Preferred materials

The Otto Group aims for the long-term goal of exclusively using preferred materials in textiles, furniture, and electronics – those that have lower negative environmental impacts compared to conventional alternatives. We particularly focus on fibers, wood, plastics, and metals. Materials are classified as preferred if they demonstrate significantly lower environmental impacts based on life cycle assessment data or if they are recycled, thereby reducing resource consumption.

Preferred materials as a basis for change

The selection of preferred materials is a key component for fully circular products. That is why we are working to increasingly transition to more sustainable alternatives in all our products. In the area of textiles, we focus on "preferred fibers," which are fibers that have a lower negative environmental impact compared to conventional alternatives.

Fibers

In the field of textiles, we focus on "preferred fibers", which are fibers that have a lower negative impact on the environment compared to conventional alternatives. For example, we aim to increasingly use fibers from controlled organic farming, recycled or innovative fibers, as well as animal fibers that place a strong emphasis on animal welfare. We have increased the share of Preferred Fibers from 59 percent (2023) to 66 percent (2024). By the end of the fiscal year 2035/36, we aim to use exclusively preferred fibers in our textiles and furniture.

More sustainable cotton: Alongside polyester and viscose, cotton is the most commonly used fiber in the textile assortments of our own and licensed brands. The share of more sustainable cotton, which includes organic cotton, recycled cotton, cotton from the Cotton made in Africa initiative (CmiA), and cotton under conversion (CmiA), currently stands at 98 percent. We have nearly achieved our goal of using 100 percent more sustainable cotton.
Animal fibers and materials: Since 1988, furs from endangered or inhumanely kept animal species, such as minks, martens, and sables, have been banned at the Otto Group. In 1991, real fur was completely removed from our offerings. We also reject products that come from live-plucking and foie gras production, as well as the use of mulesing practices. We are continuously increasing the use of industry-wide material standards and have set a goal to use only down, feathers, sheep, alpaca, llama, and cashmere wool that is certified according to an accepted independent recycling or animal welfare standard starting in 2028. Since 2024, only leather as a byproduct of food production from the following domesticated animal species is permitted: cattle, buffalo, pigs, goats, sheep, and yaks. All requirements in detail and our principles regarding animal and species protection are documented in the Animal Welfare Policy, which is part of the Business Partner Declaration.

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Wooden furniture

Forests are the green lung of our planet, which is why we are committed to managing them responsibly. In the area of wooden furniture, we focus on certified wood, particularly considering the FSC^® standard. Additionally, since 2023, we have accepted other recognized certifications for wooden furniture, such as the EU Ecolabel, the Blue Angel, and the Nordic Swan Ecolabel. In 2024, we were able to use 90 percent certified wood in our own, licensed and strategically relevant third-party brands in terms of the number of units, thus sourcing wood from responsible forestry. By the end of the fiscal year 2035/36, we aim to use exclusively certified wood in our furniture in terms of tonnage.

Catalog paper

Although paper usage has been continuously declining for years, a significant amount of paper was still used for catalogs and promotional materials in 2024. In that year, we were able to use 96 percent more sustainable catalog paper throughout the Otto Group. For this, we accept either an FSC^® certification or the EU Ecolabel. In the long term, we aim to achieve 100 percent certified catalog paper.

Packaging

At the Otto Group, we are continuously working to optimize the volume of packaging and increase its recyclability. Our measures focus on our self-sourced shipping packaging (primarily boxes and shipping bags) and filling materials. A particular emphasis is placed on the use of recycled materials, with a requirement for a certification indicating a minimum share of 80 percent. For plastic packaging, this recycling share must be "post-consumer," meaning it comes from used, recycled plastic. By 2024, 98 percent of the total packaging volume had corresponding certifications for recycled material. Starting in 2025, we aim to use only more sustainable packaging with at least 80 percent verified recycled material.

Innovative biodegradable plastic alternative: Innovative biodegradable plastic alternative: In collaboration with the Hamburg-based start-up traceless, OTTO aims to make its shipping bags even more sustainable. Traceless is developing bio-based shipping bags that can be completely biodegraded within a few weeks. The compostable bags are made from a new type of plastic substitute that is entirely based on natural raw materials. They replace conventional shipping bags and are intended to help reduce the environmental impact.
Shipping bags made from "wild plastic": In 2020, OTTO entered into a cooperation with Wildplastic, which aims to rid the environment of plastics. "Wild plastic" is collected from the environment in places without their own recycling structure - such as Haiti or India - sorted, cleaned and then processed into granulate by Wildplastic. It is used as a raw material for the shipping bags at OTTO, where more than one in three bags currently consists of wild plastic. The proportion of wild plastic bags will be increased step by step.
Shipping packaging made from peatlands: Items that are not suitable for shipping bags due to their size or weight, for example, are sent in a box. To continuously improve this, OTTO is testing innovative materials, such as paludi biomass. This biomass consists of plants that grow on rewetted peatlands. When peatlands are drained, they release the carbon stored within them, resulting in high greenhouse gas emissions. Therefore, it is important to preserve intact peatlands and to rewet dry peatlands. In addition to the positive climate impact, this approach promotes new, natural peatland habitats for increased biodiversity. To turn paludi biomass into a stable packaging, it is mixed with paper fibers sourced from more responsible and resource-conserving forestry and other controlled sources. Since spring 2024, OTTO has been part of the Alliance of Pioneers – a coalition of companies committed to climate and biodiversity protection, the use of renewable, regional raw materials, and the valorization of paludi biomass. This alliance was initiated by the toMOORow initiative, which was founded by the Environmental Foundation Michael Otto and the Michael Succow Foundation, partner in the Greifswald Mire Centre.
Shipping bags made from "wild plastic": In March 2021, OTTO entered into a cooperation with the Hamburg-based start-up Wildplastic^®. "Wild plastic" is collected, sorted, cleaned, and processed into granulate in areas lacking their own recycling infrastructure, such as Nigeria, Indonesia, or India. This material serves, among other things, as raw material for OTTO's shipping bags. By the end of 2023, the Group company achieved its goal of converting all OTTO shipping bags to Wildplastic^®. The bags have a QR code that allows customers to trace the origin of the plastic used. Additionally, Hermes Germany initiated a partnership with Wildplastic^® and has been providing customers with the Hermes return bag since September 2023, offering a practical return option for individual items from an online order if the original packaging is damaged, too large, or no longer available. The bag is available for free at approximately 17,500 Hermes parcel shops.