ThredUp published third annual impact report as it hits 322 million USD in revenue

Online fashion resale platform ThredUp has published its third annual impact report, which offers a broad view of the company’s environmental, social, and governance (ESG) strategy.

In its latest report, ThredUp highlights its progress on its corporate ESG initiatives for 2023, focusing on 12 key areas where it can make the most impact, based on a materiality evaluation carried out in 2021.

These priorities encompass product circularity and end-of-life management; greenhouse gas emissions and climate change; energy consumption and efficiency; sustainable packaging; waste diversion and disposal; social assessments of our affiliates; diversity, equity, and inclusion; community engagement; employee health and well-being; corporate governance; and cybersecurity.

Highlights from ThredUp's 2023 Impact Report

One of the main takeaways from the report is that the company processed over 200 million second-hand fashion items, as it diverted 100 percent of the items that did not resell through its online marketplace from landfills via its Rescues and Aftermarket programs.

“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, co-founder and CEO of ThredUp, in a statement. “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.”

Some of the milestones that ThredUP achieved in 2023, which further underlines its commitment to sustainability and social impact, include the successful recirculation of 2.2 million secondhand items through its Resale-as-a-Service (RaaS) platform. The company’s RaaS platform ended the year with 47 brand partnerships, including prominent names such as J. Crew, Tommy Hilfiger, Kate Spade, and Athleta.

ThredUp's environmental initiatives were met, with 100 percent of items not resold in its marketplace being diverted from landfills through its Rescues and Aftermarket programs. Additionally, the company contributed to reforestation efforts by planting 800 trees via the Trees for the Future program, facilitated by purchasing 103,000 pounds of paper from Community Printers.

In a continued effort to promote recycling, ThredUp ensured that all Clean Out bags returned by customers were sent to The Azek Company, which resulted in the recycling of 111,000 pounds of materials into decking products.

ThredUp also demonstrated its leadership in sustainability by serving as a founding member of the American Circular Textiles (ACT) policy group, where it actively advocated for progressive textile policies.

Regarding diversity and inclusion, 73 percent of ThredUp’s workforce identified as a minority, with 73 percent of employees identifying as female and 59 percent identifying as Black or Latinx. The company also made significant contributions through its Future Fund, an employee-led social impact organization, donating 64,000 USD to various causes.

In terms of governance, 44 percent of ThredUp’s Board of Directors were female in 2023, and 22 percent were members of racial minorities, reflecting the company's commitment to diverse and inclusive leadership.

“ThredUp is living proof that a purpose-driven mission and a thriving business are not mutually exclusive,” said Alon Rotem, Chief Legal Officer at ThredUp, in the report. “By championing secondhand fashion and fostering a culture that values both profit and positive impact, we're not only changing how people think about their closets but also proving that intrinsically good businesses are good for the bottom line and the world.”

ThredUp’s 2023 Impact Report covers activities conducted from January 1, 2023, to December 31, 2023.