In Sweden Overshoot Day, Sunday, April 21, we Swedes have used up our annual budget of the Earth's natural resources. If everyone on the planet lived like us, there would be nothing left after today.
It certainly doesn't sit well with the oft-quoted Brundtland Commission definition of sustainable development;
"Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs".
Since the UN report was published, we have been repeating this sentence like a mantra, but not much has improved when it comes to our consumption levels. Quite the opposite, in fact. Material consumption in Sweden is as high as 25 tons per person per year, or 70 kg per day. In 2020, the mass of man-made materials was found to have exceeded the mass of all living things on the planet. The fact that we are facing a planetary crisis is a fact.
The fact that Sweden's Over Shoot Day falls earlier and earlier in the year shows that the transition to a circular economy is not happening fast enough. The question is, what do we need to do to speed up the process? There is often talk of a generation gap in the climate debate, but when it comes to consumer advocacy , studies show that gender is a more crucial factor. Men and women generally have different views on climate change, their own consumption and how they contribute to emissions. And they contribute differently to climate emissions through their consumption and lifestyle choices.
Unfortunately, surveys show that men still do very little second-hand shopping. According to a report by Tise (digital marketplace for second-hand clothing) Svenskarnas hållbara köpvanor, almost twice as many women as men shop on the second-hand market. 27% of women are equally satisfied with buying second-hand as new, compared to 14% of men. Almost twice as many women (40%) as men (24%) plan to choose second-hand products over new ones in the coming quarter, according to Prisjakt's Consumer Compass 2024 report.
The fact that so few men shop circularly is often said to be due to the supply. A supply that is created by women who donate to second hand. To create a reuse market that appeals to more men, more men also need to donate to second hand. We also see an overwhelming majority of women who are ambassadors and inspirers of circular consumption. Far too few men have taken on the mantle of sustainability in social media.
If we get the men as circulators and inspirers, we can move Sweden's Over Shoot Day forward in the future. Not just for the sake of the planet and future generations. We need to do it in solidarity with those countries that today lack the means to meet their basic needs. High-consumption countries like Sweden need to reduce their ecological footprint so that other countries have the opportunity to increase theirs, in a way that keeps us within the planet's limits.
But now is the time. As individuals, we need to make changes to ensure a sustainable future for all. It starts with ourselves, with our daily choices. By reducing our consumption, choosing sustainable options and inspiring others to do the same, we can make a real difference to our planet.
Author:
Mattias Ingeson, Secretary General Erikshjälpen
Anette Alm Gustafsson, Managing Director Erikshjälpen Second Hand
The issue of VAT on second-hand goods has once again been raised, both by the government and within the Swedish Trade Federation. Erikshjälpen Second Hand welcomes the discussions that will promote the circular transition, but also wants to bring the non-profit perspective into the debate. Abolishing VAT on second-hand goods does not mean leveling the playing field, but pulling the rug out from under non-profit actors.
In 2016, it was decided that non-profit second-hand shops would continue to be exempt from VAT on the basis of their public benefit activities. The non-profit organizations would, if we compete on equal terms with the commercial players, otherwise "risk suffering from deteriorating conditions with cutbacks as a result". This concern still exists today.
Recently, it was announced that the government is launching an investigation into whether it is possible to simplify the regulations for Corporate that sell second-hand goods and for Corporate that want to donate goods to charity. The Swedish Trade Federation comments on the news that there are no investigations into the VAT rate. "The double taxation that currently applies to second-hand goods sold by commercial Corporate is hampering further steps in the transition. We fundamentally agree with this statement and the double taxation is difficult to defend. However, for the sake of the environment, legislation that addresses the problem of overproduction and the ever-increasing sale of newly produced goods is needed in the first place. Perhaps it should be a little complicated for companies, not so that they choose to discard goods instead, but so that the consequences of overproduction are actually allowed to be both costly and tangible. It is an incentive to review their business idea. It is not circular to continue producing new products and then give away what has not been sold.
