Key findings

Sustainability is becoming a baseline for innovation

Rising focus on ESG indicators by governments and investors pushes businesses to include sustainability into the core of their innovation processes. The R&D and product development stages are crucial, as rethinking product design to minimise a company's carbon footprint can bolster resilience, enhance the product’s value proposition and mitigate financial risks.

Boosting more ethical and environmentally responsible sourcing

Companies are prioritising transparent carbon reduction strategies, including ethical sourcing and biodiversity preservation. To mitigate climate change risks like water scarcity and raw material shortages, they are backing regenerative agriculture and novel technologies like cultured meat and precision fermentation, fortifying a sustainable supply chain.

Focusing on operational emissions reductions to address net zero commitments

Net zero pledges are driving sustainable manufacturing innovation, shifting focus from carbon neutrality to genuine emissions reduction. This includes adopting zero waste practices, managing water responsibly, and investing in energy-efficient technology whilst brands are reformulating products to include more sustainable alternatives, like upcycled ingredients.

Technology, local sourcing, and efficient packaging can alleviate complex supply chains

Increasing costs and supply chain challenges are pressing fmcg players to prioritise logistics optimisation. This involves using alternative fuels, enhancing delivery efficiency, maximising warehouse space, and incorporating electric vehicles. Also, optimising packaging design can reduce both costs and emissions, ensuring faster delivery with less environmental harm.

Retailers are key to streamline sustainable shopping

Retailers play a crucial role in driving sustainability within the supply chain. Their partnerships with sustainable suppliers, user-friendly tools for identifying green products, commitment to reducing emissions through initiatives like renewable energy investment and sustainable private label ranges are making eco-friendly shopping more accessible.