{"id":26283,"date":"2021-05-07T10:26:12","date_gmt":"2021-05-07T09:26:12","guid":{"rendered":"https:\/\/www.elixirr.com\/?p=26283"},"modified":"2025-10-31T10:57:21","modified_gmt":"2025-10-31T10:57:21","slug":"sustainability-from-within-is-it-worth-it","status":"publish","type":"post","link":"https:\/\/www.elixirr.com\/en-us\/sustainability-from-within-is-it-worth-it\/","title":{"rendered":"Sustainability from within: is it worth it?"},"content":{"rendered":"\n

Consumers are acutely aware of the threat of climate change, which in recent years has filtered through to their purchasing habits, namely buying with a conscience. Businesses have capitalized on this, building sustainability-focused brand images that are met with enthusiastic consumer praise. Retail and Fast-Moving Consumer Goods brands have pioneered green offerings with excellent results; organizations including Nike, Ikea, Toyota and Unilever drive over $1 billion<\/a> in revenue each year that can be directly attributed to a sustainable product or service.<\/p>\n\n\n\n

There\u2019s a catch. Sustainable product and service offerings are often more costly than their less eco-friendly counterparts, squeezing profit margins. To date, Retail and FMCG corporations have primarily devoted their attention to these sustainable products and services, which enhance customer engagement, acquisition and loyalty. But if the value of these offerings has little to no impact on your balance sheet, is it worth it?<\/p>\n\n\n\n

Retail and FMCG corporations are missing an opportunity to impact the bottom line – driving sustainability initiatives within<\/em> their organizations. Here\u2019s how they should do it.<\/p>\n\n\n\n

1. Create sustainable supply chains to drive down costs<\/strong><\/h4>\n\n\n\n

Internal green initiatives present the opportunity to streamline costs. Organizations that are embedding sustainability into their supply chains are benefitting from greater resource efficiency, waste management, and energy conservation. Retail and FMCG businesses are especially reliant on their ability to rapidly produce, deliver and manage new products; a more efficient, sustainable supply chain will deliver cost-efficiency. For example, online supermarket provider Ocado has revolutionised their warehouse system using Artificial Intelligence to forecast customer demand<\/a> and pre-stock their customer fulfillment centers. This initiative has resulted in 0.02% food waste<\/a> and a reduced environmental impact. Further, this innovative fulfillment center process allows Ocado to match supply with demand, optimizing sales and reducing working capital.<\/p>\n\n\n\n

Tesco have also unlocked similar benefits through improved process efficiencies. Improved fleet and fuel efficiency has been secured through better driver training and increased van capacity, with carbon reduction efforts saving 83 million miles<\/a> in delivery trips. Tesco also increased their usage of double-deck trailers which carry 80% more than single-deck trailers for just a 20% higher cost. In 2021, the supermarket chain\u2019s home delivery service introduced Lightfoot driver improvement technology<\/a> across its entire fleet; employee engagement and driving efficiency is anticipated to rise as emissions fall, with over 7,000 tonnes of costly CO2 projected to be cut in just one year.<\/p>\n\n\n\n

Retail and FMCG are missing an opportunity to impact the bottom line – driving sustainability initiatives within <\/em>their organizations…<\/p><\/blockquote>\n\n\n\n

2. Focus on sustainability to minimize risk<\/strong><\/h4>\n\n\n\n

Investing in sustainability is extremely valuable from a forecasting and risk management perspective. With an eye on long-term environmental conditions, organizations can future-proof their business against climate change and supply chain unpredictability. McKinsey estimates that up to 70% of corporations\u2019 EBITDA is at risk of climate change impact<\/a>, a statistic that could be further exacerbated for Retail corporations that typically manufacture their products in countries such as Bangladesh and Vietnam<\/a>. These regions have experienced a disproportionate rise<\/a> in extreme climate events such as flooding, which have already affected the Retail industry. Extreme floods in Thailand in 2011 caused Nike to close their factories and halt operations<\/a>, causing mass disruption in their global supply chain.<\/p>\n\n\n\n

By contrast, companies that have actively adapted to the increasing threat posed by climate change and reducing their overall environmental impact have seen tangible benefits in managing supply chain unpredictability. In response to a water shortage in India in 2004<\/a> and being forced to shut down one of their plants, Coca-Cola have put $2 billion toward reducing their water usage<\/a>. This investment has allowed Coca-Cola to protect against future threats and minimize the risk of supply chain unpredictability. Other organizations are following suit; Mars, Unilever and Nespresso<\/a> have invested in Rainforest Alliance certification, which is awarded to products and ingredients<\/a> that have been produced by farmers using socially, economically and environmentally sustainable methods. The certification keeps businesses accountable and drives their resilience to extreme climate events, safeguarding the long-term security of their production and product supply.<\/p>\n\n\n\n