It is positive that the Swedish Trade Federation is pushing for better conditions for the entire second-hand industry. We welcome reduced VAT or VAT exemption for the sake of the environment and the transition. But it also raises concerns among us non-profit second-hand actors when our competitive advantages are to be erased. The second-hand market needs to grow and new consumption needs to decrease - but abolishing VAT completely for commercial second-hand shops would distort competition and affect non-profit second-hand shops, which are an important part of civil society.
The better the conditions for commercial players, the harder it will be for us non-profit forces to be heard through the noise. We are already competing against private companies with heavy investors and hefty marketing budgets behind them, where the profits go to the shareholders. With non-profit second hand, the profits go back to sustainable social development through extensive social work, in addition to the environmental benefits of recycling.
Today, non-profit second-hand shops enjoy competitive advantages precisely because we are non-profit;
A further question to consider is for whom is the simplified or reduced VAT intended? Other examples of changing tax rates to drive new behaviors, such as the one on repairs, show that reduced VAT has not led to lower prices for consumers. And thus not a change in consumer behavior. Reducing VAT on commercial second-hand goods would make it easier for businesses, but will it lead to more people actually shopping sustainably?
Non-profit second-hand cannot be compared with the commercial sector. As just one of Sweden's non-profit second-hand operators, we have around 4,000 employees, a large proportion of whom are trainees in work training or wage subsidy positions on their way to or back to a working life.
Whether VAT is simplified, reduced or abolished altogether will have a decisive impact on the competitiveness of non-profit actors in relation to the increasing number of commercial actors entering the reuse market.
We welcome discussions with both the Swedish Trade Federation and the government on how the circular transition can be promoted, while civil society is given continued opportunities to contribute to the benefits of society.
Author:
Annette Alm Gustafsson, Executive Director of Erikshjälpen Second Hand
Cathrine Kylesten, Sustainability Manager Erikshjälpen Second Hand
The circular trade of reused goods is predicted to have a bright future with strong growth in the coming years. Our Second-Hand shops will then become increasingly important as wallets become thinner and the climate more fragile.
The Swedish Trade Federation recently presented its Style Index, summarizing the fashion industry's sales development over the past year. It has been a tough year with an even tougher ending for clothing retailers, and the outlook is no brighter. Clothing retailers recorded an increase of only 0.3% year-on-year in December and a 2% increase over the whole year.
The decline in the clothing trade is a natural consequence of economic development, but we would like to think that part of it also has to do with increased awareness and the realization that the climate and nature crisis is a serious matter that needs to be addressed now. The huge volumes put on the market, with no real demand and no chance of good management at their untimely end-of-life, are a threat to children's safety, now and in the future.
When Erikshjälpen Second Hand now summarizes its year 2023, we can see that circular trade is here to stay. In 2023, sales of adult clothing increased by 8 percent. This means a turnover of 1,268,654 garments in our stores. In total, Erikshjälpen Second Hand also increased its total sales by 10 percent in 2023 and an increase of 9 percent in the number of customers.
Our hope is that fashion producers will allow this period of economic downturn to be a reflection on the problem of volume. In 2023, it has become clearer than ever that there is no circular value chain in the fast fashion system. It is high time for change. Let's see reduced volumes of newly produced fashion on the market and make sure that what is produced is of design and quality that can be reused. This is a win-win for retailers, us and future generations.
Author: Emelie Johansson
On November 16-23, Erikshjälpen Second Hand is launching "Vanliga veckan", with extended opening hours to encourage consumers to shop circularly.
Erikshjälpen Second Hand's "Vanliga veckan" occurs just before the big shopping weekend of the year, Black Friday. "Vanliga veckan" means a week with extended opening hours, but otherwise as a regular week in the second-hand chain's stores.
- We don't need to offer discounted goods to be competitive and we don't need to pretend to be sustainable. We are sustainable in our everyday lives and feel secure and proud of the business we run - 365 days a year," says Cathrine Kylesten.
At this time, retailers are shouting out their discounts while, at the other end, they are being met with various sustainability claims to improve their image. Every year, new sales records are broken, while the effects of the climate crisis are increasingly felt. Legislation, global agreements and climate reports speak volumes - yet Corporate continue to produce, and people continue to consume, new products.
