The new frontier of ethics and sustainability in retail

Possible goldmine of shopper interest

Shoppers are increasingly interested in the values and responsibilities of companies when choosing which to support. For instance, Google searches for “ethical brands” skyrocketed by 300% between 2019 and 2020, and searches for “corporate sustainability” increased by 61% over the past five years, signalling a significant shift in consumer interest.

 

A Forrester report found that one-third of US consumers say their concerns about climate change impact their purchase decisions, and two out of five prefer to buy environmentally sustainable products. However, in the most recent years, shoppers have not always shopped accordingly – prioritizing price and saving money. As the saying goes: bread first, then ethics.

 

The sustainability sheriff is coming to town

But in the long term, sustainability remains necessary. As inflation eases up, shoppers’ priorities are bound to shift back, and as demands grow companies are being prompted to take serious measures to reduce their environmental impact. Bain & Company has noted that "The sustainability revolution is arriving faster than many companies expected".

 

Also speeding up the green transition is legislation. Nothing like a little law enforcement to build motivation, right? As legislation is changing, it is bound to become unavoidable for companies to not only declare targets but also transparently report their progress. It is time to walk the walk, because you will have to back up what you claim.

Companies are staking their claims

Retailers are responding to these changes in various ways. For example, IDC predicts that by 2025, 75% of retailers will make changes in their supply chains to improve carbon emissions and environmental factors, which is expected to result in a 45% increase in customer loyalty due to sustainability efforts.

There is a growing number of companies joining The Science Based Targets initiative (SBTi) to work with setting climate goals that align with global efforts to limit warming to 1.5°C.

SBTi provides a framework for organizations to reduce greenhouse gas emissions, aiming for net-zero targets. By joining, companies are aligning with science-backed goals, helping to ensure they contribute to a more sustainable future through measurable action.

Choosing the right partner

As the importance of ethics and sustainability continues to grow, working with partners who share these values and have the necessary knowledge is crucial.

At HL, we are well aware of our opportunity to drive a change in the industry. Working with plastic as our main material (which of course inherently is not sustainable) we have a big responsibility – and while we are not yet fully plastic fantastic, we are making progress according to plan towards our goals every year.

 

We are dedicated to support our customers on their journey to more sustainable stores by reducing usage of virgin plastic, reducing packaging waste and reducing food waste while reducing the footprint of our own operations. And importantly, our sustainability commitment covers our entire value chain – not just our own production.

 

Not our first rodeo

Our seven decades of retail experience have rendered us a stable and trustworthy value compass, continuously moving forward to better ourselves and those who work with us. During 2020, we became signatories of the Science Based Targets initiative, and we follow our CO₂ reduction plan every year to make sure we’re in-line with our targets.

 

We have been a member of the United Nations Global Compact since 2010. The principles of the Global Compact on human rights, labour, environment and anti-corruption are an integral part of our strategy, culture and day-to-day operations. We set strict ethical and workplace safety standards for both us and our suppliers, working together to make sure everyone involved in our operations lives up to the same standard.

In terms of products, we continue to develop our HL Sustainable Choice & Circular Offer. Sustainable Choice, launched in 2018, is our growing range of sustainable solutions made of renewable or recycled materials to support you on your journey to a more sustainable store. With Circular Offer, we have successfully closed the loop on plastic by retrieving datastrips and dividers at the end of their lives from stores and recycling them into new products. Our ambition is to extend the value chain to include more retailers.

By partnering with HL, retailers can confidently navigate the complexities of sustainability and ethics. Giddy up!

Say howdy here and read more about our corporate responsibility here.