In today's rapidly changing world, sustainability has become a top priority for businesses across industries. The consumer goods industry, in particular, has a unique role to play in driving positive change and mitigating the effects of climate change. As companies in this sector strive to align their strategies with the goals of the Paris Agreement, science-based targets (SBTis) have emerged as a powerful tool to accelerate the transition to a low-carbon economy. SBTis not only benefit the planet but also offer a range of advantages for businesses. Let's explore six key benefits that companies in the consumer goods industry can expect to experience by setting science-based targets.
1. Enhancing Brand Reputation
In a world where consumers are increasingly conscious of the environmental impact of their choices, a brand's reputation for sustainability is crucial. Committing to science-based targets can significantly strengthen a company's brand reputation. According to a survey of corporate executives, 79% of respondents cited a strengthened brand reputation as one of the most significant business benefits of setting science-based targets. By aligning their strategies with SBTis, companies demonstrate their commitment to corporate responsibility, meeting the expectations of environmentally conscious consumers. For example, multinational technology company Dell sees setting science-based targets as a way to deliver the level of corporate responsibility their customers expect from them. Electricity operator EDP believes that science-based targets showcase robustness, confidence, and credibility.
2. Boosting Investor Confidence
Sustainability has become a crucial factor for investors when evaluating businesses. Investors are increasingly interested in companies' environmental policies as they seek to secure their investments for the future. The survey found that 52% of executives reported that their commitment to science-based targets had boosted investor confidence in their business. For multinational retailer Tesco, setting a science-based target allowed them to demonstrate their seriousness in tackling climate change to both investors and other stakeholders. This commitment positions them as a forward-thinking, sustainably-minded company, appealing to a new generation of ethical investors.
3. Building Resilience Against Regulation
As countries worldwide work to implement the Paris Agreement and strengthen their commitments, businesses can anticipate increased regulation to curb emissions-intensive activities. Setting science-based targets offers companies increased resilience against upcoming regulations. Over a third (35%) of executives surveyed reported that science-based targets provided them with increased resilience against future regulations. By aligning their business models with the goals of the Paris Agreement, companies can future-proof their operations and demonstrate their commitment to sustainable practices.
4. Driving Innovation
The transition to a low-carbon economy presents numerous opportunities for innovation. Companies that align their strategies with science-based targets are at the forefront of this step-change and are driving innovation within their organizations. Almost two-thirds (63%) of respondents reported that setting science-based targets had already sparked innovation within their companies. More than 50% of executives expected at least half of their products and services to be low-carbon by 2030. For instance, multinational technology company Sony leveraged their science-based target to drive the development of new products, including a plastic called SORPLAS, made up of 99% recycled material. This innovation helps reduce CO2 emissions by nearly 80% during the manufacturing process.
5. Unlocking Bottom Line Savings
Contrary to the perception that sustainability comes at a high cost, companies setting science-based targets are already experiencing bottom-line savings. Almost a third (29%) of executives reported that their ambitious commitment to science-based targets had resulted in cost savings. By setting such targets, companies streamline their operations, increasing efficiency and resilience in a future where resources, particularly those derived from fossil fuels, are becoming scarcer and more expensive. The rising prices of raw materials can make a significant difference between profit and loss. Companies committed to science-based targets are positioning themselves on the right side of this equation, reaping financial benefits while driving sustainability.
6. Gaining a Competitive Edge
Companies that commit to the Science Based Targets initiative gain a competitive advantage in the market. With increased innovation, strengthened investor confidence, reduced regulatory uncertainty, and improved profitability, these companies set themselves apart from their competitors. By embracing science-based targets, they demonstrate their leadership in the low-carbon transition. Being ahead of the curve positions them as industry trailblazers, attracting both environmentally conscious consumers and investors.
The consumer goods industry has a unique opportunity to drive positive change and make a significant impact on global sustainability efforts. By setting science-based targets, companies in this sector can enhance their brand reputation, boost investor confidence, build resilience against regulation, drive innovation, unlock bottom-line savings, and gain a competitive edge. The benefits of science-based targets are undeniable, both for the planet and for businesses.
To fully harness the potential of science-based targets, sustainability managers in the consumer goods industry need a comprehensive and integrated platform that supports their workflows. The platform should provide built-in climate & social data, seamlessly integrate with future business plans, and enable an optimal transition for people, the planet, and profit. Unibloom aims to fulfill those needs and revolutionize the way sustainability teams operate in the consumer goods industry.
Our platform enables sustainability teams to streamline their processes, reducing the time required for sustainability projects by 90%. By automating data inputs, this can empower users to generate multiple scenarios in a matter of seconds, allowing for quicker and more informed decision-making. The platform's data-driven approach ensures that sustainability teams can prioritize actions that have a tangible impact on the company's daily operations.
We understand that sustainability teams often face challenges in demonstrating the value they bring to the business. Our platform bridges this gap by providing real-time data on the financial impact of sustainability projects. This data-driven approach moves sustainability teams from being perceived as a cost to becoming value drivers across the entire organization. By aligning their strategies with science-based targets and leveraging our platform, companies can transform into software-driven, data-oriented organizations, optimizing their impact on both the environment and their bottom line.
In conclusion, science-based targets have the power to transform the consumer goods industry and unlock a sustainable future. By embracing these targets, companies can enhance their brand reputation, gain investor confidence, build resilience against regulation, drive innovation, unlock bottom-line savings, and gain a competitive edge. Our platform empowers sustainability teams to navigate this transition effectively, providing them with the tools and insights needed to achieve their science-based targets and create a positive impact on the world.
Find out more about how our platform can help your company achieve its science-based targets and pave the way for a sustainable future.
Contact us today on anna.sandgren@unibloom.world and join the movement towards a low-carbon and social just economy. Together, we can make a difference and drive long-term business performance.
Unibloom believes that sustainability teams and their experts across the organization can help influence business decisions benefiting people, planet & profit, equally across the organization, with better data-driven and forward looking operational insights.
Background:
The Problem: Sustainability managers in the consumer goods industry face numerous challenges when it comes to hitting science-based targets. The current reporting and data collection methods are often time-consuming and lack actionable insights. Many companies struggle to move beyond generic reporting and establish sustainable practices that have a measurable impact on their day-to-day operations.
Solution: Our platform offers a comprehensive solution for sustainability teams in the consumer goods industry. By automating data inputs and providing advanced analytics, our software enables companies to streamline their sustainability projects and make data-driven decisions throughout the organization. Our platform goes beyond reporting and PR, empowering companies to achieve operational excellence and prioritize actions that have a tangible impact on their business.
Why Now: The market is shifting, and sustainability managers need a platform that can support their evolving needs. Our product fills this gap by providing a data-driven solution that aligns with real-life projects and delivers measurable financial impact. With the increasing focus on sustainability and the rising demand for actionable insights, the time is ripe for companies to embrace science-based targets and leverage our platform to drive positive change
Sources:
https://sciencebasedtargets.org/companies-taking-action/case-studies/tesco
https://sciencebasedtargets.org/companies-taking-action/case-studies/edp
https://sciencebasedtargets.org/companies-taking-action/case-studies/sony
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