1、The last call for sustainabilityAn urgent growth agenda for consumer products and retailResearch InsightsHow IBM can helpFor more than a century,IBM has been providing businesses with the expertise needed to help consumer products companies win in the marketplace.Our researchers and consultants crea

2、te innovative solutions that help clients become more consumer centric to deliver compelling brand experiences,collaborate more effectively with channel partners,and align demand and supply.For more information on our consumer product solutions,see a comprehensive portfolio of retail solutions for m

3、erchandising,supply chain management,omnichannel retailing,and advanced analytics,IBM helps deliver rapid time to value.With global capabilities that span 170 countries,we help retailers anticipate change and profit from new opportunities.For more information on our retail solutions,please visit: Sa

4、chin Gupta,Sashank Yaragudipati,Jane Cheung,and Chris WongKey takeawaysIntroductionDespite debunked reports of swans and dolphins returning to the crystal-clear canals of Venice and other similar fictions,one thing is undeniably true:the pandemic lockdown initially had a very positive effect on the

5、environment.Human-driven pollution fell precipitously,allowing air and water quality to rebound.Nitrous oxides fell by by 2030%in China,Italy,France,and Spain,and by 77.3%in So Paulo,Brazil.1 The dissolved oxygen content in the Ganga River,India,increased by about 80%.Chinas coronavirus lockdown is

6、estimated to have saved over 70,000 lives due to the reduction in air pollution from factories and vehicles.2But as remarkable as these and other comparable results may seem,a far more important and long-lasting effect has emerged:the pandemic has intensified consumer demands for environmental susta

7、inability and consumer resolve to back up those demands with their wallets.Consumers,businesses,and governments have had to evaluate the paradoxical question of whats worth more in the era of climate change:the present or the future?As extreme environmental events become common,people and enterprise

8、s are carefully weighing short-term expectations,such as convenience and cost-efficiency,against the existential need to preserve the planet.To better understand consumer opinions and perspectives on sustainability and how well-aligned consumer companies are with them,the IBM Institute for Business

9、Value(IBV)surveyed more than 14,000 adults around the world.To examine developments in the sustainability agenda of the enterprise,we surveyed 1,900 executives globally about what they had planned for the next 12 months.Importantly,we wanted to understand if the enterprise view of sustainability is

10、still focused on compliance and reputation,or are companies seeing sustainability as a viable path to operational improvement and business growth.Consumers care Consumers see environmental sustainability and social responsibility as two sides of the same coin and seek brands aligned with their value

11、s.Companies can seize this opportunity by guiding their own sustainability narrative with clear,transparent information about their plans and actions.Build trust with metrics Before choosing a brand when shopping,consumers do research,so brands need to communicate and report their progress to consum

12、ersyet less than one third of have defined ways to measure progress.Sustainability for growthPurpose-driven brands can grow by building lasting brand relationships with their customers.Consumer willingness to support purposeful brands by paying a premium has,in fact,deepened.1Consumer sentiment on s

13、ustainabilityConsumers link demands for environmental sustainability to social responsibility93%of consumers globally say COVID-19 affected their views,not only of environmental sustainability,but also social responsibility.More than 2 in 3 say environmental issues are significantly important to the

14、m personally.A similar percentage of people are focused on social responsibility issues,with roughly 3 in 4 consumers saying access to education and ensuring good health and well-being are significantly important to them.72%say the same of ending poverty and hunger.In general,consumers seem to be vi

15、ewing environmental sustainability and social responsibility as two sides of the same coina truly sustainable company cannot do one without also making progress in the other.This alignment speaks to the reality of achieving social and environmental goals.Good health isnt possible without clean water

16、.Efforts to protect nature are often ineffective if they dont also address poverty or the needs of people living in or near the natural environments.Our research infers that many consumers have also connected those dots.Companies are catching on,too.IKEAs definition of and commitment to sustainabili

