Sustainability in retail is no longer a niche concern; it’s a fundamental business strategy. As consumers demand greater transparency and environmental responsibility, retailers in buying, procurement, and sustainability roles must take proactive steps to assess and improve the sustainability of their product offerings.
A 2024 report from The Round Up found more than three-quarters (78%) of consumers feel sustainability is an important factor when shopping.
Scoring the sustainability of products on your shelves (whether its brick and mortar or ecommerce) provides tangible benefits that go beyond compliance and brand reputation. Here’s why it should be a top priority in 2025.
- Enhancing consumer trust and loyalty
Modern consumers are more informed and selective about their purchases. They seek brands that align with their values, including ethical sourcing, eco-friendly materials, and fair labor practices. By mapping and clearly labeling sustainable products, you empower customers to make informed choices, fostering trust and long-term brand loyalty.
According to a OnePoll survey, despite potentially having a lower income,10% of 24 to 35-year-olds said they would pay as much as 41-50% more for sustainable products, with 6% of this age bracket responding they’d pay 51-60% more.
- Meeting regulatory and compliance standards
With global regulations tightening, retailers must ensure they comply with evolving environmental and social governance (ESG) policies. In 2025, laws such as the EU Corporate Sustainability Due Diligence Directive and the extended producer responsibility (EPR) programs require retailers to monitor their supply chains more closely. Scoring sustainability metrics in advance helps businesses stay ahead of compliance and avoid penalties.
A remarkable 71% of retail leaders surveyed indicated that they were prioritizing sustainability, compared to 64% of the global average of leaders across all industries — the highest score across all industries.
- Strengthening supplier relationships and ethical sourcing
Sustainability mapping involves collaborating with suppliers to gather data on product origins, carbon footprints, and ethical labor practices. This process not only ensures responsible sourcing but also fosters stronger supplier partnerships. Suppliers that demonstrate sustainability commitments become valuable long-term partners, supporting your brand’s ethical positioning.
Around 53% of Retailer respondents in a CIPS survey stated that, since 2019, they have begun taking sustainability into account when choosing suppliers.
- Optimizing inventory and reducing waste
By identifying which products meet sustainability criteria, retailers can refine their inventory strategies. Understanding the lifecycle of products, from sourcing to disposal, helps in reducing overstock, minimizing waste, and improving circular economy initiatives such as recycling programs and product take-back schemes.
- Gaining competitive advantage
Sustainability is now a key differentiator in the retail landscape. Businesses that proactively communicate their sustainability initiatives through clear product mapping gain a market advantage. Retailers who fail to do so risk falling behind competitors who are more transparent and proactive in their sustainability efforts.
A Deloitte survey of 750 employees from US-based retail companies revealed that 72% of employees who work for retail organizations with “leading” sustainability programs say they rarely think about looking for another job, and 79% plan to stay in their roles for the next couple of years. In comparison, just 40% of surveyed employees from retailers with “lagging” sustainability programs are as committed to their current positions.
- Increasing operational efficiency and cost savings
Sustainable practices often lead to more efficient supply chains. By mapping sustainability metrics, retailers can identify opportunities for cost savings through energy-efficient transportation, optimized packaging, and waste reduction. These improvements not only lower expenses but also enhance a brand’s overall sustainability profile.
- Building a resilient business for the future
Climate change and resource scarcity pose risks to supply chains. Companies that map and prioritize sustainable products are better positioned to adapt to future challenges, ensuring long-term business resilience. By investing in sustainable sourcing and operational practices today, retailers can safeguard against disruptions and maintain steady growth.
Getting started with sustainability scoring
To effectively map the sustainability of your product assortment:
- Conduct a sustainability audit of your current inventory.
- Engage with suppliers to collect and verify sustainability data.
- Implement digital tools for tracking and reporting ESG metrics.
- Clearly communicate sustainability credentials on product labels and online listings.
- Regularly review and update sustainability goals in line with industry advancements.
Conclusion
In 2025, sustainability is not just a corporate responsibility; it’s a business imperative. Scoring the sustainability of your products helps you stay compliant, attract eco-conscious consumers, optimize operations, and future-proof their business. By taking a proactive approach, you position your company as a leader in the transition to a more sustainable and ethical retail industry.
