Switzerland - Pressure builds on the watch industry over green claims

(MENAFN- Swissinfo) Formula 1 world champion Lewis Hamilton visits the headquarters of Swiss luxury watch manufacturer IWC in 2013. Many watch companies are involved in Formula 1, 'an industry that has a negative impact on the environment and encourages people to drive', as one marketing expert points out. Photopress/samuel Truempy

Luxury watch companies have made a big play of partnerships with leading conservation agencies. Hublot is helping to save the rhino. And Omega is trying to protect the oceans, as well as clearing up space junk. Close ties to non-profits have a positive effect on consumers – and the bottom line. Being good is good for business.

Research published by consultancy Accenture and the World Economic Forum in September found that 66% of consumers were planning to make“more sustainable/ethical purchases” over the following six months.

But pressure is growing on brands to come clean about their sponsorship deals with conservation charities. Accusations of companies making misleading claims about their environmental credentials – so-called greenwashing – are never far away.

The watch industry is a latecomer to green activities. In 2018, the charity WWF published a damning report indicating the Swiss watch industry fell short of environmental standards. Many brands had failed to declare their environmental impact or partnerships, the report said. It concluded the industry“does not meet good environmental standards” and had“a great responsibility … to generate a positive impact on society, nature and the economy”.

“Not to calculate and publicise your impact is so 1980s,” says Damian Oettli, head of markets at WWF Switzerland.“You just can't do that anymore. The whole industry is basically susceptible to greenwashing. Everybody wants to tell a wonderful story and then struggles to back it up.”

Four years on from the report, Oettli says the situation has not improved.“This industry was, and still is, 20 years behind industries that have been more exposed to environmental criticism,” he says.“Those companies supporting a charity here or there – this is where other industries started two decades ago. The true measure is how much they reduce their [environmental] impact.”

Industry analysts say watch brands need to catch up.“You can't just care about business; you have to care about society and the environment,” says David Sadigh, founder of Geneva-based marketing agency Digital Luxury Group (DLG).“This will become even more important, because the pressure will come from investors and the stock market to be a good company.”

Brands understand the marketing power of environmental stories. Ulysse Nardin, for example, has made a great white shark a brand ambassador.“Let's be transparent,” says Patrick Pruniaux, chief executive.“It gives us some storytelling behind some of the product.” He says his company's annual contribution to its conservation partners is equivalent to a“couple of per cent” of its revenues, which are not disclosed.“Some contribution is better than no contribution,” he says.“What's wrong is lying.”

Ulysse Nardin is not alone. Last year, Panerai entered into a partnership with UNESCO's Intergovernmental Oceanographic Commission (IOC). Panerai says it is donating €300,000 (CHF300,500) a year to fund an educational programme, starting next month, in which its representatives will go into more than 100 universities around the world to present“ocean literacy” materials created by the IOC. The donation will also fund the development of an online educational tool connecting teachers and students to ocean conservation experts.

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While there is this deep-rooted tradition of respect of the environment in Switzerland it does not necessarily extend beyond the country's borders.

“We showed Panerai several options for collaboration and they went for the boldest one,” says Francesca Santoro, an IOC programme specialist.“They didn't want a little project to show they were doing something good. They committed to providing support throughout the decade.” Panerai has become the only member from the private sector of the IOC's Ocean Decade Alliance, which is made up of heads of state and leaders of philanthropic organisations.

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