17、ty cites poverty and inequality as challenges to be confronted on an equal par with climate change,unsustainable consumption,and other environmental issues.3 And farmer connect,a software company using blockchain technology to help connect individual farmers to the supply chain,has released a mobile

18、 app that shows coffee consumers where their coffee comes from and reassures them that farmers growing the beans can earn a sufficient living.49 of 10 companies surveyed say they will be working on various sustainability initiatives across the enterprise by the end of 2021.7 in 10 executives say the

19、ir sustainability development goals can improve operational effectiveness,agility and drive business results.Less than of companies have defined metrics to measure sustainability progress.2In fact,people who prioritize both social responsibility and sustainability issues made up the largest segment

20、of our survey populationwe call them“People+Planet Guardians.”And our research reveals that these are,in fact,“average”people,part of every community.None of the factors in age,income,and employment status distinguish People+Planet Guardians from others (see Figure 1).Figure 1Guardians of the Planet

21、People+Planet Guardians are more concerned about environmental and social issues than their counterparts.Q:How important is this issue to you personally today?Reducing pollution (water,air,and ground)Securing fresh water supplies Protecting rainforests and other ecosystemsEnding poverty and hunger E

22、nsuring good health and well-beingProviding access to quality education43%People+Planet Guardians21%Single-issue focused36%Concerned centrists*4.814.77 4.764.72 4.714.71Low High 2.73 2.82 2.69 2.77 2.90 2.77Low High 3.98 3.97 3.86 3.88 3.94 3.89Low High To consumers,environmental sustainability and

23、social responsibility are two sides of the same coin.*respondents concerned with multiple issues across different areas3 Consumers are factoring in sustainability to their financial decisions.Consumers are embracing sustainability across their livesThe pandemic hit many consumers hard,which makes th

24、is increased commitment to sustainability even more noteworthy.And the commitment is becoming integral to virtually all aspects of their lives.Consumers are not only considering sustainability when selecting a brand,but also when investing,choosing employment,or selecting a mode of transportation.Wh

25、en compared to two years ago,22%more consumers say environmental responsibility is very or extremely important when deciding on a brand.And there are signs that we can expect this commitment to grow84%of consumers now indicate environmental sustainability is at least moderately important.Consumers a

26、re factoring in sustainability to their financial decisions.Half believe a companys climate change exposure affects its financial risk92%of this group expect to invest,divest,or lobby fund managers to change investment mixes based on environmental factors and/or social responsibility in the next 12

27、months.This group is nearly 1.5 times larger than than that of personal investors who do not see climate change risk as a financial risk.In addition,sustainability is a major concern when it comes to personal mobility.Today,roughly 40%of consumers say environmental impact factors are more important

28、than cost,comfort,and conveniencethree criteria that used to define travel preferences(see Figure 2).Equally important40%30%30%39%30%31%41%29%29%CostComfortConvenienceEnvironmental impact factors50%Less importantMore importantSource:Q:Most important factor to you when selecting how you will travel.n

29、=14,705Figure 2Prioritizing the planetRoughly 40%of consumers said environmental impact factorswere more important than cost,comfort,and convenience.4Consumers trust brandsbut still want to check for themselves before buyingConsumers actively seek brands aligned with their values.48%say they trust s

30、tatements companies make about environmental sustainability,but more than three-quarters of this group say they also do their own research before deciding.So,where do they look,and what information are they looking for?The most common approach:use an online search engine and social media platforms.N

31、ext is check directly on the product and brand website(see Figure 3).And while most consumers look for product information,personal health,and wellness benefits,many also investigate a companys environmental sustainability record:What do the metrics say?Is it making progress?What key initiatives has

32、 it launched?This underscores a real opportunity for consumer companies.If the top places people look for information on a brands sustainability are social media platforms that the brand may sponsor and the brands own website,the brand can shape its own sustainability storyif it is transparent and h

