UPDATE: Impala reached out to us and gave extra input and feedback, this has been added to this article.

Impala, the Independent Music Companies Association, has published the findings of its first survey examining the economic advantages of adopting sustainable practices within the European independent music sector. According to the survey there are multiple benefits for labels that implement sustainability measures, including cost reductions, enhanced innovation, and improved brand perception.

Let’s have a detailed look at what they communicate. You can download the business case right here. But first this…

Danger of Greenwashing

Below you can read what Impala indicated as being ‘sustainable’ practices. But, in some cases you can actually wonder if it’s not about greenwashing, because the cost for instance of producing lightweight vinyl is lower but the prices in retail will often remain the same. So, it could often be a cost element that plays, and not really the sustainable idea.

Impala reacts to us by saying that they strongly refute that assertion: “First, it is important to highlight the goal of the business case itself, which is to promote action among our members and in the supply chain. IMPALA is committed to aligning with climate science and works closely with expert advisors to ensure our approach is appropriate.

Furthermore, the report and IMPALA as an organisation don’t promote making sustainability claims without scientific backing, which is detrimental to both climate action and the organisation’s reputation. Should any companies want to display their commitment to the cause, it’s great to know that there are organisations like B Corp working on providing certified credentials.”

Greenwashing is when companies mislead stakeholders about their environmental practices to appear more sustainable than they are. Greenwashing can undermine genuine efforts, erode trust, and misguide consumers and industry stakeholders.

No Sign of the Famous Unplayed Catalogue Tracks Server Cost

Strangely enough we don’t see any mentioning of the huge cost that comes with unplayed tracks on Spotify. As we reported, Spotify will not be paying royalties for songs with fewer than 1,000 streams in a year.

But the deeper issue is the cost related to tracks that never get played. Nearly 25% of the tracks on streaming services had no streams at all. With the constant growth of the music catalog, unstreamed songs are predicted to reach a whopping 100 million by 2028.

The cost of maintaining these platforms has increased dramatically, from $35 million in 2019 to more than $130 million in 2022. So removing the unplayed tracks from Spotify would be a real sustainable move as it would mean less energy use to keep servers up with unplayed tracks.

In a reaction Impala says this: “Regarding streaming, IMPALA has had a position on the scope of responsibility for a while now, which we included in our ‘standards’ report published early last year. In a nutshell, while we’re working closely with DSPs to encourage greater transparency and support them towards measuring and reducing the impact of streaming, their emissions are excluded from the responsibility of labels, who we represent.

You can find the full report here, and I’ve also included the relevant text below. We’ll also include this in our business case report to avoid future misinterpretation. Thank you for bringing that to our attention.”

This is the relevant text that we were sent by Impala:

Standardising the sector’s approach on streaming is vital. The group reviewed the whole chain and reached a key set of conclusions related to the scope of responsibility concerning digital distribution.

Emissions from downstream digital distribution (the distribution of digital recordings through Digital Service Providers [DSPs] and consumption by fans through streaming services or digital download) are excluded from the responsibility of labels for the following reasons:

• Scope of responsibility – labels do not own or control DSPs which are the responsibility of third parties who are already taking responsibility for the relevant emissions.
• Influence – record companies have no direct control over the distribution of digital files once they have distributed to DSPs, or influence over emission reduction programmes.
• Size – due to a lack of available data, it’s not possible for the recorded sector to estimate with accuracy the size of emissions from digital distribution. The necessary data is controlled by DSPs and their downstream partners. Some DSPs are working towards gathering data from their operations and are establishing emissions calculation methodologies. We refer to this, as availability of data is part of the GHG protocol, but as noted above, scope of responsibility and lack of influence mean that DSP emissions (including subscriber emissions) are not counted as record company emissions. (This is the same as for other downstream areas of activity in the music market, such as physical retail.)

Digital distribution is a vital part of our industry and makes up a significant portion of income for our members. We’re therefore working closely with DSPs to encourage greater transparency and will support towards measuring and reducing the impact of streaming. As part of the Music Climate Pact and our own Climate Charter, we call on DSPs to work collaboratively to share data and knowledge on this issue.

