ThredUp Releases Third Annual Impact Report

Rhea-AI Summary

ThredUp (NASDAQ: TDUP, LTSE: TDUP), a leading online resale platform, has released its third annual Impact Report for 2023, showcasing its progress in environmental, social, and governance (ESG) initiatives. Key highlights include:

- Recirculated 2.2 million secondhand items through Resale-as-a-Service (RaaS)
- Diverted 100% of unsold items from landfills
- Recycled 111,000 pounds of Clean Out bags into decking products
- Workforce diversity: 73% minorities, 73% female, 59% Black or Latinx
- Board diversity: 44% female, 22% racial minorities
- Donated $64,000 through employee-led social impact organization

ThredUp's ESG strategy focuses on 12 key areas identified through a materiality assessment, demonstrating its commitment to sustainability and circular fashion.

Positive

• Recirculated 2.2 million secondhand items through Resale-as-a-Service (RaaS)
• Closed 2023 with 47 brand clients, including major retailers
• Diverted 100% of unsold items from landfills
• Recycled 111,000 pounds of Clean Out bags into decking products
• Strong workforce diversity with 73% minorities and 73% female employees
• Board diversity with 44% female and 22% racial minority representation

Negative

• None.

Insights

Sustainability Expert

ThredUp's third annual Impact Report showcases the company's commitment to sustainability and circular fashion, but its impact on investor sentiment is likely to be neutral. While the report highlights several positive initiatives, it lacks concrete financial metrics or business performance indicators that would significantly influence stock valuation.

Key sustainability achievements include:

• Recirculation of 2.2 million secondhand items through Resale-as-a-Service (RaaS)
• 100% diversion of unsold items from landfills
• Recycling of 111,000 pounds of materials into decking products

These efforts demonstrate ThredUp's commitment to its circular fashion mission, which could potentially lead to long-term brand value and customer loyalty. However, the immediate financial impact of these initiatives is not quantified in the report.

The company's involvement in policy advocacy through the American Circular Textiles (ACT) group shows proactive engagement in shaping industry regulations, which could be beneficial in the long run. However, the tangible effects of this involvement on the business are yet to be seen.

While the report provides valuable insights into ThredUp's ESG profile, investors would likely be more interested in how these initiatives translate to financial performance and market share growth. The lack of financial metrics or forward-looking statements in this report limits its immediate impact on stock valuation.

Diversity and Inclusion Analyst

ThredUp's Impact Report reveals impressive diversity statistics that position the company as a leader in workplace inclusivity. The standout figures include:

• 73% of the workforce identifies as a minority
• 73% identifies as female
• 59% identifies as Black or Latinx
• 44% of the Board of Directors identified as female
• 22% of the Board identified as a racial minority

These numbers significantly outperform industry averages, particularly in the tech and retail sectors. Such strong diversity representation can lead to enhanced innovation, better decision-making and improved customer understanding, potentially translating to long-term business success.

However, it's important to note that while diversity is crucial, it doesn't guarantee immediate financial performance. Investors should consider how this inclusive culture might contribute to employee satisfaction, reduced turnover and a positive brand image, which could indirectly impact the bottom line over time.

The $64,000 donation through the Future Fund demonstrates a commitment to social impact, but the relatively modest amount is unlikely to significantly influence investor sentiment. Overall, while ThredUp's diversity metrics are commendable, their direct impact on stock performance is likely to be neutral in the short term, with potential long-term benefits that are harder to quantify immediately.

ESG Investment Analyst

ThredUp's third annual Impact Report presents a mixed bag for ESG-focused investors. While the company demonstrates strong commitment to environmental and social initiatives, the report lacks specific, quantifiable targets and financial implications that would typically drive ESG investment decisions.

On the positive side:

• The company's core business model of resale aligns well with circular economy principles
• Initiatives like diverting 100% of unsold items from landfills and recycling 111,000 pounds of materials show tangible environmental impact
• Strong diversity metrics across the workforce and board are noteworthy

However, several factors limit the report's impact on investment decisions:

• Absence of specific, time-bound ESG targets for future years
• Lack of quantification of the financial benefits or costs associated with ESG initiatives
• No mention of how ESG performance ties into executive compensation or overall business strategy

While ThredUp's ESG efforts are commendable, the report doesn't provide enough concrete data for investors to assess how these initiatives might affect the company's financial performance or risk profile. The expansion of the Resale-as-a-Service (RaaS) to 47 brand clients is promising, but without associated revenue figures or growth projections, it's difficult to gauge its true impact.

For ESG-focused investors, this report maintains ThredUp's position as a sustainability-oriented company but doesn't significantly alter the investment thesis. To truly leverage their ESG initiatives for investor appeal, ThredUp would need to provide more robust financial context and forward-looking ESG targets in future reports.

