Supply chain News and trends

German wholesale giant Metro aims to reduce water consumption across its operations by 10% per square metre of net operating space by 2030 compared to the base year 2021.

The move will contribute to the global community's Sustainable Development Goal (SDG) 12, which seeks to produce and consume sustainably and reduce the company's operating costs.

The new target replaces the previous goal of a 5% reduction in water consumption by 2025 compared to fiscal year 2016/17, the wholesaler noted.

The company exceeded this target by cutting water consumption by 19% in the current fiscal year.

Ivonne Bollow, SVP of public policy and corporate responsibility at Metro AG, said, "Water scarcity is one of the biggest global challenges today. Global water demand is continuously increasing, while available water resources are steadily declining due to climate change – with drastic consequences for the world's food supply and nutrition. [...]

"As a globally active food wholesaler, water and climate protection are therefore a high priority for Metro and we have set ourselves ambitious goals that we will consistently pursue and, if necessary, formulate even more ambitiously."

Via EcoVadis

With consumers prioritizing environmental sustainability, Amazon and Target unveiled stores that aim to use less energy than they produce, the retailers announced last week. Target's first net-zero energy store is located in Vista, California, and the new Amazon Fresh store, which is pursuing net-zero carbon certification, is located in Seattle.

 

The new Amazon Fresh Seattle location features a CO2-based refrigeration system, has steel byproducts to reduce embodied carbon and fully sources its electricity from the company's renewable energy projects. Target's store has solar carports, CO2 refrigeration and LED lighting.  Drawing from its experience, Target said it plans to add CO2 refrigeration to all of its stores by 2040. Amazon said that some of the upgrades will be used at all of its Amazon Fresh grocery stores going forward, such as the lower-carbon concrete flooring. 
Via EcoVadis

Consumers are willing to spend more for sustainable brands, but that a significant gap exists between retailers and customers as to what consumers want and what’s actually being delivered, according to new data released by First Insight and the Baker Retailing Center at the Wharton School of the University of Pennsylvania.

“This report clearly demonstrates that retailers are leaving money on the table. Brands and retailers must listen to the voice of the customer on issues as critical as sustainability. Consumers want more than performative measures from retailers and brands when it comes to ESG priorities, which will only become more important as Gen Z grows in influence,” says Greg Petro, CEO of First Insight.

Via EcoVadis

The country’s most sustainably minded retailers are placing more of an emphasis on sourcing — by both boosting locally and sustainably produced food and by requiring stricter environmental standards from their suppliers. This ranges from sourcing more sustainable seafood, including canned tuna, to ensuring that beef is being produced with no deforestation. Palm oil, coffee, eggs, soy and pulp are other commodities that are being more closely watched by grocers to ensure sustainable production.

In fact, the 2022 Sustainability Barometer released by London-based Mintel finds that from a global consumer perspective, concerns about water and food shortages are now being prioritized ahead of previous preoccupations with waste and plastic. Therefore, it makes sense for grocers to include messaging about their efforts in more sustainable sourcing and in combating climate change.

Several retailers, including Batavia, Ill.-based Aldi US, are committing that all of the fresh, frozen and farmed seafood they purchase will be third-party certified as sustainable or from fishery improvement projects by the end of 2025. Meanwhile, expect to see more of these grocers ramp up tracing efforts so that customers will also recognize their efforts in sustainability.

Via EcoVadis

Russian retailer Fix Price has announced the rollout of eco-friendly branded bags across its estate, which are made form 40% recycled polyethylene.

Over the coming months, all large shopping bags, of which between four million and eight million are sold per month, will be replaced with new eco-friendlier alternatives.

The bags contain no bio-additives or PVC and can be recycled.

Via EcoVadis