33、as facts,metrics,and stories to back up its claim.Transparency builds trust.While consumers are skeptical and keep a keen eye out for bogus claims and“greenwashing”campaigns,honesty builds trust-based relationships with principled customers for years to come.Brands should seize this opportunity to g

34、uide their own sustainability narrative.By offering clear,transparent information about their sustainability and social responsibility initiatives,companies can help consumers make informed choices.50%40%30%20%10%0%Figure 3In research we trustWhere consumers check before they buyLabel of productQR c

35、odeBrands websiteOnline search engineSocial mediaPhysical or digital eventsTraditional mediaWord of mouth303538465343045474643494940252423179Physical assets343739432326218-24 years old|25-39 years old|40-54 years old|55-70+years oldSource:Q:Where do you typically get informatio

36、n around environmental sustainability or social responsibility initiatives for a brand and/or products they make(select all that apply).5Enterprises sustainability agendaA work in progressFor consumer industry brands,a sustainability plan is only a good startthey also have to show resultsNearly half

37、 of the companies in our executive research began sustainability initiatives prior to the pandemicand they are staying the course.22%launched sustainability initiatives during the pandemic;an equal number are planning to start this year.By the end of 2021,9 out of 10 companies surveyed say they will

38、 be working on various sustainability initiatives across the enterprise.Sustainability development goals developed by the United Nations can serve as a blueprint for companies to help achieve a more viable future.5 We asked respondents to rate the objectives that have the highest priority for their

39、organization.“Zero Hunger,”“Good Health and Well-being,”“Life on Land,”and“Climate Action”have ranked highest for companies in the consumer industry.“Zero Hunger”and“Good Health and Well-being”Across the world,approximately 805 million people are undernourished,consuming well under the recommended n

40、umber of calories per day.6 Many companies within the consumer industry have partnered with other leading organizations to take on challenges related to hunger,nutrition,and food waste.For example:General Mills is one of the founding members of the Global Food Banking Network that captures surplus f

41、ood and delivers it to people in need.7 TheKraft Heinz Company Micronutrient Campaign developed a nutritional supplement sachet that can be mixed easily with readily available food to boost its nutritional impact.8 The Inter-American Development Bank(IDB),Grupo Bimbo,and other major brands have join

42、ed to fight food waste across Latin America and the Caribbean.9 In addition to launching specific projects,the collaboration plans to influence policy,increase public awareness,and shape consumption habits to help reduce supply chain food waste.The pandemic has intensified a fundamental belief of co

43、nsumers and brands around the world:sustainable development objectives must include supporting healthy lives and promoting well-being.Good health and well-being are among the highest priorities for global consumers.Companies,therefore,are working toward this goal by developing healthier products and

44、 promoting healthier habits at every stage of life.Danone targets healthier nutrition from better products and better choices.P&G Pampers Mobile Clinic Program and Pampers UNICEF vaccine program work to promote child and maternal health and improve access to medicine and quality healthcare.10 A fund

45、amental belief of consumers:sustainable development objectives must include supporting healthy lives and promoting well-being.6“Life on Land”and“Climate Action”Forests cover nearly 31%of our planets land area and are critical to sustaining the air we breathe,the water we drink,and the food we eat.11

46、 But almost 75%of the worlds poor are affected directly by land degradation.Biodiversity and the ecosystem services it underpins can support climate change adaptation and disaster risk reduction strategies.In turn,these can increase peoples resilience to climate change.Within the consumer industry,U

47、nilevers“regenerating nature”project is pioneering an approach to stop the decline of biodiversity,soil health,and water quality.12 It aims to move beyond compliance with principles of sustainable agriculture to encourage regenerative practices.Ambitiously,it looks beyond Unilevers supply chain to p

48、rotect and regenerate natural spaces.LOral aims to achieve carbon neutrality by improving its energy efficiency,replacing plastics used in packaging with recyclable or bio-based sources,and reducing greenhouse gas emissions.13Sustainability transformation is taking shape across the value chain For m

