The Swiss retail industry faces many challenges when it comes to sustainability, and it bears a significant responsibility for the availability of products. At the same time, consumer behaviour pursues diametrically opposite aims; users want products to be as cheap as possible on the one hand, but as sustainable and environmentally-friendly as possible on the other.
The following five steps show how these challenges might be addressed.
1. A clear positioning of the company’s own purchasing strategy
The first step is for a company to decide what position it wants to take on the issue of sustainability. This might range from pragmatic adherence to the law to a decision by the company to play a pioneering role in product procurement and recycling. Companies also need to examine their competition, their customer base and their procurement and sales regions.
2. Analysis of the existing laws, regulations and requirements
Legal requirements differ, depending on the sector and country involved in each specific case. In Switzerland, the importing of raw materials and child labour is governed by suitable laws and regulations. Requirements are now becoming increasingly explicit for transparency with regard to greenhouse gas emissions within the supply chain. Once a company clearly understands its legal position, it can go on to decide how it is going to deal with the relevant regulations.
3. Provision of sustainability data
The next step is to get information from the supplier; the effort involved in providing this information depends on the extent of the supply chain. Business information agencies such as CRIF offer ESG evaluations and estimated CO2 emissions for the companies concerned. Sustainability certificates are also helpful. It is advisable to use suppliers who are licenced by the major international organisations and who can demonstrate certification mechanisms that are particularly suitable for SMEs, e.g. CRIF’s Synesgy sustainability platform.
4. Data analysis and integration into the reporting process
If the necessary sustainability information is available, it will (for example) be possible to make accurate statements about how well the suppliers perform in their ecological, social and governance assessments, whether they adhere to any child labour directives and which greenhouse gases they produce. This information can then be used for communications with users.
5. A continuous improvement process
A company’s obligations will not be satisfied by simply getting sustainability information on a one-off basis. The global target of reducing CO2 emissions to net zero by 2050, coupled with ever-stricter legal requirements, mean that companies need to set up an annual data procurement process while simultaneously keeping an eye on the ever-changing statutory requirements.
These five steps prepare retail companies well to meet the challenges involved in providing sustainability data and CRIF is very happy to stand supportively by your side.
