Sustainability Part I: Retail & Consumers

How important is the topic of sustainability in the shopping world?

According to the Global E-Waste Monitor, a record-shattering 53.6 mt (metric tons) of electronic waste was reported as generated globally in 2019. Even worse, only 17% of it was recycled correctly, meaning 83% were discarded through improper means – mostly in landfills, which evidently leak harmful toxins into the earth.

Ensuring tech companies operate sustainably means considering the way materials are sourced and manufactured into products as well as how these products are then packaged and dealt with when they’re no longer needed. Ensure consumers shop sustainably means choosing long-lasting products that can be repaired or, radically speaking, deciding not to buy any tech at all.

The consumer side

Sustainability is a key consideration for consumers in 2021, with 32% committed to adopting a more sustainable lifestyle. It’s equally important to note that 28% of consumers have stopped buying certain products due to ethical or environmental concerns. Gen Z, especially, is adamant in this endeavour.

50% reduced how much they buy, and 45% stopped purchasing brands because of the aforementioned concerns. As wealth transfers to younger generations, considerations of responsibility will need to be involved in the retail narrative and should be transparent throughout the value chain.

Lack of interest is the main barrier in adopting a sustainable lifestyle, followed by the perceived expense and access issues to relevant information. Consumer want to so their part, but many expect brands to take the lead, with 64% demanding to reduce packaging, 50% asking for information on how to recycle and 46% wanting to be made aware of sourcing.

Many consumers agree that frequent, essential purchases like groceries, household and personal care items as well as clothing are areas where they consider sustainability factors the most. There is a 50/50 split between those willing and refusing to pay more for products of environmentally conscious brands.

5 sustainability pillars that consumers value most:

The retail side

To get an idea of how consumers’ wishes are interpreted in actuality, we take a look at some established names in the world of large-scale retail!

MediaMarkt and Saturn

Climate protection: Responsibility is taken for emissions that arise directly or indirectly from their business activities along the value chain. They are continuously developing new measures to optimize their operating processes, thus reducing their carbon footprint. In doing so, they are guided by the goals formulated in the Paris Climate Agreement to limit global warming.

Environmentally friendly services: They support innovative product solutions and service concepts that enable sustainable consumption. In doing so, they’re guided by the vision of a circular economy: Some of the services they offer already make it easier to use products for longer or to recycle them properly at the end of their life cycle.

Diversity and inclusion: They want employees who bring different perspectives and solutions to the table: The more diverse the workforce, the more comprehensive the skills and knowledge in the company. At MediaMarktSaturn, they create the conditions to ensure that every employee – regardless of ethnic origin, sexual identity, age, disability, religion or gender – has the same opportunities.

Social engagement: They take responsibility, even beyond their core business. They are committed nationally at the locations of their national companies, locally at the locations of their stores and at their corporate headquarters in Ingolstadt (Germany). They focus on socially relevant topics where they can contribute to enriching people’s lives with their products, approaches and expertise.

Networks and initiatives: MediaMarktSaturn belongs to selected networks and initiatives via its parent company CECONOMY.

Responsibility for suppliers: As Europe’s largest consumer electronics retailer, they aim to offer their customers the best products and services while being a responsible partner. Their product range includes branded products from world-renowned manufacturers as well as products from their own label company. Behind all this there are long and complex supply chains with widely ramified global production, procurement and delivery networks.

Euronics

Initiatives: They advise customers on energy-saving techniques and offer the latest, ‘greenest’ technologies to reduce electricity and water consumption. They also work with their suppliers to minimise packaging.

FNAC

Customer awareness: They integrate environmental stakes in their core  business by acting on its logistics flow, its energy consumption, its waste and to ensure an environmentally-friendly disposal of distributed products.

Second life of products: Conscious of the negative impact on the environment generated by technical products and household appliances having a shorter and shorter life, the Group works on promoting the second life of products and the environmentally-friendly disposal of products. As such, the company is part of a circular economy approach.

Climate: In order to tackle the climate issues related to CO2 emissions, the Group leads an energy consumption reduction policy as well as an optimisation of its transport operations. They represent the two most important emissions sources of the Group. The Group has also invested in equipment that is less energy-consumptive and has provided all of their stores with a guide to best practices in order to reduce their stores’ negative impact. The Group conducts and published on a regular basis a carbon footprint report in order to control its emissions.

In light of the ongoing global demand to significantly advance climate efforts, retailers have made a lot of progress in adopting sustainable business practices and continuing to install additional measures. Check back next month for the brand side of things.