49、any companies,the bulk of their climate impact is now outside of their direct control.This is especially true for those that have already taken action to decarbonize their facilities,operations,and purchased energycommonly described as“Scope 1 and 2.”Scope 3 emissions are far more complex,sitting ou

50、tside a companys direct control.Many organizations report that 80%of their emissions are Scope 3.For some,Scope 3 accounts for as much as 97%of their overall emissions(see“Definitions:Scoping the emissions challenge”).14Definitions:Scoping the emissions challengeThe often misattributed and misapplie

51、d maxim“you cant manage what you cant measure”aside,its next to impossible to reduce greenhouse gas(GHG)emissions if you dont how much of them there are and where theyre coming from.The Greenhouse Gas Protocol,an international accounting tool,helps companies consider the potential ramifications not

52、just of their immediate business actions,but of the many indirect activities that are part of the products and services they purchase and supply while conducting business.Scope 1 emissions are those a company is directly responsible fordirect emissions from its owned or controlled resources.Scope 2

53、emissions arise from the generation of purchased electricity,heating,and cooling that the company consumes.Scope 3 emissions cast the widest netall other indirect emissions occurring in a companys value chain.While Scope 3 might seem impossibly comprehensive and complex,in fact,for many companies it

54、 provides the greatest opportunity for GHG emission reduction.15 Zalando:Making sustainability a value chain endeavor16 Online fashion retail platform Zalando says its commitment to carbon neutrality across its own operations is insufficient.It has committed to having 90%of its key suppliers also se

55、t their own science-based targets.It expects to be the first retailer signed up to the Sustainable Apparel Coalition(SAC)to use a new module that makes sustainability assessments mandatory for its own private labels and the partner brands sold on its platform.As a result,the companys relationship wi

56、th the brands it sells,including fashion heavyweights such as Nike,Burlington,and boohoo,could change.7xperienceSales and marketingFigure 4A broad agendaConsumer companies factor top SDG goals to at least some extent across the value chainCustomer experienceSales and marketingCommerceSupply chain op

57、erationsManufacturing and productionProcurement and sourcingProduct innovation and designDemand and supply planning86%82%81%83%73%73%86%86%83%86%84%82%81%77%72%87%84%74%88%85%79%91%88%88%Good health and well-beingClimate actionZero hungerLife on landSource:Q:To what extent are you applying your top

58、three SDGs as part of any initiatives in the following areas?Companies are therefore factoring in their top sustainability goals across different functions in the value chain.From design to sourcing to manufacturing and across the rest of the supply chain,businesses are now engaging with suppliers t

59、o create low-carbon,easily recyclable products and services to reduce value chain emissions(see Figure 4).For many companies,the bulk of their climate impact is now outside of their direct control.8Perspective:Labeling eco impact17Which is better for the environmentbuying liquid packaged in glass th

60、at can be cleanly recycled,but whose shipping weight is a concern?Or packaged in plasticlighter,but not as recyclable?It turns out consumersand companies supplying themface hundreds of similar conundrums.Finding a simple way to make a sound decision can be maddening,especially when it requires resea

61、rch from multiple sources of often conflicting information.The food industry is trying to help by bringing simplicity and transparency to bear on the issue.In Europe,Nestle,Tyson Foods,the UKs M&S and Sainsburys,as well as Spanish supermarket Eroski are joining forces to develop environmental labeli

62、ng for food products.A pilot slated for late 2021 will explore using a color-coded system combining four key indicatorscarbon footprint,water use,water pollution,and biodiversityinto a simple letter grade.Such a system,if successful,would make it easier for consumers to make better decisionsand have

63、 the confidence they are better decisionsfor the environment.The metrics challengeWithout crisply defined metrics,its almost impossible for a company to tell if it is making tangible sustainability progress,or to tie progress to improved business results.Its also more difficult for a company to tell

