As important as sustainability is, both to brands and their consumers, taking action inevitably takes time. Here’s what the research says about current climate change initiatives in the sector, and why things need to change:
- FMCG sustainability: the reality right now.
- How sustainability benefits FMCG brands.
- Strengthening your sustainability strategy.
FMCG sustainability: the reality right now
Financial think tank Planet Tracker recently revealed some shocking statistics. According to their findings, some of the world’s biggest FMCG organisations are predicted to fall far short of key carbon reduction targets.
The reason? Because the focus is too often solely on tackling Scope 1 emissions – or ‘emissions from sources that an organisation owns or controls directly’ – rather than Scope 3 emissions.
The National Grid describes Scope 3 emissions as those that a company is ‘indirectly responsible for up and down its value chain’. Or, in other words, its entire supply chain.
Clearly, there’s a problem here. Especially when you consider that supply chains are responsible for around 60% of all global carbon emissions, according to Accenture.
As a result, emissions for the investigated companies are expected to skyrocket to seven times higher than the science-backed recommendations by 2030. This, in turn, puts billions of dollars in operating profits at serious risk.
How sustainability benefits FMCG brands
Some major course correction is needed to avoid a worst-case outcome for the planet and its businesses.
Crucially, though, it’s not just about preventing the bad; it’s also about embracing the changing world and the opportunities it offers. And, when it comes to FMCG organisations, there are plenty of opportunities to be embraced. This is largely down to recent market shifts.
Since 2020, consumers across the world have become increasingly eco-conscious. In fact, as of last year, environmentally friendly shoppers accounted for almost two-third (65%) of all consumers.
As market analysts GfK report, there is untapped FMCG market potential to the tune of $806 billion within that consumer base.
If that wasn’t enough, growing numbers of shoppers are beginning to boycott brands that don’t commit to sustainability, or that greenwash their sustainability claims.
Strengthening your sustainability strategy
Is sustainability a concern or priority in your organisation?
Progress is only possible when you have the right people to drive it. That’s why, as consumer product recruitment experts, we’ve seen a rise in FMCG organisations seeking industry experts with specialist sustainability experience.
Strengthen your commitment to sustainability with The Advocate Group…
Our Talent Partners have direct and immediate access to deep talent pools of professionals with the specialist skills you need. Allow us to source talent that aligns with your organisation’s values, culture, and long-term goals.
Brief us on a role or get in touch today:
Call us: 0333 772 7200