Consumer Goods
& Retail

Sustainability experts for the consumer goods & retail sectors

The calls for sustainability action are getting louder

Consumers spent over $4 trillion on online shopping in the last year, almost a third more than the year before. Shopping is going through a radical shift and the global pandemic has sped this up. Retailers have been forced to adapt and innovate.

Consumers have more choice than ever, it's down to the producer and the retailer to meet customer demand. A good product is no longer enough to win a consumer's pound. Shoppers want more than just quality, often looking for products and brands that align with their personal values. In a recent Deloitte survey, over a third of consumers claim to have stopped purchasing certain brands due to ethical and sustainability issues. This is a huge hit off the bottom line.

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Further to consumer demands, Governments are also putting the squeeze on the retail sector with the introduction of key regulations. The Circular Economy Action Plan in the European Union, or the “Expended Producer Responsibility” aiming to support the development of circular production business models and reduce wastage of resources are shaping the industry and defining the sustainability strategies of global retailers.

The retail sector faces unprecedented challenges due to climate change. The imperative to take action to limit warming to 1.5°C has never been higher. All eyes are on retailers and manufacturers to reduce greenhouse gas emissions by optimising production processes to reduce energy, water and by-products.

The climate emergency, together with the loss of nature and rising inequalities, are the greatest and most complex challenges of our time. Consumers are aware of this, for retailers to thrive they must adopt innovative sustainable business models and align with the new green paradigm.

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Grappling with complex sustainability issues in the consumer goods & retail sector

Consumer goods carry a significant environmental impact. This impact is forcing responsible retail businesses to consider various aspects of their complex supply chains - raw material sourcing, production processes & labour conditions, transportation, marketing and end-of-life.

With a growing appetite for transparency and disclosure of carbon, water and waste footprints at product-level, retail consultants have an essential role to play in this transition by embedding sustainability effectively into their value chain.
Solutions such as green deliveries, recyclable packaging and a surge in product sustainability credentials (organic, fair trade, free of harsh chemicals etc.) are helping retailers to meet the demands of the rising green tide, but their key challenge is to also carefully manage consumer expectations of product quality, price, convenience, ethics (social and environmental) and transparency.

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Sustainability Issues

Responsible Sourcing

It is a known fact that humanity is consuming resources at a rate faster than the planet can replenish. This is a huge problem considering that overconsumption is driven by a minority of wealthy countries and the growth of new markets will amplify the pressure on natural resources. It is not all doom and gloom, an array of solutions exist and businesses have started developing and implementing responsible sourcing practices and collaborative partnerships as a response to industry standards, customer demand and regulatory requirements.

Our team can help your business implement sourcing policies, engage with suppliers to identify solutions, navigate the sustainable vs responsible conundrum in raw materials and quantify benefits.

Social and environmental impacts in supply chain

Retailers operate as part of a vast network of businesses, which help bring products to shelves on a journey from raw material extraction, production and transportation to consumers. The world of supply chain is a complex one, spans continents and is often operating at tight profit margins. Current operating models lead to significant social and environmental impacts, which if left unchecked, can pose a significant risk to companies.

Our team is well equipped to help businesses map these risks across the environmental and social dimensions and implement a strategic plan of action to align with the wider business context and ambitions.

Circularity and waste management

Our planet teaches us that waste is actually a resource. But our current practices pose various challenges which prevent us from keeping resources in the economic loop. Retailers face numerous hurdles, for example in the US alone it is estimated that 2.6mil tonnes of retail returns and excess inventory end up in landfills. There are significant opportunities to minimise waste generation and bring consumers along the circularity journey - from product design, to material choice, packaging, logistics and disposal. We help businesses improve their waste management practices, assess effective packaging solutions for products, quantify the benefits from recycling solutions and adapt the business model to circular economy principles.

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Client success Stories

Bunzl, the leading FTSE 100 company and global distributor defines its strategic sustainability framework for action.

UK fashion brand Seasalt addresses the key environmental hotspots across its value chain by measuring its carbon, water and waste footprint, resulting in the creation of a strategic sustainability roadmap.

Oak Furnitureland understands the importance of improving its ESG performance and has been implementing a range of initiatives across the company to drive positive change.

TCFD RECOMMENDATIONS

In November 2020, the UK announced that reporting in line with the recommendations of the TCFD will become mandatory by 2025 across the economy, with premium listed companies expected to comply by the end of this year.

Download our guide for expert insights on TCFD disclosure.

Download our expert guide to TCFD

Consumer Goods and Retail
Sustainability Consultants

With a specialist consumer goods and retail sustainability team, Avieco is well placed to support your business, your impact, and your sustainability challenges, to help you identify what really matters to you in your journey to becoming sustainable.

Find out how we can help