Sustainable Fashion: Circularity, Conscious Design, and Community Impact ft. Lisa Diegel (Faherty Brand)

[Host: Lauren Scott] Welcome back to another episode of The Resilience Report. We know that our listeners love when we focus on businesses that are really disrupting their respective industries, but we especially love it when we get to talk to some of the hearts and minds behind the business who are really making that change. And today's guest is really kind of at this beautiful intersection between those spaces, and really embodies that. So with that I would love to welcome Lisa to the show.

[Guest: Lisa Diegel] Hi, Lauren, thanks so much for inviting me. I'm really happy to be here.

So maybe to start us off, for those who are a little bit less familiar with Faherty Brand and the work that you're doing there, could you maybe just give a little bit of an introduction? And then I would love to hear more about all of the deep sustainability work that you're doing. Maybe we could start because it is in the fashion space on the materials piece itself.

Sure. So Faherty brand is a family led apparel and lifestyle brand. We're based in New York, and we have 78 stores now across the United States as well as an E-com and wholesale business. And you know, I think Faherty is really special, because it is family-led, and the family is very focused on sustainability and social impact. And I guess, going back to the beginning, Faherty's 1st product launched in 2013, and it was a men's swim short. That was the 1st product they ever made, and it was made of recycled polyester. So from the start, Mike Faherty, who is a co-founder and the creative director has been, you know, focused on using lower impact materials. And this has trickled through our entire product assortment. So in 2024, 72% of our fiber volume was responsibly sourced. Lower impact materials, such as organic cotton or organic materials, recycled or regenerative materials. We have a goal of 85% for the end of 2025, and then 100% by 2030. And I often get asked, you know, why do we need that 5 years for that? That last 15%? And I think you know, switching fibers can start to get difficult when you have fiber blends, and there may only be, you know, a small percentage of. you know. Spandex, for example, you know, might be one or two % spandex in a material, and so that can be hard to transition into the into lower impact. Though I do have to say in fall, we're introducing a bio-derived Spandex. And I think this is a very yeah, a very exciting 1st step in in that space.

And I think that makes sense, too, that last percentage. I always kind of equate it to weight loss, that it's always those last few pounds that are the hardest.

So true.

Beyond materials as well, you definitely are leaning into and embracing I think, this call from the sustainability space to be more transparent. And this is definitely true when it comes to supply chain, which we know in the fashion world must be extremely complex. So how are you tackling it maybe with your supply chain, and then, even more broadly, with the product, lifecycle overall.

So far, we've identified and mapped our tier-one suppliers which are our manufacturers. And then we've gone into tier two, which is our raw material and trim suppliers. So we partnered with a company called Retraced, and they are a vendor management and traceability platform, and this has really made that process of collecting compliance documents, certifications, mapping connections to various facilities, just made it much easier. And this, you know, is building and putting us in a really good position to eventually trace our products directly to the source. But in order to do that we still have some work to do. So we, you know, when next year we'll start working on our tier tier fiber suppliers and then tier four at the farm level. So I feel like you know we still have work to do here, but it's, you know. We just continue to keep going further and further into the supply chain, and I think you when you speak of transparency just in general, I think it's so important to keep sharing this information and not feel bad if you have to. You know, we haven't mapped our whole supply chain yet. And that's okay, because it's really hard work. And it takes a lot of time. So you know I'm so impressed with brands that have mapped it all already. I think that's incredible work, and they're very inspiring for me, and we will get there, but it'll take some time.

And another area, too, when I was perusing your sustainability report, which is always great reading, I did notice something with regards to transportation, because I think at all businesses right now we are always against the clock. We're trying to figure out, how can we get inputs outputs done as fast as possible, which often relies on airplanes. But then you're kind of flipping the script and looking at alternative methods of transportation, of getting product in and out. So can you share a little bit more about that? And then how do you navigate that with those time crunches.

Shifting transportation modes is especially challenging, because in order to do that, I feel like you need to go right back to the design and development calendar, and really make sure that all of your teams, so this would involve: senior leadership, logistics, operations, and merchandising, to all be on board with the time that it takes to shift from air to ocean transportation. We have a goal of 70% inbound shipments by ocean freight by the end of 2025. And it's going to be a challenge. I was just trying to get a met like a measurement a half year measurement on all of our carbon emissions. And it's coming. But going to be tough that even 70% is really high and going to be difficult. And then, you know, like you said, there's all those challenges of the unknown like, you know, if there's a late material, if there's a late zipper, if there's you know, it could come down to this very small thing that can really shift your production schedule and your delivery schedule. But for us, you know, shifting this is key to lowering our overall carbon emissions, o we've made it a priority.