Here is what Impala says in its current version of their business case regarding sustainability.

1. Financial Savings and Environmental Impact Reduction:
   • Companies reported important savings in manufacturing, distribution, energy, and travel costs. For instance, labels like K7! Music have reduced costs by opting for green vinyl (PET), which cuts energy consumption by 70-80% compared to PVC.
2. Internal Innovation:
   • Embracing sustainability has driven internal innovation. For example, some companies have optimized logistics by shifting from air to sea freight and encouraged remote meetings, maximizing staff efficiency​. The introduction of new formats, like 140g vinyl instead of 180g, has proven cost-effective with minimal impact on audio quality.
3. Supply Chain Improvements:
   • Sustainable practices have led to operational efficiencies and cost savings. Local sourcing and just-in-time inventory management have minimized excess stock and lowered storage costs. For instance, labels reported benefits from using lightweight materials, reducing transportation and packaging costs​.
4. Strengthening Supply Chain Relations:
   • Enhanced transparency and collaboration within supply chains foster positive changes. Suppliers publishing their sustainability data and collaborating on certification systems have presented new opportunities for large-scale sector improvements.
5. Competitive Position and Brand Awareness:
   • Sustainability has bolstered companies’ competitive positions. Labels such as Secretly Group and Beggars Group have seen improved brand perception and competitive advantage through their sustainability efforts. For instance, public engagement and recognition as sector leaders have enhanced their visibility and appeal.
6. Regulatory Compliance and Financial Resilience:
   • Proactive sustainability measures help companies stay ahead of regulatory changes. By implementing tools like the Impala Carbon Calculator, companies can prepare for future regulations and tax incentives, ensuring long-term financial resilience.
7. Attracting and Retaining Talent:
   • Sustainability initiatives have positively impacted employee recruitment and retention. Companies noted that a focus on sustainability fosters a purpose-driven work environment, attracting younger generations who value social responsibility.
8. Attracting Artists:
   • Labels with strong sustainability reputations attract more artists. Artists increasingly engage with labels on sustainability practices, contributing to positive public perception and industry leadership.

Survey Methodology

The survey was conducted through ‘qualitative interviews’ with selected Impala member labels from different territories, sizes, and stages of their sustainability journey. Research projects from entities such as Music Declares Emergency, British Phonographic Industry (BPI), and Key Production supported the survey findings, showing that music fans prioritize climate action and are willing to pay more for sustainable products, so Impala claims.

Impala itself offers tools like the Carbon Calculator to help members track and report their carbon footprint. The program aims to halve greenhouse gas emissions before 2030 and achieve net-zero emissions before 2050. It encourages members to take action by measuring their carbon footprint, reducing emissions, and investing in environmental projects.

About Impala

Established in 2000, Impala represents over 6,000 independent music companies across Europe. Known for their innovation and artist discovery, these companies produce more than 80% of all new releases and account for 80% of the sector’s jobs.

Bernard - Side-Line Staff

Chief editor of Side-Line – which basically means I spend my days wading through a relentless flood of press releases from labels, artists, DJs, and zealous correspondents. My job? Strip out the promo nonsense, verify what’s actually real, and decide which stories make the cut and which get tossed into the digital void. Outside the news filter bubble, I’m all in for quality sushi and helping raise funds for Ukraine’s ongoing fight against the modern-day axis of evil. Besides music I’m also an SEO and AI content flow specialist and have an interest in everything finance from stocks to crypto. There is music in everything!

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A few weeks ago we wrote an article on Greenwashing in the music industry. Some considered it to be nonsense but behold, there is something brewing in the music world with the launch of a Music Industry Climate Collective and a Music Climate Pact.

Music Industry Climate Collective

Sony Music Group, Universal Music Group, and Warner Music Group have now formed the Music Industry Climate Collective (MICC) to address environmental challenges related to the global climate, particularly within the music industry. This collaboration aims to amplify environmental stewardship and provide tailored recommendations and strategies for music companies of all sizes.

One of MICC’s first initiatives is to offer comprehensive guidance for measuring scope 3 greenhouse gas emissions, which are indirect emissions occurring in the music industry’s value chain, including product manufacturing, distribution, and licensing.