64、 a compelling story to its customers about its sustainability efforts,something ever more essential to enhancing brand reputation and even viability.So its a cause for concern that on average,only 10%of companies in the consumer industry have defined unique metrics to measure sustainability progress

65、.Just under 20%have aligned organizational performance metrics to measure progress.Most organizations are in the process of defining metrics or intend to do so soon.This reflects the very real challenge faced by companies when defining metrics to measure sustainability results and progress.But the c

66、hallenge goes beyond just defining them.Gathering contextual and standardized data from variable sources is complex,as is the analysis needed to monitor progress.So is incorporating environmental insights from that analysis into economic decision making and day-to-day operations,not to mention commu

67、nicating them in simple terms that a consumer could understand and act on(see“Perspective:Labeling eco impact”).9Given the wide variety of sources of environmental datafrom sensors and satellite imaging to photos and reports from citizens and local communitiesprocesses and standards have to be in pl

68、ace to integrate and verify the datas authenticity.Its provenance must also be considered before it is used in subsequent data analysis.AI and analytics can help with data accuracy and veracity issues.If,for example,data is sufficiently massive,and if a dominant narrative emerges from such voluminou

69、s data,quality control for individual data points may become less important,as may the need for precise translation across data strands.AI can play an important role in teasing out these dominant data narratives that have force because of significant data agreement and alignment.Turning data from di

70、sparate sources into analytical outcomes also requires interoperability and ease of moving data between organizations and systems,which in turn calls for open standards.In that context,cloud computing can help.It can provide the technology infrastructure to mitigate problems associated with having e

71、nvironmental data stored and modeled in many different ways.More specifically,a hybrid-cloud architecture based upon open-source software can ease the transfer of data and workloads across actors and organizations while making data accessible to many.Perspective:AI in the cloud to preserve life in t

72、he waterGoal 14 of the UNs 17 Sustainable Development Goals is“Life Below Water:Conserve and sustainably use the oceans,seas,and marine resources for sustainable development.”18 Easier said than done.While the worlds appetite for seafood continues to increase,the oceans continue to acidify,fish stoc

73、ks are depleted,and the apparent solutionaquaculturehas come under fire for contributing to environmental degradation.But there are signs of promise,thanks to IoT,AI,and the cloud.Aquaculture depends on a complex environment filled with challengesbuild-up of fish waste that depletes the water of oxy

74、gen and contributes to harmful algal blooms;escaped fish disrupting delicate natural ecosystems;and fish disease and sea lice outbreaks.But the combination of IoT sensors collecting critical data and AI making sense of it can yield important insights on fish health and proper feeding levels.Data abo

75、ut fish movement,oxygen levels,water content,and many other factors from environmental sensors,underwater video monitoring,hydroacoustic technology,and drone imagery can be combined with satellite data and other geospatial data sets.In turn,this can be sent to a cloud platform where AI can produce u

76、seful recommendations,correlations,and early warnings of potential risks.AquaCloud is such a predictive analytics platform.It was built by The Seafood Innovation Cluster and IBM to collect,anonymize,and aggregate data from salmon farms across Norway.The platformanalyzessea lice counts and gives acti

77、onable data back to farmers daily,in essence predicting sea lice outbreaks to help the farmers prevent them.Applying this approach on a larger scale is an EU-funded project,Green Aquaculture Intensification in Europe(GAIN),which is embedding sensors and machine learning technologies into fish farms

78、across nine countries.1910Sustainability transformation as a growth agendaCurrent state:Compliance and good will from investorsMore than 80%of enterprises today say their sustainability development goals help them meet the requirements of government regulations and gain good will from investors.Gove

79、rnments globally are ramping up mandatory requirements related to environmental reporting and management.Many countries around the world have or are developing corporate disclosure requirements around environmental impact.For example,in 2021 the EU banned single use plastic.The UK plans to invest$2.