It's certainly inspiring. And I'm sure everyone can empathize who's listening, who's in a similar boat of trying to do that shift. Another area of focus is certainly that of circularity, and I know that Faherty has a number of really interesting programs in place. Could you share a bit more about what you have going on there in terms of circularity.

At Faherty we approach circularity in a few ways. So, beginning at the concept. And as I mentioned, we have a goal to use quality and lower impact fiber. So that's really where we start. As part of the aesthetic of the brand, the styles are timeless and durable, and they're really designed to last in in both quality and style. So we're not, really, you know, making trendy items that you're just going to wear for one season or that have a lot of, you know, trims and logos and stuff all over them. They're really timeless items. And I think that really contributes to circularity. 

We have a resell platform called Second Wave, and I think this is a nice continuation, you know, if we make quality products, they should be able to have a second life, and they should be able to be resold on Second Wave. So I think that all ties together within s Second Wave. We host peer to peer, brand managed, and then trade in inventory, and that's been building over the last couple of years. And right now we're actually working on in-store trade-in, and that'll be rolled out to a few of our stores in fall2025.

And then the last thing, the excite like really exciting part is that we try to work with innovators in the space. So we recently hosted in store repair and alteration pop-ups at our flagship, our Madison store, with a New York based company called Alternew. and they connect vetted tailors with our store and with our customers. So we offered free alterations and repairs with a tailor that was live in store. And I think that's the stuff that is really, you know, different from what everyone's doing it really connects with the customer, and creates some brand loyalty and just awareness of circularity.

So exciting. I'm definitely loving all of these different ideas. And they're so unique, I think, in this space like you maybe hear brands doing one or the other. But then pulling all of this together is super exciting, and it kind of flips this notion on its head that if you're going to be sustainable, you can't necessarily grow. It seems like you've managed to strike a balance between the . How do you think about that from a business lens, but then also marrying that with sustainability?

Faherty has always prioritized quality over quantity. And this really creates, you know, loyal customers. But it also ensures that our products will have a second life, as I mentioned before, and we are really leaning into our resale, our resale platform. Second Wave, we want it to become a larger percentage of our revenue. And we're really, you know, putting resources and building out that program. 

We also make it a priority to promote mindful consumption. So educating our consumer about our responsible sourcing practices. You know all about Second Wave, about pre-loved product. And we do this on our website through our social media and then in store events which can reach a lot of customers in in our store communities. And then, lastly, as I said, you know, innovating in product and technology, working with those new suppliers and trying to do something new and exciting, and just move the needle forward in that way.

You touched on education being a big piece of this. For our listeners, are there any myths that you would like to debunk when it comes to sustainability and fashion? They're definitely not necessarily words that always go together. So are there any myths that you would like to debunk?

Yes, I think the notion that sustainable fashion is always expensive and inaccessible. I think you know, thrifting and resell has really opened up a lot of consumers to purchasing responsibly. And for us, you know, we're at a bit of a higher price point. So you know we can capture a whole new demographic of customers at the lower price point of Resale. And also there's a growing group of consumers who now only shop pre-loved. And I love those consumers. I think that is just a great way to be responsible, and it would be a shame not to capture that demographic in that group. And I've heard people say that. Oh, but it's too expensive to buy organic cotton and all of that is is not true anymore. You can definitely find it at various price points.

I think that could certainly inspire some of our listeners. We have a lot of entrepreneurs and business leaders who do listen to the show. If they're in the fashion space or the textile space. And they're thinking about stepping into sustainability more fulsomely and really want to avoid it just being kind of a tack on greenwashing, but actually integrating it, what would you recommend as an approach to start that journey?

It needs to be authentic. I think you know not just a copy of what everyone else is doing or what is expected of you in the, in the industry. I think it's important to explore what you care about. What are the main impacts of your business and what does the senior leadership, or, in my case, family really feel passionate about. And if you analyze that, you're going to be able to create real stories. For example, our founders are passionate surfers. And so when we tell stories about our partnership with Surfrider, or we just launched some social media about our partnership with Surf Ghana. These stories, they're not just stories anymore. They're a true reflection of what the company stands for. And I think that consumers can detect when you're not being authentic, and when you are really being authentic and showing what you truly care about. So I think that is absolutely key when you're starting out and want to communicate your sustainability efforts.

