Summary

• Sustainability is a current trend within the CPG industry and virtually all the biggest brands are running visible and transparent sustainability initiatives, and seem to be aware of the negative consequences of not doing so.
• Significant information exists in the public domain on the sustainability practices of CPG companies. Sources for the research provided are in the form of online articles, blogs, case studies and any available research into these fields.

General CPG Trends & Activity in Sustainability

• There has been a huge drive towards sustainable packaging. Several of the top CPG companies globally have pledged to use 100% recyclable and reusable packaging over the next 5-10 years. Nestle has committed to 100% recyclable or reusable packaging by 2025, and will have reduced the use of virgin plastics by one third by the same time. PepsiCo strives to design 100% of packaging to be recyclable, compostable or biodegradable by 2025, and reduce virgin plastic use across its beverage portfolio by 35%. Many other brands have similar initiatives.
• Sustainability practices are constantly evolving, and despite the fact that CPG brands are moving towards recyclable packaging, recycling systems are not currently able to process all the available waste materials. In response to this, one new trend has seen CPG companies move to compostable packaging.

Specific Company Information

• Having announced in early 2020 that they had already met their environmental sustainability goals for 2020, P&G announced a raft of new broader-reaching goals for 2030. The new goals, entitled "Ambition 2030", form the basis of the company's aims to enable and inspire a more positive impact on the environment and society, while maintaining a pledge to create value for the company and consumers.
• Ambitions goals are divided into four key initiatives. The first once concerns their brands. P&G’s 20 leadership brands (some of which include Always, Ariel, Dawn, Fairy, Febreze, Head & Shoulders, Pantene, Pampers, and Tide) will enable and inspire responsible consumption through 100% recyclable or reusable packaging, overseeing the launch of more sustainable innovations, and building trust through transparency and sharing of safety science.
• The supply chain aspect will see P&G manufacturing sites cut greenhouse gas emissions by 50%, while purchasing enough renewable electricity to power 100% of their plants. In addition to this, the company will also source at least 5 billion liters of water from circular sources.
• The next initiative focuses on the society aspect, will see the company continue to create and develop transformative partnerships that enable efficient and environmentally friendly working practices, including those that stem the flow of plastic into the world’s ocean, protect and enhance forests, expand recycling solutions for absorbent hygiene products, and protect water in priority basins around the world.
• The last initiative concerns employees. P&G will engage, equip and reward employees for building sustainability thinking and practices into their everyday work, rewarding progress and integrating recognition into performance assessments.

Other CPG Sustainability Information

• Unilever — In 2020 Unilever announced the final year of its 10 year Unilever Sustainable Living Plan (USLP). While admitting not all the objectives have been met, the company described the USLP as a 'game changer', and confirmed that implementing the USLP has helped the company avoid over €1bn in costs through initiatives such as improvements in water and energy efficiency in factories, and embracing circular packaging strategies through partnerships with platforms such as Algramo and Loop. The company also revealed the USLP has been a key factor in attracting the best talent, as well as forging strong partnerships with NGOs, government organizations and other types of businesses.
• Rothys — Fashion brand Rothys have a more holistic approach to sustainability, with the sustainable shoe company’s brand strategy helping to build customer relationships that drive growth. Innovative products and ideas such as shoes made from re-purposed plastic water bottles to benefit and improve the environment help satisfy a hunger from consumers for sustainable everyday fashion.