80、4 billion to promote cycling and walking.South Korea plans to double solar incentives to promote rooftop systems in homes and commercial buildings.China plans to build more than 78,000 electric vehicle charging stations.20Governments are not the only ones requiring sustainability progress.Investors

81、increasingly demand reporting and action on sustainability,punishing laggards with shareholder action and the threat of divestment.ExxonMobil serves as a recent example.Investors ousted three board members to proactively focus on climate change.21 BlackRock,the worlds largest asset manager,disclosed

82、 that in the past year it voted 55 times against directors at 49 companies for failing to make progress tackling climate change.22 The financial sector also understands that investments in sustainable business models pay off in the long term.A new trend has arisen:sustainable finance,where investors

83、 commit to only invest in green assets.23In this stage of the sustainability transformation,many companies are focused on reducing operational and compliance risks to maintain their license to operate.They view dealing with the impacts of climate change as essential to lessen the risk to their brand

84、s from potential violations of environmental law and regulations.Beyond limiting harm and managing risk:Sustainability as a force to optimize business operations 7 in 10 executives say their sustainability development goals can improve operational effectiveness and agility.Beyond compliance,companie

85、s at this stage begin experimenting with sustainable methods to demonstrate value and feasibility.Manufacturing plants of consumer product companies are running initiatives to reduce electricity usage and expand renewable energy sources.They are also trying to meet the forecasted demand to reduce wa

86、ste.Retail e-commerce has become one of the biggest consumers of packaging materialplastic,paper,and the likegenerating increased attention to reducing new packaging waste.Companies are adopting reusable delivery packs and techniques to use recycled packaging material.At the same time,consumers are

87、demanding seamless omnichannel and sustainable fulfillment options.Retailers are responding by expanding curbside pickups and locker deliveries,and advancing reverse logistics to reduce their carbon footprint.Optimizing environmental impacts within operations is important,but its positive impact cou

88、ld be hindered if similar measures arent taken throughout the entire supply chain.Reaching supply chain sustainability goals,therefore,requires a global,accurate,real-time view of inventory and the ability to share data across a supply chain ecosystem in a trusted way.Optimizing environmental impact

89、s within operations is important,but its positive impact could be hindered if such measures dont pervade the entire supply chain.11If organizations dont have accurate demand and supply plans,it creates a ripple effect,generating waste in other areas throughout the chain.And if companies lack transpa

90、rency and data sharing with their suppliers,it becomes incredibly difficult to track product provenancefrom point of origination to deliveryin a trusted and controlled way.Without this ability,its extremely difficult for a company to identify supplier risk and protect its brand.But there are technol

91、ogy approaches that can help companies optimize sustainability across their supply chains.Companies can reduce waste and lower their cost-to-serve by applying AI,for example.AI can detect signals that anticipate future trends,then provide precise insights to improve supply and demand planning.Compan

92、ies can also use advanced AI to lower logistics-related emissions by optimizing fulfillment and delivery.Using a cloud platform can provide greater supply chain visibility with up-to-the minute inventory views and enhanced performance insights from advanced analytics.And if a company builds its mult

93、i-enterprise networks on blockchain,it can tackle complex Scope 3 emissions challenges by establishing product provenance,which in turn can engender trust and transparency across its supply chain and empower consumers.24Future state:Purpose-driven brands grow their businesssustainably Beyond complia

94、nce,limiting risk,and optimizing operations,arguably the greatest opportunity for companies with an aggressive sustainability agenda is growth.Purpose-driven brandsthose that align their core business strategy with consumers who value the societal and environmental impact of consumption highly enoug

95、h to change buying behaviorcan build lasting brand relationships and enjoy lower attrition rates for their customers and employees.76%of executives indicated that sustainable development goals help them to align with their brand purpose,and 73%of them expect their sustainability goals to help them d

96、rive business results that last.In the past 12 years,brands with perceived positive sustainability impact have grown in brand value at a faster rate compared to those with a low perceived impact.25 Businesses that are doing good increase their connection with customers.They also differentiate their