The MICC has worked with scientific experts to develop the first draft of this guidance, which will be available for industry participants to review. Additionally, the MICC has established an advisory council comprising independent record labels, value chain partners, and climate experts to gather broader industry input. The aim is to set a science-based standard, fostering climate resilience within the music sector. This initiative also aims to provide critical guidance to partner companies starting to measure their emissions and promote consistency in how music companies develop and disclose greenhouse gas inventories.

Music Climate Pact

Another initiative is the Music Climate Pact, which has as a vision “to harness the power of the music industry towards inspiring transformational action on the climate crisis.” By aligning as a sector, they stand to de-politicise sustainability and address their biggest environmental impacts in an efficient and collaborative way. “There is a lot of work to be done if we are to become a more sustainable industry, but we will be guided by climate science and take tangible, unified action and regularly update on our progress.”

The Pact’s founder signatories have committed to:

• Take individual and collective action to measure and reduce our greenhouse gas emissions (scopes 1, 2 and 3)
• By February 2022, have either signed the Science Based Targets standard commitment letter stating that we will commit to setting science-based targets or will have joined the Race to Zero programme
• Work together as an industry to establish carbon measurement methodologies, tools and frameworks backed by climate science
• Work in partnership with shared suppliers and digital streaming platforms (DSPs) to obtain data and drive emission reduction projects in a collaborative fashion
• Support artists in speaking up on climate issues
• Communicate openly with fans about the impacts of the music industry.

Businesses signing up after the launch must have already signed up to one of the two pathways.

Basically what is being presented by these two initiatives is a lot less than what we talked about in our initial article. So it remains to be seen if all this will be something else than just green windowdressing, after all Greenwashing is rampant with concert organisers for instance as we pointed out. And that is where the biggest money is these days for the traveling artists.

Eldrina Mich

As Eldrina Mich I work as a go-between and a devil’s advocate when it comes to Side-Line. If our own staff needs to be interviewed then ask the questions no one else dares to ask.

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Greenwashing in architecture happens a lot, but what about the music industry? “It’s an issue”, says Figen Sekin – a Turkish specialist in sustainability. “A growing number of companies claim eco-friendly practices while possibly engaging in environmentally harmful activities.”

The production of physical media, energy use during events, and merchandise manufacturing are areas where transparency is vital. Fans and artists alike are pushing for genuine sustainability efforts, scrutinizing claims to ensure that eco-friendly messages aren’t just a marketing ploy but a reality.

Together with Sekin we checked into 3 products that have eco-friendly solutions and will check if festivals are really so eco-friendly as they claim to be.

Bio vinyls in the music industry, the real solution or greenwashing?

Traditional vinyl is made from PVC, which is derived from fossil fuels, and the entire process is environmentally damaging​​. A fact. Bio-vinyls produced with reused PVC represent a step towards sustainable practices in the music industry. Figen Sekin: “The production plants basically aim to reduce the environmental footprint by recycling materials that would otherwise contribute to waste. However, the effectiveness and the true environmental impact of these bio-vinyls often are questioned.”

Are these practices genuinely sustainable or do they simply serve as a band-aid solution that allows the industry to appear green without making significant changes.

“Bio-vinyls, like the ones produced by Optimal Media in collaboration with PlastChem, are an innovative step toward sustainability in the vinyl record industry,” Sekin says. Their BioVinyl is made from bio-based PVC, which uses recycled cooking oil or industrial waste gases instead of petroleum, leading to significantly reduced CO2 emissions​​. All good news?

Sekin has some doubts: “Well, you also have to look at the entire production lifecycle. For instance, the PVC granulate used for pressing vinyl can release highly toxic chlorine-based chemicals, from production to disposal. Even eco-focused plants like Deep Grooves acknowledge that while they strive for sustainability, some aspects like the granulate still pose challenges. They actively seek out the most eco-friendly granulate and employ eco-methods even for special patterns and limited editions​​.”

