UK Retailers Embrace Sustainability as Key Business Strategy, Study Reveals
Sustainability has emerged as a significant business strategy among UK retailers, with a recent study showing that 85% view it as a crucial driver for their operations. The research, titled ‘The Imperative to Act: Advancing Sustainability Maturity within the UK Retail Industry,’ conducted by BearingPoint, highlights the sector’s commitment to going beyond mere compliance, with 72% of retailers developing roadmaps for enhanced sustainability practices.
Despite the strong inclination towards sustainability, challenges remain, particularly in data management and technology application. The study points out that a majority of retailers still rely on manual methods for collecting crucial sustainability data, such as Scope 3 emissions, which underscores a gap in technological adoption that could streamline and enhance sustainability reporting and decision-making processes.
BearingPoint identifies four pivotal areas where UK retailers can bolster their sustainability efforts. These include adopting a long-term perspective that incorporates potential future risks and Environmental, Social, and Governance (ESG) trends into their strategic planning, and enhancing collaboration with external stakeholders to improve accountability and transparency.
Furthermore, the report emphasizes the need for a more significant investment in data and technology to automate sustainability data collection, thereby freeing up resources for more innovative initiatives like the co-development of sustainable products. It also highlights the importance of engaging employees across the organization in sustainability initiatives, suggesting that a more substantial connection between sustainability achievements and employee remuneration could foster a more inclusive and committed approach to sustainable practices.
Tracey Banks, climate action roadmap manager at the British Retail Consortium, acknowledges the strides made by retailers in addressing sustainability but notes that there is still considerable work to be done. She calls for a deeper integration of sustainability criteria in sourcing, a clearer link between sustainability achievements and remuneration at all levels, and a more robust adoption of technology for measuring and monitoring emissions.
As the retail industry continues to navigate the complexities of sustainability, the study serves as a call to action for retailers to reassess and strengthen their strategies, ensuring that sustainability is not only a compliance measure but a core component of their business model that drives growth and resilience in the face of evolving environmental challenges.