Report outlines company’s business and brand-aligned environmental, social, and governance (ESG) strategy and highlights progress in 2023

OAKLAND, Calif.--(BUSINESS WIRE)-- ThredUp (NASDAQ: TDUP, LTSE: TDUP), one of the largest online resale platforms for apparel, shoes, and accessories, today released its third annual Impact Report. Through transparent reporting and disclosures, the report provides a comprehensive view of ThredUp’s environmental, social, and governance (ESG) profile, outlining the company’s business and brand-aligned ESG strategy and detailing the progress the company made across ESG initiatives in 2023.

“ThredUp is on a sustainability journey to make fashion circular, but our impact extends beyond our core mission to our people and our communities as well as how we operate our business,” said James Reinhart, Cofounder and CEO of ThredUp. “Our third annual Impact Report highlights our dedication to continuous improvement and how we’re expanding our positive impact as we continue to reshape the fashion landscape.”

ThredUp’s 2023 Impact Report includes activities undertaken during the reporting period from January 1, 2023 to December 31, 2023. The company’s ESG strategy focuses on 12 key areas where they can have the most impact as identified through a materiality assessment. Highlights from 2023 include:

• Recirculated 2.2 million secondhand items through ThredUp’s Resale-as-a-Service (RaaS) and closed 2023 with 47 brand clients, including J. Crew, Tommy Hilfiger, Kate Spade, and Athleta.
• Diverted 100% of the items it didn’t resell in its marketplace from landfill through its Rescues and Aftermarket programs.
• Replanted 800 trees through Trees for the Future by buying 103,000 pounds of paper from Community Printers.
• Sent 100% of the Clean Out bags it received back from customers to The Azek Company, recycling 111,000 pounds of materials into decking products.
• Served as a founding member of the American Circular Textiles (ACT) policy group, advocating for sustainable textile policy.
• 73% of ThredUp’s workforce identifies as a minority, with 73% identifying as female, and 59% identifying as Black or Latinx.
• Donated $64,000 on behalf of the Future Fund, the company’s employee-led social impact organization.
• 44% of ThredUp’s Board of Directors identified as female, while 22% identified as a racial minority.

ThredUp is committed to releasing an annual Impact Report to provide transparency into its business operations and hold itself accountable to continually measure and advance its progress.

About ThredUp

ThredUp is transforming resale with technology and a mission to inspire the world to think secondhand first. By making it easy to buy and sell secondhand, ThredUp has become one of the world's largest online resale platforms for apparel, shoes and accessories. Sellers love ThredUp because we make it easy to clean out their closets and unlock value for themselves or for the charity of their choice while doing good for the planet. Buyers love shopping value, premium and luxury brands all in one place, at up to 90% off estimated retail price. Our proprietary operating platform is the foundation for our managed marketplace and consists of distributed processing infrastructure, proprietary software and systems and data science expertise. With ThredUp’s Resale-as-a-Service, some of the world's leading brands and retailers are leveraging our platform to deliver customizable, scalable resale experiences to their customers. ThredUp has processed over 200 million unique secondhand items from 60,000 brands across 100 categories. By extending the life cycle of clothing, ThredUp is changing the way consumers shop and ushering in a more sustainable future for the fashion industry.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240801529013/en/

Press

Laura Hogya

media@thredup.com

Sustainability

Alon Rotem

sustainability@thredup.com

Source: ThredUp

FAQ

What were ThredUp's key ESG achievements in 2023?

ThredUp's key ESG achievements in 2023 included recirculating 2.2 million secondhand items through RaaS, diverting 100% of unsold items from landfills, recycling 111,000 pounds of Clean Out bags, and maintaining a diverse workforce with 73% minorities and 73% female employees.

How many brand clients did ThredUp (TDUP) have at the end of 2023?

ThredUp closed 2023 with 47 brand clients for its Resale-as-a-Service (RaaS) program, including major retailers such as J. Crew, Tommy Hilfiger, Kate Spade, and Athleta.

What is ThredUp's (TDUP) commitment to sustainability?

ThredUp is committed to making fashion circular and has a comprehensive ESG strategy focusing on 12 key areas. In 2023, they diverted 100% of unsold items from landfills, recycled Clean Out bags, and participated in sustainable initiatives like replanting trees and advocating for sustainable textile policy.

How diverse is ThredUp's (TDUP) workforce and board as of 2023?

As of 2023, 73% of ThredUp's workforce identifies as a minority, with 73% identifying as female, and 59% as Black or Latinx. The Board of Directors is 44% female and 22% racial minority.