- It is time to change our view of what is a normal way of consuming. For example, how can it be that sleeping in a hotel bed is considered cozy, but at the same time you can't imagine buying sheets second hand? says Cathrine Kylesten.
In the deep recession, Black Friday is being promoted as a kind of 'consumer charity' - an opportunity to shop affordably when money is tight. Instead, the concept encourages people to buy more than they planned, things that are not needed but still cost the planet in terms of raw materials, water, chemicals, energy and toxic emissions.
- More consumers want to shop sustainably and circularly, not continue to drive global warming through their purchasing behavior, says Cathrine Kylesten. "We want to influence the norm so that second hand is seen as something for everyone and want more people to open their eyes to our sustainable everyday life.
Please read Erikshjälpen's debate article on the subject published in Göteborgs-Posten.
What is 'uncool' is not buying second-hand but the rush to buy new.
EU aid reached its highest level ever in 2022, mainly as a result of support to Ukraine. But the erosion of aid also reached new record levels. More than a fifth of EU aid does not meet the basic criteria to be defined as aid. This is according to the AidWatch report produced by CONCORD Europe every year.
EU aid increased to 0.59% of gross national income (GNI) in 2022, compared to 0.48% in 2021. Support to Ukraine and the neighbourhood accounted for almost all of the increase in EU and Member State aid. At the same time, aid to sub-Saharan Africa decreased by as much as 7.8% in 2022, home to the majority of the least developed countries as defined by the UN, and many of the people most affected by the impacts of climate change, war and conflict, growing debt burdens and threats to food security.
Only three countries, Luxembourg, Sweden and Germany, reached the commitment to spend at least 0.7% of GNI on aid. Denmark fell below 0.7% for the first time in four decades.
- At Erikshjälpen, we are fully focused on using our scarce resources to fight poverty and contribute to the Global Goals. The least we can expect in the critical global situation right now is that our decision-makers in Sweden and the EU use the aid so that the most vulnerable are reached first and receive the most, says Daniel Grahn.
As much as one in five aid dollars, as much as €20 billion, is reported as aid but does not meet the criteria. The money does not focus on the people in poverty and oppression it is intended for.
- We work with 3.5 million farmers in 20 countries. Often women. They are struggling against droughts, torrential rains, floods and growing hunger in an economic crisis that has shocked prices of seeds, grains and fuel. "There is a fundamental injustice in how they are affected by climate change, war and inequalities that they did not cause," said Anna Tibblin, Secretary-General of We Effect.
Most of the erosion is due to the use of aid funds to cover domestic refugee costs. This has led to some EU Member States giving as much as half, and in some cases even more, of their aid to themselves in 2022. In total, domestic refugee costs amount to €13.9 billion. Another contributing factor is that Member States overstate how much of their lending is aid by as much as €1.7 billion.
In Sweden, 3.9 billion Swedish kronor (SEK) ended up being used to cover domestic refugee costs, after a year of numerous and sudden budget changes. As the Migration Agency's forecasts turned out to be exaggerated, Swedish kronor (SEK) 2.1 billion was not used. The government, neither the current nor the previous one, has not returned the money to aid activities anyway.
While EU aid is increasing overall, Sweden's aid is decreasing to 0.9% of GNI, and the decline is expected to continue in the coming years.
Read more about Sweden's expected reduction in aid, "Only the Greens and the Left stand by the 1% target".
- It was also appalling to see how much the work was made more difficult for our members and their partners because this and previous governments handled the transfer of money between Sida's and the Migration Agency's budgets so badly. A more stable and long-term system is needed for this," said Anna Stenvinkel, Secretary-General of ForumCIv.
The AidWatch report is produced annually by the European platform for sustainable development and international cooperation, CONCORD Europe. CONCORD Sweden is one of 26 national platforms within CONCORD Europe.
CONCORD Sweden has coordinated the work on the recommendations to the Swedish government on the Sweden side of the report. Here is a short version of them:
Find out more about CONCORD Europe.
Link to the full report: Aidwatch 2023
Author: Lena Elf