And it feels like sometimes having that 3rd party validation or guidance can also be really helpful on that journey. We've had listeners write in and ask to dive in a bit more on B. Corp, and what that can look like, what that can mean. I know a lot of people are also a little nervous about the amount of work that has to go into getting certified. So is there a starting point that you would recommend that they look at as well?

Yes, so we certified under the old standards. So I would say, first, educate yourself on the new standards for B Corp. The minimum point system is now gone. And now there are mandatory minimum standards within impact topics. So that's key. And that's what I'm going to have to do you know, pretty soon, too, is start looking at those new standards, and how we're going to recertify. 

The next thing is, I would make sure that senior leadership is educated and on board this is really key, because everyone in the business is going to be involved in this. So if you don't for us, our CEO, Alex Faherty, and all the co-founders, Alex Faherty and Carrie Docherty. They were all super supportive. This was made a priority. Everybody knew it. and that really makes a difference. It's great to have a dedicated leader and a team, you know, members from each department. And then I would say, just give yourself a lot of time, because it took us over a year from the, you know, from the day I opened the assessment to the day we got certified. It was about it was about 15 months total.

I think that transparency, even in what that kind of thing looks like, is really important, because we do have like some aresmaller brands and startups who are trying thinking about it. So I think it’s important that if you think of your internal resources, what that looks like and like you were saying, if you’re even part of a bigger brand, knowing that you’re going to have to get the multifunctional collaboration is key as well.

Yeah.

Beyond all of this important work, you also somehow found time to be on a board of directors of an organization I'm not familiar with, and I would love if you could share a bit more, because I've just been digging in and it seems really interesting. It's called Fashion Takes Action. So could you share what this organization focuses on? And what kind of brought you to that group.

So I am Canadian. I’m originally from British Columbia, and Fashion Takes Action is a Canadian nonprofit. I’ve always admired the work that they’ve been doing in circularity and consumer education. So they host an annual event called Remode, and this event is dedicated to keeping clothes in use. Within this event they have inspirational talks. They have a vendor marketplace and a clothing swap. So the next one actually is in Montreal on September 28th.

Clear my calendar!

Yes, you should definitely check it out. I haven’t been to one yet, but maybe I’ll go to that one. We’ll see. They also run the CCTC. Which is the Canadian Circularity Textile Consortium. And this initiative supports its members in forming new partnerships, launching pilots, and just, you know, gaining valuable insights to enhance sustainability. And the last thing and this is my favorite thing. And really, probably what brought me to FTA is they have these citizen resources on their website. So they have information on how to reduce your own personal footprint. They have information on standards and certifications. There’s a garment care guide. And then another guide on how to host a clothing swap. So this is the stuff that I always recommend to my friends and my family, who just don’t really know where to start, you know, as an individual, what can they do? And how can they understand what sustainability is? Because, you know, a lot of times they’re not really aware or know what what they can do. So I think that it’s a great resource.

Well, I'm definitely going to mark my calendar right after this call for September 28!

And prior to joining Faherty Brand, you have this deep retail experience, and maybe more in the traditional retail space as well. Could you share what that journey looked like, and what ultimately brought you to Faherty?

So I started out my career in design, and you know I worked for Aritzia for a while. I ran my own business for a few years, and then, you know, shifted into materials. I moved to New York and started working at Ralph Lauren. And I think at that time working in materials, you really start to understand the you know, the chemicals that are used in textile production, all of the excess waste. So I always tell people it was it was sort of a natural. a natural pivot into sustainability like once you start working in materials, you, I feel like you almost have to go that way because you really see what the impacts are. 

So I think that was the time when I really decided that if I wanted to stay in this industry, I wanted to work on the other side, you know, to make it a better industry and to make things better. So when I interviewed for the role at Faherty I met Carrie Dougherty, who is a co-founder and our chief impact officer. I was pleasantly surprised by what she wanted to do you know, she told me she wanted to become a B. Corp. They wanted to launch resale, and they wanted to expand all their partnerships, especially with Native American designers. And so, you know, this is so ambitious and and just meeting with her, and hearing about all the things that she wants to do, and she's a very authentic kind, fun woman. And so, you know, it makes such a huge difference to work for somebody who truly cares, and who isn't just doing it because they feel like they have to, or because it's a marketing play. And that's so common in some of the more mainstream companies, you know. They feel like they have to do it in this Faherty. I feel like it's just really authentic. They they really do care and want to do the right thing.

