Sustainability continues to be extremely prevalent in the current climate and customers are becoming more conscious about where they shop and where their products are sourced from.
ESG’s impact
Environmental, social and governance (ESG) impacts business through companies having to take measures in things such as reducing waste, lowering pollution, lowering CO2 output, increasing diversity and many more. It allows for risks to be identified and managed, improves long-term sustainability and improves social responsibility.
With consumers having knowledge of a company’s ESG principles, it allows for them to be able to create trust with a business, which in turn, means a higher likelihood of the consumer becoming a loyal, returning customer.
Supermarkets on ESG
Some supermarket giants have published data on their ESG in a bid to become more transparent with the public. An example of this is Asda, which recently released its ‘Brighter Living Report’, its fourth report updating its progress in the last year, highlighting the charitable causes it supports as well as its sustainable packaging.
Different supermarkets have released reports such as Sainsbury’s with their ESG report, while others such as Tesco, Aldi, Lidl and other major supermarkets in the UK, have released sustainability reports, which give information on their sustainability efforts and the role they play in their local communities as they move towards becoming more sustainable.
The main topics covered in the Supermarkets’ ESG and sustainability reports are things such as; carbon emission output and the road to being carbon neutral, increasing the amount of recyclable packaging, showcasing their support towards charitable causes as well as food donations and the treatment of their employees and colleagues.
In Asda’s report, co-owner Mohin Issa stated: “Our new strategies not only match the ambitions of the business, but also tackle the areas that matter most to our customers and stakeholders.” This highlights that there is a large benefit for supermarkets to push for becoming more sustainable, to prepare for the future, while also keeping customers and stakeholders happy.
So, what does this mean?
By supermarkets reporting on ESG, customers can see what standards a supermarket or business has and can make an informed conscious decision on whether their own beliefs and values align with the business.
Although, some reports suggest that consumers are sceptical about whether corporations publish their ESG efforts in the interest of investors and stakeholders, a study suggests that 66% of consumers in the UK are willing to spend more money on sustainable products, showing that there is an increase in demand and supermarkets need to adapt to this.
The increased transparency between the consumer and the seller allows for the consumer to make a more informed and conscious decision about the products they are buying as well as where they are buying it from and what sort of business, they are supporting by doing so.
Are you a consumer or business that has an opinion on the sudden rise in ESG? Or perhaps you need help shaping your ESG messaging? If so, we would love to help, with our team having the experience and expertise needed to convey your message. Drop us a message via our social channels or contact page or give us a call today!