Retailers today are keeping consumer preferences top of mind and know that they must be agile and move early to remain ahead of competitors. With more than three in four shoppers wanting brands to provide more information about their sustainability efforts, transparent and ethical practices are increasingly important to win customer loyalty.
ESG (Environmental, Social, and Governance) strategies are becoming a sign of retail trustworthiness, and consumers are looking for greater sustainability, ethical sourcing, and community values when they shop. Focus and investment on a few key areas and the necessary tech stack can help retailers better integrate ESG seamlessly into their operations for long-term success.
Investment in a unified system
Onboarding new suppliers is often complex, and retailers must ensure all new product additions meet established ESG guidelines. From sustainable sourcing of materials to fair trade, retailers need to be able to quickly verify supplier claims and documentation while providing transparency across the supply chain.
While manual processes for supplier onboarding and verification can be time-consuming and prone to errors, automating these tasks can significantly improve efficiency and accuracy. Integrating supplier questionnaires, certifications, and verification processes into a unified system reduces paperwork and speeds up new supplier integration.
This digital source of truth centralises data, standardising the onboarding process for all suppliers and eliminating the need for duplicate data entry. New suppliers onboarded this way can access essential information within a streamlined digital workflow that tracks the entire process to ensure every supplier’s consistent and thorough verification.
By investing in a unified ESG system, retailers gain a significant edge. Faster onboarding translates to quicker time-to-market for new products, while robust verification processes mitigate the risk of non-compliance and reputational damage, ultimately enabling more informed decision-making before onboarding a new supplier.
Prioritising transparency and accountability
With multiple voluntary reporting standards in Australia, retailers — particularly smaller ones —face complexity when identifying best practices for ESG reporting. Also, for publicly listed retail companies, sharing more transparent and consistent reports on sustainability efforts provides more visibility for customers and investors on the company’s ESG practices.
Besides streamlining supplier onboarding and verification, a unified ESG platform can support the automatic collection of this data across a retailer’s entire operations, enabling real-time data aggregation that ensures reported metrics are accurate and up-to-date.
This data becomes the foundation for clear communication with stakeholders as retailers can utilise it to generate market-ready reports, presentations, and marketing materials that accurately and effectively share ESG progress and commitments. It can help streamline processes, improve transparency, and demonstrate an enduring commitment to responsible business practices.
Winning loyalty in a crowded market
In a highly competitive Australian market, it is common to see retailers investing in innovative store fit-outs and digitisation to enhance the customer experience and drive sales. However, with enormous choices available to consumers, more than these efforts are needed to secure a lasting competitive edge.
As retailers drastically grow their range they need safeguards in equal measure to ensure they are meeting ESG obligations. One report finds that 46 per cent of consumers are buying more sustainable products to reduce their environmental impact. If retailers can capture proof of progress — greener packaging, supply chain traceability and transparency, product stewardship and more — they are better set up to capture consumer share of wallet.
If executed well, this is a powerful differentiator. Important information on ESG performance must be transparent, accessible, and verifiable so retailers can build trust and loyalty with customers.
In this regard, deploying a unified platform for ESG, like monday.com, is a strategic investment for modern retailers. It empowers efficient onboarding, fosters collaboration across the supply chain and provides valuable data for informed decision-making. By embracing this approach, retailers can navigate the complexities of an expanding product range while upholding their commitment to a more sustainable and ethical future.
Gavin Watson is senior industry lead for APJ at monday.com.