97、brand and increase the engagement of their team.Unilevers growing stable of over 28 Sustainable Living Brands has consistently outperformed the average growth rate of the rest of the portfolio since the metric was introduced in 2014.26 Those brands are growing 69%faster than the rest of its business

98、 and delivering 75%of the companys growth.Other companies,such as Seventh Generation,have built their entire brand and company mission“to create a more healthy,sustainable,and equitable world for the generations to come.”27Our previous study indicated consumers are willing to pay a premium to suppor

99、t brands that align with their values.In this current study,we learned that consumer willingness to support purposeful brands has,in fact,deepened.74%of executives expect sustainability goals to help them drive business results that last.12Two years ago,most consumers(63%)were willing to pay up to a

100、 30%premium to support brands with a purpose,and only 8%were willing to pay over a 100%premium.Today,43%of consumers are willing to pay over a 100%premium to support brands that are sustainable and environmentally responsible(see Figure 5).As a company begins contributing to a positive environmental

101、 and societal impact,consumers can feel more deeply connected to the brand.They know their purchases and engagements with the brand contribute to a force for good to make a difference in the broader world.When consumers connect with the brand and the good work it does,they tend to stick with it for

102、a long time.According to one study,consumers are 4 to 6 times more likely to purchase from,advocate for,and champion purpose-driven companies.28 By involving consumers in doing good,a business is no longer just a product peddler or service provider to them.Its role has evolved to an 25%20%15%10%5%0%

103、Figure 5The sustainability premiumConsumers are willing to spend more 0%-10%141%-150%11%-20%21%-30%31%-40%41%-50%51%-60%61%-70%71%-80%81%-90%91%-100%101%-120%121%-130%131%-140%Percent of premium costPercent of respondents23466454533232776881Source:Q:Willingness to pay more for

104、brands that are sustainable or environmentally responsible.enabler,helping consumers make a difference through a simple transaction or engagement.79%of consumers said theyre more loyal to purposeful brands.29 But consumers arent the only ones positively affected.When a business has a compelling purp

105、ose,its employees experience pridethey are having a meaningful impact,doing something good in the world.This creates connection.Its also a huge motivator.Making the world a better place imbues a greater purposefulness to their everyday work.A companys commitment to environmental sustainability can a

106、lso have a significant impact on employee retention.Nearly 70%say they are more likely to accept a job offer from an organization they consider to be environmentally and socially responsible.A near equal percentage say theyre more likely to stay with an employer that has a good reputation for enviro

107、nmental sustainability.Meanwhile,nearly 3 in 4 say they expect their employers to act on social responsibility issues.13Action guide The last call for sustainability:An urgent growth agenda for consumer products and retailSuccessful businesses will fundamentally infuse sustainability into the core o

108、f their strategy,instead of seeing it as an ancillary function.Its not a tool to appease certain segments of people.Rather,sustainability can differentiate the brand and how its products can help create a better world and protect the planet.Leadership at the highest levels needs to establish this vi

109、sion and the goals that will help make it realitythen drive those objectives throughout the enterprise.Of course,different companies are at different points in their sustainability development.Here are concrete actions they can take depending on where they are.But each action needs to be clear,measu

110、rable,and bold if it is to be effective.1.Getting startedcreate the vision and a plan Infuse sustainability into the core of the business by creating and committing to long-term sustainability goals while also identifying the use cases most likely to achieve those goals.Move beyond sustainability as

111、 a tool to appease certain demographics by exploring opportunities for improvement to business processes,supply chain operations,and new growth opportunities.Engage leadership at the highest level to create and own the vision.Formulate a core sustainability team across different organizational units

112、 with a common set of KPIs to measure and achieve success.2.Following throughlower risk and optimize business operations through sustainability initiatives Consider platform-based solution models to limit disruption to the current tech estate and business functions,and to help identify and mitigate

