More than half of consumer businesses have overlooked the impact of emissions within the supply chain or customer landscape – highlighting a worrying level of visibility of the indirect impacts retailer operations are having on sustainability.
According to RSM UK’s latest ‘The Real Economy’ findings, 57 per cent of the consumer businesses said they have not considered how they will reduce emissions that are not directly related to the business such as emissions from suppliers and customers who are part of the value chain.
In addition, 30 per cent of the consumer businesses said they didn’t have a sustainability strategy in place. This includes just over a quarter (27 per cent) planning on creating one in the next 12 months and another 3 per cent stating they had no plans to create any formal strategy.
Rich Hall, partner and head of sustainability at RSM UK said: “To date, other industries, such as manufacturing and construction, have been the focus of specific regulation to tackle how to reduce emissions within the supply chain; but it won’t be long before consumer businesses need to comply with such rules.
“As the Corporate Sustainability Due Diligence Directive (CSDDD) is transposed into national law in EU Member States over the next two years, supply chains of companies operating in or selling into the EU will undergo increased scrutiny regarding their indirect effects on people and the environment.
“Collecting and reviewing data from a complex supply chain might be a daunting task, which could explain why many consumer businesses are yet to consider the indirect impact. Implementing key software to help support collecting and managing sustainability data may be required in the future but just reviewing your supply chain data, identifying major and critical suppliers, and asking them for information is the best way to start.”
Jacqui Baker, head of retail at RSM UK and chair of ICAEW’s Retail Group, added: “Consumer power could accelerate progress in this area but value for money still comes out as the number one driver for purchasing decisions, with sustainability only just making it into the top 10. As the cost of living improves and consumers start to feel better off, the importance on sustainable products might become more prominent, so consumer businesses may need to address this overlooked consideration sooner rather than later.”
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