Sustainability and retail

According to a recent NielsenIQ study, 78% of consumers claim a sustainable lifestyle is important and 30% of consumers are more likely to purchase sustainability-focused products. Meanwhile, Sustainable Brands reports a whopping 95% of U.S. consumers “at least sometimes” behave in ways that protect the planet.

The fact is, however, there is still often a lack of real knowledge in the industry around the green, socially conscious terminology – an issue that brand leaders must address.

For a start, the term sustainability itself is often not truly grasped. Back in 1987, the UN Brundtland Commission set a definition that meant “meeting present needs without jeopardising the ability of future generations to meet their own”. Developing the concept further, the National Retail Federation defined sustainability as “generating economic value while creating net positive environmental, social and community benefits.” 

Another key term which came a decade or so later is Corporate Social Responsibility (CSR), which now plays (or at least should play) a crucial role in retail sustainability strategies, stemming from historical concerns about worker welfare. Modern CSR initiatives extend to charitable donations, community support, and addressing social issues like education, health, and food accessibility.

Then in the 2000s, businesses began integrating sustainability into their strategies, focusing on environmental and social concerns. To meet the demands of investors and nonprofit organisations, measuring the effectiveness of sustainability efforts became essential. That is when the term Environmental, Social, and Governance (ESG) reporting emerged, describing a tool for assessing progress, cost savings, and risk management.

More recently, ‘circularity’ – a term championed by the Ellen MacArthur Foundation – has gained traction in sustainability discussions. Often misunderstood, the circular retail models aim to mimic natural systems, reducing waste through resale and refillable packaging solutions. These models prioritise reuse, repair, and recycling, minimising environmental impact.

So, as the sustainability discourse evolves, clear communication among retailers, consumers, employees, suppliers, and investors can facilitate progress and mitigate confusion – and it all starts with everyone truly understanding the very terms they are using.

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