“Fundamental shift in the whole retail business model needed to achieve net zero,” according to BRC discussion at Retail Week LIVE
Retailer leaders across the UK joined the British Retail Consortium (BRC) at Retail Week LIVE yesterday and discussed progress being made on achieving net zero.
Hosted by Helen Dickinson, CEO at the BRC, the invite-only discussion which took place under Chatham House Rules, shared progress being made across the sector. This included an update on the BRC’s Climate Action Roadmap, as well as discussions centred on how the government can support the industry’s efforts to get to net zero and drive long-term sustainable change against a backdrop of other immediate pressing issues.
The event was attended by retail leaders across the country including QVC, B&Q, Greggs, Sainsbury’s, Pret a Manger, Waitrose, The White Company and a number of other retailers.
Dickinson kicked off the event by sharing that the retail industry is responsible for 200m tonnes of carbon per year: “No doubt a giant challenge to tackle, but it is also a great opportunity for the sector to make a huge contribution to climate conditions. We need a fundamental shift in the whole retail business model and a requirement to go beyond government ambitions and achieve net zero across stores but also bring it into operations.” One retailer agreed and added: “Our responsibilities extend beyond a product’s point of sale, and into how – and whether – they are used and recycled.”
Need for a ‘whole company’ approach
There was clear agreement in the room about the volume of goodwill across the industry to make real progress and many retailers had publicly committed to meeting sustainability targets, driving change across their organisations. However, there was collective agreement in the need to expand involvement beyond those with sustainability in their job descriptions to make programmes truly successful and effective. One attendee talked about how there’s a requirement across their business for sustainability to be considered ‘business as usual’ and how they now have sustainability targets as part of their employee bonuses, driving change at every level. Others reported how they’re working towards more of a cultural change through a constant drip feed of objectives and information.
The discussion was tempered with the recognition that getting efforts underway is no small task, but acknowledged that knowing what to measure was considered the best starting point. Many were working with partners to measure footprints and outline strategies, but as Dickinson pointed out: “80-90% of emissions are in the supply chain so strategies also need to be inclusive of that.” Attendees acknowledged that many suppliers were based in China and were struggling to secure engagement amongst them but were in no doubt that they needed to bring them on the sustainability journey.
Barriers to uptake
Whilst many initiatives are off the starting blocks, attendees agreed that the ability to be more sustainable doesn’t come without a risk or cost and any efforts need to be thought through carefully. No-one wanted projects to be considered as ‘greenwashing’ and were making inroads to simplify the language used, to be more jargon-free and bringing everyone up to a certain level to ensure inclusivity and aid understanding.
The customer was also called out as a barrier to entry. Whilst retailers acknowledged that the mindset of “We just have to wait for the customer to make the right (more sustainable) decision” is hugely unrealistic, there was collective responsibility across the room about how historically low prices had created an environment where things are cheaper than they should be. As one attendee said: “We must get to a point where we remove the bad choice for the customer. It’s going to be a painful process, but it will be worth it.”
Engaging internally
Finding passionate advocates within the business to sell the sustainability journey internally was considered critical by all attendees as well as educating the board – which still needs to spearhead long term change.
The question of what good sustainability leadership looks like was put to the attendees and most, if not all, agreed that, “using the right language and being a great communicator” was key. Being courageous enough to admit that you don’t know all the answers was also heralded, as many attempt to navigate new and perhaps untested waters.
Overwhelmingly though, there was a call to celebrate successes and to share best practices – something many feared others weren’t doing for fear of losing competitive edge. Others encouraged a more open dialogue about the failures so that the retail – and other – industries can learn from it.
Dickinson concluded: “The retail industry must develop a more collaborative approach on sustainability practices. I’m encouraged by the small wins shared, but it’s evident that there’s a lot of work ahead. Retailers need to get the wider business involved and allow breathing space for employees across the business to stick their necks out and contribute.”
The BRC session on sustainability took place on day 1 of Retail Week LIVE at the InterContinental London – the O2. The event welcomed around 1,000 delegates from nearly 200 retailers, plus nearly 150 speakers from the industry’s biggest household names, who gathered to debate how retail can overcome a backdrop of inflation, rising costs and the cost-of-living crisis.
During the conference keynote speaker Ken Murphy, CEO at Tesco spoke about the support needed from government with regards to the Apprenticeship Levy and business rates, while Boots UK managing director Seb James declared, “Up yours Sephora,” when talking about the competitor’s recent opening. Gregg’s Roisin Currie also shared insights into the brand’s growth strategy and outlined how the business is trying to help the consumer make their money go as far as possible.