Up to 70% of corporations’ EBITDA is at risk of climate change impact, a statistic that <\/p><\/blockquote>\n\n\n\n

3. Attract the right talent<\/strong><\/h4>\n\n\n\n

Retail and FMCG corporations can leverage internal sustainability to enhance their employee attraction and retention. It\u2019s no surprise that as customers seek brands with a sustainable agenda, the younger workforce is expecting similar accountability from their employers. Organizations with sustainable programs better attract and retain their employees. Over 70% of respondents to a survey<\/a> said they would be more likely to choose to work at a company with a strong environmental agenda; these organizations see a 38% increase<\/a> in employee retention. Equally, attracting talent who are motivated by a business\u2019 purpose boosts employee productivity, which impacts the bottom line. Studies indicate that organizations with environmentally sustainable practices experience a 16% rise in employee productivity<\/a>.<\/p>\n\n\n\n

4. Create sustainable products to drive innovation<\/strong><\/h4>\n\n\n\n

Delivering a new strategy, particularly in the Retail and FMCG space, that is focussed on sustainable products, suppliers and materials provides a unique opportunity to accelerate innovation, explore new market segments and tap into new revenue streams. Nike is an example that has disrupted the fitness space, embedding sustainability into their manufacturing process and re-inventing the way they produce shoes. By developing the innovative \u2018Flyknit\u2019 yarn process, Nike created a $1 billion+<\/a> product line. This has not only driven increased sales and customer engagement, but the yarn system also requires minimal labor, generates large profit margins and has reduced \u00a33.5 million of waste<\/a>.<\/p>\n\n\n\n

Waste not, want not <\/strong><\/h2>\n\n\n\n

Sustainable products and services undoubtedly drive increased customer engagement and sales. But to unlock the full potential of green solutions, Retail and FMCG corporations can\u2019t just use the sustainability brand tag as a customer attraction tool. They must embrace sustainability from an operational perspective; it will reap tangible long-term benefits.<\/p>\n\n\n\n

Consumers are also wising up. Climate change education and awareness is improving, meaning consumers are less likely to be attracted by greenwashing or cosmetic climate commitments. To stay relevant, Retail and FMCG corporations must embed green initiatives and sustainability into every fiber of their business. Those brands who fail to adapt will lag behind their competitors.<\/p>\n","protected":false},"excerpt":{"rendered":"

