How to develop a winning sustainability strategy in the CPG industry
If you’re in the Consumer Packaged Goods (CPG) industry, there’s one thing you can’t ignore: sustainability.
With more consumers paying attention to how their favourite brands impact the environment, companies are now expected to step up. But let’s be honest – creating a sustainability strategy that’s both effective and practical can feel like a daunting task, right?
Why you need to think about sustainability
First things first: why does this matter? Simple – because your customers care. More people are choosing brands that align with their values, and sustainability is a big one. Whether it’s reducing plastic waste or lowering carbon emissions, shoppers are paying attention to who’s doing their part.
But it’s not just about keeping customers happy (although, that’s a big perk!). A good sustainability strategy can also make your business more efficient, cutting down costs and even opening the door to innovation. And with regulations tightening around things like waste management and emissions, getting ahead of the curve can save you a lot of headaches in the future.
Start with what you already do – and do it better
So, where do you begin? Before making big changes, take stock of what your business already does. You’re likely already on some kind of sustainability path, even if you don’t realise it. Maybe you’re using energy-efficient equipment or sourcing certain materials responsibly. The key here is to identify what you’re doing right and then build on it.
Next, look at where you can improve. Are you using non-recyclable packaging? Do you know where your suppliers source their materials? These questions will help you figure out the areas where you need to focus your efforts.
Set goals that make sense
This is where a lot of companies fall short – they set goals that are either too vague or too ambitious. Sure, we’d all love to say we’re aiming for zero waste or 100% carbon neutrality, but is that realistic for your business right now?
Instead, think about what’s actually achievable. For example:
- Reduce packaging waste by 25% – Whether that’s through using less plastic or switching to biodegradable materials, focus on making incremental changes.
- Cut energy use by 15% – Look at your production processes or even your office spaces. Are there areas where you can conserve energy?
- Sourcing 50% of materials sustainably – It’s hard to make everything 100% green overnight, so start by sourcing half of your materials from sustainable sources.
Setting realistic, measurable goals gives you something concrete to work towards. Plus, it makes tracking your progress a lot easier!
Partner up with your supply chain
Here’s the thing: your sustainability efforts don’t end at your front door. Your supply chain plays a massive role in your overall impact, so it’s crucial to get your suppliers on board. Do they share your commitment to sustainability? If not, it might be time to rethink who you work with.
Start by asking your suppliers the tough questions. Where are they sourcing their materials? Are they taking steps to reduce their own environmental impact? By aligning with suppliers who share your values, you can build a more sustainable business from the ground up.
Rethink your packaging – it matters more than you think
Packaging is often the first thing customers see, and let’s be real – they notice when it’s eco-friendly (or not). If you’re still relying on non-recyclable plastics or excess packaging, now’s the time to rethink your approach.
Look into alternatives like plant-based plastics, biodegradable materials, or even reusable packaging options. This isn’t just about looking good – it can drastically reduce your environmental footprint. Plus, more and more customers are seeking out brands that use sustainable packaging, so it’s a win-win.
Make circularity a priority
Ever heard of circularity? It’s all about keeping products and materials in use for as long as possible. Basically, instead of creating waste, you’re finding ways to repurpose and recycle. For CPG companies, this can be a game-changer.
You could start by introducing a product take-back scheme, where customers can return used packaging for recycling or reuse. Some companies are even launching refillable product lines, reducing the need for single-use packaging altogether. The goal here is to design products with their end-of-life in mind – and it’s something consumers will love you for.
Be transparent – people want to know what you’re doing
If you’re making efforts to be more sustainable, shout it from the rooftops. But, and this is important, be transparent about it. Don’t just say you’re going green without explaining how. Consumers appreciate honesty, and they’ll see right through any attempt at greenwashing.
Talk openly about your goals, your progress, and yes, even your challenges. Not every change will be smooth, and that’s okay. Sharing your journey with your customers will build trust and show that you’re genuinely committed to making a difference.
Keep the momentum going
Sustainability isn’t a one-and-done kind of thing. It’s an ongoing process that requires regular assessment and adjustment. Once you’ve started making changes, keep an eye on your progress. Are you meeting your targets? If not, what’s standing in the way? Regularly reviewing and refining your strategy is key to long-term success.
And remember, sustainability isn’t just about reducing your negative impact – it’s also an opportunity to innovate, build stronger customer relationships, and create a more resilient business.
