RFID and retail sustainability: how RFID labels can support green initiatives
RFID technology can be incredibly beneficial to retailers where sustainability is concerned. The data it offers can be used to reduce emissions and overproduction while giving customers crucial information that can encourage garment circularity. However, the Checkpoint team loves a science-based approach, and we're very open about the potential impact of using RFID for sustainability. Here's how RFID can support sustainability in retail.
Are RFID tags sustainable?
Before we delve into specifics on how RFID can support retail sustainability initiatives, we should clarify how sustainable RFID tags are.
If we’re being honest, RFID labels themselves aren’t particularly sustainable. They contain a silicon chip, a copper or aluminum antenna, and a PET-based (Polyethylene Terephthalate) laminate layer — materials that account for most of RFID’s carbon footprint.
Here at Checkpoint, we’ve spent a lot of time testing the materials used for RFID to find out how we can make more sustainable labels. This includes testing paper-based inlays and recycled PET alternatives.
Although other manufacturers may make sustainability claims around RFID materials, we’d rather be honest and use science to help you reach your goals. Extensive testing has shown us that the chip makes the biggest difference to RFID’s carbon footprint compared to the other materials or production methods used. Want to know more about this process and how to select a chip that meets your sustainability goals and performance needs? Get in touch — we love talking about it!
On top of this research, we also worked with Germany-based research consultancy PTS to learn more about the impact of our RFID labels during the recycling process. We discovered that our labels have a 94% curbside recyclability rate, so their impact on the household recycling process is minimal.
Read: how RFID labels help you work toward sustainability
If you want to make sure you’re getting a solution that aligns with your sustainability goals, consider working closely with a global labeling partner who has the knowledge to advise on the best ways to limit your impact and the resources to create a customized solution with you.
Does RFID help in sustainability?
Stops over-production
Apparel brands are some of the worst offenders where unsold inventory waste is concerned. Of the 150 billion fashion items manufactured annually, 45 billion are left unsold and sent to landfill (or burned!). Production volumes are still creeping up year on year, wasting money and harming the planet.
RFID is key to supply chain sustainability best practices. Retailers who embed the tech into their garments at the source can gather real-time data on their stock, which can build a clearer picture of supply and demand. Not only does it generate a wealth of data around the sizes, colors, and products each brick-and-mortar store sells, but it also stops panic ordering by helping vendors understand which materials they need to order and when.
Overproduction doesn’t just hurt the planet; it can also ravage your bottom line. By only producing what you need (and what you can prove is selling), you'll have more capital to spend on the stock that works for you.
Slashes stock movement
Carbon emissions from stock movement make up a large portion of retail’s environmental impact and account for 5–8% of global emissions. As of November 2022, retail supply chain emissions were still rising despite fashion industry titans committing to a 55% reduction by 2030.
Inventory insights supplied by RFID data can help retailers and their suppliers plan more effectively. Real-time reporting allows both parties to identify trends that make planning regular shipments easier, reducing the frequency overall.
RFID data can also reveal sales trends for each retail touchpoint, including local stores, making allocating stock from the point of manufacture easier. This can help cut back on shipping between locations.
Improves garment circularity
RFID technology could improve your environmental impact by giving customers detailed information on care, repair, and end-of-life recycling. For example, the Checkpoint DUÉ Mini Label blends RFID tech with NFC, which can be scanned with any NFC-enabled smartphone. You could take customers to video tutorial content, a web page with detailed value chain info, and more.
Garment circularity is a hot topic for the fashion industry now that Digital Product Passports are on the horizon. By 2026, the European Commission requires all retailers selling in the EU to give detailed product information to customers upfront to encourage informed buying and better circularity. RFID is an excellent way for retailers to accurately record and store detailed value chain information as part of this initiative.
Gemini Tag
Where RFID tech is excellent at generating data on products, many brands are choosing to use QR codes to deliver the info to customers. The humble square, which has been around for decades, is seeing a mini renaissance thanks to its simplicity and ease of use for the consumer.
Our latest invention, the Gemini Tag™ gives brands a way to provide this information twice within the same garment and, crucially, in one step during the production process. The twinned QR codes are available on the garment and the hangtag, so customers have access to detailed product info pre- and post-sale.
