury” author Diana Verde Nieto told Lenzing’s Tuncay Kilickan during the latest episode of our Blue Cast podcast, these labels have often been innovation leaders when it comes to greener models. And much like the runway looks that swiftly trickle down to the high street, luxury brands have significant influence on the rest of the market. They also have a multi-generational customer base between the firsthand and secondhand markets.
“Although people perceived that the luxury industry has been behind when it comes to adoption of sustainability practices, perhaps that is misunderstood and confused with being quiet about it. That doesn’t mean that the luxury industry is not innovating,” Diana said. “In fact, the luxury industry is one of the most innovative industries in the world when it comes to sustainability… These industries, which are the forefront of excellence, must innovate to keep in the forefront of excellence.”
One way in which luxury is a frontrunner is establishing vertical supply chains, as companies like Moët Hennessy Louis Vuitton (LVMH) have acquired factories to own more of their production. With this internalizing of suppliers often comes investment in the facilities, which benefits not just the owner but also the vendor’s other brand customers. This strategy will also serve them well in the current trade environment. “The companies that have onshore and have vertically integrated supply chains are the ones that are winning when you have a tariff war and climate change,” Diana noted.
If they are not directly owning factories, luxury brands are partnering with their supply chain to drive change. Prada is among the labels that has issued green bonds to factories to fund sustainable improvements. A bunch of brands also support sustainable startups through incubators or funds.
Published last year, “Redefining Luxury” is about how the luxury industry fits into the sustainability sphere. Prior to becoming an author, Diana worked in sustainability for more than two decades, first as the co-founder of a sustainable communications consultancy and then as the co-founder of Positive Luxury, the consultancy that introduced the Butterfly Mark certification. Her latest chapter is Edify Collective, a micro-learning platform for sustainability and critical skills.
In a challenging macroeconomic and environmental time—even for luxury brands—Diana suggested focusing on achieving efficiencies, and one way to do this is through professional education to improve productivity and combat apathy. Along with a need for skills training, one of the things holding companies back is a lack of productivity that stems from “diluted” culture courtesy of the pandemic. “The lack of proximity and physical contact has deteriorated culture, and culture is what unites people,” she said.
The other corporate culture obstacle to overcome is the generational divide. Through her time as a visiting professor, Diana has learned more about younger groups’ mindsets and has seen them put in the work. “If you know how to get the best out of them and inspire them and motivate them—I can’t claim I know how to do that, but I’m asking them to educate me to how to do that,” she said. “And it’s something that I would definitely suggest to leaders, to have a shadow board of youngsters and to get reverse mentoring, because reverse mentoring has changed my life.”
Listen to the episode here.