Since doing that transition, and maybe it was even before, was there ever a moment or multiple moments in your career where you've really felt like, oh, I made an impact? Like it felt tangible, because I think sometimes in sustainability. I work in the emissions space, and sometimes emissions, reductions feel so far away. So was there this moment where you thought, “Okay, I was actually part of that impact”?

I guess the B Corp assessment was really a big deal for me, because I had never done it. And like I said it was such a big project, and it really threw me into all parts of the business that I hadn't really had access to before, and meeting with everyone in different departments and figuring that out. So I'm really proud of that. I think that it was a great project to work on. But more recently, I've been really excited and proud of working with at Faherty Brand with our Native and Indigenous artisans and partners. So I am First Nations. I'm a citizen of the Nisga’a Nation in British Columbia. And so, you know, when I, when I heard about this initiative at Faherty Brand, it really felt very personal to me. I had never seen anyone working with Native communities and artisans in this way? And so you know, today, I'm just so proud that we get to work with these with these designers and artisans. And I, it's a very special project for me.

And when you're doing this work, I know sometimes it can, especially when you're reading the news, it can sometimes feel a little disheartening. But I really do believe in the power of lighthouse leaders and people who can inspire us and kind of just re-energize us. Have you found that in your ecosystem of maybe a mentor or a leader? It could even be somebody you don't know. But that just infuses that energy back into you to keep on giving?

Yeah, thanks for asking this question, Lauren. I feel like I've been waiting for someone to ask this question, so I can give a few shout outs to some incredible people. I'm a member of a few key, you know, networking groups. One of them is called Women in Sustainable Business Coalition. I feel lucky to have this community to call on whenever I need. They're super knowledgeable. They're relentlessly supportive and really fun. And I think it's that's really important. 

I'll give just a few shout, outs: Dana of Dana Davis Consulting has been, you know, a great mentor. I'm friends with her, but also I've just been watching the work that she did formerly at Merrill Hoffman for many years. Danielle Azoulay, who runs the CSO Shop, and she was actually the one who really got me into sustainability when we worked together at Marc Jacobs. And then there's a bunch of brand leaders like Tara St. James at Moose Knuckles, Katina Boutis at Everlane and Annie Agle at Cotopaxi. And these women are just wonderful and they're what I call “friend mentors”, and just being around them and seeing how they show up for their brands really inspires me.

It sounds like community is such a deep part of that energizing yourself. Are there other tips or tools that you have in your toolbox to kind of keep you motivated, and I don't know if I love the word balance, but of finding that equilibrium within your life.

Yeah, it can be really hard. I feel like this work is stressful, and it's not always understood. So it can be frustrating. So I make sure to take breaks. You know, I unplug from work and the industry. I just spent a week in Vancouver, not looking at my phone or my computer trying to recharge. And then, when I am deep in the work, I make it a priority to connect with my community and my friends, and I think it's really important, as you said, to really keep in connection with those that understand what you're working on, what you're going through, and just to have someone to talk to and be with in this industry.

I have no doubt, after hearing all of this, our listeners are going to want to learn more. Where would you recommend they check out whether it is Faherty Brand, or Fashion Takes Action?

We have our website, fahertybrand.com, and you can check out Fashion Takes Action online. Also, we have an impact report. That is from 2023. We're just working on an update for 2024. And then we're going to do full impact report for 2025. So you can look out for that for updates on everything that we're doing.

And then a little bit of an unofficial question. But for anybody who’s watching this video, and every time I’ve ever seen Lisa, she has the most incredible lipstick! I have to ask you:  what brand do you wear?

It’s Nars. Do you know that brand? So that's my perfect red. I actually, I don't remember the color.

A trade secret!

Well, on a more official note, I do want to thank you for joining us, and I would love to know your thoughts on the last question that we always ask our guests, which is, what do you think it will take for businesses and leaders to be resilient going forward?

It's going to take patience and flexibility. For me,  we may need to put some things on hold. We may not to get to do all the things that we want right now. And we may need to prioritize certain things. And I think that's okay. We have to do that right now, but we also need to be honest and transparent about that. And any work that we're doing we should be transparent about. 

But I do believe the work goes on, and especially now that in some places there's a backlash against ESG / impact sustainability. So I think we just need to work hard to keep going and continuously improving, and try not to get so discouraged. And I know that's hard, because I feel that every day. I think we all do working in this space. But yeah, and then I guess, going back to that community and just connecting like this connecting with you. And talking about these things is so important.

Well, thank you so much, Lisa. You're such a light in the space, I think, where you work is such a light in the fashion industry overall. So thank you so much for your time today.

Thanks. Lauren.