While retail businesses are prioritising sustainability, a majority of them are falling short of making meaningful progress.
Research from Boston Consulting Group found that most retailers are embarking on new business opportunities when it comes to sustainability, but few are harnessing sustainability as an advantage. The research, conducted in partnership with World Retail Congress, also found that 60% of the surveyed firms believe their company’s sustainability goals are bold and differentiated.
However, more than half of the respondents have not set any sustainability key performance indicators. Less than 20% of them are on track to cut Scope 3 emissions, including those by suppliers. About 40% are on track to cut Scope 1 and 2 emissions. Companies are still abiding by sustainability basics, doing just about enough to meet regulations and minimum expectations of their stakeholders.
The article suggests that retailers need to ensure their sustainability indicators are weighed equally with costs and profits. Similarly, sustainability must have end-to-end integration, with sustainability KPIs incorporated at all different levels of their business. Localising production and interacting closely with suppliers can further help meet sustainability goals effectively.
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[4 minute read]