Innovation Watch: Behind the backlash
Sustainability Leaders | A World 50 Group Community
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For anyone with a passing interest in sustainability, the so-called “ESG backlash” is a story that has been gathering momentum for some time. Focused on a rejection of environmental, social and governance factors being used in business, the backlash has typically been seen as a political issue in the US. But is it now starting to have a tangible impact on companies' decision-making? And are we starting to see it shift to other regions?
These are two questions that the Sustainability Leaders community is actively asking. During a recent working session on communications in sustainability, several members shared that they are now distinguishing their branding and marketing approach in the US from that used in other regions. For instance, one company revealed that while the packaging of its products in Europe displays its environmental accomplishments, this messaging does not appear in goods sold in the US, for fear of such messaging eliciting a negative response.
But Europe hasn’t been completely free from the backlash, either. Recent high-profile examples of European companies watering down their climate commitments have been hitting the news. New ESG fund launches in Europe fell 10% last year (though markedly less than the 75% in the US). In the UK,?the country’s main opposition party recently cut its green investment pledge by half .
So, what does all this mean for the direction of ESG investment and progress? While companies in the Sustainability Leaders network expect the backlash could yet spread further, leaders are still committed to upholding and executing their strategies. Regardless of the terminology used – ESG or otherwise – the critical environmental and social issues that form part of sustainability remain central to a business’s license to operate. We may be past the “peak hype” of ESG, with perceptions of the term changing, but leaders are still certain that their work will lead to long-term, more sustainable growth for their businesses.
Robo-shop: Retailer uses AI and IOT to help cut food waste
A London grocery store has succeeded in slashing food waste thanks to an AI-based platform that helps staff identify products approaching their expiry datee, the Grocer reports .
Independent retailer Kavanagh Group has worked with technology providers Smartway and VusionGroup to deploy the Smartdetection Flash Evo system, which uses flashing lightssystem to help staff to spot products that are nearing the end of their shelf life and leverages AI to suggest ways to discount or donate them.
In addition to preventing more than 200 items from going to waste each week and reducing food waste by 1.2 tonnes of CO2 per month, the tool has also improved in-store efficiency by cutting the time staff spend manually monitoring expiry dates by 78%.
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Kavanagh’s, which operates SuperValu, Centra and Budgens stores in England and Ireland, said the technology also “facilitates, dematerialises and safeguards” the process by which food is donated.
Roy Horgan , senior executive VP for strategy, marketing and communications at VusionGroup, said: “We’ve helped create a store that is more efficient, profitable, self-learning and, most importantly, sustainable.
“It leverages internet of things and data technologies that can be deployed very quickly, with minimal impact on shop trading, while maximising returns for the business and generating a better experience for consumers.”
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