Best Practices: ESG & Sustainability Digital Strategies For CPG & Retail
23 Apr, 2024
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Executive Summary
As sustainability continues to grow in importance on the corporate agenda, firms are increasingly looking for guidance on how to enhance their ESG and sustainability programmes. With no one-size-fits-all sustainability strategy, firms are leveraging industry best practices and prioritizing the use of software and consultants with industry-specific experience. This report provides firms in the consumer packaged goods (CPG) and retail sectors with examples of best practices and guidance on how to address some of the unique challenges they face, such as managing complex supply chains while meeting changing consumer preferences. Additionally, service providers and software vendors can leverage this report to better understand the pressures facing firms in these sectors.
The unique position of CPG and retail firms
CPG and retail firms are under increased pressure to report their sustainability data and improve performance
Challenges for the CPG and retail sectors
Best practices for firms developing a sustainability digital strategy
Firms must establish internal processes to set the foundation for successful data collection and management
Collaboration with external stakeholders is crucial for effective sustainability programmes
Establishing the technical foundation for software implementation is a collaborative effort
Digital solutions can help CPG and retail firms navigate key sustainability challenges
CPG and retail firms are under increased pressure to report their sustainability data and improve performance
Challenges for the CPG and retail sectors
Best practices for firms developing a sustainability digital strategy
Firms must establish internal processes to set the foundation for successful data collection and management
Collaboration with external stakeholders is crucial for effective sustainability programmes
Establishing the technical foundation for software implementation is a collaborative effort
Digital solutions can help CPG and retail firms navigate key sustainability challenges
Figure 1. Verdantix segmentation of the CPG and retail sectors
Figure 2. Supply chain pressures and ESG reporting requirements strongly impact the CPG and retail sectors
Figure 3. Regulations targeting CPG and retail firms
Figure 4. Priority sustainability topics identified by representative firms in materiality assessments
Figure 5. CPG and retail firms must manage sustainability throughout their supply chains
Figure 6. Examples of collaboration to improve sustainability performance
Figure 7. Examples of industry groups helping firms with sustainability initiatives
Figure 8. Progression of software adoption by CPG and retail firms
Figure 2. Supply chain pressures and ESG reporting requirements strongly impact the CPG and retail sectors
Figure 3. Regulations targeting CPG and retail firms
Figure 4. Priority sustainability topics identified by representative firms in materiality assessments
Figure 5. CPG and retail firms must manage sustainability throughout their supply chains
Figure 6. Examples of collaboration to improve sustainability performance
Figure 7. Examples of industry groups helping firms with sustainability initiatives
Figure 8. Progression of software adoption by CPG and retail firms
IKEA, Costco, SupplyShift, REI, Burberry, Clorox, Anheuser-Busch, Databricks, Under Armour, Grove Collective, Adidas, Woolworths, Thayers, Microsoft, Follow Your Heart, Leather Working Group, JBS Foods, Brooks, Global Reporting Initiative (GRI), International Chamber of Commerce, Aldi, PepsiCo, AB InBev, US Food and Drug Administration (FDA), Wayfair, CropX, Rochester Institute of Technology, ECCO, Crocs, Sustainable Agriculture Initiative (SAI) Platform, Levi Strauss & Co., Ben & Jerry's, National Retail Federation (NRF), Schneider Electric, Circular Action Alliance, On, S&D Coffee and Tea (now Westrock Coffee), TrusTrace, Hershey's, McCormick, Baltimore City Public Schools, EcoBeautyScore Consortium, Alliance for the Chesapeake Bay, Keurig Dr Pepper, Risilience, Park Prive, NRF Center for Retail Sustainability, Best Buy, South African Plastics Pact, Procter & Gamble, Coach, Ellen MacArthur Foundation, Trove, Fossil Group, Carrefour, BCG, Land O’Lakes, Datamaran, Compliance & Risks, Dollar Tree, Mars, Nestlé, Target, Vibrant, Kroger, Nike, P&G, American Beverage Association, Danone, lululemon, Amazon, Kraft Heinz, Mondelēz International, Samsara Eco, Lego Group, Sustainability Accounting Standards Board (SASB), Science Based Targets initiative (SBTi), eBay, Reformation, New Balance, Grupo Bimbo, Colgate-Palmolive, Walmart, Hero Group, World Economic Forum (WEF), TOMS, Patagonia, LVMH, Eileen Fisher, US Customs and Border Protection, Amazon Web Services (AWS), Tide, Unilever, UN, Durham Parks Foundation, Alibaba, Retail Industry Leaders Association (RILA), Accountability Framework, Impossible Foods, Coca-Cola, CVS, L’Oréal
About the Authors
Jessica Pransky
Principal Analyst
Jessica is a Principal Analyst at Verdantix, specializing in providing insights to sustainability leaders and analysing ESG and sustainability reporting software. She advises …
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Kim Knickle
Research Director
Kim Knickle is a Research Director at Verdantix, bringing more than two decades of analyst experience to the evolving world of sustainability. Her current research spans ESG a…
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