5 "Sustainability in Retail" Trends in 2023
As we are already nearing the end of the first month of 2023 at record-breaking speed, we have taken some time to look at the main trends that we will see in the retail and grocery sector in terms of sustainability in 2023.
The reality is that sustainability in the grocery and F&B sectors is quickly becoming a non-negotiable due to a massive rise in demand for more sustainable products from consumers. (1)
Here are our 5 predictions for sustainability in the retail sector in 2023.
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1. Greater Transparency
Whether we are talking about materials used along a company’s value chain, their working conditions or animal welfare - companies who want to survive and thrive will have to meet customers' increasing demand for more transparency, or even radical transparency (link article about RT). (3)
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Who is already doing it?
British online retailer Ethical Superstore is a huge contender when it comes to being transparent about the goods they sell, which range from food and cleaning products to toys. Ethical Superstore allows you to filter products based on their ethical values, so it is easy for customers to choose products that align with their personal beliefs. (5)
Another example is American outdoor clothing brand Patagonia, which has a "Footprint Chronicles" feature on their website that provides detailed information about the environmental and social impact of their products. (6)
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2. Increased Regulation
The introduction of the EU law on sustainability labelling in March 2022 is just one of numerous steps taken by the EU to force companies to be clear and transparent about their processes and to empower the consumer to make choices in line with their priorities, in many cases sustainability.
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Who is already doing it??
Recently, the Supply Chain Due Diligence Act was implemented in Germany, taking effect this month? (January 2023). This law aims to ensure that large companies are implementing "greener" supply chain practices. It requires companies to monitor and ensure that social and environmental standards are upheld throughout their entire supply chain, including both their own operations and those of their direct suppliers worldwide. Companies are also obligated to take action if any violations are discovered. (7)
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3. An Expanding Circular Economy
The term circular economy refers to the practice of resources remaining in use for as long as possible. This is in contrast to the traditional linear economy, in which resources are extracted, used, and then discarded as waste. The circular economy aims to reduce waste, decrease dependence on finite resources, and create closed-loop systems in which materials and resources are continually cycled. (2)
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Who is doing it?
Austrian Bakery Therese M?lk came up with the brilliant idea of using yesterday’s bread as their basis for distilling a Tyrolean-style gin, that has been counted among the best gins in the entire country by Falstaff. 400 bottles of the award-winning gin use up 1.000kg of day-old bread, which otherwise would have gone entirely to waste.?
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4. Improving Delivery Methods
It is important to note, that over 90% of grocery retailers’ CO2 emissions are Scope 3, which means they are being produced by other players along the grocer’s value chain, such as emissions from the transportation of goods from suppliers to the grocery store or emissions from the farming and processing of food products. Therefore, this should really be the main focus when it comes to grocers and food brands reducing their climate impact.
However, there are certain steps they can take regarding their own business practices that can limit some of their direct emissions. One of them is improving delivery methods to reduce the carbon footprint by switching to electric vehicles, drones, and cargo bikes.
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Who is doing it?
Many big logistics companies are starting to offer drone delivery services. Due to the pandemic they were used the world over to safely deliver medication to places in need.
One drone company that is now expanding the use of their delivery drones is Wing. In 2022 they successfully partnered with DoorDash, Australia’s version of mjam or JustEat. It looks very much like the coming year will see considerable expansion in this area. (8)
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5. Eco-friendly Workplaces
If companies want to retain the brightest talent among the Gen Z workforce, they will have to buckle up and get to work in making their operations more sustainable. In a dwindling workforce, Gen Z and Millennial workers place unprecedented importance on the topic of sustainability.
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According to a 2021 global survey conducted by the IBM Institute for Business Value, a significant majority (71%) of both current employees and job seekers consider environmentally sustainable companies to be more appealing as employers. (4)
It seems obvious then, that companies who do not invest in sustainability will lose access to the brightest minds among the younger generation. Therefore, in 2023 workplaces will consider how to become more sustainable to appeal to potential employees.
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Who is doing it?
Clif Bar & Company, producer of energy bars and drinks, moved into new green headquarters as early as 2010. The building is repurposed, and 100% of all construction wood was reclaimed (from old railroad ties, barns, etc.) or harvested from sustainably managed forests.
They have also implemented a number of initiatives to reduce the company's environmental impact. Their Cool Commute program provides incentives for employees to leave their cars at home or switch to fuel-efficient or low-emission vehicles. The program also includes assistance for those who wish to cycle to work. Additionally, the Cool Home program makes it easier and more affordable for employees to make environmentally-friendly improvements to their homes.?
They also have composting programs to reduce waste and in 2011 became the first company in North America to install a smart solar array with a capacity of over 500 kWh. This array provides the majority of the company's electricity. Additionally, the solar panels provide 70% of the hot water used by the company.? (9)
Have you enjoyed this list?
Make 2023 the year you lead the field in the latest sustainability in retail trends!
Keeping abreast of the latest trends is vital if you want your business to not only survive but thrive. What are your sustainability goals for 2023? Do they include wading through mounds of data to identify how you can make your production processes more eco-friendly?
If so, we have great news! We want to assist you in achieving that goal with minimum hassle by conducting our Product Impact Estimates for your products. Find out what your impact hotspots are and which alternatives can help you move forward in 2023.??
Have we got you interested? Simply send us an email at [email protected] to learn more about how we can help you really kickstart your sustainability journey in 2023.
Sources:
1 https://www.businesswire.com/news/home/20211123005565/en/The-State-of-Consumer-Spending-Gen-Z-Influencing-All-Generations-to-Make-Sustainability-First-Purchase-Decisions
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9 https://www.clifbar.com/stories/our-sustainability-journey