Retail Agility - sustainability matters

Retail Agility: Sustainability Matters

Putting the 'eco' in retail economics

We spoke to the UK’s top 100 retailers about the prioritisation of sustainability against cost concerns, sustainable supply chains and making green claims. Explore the headlines or download the report for the full research findings.

Battle of the priorities

Retailers understand the importance of sustainability, but many are struggling to safeguard it as a priority. Sustainability teams need to make themselves heard.

How important is sustainability to your business?

How has the importance of sustainability changed in the last year?

Grocery:

Fashion & beauty:

Home:

Lifestyle & leisure:

All:

Has sustainability had to take a step back due to the pandemic?

‍Our shareholders look at profits before sustainability

Safe bets, high risks and slow movers

In today’s market, not promoting your sustainability credentials is simply no longer an option. But the legal risks of making misleading claims is growing.

59% "more vocal" - 59% of retailers are becoming more vocal about their sustainability credentials.

‍52% "impossible to know" - Even though 52% say it’s impossible to know if they’re doing enough to say they’re sustainable.

‍73% "misunderstand" - And 73% believe customers misunderstand sustainability claims.

16% "very confident" - Only 16% are “very confident” they will meet the CMA’s expectations when it conducts a full review of green claims.

The report identifies three types of retailer, each with their own risks and opportunities:

"safe bets" - 38% becoming more vocal about their sustainability credentials and confident about CMA compliance.

"high risks" - 21% becoming more vocal about their sustainability credentials but not confident about CMA compliance.

"slow movers" - 41% not becoming more vocal about their sustainability credentials.

Greening the supply chain

When it comes to reducing emissions and using resources more efficiently, the supply chain is the area in need of most improvement.

What are the biggest areas for improvement when it comes to sustainability in retail?

• Supply chain issues - 61%
• Raw materials - 53%
• Customer communications - 42%
• Transport and logistics - 37%
• Packaging - 43%
• Warehousing and fulfilment - 23%
• Labelling - 22%

What are you doing to improve the sustainability of your supply chain and fulfilment?

• Sourcing closer to home - 54%
• Encouraging collection from store - 48%
• Stricter auditing rules - 46%
• Auditing more frequently - 44%
• Switching to an EV fleet - 35%
• Owning their own factories - 28%