Sustainability has become a mainstream business metric for CPG companies and needs to be driven holistically across the entire value chain from the perspective of increased profitability, growth and innovation.
The drivers for sustainability in the CPG segment include the need to:
- Meet end-user and consumer demands for cleaner and ‘greener’ products
- Achieve competitive advantage in the marketplace and manage risks to the brand and its reputation
- Ensure compliance to current and future regulations
- Minimize the impact on the organization’s bottom line
The study also attempted to analyze the ways that CPG companies are taking actions and identify key industry-wide and best-in-class trends in the industry.
Read our paper to understand the various strategic initiatives taken by the industry leaders towards sustainability performance management, energy management, reduction in carbon footprints and collaboration with supply chain partners for sustainable operations.
Methodology used for the study:
Leaders of the Consumer Packaged Goods (CPG) industry were chosen to be evaluated on the below dimensions:
- Management strategy
- Operational excellence
- Supply chain engagement
- Product sustainability and Consumer Influence
The companies chosen for the study were scored against each of the above mentioned dimensions. Key Performance Indices (KPIs) were created to analyze and compare their sustainability performance.
Sustainability is undoubtedly one of the key focus areas for the CPG Industry. Based on the study we anticipate some key upcoming trends the Industry would take as a step towards more sustainable businesses:
- Integrated reporting to the financial investment community who will seek and act upon sustainability disclosures.
- Environmental capital valuation and reporting
- Pervasive internal governance of sustainability practices
- Regulators will continue to push mandates on entire industries with stringent timelines