Consumers are acutely aware of the threat of climate change, which in recent years has filtered through to their purchasing habits, namely buying with a conscience. Businesses have capitalized on…<\/p>\n","protected":false},"author":1,"featured_media":26319,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[116],"tags":[274,102,145,159,121,208,180],"related_service":[76],"related_industry":[56],"class_list":["post-26283","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-fast-moving-consumer-goods","tag-innovation","tag-manufacturing","tag-operations","tag-retail","tag-supply-chain","tag-sustainability"],"acf":[],"yoast_head":"\nSustainability from within: is it worth it? - Elixirr - USA<\/title>\n<meta name=\"description\" content=\"Retail and FMCG corporations are missing an opportunity to impact the bottom line... embedding sustainability into their internal operations.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" 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class=\"wp-component-card__preview-icon\">\n <span class='edwp-svg '><svg width=\"47\" height=\"47\" viewBox=\"0 0 47 47\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n<g>\n<path d=\"M23.4141 0.539062C36.1232 0.539183 46.4258 10.8416 46.4258 23.5508C46.4257 36.2599 36.1231 46.5624 23.4141 46.5625C10.7049 46.5625 0.402465 36.2599 0.402344 23.5508C0.402344 10.8415 10.7048 0.539062 23.4141 0.539062ZM23.4141 1.68945C11.3606 1.68945 1.55273 11.4974 1.55273 23.5508C1.55286 35.6041 11.3607 45.4111 23.4141 45.4111C35.4673 45.411 45.2743 35.604 45.2744 23.5508C45.2744 11.4974 35.4674 1.68957 23.4141 1.68945Z\" fill=\"currentColor\"\/>\n<path d=\"M19.2841 33.6992C18.9579 33.6986 18.6374 33.6111 18.3543 33.4454C17.7167 33.0759 17.3203 32.3585 17.3203 31.5797V15.8189C17.3203 15.0379 17.7167 14.3227 18.3543 13.9531C18.6442 13.7827 18.9735 13.6951 19.3078 13.6994C19.6421 13.7037 19.9692 13.7998 20.2548 13.9776L33.4237 22.0406C33.6981 22.2166 33.9244 22.461 34.0812 22.751C34.238 23.0409 34.3203 23.3668 34.3203 23.6982C34.3203 24.0295 34.238 24.3555 34.0812 24.6454C33.9244 24.9353 33.6981 25.1798 33.4237 25.3558L20.2527 33.421C19.9604 33.6017 19.6256 33.6979 19.2841 33.6992Z\" fill=\"currentColor\"\/>\n<\/g>\n<\/svg>\n<\/span> <\/div>\n <\/figure>\n <div class=\"wp-component-card__content edwp-row-load\">\n <p class=\"wp-component-card__eyebrow\">\n Articles <\/p>\n <a href='https:\/\/www.elixirr.com\/en-us\/sustainability-from-within-is-it-worth-it\/' class='wp-component-card__title'>\n <h2>\n Sustainability from within: is it worth it?\n <\/h2>\n <\/a> <div class=\"wp-component-card__description\">\n Consumers are acutely aware of the threat of climate change, which in recent years has filtered through to their purchasing habits, namely buying with a conscience. Businesses have capitalized on… <\/div>\n <div class=\"wp-component-card__meta\">\n <p class=\"wp-component-card__date\">\n 07 May 2021 <\/p>\n <div class=\"wp-component-card__terms\">\n <div class=\"wp-component-tags edwp-component\">\n <div class=\"wp-component-tags__tag\">\n Manufacturing <\/div>\n <div class=\"wp-component-tags__tag\">\n Sustainability <\/div>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"wp-component-card__button-wrapper\">\n <button class=\"btn btn--link arrow wp-component-card__button\">\n Read more <span class='edwp-svg '><svg width=\"20\" height=\"20\" viewBox=\"0 0 20 20\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n<g id=\"Lg\">\n<path id=\"Vector\" d=\"M1.12509 9.50162H15.8648L9.43259 3.06941C9.374 3.0113 9.3275 2.94216 9.29576 2.86599C9.26403 2.78981 9.24769 2.70811 9.24769 2.62559C9.24769 2.54307 9.26403 2.46137 9.29576 2.38519C9.3275 2.30902 9.374 2.23988 9.43259 2.18177C9.54971 2.06535 9.70814 2 9.87328 2C10.0384 2 10.1969 2.06535 10.314 2.18177L17.8151 9.6829C17.8737 9.74101 17.9202 9.81014 17.9519 9.88632C17.9837 9.96249 18 10.0442 18 10.1267C18 10.2092 17.9837 10.2909 17.9519 10.3671C17.9202 10.4433 17.8737 10.5124 17.8151 10.5705L10.314 18.0717C10.1975 18.1871 10.0404 18.2522 9.87641 18.2529C9.79414 18.2534 9.71259 18.2376 9.63643 18.2065C9.56027 18.1754 9.491 18.1296 9.43259 18.0717C9.374 18.0135 9.3275 17.9444 9.29576 17.8682C9.26403 17.7921 9.24769 17.7104 9.24769 17.6278C9.24769 17.5453 9.26403 17.4636 9.29576 17.3874C9.3275 17.3113 9.374 17.2421 9.43259 17.184L15.8711 10.7518H1.12509C0.959309 10.7518 0.800312 10.686 0.683084 10.5687C0.565857 10.4515 0.5 10.2925 0.5 10.1267C0.5 9.96093 0.565857 9.80193 0.683084 9.68471C0.800312 9.56748 0.959309 9.50162 1.12509 9.50162Z\" fill=\"#1D0F25\"\/>\n<\/g>\n<\/svg>\n<\/span> <\/button>\n <\/div>\n <\/div>\n<\/article>\n","_links":{"self":[{"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/posts\/26283","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/comments?post=26283"}],"version-history":[{"count":2,"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/posts\/26283\/revisions"}],"predecessor-version":[{"id":58395,"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/posts\/26283\/revisions\/58395"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/media\/26319"}],"wp:attachment":[{"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/media?parent=26283"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/categories?post=26283"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/tags?post=26283"},{"taxonomy":"related_service","embeddable":true,"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/related_service?post=26283"},{"taxonomy":"related_industry","embeddable":true,"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/related_industry?post=26283"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}