With vinyl sales increasing, or better getting a revival, the impact of their production and distribution on the environment is significant. But some plants go even further and have invested in technologies that reduce reliance on electricity or fossil fuels, like the steam presser from Vyril used by Smashed Plastic in Chicago​​.

In short, initiatives by pressing plants and companies like Optimal Media and Deep Grooves show a promising direction, “with a shared vision to reduce the environmental footprint of music production and distribution” Sekin adds.

What about the cost?

Introducing sustainable practices like the production of bio-vinyls does often come with financial implications. “The research and development of alternative materials, obtaining certifications like ISCC PLUS, and implementing greener manufacturing processes can increase production costs,” Figen Sekin says. And she adds: “However, the long-term benefits, like reduced environmental impact and appeal to environmentally conscious consumers, can potentially offset these initial expenses. Moreover, as demand for sustainable products grows and technology advances, the cost of eco-friendly alternatives may decrease over time.”

Bio-based vinyl compounds, which include bio-based plasticizers, could be more cost-effective than traditional petrochemical-based vinyl. Teknor Apex’s BioVinyl flexible vinyl compounds, for example, use these plasticizers, which have shown greater efficiency than traditional plasticizers, reducing the amount of plasticizer needed per pound of compound, which can lower costs​​. This efficiency, coupled with the reduced carbon footprint of BioVinyl compounds, suggests potential cost benefits over traditional vinyl production methods.

Despite this, it’s important to note that transitioning to these more sustainable materials can involve upfront costs for research, development, and certification. The overall cost implications would likely depend on factors such as scale of production, technological advancements, and market demand for sustainable products. Sekin adds: “It seems that while initial costs may be higher for setting up eco-friendly production, the long-term savings and benefits could balance or even outweigh these initial investments.”

Eco-friendly produced CDs

Eco-friendly alternatives for CD production are also available, focusing on reducing carbon emissions and environmental impact. For example, Breed Media offers a range of manufacturing and packaging solutions with minimized environmental impact, including the Digifile for more sustainable CD and DVD packaging. This option reduces carbon emissions by up to 80% compared to traditional CD jewel cases and uses FSC certified sustainable card, vegetable-based inks, and non-toxic, water-based varnish. Their products are 100% recyclable and produced with environmentally-focused ISO-certified methods​​.

What about the cost?

Again, the shift towards sustainability often comes with a premium due to the materials and processes used. “However,” says Sekin, “these costs could be mitigated over time as sustainable practices become more widespread and efficient. If you’re considering such alternatives for CDs, it’s worth exploring these options further with manufacturers who specialize in eco-friendly production.”

Eco-friendly produced T-shirts

There are eco-friendly options for T-shirt production as well. Companies like No Nasties and The Good Tee are at the forefront of this movement.

No Nasties offers T-shirts made from 100% fair trade and GOTS certified organic cotton, using non-toxic dyes. They ensure their entire supply chain, from cotton farming to manufacturing, is sustainable and they contribute to the community by planting trees and supporting local initiatives​​.

The Good Tee also uses 100% fair trade and GOTS certified organic cotton, AZO-free non-toxic dyes, and incorporates materials like coconut for trims and buttons. They trace their supply chain transparently, ensuring ethical labor practices and use biodegradable packaging for shipping. As a Certified B Corp, they’re committed to meeting rigorous standards of social and environmental performance​​.

Both companies exemplify a growing trend in the apparel industry to reduce environmental impact through sustainable practices, from the sourcing of materials to the manufacturing processes and beyond.

Sekin concludes: “The cost may be higher compared to standard T-shirts due to the more sustainable production methods and the higher quality of materials used.”

Greenwashing rampant with concert organisors

Accusations of greenwashing have been raised against music festivals and venues. Activists and scholars have criticized some festivals for greenwashing and lack of transparency over their sustainability data. For instance, major events like Tomorrowland have been called out for their large carbon footprint due to audience travel, which significantly outweighs the carbon emissions from waste produced at the festivals​​. Despite efforts to promote green initiatives, the reliance on diesel generators and the extensive carbon footprint from mass transit raise questions about the effectiveness of these measures​​.

