Over the next five years, governance and cost will force manufacturers, brands, and retailers to transform and commit to real, sustainable business models to mitigate short- and long-term risk, a new report by NielsenIQ anticipates.
The report, The Changing Climate of Sustainability, focuses on the impact of climate change on the consumer-packaged goods industry.
“Sustainability has been on the corporate agenda for some time, as a slow burn priority where some businesses have made proactive decisions to get ahead of the pack and others have taken a wait and see approach,” said Regan Leggett, foresight leader at NielsenIQ.
“Exploding energy costs, crop failures, and supply chain disruption are all forcing companies to future-proof existing business models or bear uncertainty and increased cost implications.”
Amid supply chain challenges, inflationary pressures, and cautious consumer spending intentions, the report indicates that consumers are more informed about sustainability and demand corporate action and accountability.
“Consumers want help to live and consume sustainably; however, not all corporations have sustainable practices,” said Nicole Corbett, vice president of thought leadership at NielsenIQ.
“Over the past decade, consumers have been calling for a green revolution that has not materialised, and greenwashing and inaction from brands and retailers has left consumers with varying levels of trust in these parties to deliver.”
The changing climate of sustainability has reached a critical moment, and the next five years will bring dramatic change as companies transform to meet new demands, guidelines, and realities of doing business, the report said, adding that authentic action from proactive and genuine companies will have a strategic advantage as industries scramble to meet requirements and mandate sustainable efforts.