Sustainability in Retail: Meeting ESG Goals with Technology

Today, sustainability is a fundamental business priority for retail and CPG brands. Consumers are increasingly holding companies accountable for their environmental impact, and regulatory bodies are mandating transparency and progress on sustainability goals. The message is clear: adopting sustainable practices is a competitive necessity. By leveraging technology to optimize resources and meet ESG (Environmental, Social, and Governance) requirements, businesses can drive innovation, improve efficiency, and create lasting value for stakeholders.??

Here are my observations on how technology drives sustainability in retail:?

1. Enhancing Supply Chain Transparency: A staggering 96–98% of emissions for many industries, including fashion and home goods, occur within Scope 3, encompassing supplier activities and product lifecycles. Brands like Puma are tackling this challenge by implementing data-driven supply chain initiatives. Puma’s partnership with financiers to incentivize sustainable supplier practices has resulted in an $800 million increase in supply chain financing for eco-friendly operations over six years. Transparency tools powered by AI and IoT are enabling companies to track, measure, and manage these emissions with unprecedented accuracy.?
2. Optimizing Resource Usage: Companies like IKEA are leading the charge in reducing waste and improving efficiency through circular models. By integrating sustainable material sourcing and focusing on reusable packaging, IKEA is addressing waste at the product design and distribution stages. Technologies such as AI-powered inventory systems and predictive analytics are further reducing waste by ensuring accurate supply-demand alignment, which decreases surplus production and unsold inventory.?
3. Engaging Consumers with Sustainability: Over 70% of consumers are willing to pay a premium for sustainable products, highlighting the business case for embedding sustainability into customer offerings. L’Oréal, for example, has adopted sustainable practices such as eco-friendly packaging and carbon-neutral facilities to meet consumer demand while enhancing brand loyalty. Providing detailed ESG information and engaging storytelling about these efforts can further strengthen consumer trust and drive sales.?

Transitioning from Implementation to Getting Results?

Implementing sustainability-focused technologies is only part of the equation. The real potential of these innovations lies in their ability to deliver measurable benefits across operations, branding, and cost management. Retailers who embrace these technologies not only address regulatory and environmental concerns but also position themselves as leaders in a competitive market. Companies leveraging these solutions are finding tangible outcomes that go beyond compliance, driving efficiency, profitability, and customer loyalty.?

The following examples showcase the transformative benefits of sustainability technology and highlight how forward-thinking retailers are redefining their business strategies.?

1. Reducing Operational Costs: Embedding sustainability into operations can lead to significant cost savings. Microsoft’s collaboration with Gruppo Bimbo centralized emissions data across operations, reducing waste and improving efficiency while advancing long-term sustainability goals. Similarly, Co-op Group in the UK saved ￡400,000 (approx. $500,000 USD) annually by adopting hybrid cloud solutions to reduce its data center footprint.?
2. Building Resilience and Innovation: Retailers that integrate sustainability technologies are better positioned to adapt to shifting regulatory landscapes and market demands. AI-driven tools for carbon accounting and waste reduction have empowered brands to make informed decisions that support long-term growth. Albert Heijn, a Netherlands-based supermarket chain, utilized AI to dynamically adjust prices on near-expiration items, reducing food waste and improving profit margins.?
3. Strengthening Brand Value: Sustainability efforts aligned with technology noth meet regulatory expectations and enhance brand equity. Transparent ESG practices foster trust among stakeholders and create differentiation in a crowded market. Eckes-Granini, Europe’s largest fruit juice producer, increased its sustainable sourcing to 70% using data-driven supply chain strategies, aiming for 100% by 2030—an achievement that resonates with eco-conscious consumers.?

Sustainability is a business imperative that touches every part of the value chain. The integration of advanced tech like AI, IoT, and data-driven platforms is enabling retailers to align their operations with environmental goals while achieving measurable business outcomes. From reducing waste and optimizing resource use to building stronger consumer relationships, technology is unlocking incredible opportunities for innovation and profitability in sustainability.??

Companies that act on this now will lead the way in defining the future of sustainability. NRF 2025 is the perfect opportunity to explore how your brand can embrace these innovations and set the standard for environmental and business excellence.??

Let’s have a conversation about how these technologies can transform your sustainability efforts and help you achieve your ESG goals. Schedule a meeting with me here at NRF 2025, and together we can shape a greener, more profitable future for your business.?

About the Author:

Matt B. is the Director, TCS Customer Intelligence & Insights for retail. Matt is a seasoned New Business Development Executive. Specializing in the retail and CPG spaces, he focuses on empowering organizations to optimize their marketing investments for personalized customer brand engagement and supports their sustainability investments to help drive positive change and transparency.