Over the next five years, it is anticipated that governance and cost will force manufacturers, brands, and retailers to commit to “real, sustainable business models” to mitigate short- and long-term risk.
This is according to a new report by NielsenIQ – The Changing Climate of Sustainability – that examines the impact of climate change on the consumer-packaged goods (CPG) 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, 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 suggests that consumers are now more informed about sustainability and demand corporate action and accountability.
NielsenIQ states that 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. Action from proactive companies is expected to have a strategic advantage as industries scramble to meet requirements and mandate sustainable efforts.
“Consumers want help to live and consume sustainably; however, not all corporations have sustainable practices,” said Nicole Corbett, VP of Thought Leadership, NielsenIQ.
“Over the past decade, consumers have been calling for a green revolution that has not materialized, and greenwashing and inaction from brands and retailers has left consumers with varying levels of trust in these parties to deliver.”
