The future of the retail industry will be shaped by a variety of disruptive topics, with environment, society and governance (ESG) being one of the topics that will have a significant impact on retail companies.
Sustainability has become a catch-all term for ESG issues. The movement continues to gain momentum as consumers, governments, regulators and the media focus attention on corporations and demand action. Social inequality, corruption, tax evasion and inaction on climate change are problems that companies must now tackle head on, in full view of the public.
The emergence of e-commerce platforms has created new opportunities, and the Covid-19 pandemic has not only accelerated the shift online, but has also increased the importance of sustainability. Retailers are finding new approaches to future-proof their business while reducing their carbon footprint. Investing in sustainable practices not only helps retailers combat climate change, but also allows them to reduce costs in the long run. Many consumers are familiar with the concept of greenwashing, so it is of the utmost importance that retailers comply with their ESG goals and objectives. By demonstrating their authenticity in all aspects of ESG, retailers will attract ethical consumers and expand their customer base.
However, not all companies are created equal when it comes to their capabilities and investments in the key issues that matter most to their industry. Understanding how companies are positioned and ranked on the most important issues can be a key indicator of their future earnings potential and relative competitive position.
According to GlobalData’s thematic research report, ESG in retail and apparelMajor users include: smart label solutions (ITL ), Brands & spencer , Ikea REWE, Home Depot, edeka , Auchan Dm-Drogerie Markt, Food Lion, Home Depot, woolworths Gap, Carrefour , Diageo Y british american tobacco .
Information of the best ranked companies
Ikea launched a program in June 2021 to work towards its goal of using 100% renewable electricity throughout its value chain. It also converted its lighting range to energy efficient LEDs. One of Ikea The most sustainable elements of is the structure of its sofa that uses 13 assembly pieces, as opposed to the original 122 pieces. In turn, this reduces the amount of water, energy and packaging used.
REWE stores run on 100% green electricity. Their Green Building stores have large glass walls to increase natural light and allow you to grow your own herbs on the roof and raise freshwater fish. The aquaponics circuit built into the roof makes fish and plants share the same water to reduce water waste.
Carrefour Group has been among the top five global retailers in the Dow Jones Sustainability Index (DJSI) for four consecutive years. The DJSI indices evaluate the results of Corporate Social Responsibility (CSR ) implemented policies. Carrefour it has also received an A- in the Carbon Disclosure Project (CDP) climate program, a B in its Forests program, and an A- in its Water program. Carrefour has received an MSCI ESG rating of AA which makes it a leader in sustainability.
To better understand the key issues and technologies disrupting the retail industry, access GlobalData’s latest thematic research report on ESG in retail and apparel.
- fair way
- shoe drawer
- Walgreens Boot Alliance
- bed bath and beyond
- Darty FNAC
- help ritual
- hardware ace
- Seven & I Holdings
- Hennes and Mauritz
- dm-drogerie Markt
- best seller
- The English Court
- C. C. Hutchison
- Carphone of Dixon