Preferred materials
We are working to use an increasing proportion of preferred materials in the products of our own and licensed brands. These are materials that, based on life cycle assessment data, have a significantly lower environmental impact, or that are recycled and thus reduce the use of resources. A preferred material meets our requirements for reducing environmental impacts or improving animal welfare at the raw-material production stage compared with the conventional alternative. The assessment is based on factors such as global warming potential, eutrophication, water scarcity, resource depletion, chemical use, and animal welfare.
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. By the end of the 2025/26 financial year, preferred fibres accounted for 45 percent of the total tonnage in this material group. In the fashion and home textiles segment, the share of preferred fibres was 66 percent.
- Cotton: Alongside polyester and viscose, cotton is the most widely used fibre in the textile ranges of our own and licensed brands. We are working to use preferred cotton. This includes organic cotton, recycled cotton, cotton from the Cotton made in Africa initiative (CmiA), and in-conversion cotton (CmiA).
- Animal fibers and materials: Since 1988, furs from endangered animal species or species not kept in a manner appropriate to their needs - such as minks, martens, and sables - have been prohibited at the Otto Group. In 1991, real fur was banned from our offerings altogether. We also reject products originating from live plucking and foie gras production, as well as the use of mulesing practices. We have set ourselves the goal of using only down, feathers, sheep’s wool, alpaca wool, llama wool, and cashmere wool certified to an accepted independent recycling, organic, or animal welfare standard from 2028 onwards. Since 2024, only leather that is a by-product of food production from certain animal species has been permitted. All requirements in detail, as well as our principles on animal welfare and species protection, are set out in the Animal Welfare Policy, which is part of the Business Partner Declaration.
Wooden furniture
In the area of wooden furniture, we use certified wood, with particular emphasis on the FSC® standard. Since 2023, we have also accepted additional recognised certifications for wooden furniture, such as the EU Ecolabel, Germany’s Blue Angel, and the Nordic Swan Ecolabel. By the end of the 2025/26 financial year, we had achieved a share of 86 percent preferred wood. The figures refer to the share of the material group’s total tonnage.
Catalog paper
Due to ongoing digitization, the use of paper for catalogs and advertising materials has been declining for years. In 2025, 99 percent of the catalog paper used in the Otto Group was paper with FSC® certification or the EU Ecolabel. Thus, we use almost exclusively correspondingly 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 2025, 98 percent of the packaging volume had corresponding certifications for recycled material.
- Biodegradable plastic alternative: In collaboration with the Hamburg-based start-up Traceless, OTTO is developing shipping bags made from an innovative material based on plant-based raw materials. According to Traceless, these can be completely biodegraded within a few weeks. In the future, they are intended to be used as an alternative to conventional shipping bags.
- Shipping packaging from peatlands: Items that, for example, are not suitable for shipping bags due to their size or weight are sent in a cardboard box. To constantly improve this, OTTO is testing new materials, such as paludi biomass. This consists of plants that grow on rewetted peatlands. If peatlands are drained, they release the carbon bound within them and cause high greenhouse gas emissions. Therefore, it is important to preserve intact peatlands and rewet dry peatlands. In addition to potential effects on climate protection, new, near-natural peatland habitats can be promoted in this way. To enable the paludi biomass to become a stable packaging material, it is mixed with paper fibers that come from certified 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 utilization of paludi biomass. This alliance was initiated by the toMOORow initiative, which iin turn 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 Indonesia, or India. This material serves, among other things, as raw material for OTTO's shipping bags. Since 2023, all OTTO shipping bags from the seller OTTO have been made of 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 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.