The retail and consumer packaged goods (RCPG) industries are some of the most important in addressing the global sustainability context (see our outline). RCPG organizations have vast manufacturing, supply chain, raw material, and waste impacts—making it all the more important that the sector leads in implementing strategies that will impact not only their internal sustainability but can also change whole systems through their impact on suppliers, regulators, and consumer behavior.
- In a survey of 302 RCPG executives from Global 2000 businesses, three-fifths was a common thread: approximately 60% of our respondents have appointed sustainability leaders, developed frameworks for their frontline employees’ awareness of sustainability, and engaged third-party services firms for sustainability help. Some might say this is progress—and given the extremely low bar globally and across industries for sustainability (we typically get in the region of 40% for appointed sustainability leaders), RCPG is clearly headed vaguely in the right direction. But, to flip the data and focus on the 40% not doing these three critical, but basic things, paints a bleaker picture… regardless of how poor the case may be elsewhere.
- That only 60% have appointed a leader for sustainability in one of the key 4 sectors (the other three being energy and utilities, financial services, and manufacturing) is not encouraging. See our market analysis of sustainability services for more outlining these key sectors.
- It makes sense that the same figure of 60% are deploying frameworks “to improve their employees understanding of their sustainability impact”. But that is a world away from tightly linking sustainability from an organizational-level roadmap into the targets, metrics, accountability, and incentives for employees needed to embed sustainability throughout the business. See our presentation to COP26, the UN climate summit, for more on this disconnect.
- This data suggests a need for RCPG firms to find third-party help across strategy, engineering, technology, implementation, and ongoing managed services. Or perhaps these firms need to go broader and deeper with the services partners they currently have for sustainability and non-sustainability engagements. Either way, it’s unlikely that over 40% will be able to address the global sustainability context without assistance.
- Beyond the ‘missing 40%’, over 80% are failing to get the most from their workforces by ensuring the employee experience is a meaningful one with a defined mission statement, objective, and purpose. Employees with purpose and who feel their organisations’ values align with their own are more productive, and more likely to stay. Expect more on this last point soon.
The Bottom Line: While they might be ahead of some sectors, RCPG companies still need a whole lot more sustainability leadership so that organizational strategies can cascade throughout their organizations and value chains. They’ll likely need help from services firms.
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