Furthermore, data on the actual environmental impact of festivals is scarce, making it difficult to hold them accountable. Only a small portion of festivals have been found to calculate their carbon footprint, and while innovative tools for better measurement and CO2 calculation are becoming available, the actual implementation is still in the early stages​​.

Figen Sekin: “Criticism has also focused on the need for festivals to enforce their sustainability initiatives rather than just promoting them, showing the importance of action over appearance​​. The accusations of greenwashing suggest that more concrete actions and transparency are necessary to achieve genuine sustainability in the music industry.”

Some music venues and festivals are already implementing a variety of eco-friendly initiatives to reduce their environmental impact:

1. EarthPercent by Brian Eno: This initiative aims to support the music industry in transitioning to more sustainable practices. Brian Eno, a prominent figure in music, launched EarthPercent as a means to provide a simple way for the music industry to fund actions addressing the climate emergency. The initiative suggests donating a small percentage of revenue from various aspects of the industry to support climate-related projects.
2. International Music Summit’s Eco Badge and Eco-Tax: IMS introduced the Eco Badge initiative to incentivize attendees to use sustainable means of transport, offering discounts to those who could prove eco-friendly travel. Moreover, an eco-tax applied to delegate badges helps fund environmental efforts, such as beach cleaning. They are also working towards an environmentally friendly stage setup for their prominent Dalt Villa event, acknowledging the importance of sustainable practices in even the most visible parts of their operations.
3. A Greener Festival’s Role: Acting as a pioneering force for sustainability in the music industry, A Greener Festival offers education, resources, and recognition through awards for festivals moving towards eco-friendliness. Their Greener Festival Awards have seen an increase in applications, indicating a growing commitment across the industry to sustainability.

The benefits are quite important though.

• Cost Savings: Energy-efficient systems and waste reduction programs, while initially expensive, can lead to significant cost savings over time. The investment in green technology can offset the initial costs through reduced energy and maintenance costs​​.
• Reputation: Venues with strong sustainability initiatives can enhance their reputation, attracting environmentally-conscious clients and attendees​​.
• Regulatory Compliance: Proactive measures can help venues comply with sustainability regulations, which are becoming more common, avoiding potential legal issues​​.

What about the costs

Implementing eco-friendly measures in music venues and festivals comes with both costs and benefits:

The challenges:

• Initial Costs: Eco-friendly designs and initiatives often involve significant upfront investment. For instance, installing solar panels, setting up waste recycling systems, or purchasing biofuel generators can be expensive. Such costs may be a barrier, especially for smaller venues or festivals with limited budgets. The return on investment for these green technologies can take several years to realize, necessitating long-term financial planning.
• Resistance to Change: Stakeholders, including investors, sponsors, and even attendees, who are accustomed to traditional practices may resist changes necessary for sustainability. This resistance can stem from a variety of concerns, such as the fear of increased ticket prices, changes in the event experience, or simply the inertia of established ways of doing things. Overcoming this resistance often requires education, clear communication about the benefits of sustainability, and sometimes, compromises in the short term to achieve long-term goals.
• Regulatory and Standards Modification: Compliance with existing regulations and standards can be a hurdle in implementing sustainable practices. For example, building codes may not accommodate innovative eco-friendly designs, or local waste management regulations may not support the type of recycling initiatives a venue wants to introduce. Navigating this bureaucracy can be time-consuming and costly, and may require venues to advocate for changes in local or regional policies, which is a process that can take years and involve extensive lobbying efforts.

And Figen Sekin concludes: “Lots of good things happening, some other aspects seriously need an eco-upgrade, especially in the festival sector.”

Bernard - Side-Line Staff

Chief editor of Side-Line – which basically means I spend my days wading through a relentless flood of press releases from labels, artists, DJs, and zealous correspondents. My job? Strip out the promo nonsense, verify what’s actually real, and decide which stories make the cut and which get tossed into the digital void. Outside the news filter bubble, I’m all in for quality sushi and helping raise funds for Ukraine’s ongoing fight against the modern-day axis of evil. Besides music I’m also an SEO and AI content flow specialist and have an interest in everything finance from stocks to crypto. There is music in everything!

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