113、regulatory discrepancies with lower investment,faster access,and increased accuracy.Use technologies such as cloud,robotics,and AI for audit and compliance.AI in particular,if applied to large samples of structured and unstructured data,can surface better insights and provide recommendations for imp

114、roved compliance.But also apply these insights to improve efficiency as you reduce your carbon footprint and reduce waste.Explore sustainable methods to optimize and enhance business operations,especially by using intelligent workflows to integrate decision making into your current workflows.This ca

115、n help improve decisions in areas such as sourcing,purchasing,logistics,and the like.Intelligent workflows could make use of a variety of real-time data,correlate choices,and make consumable recommendations to business users.3.Engage your ecosystem to accelerate your sustainability growth agenda Dev

116、elop new partnerships and ecosystems to grow.Expand current businesses and IT systems into an ecosystem model using blockchain,IoT,and AI technology.This can help support expanded business partnerships among enterprises,governments,associations,and markets while providing a greater degree of trust a

117、nd transparency to end consumers.Improve transparency to gain consumer trust by using product-level sustainability attributesfor example,a 5-star green label on a product.Accelerate innovations with new product design and development using renewable energy,recycled materials,and other sustainable op

118、tions.Build sustainability with the entire product lifecycle usage and customer behavior in mind.14Sachin GuptaGlobal Agribusiness Offering Leader the authorsSashank YaragudipatiPartner,Client Innovation Center Industry Leader,Consumer Industry leads and integrates IBM products and services to help

119、transform the Agri&Food industry worldwide.He expertise extends to systems,software,weather,blockchain,research,IoT,and AI applied to client transformation.He is based in Singapore.Sashank is responsible for providing solutions and services to Consumer clients covering Retail,Consumer Packaged Goods

120、,Wholesale and Agriculture.He is passionate about disruption in the industry and helps clients identifying strategic and tactical models and use technology to accelerate their business goals.Jane Cheung Global Research Leader for the Consumer Industry,IBM Institute for Business Value JaneSCheungJane

121、 has over 20 years of working experience across retail and consumer product industries.Jane has worked at Macys,Disney,Nike,and as a trusted advisor for clients in a consulting capacity at IBM,SAP and Accenture.Chris Wong Vice President of Strategy and Alliance for the IBM Global Consumer Industry i

122、s responsible for setting the direction for IBM clients in the retail and consumer packaged goods industries.15IBM Institute for Business ValueThe IBM Institute for Business Value,part of IBM Services,develops fact-based,strategic insights for senior business executives on critical public and privat

123、e sector issues.For more information To learn more about this study or the IBM Institute for Business Value,please contact us at .Follow IBMIBV on Twitter,and,for a full catalog of our research or to subscribe to our monthly newsletter,visit: We conducted an executive survey over 1,900 business lead

124、ers in the Consumer Products and Retail industries from 24 countries to understand their sustainability agenda.Related reportsHaller,Karl,Jim Lee,and Jane Cheung.“Resetting the rules for consumer companies.”IBM Institute for Business Value.May 2021.https:/ S.,Jacob Dencik,Daniel C.Esty,and Scott Ful

125、ton.“The Rise of the Sustainable Enterprise.”IBM Institute for Business Value.August 2020.https:/ at a turning point.”IBM Institute for Business Value.May 2021.https:/ Mousazadeh,M.,Paital,B.,Naghdali,Z.et al.“Positive environmental effects of the coronavirus 2020 episode:a review.”Environ Dev Susta

126、in(2021).https:/doi.org/10.1007/s10668-021-01240-32 McMahon,Jeff.“Coronavirus Lockdown Likely Saved 77,000 Lives In China Just By Reducing Pollution.”Forbes.March 16,2020.https:/ and Planet Positive.”IKEA Sustainability Strategy.June 2018.Updated August 2020.https:/gbl-sc9u2-prd- Connect Uses IBM Bl

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